The URL can be used to link to this page

Home My WebLink AboutMINUTES - 04201993 - 1.86 1 -86 = Contra TO: REDEVELOPMENT AGENCY / Costa FROM: Phil Batchelor County Executive Director r; coua DATE: April 20, 1993 SUBJECT: Affordable Housing in the West Pittsburg Redevelopment Project Area SPECIFIC REQUEST(S) OR RECOMMENDATIONS) & BACKGROUND AND JUSTIFICATION RECOMMENDATIONS Adopt resolution authorizing the Executive Director or his Designee to execute a Development Loan Agreement with D & M Development Inc. for the purpose of constructing affordable housing in the West Pittsburg Redevelopment Project Area, and making required findings and actions related hereto. FISCAL IMPACT No impact on the General Fund. A construction loan of $350, 000 will be made from the West Pittsburg Redevelopment Project Area Low and Moderate Income Housing funds. BACKGROUND/REASONS FOR RECOMMENDATIONS On August 11, 1992 , the Board adopted a resolution authorizing the Executive Director to execute a Development Loan Agreement (DLA) with D & M Construction and to make appropriate findings. Among the findings was the requirement that D & M secure additional construction financing from Lamorinda Bank, with whom they were negotiating. The loan from Lamorinda Bank was not attained; therefore, the DLA was- not executed. CONTINUED ON ATTACHMENT: XX YES SIGNATURE: RECOMMENDATI.ON OF EXECUTIVE DIRECTOR RECOMM TION OF AGENCY CQ�SMITTEE APPROVE OTHER / SIGNATURE(S) : ACTION OF AGENCY ON A=ri1 2n ., 1.99-1 APPROVED AS RECOMMENDED X OTHER IT IS BY THE BOARD ORDERED that Resolution No. RA 93-1 is ADOPTED. VOTE OF COMMISSIONERS I HEREBY CERTIFY THAT THIS IS A X UNANIMOUS (ABSENT ) 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: Carole Norris 646-4016 ATTESTED April 20 , 1993 cc: Community Development PHIL BATCHELOR, Redevelopment Agency AGENCY SECRETARY Auditor-Controller via Redevelopment D & M Development BY44 , DEPUTY CNA sra8/affhsgw1).bos Recently, D & M was able to attain a Letter of Commitment for the necessary financing ($575, 000) from Westamerica Bank. It is now proceeding with its plans to construct a ten unit condominium project, which will be affordable for purchase by low- and moderate- income families in West Pittsburg. Staff is recommending approval of a Development Loan Agreement consistent with the terms and conditions contained in the August 11, 1992 Board Order, with the exception that it provides for Westamerica Bank to be the additional construction lender. 1 -66 S THE REDEVELOPMENT AGENCY OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Order on April 20 , 1993 by the following vote: AYES: Commissioners Powers , Smith, Bishop, McPeak and Torlakson NOES: None ABSENT: None ABSTAIN: None RESOLUTION NO. RA 93-1 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 Westamerica Bank. ) W EREAS , the Agency Board authorized negotiations relative to the Agency ' s participation in an affordable housing project to be developed by D & M Development , Inc . ; and YvHEREAS , 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 ; and WIERFAS , 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 ; and 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 ; and WHEREAS , a construction loan of $500 , 000 is being financed by Westamerica National Bank ( the "Bank Loan " ) ; and WMIZEAS , the DLA provides for the Deed of Trust securing the construction loan to be subordinate to the Deed of Trust securing the Bank Loan ; and 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. R7% 93-1 MEREAS , 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 MEREAS , 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 ; and WbHEREAS , Westamerica 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 Westamerica 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 to effectuate 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 here' cwrtify t t:.:a E.;a t uo and correct copy of an action taken end entered on the minutes of the Redevelopmen gency n the date shown. ATTESTED: PHIL TCHELO ,Agency Secretary By JJ&4 Deputy RESOLUTION NO. RA 93-1 cn2/dmres2