Title
[City Council/Housing Authority] I Street Apartments Project: Tax Equity and Fiscal Responsibility Act (TEFRA) Hearing, Approval of Tax Exempt Bonds and Loan Commitment in the Amount of $2 Million [Published 01/13/2026]
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FileID
File ID: 2026-00135
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Location
Location: 1511-1517 I Street, District 4
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Recommendation
Recommendation: Conduct a public hearing and upon conclusion, adopt 1) a City Council Resolution authorizing the Sacramento Housing and Redevelopment Agency (Agency) to a) amend its budget and allocate $2 million in Permanent Local Housing Allocation (PLHA) funds for the acquisition, construction and permanent financing of I Street Apartments (Project), b) approve a Conditional Loan Commitment of $2 million in PLHA funds to Community HousingWorks (Developer), or related entity, c) execute related documents, and d) make related findings; 2) a City Council Resolution indicating the City Council has conducted a TEFRA public hearing related to the proposed construction and financing of the Project; and 3) a Housing Authority Resolution a) indicating the intention of the Housing Authority of the City of Sacramento to issue up to $26.5 million in tax-exempt mortgage revenue bonds to provide acquisition, construction, and permanent financing for the Project, and b) authorizing an application to the California Debt Limit Allocation Committee for allocation authority to issue bonds.
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Contact
Contact: Christine Weichert, Director of Development Finance, (916) 440-1353, cweichert@shra.org, Sacramento Housing and Redevelopment Agency
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Presenter
Presenter: Christine Weichert, Director of Development Finance, (916) 440-1353, cweichert@shra.org, Sacramento Housing and Redevelopment Agency
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Attachments
Attachments:
1-Description/Analysis
2-City Council Resolution
3-Exhibit A to Resolution
4-TEFRA Resolution
5-Inducement Resolution
6-Vicinity Map
7-Site Plan
8-Project Renderings
9-Project Summary
10-Cash Flow Proforma
11-Maximum Income and Rent Limits
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Description/Analysis
IssueDetail
Issue Detail: In accordance with the City Council-adopted Multifamily Housing Lending Guidelines, the Agency has two opportunities each year for affordable housing developers to apply for gap financing. Community HousingWorks (Developer) submitted a pre-application on July 1, 2025, and a full application on September 1, 2025, requesting financing from the Agency in the amount of $2 million of City PLHA funds for the acquisition, construction, and permanent financing of the Project. This report requests approval to allocate funds, execute a loan commitment, and issue tax-exempt bonds not to exceed $26.5 million for the Project.
Development: I Street Apartments is a proposed new construction development located at 1511-1517 I Street, Sacramento, on approximately 0.36 acres. The Project consists of 84 residential units, including 70 one-bedroom/one-bathroom units and 13 two-bedroom/one-bathroom units set aside for households making 30 to 80 percent of the area median income (AMI). One additional two-bedroom unit will be designated for on-site management staff. A vicinity map is included in Attachment 6, a site plan is included in Attachment 7, and renderings of the Project are included in Attachment 8.
The proposed Project consists of one eight-story, dual-loaded corridor apartment building with an elevator. Unit kitchens will include a refrigerator with a freezer combination, an electric oven and range, a dishwasher, and a garbage disposal. All apartments will have high-efficiency lighting and bathroom fans. Split-system air conditioning and forced-air heat will be provided. Apartment kitchens will feature wood-constructed cabinets, solid surface countertops, and stainless steel sinks. Microwave shelving will also be provided. All apartment bathrooms will feature a vanity and a solid surface countertop with a sink. The common areas and amenities will include bicycle storage, a laundry room, an outdoor courtyard with barbecue facilities, seating, a school-aged play area, and picnic tables, as well as indoor community spaces such as a computer room and a community room with a kitchen. The development will include five onsite parking spaces for staff and resident use.
Developer: Community HousingWorks, or related entity, will serve as the Developer. The Developer is a non-profit company founded in 1988 with 53 properties and over 5,000 units of affordable housing in Southern and Northern California, including the Salvator Apartments in Sacramento.
Property Management: The Project will be managed by ConAm. Currently, ConAm manages over 400 properties across the country, including seven in Sacramento, consisting of approximately 54,000 residential units, including approximately 22,700 affordable units. Agency staff have reviewed ConAm’s qualifications and the management plan and have found that the proposed management company meets Agency requirements.
Resident Services: Resident Services will be provided by Achieve, which is related to Community HousingWorks. A minimum of 15 hours per week of on-site resident services will be provided by a full-time resident services coordinator, including 8 hours of after-school programming. Resident services programs will include after-school programs, adult education, skill-building classes, and health and wellness services and programs. Agency staff have reviewed Achieve’s qualifications and the resident services plan and have found that the proposed resident services provider meets Agency requirements.
