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7 . l� - 3 <br /> b. The Agency will provide the project with a Development Grant of $321,000 to be <br /> used to fund a portion of construction costs. The Development Grant will be funded <br /> as part of the FY 2004/05 CDBG budget, which allocated $354,850 to the EI <br /> Camino & Vera Avenue project. <br /> c. The Development Grant will be disbursed on a to-be determined schedule only after <br /> PHH has obtained commitments for debt, equity funds, and subsidy funds sufficient <br /> to fund the project's development costs. If PHH is unable to secure sufficient funds <br /> to complete the project without additional funding from the Agency, the DDA will <br /> terminate, the property will not transfer to PHH, and PHH will not receive any cash <br /> assistance from the City. <br /> d. The Agency will provide the project with a water facility fee subsidy (Fee Subsidy) <br /> to be used solely to pay water facility fees charged to the project. The fee amount <br /> for the project has not yet been determined, however the Fee Subsidy shall not <br /> exceed $74,000. <br /> e. The Agency does not currently have sufficient funds in place to fully fund the <br /> Development Grant and Fee Subsidy. The Agency will seek approval during the <br /> fiscal year 2005/06 budget process for additional funding for the project in the <br /> estimated amount of $41,000. <br /> The Developer is responsible for developing the project in accordance with the terms of <br /> the Disposition and Development Agreement, as follows. <br /> a. Developer will secure all necessary entitlements for the project description. <br /> b. Developer will be required to obtain commitments for debt, equity, and subsidy <br /> sources sufficient to fund the projecYs development costs prior to the conveyance of <br /> the property and the funding of the Agency Development Grant. If PHH is unable to <br /> secure sufficient financing to complete the Project without additional funding by the <br /> Agency, then the DDA will terminate, the property will not transferto PHH, and PHH <br /> will not receive any cash assistance form the City. <br /> c. Developer shall construct the project consistent with the above project description. <br /> d. Developer shall be responsible for funding all development costs (predevelopment, <br /> land improvements, and building improvements) beyond the Agency's cash <br /> contribution of $321,000 plus a yet-to-be determined Fee Subsidy of no more than <br /> $74,000. <br /> e. The ownership units will carry 45-year affordability covenants limiting ownership to <br /> very low income households and occupancy costs to levels affordable to very low <br /> income households. <br /> f. Developer will market the units in accordance with a marketing plan to be <br /> developed by Agency staff. <br /> g. Developer covenants to pay prevailing wages pursuant to Agency Resolution No. <br /> RD-8-807 and state and federal law. <br /> Fiscal Impact <br /> In the FY 2004/05 CDBG budget, $354,850 was allocated for the EI Camino & Vera <br /> Avenue project. These funds will be used to fund the Development Grant of $321,000 and <br /> Redevelopmentshared/2005 Staff Reports/02-2005/PHH DDA Page 3 of 4 <br />