HOUSING AUTHORITY BOARD OF DIRECTORS

majority of project funding for phase I project construction. (As the Board may recall, the project will be constructed in two phases; phase I would include construction of improvements on the current Kottinger Place and City owned sites with 131 units and the community room, and phase II would include construction on the Pleasanton Gardens site with 54 units.) If HUD does not approve the application, or if HUD's action is delayed, then the phase I tax credit application would be moved to summer 2015. Assuming approval of the Section 18 application and tax credits for phase I construction, MidPen is anticipating construction would start in March 2016. The phase II tax credit application will most likely occur in spring/summer 2017. It should be noted that approval of the Section 18 application is not automatic and HUD has significant discretion in approving or denying the application. As indicated, if approved, then the next major project hurdle will be being awarded tax credit financing for both phase I and phase II of the project. If the application is not approved, then MidPen and staff will discuss alternative approaches available through HUD to obtain approval for project disposition and demolition. Currently, HUD has other programs that would most likely significantly increase the potential for approval but these come at the price of a reduced amount of HUD financial support. Submitted by: Approved by: I • Steven Bocian Nelson Fialho Executive Director City Manager Attachments: 1. Resolution to Submit the Disposition and Demolition Application 2. Letter from Mayor Thorne supporting the proposed new development Page 4 of 4