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(County HCD) is finalizing the Bond program policies and anticipate beginning operating <br /> the housing programs, including issuing the requests for proposals of rental housing <br /> developments, in Fall/Winter 2017. City staff will update the City Council on all of the <br /> Bond programs once the program policies are finalized and ready for implementation. In <br /> the meantime, City staff is working with County HCD to discuss other rental housing <br /> developments that could greatly benefit from being funded with the City's "Base City <br /> Allocation" of $13.7 million. <br /> DISCUSSION <br /> Pursuant to a Disposition, Development and Loan Agreement ("DDLA") between the City <br /> and MidPen Housing Corporation (MidPen) that was executed in November 2013, the <br /> development of Kottinger Gardens, an 185-unit, phased senior housing project is well <br /> underway. The project is under development in two phases, with the first 131-unit <br /> development currently under construction and scheduled to be completed in Fall 2017. <br /> The second phase will include a 54-unit development on the current 1.99 acre Pleasanton <br /> Gardens housing site, along with an assemblage of approximately 1.0 acre in an adjacent <br /> parcel currently owned by the City. <br /> MidPen is completing the necessary steps to finalize a financing plan for Phase 2. <br /> MidPen will be submitting an application for Lower Income Housing Tax Credit financing <br /> from the California Tax Credit Allocation Committee ("TCAC") in July 2017. As Phase 1 <br /> nears construction completion, an estimated $2,825,360, which is the remaining <br /> unexpended balance from the $13,750,000 LIHF loan that was originally provided to <br /> MidPen for the entire 185-unit Kottinger Gardens development, will be diverted to the <br /> Phase 2 development. Lastly, the City will be coordinating with County HCD staff to <br /> allocate $4.6 of the City's $13.7 million Base City Allocation to the 54-unit Phase 2 <br /> development. <br /> With strong financial commitments from the City from its LIHF and Measure Al Housing <br /> Bond Base City Allocation, MidPen's tax credit application for Kottinger Gardens Phase <br /> 2 project is poised to be a competitive project. Upon securing tax credit financing in Fall <br /> 2017, construction of Phase 2 is projected to commence in December 2017. <br /> Submitted by: Fiscal Review: Approve by: <br /> � & <br /> /L4/1' <br /> Brian Dolan Tina Olson Nelson Fialho <br /> Assistant City Manager Director of Finance City Manager <br /> Attachments: <br /> 1. Draft Resolution <br /> Page 3 of 3 <br />