HomeMy WebLinkAboutMINUTES - 08111992 - 1.103 THE REDEVELOPMENT AGENCY OF CONTRA COSTA COUNTY, CALIFORNIA
Adopted this Order on August 11 , 1992 by the following vote:
AYES: Commissioners. Powers , Fanden, Schroder, Torlakson and McPeak
NOES: None
ABSENT: None
i
ABSTAIN:None
RESOLUTION NO. RA 92-5
SUBJECT: (Approving Development Loan Agreement with D & M )
(Development, Inc. and Authorizing Subordination )
(of Agency Financial Interest in the Anchor Cove )
(Project in the West Pittsburg Project Area to )
(Deed of Trust Securing Construction Loan, made )
(by Lamorinda Bank. )
WHEREAS, the Agency Board authorized negotiations relative to
the Agency's participation in an affordable housing project to be
developed by D & M Development, Inc. ;
WHEREAS, the Agency intends to enter into a Development Loan
Agreement ("DLA") to provide $350,000 Loan for construction of D &
M Development, Inc. 's affordable housing project in the West
Pittsburg Redevelopment Project Area;
WHEREAS, the DLA will provide that a minimum of $250, 000 of
the Agency loan shall be repaid by D & M Development, Inc. for
proceeds of sale of the homes, and that a maximum of $100, 000 will
be rolled-over by the Agency into second mortgages for five lower
income homebuyers
WHEREAS, the Agency intends to utilize its Low and Moderate
Income Housing Funds to provide this assistance; and
WHEREAS, the Agency intends to include purchase and occupancy
restrictions required to be imposed on five units in the Project
pursuant to Health and Safety Code Section 33334. 3 (f.) (the
"Affordability Requirements") ; and
WHEREAS, the DLA also provides that each of the five
homebuyers receiving Agency second mortgage assistance will execute
a Resale Restriction Agreement and Option to Purchase with the
Agency;
WHEREAS, a construction loan of $500, 000 is being financed by
Lamorinda National Bank (the "Bank Loan") ;
WHEREAS, the DLA provides for the Deed of Trust securing the
construction loan to be subordinate to the Deed of Trust securing
the Bank Loan;
WHEREAS, the Bank requires the Agency to subordinate the
Affordability Requirements to the Deed of Trust securing the Bank
Loan; and to the Bank Loan; and
RESOLUTION NO. RA,'92-5
WHEREAS, the Agency has determined that there is no
economically feasible alternative method of financing the
construction of the Project on terms substantially comparable to
the Bank Loan, but without subordination of the Agency's
Affordability Restrictions, and
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 Restrictions.
WHEREAS, Lamorinda Bank will service any loan of the Agency
pursuant to a Loan Servicing Agreement.
Therefore, the Redevelopment Agency hereby resolves as follows:
1. The Development Loan Agreement (DLA) with D & M Development,
Inc. is approved in substantially the form before this Board.
2 : The Agency finds that the Bank requires the Agency to
subordinate its Affordability Restrictions to the Deed of
Trust securing the Bank Loan.
3 . 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.
4. Based on the foregoing and in accordance with Health and
Safety Code Section 33334 . 14 (a) the Agency may cause its
Affordability 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 the DLA, the Loan Servicing Agreement with Lamorinda
Bank, all documents necessary and proper to subordinate the .
Affordability Restrictions to the Deed of Trust securing the
Bank Loan, and all other documents necessary and proper to
effectuate the Agency's pledge of its fee interest in the
Property and to close the construction loan.
6. The Executive Director of his Designee is hereby authorized to
make the findings required by Health and Safety Code Section
33334. 14 (a) on behalf of the Agency to permit subordination of
the Resale Restriction Agreements to the first mortgage loans
obtained by homebuyers to finance the purchase of Anchor Cove*
units, and toeffectuate such . subordination, if evidence is
presented that reasonably demonstrates that an economically
feasible alternative type of first mortgage is not reasonably
available to the homebuyers on comparable terms and conditions
without such subordination.
7. This Resolution shall become effective immediately upon its
passage and adoption.
1 hereby certify that this is a true and correct copy of
an action taken and entered on the minutes of the
Redevelopment Agency on the date shown.
ATTESTED: A n gn,t 1 1 , 199?
cc: Community Development pHlBATCIi�cLO ,AgencySecretary
Redevelopment Agency
Public Works-Real Prop. 4
Auditor-Controller By Deputy
RESOLUTION NO. RA 92-5
cn2/dmres