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THE CITY OF <br />� "' " "=r � �"' CITY COUNCIL AGENDA REPORT <br />j�L£�S�4NTON� <br />October 1, 2019 <br />City Manager <br />Housing Division <br />TITLE: ADOPT A RESOLUTION APPROVING AN OPTION TO LEASE <br />AGREEMENT WITH EDEN HOUSING FOR RIDGEVIEW COMMONS <br />SUMMARY <br />Eden Housing is in the process of refinancing Ridgeview Commons, a 200 -unit <br />affordable rental housing development for seniors 62 years and older. Ridgeview <br />Commons is slow -income housing tax credit (LIHTC) property built in 1989, and Eden <br />Housing is pursuing a "resyndication", or is seeking a new allocation of tax credits in <br />order to generate funds to complete substantial rehabilitation of the property. <br />Eden Housing's tax credit application for the October 2019 round requires evidence of <br />site control of no less than 75 years. Since their current lease with the City expires on <br />May 31, 2038, Eden Housing is requesting that the attached Option to Lease <br />Agreement be executed, and it will be included in Eden Housing's tax credit application <br />to demonstrate control of the site for the required period of time. <br />Upon successfully obtaining new tax credit financing, Eden Housing will collaborate with <br />the City in modifying the land lease, regulatory agreement, partnership documents, and <br />City loans in Spring 2020 when Eden Housing closes escrow on its project financing. <br />RECOMMENDATION <br />It is recommended the City Council adopt a resolution approving the Option to Lease <br />Agreement with Eden Housing for Ridgeview Commons. <br />FINANCIAL STATEMENT <br />There is no fiscal impact on the City to execute the Option to Lease Agreement. <br />Existing Housing Division and City Attorney's Office staff will be involved with modifying <br />existing ground lease, partnership, regulatory and loan documents for Spring 2020 for <br />the rehabilitation of Ridgeview Commons if tax credit funding is awarded. <br />