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HomeMy WebLinkAboutConduct Tax and Equity Fiscal Responsibility Act (TEFRA) Pub wj 2000 Main Street, Ocz:0"'" • c Huntington Beach,CA Iv 92648 Cityof Huntington Beach • g PUBLIC HEARING CONT. .,vycF \ ' FROM 10/21/25 couvi APPROVED AS AMENDED 4-3 (KENNEDY,BURNS,WILLIAMS—NO; File #: 25-856 MEETING DATE: 10/28/2025 REQUEST FOR CITY COUNCIL/ HOUSING AUTHORITY ACTION SUBMITTED TO: Honorable Mayor and City Council Members / Honorable Chair and Board Members SUBMITTED BY: Travis Hopkins, City Manager VIA: Jennifer Villasenor, Director of Community Development PREPARED BY: Charles Kovac, Housing Manager Subject: Conduct a Tax and Equity Fiscal Responsibility Act (TEFRA) Public Hearing for the Pelican Harbor Apartments; Adopt Resolution No. 2025-65 Approving the Issuance of the California Municipal Finance Authority's (CMFA) Continued Issuance of Tax-exempt Bonds in an amount not to exceed $20,000,000 for the Pelican Harbor Apartments; and Approve Amendments to Affordable Housing Agreements - continued from the October 21, 2025, City Council/Public Financing Authority Meeting/Housing Authority Special Meeting Statement of Issue: Jamboree Housing Corporation, the developer of Pelican Harbor Apartments, is requesting that the City Council hold a Tax Equity and Fiscal Responsibility Act (TEFRA) public hearing and adopt a resolution required under federal regulations to maintain the tax-exempt status of previously issued bonds that helped finance the construction of the 43-unit permanent supportive housing community for formerly homeless seniors located at 18431 Beach Boulevard. This action is procedural. It does not authorize any new bonds or financing, nor does it create any financial obligation or liability for the City. Holding this hearing is a federal requirement necessary for the long-term conversion of a portion of the previously issued tax-exempt bonds from construction to permanent financing. In exchange for hosting the TEFRA hearing, the City has secured stronger affordability protections and more favorable loan repayment terms. Financial Impact: This action does not create any new financial obligation for the City. In fact, the City will receive several long-term benefits negotiated with the developer: • The original 60-year affordability term will be extended to 99 years. • The developer will pay the City $5,000 per year for 99 years, generating $495,000 in funding City of Huntington Beach Page 1 of 4 Printed on 10/23/2025 powered by LegistarTM' File#: 25-856 MEETING DATE: 10/28/2025 for future housing or homelessness prevention activities. • Interest rates on. the City's HOME and Inclusionary Loans will increase from 3% to 5% beginning in.year 20, resulting in approximately $4.9 million in,increased payments to the City over the extended life of the loans. Recommended Action: A) Conduct the TEFRA public hearing pursuant to federal law. B) Adopt.Resolution No. 2025-65, "A Resolution of the City Council of the City of Huntington Beach Approving the Issuance of the California Municipal Finance Authority Exempt Facility: Bonds in an Aggregate Principal Amount Not to Exceed $20,000,000 for the Purpose of Refinancing the Acquisition, Construction, Improvement and Equipping of Pelican Harbor (Formerly Referred to as Huntington Beach Senior Housing) and Certain Other Matters Relating Thereto" (Attachment 1). C)Adopt First Amendment to Affordable Housing Agreement (Attachment 2). D) Adopt First Amendment to Amended and Restated Agreement Containing Covenants (Attachment 3). E) Adopt First Amendment to City HOME Promissory Note (Attachment 4). F) Adopt First Amendment to City Inclusionary Housing Promissory Note (Attachment 5). G) Authorize the City Manager and Housing Authority Executive Director, or their designees, to execute the above documents. • Alternative Action(s): Do not approve- the proposed TEFRA hearing or amendments. This would create financing uncertainty for the completed project and increase the risk of loan default or future foreclosure. Analysis: Background Pelican Harbor Apartments is a 43-unit permanent supportive housing development located at 18431 Beach Boulevard. Completed in December 2024 and fully occupied as of January 2025, the project serves .one of the most vulnerable populations in Huntington Beach - formerly homeless seniors, many of whom face significant health and mobility challenges. The project includes on-site case management and supportive services funded through long-term contracts with the.County.of Orange. The City contributed a total of$3,127,036 in loan funds to support the project: • $2,830,697 from the federal HOME Investment Partnerships Program (HOME Loan), and • $296,339 from local Inclusionary Housing funds (Inclusionary Loan). These residual receipts loans are subordinate to the senior debt and carry a 3% simple interest rate City of Huntington Beach Page 2 of 4 Printed on 10/23/2025 powered by LegistarT"" File #: 25-856 MEETING DATE: 10/28/2025 during the initial 20 years. The project was developed by Jamboree Housing Corporation, a nonprofit affordable housing developer, with additional funding from multiple federal and state sources including Orange County Mental Health Services Act funds, State of California No Place Like Home funds, and 4% Low- Income Housing Tax Credits. Tax-exempt bonds, issued by the California Municipal Finance Authority (CMFA), served primarily as the construction loan with a smaller portion retained for permanent financing. The City did not issue the bonds, is not the borrower, and has no liability for repayment. The bonds are the sole responsibility of the developer and will be repaid through a combination of tax credit equity and rental income. Purpose of the TEFRA Hearing Under federal tax law, certain types of tax-exempt bond financing require a public hearing before the bonds can be issued. This requirement, established by the Tax Equity and Fiscal Responsibility Act (TEFRA) of 1982, ensures transparency and provides an opportunity for public input. A TEFRA hearing must be held by the governing body of the jurisdiction where the project is located (in this case, the Huntington Beach City Council) even if that agency is,not issuing or backing the bonds. The original TEFRA. hearing for Pelican Harbor was held in December 2021 prior. to construction financing; however, that approval expired after three years. To comply with IRS regulations and allow the previously issued bonds to transition from temporary (construction) to long-term (permanent) financing, a new TEFRA hearing must be held by the City Council. This requirement does not reflect a new bond issuance, nor does it represent additional financing or cost to the City. It is a procedural step needed to maintain the tax-exempt status of the bonds already issued. If not completed, the bondholder could lose the ability to keep the bonds tax-exempt, which would create financing instability for the project and increase the risk of foreclosure. Community Benefits In exchange for hosting the TEFRA hearing, the City negotiated several enhancements to its existing loan agreements with Jamboree. These include: • Extending Affordability to 99 Years: The project will remain affordable to extremely and very low-income seniors for nearly a century, ensuring long-term community benefit. • New Annual Payment Obligation: Jamboree will make a $5,000 annual payment to the City for the next 99 years, providing an additional $495,000 in local revenue to support affordable housing and homelessness prevention programs. • Improved Loan Terms for the City: Beginning in year 20, the. interest rates on both City loans (the HOME loan and the Inclusionary Housing loan) will increase from 3% to 5%, boosting the future repayment amount owed to the City by nearly $5 million. These , benefits were not required as part of the original financing and represent a favorable renegotiation for the City. Importance of Council Action The Pelican Harbor Apartments have already been constructed, are fully occupied, and are providing City of Huntington Beach Page 3 of 4 Printed on 10/23/2025 powered by Legistar'TM File#: 25-856 MEETING DATE: 10/28/2025 critical housing and supportive services to formerly homeless seniors. This TEFRA hearing does not authorize any new development, alter the project in any way, or affect current tenants..It is strictly a procedural requirement to maintain the tax-exempt status of a portion of the project's financing. Without Council approval of the TEFRA hearing, the developer cannot convert the existing construction bonds to permanent financing. This would create long-term financial instability-for the project and increase the risk of default on the City's subordinate loans. By approving this action, the City Council reinforces its commitment to fiscal responsibility, supporting solutions..to reduce homelessness in the community, and protecting the City's investment - without taking on any new financial,risk or obligation. Environmental Status: Pursuant to .California Environmental Quality Act (CEQA) Guidelines Section 15194., affordable housing projects meeting specific criteria listed in'Section 15192.and 15194 of the CEQA Guidelines are exempt. The Project meets the criteria listed in the 'above-mentioned sections and is therefore exempt. . Strateqic Plan Goal: Non Applicable -Administrative Item For details, visit www.huntingtonbeachca.gov/strategicplan. - Attachment(s): 1. Resolution No. 2025-65, "Resolution of the City Council of the City of Huntington Beach Approving.the Issuance ofthe.California Municipal Finance Authority-Exempt Facility Bonds in an Aggregate Principal Amount not to exceed $20,000,000 for the purpose of Refinancing the Acquisition, Construction, Improvement and Equipping of Pelican Harbor (formerly referred to as Huntington Beach Senior Housing) and Certain Other Matters Relating Thereto" , 2. First.Amendment to Affordable Housing Agreement 3. First Amendment to Amended and Restated Agreement Containing Covenants 4. First Amendment to City HOME Promissory Note 5. First Amendment to City Inclusionary Housing Promissory Note 6. PowerPoint Presentation City of Huntington Beach ' Page 4 of 4 Printed on 10/23/2025 powered by LegistarTm City Council/Public Financing ACTION AGENDA October 28, 2025 Authority 4:00 PM -COUNCIL CHAMBERS CALL TO ORDER SPECIAL MEETINGS OF THE CITY COUNCIL/PUBLIC FINANCING AUTHORITY AND HOUSING AUTHORITY-4:00 PM ROLL CALL Twining, Kennedy, McKeon, Burns, Van Der Mark, Gruel, Williams-All Present PLEDGE OF ALLEGIANCE- Led by City Clerk Lisa Lane Barnes. ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS (Received After Agenda Distribution) Public Hearing#1 (20) PUBLIC HEARING 1. 25-856 Conduct a Tax and Equity Fiscal Responsibility Act (TEFRA) Public Hearing for the Pelican Harbor Apartments; Adopt Resolution No. 2025-65 Approving the Issuance of the California Municipal Finance Authority's (CMFA) Continued Issuance of Tax-exempt Bonds in an amount not to exceed $20,000,000 for the Pelican Harbor Apartments; and Approve Amendments to Affordable Housing Agreements - continued from the October 21, 2025, City Council/Public Financing Authority Meeting/Housing Authority Special Meeting Recommended Action: A) Conduct the TEFRA public hearing pursuant to federal law. B) Adopt Resolution No. 2025-65, "A Resolution of the City Council of the City of Huntington Beach Approving the Issuance of the California Municipal Finance Authority Exempt Facility Bonds in an Aggregate Principal Amount Not to Exceed $20,000,000 for the Purpose of Refinancing the Acquisition, Construction, Improvement and Equipping of Pelican Harbor (Formerly Referred to as Huntington Beach Senior Housing) and Certain Other Matters Relating Thereto" (Attachment 1). C) Adopt First Amendment to Affordable Housing Agreement (Attachment 2). Adopt First Amendment to Amended and Restated Agreement Containing Covenants (Attachment 3). E) Adopt First Amendment to City HOME Promissory Note (Attachment 4). Page 2 of 2 City Council/Public Financing ACTION AGENDA October 28, 2025 Authority F) Adopt First Amendment to City Inclusionary Housing Promissory Note (Attachment 5). G) Authorize the City Manager and Housing Authority Executive Director, or their designees, to execute the above documents. Speakers— 9 Supplemental Communications— 20 Approved as amended, 4-3(Kennedy, Burns, Williams— No) from 99 years to 60 years for affordability covenants. ADJOURNMENT—5:27 PM The next regularly scheduled meeting of the Huntington Beach City Council/Public Financing Authority is Tuesday, November 4, 2025, in the Civic Center Council Chambers,2000 Main Street, Huntington Beach, California. INTERNET ACCESS TO CITY COUNCIL/PUBLIC FINANCING AUTHORITY AGENDA AND STAFF REPORT MATERIAL IS AVAILABLE PRIOR TO CITY COUNCIL MEETINGS AT http://www.huntingtonbeachca.gov Page 3 of 2 RESOLUTION NO. 2025-65 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH APPROVING THE ISSUANCE OF THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY EXEMPT FACILITY BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $20,000,000 FOR THE PURPOSE OF REFINANCING THE ACQUISITION, CONSTRUCTION, IMPROVEMENT AND EQUIPPING OF PELICAN HARBOR (FORMERLY REFERRED TO AS HUNTINGTON BEACH SENIOR HOUSING) AND CERTAIN OTHER MATTERS RELATING THERETO WHEREAS,the California Municipal Finance Authority (the "Authority") executed and delivered its California Municipal Finance Authority Multifamily Housing Revenue Note (Huntington Beach Senior Housing) 2022 Series A (the "Prior Bonds") for the purpose of making a loan (the "Loan") to Beach Housing Partners LP, a California limited partnership (the "Borrower") a partnership of which Jamboree Housing Corporation (the "Developer") or a related person to the Developer is the general partner,to finance the acquisition, construction, improvement and equipping of a senior multifamily rental housing project generally known as Pelican Harbor(formerly referred to as Huntington Beach Senior Housing) located at 18431 Beach Boulevard, Huntington Beach, California(the "Project") which is owned by the Borrower; and The multifamily rental housing project has been fully constructed, and the Borrower is working with one or more lenders to make certain amendments to the terms of the Loan, which amendments and modifications will constitute a"reissuance" of the Prior Bonds for purposes of federal income taxation requiring a new public hearing and approval pursuant to Section 147 of the