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The project will accept Section 8 vouchers (which will be memorialized in the Regulatory Agreement). Policy 24: use the City's lower-income housing fund as seed money for Federal and State tax credits to promote the construction of housing affordable to extremely low-, low- and very -low income households. Like Program 9.1 and Policy 18, the $2,250,000 in City LIHF will be leveraged by SAHA to obtain a larger amount of County, State and Federal funding assistance. Financing Plan for Sunflower Hill SAHA is completing the necessary steps to finalize a financing plan for Sunflower Hill. SAHA will be submitting an application for Lower Income Housing Tax Credit financing from the California Tax Credit Allocation Committee ("TCAC") in February 2018. The City is currently coordinating with County HCD staff to allocate $7,195,844 of the City's "Base City Allocation" to the 31 -unit Sunflower Hill development. Prior to the January 2nd, 2018 submittal deadline, the City and SAHA has submitted the County HCD-required online application for Sunflower Hill to formally request the Measure Al funds. As already discussed, formal funding approval will be finalized after the February 27, 2018 Board of Supervisors meeting. After the Housing Commission reviews the Measure Al funds for Sunflower Hill, City staff anticipates that County HCD will also require City Council approval of these funds before the City can formally commit these funds to Sunflower Hill. Additionally, to provide for the City's $2,250,000 in LIHF financial support for this project, as well as the use of the 1.64 acre parcel via a long term lease, additional agreements will need to be executed between the City, SAHA, and Sunflower Hill. The commission is asked to ratify the ENRA's prior commitment of $2,250,000 of LIHF for the project, which is achieved via the following attached documents: - Disposition Development and Loan Agreement: This agreement, also known as a DDLA, sets forth the overall parameters of the approved project that is being funded, all of the funding sources, and particularly the City's LIHF $2,250,000 loan. Provisions of the agreement describe parameters that SAHA must meet for the project to proceed, as well as other documents that need to be submitted to the City for review before the loan and ground lease are finalized. - Regulatory Agreement: The regulatory agreement sets rent levels for each type of unit, occupancy restrictions, operational requirements, and the ability of City to review the operating budget, management company, as well as audit tenant eligibility. Ground Lease: As the City remains the owner of the underlying fee interest of the property, only a long-term 75 year ground lease is being provided to Sunflower Hill and SAHA. The ground lease includes development, operation, and maintenance provisions for the approval project. PUD -129, Sunflower Hill Housing Commission 8 of 9