Agenda Item No: K.1
AGENDA REPORT
DATE: May 5, 2026
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 202 6-67 HD Committing $ 850,000 in HOME funds and Increasing Housing Trust Fund Commitment from $1,000,000 to $1,150,000 for the Tabor Commons Project
Approving the First Amendment of the Development Loan Agreement with 212 E Tabor Fairfield EAH, LLC, and Committing $850,000 in HOME Funds and an additional $150,000 in Housing Trust Funds to Support the Development of Affordable Housing
Funding Source: $1,000,000 ($850,000, HOME Program Income Fund and $150,000, Housing Trust Fund)
Contact: LaTanya Terrones, (707) 428-7454
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
Adopt a resolution authorizing the city manager, or designee, to execute an amendment to the Development Loan Agreement (DLA) with 212 E . Tabor Fairfield EAH, LLC (Developer) for the development of 66 affordable housing units plus one manager’s unit (67 to tal) located at 212 E.
Tabor Avenue. The amendment authorizes an additional $1,000,000 to the project by increasing the Local Housing Trust Fund commitment from $1,000,000 to $1,150,000 and adding $850,000 in HOME funds.
DISCUSSION
Developer Background and Experience
EAH Housing is a nonprofit corporation founded in 1968 and is one of the largest and most respected nonprofit affordable housing development and management organizations in the Western United States. EAH Housing develops and manages afforda ble housing throughout
California and Hawaii and is actively engaged in local, regional, and national housing advocacy efforts.
EAH Housing currently manages over 222 properties and 13,000 units across 87 municipalities, serving more than 25,000 residents, including seniors, families, students, people with disabilities, the frail elderly, and individuals experiencing homelessness. The organization has successfully developed over 106 affordable housing properties, demonstrating its capacity to develop and operate high -quality affordable housing for extremely low -, very low -, and low -income households.
Project Description
EAH Housing proposes developing and operat ing a 67 -unit affordable multifamily housing development, consisting of 66 affordable units and one on -site manager’s unit, along with community space, at 212 E . Tabor Avenue. The project is intended to provide long -term affordable housing while contributing to the City’s housing goals.
Financing Need and Request
The Developer has submitted updated pro forma documentation demonstrating a need for additional local financial support to successfully advance the project. While the Developer has secured most of the funding required to submit a competitive application for California Tax Credits, an additional local commitment is necessary to strengthen the application and address financing gaps.
The Developer is requesting that the City amend the existing Developme nt Loan Agreement to include $ 850,000 in HOME funds and an additional $150,000 in previously approved Housing Trust Funds. The additional $1,000 ,000 in combined funds w ill enhance the project’s financial feasibility and improve its competitiveness for State funding.
The additional funds will allow Tabor Commons to be better structured to compete for 4% Tax Credit Allocation Committee (TCAC) financing. With the award of additional funds, the project is better positioned to receive and award for the Multifamily Housing Program (MIP) funds applied for in March 2026, and the first round of TCAC/CDLAC funds in May 2026.
If Tabor Commons is successful in receiving both MIP and TCAC/CDLAC awards, construction is anticipated to begin in 2027, consistent with the 180-day TCAC readiness requirement.
Tabor Commons will be subject to a 55 -year affordability covenant, ensuring the long -term provision of affordable housing units consistent with State and federal affordable housing requirements. The covenant will be recorded against the property and will require the project to remain affordable to income -qualified households for the full term of the restriction, thereby securing a lasting public benefit from the City’s investment.
City Financial Commitments and Leveraging Strategy
Approval of the amended DLA would confirm the City’s overall financial commitment to the project, which includes:
$1,150,000 Housing Trust Fund loan (previously approved and updated) $850,000 HOME funds (requested)
Fee credits up to $1,000,000
Fee deferrals up to $1,500,000
Commitment of 25 Project-Based Housing Choice Vouchers $636,083 in Community Development Block Grant (CDBG) funds for land acquisition ( previously approved and disbursed)
These commitments will allow EAH Housing to leverage City funds to strengthen its funding applications and improve scoring competitiveness at the State level.
FINANCIAL IMPACT
This action will have no impact on the General Fund. However, approval of the amended Development Loan Agreement will commit an additional $850,000 in HOME funds from the City’s HOME Program Income funds and increase the City’s contribution of the Local Housing Trust Fund from $1,000,000 to $1,150,000.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
The City Council may choose not to approve the amendment. However, this choice would prevent the City from reaching the requisite affordable housing goals and mandates identified in its City of Fairfield Housing Element.
COORDINATED WITH
City Attorney’s Office
STAFF CONTACT
LaTanya Terrones, Sr. Project Manager
(707) 428-7454
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution
Attachment 3: Amended Developer Loan Agreement