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REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />January 25, 2016 <br /> <br />SUBJECT <br />Tax and Equity Fiscal Responsibility Act (TEFRA) Hearing - Conduit Financing for the <br />City Center Plaza Apartments Affordable Housing Project <br /> <br />RECOMMENDATION <br />1. Conduct the public hearing under the requirements of TEFRA and the Internal <br />Revenue Code of 1986, as amended (the “Code”). <br />2. Adopt the resolution approving the issuance of the Bonds by the California Municipal <br />Finance Authority (CMFA) for the benefit of MidPen Housing Corporation, a California <br />nonprofit corporation and an organization described in Section 501(c)(3) of the Internal <br />Revenue Code of 1986, or a subsidiary or affiliate thereof (the “Borrower”), to provide <br />for the financing of the Project, such adoption is solely for the purposes of satisfying the <br />requirements of TEFRA, the Code and the California Government Code Section 6500 <br />(and following). The resolution will also authorize the Mayor or designee thereof to <br />execute the Joint Exercise of Powers Agreement with the CMFA. <br /> <br />BACKGROUND <br /> <br />The former Redwood City Redevelopment Agency (“RDA”) entered into a Disposition <br />and Development Agreement (“DDA”) with J.H.R. Trust (“JHR”) and Mezes Court <br />Associates, a California Limited Partnership (“MCA”), the general partner of which is <br />controlled by MidPen Housing, in 1996. This agreement allowed for the development of <br />81 units of affordable multifamily rental housing and approximately 18,000 square feet <br />of ground floor retail space. Specifically, MCA developed the City Center Plaza <br />apartments (850 Main Street) and JHR developed the ground floor commercial space. <br /> <br />The RDA provided financial assistance to both MCA and JHR through separate <br />Developer Notes (Notes) and Developer Deeds of Trust in accordance with the terms <br />and conditions of the DDA. The Developer Notes and Developer Deeds of Trust are <br />dated June 18, 1996, with MCA in the amount of $1,445,000 and JHR in the amount of <br />$255,000 (for a total of $1,700,000). The JHR Note was prepaid in full in 2012. <br /> <br />MidPen’s City Center Plaza apartments are located at 950 Main Street in downtown <br />Redwood City and include 81 units of deed restricted affordable rental housing. The <br />apartments consist of 20 one-bedroom units, 32 two-bedroom units, 22 three-bedroom <br />units and 7 four-bedroom units. City Center Plaza is a 100% affordable development for <br />very low income households. <br />9.B. - Page 1