HomeMy WebLinkAboutMINUTES - 05041993 - 1.56 1 -56
TO: REDEVELOPMENT AGENCY ' f 7 Contra
FROM: Phil Batchelor °'
_ Costa
Executive Director J
County
r� c JhS
DATE: May 4, 1993
SUBJECT: Agency Purchase of Two Homes in the North Richmond Redevelopment
Project Area
SPECIFIC REQUEST(S) OR RECOMMENDATIONS (S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
Authorize the Executive Director or his designee to purchase two of
the - homes in the Agency sponsored seven unit infill housing project
located in the North Richmond Redevelopment Project Area.
FISCAL IMPACT
No impact on the General Fund. Of the total of $235,000, $40,000 will
come from the North Richmond Low/Moderate Housing Fund, account no.
289301, and $195, 000 will come from the Affordable Housing Special
Revenue Fund, account no. 111300 .
BACKGROUND/REASONS FOR RECOMMENDATIONS
On February 28, 1989, the Agency entered into a Disposition and
Development Agreement (DDA) with A.T.A.P. International to undertake
a seven unit affordable infill housing project for lower income
homebuyers . The Agency had been awarded a Community Development Block
Grant (CDBG) of $206,000 for partial funding of this project. The
remaining funds were to be a combination of the developer' s equity,
conventional financing, tax increment funds, and, if necessary, money
from the Affordable Housing Trust Fund. On February 27, 1991, the
construction lender foreclosed on A.T.A.P. because the developer ran
out of funds and was unable to complete the project.
The Agency, in cooperation with the construction lender, sought to
identify a new developer to complete the housing project. On February
11, 1992, the Agency entered into a' DDA with Lenheim and Michell,
CONTINUED ON ATTACHMENT: YES SIGNATURE: `
RECOMMENDATION OF EXECUTIVE DIRECTOR RECATION 0# AGENCYCOMM IPEE
APPROVE OTHER r/
..
SIGNATURE(S) :
ACTION OF AGENCY ON may _-A APPROVED AS RECOMMENDED X OTHER —
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: Beth Lee
646-4076 ATTESTED May 4 , 1993
cc: Community Development PHIL BATCHELOR,
AGENCY SECRETARY
BY , DEPUTY
Inc. , to complete the seven unit housing project for lower income
homebuyers.
Lenheim and Mitchell, Inc. has completed the project as per the DDA
and five of the units have been sold to lower income homebuyers.
The developer and Agency have been unable to find homebuyers for
the remaining two units . Meanwhile, the new construction lender
and the original investor group, who have a second mortgage on the
properties, have noticed the relevant parties that their loans are
past due and are requesting full payment.
To prevent a second foreclosure of the properties and to maintain
the affordable housing goals, the Agency will purchase the two
remaining units . The Agency will continue to work with the
developer to identify two lower income homebuyers . Agency staff
shall negotiate an implementation agreement or minor amendment to
the DDA which will set forth the Agency' s and Developer's
obligations with respect to the Agency's purchase of the homes .