HomeMy WebLinkAbout7.1 CalCHA ProgramCalifornia Community Housing
Agency (CalCHA) Program
City Council Meeting
July 21, 2020
Background
•City Council previously received report with
summary of affordable housing opportunities in
Dublin
•Included was opportunity presented by Catalyst to
participate in CalCHA Program
•City Council directed staff to further analyze
program and consider joining CalCHA
CalCHA
•Affordable rental housing targeted at moderate and
middle-income households
•Managed by a joint powers authority, which
additional jurisdictions may join
•Catalyst is Asset Manager of projects under
contract to CalCHA
•CalCHA issues limited obligation bonds to acquire
new or existing apartment complexes
Public Benefit
•To utilize bond funds, public benefit is required
•Public benefit achieved through regulatory
agreements that restrict use of property and grant
surplus revenues to jurisdiction
•Regulatory agreement would:
–Restrict occupancy to low, median and moderate income
households
–Limit annual rent increase to four percent
–Prevent displacement of existing residents
City Participation
•To use proposed financing model in Dublin, the
City would need to:
–Become member of CalCHA for limited purpose of
financing or refinancing
–Approve CalCHA’s issuance of tax-exempt bonds
–Enter into Purchase Option Agreement
–Accept surplus cash or sales proceeds
Purchase Option Agreement
•Terms of Purchase Option Agreement for each
property include:
–Grants City right to purchase property 15 years after
acquisition
–Future acquisition price a sum sufficient to pay project
debt, encumbrances, amounts due to others, and
transaction costs
–Surplus cash held by trustee and used to pay project
financing costs and/or distributes to City
Deal Terms
•Proposed terms include:
–Authority to review selection of property management
company, agreement between Catalyst and CalCHA, and
Regulatory Agreement between CalCHA and trustee for
Dublin properties
–Properties acquired with BMR units would continue to be
subject to existing Regulatory Agreement
–Rents to low, median and moderate income households would not
exceed 35 percent of monthly income limit
–Preference for vacant units consistent with City’s Inclusionary
Guidelines
–City would be allowed to review and audit financial records
Recommendation
•Receive report
•Direct Staff to:
–Continue to work with Catalyst to adequately address
indemnification and liability concerns
–Return with a Resolution authorizing the City to become
member of CalCHA and authorizing City Manager to
enter into Purchase Option Agreements