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permanent financing documents senior to the City's agreements which are described in the Loan Documents; and, 3) Authorizing the City Manager, Nelson Fialho, or his designee, to execute such additional documents and to take all steps necessary to implement the transactions that are consistent with the terms of the Loan Documents and the Resolution. FINANCIAL STATEMENT Concurrent with the previous approvals of the DDLA, City Council also approved appropriations totaling $13,750,000 from the Lower Income Housing Fund to the Kottinger Gardens Project. Project funding will come from several sources of other funding including 9% Tax Credit equity, a permanent conventional loan, Alameda County and City of Pleasanton HOME Program funds, Alameda County Housing Trust ("Boomerang") funds and Affordable Housing Program (AHP) funds Affordable Housing Program (AHP) program. In order to secure the March 2015 Tax Credit award, MidPen requested that the full $13,750,000 LIHF loan amount be dedicated to Phase 1 of the development. In accordance with the Loan Agreement, any cost savings or other funds secured by MidPen, will be used to reduce or supplant the City's LIHF loan commitment for Phase 1 and will be applied to Phase 2 of the Kottinger Gardens project. MidPen plans to submit an AHP application for approximately $2,000,000 this month which would reduce the City's LIHF Loan on Phase 1. MidPen also plans to submit an AHP application for approximately$800,000 which would be used as a financing for Phase 2. BACKGROUND On November 12, 2013, the City Council approved a Disposition, Development and Loan Agreement ("DDLA") with Mid Pen Housing which established a scope, timeline and financing commitment for the development of a 185 unit, phased senior housing project proposed by MidPen Housing, referred to as "Kottinger Gardens". The project is to be developed in two phases with 131 units to be developed as Phase 1 on the Kottinger Place housing site and 54 units to be developed as Phase 2 on the Pleasanton Gardens site. On June 16, 2015, City Council approved an increase to the City's Lower Income Housing Fund loan commitment for a total of $13,750,000 to facilitate an award of Lower Income Housing Tax Credit financing from the California Tax Credit Allocation Committee ("TCAC") and ensure the project's timely completion. Mid Pen and the City/Pleasanton Housing Authority (PHA) have received final approval for the disposition of the Kottinger property from U.S. Department of Housing and Urban Development (HUD). On February 16, 2016 the City and PHA Board approved the Disposition Agreement, Use Agreement and other documents required by the to effectuate the transfer of the Kottinger Place property from the PHA to the City and to allow for a subsequent execution of a ground lease between the City and "Kottinger Gardens Phase 1 Associates, L.P.". Disposition of the Kottinger Place property is scheduled to occur by the end of February. Page 2 of 4