HomeMy WebLinkAboutMINUTES - 03231999 - C106 Contra
TO: REDEVELOPMENT AGENCY y a••, _ +� Costa
FROM: Phil Batchelor Coufty
Executive Director
DATE: March 23, 1999
SUBJECT: Amendment to the Disposition; Development and Loans Agreement for the Rodeo Senior Housing
Development, Rodeo Redevelopment Project Area
SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
APPROVE and AUTHORIZE the Deputy Director - Redevelopment to increase the amount of the
Development Loan for the Rodeo Senior Housing Project by$425,000 for a total loan amount of$1.325
million; and
APPROVE the amendment to the Disposition, Development and Loan Agreement that provides for the
nein terms of the Development Loart.
FISCAL IMPACT
None to the General Fund. The total amount of the Development Loan is $1.325 million. The
Redevelopment Agency approved and allocated$75,000 in Housing Set-Aside funds to finance a portion
of the predevelopment component of the project. The Redevelopment Agency intends to use future tax
allocation bond proceeds in the amount of$900,000 and a portion of the Developer's purchase price
funds in the amount of$350,000 to fund the balance of the:Development Loan.
BACKGROUND/REASONS FOR RECOMMENDATIONS
In October 6, 1998, the Board of Supervisors and Redevelopment Agency approved a Disposition,
Development and Loan Agreement (DDLA) which provides for the conveyance of certain real property
from the Redevelopment Agency to the nonprofit developer EAII. The DDLA also provides for the use
of redevelopment funds in the amount of$900,000 to construct fifty (50) unfits of affordable rental
housing for low-income seniors. EAH intends to leverage the Redevelopment Agency loan with other
CONTINUED ON ATTACHMENT: X YES SIGNATURE: I r
RECOMMENDATION OF EXECUTIVE DIRECTOR __R c MENDATION OF AGENCY COMMITTEE
APPROVE OTHER i
,i
F
SIGNATURE(S): r'
° -� ACTION OF AGENCY ON
APPROVED AS RECOMMENDED OTHER
VOTE OF COMMISSIONERS
I HEREBY CERTIFY THAT THIS IS A
UNANIMOUS(ABSEN'T' TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE REDEVELOPMENT
AGENCY ON THE DATE SHO'W'N.
Contact: 1-murdes 11. Chang
335-1252 ATTESTED March 23,-193-2-
Cc:
,_ 193-2 Cc: Corr_s.tunity Devclopment PHIL BATCHELOR,
Redevelopincnt Agency AGENCYSECRETARY
County Counsel
County Ad-ministrator
11;Fclitar-C«ntt olio `
l"Al 1Z 12v(1\S l vies Redevelopment Agency139►'' ' DEPUTY
Amendment to the DD LA for
Rodeo Senior Housing Development, Rodeo
March 23, 1993
sources of funds. At the time the DDLA was approved in October 1998, EAH had submitted
applications for funding from various programs, including the U.S. Department of Housing and Urban
Development 202 program (HUD 202 Program), County HOME and CDBG program, Federal
Horne Loan Bank Affordable Housing Program (AIBP), Tosco Refinery, and ether local grant
programs. EAH was successful in securing $128,000 in grant funds from the Rodeo Municipal
Advisory Council and a $1,072,750 loan from County HOME and CDBG funds, However,
additional funds are needed to fill the project's total development budget of$6,6182,163.
In July 1998,EAH applied for but did not receive a Fund Reservation under the HUD 202 Program.
EA1-1 wit! reapply for a Fund Reservation in the first application round in Spring 1999. As an
alternative, EAH will also apply for an allocation of state and federal low-income housing tax credits.
Either the HUD 202 funding or the tax credits will cover a major portion of the development budget.
Assuming that EAH receives funding from one of these two sources, an additional gap of$425,000
still exists.
EAH has requested that the Redevelopment Agency fund the gap of$425,000. In order to submit
an application for tax credits, the Developer must have all sources of funds identified. A funding gap
would disqualify EAH from submitting an application this year; thus, delaying time project. The
Redevelopment Agency loan is needed in case the tax credit deadline occurs prior to EAU obtaining
other funds to fill the gap.
The request to increase the original loan amount by $425,000 for a total loan amount of$1.325
million was approved by the Rodeo Municipal Advisory Council in February 1999. The
Redevelopment Agency loan would be financed using (1) $900,000 in tax allocation bond. proceeds;
(2) $75,000 in previously allocated housing tax increment funds; and (3) the Developer's purchase
price funds in the amount of $350,000. EAH will continue to apply for funds to leverage the
Redevelopment Agency funds. It has a funding application pending with the S.H. Cowell Foundation
and will reapply for an AHP grant in Spring 1999. As stipulated in the amended DDI_,A, the
Redevelopment Agency loan will be reduced by as much as $250,000, should EAH obtain an AMP
grant.