FINANCE DEPARTMENT TAX EQUITY AND FISCAL RESPONSIBITY ACT (TEFRA) PUBLIC HEARING RELATED TO THE NORTHWEST MANOR II APARTMENTS June 1, 2015 VIC ERGANIAN Deputy Finance Director/City Treasurer

FINANCE DEPARTMENT TEFRA HEARING – Northwest Manor II Find that the proposed action is not a project subject to California Environmental Quality Act (CEQA) and no environmental document pursuant to CEQA is required; Adopt a Resolution approving the issuance of the California Statewide Communities Development Authority Multifamily Housing Revenue Bonds in an amount not to exceed $11 million for the Northwest Manor II Apartments 2

FINANCE DEPARTMENT 3 TEFRA hearing – Northwest Manor II East Mountain Housing Associates, L.P. (the borrower) has requested California Statewide Communities Development Authority (CSCDA) to issue $11 million bonds for the acquisition and rehabilitation of the Northwest Manor II Apartments. CSCDA is a Joint Powers Authority with the sole purpose of acting as conduit in financing projects that promote economic development through issuance of bonds.

FINANCE DEPARTMENT The project The property provides 44 units of affordable rental housing for very low income persons. The project is not financially assisted or deed-restricted by the City. The proposed acquisition and substantial rehabilitation through the tax exempt financing and tax credits will extend the affordability restriction, which is due to expire in 2015, by 55 years. 4

FINANCE DEPARTMENT TEFRA hearing The local agency in which the project is located is required to be a member of the JPA and approve the bonds and the project for state and federal tax law. 5

FINANCE DEPARTMENT TEFRA Hearing The TEFRA hearing is required under Section 147(f) of the Internal Revenue Code. The City of Pasadena does not bear any responsibility for the tax exempt status of the bonds, the debt service on the bonds nor any other matter related to the bonds. 6

FINANCE DEPARTMENT TEFRA Hearing This action supports City Council’s strategic goal to maintain financial responsibility and stability and to improve and promote the quality of life and the local economy. This action also extends the project’s affordability restrictions by 55 years. 7