Internal Revenue Code of 1986 (the "Code"), which reissuance does not involve the incurrence by the Borrower of new debt; and To facilitate such reissuance for federal tax purposes, the Borrower has requested that the Authority adopt a plan of financing providing for the issuance of exempt facility bonds for a qualified residential rental project pursuant to Section 142(a)(7) of the Code in one or more series issued from time to time, including bonds issued to refund such exempt facility bonds in one or more series from time to time, and at no time to exceed$20,000,000 in aggregate principal amount (the "Bonds"), to refinance the acquisition, construction, improvement and equipping of the Project; and Pursuant to Section 147(f) of the Code,the issuance of the Bonds by the Authority must be approved by the City of Huntington Beach(the "City") because the Project is located within the territorial limits of the City; and The City Council of the City (the "City Council") is the elected legislative body of the City and is one of the "applicable elected representatives"required to approve the issuance of the Bonds under Section 147(f) of the Code; and 25-17050/391590 RESOLUTION NO. 2025-65 The Authority has requested that the City Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the "Agreement"), among certain local agencies, including the City; and Pursuant to Section 147(f) of the Code, following notice duly given, representatives of the Authority conducted a public hearing on behalf of the City Council regarding the issuance of the Bonds in compliance with the requirements of Section 147(f) of the Code and provided minutes of the hearing; and The City Council now desires to approve the issuance of the Bonds by the Authority, NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows: SECTION 1. The foregoing recitals are true and correct. SECTION 2. The City Council hereby approves the issuance of the Bonds by the Authority. It is the purpose and intent of the City Council that this resolution constitute approval of the issuance of the Bonds by the Authority, for the purposes of(a) Section 147(f) of the Code by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is located, in accordance with said Section 147(f) and (b) Section 4 of the Agreement. SECTION 3. The issuance of the Bonds shall be subject to the approval of the Authority of any financing documents or execution of amendments relating thereto to which the Authority is a party. The City shall have no responsibility or liability whatsoever with respect to the Bonds. SECTION 4. The adoption of this Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, construction,rehabilitation, installation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein. SECTION 5. The officers of the City are hereby authorized and directed,jointly and severally, to do any and all things and to execute and deliver any and all documents which they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this resolution and the financing transaction approved hereby. 2 RESOLUTION NO. 2025-65 SECTION 6. This resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a special meeting thereof held on the 28t'-day of October, 2025. Mayor REVIEWED AND APPROVED: INITIATED AND APPROVED: City Manager Director of Community Development APPROVED AS TO FORM: City tto ey 3 Res. No. 2025-65 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, LISA LANE BARNES, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a special meeting thereof held on October 28, 2025, by the following vote: AYES: Twining, McKeon, Van Der Mark, Gruel NOES: Kennedy, Burns, Williams ABSENT: None ABSTAIN: None 44-1,441e.AKI114' Cit Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California FIRST AMENDMENT TO RESIDUAL RECEIPTS PROMISSORY NOTE SECURED BY DEED OF TRUST TO THE CITY OF HUNTINGTON BEACH,CALIFORNIA This FIRST AMENDMENT TO RESIDUAL RECEIPTS PROMISSORY NOTE SECURED BY DEED OF TRUST TO THE CITY OF HUNTINGTON BEACH ("First Amendment No. 1").is made and entered into as of October 28 ,2025 ("Effective Date") by and between BEACH HOUSING PARTNERS LP, a California limited partnership ("Borrower"), and CITY OF HUNTINGTON BEACH,a municipal corporation of the state of California ("City"). RECITALS: The following Recitals are a substantive part of this First Amendment. Capitalized terms used in these Recitals and not otherwise defined shall have the meaning set forth in the Agreement(defined below). A. On or.about January 5, 2021, City, the Huntington Beach Housing Authority, and Borrower entered into that certain Affordable Housing Agreement (the "Agreement"), pursuant to which, among other things,City provided certain financial assistance to Borrower to assist Borrower to construct a forty-three (43) unit senior affordable housing development known as "Pelican Harbor" (the "Project"), on certain real property located at 1.8431 Beach Boulevard, in the City of Huntington Beach, State of California, B. At the Closing,Borrower executed that certain Residual Receipts Promissory Note Secured by Deed of Trust to the City of Huntington Beach, California, dated February 1,2022,to evidence and set forth the repayment terms of the Inclusionaiy Loan(the"InclusionaryNote"). C. Borrower completed construction of the Project on November 26,, 2024, as evidenced by City's issuance of a certificate of occupancy, and is pursuing Conversion. D. Borrower's construction and permanent financing are funded 'with proceeds of mortgage revenue bonds issued by the California Municipal Finance Authority, and thereafter loaned to Borrower by U.S. Bank National Association, as "Funding Lender." The original TEFRA hearing authorizing issuance of the bonds has expired, resulting in the need for a new TEFRA hearing to be held by City. E. • • City has agreed to hold the TEFRA hearing provided Borrower agree to certain changes to the terms of the City and Authority loan documents, as further set forth herein and in certain amendments to the Agreement, Amended and Restated Covenants, and the HOME Note, all of which amendments are to be entered into concurrently herewith. AGREEMENT: NOW,THEREFORE,City and Owner hereby agree as follows: 1. • The Inclusionaiy Note is hereby amended to provide that commencing in the twentieth (20th)year following the year in which the Occupancy Date occurs,the Inclusionaiy 882/020587-0153 22709602.2 49/08/25 Note shall accrue simple interest at the rate of five percent(5%)per annum on the principal amount outstanding.. 2. The Inclusionary Note is hereby amended to change the"Maturity Date"to the sixtieth.(60th) anniversary of the Occupancy Date (i.e.,November 26,2084). 3. Except as expressly modified by this First Amendment,all of the provisions of the Inclusionary Note remain in full force and effect and shall govern the relationship of the Parties. 4. . . This.First Amendment may be,executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. 1/4 [End—Signature Page Follows] 882/020587-0153 22709602.2 al0/29/25 -2- IN WITNESS WHEREOF, City and Owner each hereby represents that it has read this First Amendment, understands it, and hereby executes this First Amendment to be effective as of the day and year first written above. "CITY" CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California B—Travis Hopkins City Manager ATTEST: &YLBy:�� Lisa Lane Barnes, City Clerk APPROVED AS TO FORM: Pt, D `- 1°'Michael J. Vigliotta, City Attorney "AUTHORITY" HUNTINGTON BEACH HOUSING AUTHORITY, a public body, corporate and politic 7 cHopkins� Travis Executive Director ATTEST: By: 'y, vilt � . Lisa Lane arnes, Authority Secretary APPROVED AS TO FORM: "Michael J. Vigliotta Authority Counsel 882/020587-0153 22709602.2 a09/24/25 -3_ "OWNER" BEACH HOUSING PARTNERS LP, a California limited partnership By: JHC-Beach LLC, a California limited liability company its Managing General Partner By: Jamboree Housing Corporation, a California nonprofit public benefit corpora ion it ana er By: IL Name: Michael Massie Title: Executive Vice President and Chief Development Officer 882/020587-0153 22709602.2 a09/08/25 -4- Note shall accrue simple interest at the rate of five percent(5%)per annum on the princi al amount outstanding. 2. The Inclusionary Note is hereby amended to change the, aturity Date"to the ninety-ninth (99th) anniversary of the Occupancy Date (i.e.,November 26, 2123). 3. Except as expressly modified by this First Amend .ent, all of the provisions of the Inclusionary Note remain in full force and effect and shall go ern the relationship of the Parties. 4. This First Amendment may be executed/in several counterparts, each of which shall be an original and all of which shall constitute bone and the same instrument. [End— Signature Page Follows] 882/0 0587-0153 227 9602.2 a09/08/25 -2_ FIRST AMENDMENT TO RESIDUAL RECEIPTS PROMISSORY NOTE SECURED BY DEED OF TRUST TO THE.CITY OF HUNTINGTON BEACH, CALIFORNIA This .FIRST AMENDMENT TO RESIDUAL RECEIPTS PROMISSORY NOTE SECURED BY DEED OF TRUST TO THE CITY OF HUNTINGTON BEACH ("First Amendment No. 1") is made and entered into as of October 28 ,2025 ("Effective Date")by and between BEACH HOUSING PARTNERS LP,a California limited partnership ("Borrower"), and CITY OF HUNTINGTON BEACH, a municipal corporation of the state of California("City"). RECITALS: The following Recitals are a substantive part of this First.Amendment. Capitalized terms used in these Recitals and not otherwise defined shall have the meaning set forth in the Agreement(defined below). . . A. On or about January 5, 2021, City, the Huntington Beach Housing Authority, and Borrower entered into that certain Affordable Housing Agreement (the "Agreement"), pursuant to which, among other things, City provided certain financial assistance to Borrower to assist Borrower to construct a forty-three (43) unit senior affordable housing development known as "Pelican Harbor" (the "Project"), on certain real property located at 18431 Beach Boulevard, in the City of Huntington Beach, State of California. B. At the Closing,Borrower executed that certain Residual Receipts Promissory Note Secured by Deed of Trust to the City of Huntington Beach, California, dated February 1,2022,to evidence and set forth the repayment terms of the HOME Loan (the"HOME Note"). C. Borrower has completed construction of the Project, and is pursuing Conversion. D. Borrower's construction and permanent financing are funded with proceeds of mortgage revenue bonds issued by the California Municipal Finance Authority, and thereafter loaned to Borrower by U.S. Bank National Association, as "Funding'Lender." The original TEFRA hearing authorizing issuance of the bonds has expired, resulting in the need for a new TEFRA hearing to be held by City. E. City has agreed to hold the TEFRA hearing provided Borrower agree to certain changes to the terms of the City and Authority loan documents, as further set forth herein and in certain amendments to the Agreement, Amended and Restated Covenants, and the Inclusionary Note, all of which amendments are to be entered into concurrently herewith. AGREEMENT: NOW,THEREFORE, City and Owner hereby agree as follows: 1. The HOME Note is hereby amended to provide that commencing in the twentieth (20t1') year following the year in which the Occupancy Date occurs, the HOME Note 882/020587-0153 22705364.2 a09/08/25 shall accrue simple interest at the rate of five percent (5%) per annum on the principal amount outstanding. 2. The HOME.Note is hereby amended to change the "Maturity Date" to the sixtieth(60th)anniversary of the Occupancy Date (i.e.,November 26, 2084). 3. Except as expressly modified by this First Amendment,all of the provisions of the HOME Note remain in full force and effect and shall govern the relationship of the Parties. 4. . This First Amendment may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. [End—Signature Page Follows] 882/020587-0153 22705364.2 a10/29/25 -2- IN WITNESS WHEREOF, City and Owner each hereby represents that it has read this First Amendment, understands it, and hereby executes this First Amendment to be effective as of the day and year first written above. "CITY" CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California By: -------1 ---._.----. (Travis Hopkins City Manager ATTES : By Lisa Lane Barnes, City Clerk APPROVED AS TO FORM: ,Michael J. Vigliotta, City Attorney "AUTHORITY" HUNTINGTON BEACH HOUSING AUTHORITY, a public body, corporate and politic y: ravis Hopkins Executive Director ATTEST• jetli By: X Lisa Lane Barnes, Authority Secretary APPROVED AS TO FORM: ft'Michael J. Vigliotta Authority Counsel • 882/020587-0153 22705364.2 609/24/25 -3_ "OWNER" BEACH HOUSING PARTNERS LP, a California limited partnership By: JHC-Beach LLC, a California limited liability company its Managing General Partner By: Jamboree Housing Corporation, a California nonprofit public benefit corporate n, it nag r By: �.." Name: Michael Massie Title: Executive Vice President and Chief Development Officer 882/020587-0153 22705364.2 609/08/25 -4- shall accrue simple interest at the rate of five percent (5%) per annum on the princip�almount outstanding. r i f 2. The HOME Note is hereby amended to change the "Maturity Date" to the ninety-ninth (99th) anniversary of the Occupancy Date. 3. Except as expressly modified by this First Amendment, all of the provisions of the HOME Note remain in full force and effect and shall govern the relationship of the Parties. 