NVF:SSG:JGH
8/23/2022
T-43679 / 1950948_3 1
Council Agenda: 10/18/2022
Item No.: 2.11
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
RESOLUTION NO. ______________
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN
JOSE AUTHORIZING AN EXCEPTION TO THE CITY’S
POLICY FOR THE ISSUANCE OF MULTIFAMILY
HOUSING REVENUE BONDS FOR THE VIEW AT
BLOSSOM HILL APARTMENTS (1007 BLOSSOM HILL)
AND FOR 2350 S. BASCOM AFFORDABLE HOUSING
APARTMENTS DUE TO SPECIAL CIRCUMSTANCES,
THEREBY ALLOWING ISSUANCE FOR THOSE
PROJECTS BY THE CALIFORNIA MUNICIPAL FINANCE
AUTHORITY
WHEREAS, San José lack enough affordable housing to meet resident’s needs, with a severe shortage of adequate affordable housing for extremely low-, very low-, and moderate-income households; and
WHEREAS, the Mayor and Council of the City San José (“City”) have responded to this need for affordable housing by setting a goal of building 25,000 new housing units by 2023, of which 10,000 are affordable; and
WHEREAS, the City adopted a policy for the issuance of Multifamily Housing Revenue bonds in 2002 (“Council Policy 1-16”) stating the parameters for when the City will serve as the bond issuer for affordable housing developments; and
WHEREAS, the City Council Policy 1-16 states that the City shall be the issuer of all bonds financing multifamily housing rental projects within the City, with specified exceptions; and
WHEREAS, one of these exceptions allows an outside issuer to issue bonds for affordable housing within the City when there are “special circumstances” merited by the circumstances of the project and the financing and in which case the City will not be the issuer of bonds for the project; and
NVF:SSG:JGH
8/23/2022
T-43679 / 1950948_3 2
Council Agenda: 10/18/2022
Item No.: 2.11
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
WHEREAS, the City Council Policy 1-16 requires the issuer to assume full responsibility for issuance and ongoing compliance of the bond issue with federal tax and state laws; and
WHEREAS, due to special circumstances, as described in the Memorandum from Housing and Finance Departments dated as September 26, 2022, staff recommended an exception to the City Council Policy 1-16 for two affordable housing developments, View at Blossom Hill Affordable Housing Development (“1007 Blossom Hill”) and 2350 S. Bascom Affordable Housing Development (“2350 S. Bascom”), which approval will result in the development of 389 new affordable apartments to our community; and
WHEREAS, California Municipal finance Authority (“CMFA”) will be the issuer of 1007 Blossom Hill and 2350 S. Bascom and the City will hold the Tax Equity and Fiscal Responsibility Act of 1986 hearing for the CMFA issuances; and
WHEREAS, approval of the recommended exception to the Council Policy 1-16 will enable 1007 Blossom Hill and 2350 S. Bascom to move forward with CMFA as their outside bond issuer and their current financing plan as set forth in the Memorandum from Housing and Finance Departments dated as September 26, 2022;
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN JOSE THAT:
An exception to the City’s Policy for the issuance of Multifamily Housing Revenue Bonds, is hereby authorized, for the View at Blossom Hill Apartments located at 1007 Blossom Hill and for 2350 S. Bascom Affordable Housing Apartments due to special circumstances, thereby allowing issuance for those projects by the California Municipal Finance Authority.
NVF:SSG:JGH
8/23/2022
T-43679 / 1950948_3 3
Council Agenda: 10/18/2022
Item No.: 2.11
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
ADOPTED this _____ day of ___________, 2022, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
SAM LICCARDO
Mayor
ATTEST:
TONI J. TABER, CMC
City Clerk