Security Plan: Agency staff have reviewed and approved the security plan, which includes the addition of security patrol service if needed. The property will have a secure perimeter and will be completely fenced. A keypad/fob entry system will be used for building access. Surveillance cameras and exterior lighting will be used throughout the property.
Project Financing: The project was awarded a $33,280,576 Affordable Housing and Sustainable Communities (AHSC) funding commitment from the California Department of Housing and Community Development on December 10, 2025. The proposed financing of the Project also includes tax-exempt bonds, tax credit equity, a deferred developer fee, and an Agency loan totaling $2 million of PLHA funds to be used for the acquisition, construction, and permanent financing of the Project. A Project Summary and Proforma are included as Attachments 9 and 10.
Low-Income Set Aside Requirements: As a condition of receiving tax credits, federal law requires that developments be set-aside for targeted income groups. Income restrictions from LIHTC financing require that 40 percent of the units have rents that are affordable to households with income up to 60 percent of the AMI. The Agency further requires at least 15 percent of the units to have rents that are affordable to households with income up to 50 percent AMI and at least 5 percent of the units have rents that are affordable to households with income up to 30 percent AMI, based on financial feasibility. The affordability restrictions will be specified in regulatory agreements between the Agency and the Developer. A schedule of maximum income and rents are included as Attachment 11.
Affordability requirements are summarized in the table below:
|
Affordability Restriction (55 years) |
Units |
% of Units |
|
Extremely Low Income (30% AMI) |
26 |
31% |
|
Very Low Income (50% AMI) |
25 |
30% |
|
Low Income (60% AMI) |
22 |
26% |
|
Low Income (80% AMI) |
10 |
12% |
|
Management Unit(s) |
1 |
1% |
|
Total |
84 |
100% |
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PolicyConsiderations
Policy Considerations: The recommended actions are consistent with 1) SHRA’s Multifamily Lending and Mortgage Revenue Bond Policies, priority level 2 (iv) - Other New Construction; 2) the 2021-2029 Housing Element, Policy H-2.3, “Assist in the Development of Affordable Housing.”
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EconomicImpacts
Economic Impacts: This multifamily residential project is expected to create 22.80 total jobs (12.80 direct jobs and 10.00 jobs through indirect and induced activities) and create $3,160,678 in total economic output ($1,942,420 of direct output and another $1,218,258 of output through indirect and induced activities).
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EnvironmentalConsiderations
Environmental Considerations:
California Environmental Quality Act (CEQA): The I Street Apartments project is statutorily exempt from CEQA review pursuant to Cal. Code Regs., tit. 14., section 15268.
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National Environmental Policy Act (NEPA)
National Environmental Policy Act (NEPA): No federal funding is involved in this project and NEPA does not apply.
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Sustainability Considerations
Sustainability Considerations: The Project has been reviewed for consistency with the goals, policies, and targets of the 2040 General Plan. If approved, the Project will advance the following goals, policies, and targets that will directly or indirectly conserve energy resources and reduce greenhouse gas emissions, in part, from the 2040 General Plan: a) Housing Element - Strategies and Policies for Conserving Energy Resources - Climate Action Plan, subsection 7.2: improving the energy efficiency in new buildings; and b) Environmental Resources - Air Quality and Climate Change sub-section 6.1.7: reduce greenhouse gas emissions from new development, promoting water conservation and recycling, promoting development that is compact, mixed-use, pedestrian friendly, and transit oriented; and promoting energy-efficient building design and site planning.
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CommissionAction
Commission Action: Sacramento Housing and Redevelopment Commission: At its January 21, 2026, meeting, it is anticipated that the Sacramento Housing and Redevelopment Commission will adopt a Commission resolution related to the Project and recommend that the City Council and Housing Authority Board consider approval of the recommendations in this report. In the event the Commission does not take the anticipated action, staff will advise the City Council at the meeting.
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Rationale for Recommendation
Rationale for Recommendation: The actions recommended in this report enable the Agency to continue to fulfill its mission of providing a range of affordable housing opportunities in the City and are consistent with the Agency’s approved Multifamily Lending and Mortgage Revenue Bond Policies, and the City of Sacramento’s 2021-2029 Housing Element as part of Sacramento’s 2040 General Plan.
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Financial Considerations
Financial Considerations: The recommended funding for this project is $2 million in PLHA funds. Related to the issuance of bonds, the Agency will receive a one-time fee of 0.25 percent (25 basis points) of the bond amount, which is payable at bond closing. SHRA will collect an annual administrative fee of 0.05 percent (5 basis points) of the outstanding bond amount not less than $15,000, plus a fee equal to $100 per SHRA-funded unit per year, for monitoring the regulatory restrictions and administration of the funds
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LBE - M/WBE and Section 3 Requirements
LBE - M/WBE and Section 3 Requirements: The items discussed in this report have no M/WBE or Section 3 impact; therefore, M/WBE and Section 3 considerations do not apply. LBE considerations do not apply to this report.
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