HomeMy WebLinkAboutMINUTES - 07242001 - C.100 '6'O: REDEVELOPMENT AGENCY Contra
FROM: John Sweeten �"�- Costa
H- �;: o
Executive Director �;>::._-.:.:J
County
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DATE: July 24, 2001
SUBJECT: Second Amendment to Disposition, Development and Loan Agreement — Rodeo Senior
Housing Project, Rodeo
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
APPROVE and AUTHORIZE the Deputy Director-Redevelopment to execute a Second Amendment
to the Disposition, Development and Loan Agreement with the Ecumenical Association for Housing,
Inc. for an affordable housing project in the Rodeo Redevelopment Project Area.
FISCAL IMPACT
No impact on the General Fund. The total loan amount is unchanged at $1,325,000, which has been
provided for in the Agency's 2000-01 adopted budget.
BACKGROUND/REASONS FOR RECOMMENDATIONS
A major goal of the Rodeo Redevelopment Plan is to improve and expand the supply of affordable
housing in the Project Area. The Rodeo Senior Housing project is a first crucial step in achieving this
goal. The Rodeo Municipal Advisory Council (MAC)has been a strong supporter of and has allocated
redevelopment tax increment funds to this project for more than three years.
On October 6, 1998, the Redevelopment Agency entered into a Disposition, Development and Loan
Agreement(DLA)with Ecumenical Association for Housing,Inc. (EAH). The agreement provided for
EAH to undertake the development of an affordable senior housing project in the Rodeo Redevelopment
Project Area. In the fall of 1999 EAH successfully secured an award of the Department of Housing and
Urban Development (HUD) Section 202 funding for this project.
CONTINUED ON ATTACHMENT: X YES SIGNATURE:
✓RECOMMENDATION OF EXECUTIVE DIRECTOR COMMENIJ ION OF AGE CY
COMMITTEE
APPROVE OTHER
SIGNATURE(S): '
ACTION OF
AGENCY ON 1 24 2001 APPROVED AS RECOMMENDED X OTHER
VOTE OF COMMISSIONERS
I HEREBY CERTIFY THAT THIS IS A
X UNANIMOUS (ABSENT #IV ) TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE REDEVELOPMENT
AGENCY ON THE DATE SHOWN.
Contact: Beth Lee, 335-1256 ATTESTED July 24, 2001
Orig: Redevelopment Agency JOHN SWEETEN,
cc: Community Development AGEN SECRETARY
Redevelopment
Auditor-Controller
Via Redevelopment BY , DEPUTY
EAH
On April 11, 2000, the DLA was amended to incorporate $138,000 in Tosco Good Neighbor Agreement
Funds,administered by the Rodeo MAC,into the financial assistance being provided to EAH for the Rodeo
Senior Housing project.
The purpose of this Amendment is to provide the technical consistency necessary for the use of HUD funds
and to change the proposed use of the Agency assistance. Specifically,the second amendment provides for
the following:
1. The conveyance of the property from the Agency to EAH will occur simultaneously with the
closing of the HUD 202 Capital Advance (as required by HUD);
2. Extension of dates relative to the development and construction schedule as identified in the
DLA;
3. Removing the requirement that an award of the Affordable Housing Partnership (AHP)
funds would reduce the Agency obligation;
4. Incorporated the HUD-Required Provisions Rider; and
5. Provide for a larger amount of the Agency obligation to be used for predevelopment, rather
than construction,and any remaining predevelopment funds to be used to fund construction
expenditures.
The redevelopment funds are structured as a residual receipts loan secured by a promissory note and deed of
trust against the land and planned improvements.
The potential benefits to the Project Area from the construction of the Rodeo Senior Housing project are
significant because it will assist the Agency/County in meeting its affordable housing requirements by
providing much needed affordable rental housing for lower-income seniors.
C: rodeo sr. hsg\amend2.bos