Title
Authorization of the Sacramento Housing and Redevelopment Agency (SHRA) and the Housing Authority of the City of Sacramento to Enter into and Deliver a Funding Agreement to Provide a SHRA General Revenue Pledge in Connection with the Issuance of Bonds for the Acquisition of The Maven on Broadway
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FileID
File ID: 2026-01771
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Location
Location: 230 Broadway, Sacramento, District 4
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Recommendation
Recommendation: Adopt a City Council Resolution: 1) approving SHRA to provide a joint and several SHRA general revenue pledge as additional credit support for the Bonds by entering into the Funding Agreement and any related intercreditor agreement among SHRA, the Housing Authority of the City of Sacramento and the Housing Authority of the County of Sacramento, 2) authorizing the Executive Director of SHRA to enter into the Funding Agreement and any related intercreditor agreement, if needed 3) making related findings; and Adopt a City Housing Authority Resolution: 1) approve the Housing Authority of The City of Sacramento (“HACS”) to provide a joint and several SHRA general revenue pledge as additional credit support for the Bonds by entering into the Funding Agreement and any related intercreditor agreement among SHRA, the Housing Authority of the City of Sacramento and the Housing Authority of the County of Sacramento, if needed, 2) authorizing the Executive Director of HACS to enter into the Funding Agreement and any related intercreditor agreement 3) making related findings.
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Contact
Contact: Kecia Boulware, Deputy Executive Director, (916) 440-1324, kboulware@shra.org, Sacramento Housing and Redevelopment Agency
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Presenter
Presenter: Kecia Boulware, Deputy Executive Director, (916) 440-1324, kboulware@shra.org, Sacramento Housing and Redevelopment Agency
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Attachments
Attachments:
1-Description/Analysis
2-City Council Resolution
3-Housing Authority Resolution
4-Exhibit A - Funding Agreement
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Description/Analysis
IssueDetail
Issue Detail: The Housing Authority of the City of Sacramento (“HACS”), via its instrumentality Canopy Housing, Inc., and through its partnership with Ethos Real Estate (“Ethos”) is considering the acquisition of a multifamily apartment community, known as The Maven on Broadway, located at 230 Broadway in Council District 4, a newly constructed (2023) Class A multifamily community with 408 units of market rate housing.
On August 24,2026 the seller, who had placed the asset in the market for a public bid process, accepted the Ethos offer with the understanding that HACS would seek approval from its governing bodies to ultimately own the property. This acquisition would create 306 new affordable workforce housing units by converting the current unit mix within a high-quality community and establishing a new non-federal revenue stream that supports HACS's mission.
The unit mix would be adjusted accordingly:
• Market rate units - 102 units (25%)
• 80% Area Median Income (AMI) units - 224 units (54%)
• 50% area median Income (AMI) units - 82 units (21%)
Details below:
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1BR/1BA - 50% AMI • 61 units • In-place rent: $1,708 • Restricted rent: $1,315 • Salary range $46,0001 -$52, 600 |
2BR/2BA- 50% AMI • 21 units • In-place rent: $2,149 • Restricted rent: $1,478 • Salary range $52,600 - $65,700 |
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1BR/1BA-80% AMI • 167 units • In-place rent: $1,776 • Restricted rent: $1,776 • Salary range: $73,600 - $84,100 |
2BR/2BA-80%AMI • 57 units • In-place rent: $2,186 • Proposed Restricted rent: $2,186 • Salary range $84,100 - $105,100 |
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1BR/1BA-Market Rate • 75 units • In-place rent: $1,984 • |
2BR/2BA- Market Rate • 26 units • In-place rent: $2,311 |
Salary range assumes 1-2 persons per bedroom
Because current in-place rents are already aligned with proposed restricted rents, particularly for 80% AMI units, existing households will not experience displacement. Units will be designated using a sort-based method in which vacant units and the lowest-rent occupied units are restricted first to maintain ongoing regulatory compliance.
If approved, the site would be acquired with the proceeds from the issuance of 501(c)3 Bonds issued by The Housing Authority of the City of Sacramento and sold through a public offering. To receive more favorable interest rates on the Bonds, they would need to be enhanced by an SHRA General Revenue Pledge from SHRA to serve as a backstop for the payment of debt service shortfalls on the Bonds.
