REPORT TO COUNCIL
SUBJECT
Title
Hold Tax Equity and Fiscal Responsibility Act (TEFRA) Hearing and Adopt Resolution Approving Issuance of up to $50 Million in Tax-Exempt Bonds for Mixed-Income Rental Housing Development at 1008 E. El Camino Real in Sunnyvale and Authorizing the City to Become an Additional Member of the California Public Finance Authority
Report
BACKGROUND
On July 25, 2017, (RTC No. 17-0689) the City Council approved development of a new 108-unit mixed-income apartment project by St. Anton Communities (Developer) submitted through Planning File 2016-7293. The project will be built on a 2-acre site on El Camino Real and Poplar Avenues, and is known as the "St. Anton ECR Apartments" project (the "Project"). Approval of the Project was contingent on the Developer's voluntary commitment to provide 20% of the new apartment units (22 units) at rents affordable to very low income households (VLI units), supported by federal tax credits. Very low income households are those with incomes at or below 50% of the area median income (AMI).
The project site consists of two parcels: one at 1008 E. El Camino Real (APN 313-03-011) and the other at 1316 Poplar Avenue (APN 313-03-013). The property on El Camino was previously a 44-space mobile home park, and a duplex was located on the Poplar property. The mobile home park owner applied for approval of a Conversion Impact Report (CIR) to close the park in early 2015. The City Council approved the CIR on January 5, 2016 (RTC No. 15-0890), with a tenant relocation assistance plan consistent with Sunnyvale Municipal Code (SMC) Chapter 19.72. The tenants were relocated to other housing by August 2017 with relocation assistance provided by the park owner, Sunnyvale Park LLC, and the park was closed shortly thereafter.
The Developer intends to use tax-exempt bonds and federal "4%" tax credits to finance development of the Project. The bonds and tax credits are regulated by the federal Internal Revenue Code (IRC), which...
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