Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Housing Affordable topic
No spam. Unsubscribe anytime.
Council approves TEFRA support for 204-unit Santa Luceda affordable housing deal amid tenant‑notification concerns
Summary
The council adopted a resolution supporting tax‑exempt bond issuance for the 204‑unit Santa Lucía project after debate about whether current residents received direct notice; staff and the buyer's representative said the financing includes enforceable affordability restrictions and protections for existing tenants but acknowledged outreach procedures will be strengthened.
The City Council on May 12 adopted a resolution supporting the issuance of tax‑exempt bonds (TEFRA compliance) for Foothill Santa Lucia LLC's proposed acquisition and rehabilitation of a 204‑unit multifamily property at 589 Leslie St.
Selena Andrus, the city's finance director, said the action satisfies federal TEFRA notice requirements: the bonds would be issued by a state financing authority (not the city) and the city would incur no obligation for debt service. "The debt will be the sole responsibility of the borrower," Andrus said, describing the council's role as meeting the TEFRA hearing requirement.
Council debate focused on tenant notification and outreach. Multiple councilmembers and public speakers said tenants and some on‑site property managers were not directly notified in advance of the hearing. Staff and a remote project representative (identified in the record as Mr. Hackett) acknowledged that formal public notices were posted per normal TEFRA procedures but that direct, on‑site tenant outreach had not occurred before the hearing. Orlando Reyes (Community Development staff) and the buyer's representative said tenants will not be displaced by the transaction and that the regulatory agreement will add affordability and stability protections.
Mr. Hackett said the regulatory agreement would set income and rent restrictions: 20% of units restricted at 50% AMI and 80% at 80% AMI, and he said the acquisition aims to prevent speculative rent increases and arbitrary displacement. He described annual compliance requirements and potential enforcement by the bond issuer, including audits and the ability to review tenant files.
Councilmembers expressed frustration that tenants on the site had not received a courtesy notice; several asked staff to find ways to ensure affected residents receive clearer, earlier outreach in future ministerial/TEFRA processes. Some councilmembers also said delays could risk losing the buyer and jeopardize the affordability preservation opportunity. After discussion, the council moved and adopted the TEFRA resolution by roll call vote.
Public comment during the TEFRA item was largely focused on tenant notification, the timing of ministerial approvals, and the need for better resident outreach when projects affecting housing affordability are pending. Staff committed to follow up with additional outreach and to provide a clearer summary of benefits and tenant protections when similar items come before the council.
