Agenda Item No: K.5
AGENDA REPORT
DATE: August 4, 2026
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2026 -172 HD Second Amendment to the Development Loan Agreement with 212 E. Tabor Fairfield EAH, LLC and Amending Home and Local Housing Trust Fund Allocations for the Tabor Commons Affordable Housing Project
Approving the Second Amendment of the Development Loan Agreement with 212 E . Tabor Fairfield EAH, LLC, Increasing Affordable Housing Fee Credits by $800,000, and Amending Home the Local Housing Trust Fund Allocations for the Tabor Commons Affordable Housing Project
Funding Source: $800,000 Affordable Housing Fee Bank Credits
Contact: LaTanya Terrones, (707) 428-7454
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
Adopt a resolution authorizing the City Manager, or designee, to execute the Second Amendment to the Development Loan Agreement (DLA) with 212 E. Tabor Fairfield EAH, LLC for the development of Tabor Commons, a 67-unit affordable housing development located at 212 E.
Tabor Avenue.
The Amendment:
Increases the project's affordable housing fee bank credits by $800,000 (from $1,000,000 to $1,800,000); and
Revises the City's existing $2,000,000 loan commitment by increasing the HOME allocation from $850,000 to $957,500 and decreasing the Local Housing Trust Fund allocation from $1,150,000 to $1,042,500.
The amendment does not increase the City's loan commitment. It only adjusts the funding sources within the previously approved $2,000,000 commitment.
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 affordable housing throughout California and Hawaii and is actively engaged in local, regional, and national housing advocacy efforts.
EAH Housing currently manages over 222 prop erties 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 Tabor Commons, a 67 -unit affordable multifamily housing community consisting of 66 affordable rental units and one unrestricted manager's unit at 212 E.
Tabor Avenue. The development will include community space, resident amenities, and long - term affordability restrictions to provide quality housing for lower-income households.
Financing Need and Request
The Developer has submitted an updated project pro forma demonstrating that additional local financial support is necessary to strengthen its application for State funding.
Although the project has secured most of the financing needed to move forward, additional local commitments are necessary to complete the state funding commitments for California's Multifamily Housing Program (MHP) and the Tax Credit Allocation Committee ( TCAC)/California Debt Limit Allocation Committee (CDLAC) financing programs.
The requested amendment would:
Increase affordable housing fee bank credits from $1,000,000 to $1,800,000; Increase the HOME Program commitment from $850,000 to $957,500; and Reduce the Local Housing Trust Fund commitment from $1,150,000 to $1,042,500.
The HOME and Housing Trust Fund adjustments do not increase the City's overall loan commitment. The City's total financial commitment remains $2,000,000.
Approval of the additional fee bank credits will help secure the gap financing the project needs to finalize state funding.
If awarded State financing, construction is anticipated to begin in 2027, consistent with TCAC's 180-day readiness requirement.
City Financial Commitments and Leveraging Strategy
Approval of the amendment would confirm the City's financial participation in the project as follows:
Local Housing Trust Fund Loan: $1,042,500
HOME Program Funds: $957,500
Affordable Housing Fee Bank Credits: Up to $1,800,000 Affordable Housing Fee Deferrals: Up to $1,500,000
Community Development Block Grant Funds (Land Acquisition): $636,083 (previously approved and disbursed)
Project-Based Housing Choice Vouchers: 25 vouchers ( Previously approved)
These local commitments strengthen the Developer's ability to leverage State and federal financing necessary to construct the project.
FINANCIAL IMPACT
Approval of the Second Amendment will have no impact on the City's General Fund. The amendment:
Commits an additional $800,000 in affordable housing fee bank credits; Increases the HOME Program allocation from $850,000 to $957,500; and Decreases the Local Housing Trust Fund allocation from $1,150,000 to $1,042,500.
The HOME and Local Housing Trust Fund adjustments do not increase the City's overall loan commitment, which remains $2,000,000.
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