4. This First Amendment may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one/and the same instrument. [End—Signature Page Follo s" 882/020587-0153 22705364.2 a09/08/25 -2- FIRST AMENDMENT TO AFFORDABLE HOUSING AGREEMENT (18431 Beach Boulevard) THIS FIRST AMENDMENT TO AFFORDABLE HOUSING AGREEMENT (this "First Amendment") dated for identification purposes only as of Oct:-:28 :, 2025, is made and entered into by and among THE.CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California("City"), THE HUNTINGTON BEACH HOUSING AUTHORITY, a public body,corporate and politic("Authority"), and BEACH HOUSING PARTNERS LP, a California limited partnership ("Owner")with reference to the following: RECITALS The following Recitals are a substantive part of this First Amendment. Capitalized terms used in these Recitals and not otherwise defined shall have the meaning set forth in the Agreement (defined below). A. On or about January 5, 2021, City, Authority and Owner entered into that certain Affordable Housing Agreement(the"Agreement"), pursuant to which, among other things, City provided certain financial assistance-to Owner to assist Owner to construct a forty-three (43)unit senior affordable housing development known as"Pelican Harbor"(the"Project"),on certain real property located at 18431 Beach Boulevard, in the City of Huntington Beach, State of California. B. Owner completed construction of the Project on November 26,2024, as evidenced by City's issuance of a certificate of occupancy, and is pursuing Conversion: C. Owner's construction and permanent financing are funded with proceeds of mortgage revenue bonds issued by the California Municipal Finance Authority, and thereafter . loaned to Owner by U.S. Bank National Association, as"Funding Lender." The original TEFRA hearing authorizing issuance of the bonds has expired, resulting in the need for a new TEFRA hearing to be held by City. D. City has agreed to hold the TEFRA hearing provided Owner agree to certain changes to the terms of the City and Authority loan documents, as further set forth herein and in certain amendments to the Amended and Restated Covenants, the HOME Note, and the Inclusionary Note; all of which amendments are to be entered into concurrently herewith. AGREEMENT:NOW,THEREFORE, City, Authority and Owner hereby agree as follows: 1. The.Agreement is hereby amended to provide that in addition to any other payments required to be made by Owner pursuant to the Agreement and/or pursuant to any of the other City or Authority loan documents, commencing in 2026, Owner shall annually pay to City on each July 1 during the term of Amended and Restated Covenants, as amended; a fee in the 8E2/020587-0153 22702593.6 a09/09/25 amount of Five Thousand Dollars ($5,000) to be utilized by City for housing or homelessness prevention activities. 2. Except as expressly modified by this First Amendment,all of the provisions of the Agreement remain in full force and effect and shall govern the relationship of the Parties. 3. This First Amendment may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. [SIGNATURES ON NEXT PAGE] 882/020587-0153 22702593.6 a09/09/25 -2- IN WITNESS WHEREOF, City, Authority and Owner have signed this First Amendment as of the date set forth above. "CITY" CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California By: ravis Hopkins City Manager ATTEST: Lisa Lane Barnes, City Clerk��_ APPROVEDP AS TO FORM: t✓A- �G F'`' Michael J. Vigliotta, City Attorney "AUTHORITY" HUNTINGTON BEACH HOUSING AUTHORITY, a public body, corporate and politic By Travis Hopkins Executive Director ATTEST: By: / trn�� Lisa Lane :arnes,Authority Secretary APPROVED AS TO FORM: In- Michael J. Vigliotta Authority Counsel 882/020587-0153 22702593.6 a09/24/25 -3- "OWNER" BEACH HOUSING PARTNERS LP, a California limited partnership By: JHC-Beach LLC, a California limited liability company its Managing General Partner By: Jamboree Housing Corporation, a California nonprofit public benefit corporation, 'ts n er r By: Name: Michael Massie Title: Executive Vice President and Chief Development Officer 882/020587.0I53 22702593.6 a09/09/25 -4- RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: THE CITY OF HUNTINGTON BEACH 2000 Main Street Huntington Beach, CA 92648 Attn: City Manager SPACE ABOVE THIS LINE FOR RECORDER'S USE APN: 159-031-18 FREE RE RDING REQUESTED ov't Code Section 27383) FIRST AMENDMENT TO AMENDED A► I RESTATED AGREEMENT CONTAINING C ENANTS (INCLUDING RENTAL RES ' CTIONS) (18431 Beach Boul- •ard) THIS FIRST AMENDMENT TO AME► I ED AND RESTATED AGREEMENT CONTAINING COVENANTS (INCLUDIN RENTAL RESTRICTIONS) (the "First Amendment") dated as of 20 5, is entered into by and between BEACH HOUSING PARTNERS LP,a California li • ed partnership("Owner"),THE HUNTINGTON BEACH HOUSING AUTHORITY, a p •lic body, corporate and politic ("Authority"), and THE CITY OF HUNTINGTON BEA' , a municipal corporation of the State of California ("City"). RECITALS The following Recitals a - a substantive part of this First Amendment. Capitalized terms used in these Recitals and not • erwise defined shall have the meaning set forth in the Agreement (defined below). A. On or abut January 5, 2021, City, Authority and Owner entered into that certain Affordable Housing • greement (the "Affordable Housing Agreement"), pursuant to which, among other things City provided certain financial assistance to Owner to assist Owner to construct a forty-t ee(43)unit senior affordable housing development known as"Pelican Harbor" (the "Project"), en certain real property located at 18431 Beach Boulevard, in the City of Huntington Be. h, State of California. B. At the original Closing (as defined in the Affordable Housing Agreement), City, Authority d Owner entered into that certain Amended and Restated Agreement Containing Coven. (Including Rental Restrictions, dated February 1, 2022, which was recorded on Febru. 4, 2022 in the Official Records of Orange County as Instrument No. 2022000048870 (the"-• greement"). 8: /020587-0153 709557.2 a09/08/25 NO ACTION TAKEN I C. Owner completed construction of the Project on November 26, 2024, as evidenced by City's issuance of a certificate of occupancy, and is pursuing Conversion (as defined,iri the Affordable Housing Agreement). D. Owner's construction and permanent financing are funded with,/proceeds of mortgage revenue bonds issued by the California Municipal Finance Authority/and thereafter loaned to Owner by U.S. Bank National Association, as "Funding Lender." The/original TEFRA hearing authorizing issuance of the bonds has expired, resulting in the need/for a new TEFRA hearing to be held by City. // E. City has agreed to hold the TEFRA hearing provided/Owner agree to certain changes to the terms of the City and Authority loan documents, as further set forth herein and in certain amendments to the Affordable Housing Agreement, "HOME Note" (as defined in the Affordable Housing Agreement), and the "Inclusionary Not' (as defined in the Affordable Housing Agreement), all of which amendments are to be entered into concurrently herewith. A_GREEMENT>. NOW, THEREFORE, City, Authority and O n r hereby agree as follows: 1. The Agreement is hereby amended to change the "Term" thereof to the period commencing on date City issued a certificate of occupancy for the Project and ending ninety-nine (99) years thereafter (i.e., on No7nber 26, 2123). 2. Except as expressly modified by this First Amendment,all of the provisions of the Agreement remain in full force and/effect and shall govern the relationship of the Parties. 3. This First Amendment may be executed in several counterparts, each of which shall be an original and all of/which shall constitute but one and the same instrument. (End— Signature Page Follows] 882/020587-0153 22709557.2 a09/08/25 -2- `, IN WITNESS WHEREOF, City, Owner and Authority have entered irlto this First Amendment as of the date set forth above. "CITY" "OWNER" CITY OF HUNTINGTON BEACH BEACH HOUSING PARTNERS LP a California limited partnership By: Travis Hopkins By: JHC-Beach LLC,a California limited City Manager liability company Its: Managing General Partner ATTEST: By: /Jamboree Housing Corporation, By: a California nonprofit public Lisa Lane Barnes,City Clerk benefit corporation APPROVED AS TO FORM: It//s: Man gec K___:_,...) / fs,,,. Michael J. Vigliotta Michael Massie City Attorney Executive Vice President and Chief Development Officer "AUTHORITY" HUNTINGTON BEACH HOUSING AUTHORITY, a public body corporate and politic By: Travis Hopkins Executive Director ATTEST: / / By: Lisa Lane Barnes/Authority Secretary APPROVED AS 7 FORM: ,By: C-A- h Mic cI J. Vigliotta Authority Counsel r • 882/020587-0153 22709557.2 a09/24/25 -3- A Notary Public or other officer completing this certificate verifies only the identity the individual who signed the document to which this certificate is attached, and not the tut, lness, accuracy, or validity of that document. State of California ) —County of O y Yl ) On I w)s- 10111 '' , before me, A101591.A.Y sert me an, itle of the officer) Notary Public, personally appeared M\( h&i l M Og41 who proved to me on the basis of satisfactory evidence to be the per:en(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that •e/she/they executed the same in his/her/their authorized capacity(ies),and that by his/her/their 'gnature(s)on the instrument the person(s), or the entity upon behalf of which the person(s) acte,, executed the instrument. I certify under PENALTY OF PERJURY under th- aws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature OAJ\k— (Seal) ABIGAIL MUSS V444' ) COMM.*2527809Nary PubHo.Caltfomia ORANGE COUNTY'n;.a tr Comm.&Aires by 21,2029 882/020587-0153 22709557.2 a09/08/25 A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of ) '` On , before me, (insert name andrtitle of the officer) Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the persons) whose name(s) is/are subscribed to the within instrument and acknowledged to me that;lie/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their,,signature(s)on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) 882/020587-0153 22709557.2 a09/08/25 Exhibit"A" f LEGAL DESCRIPTION REAL PROPERTY IN THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: PARCEL 2, IN THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 76, PAGE 4 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. / r APN: 159-031-18 f F f� / f / / / I f 882/020587-0153 Exhibit"A" 22709557.2 a09/08/25 From: Michele Burgess To: suoplementalcomm(@surfcity-hb.orq Subject: Comments for Agenda Item 1,File 25-856,City Council meeting 10/28/2025 Date: Friday,October 24,2025 2:06:09 PM I was at the City Council meeting on October 21, 2025, and witnessed an appalling lack of respect and civility toward the representatives from Jamboree Housing Corporation by Mayor Pat Burns and Councilmembers Don Kennedy and Chad Williams. Jamboree has a stellar reputation in the affordable housing industry.Pelican Harbor,now completed and fully occupied,is their third project with Huntington Beach;the others are Oakview(2007)and Emerald Cove(2011). During their 35 years as a nonprofit entity,their developments have won many awards,including two for Pelican Harbor.Maybe all councilmembers should have done their homework and at least looked at the Jamboree website before publicly berating their representatives and doubting their financial position and honesty.Grilling them like suspects at an interrogation,accusatory,argumentative,casting aspersions on their efficiency and credibility, interrupting their answers,talking over them—rude and completely unnecessary. Jamboree worked for several months with city staff to arrive at three acceptable changes to the previous fixed contract,yet Councilmember Williams tried to shake them down for even more.This is a nonprofit,for heaven's sake,working with the city to help solve the homeless problem and offer low-income seniors a dignified place to live.Take a look at their press release for the March 2025 grand opening of Pelican Harbor. "Seniors face struggles in finding affordable housing more than any other segment of our society,"said Orange County Supervisor Janet Nguyen."I'm excited to see Pelican Harbor dedicating homes to low-income seniors so they can continue to live in the community they love." You can't get blood from a turnip,so quit trying to strong-arm a nonprofit under the guise of fiscal responsibility.If you care so much about our tax dollars,stop giving millions to Code 4 and wasting millions more on special elections and never-ending legal fights.And charge the Patriot Academy the going rate for renting space at the library instead of giving it to them for free. I would hope that you will stop berating our valuable partners and try to act like responsible adults rather than petty, whining bullies.Your behavior at the previous meeting was downright embarrassing. Michele Burgess HB resident since 1961 • SUPPLEMENTAL COMMUNICATION Meeting Date: i 0/78/75 Agenda Item No. 1 25-856) From: Shirlee Krause To: citycouncil(o surfcity.-hb.orq;suooIementalcomm(asurfcity-hb.orq Subject: Support for Item 25-856 Date: Friday,October 24,2025 3:52:15 PM You don't often get email from shirleekrause@yahoo.cor. earn why this is important Good Afternoon, My name is Shirlee A. Krause and I am a Huntington Beach Resident of 25 years. I support: Item 25-856, a continuation of Item #10 from the earlier October meeting. Shirlee A. Krause shirleekrause@yahoo.com ................................. Virus-free.www.avast.corn From: M3 Baretich To: suoolementalcommPsurfcity-hb.orq Subject: ITEM 25-856 Date: Friday,October 24,2025 7:04:42 PM You don't often get email from mjbaretich@hotmail,com.Learn why this is important I support Item 25-856, a continuation of Item #10 from the October 21st City Council meeting. Mary Jo Baretich From: Patricia Larkin To: supplementalcommColsurfcity-hb.or o Subject: Input from resident Patricia Larkin Date: Saturday,October 25,2025 11:30:20 AM You don't often get email from patglarkin@gmail.corn.Learn why this is important ..� .,.v....a.w.........,.w.....«.......r._......................,.x....a...,.w.._...w.w,....._...._..........�..._..._.........:.._....__•__............`....................,...._._...�........_.......�........:.................�......e..,.....r_..._ .u,.�a..........,.. ,. ......