MEETING DATE:
JUNE 26, 2018
SUBJECT:
Title
RESOLUTION NO. SHA 2018-033 - APPROVAL OF WITHDRAWAL OF TAX CREDIT INVESTOR FROM THE TERRA COTTA AFFORDABLE HOUSING DEVELOPMENT
Body
Recommendation
Recommendation
ADOPT a resolution approving the withdrawal of the tax credit investor from the development and authorizing the City Manager to finalize and execute the regulatory agreement modifications
Body
Board or Commission Action
Resolution No. RDA 96-268 of April 23, 1996 authorizing the project's funding component
Resolution No. RDA 97-275 of January 28, 1997 authorizing bond financing for two affordable housing projects, including Terra Cotta
Resolution No. RDA 97-277 of April 8, 1997 authorizing financing for Terra Cotta
Relevant Council Strategic Theme
Planning for the Future
Relevant Department Goal
Facilitate Affordable Housing Production
Executive Summary
Terra Cotta Apartments, located at 523 Rush Dr., is a new-construction affordable development built and operated by Bridge Housing. It is a 168-unit family apartment complex; 166 apartments have 55-year deed restrictions. Direct project funding and bond funding was authorized by the Redevelopment Agency (RDA) in 1997. Terra Cotta was opened in 2001. The developer wishes to begin the year 15 event process by allowing the tax credit investor to withdraw from the project in an orderly and controlled manner. City approval is required for this to occur.
Discussion
This is not a re-syndication. Rather, this is only the initial step in the year 15 event process. The deed restrictions and initial funding package will remain unchanged at this time. The Developer does not intend to rehabilitate the project immediately upon tax credit investor withdrawal. However, Bridge Housing has indicated its intent to re-syndicate and rehabilitate within one to two years following the exit of the tax credit investor.
At this time, it is also appropriate for the City to evaluate the project to ensure...
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