CITY COUNCIL REGULAR METING AGENDA PACKET 1-20-26

Page 1 of 4 Item #3 CITY COUNCIL AGENDA REPORT January 20, 2026 Community and Economic Development TITLE: ADOPT A RESOLUTION APPROVING A GROUND LEASE AMENDMENT FOR PROMENADE APARTMENTS AT 5300 CASE AVENUE SUMMARY Promenade Apartments (the Property) is a 146-unit, mixed-income multifamily rental property, located at 5300 Case Avenue. The City owns the underlying real property, with a ground lease requiring that 68 of the 146 units be affordable. In late 2024, the City Council approved the acquisition of the property by OAHS Promenades, LP (OAHS Promenades) from the former owner Bayside Communities, LLC (Bayside). OAHS Promenades assumed the existing ground lease with the intention of applying for Low-Income Housing Tax Credits (LIHTC) to finance the rehabilitation of the Property and to convert the Property to be 100 percent affordable. In June 2025, OAHS Promenades informed the City that they would not pursue near-term LIHTC financing, and instead would seek a U.S. Department of Housing and Urban Development (HUD)-insured Section 223(f) loan in the amount of approximately $26 million. The HUD loan would provide allow OAHS Promenade to refinance its existing loan to a much more favorable interest rate and to proceed with a portion of the needed repairs and rehabilitation, with the intent of applying for tax credit financing in future cycles. As a condition of issuing the HUD Section 223(f) loan, HUD requires the existing ground lease to include a fixed rent, extend the term of the ground lease, and attach HUD’s Ground Lease Addendum. The Resolution attached to this agenda report would authorize those amendments, and provide authority for the City Manager to make other administrative and minor amendments to the Ground Lease. RECOMMENDATION Adopt a Resolution to: 1. Approve the Ground Lease Amendment for the Promenade Apartments; 2. Authorize the City Manager and City Attorney to make minor modifications to Ground Lease Amendment, including any extensions or minor amendments that are necessary in the future; and 3. Authorize the City Manager or designee to execute such additional documents and take all necessary steps to implement the transactions described in the attached Resolution. BACKGROUND Promenade Apartments is a 146-unit mixed-income multifamily rental project located at 5300 Case Avenue in Pleasanton. The Property was constructed in 1994 and currently consists of 65 market-rate units, 79 affordable units (13 units at 30 percent Area Median Income (AMI) (Extremely Low Income), 34 units at 50 percent AMI (Very Low Income, and 32 units at 60 percent AMI (Low Income)), as well as 2 unrestricted units designated for property Page 25 of 683