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File Number: 11 -439 Community Development Department (HCD); $300,000 loan from California Housing Finance Agency (CaIHFA); and $100,000 loan from tax credit investor Alliant Capital. The provision of the loan is also contingent upon the City receiving the U.S. Department of Housing and Urban Development (HUD) approval for its Amendment to the FY 2011 -2012 Consolidated Annual Action Plan. In accordance with the City's HUD - approved Citizen Participation Plan (CPP), which governs the process of amending the City's Five -Year Consolidated Plan and subsequent Annual Action Plans, the City Council on December 19, 2011 approved amending its FY 2011 -2012 Action Plan in order to allocate $35,000 in CDBG funds to the Surf Apartments acquisition and rehabilitation project. Analysis Preserving Surf Apartments is a high priority for the City under its Housing Element Update and Five -Year HUD Consolidated Plan. Thirty -five (35) of the units at Surf Apartments serve affordable households between 35% and 60% AMI, and the other eleven (11) units are market -rate units. Currently, the City has a regulatory agreement with Citizens Housing Corporation (Citizens Housing), the current owner of Surf Apartments, which imposes a 55 -year affordability restriction on the property until 2058. Ownership of Surf Apartments will be transferred to Eden Housing from Citizens Housing by the end of 2011 which will coincide with Citizens Housing's dissolution as an organization. Providing Eden Housing with the $100,000 loan for the Surf Apartments acquisition and rehabilitation project provides the following benefits to the City: Eden Housing, an experienced, well- regarded, and dedicated affordable housing developer and property manager, will both manage and own Surf Apartments. Eden Housing already manages and owns the neighboring Las Palmas Apartments, which is also an affordable housing rental property. Eden Housing also owns and manages the newly built Estabrook Place, an affordable senior housing rental complex located near downtown San Leandro. The current 55 -year term of the 2003 City regulatory agreement, which is scheduled to expire in 2058, will continue to restrict twenty -two (22) units: 2 units for very low- income households (35% AMI), 9 units for very-low income households (50% AMI), and 11 units for low- income households (60% AMI). An additional ten (10) units will be restricted for low- income households (60% AMI) for a 55 -year period until 2066 as a result of the $100,000 loan from the City. Current City Council Policies The FY 2010 -2014 Consolidated Plan and the FY 2011 -2012 Action Plan define current Council Policy. Applicable General Plan Policy The Housing Element of the General Plan contains several policies applicable to the Surf Apartments acquisition and rehabilitation project: Goal 3: New Housing Opportunities - Provide housing opportunities and improve economic access to housing for all segments of the community. City of San Leandro Page 2 Printed on 111012012