1818 PACIFIC AVE BASE FILE 2018-01-01 MF Import

Y a- �' . .� In addition to the long-term loan, the balance of the funding will come from an equity paracipation by limited partners in a limi� partnership in which Bethany will be the sole general partner. The limited parmers will essentially pmvide equity capital for the purchase of low income housing tax credits available through the Washington State Housing Finance Commission. Attached is a June 30, 1995 Letter rommitment from the Commission reserving 56.2 million for a private activiry bond cap. However, it will be necessary in order to complete the funding, for Betha�iy to borrow approzimately 5375,000 of the total borrowed funds. It is in this latter regazd that Bethany is approaching the City with this request. 2. • While in one rrspe�t, the City could view this request as simply an altemative investment opportunity, Bethany believes the nature of the request would not necessarily fit the crimria routinely used by the City in selecting alternative investment vehicles, although we believe it will be consistent with the loan previously made to Bethany in connection with the Silver Lake project, as detailed in the attachments. (a) The DmJect furchers state� public li v. - As you 1rnow, the State Legislature has, as a matter of public policy, empowered ciaes to assist in the development of housing for persons of low income by providing loans from general municipal funds W the owners or developers of such housing, "... to financt all or a portion of the cost of construcfion, reconstruction, acquisition, or rehabilitaGon of housing that will be occupied by a person or family of low incomc." See RC�V 35.21.685 (a copy of which is attached) (b) Th�DlnJ�t will add needed new low ' come cr��* u�nc;np inve��+ The pmposed project will add to the Ciry's inventory of senior low income housing ir. furthetance of that policy. In fact, the area within which the projeci is located has been designaud by the State Housing Financing Commission as one of two areas within the City of Evueit designated as difficult to develop azeas, (c) The n�ixt loca6on ia �uitable. This particular pmjxt will focus on low income seniors, and the location is pazticululy suited in that regazd, due to its prozimity to the Senior Center 1 block away on Lombard. (d) The nroiect develo r th yl i� a prefercnd non-vmfit L= exempt orea++iLHon. .. Thus, Bethany believes that the loan will further the public interest in suppurting low -- income housing as set forth by the Legislature in che above-referenced legislation, and consistent , - 2 -