Laserfiche WebLink
City of San Leandro <br />Meeting Date: September 8, 2015 <br />Staff Report <br />Agenda Section:File Number:15-478 PUBLIC HEARINGS <br />Agenda Number:4.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 Resolution Approving the Issuance of Revenue Bonds by the <br />California Municipal Finance Authority to Finance the Acquisition, <br />Rehabilitation, and Improvement of Las Palmas, a Multifamily Rental Housing <br />Development Owned by Eden Housing <br />SUMMARY AND RECOMMENDATIONS <br />Staff recommends that the City Council conduct a public hearing under the requirements of <br />the Tax and Equity Fiscal Responsibility Act (TEFRA), Section 147(f) of the Internal Revenue <br />Code of 1986, as amended, and adopt a resolution approving the California Municipal <br />Finance Authority (CMFA) to issue revenue bonds for the purpose of financing the acquisition, <br />rehabilitation and improvement of certain facilities for the benefit of LPSL, LP, a California <br />limited partnership. <br />BACKGROUND <br />LPSL, L.P., a California limited partnership (Borrower) has requested that CMFA issue and <br />sell revenue bonds in the maximum principal amount of $25,000,000 (the “Bonds”) for the <br />purpose of making a loan to the Borrower, to (1) finance the acquisition, rehabilitation, <br />improvement and equipping of a 91-unit affordable multifamily rental housing facility located at <br />15370 and 15375 Tropic Court, San Leandro, California; and (2) pay certain expenses <br />incurred in connection with the issuance of the Bonds. The facilities will be owned and <br />operated by LPSL, LP, a California limited partnership, or another entity created by Eden <br />Housing, Inc., or an affiliate thereof. <br />Las Palmas Apartments is owned and operated by the nonprofit developer Eden Housing and <br />represents a larger complex in the City’s affordable rental housing inventory. The City <br />approved a federal HOME loan to the property in 1999 that includes a regulatory agreement, <br />which is still in effect, which provides that Eden Housing must maintain the majority of units as <br />affordable housing. Around 1999, the property also received State/federal low income housing <br />tax credits, which also restricted the majority of units as affordable; those credits expired. This <br />Page 1 City of San Leandro Printed on 9/2/2015