Daly City council approves resolution authorizing tax-exempt bonds (up to $25M) for 72-unit Eastmore affordable housing project

Daly City's City Council on Feb. 9 approved a resolution authorizing issuance of tax-exempt bonds to support a planned 72-unit mixed-use affordable housing project at Sullivan and Eastmore.

Staff described the project as a mixed-use, 72-unit building that will be financed through the California Statewide Community Development Authority on behalf of Eastbourne Multifamily LP. Presenter Langhausen told council the authority's bonding would not exceed $25,000,000 and that the hearing is required under state tax-equity and fiscal-responsibility procedures.

Project materials and staff recounted that the city previously provided conditional allocations in 2022 of HOME and HOME-ARP funds (each $1,100,000) and up to $2,900,000 in PLHA funds to help close a developer-estimated funding gap of about $13,200,000. Staff said the project has been delayed while funding was secured and that construction is expected to begin soon now that the financing mechanism is in place.

A Core Communities representative (Christy Marbury) was present for questions. Councilmembers spoke in support of the project as long-overdue and beneficial for increasing affordable housing supply on the Eastmore corner. Councilmember Manalo moved to adopt the resolution; councilmember DiGiovanni seconded. A roll-call vote recorded all five councilmembers voting "aye," and the motion passed.

Next steps: city staff and the financing authority will proceed with issuance under the authority's terms, and the developer will move forward with acquisition/construction subject to the authority's bond process and any remaining local conditions.