+..,,i I support Item#25-856, a continuation of Item#10 from the earlier October meeting. Thank You From ®t C.zn - — Tat mnb�,utaka ann.r,0-hypm Subject Yo�Yes an Contln d Sem 1025.856 Oats. Saturday,OM.25,20251:2.00%I Dear Mayor Burns and City Council, Please vote YES on the continued Agenda Item#1 25-856. I want to thank Mayor Pro Tem,Mckeon,and Council Members Ruining and Van Der Mark for ths opposition to move last Tuesday's agenda item 6 10 to a special meeting to next Tuesday,October 28,2025. Thank you for being reasonable and understandtua what the task before you. I particularly appreciated Mayor Pro Tem McKeon sharing the history of the property. I did not lr f v that the property was undevelopable as a market rate project.This provided some context for this property. And much thanks to Council Members Twining and Van Der Mark for their comments that the site is fully developed and operational with 43 very low and extremely low income seniors living there! Pelican Harbor joins the inventory of affordable housing units in Huntington Beach. We should bc?ery proud of having this type of housing in our city.It was all developed under the control of our Planning and Community Development Department,Planning:,?mmission,and City Council. Below is a letter I submitted to the Daily Pilot regarding the council's deliberation on the Pelican Harbor debt conversion. As you continue discussions and make decisions on housing,I hope we can all remember that eve>resident takes pride in their home and community,and that everyone deserves a safe place to lay their head at night. - - Pat Goodman _Huntington Beach,CA Dear Editor, . Thank you to Matt Szabo for an excellent summary of last Tuesday's Huntington Beach City Council agenda item on the Pelican Harbor senior apartments (°Huntington Beach Council to hold special meeting Tuesday on loan for senior apartments,'Oct.ad,2025). Affordable housing finance is complex.These projects combine multiple funding sources—tax crerits,tax-exempt bonds,public grants from city,county,and state agencies,and private donations.Each source carries its own reporting and compliance requirements.It's not like buying a home with a down payment and mortgage. Unfortunately,the council discussion became a de facto study session that exposed a lack of understanding by some members who voted to delay what was purely a procedural item—converting construction bonds to permanent financing now that the project is complete and fully occupied. Meeting the housing needs of residents is one of the city council's core responsibilities.The Pelican 1-larbor development is a success the council should celebrate:a well-designed,well-located community serving low-income seniors and residents with disabilities. 1 `I Earlier this year,the council promoted budget education for the public.Now would be a good tire&fr town halls on housing—to build understanding of how these projects work and why they matter.Housing policy deserves thoughtful discussion,not campaign--,igans like°No High-Density Housing.' Pat Goodman - Huntington Beach -- • • • • _=1 From: . To: supplementalcommta surfcity-hb.orq Subject: Public Comment Item 1,Tuesday,October 28,2025 Date: Sunday,October 26,2025 5:43:46 AM 1 You don't often get email from gorba681t1@gmaii.com.I earn why this is important , Public Comment Item 1 GrUBe Stadtrat, Item 1 . I am writing in support of this major project & all procedures pertaining to this project. This city council has instead chosen to not follow a path of agricultural reclamation. Furthermore, I denounce the history & dark reality of growing up in the neighborhoods of Northwest Huntington Beach, in which white supremacists carry out plots against children & young people. This is a real thing that happens. Finally, I denounce the continued usage of masks & the republican party for enabling masks. I do not give permission for the city clerk & city council to display my email address. Please stop displaying my email address. Sincerely, "Crynyd" Pickens, Northwest Huntington Beach, California From: Linda Rose To: suoplementalcomm ansurfcity-hb.orq Subject: Agenda 12-856 Date: Sunday,October 26,2025 3:23:14 PM You don't often get email from lriindarose3@gmaii.com.Learn why this is important •• City council,I support the above item. Linda Rose 19691 Seacliff Lane 92648 resident 40 years From: Elizabeth SanFilippo To: CITY COUNCIL(INCL.CMO STAFF);supplementalcomm(@surfcity-hb.orq Subject: Item 10--Affordable Housing for Seniors Date: Sunday,October 26,2025 3:58:43 PM Please support Item 10 for bonds for affordable senior housing in Huntington Beach. Thank you, Elizabeth San Filippo From: Ann Hernandez To: CITY COUNCIL(INCL.CMO STAFFI;supplementalcommasurfcity-hb.orq Subject: I urge you to vote YES on Agenda Item 25-856 Date: Sunday,October 26,2025 4:26:49 PM You don't often get email from annkhern©gmail.com.t earn why this is important Senior citizens in Huntington Beach deserve to have affordable housing. Be decent and vote YES. Ann Hernandez HB resident(homeowner) since 1988 Switzer, Donna From:. Gina Alexander <gina911.ca@gmail.com> Sent: Sunday,October 26,2025 5:03 PM To:. supplementalcomm@surfcity=hb.org Subject: Tues meeting 11 You don't often get email from gina911.ca@gmail.com.Learn why this is important ;sl,:su,pport item.25-856,.continuation item##10"from the earlrer October.meeting • .Thank:you, • Gins ler a ik � rider. ,. 1 4 From: Michelle Kerns To: CITY COUNCIL(INCL.CMO STAFF);supplementalcomm(@surfcity-hb.orq Subject: Agenda Item 25-856,a continuation of Item#10 from 10/10/25 meeting Date: Sunday,October 26,2025 8:29:13 PM i You don't often get email from mkerns1230@gmail.com.learn why this is important . Dear Mayor Burns and Huntington Beach City Council, Thank you for your continued commitment to protect the citizens of Huntington Beach and for your tireless efforts serving our city as council members. I am writing in response to Agenda Item 25-856 The Jamboree Housing Bond issue as it relates to Pelican Harbor Senior Apartments. Fact- This item was previously approved by our City, and while it may not have been under your reign, let us remember that we work together for the benefit of all our residents -housed and unhoused. Fact- There is no viable fiscally responsible evidence to not approve this and move it forward, as the cost analysis of tax dollar expenditures on Mousing the homeless versus paying exorbitant cyclical first responder fees,police and fire time and resources taken away from urgent calls and unfathomable hospital expenses and Medicare/MediCal costs for these same individuals once un-housed and back on our streets, does not begin to make financial sense for our city. Fact-The role of a City is to provide for the welfare of its residents,this includes street and sewer maintenance,refuse and water, utilities,pudic schooling, and the safety and security of all who dwell in it. I've heard it said that many d? not enjoy paying taxes that contribute to the public school system, due to their children attending private or charter schools, but this taxation system is not a "pay as you use it" systen ; it is a general contribution by all for all. This same mentality needs to be applied to the "Dousing First Model". One way or another, the tax dollars will be spent on affordable housing...NOW the question we need to be asking is, "Do we want to contribute to the benefit of thee individuals and encourage a healthier society for all, or do we want to contribute to their detriment and demise by displacing them and starting the vicious homeless cycle all over again?" Fact- We can work together and come to the table as ladies and gentlemen, as residents, city council and organizations who have a collaboratite goal of keeping Huntington Beach the best coastal city in the county. We have a solid foundtion, built on the cornerstone of those who have served before us and on the principles and precepts from the Almighty. Let us press on to win the race for which we have been called, and not let unnecessary arguments turn into political gangrene, thereby impeding our progres . United we stand-Divided we fall - I stand before you as a citizen who has taken an active role in supporting my city by personally opening my door to the unhoused, and I testify under oath that I have seen nothing short of a miracle, twelve persons successfully housed since April 2021, 100% success rate! I'm doing my part and I support you as you weigh these choices - and I pray you make the right choice. I urge you to pass this special agenda item and continue your good works! Most respectfully, Michelle Kerns HB Resident of 25 years 562.569.1772 From: )avaivosy t To: suoolementalcomm(a surfcity-hb.orq Subject: Item 25-856 Date: Sunday,October 26,2025 9:10:07 PM ii • You don't often get email from javajypsy1@hotmaii.com.Learn why this is important I support item 25-856, a continuation from item number 10 from the earlier October meeting. From: barry kielsmeier To: CITY COUNCIL(INCL.CMO STAFF);suonlementalcommCa)surfcity-hb.orq Subject: Pelican Harbor Item 25-856 Date: Monday,October 27,2025 7:57:33 AM [You don't often get email from barry.dbk@gmail.com.Learn why this is important at https://aka.ms/LearnAboutSenderldentification Dear Mayor and Council, Please approve the actions needed to permanently fund Pelican Harbor. SECURITY DEPOSITS As you may know I represent Beach Cities Interfaith Cities,the Huntington Beach nonprofit group that provided all of the security deposits for residents.No public money was used for our donation. BCIS devotes nearly all of its resources to homeless prevention in cooperation with local churches and nonprofits. We believe strongly that people should be self sufficient and we work toward that end.We believe in pulling yourself up by your bootstraps. However the homeless and disabled seniors in Pelican Harbor are in a different category altogether.Put another way,they have not got bootstraps to pull up.Hence,we provided the security deposits. It was the right thing to do for the City's homeless and disabled seniors. INACTION COSTS TAXPAYERS—PLEASE ACT It is a mistake to think that inaction or delay on this item helps local taxpayers in any way.A UCI study completed in 2017 showed that the average cost of each homeless person was$45,000 in Orange County.About 40%of that was borne by municipalities,and that cost is far higher now. Homelessness is very expensive for cities,including Huntington Beach and its taxpayers. About half of city residents in the project were formerly housed in the Navigation Center with the balance on the city streets or elsewhere. Providing them with a permanent home is both the compassionate and fiscally responsible thing to do. THE TRANSACTION'S ADVANTAGES I am on vacation,and so do not have access to all documents. However I understand that the document extends the term of affordability and the interest rate. Given the downside of inaction and potential costs,that seems reasonable. CONCLUSION Please approve the item. Sincerely Ban),Kielsmeier,President Beach Cities Interfaith Services From: Carol D. To: CITY COUNCIL(INCL.CMO STAFF);supplementalcomm(@surfcity-hb.orq Subject: Agenda Item 25-856-In Support of item Date: Monday,October 27,2025 8:10:43 AM Dear Council Members, I am unable to attend the special 4 PM City Council meeting tomorrow for the continuation of the October 21st discussion/vote on Agenda Item 25-856. I am in favor of passage of this item which would authorize issuing the tax-exempt construction bonds for our seniors'Pelican Harbor Apartments. Huntington Beach is experiencing a rapidly growing aging population and seniors need a place to live. Many seniors on my street tell me that they're worried because they'd like to sell their homes and move into smaller, more affordable homes in HB but nothing exists. I personally discovered this problem several years ago when I tried to find an affordable home for my mother. She moved here from St. Louis and would have loved to live in Huntington Beach, but there were no viable options--unlike in communities like Irvine,Mission Viejo and other South Orange County communities. Please vote YES to protect the future of this small community for seniors. As Mayor Pro Tern Casey McKeon (a real estate developer) acknowledged in the meeting last week,the small piece of property on Beach Blvd. is not well-suited for private/commercial development. I worry that your decision will end up displacing 43 senior residents who have made their homes at Pelican Harbor. In addition, I hope at tomorrow's meeting you will discuss the current state of affordable senior living options in Huntington Beach. Wouldn't it be helpful to have more affordable senior housing in our city?If there were more affordable housing options for seniors, some of the HB seniors I've talked to would sell their homes to young families and move into smaller condos or apartments. Instead,they remain in 4-bedroom houses that aren't safe for aging. Some of you describe Huntington Beach as a nice place to live for middle class families. How can that be the case when many residents, residents'parents/ grandparents can't afford to live here after retirement? Thanks, Carol Daus Huntington Beach resident From: cherivatkinsonCalaol.com To: supplementalcommCalsurfcity-hb.orq;CITY COUNCIL(INCL.CMO STAFF), Subject: I am writing to support a Yes on Agenda Item 25-856 Date: Monday,October 27,2025 11:27:18 AM Dear HB City Council, I am writing to ask you to vote yes, on Agenda Item 25-856. This would provide needed funding for Jamboree Housing, to continue their housing of 43 low income seniors, at Pelican Harbor. Jamboree is an excellant agency, and has provided needed housing for low income seniors in our community. I have visited this site, and can see the excellant services, that they provide. Thanks you for your yes vote on Agenda Item 25-856. Cheri Atkinson LCSW Huntington Beach Resident From: Stephen MacDowell To: supplementalcommsurfcity-hb.orq Subject: Approve Item 25-856 Date: Monday,October 27,2025 12:09:19 PM [You don't often get email from toyomo@sbcglobal.net.Learn why this is important at https://aka.ms/LearnAboutSenderldentification Dear City Council, I would urge you to adopt Agenda Item 25-856. It is essential HB create more house stock.We must also protect vulnerable residents,especially seniors who may have limited or no options. Sincerely, Stephen MacDowell HB Resident Sent from my iPhone Huntington Beach City Council Meeting Oct. 28, 2025 Agenda Item 25-856 Please vote "YES" to authorize the issuance of tax-exempt bonds up to $20 million for the Pelican Harbor Apartments, as well as approving the amendments to the affordable housing agreements continued from the October 21, 2025, City Council Meeting. I strongly support Agenda Item 25-856. Please vote "YES" on this item. Sincerely, Harry McLachlan, H.B. resident From: Regina Mastroyannis Blankenhorn To: suoplementalcommCisurfcity-hb.orq;CITY COUNCIL(INCL.CMO STAFF) Subject: Item#25-856 Taxpayer funds used to provide housing for previously-unsheltered seniors Date: Monday,October 27,2025 1:08:19 PM Subject:Taxpayer funds used to provide housing for previously-unsheltered seniors At the October 21 City Council meeting, I heard three Council Members drone on about taxpayer money being used to house seniors in a project that was deemed unprofitable to the private sector and remained vacant (and a blight) for years. Taxpayer funds are used for many things. Locally, it funds our Parks & Recreation programs, public safety, libraries, infrastructure, all operations and salaries at the City including the stipends of the City Council.The county and state use taxpayer funds to provide us with the same services. And federally, we expect to receive the same and more. In