City Administrative Officer and Los Angeles Housing Department reports and Resolutions relative to adopting the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) Resolution and Minutes; and issuing a supplemental tax-exempt multifamily housing conduit revenue note in an amount up to $29,739,488; and executing related financing documents for the Prisma Apartments Supportive Housing Project located at 6914 West De Longpre Avenue and 1350-1358 North Orange Drive in Council District 13.

This item authorizes the City of Los Angeles to issue up to $29,739,488 in tax-exempt multifamily housing conduit revenue notes for the Prisma Apartments Supportive Housing Project. Located at 6914 West De Longpre Avenue and 1350-1358 North Orange Drive in Council District 13, this $65,187,077 project will provide 98 units, including 96 affordable/supportive units for seniors (55+).

Key Project Details:

• Affordability: 48 units for formerly homeless seniors (<30% AMI) and 48 units for seniors (<50% AMI). Affordability restrictions will last 55 years.
• Services: Case management and life skills support provided by The People Concern.
• Financing Structure: The City acts as a conduit issuer, bearing no repayment liability. The financing involves a cash-collateralized tax-exempt construction loan from BMO Bank N.A., which will convert to a permanent tax-exempt funding loan from Citibank, N.A. The true interest cost of the bonds is estimated at 4.771755%, with a finance charge of $545,000.
• Funding Sources: Includes $7,341,441 from the LAHD Affordable Housing Managed Pipeline (AHMP) loan and significant federal/state low-income housing tax credit equity.
• Labor Standards: Project labor costs are subject to California prevailing wage and/or federal Davis-Bacon Act requirements.

The City Council also adopted the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) Resolution and Minutes from the public hearing held on August 19, 2025. Citibank requested and LAHD recommended waivers for certain Affordable Housing Bond Policies & Procedures, including allowing specific "Approved Transferees" to own the Governmental Note, waiving investor letters for these transfers, and waiving the $250,000 minimum denomination for beneficial interests in trusts holding the note.