File No. 20-0804

HOMELESSNESS AND POVERTY COMMITTEE REPORT relative to Affordable Housing Managed Pipeline projects applying to the California Tax Credit Allocation Committee (CTCAC) in 2020 Round 2, and various actions related to other existing Managec;l Pipeline projects.

Recommendations for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR:

1. NOTE and FILE the Los Angeles Housing and Community Investment Department (HCIDLA) report dated June 12, 2020, attached to Council File No. 20-0804, relative to issuing funding commitments and support letters to existing Affordable Housing Managed Pipeline projects applying to the CTCAC in the 2020 Round 2 and various actions related to other existing Managed Pipeline projects.

2. REPLACE the Table on page 3 of the City Administrative Officer (CAO) report, attached to the Council file, with the Table reflected on the June 26, 2020, CAO communication read and submitted into the record at the June 29, 2020 Special Homelessness and Poverty Committee meeting.

3. AUTHORIZE the General Manager, HCI DLA, or designee, to:

a. Issue a funding recommendation letter for the Los Lirios and Towne I - Edward projects identified in the Table of the CAO report dated June 22, 2020, attached to CF No. 20-0804, subject to the following conditions:

i. The final funding commitment will not exceed the amount listed.

ii. The project sponsor must apply to the CTCAC in the next available Low Income Housing Tax Credits (LI HTC) allocation round.

iii. The disbursement of HCI DLA funds will only occur after the project sponsor obtains enforceable commitment for all proposed funding.

b. Issue tw'o sets of Nine Percent Ll HTC tie-break letters of support; the first set to the Los Lirios Apartments and Lorena Plaza projects in the Further Consolidated Appropriations Act set-aside, and the second set for the Ambrose/Montana, Bryson II, and Depot at Hyde projects in the Geographic set-aside, as identified in the Table reflected in the June 22, 2020 CAO report, attached to the Council file.

c. Negotiate and execute acquisition/predevelopment/construction/permanent loan agreements with the legal owners of all projects identified in the Table of said CAO report, including the to-be-determined (TBD) project, that receive awards from the proposed leveraging sources, subject to the satisfaction of all conditions and criteria contained in the HCIDLA Pipeline application, HCIDLA report, and the HCIDLA Award Letter (if applicable); and, subject to the review and approval of the City Attorney as to form.

d. Execute subordination agreements of the City's financial commitment for all projects identified in the Table of said CAO report, wherein the City Loan and Regulatory

Agreements are subordinated to their respective conventional or municipally funded construction and permanent loans, as required.

e. Allow the transfer of the City's financial commitment for all projects identified in the Table of said CAO report to a limited partnership or other legal entity formed solely for the purpose of owning and operating the project in accordance with City and Federal requirements.

f. Reconvey the recorded Deed of Trust and terminate the recorded Regulatory Agreement for the Taylor Yard Master Association Lot 2A.

g. Obligate HOME Investment Partnership Program funds for the following projects:

Project .E..!.m.d. Account Account Name Hartford Villa Apartments 561/43 43S800 TBD Los Lirios Apartments Towne 1 - Edward

561/43 43S800 TBD 561/43 43S800 TBD

Total:

Amount $1,426,129 5,775,000 1.700.000

$8,901,129

h. Prepare Controller instructions and make any necessary technical adjustments consistent with the Mayor's and Council action on this matter, subject to the approval of the CAO.

Fiscal Impact Statement: The CAO reports that there is no impact to the General Fund. The Affordable Housing Managed Pipeline commitments are fully funded by the HOME Investment Partnerships Program Fund and Proposition HHH Supportive Housing bond proceeds.

Community Impact Statement: None submitted.

Summary:

At a special meeting held on June 29, 2020, your Homelessness and Poverty Committee considered a CAO report dated June 22, 2020, relative to Affordable Housing Managed Pipeline projects applying to the CTCAC in 2020 Round 2, and various actions related to other existing Managed Pipeline projects. The report attached to the Council file, includes some background on the matter. After providing an opportunity for public comment, the Committee moved to approve the recommendations reflected above. This matter is now forwarded to the Council for its consideration.

Respectfully Submitted,

HOMELESS NESS AND POVERTY COMMITTEE MBIIIBER VOTE OFAARELL: 'IES

ROORIGUEZ: 'IES

BONIN: 'IES

H.ARRIS-DA\NSON: 'IES

R'r'U: 'IES

EV 20-0804 _ rpt_ HP _ 06-29-20

-NOT OFFICIAL UNTIL COUNCIL ACTS-