fact, taxpayer monies are funding the President's golf trips. Since he took office in January of this year, it is estimated that $18.2 million of taxpayer money has been spent on him...to play golf. Taxpayer money was also used to pay for an Environmental Impact Report for the Pacific Airshow at the tune of$617,000.Taxpayer money was used to pay for the Public Works Department to prep before, work during and clean up after the Airshow along with the salaries of our Code Enforcement Officers, our Police Officers, our Firefighters, and our Marine Safety Officers and even more staff was used within City Hall—all paid for with taxpayer monies. Revenue we would get from our parking lots is given to the Pacific Airshow. We have yet to see the benefits and the actual dollar amount the City receives for subsidizing the Pacific Airshow put on by Kevin Elliott with Code Four. Numbers have been thrown about for years, but an actual dollar amount comparing what our taxpayer money is putting out there with what comes in has yet to be done. Some of you claimed that you were taken aback by this public hearing and resolution because it was the first time you had heard of it. Therefore, I question whether you read the agenda packet as it comes out with plenty of time before the meeting for you to, at least, peruse it. I also question whether you meet with the City Manager on a regular basis to discuss the agenda items coming before you. And if you do not, what keeps you from contacting him to clarify items on the agenda before a City Council meeting?To me, and possibly others, it seemed that you didn't even read the agenda item. At a minimum, that is your job as a City Council Member. You need to be prepared for a meeting so that you do not waste the public's, the applicant's, and the staff's time during these meetings. The agenda item was explained to you and the reasons why it came at such a late date was also explained to you. You are playing with people's lives. Jamboree Housing is a well-known non-profit that has a mission to provide affordable housing, and the City can assist them by approving this resolution so that they can continue to help the unsheltered in this city in the future because we know that this project is not a stand-alone. The need for housing is real, and Huntington Beach should relish in the fact that we have non-profits like Jamboree Housing that can provide this need with a little assistance from us...the taxpayers. Respectfully, Regina M. Blankenhorn From: Paula Schaefer To: CITY COUNCIL(INCL.CMO STAFF);supplementalcomm(asurfcity-hb.orq;city.managerCasurfcity-hb.org Subject: TEFRA hearing re Pelican Harbor and Jamboree Housing Corporation Date: Monday,October 27,2025 2:07:35 PM Attachments: 1221 SC-Luna-Reynosa PPT.pdf Mayor Pro Tern McKeon and Council Members Twining and Van Der Mark: Thank you for your support of the senior housing project managed by nonprofit developer,Jamboree Housing Corporation (JHC). Mayor Burns and Council Members Kennedy. Gruel, and Williams: I urge you to vote YES to allow JHC to restructure its financing on this project. A number of the questions raised, and the assertions made by Kennedy, Burns, and Williams seemed to reflect a lack of understanding about the project,which has been underway since 2019.The project,when approved in 2021, required 60 years of subsidized housing for 33 units whose tenants would be extremely low income, 9 units for very low income, and 1 unit for an onsite manager. The City's loan was the smallest part($3 million) of the project but for JHC's investment of$1.65 million.The City's loan was to be repaid at 3% interest.Also,the City's$3 million is earmarked for affordable housing development.This money may not be used for any other purpose. (See the attached Council document from December 2021 for information regarding the income limits.) What was appalling was the insinuation that the senior citizens living at Pelican Harbor Apartments were simply a burden on the taxpayers.JHC does not pay property taxes due to its nonprofit status; however,the land developed was an empty lot,which probably did not generate significant property taxes. Further, as Mayor Pro Tern said several times,the for-profit development community considered this parcel to be undevelopable. In other words, it did not pencil out to be profitable. Additionally, it was particularly unprofessional to try to renegotiate the terms which apparently had already been renegotiated. Now,three years later,with a successful project in place,the City chose to renegotiate the terms where the City's residents are the largest benefactor.As said at the 10/21/2025 hearing, 86%of the residents either grew up in the City or previously lived in the City.Yet,the City demanded -and got a 66% increase in the interest rate to be paid, a 65% increase in the number of years of subsidized housing for 42 senior citizens, and an annual payment of$5,000 for homeless services or affordable housing. And yet, Council Member Williams tried to squeeze JHC by asking, in a public meeting, for an increase to the annual payment. His repeated requests for this were a claimed attempt to protect the taxpayers.The Mayor thought that the$5,000 payment in 99 years wouldn't put gas in a vehicle.These were all said in an extremely condescending tone to the JHC representatives. I found the statements about protecting the taxpayer hypocritical given that you recently approved payment of$650,000 for an EIR for the Pacific Air Show. If the City has $650,000 to pay for an EIR, an expense usually paid by the promoter of an event, it most certainly has that amount of money to forego squeezing JHC. Attachment: PowerPoint 12/21/2021 City Council meeting Paula A. Schaefer I '12/21,/2021 1 i i i i r ' .:' � s. -C ty'.,of Huntlntgton Beach . - : Y R December 21; 202`1. 1 Ir 9z" Ce ' .,cad 1: 'Sa.< :t y Y • i 't,;,•. ,' 33 J is �dn§ -� 4.el. ..i% •' • :,„ $;,' 73 @p t q/ .H{A�1 � ��i{ }fit = a c:.- . •• • iP s>y+n , r-,i•,.34.t4.4N, .—r �fp Ia'y.',,�2,: ifimp.i..l i # t .,X1`' i :• �.... �3 . o.. w fc"...^.' „....,f Diu. ..&v., ,'t*:.«ft'4 � tia�ts 4.1.> .. O 'I i g., . '�. P ` c Hearnforthe ssuance of, IH n vMu lam ' cusigRnet on ws ' .f , 1 en sun garea � : er,tar u sng mB3c • m i M1 .10 '�'• s r,'`'"fA` kgJt 'ot o iYni i_',+ ..,,. ... ... t�.y 4 r'4 m S • ,io `Nci�ve,,m b`er 2;Ot9t, the'City1CoLLncil•apprfavedi G., ! ai is .t 4'$3 million Loan, g, " ;,, `' , • A reement.�wltFi:.'J,amboreel' Housing,Coi porationrgari:purchase.•a.® 78,acre ;' rr ; i , + ' vacant parcel at;1i84s31+Beach.;Boulevard EIasAve € i. ` x©, January 202;0,Jamboree tpurchased property ,a1,$' , , i -•; �.,Y' •:: , 1 j Flue n ,�� ' 'o, January 2O2;1„the City Council approved an °4 ',,"-Affordab'le"Housing Agreement;autli"Wing the.. terms!ior the6Yproject ' ` z F" {•r tJamboree, /itt buildka 43 unit apar'tmeitpioject,forsen — , 4. i ,.'''' ; •$•.` The•project willybe affordabieffor'60 ye,ars • i s' ••* '331 units :-.ire Kaffordable to extremely low Income seniors(30% of median) . `, 9'units will he affordable to=ver,'„low in'corrieseriiors'(50% of-m)edian}. ; F•• 1 tiun t wili be for�an on.site:mana,,es=: °'4 riR.� x .,. I. �.:` : e:sd " a.a,, ..,:. ,a! _ ,�..�cX� '�s�ac�..:s'»-,....,s..'„ws.:'«;:__.._µ tai-j;//)/ , + etta I ft; -c „ (7' /— ce).x a i 1 E ££ 996`Z89$ 996`99£`6Z$ 09ti'8E 96L`999`G 1uouuJsanul JodojeAeO L9L`69 000`000`E ueo-1 8H Jo A1ID 8L9129 091,`9 1.8`E si!paWO )(el_ Lt O`98i7 000`006`OZ ueol uoipon;a suo /spuo9 z un Jed Ie3ol seoinog 6u3UeUr uoi £b s}iuf 10 aaquinN(e}off }1.un,aa6eueW swooapag Z L5 4`4$ 6 %009 wooipag 6 98Z$ €C %QE }uaJ pa10ialso8 sIIUf JO iegwnN lanai azrg}tun STUD ��gepa0 1� 008`s5$ 00c,z $ 00 `«t o5z'szt (ewoaui-Mo7 AJaA) (auiooul-mot Aiowa.gxg) azig plogestioH ue!potJ 10%05 uelpaW 10%00£ ST!L,Ul1 eWOOUI TZOZ/iZ/Z G { 1.V/21/2021 • ' Permanent �'I= 1 n C n' : •' Y Sources , I total :Per lln fi• ` !. 'Tax;Credits " ,' . ' ' • . - 12 71:0:534 •. ,,'.' • 295;5'9;4## >' ` 'N.PL'H (tS:tate)• 5„856;,,a=18" .. 1:36'1:86= '. ''MHSA (County}; ' . , 13,6):3',`160 ,8:31.794{ ,'B:onds/P:errnoanent Loan . • 3 . . :3,564;,348, . ,' . `•,82°,892 ;« ', • 'Cityaaff,H.B,Loar,,t fl . .' • ..3000,00, 69,767J° ; C)evelope"r, in•vestment ? 6'32t8961, ' 14 7 1I9i .vt Total . ^j , ` ' ., ,'$'2„9.,366,95:63.r.k ,i, e.$k6x8,2,,;,g95. „i, � V a : �- ehZ: �ft. Y • i SS ppd.'7 .����j� £'gib \ { 4fi & 4' k' ^eff �`S'' , " _.. �+ • .. ' ,' i , `am 3 � ?r ; u,. h� .c { .euest or tppra , •' . :The Odaliforni4M�'unicipal•J,F trance Authority '(OMFfi li9,quests, , • " aut•hoi iza fo:nf to ,issue up to=: 20,million'1nF molt faarriily 9housing , T _" ,rervenue�,poondds • • 4;i• '''4 �'+.�4; . ' ��, >';F i :a. .FBond pioceeels will bexused,cto'const"r"uct•the:<Ja'3,baree.'Senio'r . is• '. `:.'kEti•ing Apart•ments... ; ' r . 44 ya .The City C,aur>>cil�:hasf authority to ,a.pprove• 'or d'en y M.FA' •s¢'request` %. :•sat th"iass:�pula'i�ic hearing; '., _ ;r«�= •F: --Thekibonfidsfwtil'be issi:ed by CM,FAs; , ,h • , r° ihe,'C�fiy w I ;of be respo`nsibI&for:repay=".er t.of'the kiondsv. '` _ is They bongs will'be t'he o'blig'atfron of ;,developer°and''thie`affordable'ho i' '" +t ,,i. .,,. :xf+,d ,,r ., { „a R x�.7M 'sir i : : ,,y ,project r:,t # • :: l 41 h. 1 :3 q. 12/21/2021. Recommended Action () Open the public hearing, take testimony, and close the public on the proposed issuance of Multifamily Housing Revenue Bonds. c) Adopt Resolution No. 2021-76 approving the issuance of$20 million of Multifamily Housing Revenue Bonds by the California Municipal Finance Authority, • Questions, • 4 From: Perry Clitheroe To: supplementalcommlla surfcity-hb.org Subject: Adopt Resolution 2025-65 Date: Monday,October 27,2025 2:50:12 PM You don't often get email from perry.clitheroe@gmail.dom.Learn why this is important October 27, 2025 Hello Huntington Beach City Councilors, I urge you to approve the issuance of tax-free bonds to Jamboree Housing Corporation for the purpose of housing 43 of our senior neighbors. If I ever have business before this council, whether I come to you vulnerable or in a position of strength, I expect to be treated with dignity, fairness, and respect. I was dismayed by comments that indicated some of you believe the powers of government should be used to squeeze applicants. If Democracy is 2 wolves and a lamb voting to eat the lamb for dinner, then it is neither just nor worthy of celebration. I hope you aspire to be better than this, and I hope that in the future you work hard to avoid this impression. It was stated that no private development was possible, noting the narrow frontage and the challenges a developer would face providing parking. Parking mandates are NOT a function of the free market. Height, density, and FAR limits, setback requirements, and many of the city's other rules are not the result of free market operations. Regulations serve an important role in society —Americans benefit from controls on pollution, monitoring of food safety, and the certification of pharmaceutical drugs. Californians benefit from rules which ensure our construction is sturdy, resistant to fire, and built by licensed and insured companies. However, the zoning rules that prevent this property from being developed by the private market are arbitrary, exist to achieve aesthetic goals, or force property owners to set aside portions of their land to the benefit of the automotive industry. The free market would develop an apartment or small office building on that property. Unnecessary government regulation prevents a profitable development at this site at this time. I share many of the Council's frustrations with affordable housing programs and governance of housing at large. Politicians slap together rules to "protect the neighborhood," or to prevent "gentrification," restricting the supply of housing and increasing its cost. To address these high costs they pass subsidies, which also makes housing more expensive. As prices rise they blame the greed of private companies, and they pass new rules and new taxes, restricting the supply and raising the cost of housing higher. Politicians rarely repeal these old rules and almost never repeal the subsidies, they just layer new rules and new subsidies on top of the old ones. The result is a rotten lasagna of laws and subsidies layered on top of one another, strangling the market, and suffocating workers, entrepreneurs and renters. Despite sharing your frustration, I see these objections as hypocritical. Bemoaning Sacramento's affordability mandates while ignoring the city's role in restricting the housing supply is hypocritical. Anyways, regardless of your feelings, depriving an individual applicant because you don't like the frameworks erected in Washington and Sacramento is inappropriate. This item costs Huntington Beach nothing, except for the cost of hosting the meeting. The developer has made concessions to us that were not required. This ought to be an easy vote. In summary, if you vote no because you want the applicant to pay Huntington Beach more money you are not governing We the People, you are extorting some people to benefit others. If you vote no because you love the free market and want to defend taxpayers from the injustice of affordable housing subsidies, you are a hypocrite, either willfully or ignorantly refusing to acknowledge the role of local governments in creating the great housing shortage. Please approve the continued issuance of these bonds! Yours Truly, Perry Clitheroe M1J C.J=i x ns 0 rx) CONTINUANCE OF PUBLIC HEARING �y STATE OF CALIFORNIA ) ;� co i COUNTY OF ORANGE ) SS "' ' CITY OF HUNTINGTON BEACH ) I, Lisa Lane Barnes, declare as follows: That I am the City Clerk of the City of Huntington Beach; that at a regular meeting of the City Council/Public Financing Authority of the City of Huntington Beach and at a special meeting of the Housing Authority held Tuesday, October 21, 2025, said public hearing was opened and continued to a special meeting on October 28, 2025 at 4:00pm to Conduct a Tax and Equity Fiscal Responsibility Act (TEFRA) Public Hearing for the Pelican Harbor Apartments; Adopt Resolution No. 2025-65 Approving the Issuance of the California Municipal Finance Authority's (CMFA) Continued Issuance of Tax-exempt Bonds in an amount not to exceed $20,000,000 for the Pelican Harbor Apartments; and Approve Amendments to Affordable Housing Agreements; and that on Wednesday, October 22, 2025 at the hour of 8:30 a.m., a copy of said notice was posted at a conspicuous place near the door at which the meeting was held. I