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City of San Leandro <br />Meeting Date: March 6, 2017 <br />Staff Report <br />Agenda Section:File Number:17-076 ACTION ITEMS <br />Agenda Number:10.B. <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 a Resolution Authorizing an Allocation Not to Exceed <br />$1,700,000 from the City of San Leandro’s Share of Alameda County <br />Measure A1 Housing Bond Funds to San Leandro Senior Associates, L.P., a <br />California Limited Partnership (an Affiliate of BRIDGE Housing Corporation) to <br />Provide Emergency Gap Financing for the Construction of San Leandro <br />Senior Apartments, an Affordable Senior Rental Housing Project (Marea Alta <br />Phase II) <br />SUMMARY AND RECOMMENDATIONS <br />Due to recent unexpected and negative impacts on the Low Income Housing Tax Credit <br />(LIHTC) market nationally and in California, affordable housing projects that were allocated <br />tax credits from the California Tax Credit Allocation Committee (TCAC) are now facing funding <br />shortfalls. BRIDGE Housing Corporation (BRIDGE) received an allocation of tax credits from <br />TCAC in November 2016 which was expected to provide full financing for Marea Alta Phase <br />II. However, the project now faces a funding gap of more than $2 million due to the changes <br />in the LIHTC market. BRIDGE is working with the Housing Authority of Alameda County to fill <br />the funding gap, but still needs up to $1.7 million in order to close escrow and proceed with <br />San Leandro Senior Apartments (Marea Alta Phase II) construction in Spring/Summer 2017. <br />Alameda County Housing and Community Development Department (County HCD) took the <br />initiative to address the tax credit shortfall issue by proposing that affected cities within the <br />County could use a portion of their shares of the Measure A1 Housing Bond funds to help <br />impacted developers fill unexpected funding gaps. County HCD plans to present this proposal <br />for consideration by the County Board of Supervisors on March 7 for projects, such as Marea <br />Alta Phase II, which have already received TCAC approval. <br />Staff recommends that the City Council adopt a resolution to 1) authorize the allocation of an <br />amount not to exceed $1.7 million from its share of Measure A1 Countywide Housing Bond <br />(Bond) funds to assist with the construction of Marea Alta Phase II; and 2) authorize the City <br />Manager, or his designee, to execute and deliver such other instruments and to take such <br />Page 1 City of San Leandro Printed on 2/28/2017 <br />246