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Gardens Phase 2. Additionally, MidPen is exploring other financing sources from the County and State that may also be available to finance the 54 units at 251 Kottinger Drive. Staff and MidPen are committed to making sure Phase 2 moves forward in a timely manner once the construction of Phase 1 is complete and the existing Pleasanton Gardens residents move to the new Kottinger Gardens Phase 1 apartments. MidPen selected Union Bank to purchase the LIHTC for a price of $1.22 per tax credit following a competitive request for proposals process from investors. This represents top of the market tax credit pricing and will provide $20.7MM in equity to the project. Union Bank was also selected to provide a construction and permanent loan. In order to apply for the 9% LIHTC, MidPen secured the following private and public debt sources: Source Amount Term Interest Rate Union Bank Permanent Loan $6,247,000 30 years 6.00% + .75% cushion prior to closing City of Pleasanton HOME $450,000 55 years 3.0% simple City of Pleasanton Lower- $13,750,000 55 years 3.0% simple Income Housing Fund County of Alameda HOME $629,489 55 years 3.0% simple County of Alameda Affordable $676,000 55 years 3.0% simple Housing Trust Fund General Partner Equity $100 Tax Credit Equity $20,741,087 In addition to these capital financing sources, the Alameda County Housing Authority approved an award of 50 Project-based Section 8 Vouchers. Obtaining these vouchers was critical for the project's feasibility because it will allow the existing Kottinger Place residents to relocate to Kottinger Gardens without rent increases and provides additional operating income that will help ensure that the project is financially feasible for the long-term. The initial contract term will be 15 years with an option to extend the contract assuming that extending the contract is appropriate to achieve long-term affordability. Design and Construction Following the Planned Unit Development Application approval in May, 2014, Dahlin Group Architecture and Planning developed the details and drawings for Kottinger Gardens Phase 1. Feedback from the Task Force regarding common areas, unit layouts, storage areas, and landscape and open space programming were used as starting points for the design development. In addition to this feedback, the design team also took the California Building Code, certain financing requirements, and comments from the Livermore-Pleasanton Fire Department and other City departments into consideration. Specific details will be shared with the Task Force at the upcoming October 26, 2015 meeting. With more than 300 sheets in the current set of drawings, the construction documents are nearly complete and were submitted to the City's Page 4 of 6