HomeMy WebLinkAboutMINUTES - 07281992 - 1.74 THE REDEVELOPMENT AGENCY OF CONTRA COSTA COUNTY, CALIFORNIA
Adopted this Order on July 28 , 1992 by the following vote:
AYES: Commissioners Powers , Fanden , Schroder , Torlakson and McPeak
NOES: None
ABSENT: None '
ABSTAIN: None
RESOLUTION NO. RA 92-6
SUBJECT: (Authorization of Subordination )
(of Contra Costa County Redevelopment )
(Agency ("Agency") Financial Interest )
(in the North Richmond Redevelopment )
(Project Area Affordable Housing Infill)
(Project to Deed of Trust Securing )
(Permanant Loans. )
WHEREAS, the Agency has entered into ' a Disposition and
Development Agreement ("DDA") with Lenheim and Mitchell dated as of
September 24, 1991;
WHEREAS, pursuant to the DDA, the Agency will provide a
subsidy in the form of a land writedown and additional mortgage
assistance to construct a seven unit project (the "Project")
affordable to lower income homebuyers;
WHEREAS, permanent financing for the loans is being provided
by qualified lenders (the "Lender") under the County Mortgage
Credit Certificate Program (the "Bank Loan") ;
WHEREAS, the Lender requires the Agency to pledge its
financial interest in the Property to secure the Bank Loan;
WHEREAS, the Agency will obtain written commitments from the
Lender reasonably designed to protect the Agency's investment in
the event of default under the Bank Loan, including notice of
default to the Agency and an opportunity by the Agency to cure
defaults under the Bank Loan;
WHEREAS, the Agency has determined that no economically
feasible alternative method of financing the Project on terms
substantially comparable to the- Bank Loan, but without
subordination of the Agency's Affordability and Resale
Restrictions, is available to the Agency;.
WHEREAS, Section 33334 . 14 of the Health and Safety Code
requires that certain findings be made by the Agency prior to
subordination of the Affordability and Resale Restrictions.
Therefore, the Redevelopment Agency hereby resolves as follows:
1. The Agency finds that no economically feasible alternative
method of financing the Project on terms substantially similar to
the terms of the Bank Loan, but without subordination of the
Agency's Affordability and Resale Restrictions, is reasonably
available to the� Agency.
2 . The Agency finds that the Lender requires the Agency ,to
pledge its fee interest in the Project to secure the Bank Loan.
3 . The Agency finds that the Lender will not consent to
subordinate the deed of trust securing the Bank Loan to the
Agency's Affordability and Resale Restrictions.
4 . The Agency shall pledge its financial interest in the
Project to secure the Bank Loan for so long as it is outstanding,
and will cause its Affordability and Resale Restrictions to be in
a subordinate position to the position of the Deed of Trust
securing the Bank Loan.
5. The Executive Director or his Designee is authorized to
execute all documents necessary and proper to effectuate the
Agency's pledge of its financial interest in the Project, to
subordinate the Affordability and Resale Restrictions to the Bank
Loan.
1 hereby certify that this 13 a true and correel copy of
an action taken and entered on the minutes of the
Redevefopmen ge cY on the date shown
ATTESTED:
PH AT EL O .Agency Secretary
O
eY Deputy
CC : Community Development
Redevelopment Agency
Goldfarb and Lipman
BAsubore.=
RESOLUTION NO. RA 92_6
-wil CG i:;.C.