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City of San Leandro <br />Meeting Date: October 5, 2015 <br />Staff Report <br />Agenda Section:File Number:15-562 CONSENT CALENDAR <br />Agenda Number:8.M. <br />TO:City Council <br />FROM:Chris Zapata <br />City Manager <br />BY:Cynthia Battenberg <br />Community Development Director <br />FINANCE REVIEW:David Baum <br />Finance Director <br />TITLE:Staff Report for the Assignment and Assumption of the Loan Agreement, <br />Deed of Trust and Regulatory Agreement for the Real Property at <br />15370-15375 Tropic Court in the City of San Leandro <br />SUMMARY AND RECOMMENDATIONS <br />Las Palmas Apartments, which is owned and operated by the nonprofit housing developer <br />Eden Housing, Inc. (Eden), received a $50,000 loan from City of San Leandro <br />Redevelopment Agency Housing Set-Aside Fund in 2011. Staff recently discovered that the <br />$50,000 loan was inadvertently left off the Housing Asset Inventory Report (HAT), which the <br />California Department of Finance (DOF) required and approved in 2012 soon after the <br />dissolution of redevelopment agencies state-wide. <br />Staff recommends that the City Council approve a resolution assigning the $50,000 loan from <br />the Successor Agency of the Redevelopment Agency of the City of San Leandro to the <br />Housing Successor. This assignment enables the City to assume the duties and rights to <br />modify the loan and related documents and qualifies Eden for State/federal low income <br />housing tax credits/tax-exempt bonds for Las Palmas Apartments. <br />BACKGROUND AND ANALYSIS <br />The 91-unit Las Palmas Apartments at 15370 and 15375 Tropic Court received federal Home <br />Investment Partnership Program (HOME) loan funds from the City of San Leandro in 1999 <br />and executed a regulatory agreement, which is still in effect, that requires Eden to maintain <br />the majority of units as long-term affordable rental housing. Around 1999, the property also <br />received State/federal low income housing tax credits, which also restricted the majority of <br />units as affordable; those tax credits have expired. <br />Eden re-applied for low income housing tax credits and tax-exempt bonds from the State Tax <br />Credit Allocation Committee (TCAC) and California Debt Limit Allocation Committee (CDLAC) <br />in August 2015 to make needed renovations to the aging Las Palmas. Eden Housing is not <br />Page 1 City of San Leandro Printed on 9/29/2015