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File Number: 15-721 <br />For feasibility and financing purposes, BRIDGE redesigned the 200-unit development into a <br />115-unit multifamily housing project (Marea Alta Phase I) and an 85-unit senior housing <br />project (Marea Alta Senior Phase II). The City’s $9.1 million loan was allocated entirely for the <br />115-unit Marea Alta Phase I development, which is currently under construction and projected <br />for full occupancy in Fall/Winter 2016. <br />BRIDGE is in the process of obtaining the necessary financing for the Phase II 85-unit senior <br />housing project, which has a total estimated development cost of $41 million. To date, <br />BRIDGE hasreceived approximately $10.5 million for Phase II funding: $1 million from the <br />Federal Home Loan Bank’s Affordable Housing Program, $7.5 million in the newly created <br />State Affordable Housing & Sustainable Communities Program (Cap & Trade Funds), $1.1 <br />million HCD Prop 1C funds, and $900,000 in Alameda County HOME and Boomerang <br />Housing Funds. BRIDGE will also be applying for State/federal low income housing tax <br />credits (LIHTC) in late June 2016 to fill the remaining financing gap. In order to be <br />competitive for the LIHTC funding cycle, BRIDGE must obtain local matching funds. The State <br />will announce LIHTC awardees in Fall 2016. If BRIDGE receives LIHTC approval, it can then <br />proceed to apply for its City building permits and begin construction of the Phase II senior <br />housing project upon permit approvals. <br />Analysis <br />The $1 million City loan consists of $256,761 in federal HOME funds and $743,239 in funds <br />held by the City in its capacity as Housing Successor to the Redevelopment Agency. The <br />$256,761 reflects the City’s current balance in federal HOME funds that have accumulated <br />since FY 2012. The HOME regulations stipulate a 24-month funds commitment requirement <br />which mandates that funds be “placed under binding commitment to affordable housing within <br />24 months” from when the funds are deposited in the jurisdiction’s HOME Investment Trust <br />Fund. This “uncommitted” balance of $256,761 HOME funds are “at risk” of recapture by <br />HUD if these funds are not committed by June 30, 2016. By providing BRIDGE with a <br />$1,000,000 loan, which includes a $256,761 HOME loan, the City is able to commit these <br />funds within HUD’s commitment deadline and avoid the de-obligation of HOME funds by <br />HUD. <br />The City will also commit $743,239 in Housing Successor funds in addition to the $256,761 <br />HOME funds for a $1,000,000 loan to BRIDGE. The source of these monies are the <br />repayments of former Redevelopment Agency Housing Set-Aside loans (such as the City’s <br />former down payment assistance and owner-occupied housing rehabilitation loan programs <br />as well as prior development loans to nonprofit developers). The re-allocation of these funds <br />must be designated specifically for affordable housing activities, such as Marea Alta Phase II. <br />Loan Terms <br />The term of the $1,000,000 loan will be three percent (3%) simple annual interest for fifty-five <br />(55) years. <br />Predevelopment Funds <br />Under the loan agreement, BRIDGE will be permitted to use up to $500,000 of its City loan for <br />pre-development costs (i.e., architecture/design, engineering, etc.). The total pre-development <br />costs are about $1.5 million. BRIDGE must first expend $250,000 of its own funds before it <br />Page 2 City of San Leandro Printed on 6/1/2016