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REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />July 25, 2016 <br /> <br />SUBJECT <br />Public Hearing on Issuance of Tax Exempt Bonds for the Hallmark House Apartments <br />and Resolution Approving the Issuance of Bonds <br /> <br />RECOMMENDATION <br />1. Conduct a Tax Equity and Fiscal Responsibility Act Hearing in consideration of the <br />issuance of tax exempt bond financing by the California Statewide Communities <br />Development Authority for the benefit of KDF Hallmark LP, to provide financing for the <br />acquisition, rehabilitation, improvement, and equipping of a 72-unit multifamily rental <br />housing project generally known as Hallmark House Apartments. <br /> <br />2. Adopt a resolution approving the issuance of Bonds by the California Statewide <br />Communities Development Authority not to exceed $15,000,000, for the benefit of KDF <br />Hallmark LP, to provide financing for the acquisition, rehabilitation, improvement, and <br />equipping of a 72-unit multifamily rental housing project generally known as Hallmark <br />House Apartments. <br /> <br />BACKGROUND <br />KDF Hallmark LP (the “Borrower”) has requested that the California Statewide <br />Communities Development Authority (“CSCDA”) serve as the municipal issuer of tax- <br />exempt multi-family housing revenue bonds in an aggregate principal amount not to <br />exceed $15,000,000 (the “Bonds”). The proceeds of the Bonds will be used for the <br />purpose of making a loan to the Borrower, to enable the Borrower to finance the <br />acquisition, rehabilitation, improvement and equipping of a 72-unit affordable multifamily <br />housing rental project located at 531 Woodside Road, Redwood City, California (the <br />“Project”), which will be owned and operated by the Borrower. The subject property was <br />damaged in a fire in 2013, and is currently in the final stages of building permit plan <br />check process. Building construction should begin soon, and occupancy would occur in <br />2017. <br /> <br />ANALYSIS <br />In order for all or a portion of the Bonds to qualify as tax-exempt bonds, the City of <br />Redwood City (“City”) must conduct a public hearing (the “TEFRA Hearing”) providing <br />the members of the community an opportunity to speak in favor of or against the use of <br />tax-exempt bonds for the financing of the Project. Adoption of the resolution is solely for <br />the purposes of satisfying the requirements of the Tax Equity and Fiscal Responsibility <br />8.A. - Page 1