Item 38 - Crossroads at Washington Affordable Housing Project

Home Browse Search

Crossroads at Washington Affordable Housing Project August 17, 2021 Page 4 1 9 7 8 as the oversight agency with the ability to facilitate and help coordinate further inspections and investigations, review and approve appropriate remediation measures and documents, and engage the public as necessary. These activities are necessary for the development of the site. After DTSC approves the remediation measures/documents, DTSC will remain as the oversight agency during the remedial activities. On July 20, 2021, City Council authorized the Executive Director of the Housing Authority to execute the Standard Voluntary Agreement up to an amount not to exceed $40,000 with the County and DTSC for the Project. On February 11, 2021, DTSC selected the Project to be included in their TSI+ program, estimating that approximately $100,000 of additional site assessment services (not retroactive to previously incurred costs) would be provided to conduct a Supplemental Site Investigation with a Human Risk Assessment, and prepare a Cleanup Plan. Funding and associated activities will be assessed and adjusted throughout the duration of the TSI+ program activities. Through this program, DTSC retained GSI Environmental Inc. to evaluate both properties as well as provide findings, cleanup options, and estimated costs for those remediation and cleanup options. TSI+ does not include funding for the remediation, cleanup, or ongoing monitoring; therefore, the Developer will apply for additional funding to cover these additional costs. The findings and recommendations produced through the TSI+ program will allow the Developer to determine the Project’s financial feasibility prior to the September 1, 2021 deadline to accept or return tax credits as further detailed in the section below. Tax Credit Reservation Due to the highly competitive nature of receiving tax credit allocations in California (e.g., competitions are typically oversubscribed by 300%), the Developer was unsuccessful in securing a tax credit reservation in its initial TCAC application submittal during the 2020 First Competitive Application Funding Round in March 2020. The Developer resubmitted a tax credit application in TCAC’s Second Competitive Application Funding Round in July 2020 and was successful in securing a reservation of special, one-time Further Consolidated Appropriations Act, 2020 (“FCAA”) federal credits. As prescribed by the TCAC regulations, if the Developer chooses to accept the reservation of the FCAA credits, the Developer would be subject to $214,772 of non- refundable payments for the required TCAC Allocation Fee ($107,386) and TCAC Performance Deposit ($107,386). If the Developer returns the credits, TCAC will not return the fees. Additionally, the TCAC regulations allow the Developer to return the FCAA credits no later than September 1, 2021 to avoid being assessed negative points for future TCAC applications. Unlike typical 9% TCAC projects which require competitive 9% projects to start construction within 180/194 days of the tax credit award, TCAC’s September 1, 2021 deadline to return FCAA credits for the Project allows flexibility for the Developer to start