HomeMy WebLinkAboutMINUTES - 01072003 - HA2 HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
TO: BOARD OF COMMISSIONERS
FROM: Robert McEwen, Executive Director
DATE: January 7, 2003
SUBJECT: AUTHORIZE THE EXECUTIVE DIRECTOR OF THE HOUSING AUTHORITY OF THE
COUNTY OF CONTRA COSTA TO EXECUTE A PROMISORY NOTE SECURING A
LOAN FROM THE HOUSING AUTHORITY TO DeANZA GARDENS, LIMITED
PARTNERSHIP
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
I. RECOMMENDED ACTION:
AUTHORIZE the Executive Director of the Housing Authority of the County of Contra Costa to
execute the attached short-term Promissory Note securing a loan from the Housing Authority to DeAnza
Gardens, L.P. in the amount of$1,000,000.
11. FINANCIAL IMPACT:
This costs incurred by this action are within the budget approved for the fiscal year 2002.
III. REASONS FOR RECOMMENDATION/BACKGROUND
DeAnza Gardens L.P. will need the proceeds of this, a second, short-term loan of$9,000,000 to
carry forward the development prior to recordation of a construction loan and receipt of proceeds from the
tax credit investor. The costs to be borne by this loan include architectural and engineering contracts,
administration, consultant fees and other related pre-development costs. It is expected that the loan will
be repaid in full, along with the prior loan of$1,000,000 in late March 2003.
IV. CONSEQUENCES OF NEGATIVE ACTION:
Should the Board of Commissioners elect not to authorize the Executive Director of the Housing
Authority of the County of Contra Costa to execute this Promissory Note, the Housing Authority may be
unable to proceed with the replacement of 86 existing sixty year old Public Housing units with 180 new
affordable housing units.
CONTINUED ON ATTACHMENT: X YES SIGNATURE
RECOMMENDATION OF EXECUTIVE DIRECTOR RECOMMENDATION OF BOARD
COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON `k4 i �r€ : f APPROVED AS RECO
; ENDED OTHER
VOTE OF COMMISSIONERS
I HEREBY CERTIFY THAT THIS IS A
UNANIMOUS (ABSENT TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE BOARD OF
COMMISSIONERS ON THE DATE SHOWN.
�.r
JOHN S ETEV CLERIrc�'OF
THE BOARD OF COMMISSIONERS
AND COUNTY ADMINISTRATOR
Y
DEPUTY
l i;:Ucardoza\DeAnz"oardResol ution/PromissoryNote\121702.w\
PROMISSORY NOTE,Number 2
$1,000,000 Martinez, California
January 7 2003
FOR VALUE RECEIVED, DeAnza Gardens, a California Limited Partnership (the
"Obligor"),promises to pay to the Housing Authority of the County of Contra Costa(the
"Housing Authority"), the sum of One Million Dollars ($1,000,000) (the "Funds").
1. Purpose. This promissory note (the "Note") evidences the obligation of the Obligor
to pay the Funds to the Housing Authority as reimbursement for costs incurred by the Housing
Authority on behalf of the Obligor in the development of a one-hundred eighty (180)unit
affordable housing development in Bay Point, California(the"Project").
2. Interest. This Note shall bear interest at the rate of six percent(6%).
3. Term. The term of this Note(the "Term") shall begin on the date of execution of this
Note and shall terminate one(1)year from the date of this Note.
4. Payment. Payment due under this Note shall be due and payable upon the expiration
of the Term. The Obligor may prepay all, or a portion, of the Funds at any time without penalty.
5. Security. In the event that the Obligor obtains fee title to the real property for the
Project prior to the end of the Term, then the Obligor and the Housing Authority shall take the
necessary actions required to record a deed of trust against the Property to secure this Note and
the Obligor,nor any partner of the Obligor shall have any direct or indirect personal liability for
payment of the principal of, or interest on,this Note.
6. Manner and Place of Payment. Payment due under this Note shall be payable in
lawful money of the United States of America at the principal office of the Housing Authority as
indicated in Section 7 below, or at such other address as the Housing Authority may designate in
writing.
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7. Notices Demands and Communications. Formal notices, demands, and
communications between the Parties shall be sufficiently given if, and shall not be deemed given
unless, dispatched by registered or certified mail, postage prepaid, return receipt requested, or
delivered by express delivery service, return receipt requested,or personal delivery with a
delivery receipt, as follows:
The Housing Authority:
The Housing Authority of County of Contra Costa
3133 Estudillo Street
Martinez, CA 94553
Obligor:
DeAnza Gardens, L.P.
c/o DeAnza Housing Corporation
3133 Estudillo Street
Martinez, CA 94553
Such written notices, demands and communications may be sent in the same manner to
such other addresses as the affected entity may from time to time designate as provided in this
Section 7. Receipt shall be deemed to have occurred on the date shown on a written receipt as
the date of delivery,refusal of delivery, or the date the notice was returned as undeliverable.
OBLIGOR:
DEANZA GARDENS, a California Limited Partnership
By: DEANZA HOUSING CORPORATION, a
California nonprofit public benefit corporation, its
managing general partner
By:
Name:
Its:
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