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BACKGROUND The California Statewide Communities Development Authority (CSCDA) is a joint powers authority (JPA) founded and sponsored by the League of California Cities ("CalCities") and the California State Association of Counties (CSAC). CSCDA was created by CalCities and CSAC in 1988 to enable local government and eligible private entities access to low- cost, tax-exempt financing for projects with public benefits. Pleasanton, along with over 153 other California cities, counties, special districts, and agencies, is a member of CSCDA. CSCDA is one of two California JPAs that offer a similar range of programs to assist with funding and financing of public benefit projects, with the other being the California Community Housing Agency (CaICHA). One of the funding programs offered by CSCDA is the Workforce Housing Program, provided through an affiliate JPA, the CSCDA Community Improvement Authority (CSCDA-CIA). The Workforce Housing Program (WHP) uses tax-exempt government bonds issued by CSCDA, which can be used to acquire market-rate rental apartment buildings. Over time, as tenants transition, units in the project convert to income-restricted units, aimed at middle/moderate income households with incomes between 80 percent and 120 percent of Area Median Income (AMI). Typically, there is a mix of income levels assigned, based in part on the need for the project to generate sufficient rental revenues to cover operating costs, repay the bonds, etc. In a sample project proposal shared with the City by CSCDA representatives, units were evenly split between 80 percent AMI, 100 percent AMI and 120 percent AMI. However, other recently-funded projects have had different affordability splits — for example, a 2021 project approved in the City of West Hollywood had a 25 percent, 25 percent, 50 percent split, respectively, among the three income categories. The program does not displace existing tenants, and places limits on annual rent increases to be no more than four percent annually. The program is somewhat unique, targeting moderate-income units that are typically the most challenging affordability level to secure and finance, since most state and federal funding for affordable housing is aimed at lower income tiers (60 percent AMI and below). In recent months and years, a number of California Cities, including Livermore, Dublin, Pleasant Hill, Fairfield, and Santa Rosa, have participated in property acquisitions under the WHP. Over the last few years, the City has been approached by developers and representatives of both CSCDA and CaICHA, with interest in inviting the City's participation in a project acquisition. Most recently, in 2021, the City was contacted by Guy Houston, Field Representative for Opportunity Housing Group (a company that has acquired several developments through the WHP), with regard to a specific property acquisition opportunity in Pleasanton, the Avana Stoneridge Apartments. Given the potential financial and policy implications around participating in a property acquisition using bonds issued by CSCDA-CIA, City staff advised Mr. Houston and the CSCDA representative that it would be more appropriate to bring a broader discussion of the CSCDA program to City Council for review and direction, before making any recommendation on a specific project proposal, and declined to pursue the immediate Page 2 of 9