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THE CITY OF <br />a-, - -n Ills Ili 111 <br />PLEASANTON, <br />Housing Commission <br />Agenda Report <br />September 19, 2019 <br />Item 6 <br />SUBJECT Overview of Refinancing and Resyndication of Ridgeview Commons <br />RECOMMENDATION <br />This item is for the Commission's information only; no action is required. <br />ATTACHMENTS <br />1. Draft Option to Lease Agreement <br />BACKGROUND <br />Constructed in 1989, Ridgeview Commons (Ridgeview), an Eden Housing development, is a <br />200 -unit affordable senior rental housing complex located at 5200 Case Avenue in Pleasanton. <br />The construction of Ridgeview was financed through the combination of City loans and <br />California tax credit financing. There are two (2) existing City loans: 1) a $4,000,000 loan, <br />which is a Housing Development Grant ("HDG") Loan funds granted to the City by the U.S. <br />Department of Housing and Urban Development (HUD); and 2) a $2,457,000 loan. <br />Additionally, the City owns and leases the land to Eden Housing. <br />DISCUSSION <br />Eden Housing has approached the City for assistance as they are pursuing a refinance and <br />resyndication of the Ridgeview property to ensure the project's long term financial success as <br />well as to substantially rehabilitate the property. Once resyndication is achieved, Eden <br />Housing would undertake exterior improvements including window replacements, rebuilding of <br />patio decks, new fencing, new site lighting, and new landscaping and irrigation. Eden Housing <br />would also make systems replacements for electrical and plumbing. Individual residential units <br />would be provided with new ranges and hoods, exhaust fans in the bathrooms, and new <br />faucets in the kitchens and bathrooms, and new toilets. <br />In order to succeed in this refinance, Eden Housing has requested to collaborate with the City <br />in modifying the land lease, ownership, and City loans. <br />Site Control <br />Eden Housing has prioritized executing an Option to Lease Agreement (Lease Option) in order <br />to demonstrate site control. City staff will be presenting the attached draft Option to Lease <br />Agreement at the October 1, 2019 Council meeting for City Council's review and approval. <br />Eden Housing is required to provide evidence of site control in order to be eligible to submit <br />their tax credit application scheduled for October 11, 2019. <br />Page - 1 - <br />