declare under penalty of perjury that the foregoing is true and correct. Executed on Wednesday, October 22, 2025 at Huntington Beach, California. LISA LANE BARNES, CITY CLERK by: Senior Deputy City Clerk Posted pursuant to Government Code Section 54950 g:\agendas\agmisc\Pubhear-Continued.doc "�""'� 2000 Main Street, � Gam`, Huntington Beach,CA / 92648 City of Huntington Beach 9t - r 1Z-I PUBLIC HEARING OPENED & 9�=F6 CONTINUED TO 10/28/25 APPROVED 4-3 (TWINING, McKEON,VAN DER MARK-NO) File#: 25-801 MEETING DATE: 10/21/2025 REQUEST FOR CITY COUNCIL/ HOUSING AUTHORITY ACTION SUBMITTED TO: Honorable Mayor and City Council Members / Honorable Chair and Board Members SUBMITTED BY: Travis Hopkins, City Manager VIA: Jennifer Villasenor, Director of Community Development PREPARED BY: Charles Kovac, Housing Manager Subject: Conduct a Tax and Equity Fiscal Responsibility Act (TEFRA) Public Hearing for the Pelican Harbor Apartments; Adopt Resolution No. 2025-65 Approving the Issuance of the California Municipal Finance Authority's (CMFA) Continued Issuance of Tax-exempt Bonds in an amount not to exceed $20,000,000 for the Pelican Harbor Apartments; and Approve Amendments to Affordable Housing Agreements Statement of Issue: Jamboree Housing Corporation, the developer of Pelican Harbor Apartments, is requesting that the City Council hold a Tax Equity and Fiscal Responsibility Act (TEFRA) public hearing and adopt a resolution required under federal regulations to maintain the tax-exempt status of previously issued bonds that helped finance the construction of the 43-unit permanent supportive housing community for formerly homeless seniors located at 18431 Beach Boulevard. This action is procedural. It does not authorize any new bonds or financing, nor does it create any financial obligation or liability for the City. Holding this hearing is a federal requirement necessary for the long-term conversion of a portion of the previously issued tax-exempt bonds from construction to permanent financing. In exchange for hosting the TEFRA hearing, the City has secured stronger affordability protections and more favorable loan repayment terms. Financial Impact: This action does not create any new financial obligation for the City. In fact, the City will receive several long-term benefits negotiated with the developer: • The original 60-year affordability term will be extended to 99 years. • The developer will pay the City $5,000 per year for 99 years, generating $495,000 in funding for future housing or homelessness prevention activities. City of Huntington Beach Page 1 of 4 Printed on 10/15/2025 powered by LegistarTM 61 File#: 25-801 MEETING DATE: 10/21/2025 • Interest rates on the City's HOME and Inclusionary Loans will increase from 3% to 5% beginning in year 20, resulting in approximately $4.9 million in increased payments to the City over the extended life of the loans. Recommended Action: A) Conduct the TEFRA public hearing pursuant to federal law. B) Adopt Resolution No. 2025-65, "A Resolution of the City Council of the City of Huntington Beach Approving the Issuance of the California Municipal Finance Authority Exempt Facility Bonds in an Aggregate Principal Amount Not to Exceed $20,000,000 for the Purpose of Refinancing the Acquisition, Construction, Improvement and Equipping of Pelican Harbor (Formerly Referred to as Huntington Beach Senior Housing) and Certain Other Matters Relating Thereto" (Attachment 1). C) Adopt First Amendment to Affordable Housing Agreement (Attachment 2). D) Adopt First Amendment to Amended and Restated Agreement Containing Covenants (Attachment 3). E) Adopt First Amendment to City HOME Promissory Note (Attachment 4). F) Adopt First Amendment to City Inclusionary Housing Promissory Note (Attachment 5). G) Authorize the City Manager and Housing Authority Executive Director, or their designees, to execute the above documents. Alternative Action(s): Do not approve the proposed TEFRA hearing or amendments. This would create financing uncertainty for the completed project and increase the risk of loan default or future foreclosure. Analysis: Background Pelican Harbor Apartments is a 43-unit permanent supportive housing development located at 18431 Beach Boulevard. Completed in December 2024 and fully occupied as of January 2025, the project serves one of the most vulnerable populations in Huntington Beach - formerly homeless seniors, many of whom face significant health and mobility challenges. The project includes on-site case management and supportive services funded through long-term contracts with the County of Orange. The City contributed a total of$3,127,036 in loan funds to support the project: • $2,830,697 from the federal HOME Investment Partnerships Program (HOME Loan), and • $296,339 from local Inclusionary Housing funds (Inclusionary Loan). These residual receipts loans are subordinate to the senior debt and carry a 3% simple interest rate during the initial 20 years. The project was developed by Jamboree Housing Corporation, a nonprofit affordable housing City of Huntington Beach Page 2 of 4 Printed on 10/15/2025 powered by Legistar'" 62 File #: 25-801 MEETING DATE: 10/21/2025 developer, with additional funding from multiple federal and state sources including Orange County Mental Health Services Act funds, State of California No Place Like Home funds, and 4% Low- Income Housing Tax Credits. Tax-exempt bonds, issued by the California Municipal Finance Authority (CMFA), served primarily as the construction loan with a smaller portion retained for permanent financing. The City did not issue the bonds, is not the borrower, and has no liability for repayment. The bonds are the sole responsibility of the developer and will be repaid through a combination of tax credit equity and rental income. Purpose of the TEFRA Hearing Under federal tax law, certain types of tax-exempt bond financing require a public hearing before the bonds can be issued. This requirement, established by the Tax Equity and Fiscal Responsibility Act (TEFRA) of 1982, ensures transparency and provides an opportunity for public input. A TEFRA hearing must be held by the governing body of the jurisdiction where the project is located (in this case, the Huntington Beach City Council) even if that agency is not issuing or backing the bonds. The original TEFRA hearing for Pelican Harbor was held in December 2021 prior to construction financing; however, that approval expired after three years. To comply with IRS regulations and allow the previously issued bonds to transition from temporary (construction) to long-term (permanent) financing, a new TEFRA hearing must be held by the City Council. This requirement does not reflect a new bond issuance, nor does it represent additional financing or cost to the City. It is a procedural step needed to maintain the tax-exempt status of the bonds already issued. If not completed, the bondholder could lose the ability to keep the bonds tax-exempt, which would create financing instability for the project and increase the risk of foreclosure. Community Benefits In exchange for hosting the TEFRA hearing, the City negotiated several enhancements to its existing loan agreements with Jamboree. These include: • Extending Affordability to 99 Years: The project will remain affordable to extremely and very low-income seniors for nearly a century, ensuring long-term community benefit. • New Annual Payment Obligation: Jamboree will make a $5,000 annual payment to the City for the next 99 years, providing an additional $495,000 in local revenue to support affordable housing and homelessness prevention programs. • Improved Loan Terms for the City: Beginning in year 20, the interest rates on both City loans (the HOME loan and the Inclusionary Housing loan) will increase from 3% to 5%, boosting the future repayment amount owed to the City by nearly $5 million. These benefits were not required as part of the original financing and represent a favorable renegotiation for the City. Importance of Council Action The Pelican Harbor Apartments have already been constructed, are fully occupied, and are providing critical housing and supportive services to formerly homeless seniors. This TEFRA hearing does not authorize any new development, alter the project in any way, or affect current tenants. It is strictly a City of Huntington Beach Page 3 of 4 Printed on 10/15/2025 powered by LegistarTM 63 File#: 25-801 MEETING DATE: 10/21/2025 procedural requirement to maintain the tax-exempt status of a portion of the project's financing. Without Council approval of the TEFRA hearing, the developer cannot convert the existing construction bonds to permanent financing. This would create long-term financial instability for the project and increase the risk of default on the City's subordinate loans. By approving this action, the City Council reinforces its commitment to fiscal responsibility, supporting solutions to reduce homelessness in the community, and protecting the City's investment - without taking on any new financial risk or obligation. Environmental Status: Pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15194, affordable housing projects meeting specific criteria listed in Section 15192 and 15194 of the CEQA Guidelines are exempt. The Project meets the criteria listed in the above-mentioned sections and is therefore exempt. Strategic Plan Goal: Non Applicable -Administrative Item For details, visit www.huntingtonbeachca.gov/strategicplan. Attachment(s): 1. Resolution No. 2025-65, "Resolution of the City Council of the City of Huntington Beach Approving the Issuance of the California Municipal Finance Authority Exempt Facility Bonds in an Aggregate Principal Amount not to exceed $20,000,000 for the purpose of Refinancing the Acquisition, Construction, Improvement and Equipping of Pelican Harbor (formerly referred to as Huntington Beach Senior Housing) and Certain Other Matters Relating Thereto" 2. First Amendment to Affordable Housing Agreement 3. First Amendment to Amended and Restated Agreement Containing Covenants 4. First Amendment to City HOME Promissory Note 5. First Amendment to City Inclusionary Housing Promissory Note 6. PowerPoint Presentation City of Huntington Beach Page 4 of 4 Printed on 10/15/2025 powered by LegistarT"" 64 City Council/Public Financing ACTION AGENDA October 21,2025 Authority C) Authorize the Director of Public Works to approve change orders up to a 15% contingency; and D) Authorize the Mayor and City Clerk to execute a construction contract with KASA Construction, Inc. in a form approved by the City Attorney. Approved 7-0 PUBLIC HEARING 11. 25-801 Conduct a Tax and Equity Fiscal Responsibility Act(TEFRA) Public Hearing for the Pelican Harbor Apartments; Adopt Resolution No. 2025-65 Approving the Issuance of the California Municipal Finance Authority's (CMFA) Continued Issuance of Tax-exempt Bonds in an amount not to exceed $20,000,000 for the Pelican Harbor Apartments; and Approve Amendments to Affordable Housing Agreements Recommended Action: A) Conduct the TEFRA public hearing pursuant to federal law. B) Adopt Resolution No. 2025-65, "A Resolution of the City Council of the City of Huntington Beach Approving the Issuance of the California Municipal Finance Authority Exempt Facility Bonds in an Aggregate Principal Amount Not to Exceed $20,000,000 for the Purpose of Refinancing the Acquisition, Construction, Improvement and Equipping of Pelican Harbor (Formerly Referred to as Huntington Beach Senior Housing) and Certain Other Matters Relating Thereto" (Attachment 1). C) Adopt First Amendment to Affordable Housing Agreement(Attachment 2). D) Adopt First Amendment to Amended and Restated Agreement Containing Covenants (Attachment 3). E) Adopt First Amendment to City HOME Promissory Note (Attachment 4). F) Adopt First Amendment to City Inclusionary Housing Promissory Note(Attachment 5). G) Authorize the City Manager and Housing Authority Executive Director,or their designees, to execute the above documents. Speakers— 0 Supplemental Communication— 1 Public hearing to be continued until date certain 10/28— Special City Council meeting; to allow time for reviewing for restructuring and alignment with current priorities. Apprcved 4-3(Twining, McKeon, Van Der Mark— No) Page 4 of 5 RESOLUTION NO. 2025-65 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH APPROVING THE ISSUANCE OF THE CALIFORNIA MUNICIPAL FINANCE / AUTHORITY EXEMPT FACILITY BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $20,000,000 FOR THE PURPOSE OF REFINANCING THE ACQUISITION, CONSTRUCTION, IMPROVEMENT AND EQUIPPING OF PELICAN HARBOR(FORMERLY REFERRED TO AS HUNTINGTON BEACH SENIOR'HOUSING) AND CERTAIN OTHER MATTERS RELATING THERETO/ / WHEREAS, the California Municipal Finance Authority (the "Authority") executed and delivered its California Municipal Finance Authority Multifamily Housing Revenue Note (Huntington Beach Senior Housing) 2022 Series A (the"Prior Bond7) for the purpose of making a loan(the"Loan") to Beach Housing Partners LP, a California limited partnership (the "Borrower") a partnership of which Jamboree Housing Corporation(the"Developer") or a related person to the Developer is the general partner, to finance the acquisition, construction, improvement and equipping of a senior multifamily rental housing project generally known as Pelican Harbor(formerly referred to as Huntington Beach Senior Housing) located at 18431 Beach Boulevard,Huntington Beach, California(the"P o ect") which is owned by the Borrower; and The multifamily rental housing project haabeen fully constructed, and the Borrower is working with one or more lenders to make certain amendments to the terms of the Loan,which amendments and modifications will constituteia"reissuance" of the Prior Bonds for purposes of federal income taxation requiring a new public hearing and approval pursuant to Section 147 of the Internal Revenue Code of 1986 (the"Cade"), which reissuance does not involve the incurrence by the Borrower of new debt; and To facilitate such reissuanceifor federal tax purposes, the Borrower has requested that the Authority adopt a plan of financingfproviding for the issuance of exempt facility bonds for a qualified residential rental project pursuant to Section 142(a)(7) of the Code in one or more series issued from time to time,including bonds issued to refund such exempt facility bonds in one or more series from time to time, and at no time to exceed$20,000,000 in aggregate principal amount (the"Bonds'"), to refinance the acquisition, construction, improvement