“SHRA General Revenues” shall mean all revenues of SHRA from any non-restricted source (including cash and cash equivalents, restricted cash and cash equivalents, investments and restricted investments, as reported annually in the year-end audited financial statements of the Sponsor), but only to the extent that those revenues are available to pay the Funding Obligations and are not now or hereafter prohibited, pledged or restricted, by law, regulation, contract, covenant, resolution, deed of trust or otherwise (including restrictions relating to funds made available to the Sponsor under the U.S. Housing Act of 1937), solely to another particular purpose. For example, SHRA would not be able to pledge funds received from the Local Housing Trust Fund, Mixed-Income Housing Ordinance, Permanent Local Housing Allocation, nor any funds received under federal entitlement programs to include but not limited to HOME, CDBG, ESG or HOPWA.
By providing an SHRA General Revenue Pledge, the cost of debt is anticipated to be reduced by up to 2.5 percent, which would equate to $2.5 million in savings on a $100 million bond issuance. Excess cashflow from property operations and debt service payments is retained by the owner of the property, Canopy Housing, Inc., which in this case is an instrumentality of HACS. By lowering the cost of debt there is a corresponding increase in cashflow to the owner.
With the strength and value of the SHRA General Revenue Pledge, SHRA will be able to obtain an Issuer Credit Rating from Standard & Poors that will be shared with bond purchasers. Because SHRA’s audited financial statements consolidate SHRA, HACS, and the Housing Authority of the County of Sacramento (HACoS”), all three entities will need to be included under the Issuer Credit Rating from Standard and Poor’s under their methodology. Thus, neither HACS, HACoS, nor SHRA could obtain its own independent rating based on this requirement of Standard and Poor’s. Without the SHRA General Revenue Pledge from SHRA, Standard and Poors would be unable to assign any rating to the Bonds, which would result in higher borrowing costs for the Project, or significantly impact the marketability of the Bonds to the extent which the Project would no longer be feasible.
Since SHRA is a Joint Powers Authority, it and its members, HACS and the HACoS all must provide a joint and several SHRA General Revenue Pledge and be signatories to the Funding Agreement that will document the pledge to bond holders. SHRA, HACS, and HACoS may enter into an Intercreditor Agreement to determine the source and sequence of funds to be used in the unlikely event there is a Debt Service Shortfall on the Bonds.
A full underwriting for The Maven at Broadway will be presented to this body at a future City Council hearing, at which time SHRA will request approval to proceed with the issuance of the bonds and acquisition of the property.
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PolicyConsiderations
Policy Considerations: No policy changes are recommended.
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EconomicImpacts
Economic Impacts: Not applicable.
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EnvironmentalConsiderations
Environmental Considerations: Pursuant to Cal. Code Regs., tit. 14., section 15378 subds. (b)(2) and (4), the recommended action is not considered a “project,” as it constitutes an administrative activity that will not result in direct or indirect physical changes to the environment.
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Sustainability
Sustainability: Not applicable.
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Commission/Committee Action
Commission Action:
Sacramento Housing and Redevelopment Commission: At its October 21, 2026, meeting, it is anticipated that the Sacramento Housing and Redevelopment Commission will adopt a Commission resolution related to the Project to authorize the Executive Director to execute the funding agreement. In the event the Commission does not take the action anticipated, staff will advise the City Council.
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RationaleforRecommendation
Rationale for Recommendation: The actions recommended in this report support SHRA’s ability to fulfill its mission of providing a range of affordable housing opportunities in the City of Sacramento. The associated Issuer Credit Rating received by SHRA in connection with this bond issuance is valid for a period of five years and can be used to lower the cost of debt financing for other future acquisition or development opportunities, when HACS, or its instrumentality, will be the property owner. With a lower cost of capital, HACS is able to improve its ability to bid competitively for acquisition or development opportunities in the real estate marketplace.
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FinancialConsiderations
Financial Considerations:
Making the SHRA General Revenue Pledge for the Bonds will be noted as a contingent liability in the SHRA audited financial statements nor will a debt obligation be created upon signing of the Funding Agreement.
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LocalBusinessEnterprise
Local Business Enterprise (LBE) - M/WBE and Section 3 requirements:
M/WBE & Section 3 Considerations: The items discussed in this report have no M/WBE or Section 3 impact; therefore, M/WBE and Section 3 considerations do not apply.
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