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BACKGROUND Constructed in 1989, Ridgeview Commons (Ridgeview), an Eden Housing development, is a 200 -unit affordable senior rental housing complex located at 5200 Case Avenue in Pleasanton. The City owns and leases the land to Eden Housing, and Eden Housing owns the facilities on the site. The construction of Ridgeview was financed through the combination of City loans and California Low Income Housing Tax Credit (LIHTC) financing. There are two (2) existing City loans: 1) a $4,000,000 loan, which was a Housing Development Grant ("HDG") Loan using federal funds granted to the City by the U.S. Department of Housing and Urban Development (HUD); and 2) a $2,457,000 loan using City lower-income housing funds. DISCUSSION Eden Housing has approached the City for assistance to pursue a refinance and resyndication of the Ridgeview property to ensure the project's long term financial success as well as to generate funds about $15 to $20 million dollars in tax credit financing to substantially rehabilitate the property. Once resyndication is achieved, Eden Housing would undertake exterior improvements including window replacements, rebuilding of patio decks, new fencing, new site lighting, and new landscaping and irrigation. Eden Housing would also replace electrical and plumbing systems. Individual residential units would be provided with new ranges and hoods, exhaust fans in the bathrooms, new faucets in the kitchens and bathrooms, and new toilets, as well as accessibility improvements for some units. In order to succeed in this refinance, Eden Housing has requested to collaborate with the City in modifying the land lease, partnership documents, and existing regulatory agreement and City loans. If Eden Housing is successful in its tax credit application, then these documents will be revised and presented to the Housing Commission and City Council in Spring 2020. If Eden Housing is not initially successful in its October 2019 tax credit application, the proposed Option to Lease Agreement has a term through December 2021 (see Section 2.a. of Attachment 2), which would allow Eden Housing to re -apply in the next round of tax credit financing, and still be able to demonstrate the required site control, and if tax credits are awarded provide time for documents to be revised and approved in late 2020 or early 2021. In the event Eden Housing is not successful in obtaining tax credit financing, the Option to Lease Agreement will expire and Ridgeview Commons will remain operating in its current status. Site Control Eden Housing has proposed executing an Option to Lease Agreement (Lease Option) in order to demonstrate site control for the 75 years required by the state. Eden Housing is required to provide evidence of site control in order to be eligible to submit their tax credit application scheduled for October 11, 2019. The proposed Lease Option provides that the Ridgeview would continue to be used as affordable rental housing for a period not less than 75 years. Additionally, the draft Option to Lease Agreement contemplates replacing the current land lease payment of $1 per year with a capitalized land lease payment matching the value of land, which is Page 2 of 3