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TH CITY OF OV s e CITY COUNCIL AGENDA REPORT pL£ASANTONo December 15, 2009 Assistant City Manager TITLE: APPROVAL OF THE ASSIGNMENT AND ASSUMPTION OF THE LIMITED PARTNER'S INTEREST, AMENDMENT TO THE RIDGE VIEW COMMONS ASSOCIATES PARTNERSHIP AGREEMENT, AND RELATED $225,000 LOAN TO EDEN HOUSING INCORPORATED SUMMARY The report recommends approval to transfer the Limited Partner involved with the ownership of Ridge View Commons from Chevron U.S.A., Inc., to Eden Housing Inc. The action will not impact project operations, rents or amend the project's major ownership group which includes the City of Pleasanton and Eden Housing, Inc. This action is considered routine for affordable housing developments funded with Lower Income Housing Tax Credits and was anticipated as part of the Ridge View Commons development which occurred in 1989. The City Council authorized staff to move forward with the transaction in March 2004. RECOMMENDATION Approve the Assignment and Assumption of Limited Partner Interest and Amendment to the Partnership Agreement of Ridge View Commons Associates (Attachment 1) and authorize the City Manager to execute it, and any other related documents, that may be required for this transaction, including a loan agreement for $225,000 that will be prepared by the City staff and Eden Housing as outlined in this report. FINANCIAL STATEMENT The City will utilize $225,000 from a discrete portion of the City's Lower Income Housing Fund (LIHF) to complete the recommended loan transaction. Between 1989 and 1996, the City received financial payments from the partnership owning Ridge View Commons and these funds will be used for this loan transaction. As a result, it will not involve payments made to the LIHF from private developers to support affordable housing projects or General Funds.