This resolution allows the City to issue a multifamily housing revenue note for up to $84.1 million to finance the construction of a 127-unit rental housing project at 505 Mayor Edwin M. Lee Avenue. It also approves various agreements related to the loans and grants authority to city officials to carry out the necessary actions for the project.
Resolution approving for purposes of the Internal Revenue Code of 1986, as amended, authorizing the execution and delivery of a multifamily housing revenue note in one or more series in an aggregate principal amount not to exceed $84,116,000 for the purpose of providing financing for the construction of a 127-unit (plus one manager’s unit) multifamily rental housing project expected to be located at 505 Mayor Edwin M. Lee Avenue (formerly known as 11 Frida Kahlo Way) (Assessor’s Parcel Block No: 3180-202), known as “Balboa Reservoir - Building E”; approving the form of and authorizing the execution of a funding loan agreement, providing the terms and conditions of the loan from the funding lender to the City, and the execution and delivery of the note; approving the form of and authorizing the execution of a project loan agreement providing the terms and conditions of the loan from the City to Balboa Lee Avenue, L.P. (the “Borrower”); approving the form of and authorizing the execution of a regulatory agreement and declaration of restrictive covenants; authorizing the collection of certain fees; approving modifications, changes and additions to the documents; ratifying and approving any action heretofore taken in connection with the back-to-back loans, the note and the project; granting general authority to City officials to take actions necessary to implement this Resolution and related matters, as defined herein.
How it got here
The legislation originated from the need to finance the construction of a multifamily housing project at Balboa Reservoir, prompted by prior allocations from the California Debt Limit Allocation Committee.
CDLAC allocated $73,004,348 in qualified private activity volume cap to the Balboa Reservoir - Building E project.
CDLAC allocated an additional $1,111,652 to the project, bringing the total allocation to $74,116,000.
A notice for a public hearing regarding the issuance of multifamily affordable housing bonds was published, scheduled for June 23, 2025.
A public hearing was conducted to gather comments on the proposed bond issuance for the project, with no public opposition noted.
The Mayor's Office submitted a resolution to the Board of Supervisors for approval of the multifamily housing revenue note to finance the project.
The Board of Supervisors adopted the resolution authorizing the execution and delivery of the multifamily housing revenue note for the project.
The Mayor approved the resolution, finalizing the authorization for the multifamily housing revenue note.
Reconstructed from attached documents & the official record