and equipping of the Project; and Pursuant to Sec ion 147(f) of the Code,the issuance of the Bonds by the Authority must be approved by the 9fy of Huntington Beach (the"City")because the Project is located within the territorial limit /of the City; and The Cit Council of the City (the "City Council") is the elected legislative body of the City and is o .4 of the"applicable elected representatives"required to approve the issuance of the Bonds unde Section 147(f) of the Code; and /25-17050/391590 65 RESOLUTION NO. 2025-65 The Authority has requested that the City Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the"Agreement))'among certain local agencies, including the City; and / Pursuant to Section 147(f) of the Code, following notice duly given, rel7esentatives of the Authority conducted a public hearing on behalf of the City Council regarding the issuance of the Bonds in compliance with the requirements,of Section 147(f) of the Code and provided minutes of the hearing; and The City Council now desires to approve the issuance of the Bonds by the Authority, NOW,THEREFORE,the City Council of the City of Huntington Beach does hereby resolve as follows: / SECTION 1. The foregoing recitals are true and correct. SECTION 2. The City Council hereby approves the issuance of the Bonds by the Authority. It is the purpose and intent of the City Council that this resolution constitute approval of the issuance of the Bonds by the Authority, for the purposes of(a) Section 147(f) of the Code by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is located, in accordance with said Section 147(f) and (b) Section 4 of the Agreement. SECTION 3. The issuance of the,13'onds shall be subject to the approval of the Authority of any financing documents or executio of amendments relating thereto to which the Authority is a party. The City shall have no responsibilityn or liability whatsoever with respect to the Bonds. SECTION 4. The adopt on of this Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii)approve any application or request for or take any other action in connection with any planng approval,permit or other action necessary for the acquisition, construction, rehabilitation, installation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv)take any further action with respect to the Authority or its membership therein. SECTION/5. The officers of the City are hereby authorized and directed,jointly and severally, to do any and all things and to execute and deliver any and all documents which they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this resolution and the financing transaction approved hereby. 2 66 RESOLUTION NO. 2025-65 SECTION 6. This resolution shall take effect immediately upon its adoption. f PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 21 sc day of October, 2025. Mayor REVIEWED AND APPROVED: INITIATED AND APPROVED: City Manager Director of Community Development APPROVED AS TO FORM: i City Attorney f 3 67 FIRST AMENDMENT TO AFFORDABLE HOUSING AGREEMENT (18431 Beach Boulevard) THIS FIRST AMENDMENT TO AFFORDABLE HOUSING AGREEMENT (this "First Amendment") dated for identification purposes only as of , 2025, is made and entered into by and among THE CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California ("City"), THE HUNTINGTON BEACH HOUSING AUTHORITY, a public body, corporate and politic("Authority"),and BEACH HOUSING PARTNERS LP, a California limited partnership ("Owner")with reference to the following: RECITALS The following Recitals are a substantive part of this First Amendment. Capitalized terms used in these Recitals and not otherwise defined shall have the meaning set forth in the Agreement (defined below). A. On or about January 5, 2021, City, Authority and Owner entered into that certain Affordable Housing Agreement (the "Agreement"), pursuant to which, among other things, City provided certain financial assistance to Owner to assist Owner to construct a forty-three (43) unit senior affordable housing development known as"Pelican Harbor"(the"Project"),on certain real property located at 18431 Beach Boulevard, in the City of Huntington Beach, State of California. B. Owner completed construction of the Project on November 26, 2024, as evidenced by City's issuance of a certificate of occupancy, and is pursuing Conversion. C. Owner's construction and permanent financing are funded with proceeds of mortgage revenue bonds issued by the California Municipal Finance Authority, and thereafter loaned to Owner by U.S. Bank National Association, as "Funding Lender." The original TEFRA hearing authorizing issuance of the bonds has expired, resulting in the need for a new TEFRA hearing to be held by City. D. City has agreed to hold the TEFRA hearing provided Owner agree to certain changes to the terms of the City and Authority loan documents, as further set forth herein and in certain amendments to the Amended and Restated Covenants, the HOME Note, and the Inclusionary Note, all of which amendments are to be entered into concurrently herewith. AGREEMENT: NOW, THEREFORE, City, Authority and Owner hereby agree as follows: 1. The Agreement is hereby amended to provide that in addition to any other payments required to be made by Owner pursuant to the Agreement and/or pursuant to any of the other City or Authority loan documents, commencing in 2026, Owner shall annually pay to City on each July 1 during the term of Amended and Restated Covenants, as amended, a fee in the 882/020587-0153 22702593.6 a09/09/25 68 amount of Five Thousand Dollars ($5,000) to be utilized by City for housing or homelessness prevention activities. 2. Except as expressly modified by this First Amendment,all of the provisions of the Agreement remain in full force and effect and shall govern the relationship of the Parties. 3. This First Amendment may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. [SIGNATURES ON NEXT PAGE] 882/020587-0153 - 22702593.6 a09/09/25 -2 69 IN WITNESS WHEREOF, City, Authority and Owner have signed this First Amendment as of the date set forth above. "CITY" CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California By: Travis Hopkins City Manager ATTEST: By: Lisa Lane Barnes, City Clerk APPROVED AS TO FORM: FLA- ('"' Michael J. Vigliotta, City Attorney "AUTHORITY" HUNTINGTON BEACH HOUSING AUTHORITY, a public body, corporate and politic By: Travis Hopkins Executive Director ATTEST: By: Lisa Lane Barnes, Authority Secretary APPROVED AS TO FORM: Gy Michael J. Vigliotta Authority Counsel 882/020587-0153 22702593.6 a09/24/25 -�- 70 "OWNt*": ijtAcHOOV!SIN.011..Att:TN%Wti?, occOforniq.limited pOithergiig, By: .11-1C,- ea.eh,Li.,C, d:(4lithitio.,,liiiiitecllik4ity:,000pariy its Managing General Partner ' . , By: Jamboree.l-lpti§iiig,Corporation, 6::C.ali't9irlia nonprofit 1:0115:benefit A ., . . 1\lartie::Michael..Massie . Title:: •Executive Vice Piesadent and Chief l)6ietophioht Oftlje0 , ; 837:(0:70587-0 it, !127025134 a90/09125. 71 RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: THE CITY OF HUNTINGTON BEACH 2000 Main Street Huntington Beach, CA 92648 Attn: City Manager SPACE ABOVE THIS LINE FOR RECORDER'S USE APN: 159-031-18 FREE RECORDING REQUESTED (Gov't Code Section 27383) FIRST AMENDMENT TO AMENDED AND RESTATED AGREEMENT CONTAINING COVENANTS (INCLUDING RENTAL RESTRICTIONS) (18431 Beach Boulevard) THIS FIRST AMENDMENT TO AMENDED AND RESTATED AGREEMENT CONTAINING COVENANTS (INCLUDING RENTAL RESTRICTIONS) (the "First Amendment") dated as of 2025, is entered into by and between BEACH HOUSING PARTNERS LP,a California limited partnership("Owner"),THE HUNTINGTON BEACH HOUSING AUTHORITY, a public body, corporate and politic ("Authority"), and THE CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California ("City"). RECITALS The following Recitals are a substantive part of this First Amendment. Capitalized terms used in these Recitals and not otherwise defined shall have the meaning set forth in the Agreement (defined below). A. On or about January 5, 2021, City, Authority and Owner entered into that certain Affordable Housing Agreement (the "Affordable Housing Agreement"), pursuant to which, among other things, City provided certain financial assistance to Owner to assist Owner to construct a forty-three(43)unit senior affordable housing development known as"Pelican Harbor" (the "Project"), on certain real property located at 18431 Beach Boulevard, in the City of Huntington Beach, State of California. B. At the original Closing (as defined in the Affordable Housing Agreement), City, Authority and Owner entered into that certain Amended and Restated Agreement Containing Covenants (Including Rental Restrictions, dated February 1, 2022, which was recorded on February 4, 2022 in the Official Records of Orange County as Instrument No. 2022000048870 (the "Agreement"). 882/020587-0153 22709557.2 a09/08/25 72 C. Owner completed construction of the Project on November 26, 2024, as evidenced by City's issuance of a certificate of occupancy, and is pursuing Conversion (as defined in the Affordable Housing Agreement). D. Owner's construction and permanent financing are funded with proceeds of mortgage revenue bonds issued by the California Municipal Finance Authority, and thereafter loaned to Owner by U.S. Bank National Association, as "Funding Lender." The original TEFRA hearing authorizing issuance of the bonds has expired, resulting in the need for a new TEFRA hearing to be held by City. E. City has agreed to hold the TEFRA hearing provided Owner agree to certain changes to the terms of the City and Authority loan documents, as further set forth herein and in certain amendments to the Affordable Housing Agreement, "HOME Note" (as defined in the Affordable Housing Agreement), and the "Inclusionary Note" (as defined in the Affordable Housing Agreement), all of which amendments are to be entered into concurrently herewith. AGREEMENT- ________. NOW, THEREFORE, City, Authority and Owner hereby agree as follows: 1. The Agreement is hereby amended to change the "Term" thereof to the period commencing on date City issued a certificate of occupancy for the Project and ending ninety-nine (99) years thereafter(i.e., on November 26,2123). 2. Except as expressly modified by this First Amendment,all of the provisions of the Agreement remain in full force and effect and shall govern the relationship of the Parties. 3. This First Amendment may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. [End—Signature Page Follows] 882/020587-0153 _ 22709557.2 a09/08/25 -2 73 wINS . NqiEltEoF, City, ,Or fet arid Aiithprity hOve lint ii First . date set fo#h 006. "CITY" ,4oWix'agw, CITY C) ."1--giNTINGTQN:BEACH EACH HOUSING PARTNERS LP 4 California limited partnership By.: ° Travis Hopkins Byi JHC-Beach IIC;a California limited City Manager liability company Its ‘Managing Genprat Partner NITEST: By Jamboree Housing Corporation, 'PY.; •-• S a Califoitia npriprofit public " Lisa Lane Barnes,City Clerk benefit corporation k-PPT.?-0VFD 'FM •Wniger ; 8$!; C -)* By! :Miche J.Vigligtta City Executive Vice President Chief' Attorney: „ 'POO optient Pf-fieet 1-TVNTI:i\IPTOO 13EAc41400$INQ Auti-Oury, a pOlic,11?odY cOrt),Otate:aticiVOlitie By: -Travis Hopkins EkeöutiVèDireetOr ATTEST; Lisa Lane BarneS;AtithOrity . , ROVED A$''to: A-Michael J."Vi lietta . - :•AtithOrity • ;882/0:20587-Or53 .21705512 io.00:5 - 74 A Notary Public-or other'officer completing this;,certificate verifies:only::the identity of.the' individual who signed the doctiment:to which this certificate is attached,and:not:the:truthfulness, accuracy.,or validity of that;docuzrtent. State of California ): County of (Wally?- ) `. .l 0. ? ,:before iiie,: 0(:l��>�" isen .h officer) {{ i � me:artd:title.oft eol7icer Notary Public,,persor ally.appeared .. 1 11.(;tlu who proved to nie'on:the basis of satisfactory-evidence to:be the person(s).:whose names) is/are -subscribed to the within instrument,and acknowledged.to me that he/she/they:executed the same 'in his/her/their authorized:capacity(ies),and.:that:by his/her/their signatures);on the instrument;the persOh(s);:or the entity tipen behalf of'v�'hieh:tl-e.person(s)acted, executed the ihstrurnent. .1 certify under PENALTY t F PERJURY.under the laws of the State of California that the foregoing paragraph is'true arid eotreet. WITNESS icy hand,and official seal. Signature (Seal} 14041- Russ r i;. Not*Pt blioCaJfffommta • ..1 PRaNGiE MUMf. ..7t4il.J�- S3:2/420)87-OI53 27095572 a09:08/25 75 A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California ) County of ) On , before me, (insert name and title of the officer) Notary Public,personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies),and that by his/her/their signature(s)on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) 882/020587-0153 22709557.2 a09/08/25 76 Exhibit"A" LEGAL DESCRIPTION REAL PROPERTY IN THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: PARCEL 2, IN THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA,AS PER MAP RECORDED IN BOOK 76, PAGE 4 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 159-031-18 832/020587-0153 « „ 22709557.2 a09/03/25 Exhibit A 77 FIRST AMENDMENT TO RESIDUAL RECEIPTS PROMISSORY NOTE SECURED BY DEED OF TRUST TO THE CITY OF HUNTINGTON BEACH, CALIFORNIA This FIRST AMENDMENT TO RESIDUAL RECEIPTS PROMISSORY NOTE SECURED BY DEED OF TRUST TO THE CITY OF HUNTINGTON BEACH ("First Amendment No. 1") is made and entered into as of ,2025 ("Effective Date")by and between BEACH HOUSING PARTNERS LP, a California limited partnership ("Borrower"), and CITY OF HUNTINGTON BEACH, a municipal corporation of the state of California("City"). RECITALS: The following Recitals are a substantive part of this First Amendment. Capitalized terms used in these Recitals and not otherwise defined shall have the meaning set forth in the Agreement(defined below). A. On or about January 5, 2021, City, the Huntington Beach Housing Authority, and Borrower entered into that certain Affordable Housing Agreement (the "Agreement"), pursuant to which, among other things, City provided certain financial assistance to Borrower to assist Borrower to construct a forty-three (43) unit senior affordable housing development known as "Pelican Harbor" (the "Project"), on certain real property located at 18431 Beach Boulevard, in the City of Huntington Beach, State of California. B. At the Closing, Borrower executed that certain Residual Receipts Promissory Note Secured by Deed of Trust to the City of Huntington Beach, California, dated February 1, 2022, to evidence and set forth the repayment terms of the HOME Loan(the "HOME Note"). C. Borrower has completed construction of the Project, and is pursuing Conversion. D. Borrower's construction and permanent financing are funded with proceeds of mortgage revenue bonds issued by the California Municipal Finance Authority, and thereafter loaned to Borrower by U.S. Bank National Association, as "Funding Lender." The original TEFRA hearing authorizing issuance of the bonds has expired, resulting in the need for a new TEFRA hearing to be held by City. E. City has agreed to hold the TEFRA hearing provided Borrower agree to certain changes to the terms of the City and Authority loan documents, as further set forth herein and in certain amendments to the Agreement, Amended and Restated Covenants, and the Inclusionary Note, all of which amendments are to be entered into concurrently herewith. AGREEMENT: NOW, THEREFORE, City and Owner hereby agree as follows: 1. The HOME Note is hereby amended to provide that commencing in the twentieth (20th) year following the year in which the Occupancy Date occurs, the HOME Note 882/020587-0153 22705364.2 a09/08/25 78 shall accrue simple interest at the rate of five percent (5%) per annum on the principal amount outstanding. 