Empower individuals & families ● Build community resilience ● Promote housing opportunities ● Enhance quality of life
HOUSING &
HOMELESS SERVICES
Item 7.3
Otay Ranch Apartments/Encelia
HOUSING &
HOMELESS
SERVICES
Otay Ranch Apts / Encelia
• Meta Housing Corporation, developer
• Village 8 West
• 173 Affordable Units + 2 Manager’s Units
• Rents affordable at 50% and 60% of Area
Median Income (“AMI”)
• 55 1-Bedroom units
• 74 2-Bedroom units
• 46 3-Bedroom units
• Commercial space
• Community rooms, teen lounge, dog park,
tot lot, 1/2 basketball court, and more
• Fully occupied
Project Overview
HOUSING &
HOMELESS
SERVICES
Tax –Exempt Bonds
• Debt financing tool for affordable housing
• Investors are not taxed on interest income
• Developers can finance at lower interest rates
• Repaid to bondholders from rental income
• Total bonding capacity limited by state/federal
government
• Regulated through Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA)
HOUSING &
HOMELESS
SERVICES
TEFRA Hearing
• Required for any issuance of tax-exempt bonds
• Public hearing must be held
• Public must be given opportunity to provide comment
• Required because maturity date of a portion of bonds is being modified • Additional $5.9 Million being converted to permanent debt • If weighted avg maturity date is extended by 4+ years, new TEFRA is needed
HOUSING &
HOMELESS
SERVICES
Encelia Bond Issuances
Bond Maturity
2021 2022 2024 2052
$4,000,000
Supplemental
Allocation
Previous Partial
Maturity Date
$35,000,000
Bond Issuance
2020
Extension
HOUSING &
HOMELESS
SERVICES
Recommendation
Approve the conversion of the bond
revenue notes to the permanent phase of
financing for Otay Ranch Apartments
(Encelia at Cota Vera)