AgdaPkt 2017-06-26 Closed and Joint SA PFA

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· One unit available to households at or below 60% of the AMI (considered “very low income” under HUD HOME program regulations) · One unit available to very low income households at or below 50% of the AMI with a preference for a Section 8 voucher holder. Project Budget for Use of Redwood City Funds HHDC is requesting $1,099,000 in funds from the City of Redwood City to assist with the property acquisition cost of $3,000,000 for 1512 Stafford. HHDC proposes to purchase Stafford using a variety of sources including: 1. Private loan from Boston Private Bank 2. Loan from Redwood City Affordable Housing Fund 3. Redwood City CDBG/HOME funds 4. Loan from San Mateo County ARAPP fund 5. HIP Housing direct contribution 6. Contribution of a HIP Housing donor. The uses of City funds include primarily the purchase price, financing costs and a capitalized replacement reserve that will serve to enable the repair and upgrade of this building’s systems now and over time. HHDC submitted the following documents, which were reviewed by staff to confirm due diligence was conducted for this potential purchase of the property and for evaluation of this funding request: · Appraisal · Rent Roll · Proforma · Title Report · Physical Needs Assessment · Phase 1 Report · Letter of commitment from private lender Boston Private Bank Commitment of City Funds and Loan Terms The commitment of City funds for this project would be contingent upon development of loan documents that would be subject to Council approval on or before June 1, 2017 in order to accommodate the close of escrow timing. The recommended loan terms for the $1,099,000 of Affordable Housing Funds are a 3% simple interest, 55 year, residual receipts loan with a requirement to maintain the affordability levels set forth above. The loan and any amendments could be subordinated to loan documents necessary for the project financing. 6.3.E. - Page 6