2. The HOME Note is hereby amended to change the "Maturity Date" to the ninety-ninth (99th) anniversary of the Occupancy Date. 3. Except as expressly modified by this First Amendment,all of the provisions of the HOME Note remain in full force and effect and shall govern the relationship of the Parties. 4. This First Amendment may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. [End—Signature Page Follows] 882/020587-0153 22705364.2 a09/08/25 -2- 79 WITNES$W.:0F;ROP city ancL Qwnec.each hereby reprOScatS that it has.rep.O.titiOffst. understands it, and hereby,excatei;t4iS First Amendment to be effective as of the day and year "071r OTY.OF IIV,NTINgtcaNAWA61, a:municipal 04*.tatipti:of S*0, Oilci:#1.i.a, Travis Napkins City Manager ATTEST: By: Lisa Lane 13aind$:,c#,st•-0,6rk APPROVO.:M TP1'.-001! CityAttorney "AUT11910Te IfUNTIES1q-FON10,4::C1-1 p AvritotoTy,atiablic bo4y0,94*Tato'014d politic Tra87,i$1Hi*ins •g*.a6titi.v.6 Pit*tOr ATtEST: Lisa.Lane BaisAtatiority Secretary AeP,g0VET)Ag TO:17.9104i Michael J tia 2270612 009124/74: 80 r, '",QVYNtfr 13E:wfi.i-touiNG pomps LP .aeal<iforriialittited paitrietaiip . . :By:: AtC7Beadi.44C, a,California limited liability company its:ManagifigrGeneral Partner y::: 4amboreelicOsjzi$-..coqvratiop, a,California•nonprofit public:benefit corpOra.iorl it .riafia er .13.31: 't4if - • , • Name: Ntielia.etiMassie Title: Txpetitive Vice President and chip1,0eyelop*rlt Qffiodt ,V3:11620387-ti1 53 22,7096p..2 qp9103.)25: 81 FIRST AMENDMENT TO RESIDUAL RECEIPTS PROMISSORY NOTE SECURED BY DEED OF TRUST TO THE CITY OF HUNTINGTON BEACH, CALIFORNIA This FIRST AMENDMENT TO RESIDUAL RECEIPTS PROMISSORY NOTE SECURED BY DEED OF TRUST TO THE CITY OF HUNTINGTON BEACH ("First Amendment No. 1") is made and entered into as of ,2025 ("Effective Date")by and between BEACH HOUSING PARTNERS LP, a California limited partnership ("Borrower"), and CITY OF HUNTINGTON BEACH, a municipal-corporation of the state of California("City"). RECITALS: The following Recitals are a substantive part of this First Amendment. Capitalized terms used in these Recitals and not otherwise defined shall have the meaning set forth in the Agreement(defined below). A. On or about January 5, 2021, City, the Huntington Beach Housing Authority, and Borrower entered into that certain Affordable Housing Agreement (the "Agreement"), pursuant to which, among other things, City provided certain financial assistance to Borrower to assist Borrower to construct a forty-three (43) unit senior affordable housing development known as "Pelican Harbor" (the "Project"), on certain real property located at 18431 Beach Boulevard, in the City of Huntington Beach, State of California. B. At the Closing,Borrower executed that certain Residual Receipts Promissory Note Secured by Deed of Trust to the City of Huntington Beach, California, dated February 1, 2022, to evidence and set forth the repayment terms of the Inclusionary Loan (the"Inclusionary Note"). C. Borrower completed construction of the Project on November 26, 2024, as evidenced by City's issuance of a certificate of occupancy, and is pursuing Conversion. D. Borrower's construction and permanent financing are funded with proceeds of mortgage revenue bonds issued by the California Municipal Finance Authority, and thereafter loaned to Borrower by U.S. Bank National Association, as "Funding Lender." The original TEFRA hearing authorizing issuance of the bonds has expired, resulting in the need for a new TEFRA hearing to be held by City. E. City has agreed to hold the TEFRA hearing provided Borrower agree to certain changes to the terms of the City and Authority loan documents, as further set forth herein and in certain amendments to the Agreement, Amended and Restated Covenants, and the HOME Note, all of which amendments are to be entered into concurrently herewith. AGREEMENT: NOW, THEREFORE, City and Owner hereby agree as follows: 1. The Inclusionary Note is hereby amended to provide that commencing in the twentieth(20th)year following the year in which the Occupancy Date occurs,the Inclusionary 882/020587-0153 22709602.2 a09/08/25 • 82 Note shall accrue simple interest at the rate of five percent(5%)per annum on the principal amount outstanding. 2. The Inclusionary Note is hereby amended to change the"Maturity Date"to the ninety-ninth (99th) anniversary of the Occupancy Date(i.e.,November 26, 2123). 3. Except as expressly modified by this First Amendment,all of the provisions of the Inclusionary Note remain in full force and effect and shall govern the relationship of the Parties. 4. This First Amendment may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. [End—Signature Page Follows] 882/020587-0153 _ 22709602.2 a09/08/25 -2' 83 IN WITNESS NYAEREOF,ejty'4114 ‘vilr each hereby rprp§p4t4 thg jthas read this firq Amendment, understands it,and hereby e.wetitostW First Amendment to be effective as of the day and ertist written:4§6ve 40TV", .11LIIslifINqtc)17• JOEACH; .a tratifiici:pal: eciltoratioii of the 8tOte:Of0t)ifothia 1.i.pAs..ROpkin* ;City Manager ATTEST By: ,14§4;1,,.6.0613:#0$ City 0Ork APPROVED As TO FORM IMicháeI J.,Vigliattk City AttorriOy.. "AUTHORITY" HINTINGTON BEACH.11.USING. •OmiorrY,a pliNo::!;iposiop.(iratc arid politic.. Byf Travi }1Opicins: Executive Director •ATTEST : . :Lis4:Lan ,tVirt.W§',Atatorjty Sectetary APPROVED 0`1.-1,001. "- Micbac1 L VigliOttq Authority 882/020531-0 I SZ 2P4,9402,:-;u0907.4/2.5. 84 1111116. \ Will 1 N G in ,....k ,....., isc\ /lir dr ............. .4,4,,, 1.„ c os toil P 0 RAT, .$4, Niiik TEFRA Public . ,, , .4. \ 4`-49 % • P Hearingfor Pelican .4z:c ....am *ft,. .4, _ . • ,,., ,, , ,, , , . ci . A' HarborSenior, . ____ __ _,_- ice _ ,- ii, - - • HousingProject= - , ) ..4, ... ______ ....,. _ • ., ------,.-i- 0 Ipso. tcd . �►` , City Council ••tree;; 1; e,' C7!/4:it s,# •••gOctober 21 2025 J'OONTN 86 Background • November 4, 2019, the City Council approved an Acquisition Loan Agreement with Jamboree Housing Corporation to purchase a 0.78- acre parcel of vacant land located at 18431 Beach Boulevard for $3 million consisting of HOME funds and Inclusionary Housing funds. • The Project consists of the development of a 43-unit senior affordable housing project (occupied in January 2025). • On January 19, 2021 , the City Council approved an Affordable Housing Agreement with Beach Housing Partners, LP, which included the following affordable housing requirements: r The Project will be affordable for 60 years 0f � I NTo < �N•�� V V "•9RPOR� s� ✓ 33 units will be affordable to extremely low-income households (less than }+�/ •• 30% of the area median income) � = ✓ 9 units will be affordable to very low-income households (less than 50% of �,- , �� ��4 oe �� the area median income) r, c�;;; :N `�t • One unit will be an on-site manager's unit —,. T' nit i 87 Background • The Federal Tax Equity and Fiscal Responsibility Act (TEFRA) requires that a public hearing be held in connection with the issuance of tax-exempt bonds and is held in the jurisdiction the Project is located. • After the TEFRA hearing on December 21 , 2021 , the City Council approved a tax-exempt bond issuance of up to $20 million for Project construction and permanent financing. • The tax-exempt bonds were eventually issued by California Municipal Finance Authority in the amount up to $20 million. y / .17 t . C) ourNi 88 Background • In addition to $3 million in City loans, the Project also included public funding sources from State and County that act as equity while the tax-exempt bonds serve primarily as the construction/permanent loan. • The use of tax-exempt bonds offer lower interest rates compared to regular bank loan, thus providing cost savings and increased leverage of the public funding sources. • The City of Huntington Beach did not issue the tax-exempt bonds for the Project as the repayment of the bonds are the sole obligation of . -ciNG7- the Developer through the sale of tax credit equity and rental °`•-' '`°�?0R4IE `"• 6' •revenues from the Project. 89 Proposed TEFRA Hearing • A portion of the $20 million in tax-exempt bonds will be outstanding at permanent conversion to fund the permanent loan. • The TEFRA needs to be current during conversion from construction to permanent financing and maintain the tax-exempt status. • This action would create the need to hold another TEFRA hearing as the prior TEFRA hearing term expired after three years on December 21 , 2024. • The Developer has requested that another TEFRA hearing be held to address the long-term conversion of a portion of the bond r,!! 9 IN Grd proceeds into the permanent loan, and that the City Council �,°-' 4h ee ..<; ,Ik cZ31 IC) consider this action. _ =.x • ��� �� ?7,1909.E ..1( There are no additional funds allocated as a result of this TEFRA V. � ..�....���,,' hearing and no additional bonds will be issued. =°t/NTe ;;,f 90 Proposed Amendments In return for hosting the TEFRA hearing, the City would receive the following concessions from the Developer: • The term of the Project's affordability covenants shall be increased from 60 years to 99 years. • Developer annually pays the City a $5,000 fee for the term of the Project's affordability covenants to be used for housing or homelessness prevention activities. • The simple interest on the HOME Loan and Inclusionary Loan ,,:449"�-�--4, j � TIN�l`p� shall be increased at Year 20 of the respective Note terms from � �„�..•.. RQorF �, � ,, three (3) percent to five (5) percent. �% ��� `, yw6�. '' q V6/F •~'t;,sus. •4 or � %A �i� o COUNT`( -,�1 91 Recommendations • Conduct a TEFRA public hearing; and, • Adopt Resolution No. 2025-65 approving CMFA's continued issuance of Tax Exempt Bonds in an Amount not to exceed $20,000,000 for the Pelican Harbor Apartments; and, • Adopt the First Amendments to the Affordable Housing Agreement, Amended and Restated Agreement Containing Covenants, City HOME Promissory Note, and City Inclusionary Housing Promissory Note. yin • Authorize the City Manager and Housing Authority Executive :�,RQ°RAreP•..� Director, or their designee, to execute the above documents. p cot;NTY ****. 92 ` was k 3 9 ri )71)1'11441:63t"i, �q ii £\ +^....rare" r!' -+`" _ 1 1 uestuons ? . .... . . s. , .., . ..---- 1-,,,!---,--.:.,,,i,,t.tt.,,, , '------7- _ \ „...-- - ' .., . .... . _, \\\ZC7,'. u` rN'Xe ::.,.. ..,......-......._.„............,"..:. _,...... .., ,c,_,,,,,... „,...,......„_,,...... -„,.....„,...„ , ,,,,,,,, , 1, ,.. „,,,, , , \„ ,, _ 93 !Ken ned COMMISSION — October 21, 2025 Armv.keltnedycommission„c 17701 Q,wnn Ave..Suite 2 Irvine,CA 926 Mayor Pat Burns 949 Members of the City Council City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 RE: Item #10—Tax and Equity Fiscal Responsibility Act (TEFRA) Public Hearing for the Pelican Harbor Apartments Dear Mayor Burns and Honorable Members of the City Council, The Kennedy Commission(the Commission) is a broad-based coalition of residents and community organizations that advocates for the production of homes affordable for families earning less than $30,000 annually in Orange County. Formed in 2001, the Commission has been successful in partnering and working with Orange County jurisdictions to create effective housing and land-use policies that have led to the new construction of homes affordable to lower-income working families. We are writing to support the proposed authorization of up to $20 million in tax-exempt bonds to refinance the acquisition of the Pelican Harbor Apartments (formerly Huntington Beach Senior Housing). Taking proactive steps to facilitate affordable housing assets and for pursuing financing tools that strengthen affordable housing is a crucial part of addressing affordability and accessibility. This bond funding is a critical investment in maintaining the City's affordable housing stock and ensuring long-term housing stability for vulnerable residents. The Pelican Harbor Apartments have long served as a vital housing resource for seniors who depend on stable, affordable rent levels to remain housed within their community. As housing costs continue to rise across Orange County, the preservation of affordable housing is just as important as the creation of new units. Funding mechanisms such as this work to support quality affordable housing developments and uphold the City's commitment to maintaining inclusive housing opportunities for residents of all income levels. Developments like Pelican Harbor are essential to protecting seniors from being priced out of their community due to financial strain or housing insecurity. We urge the City Council to approve the issuance of tax-exempt bonds for the Pelican Harbor Apartments and to continue to support affordable housing stock in Huntington Beach. Doing so MeetingDate: 10/21/25 Supplemental Communication 25-801 Agenda Item No. 1 will ensure continued stability for senior households and help the City advance its long-term housing goals. We look forward to working with the City of Huntington Beach in its continued action to address housing needs and ensuring that the available housing stock supports all members of the community. If you have any questions,please feel free to contact me at(949) 250-0909 or cesarc@kennedycommission.org. Sincerely, Cesar Covarrubias Executive Director 2