AgdaPkt 2005-04-11 - Laserfiche WebLink

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..s. I- A-o5 credits for the project, TCAC will require that all units in the project be affordable to low/very low income persons and families. Thus, ultimately all of the units will be restricted to persons and families of low/very low income; but, the Agency will only get "low/very low income credit" for the 28 units restricted to low/very low income persons in the Amended and Restated DDA. To address this issue of Agency credit for low/very low income units, a provision has been included in the revised DDA which states that in the event the City holds an Article 34 election, and the voters approve it, FCH will agree to a future amendment of the Agency Affordability Covenant which would cause all of the units reserved for persons of moderate income be restricted to low/very low income persons, consistent with the original DDA. IV. Approval of the Proposed Revisions The Redevelopment Manager has the authority to execute the DDA with such non- substantive changes as may be approved by the Redevelopment Manager and/or Agency Counsel. As the proposed revisions to the DDA do not change the amount of Agency assistance to be provided to the project, and because the ultimate number of units to be restricted to low/very low income households, after application of the TCAC restrictions, will remain the same, the proposed changes to the DDA are considered non-substantive and, therefore, do not require any supplemental public hearing or formal Board approval. Additionally, FCH was under severe time constraints to submit an executed DDA with its application for MHP Funds. The application was due to the State on April 1, 2005. Thus, delaying the amendment of the DDA until a formal meeting would have jeopardized FCH's ability to secure approximately $5 million in necessary funding. Based upon the opinion of Agency Counsel Charles Green (attached) that the proposed changes may be considered non-substantive as approved by the Redevelopment Manager, and that the revisions are necessary for the grant application to the State due April 1, 2005, the DDA has been revised to reflect the modifications discussed above and an amended DDA was executed and provided to FCH for the grant application. This enabled FCH to submit the application to the State on April 1st. However, the executed restated DDA is being presented to the Agency Board for ratification as a consent item. A copy of the Amended and Restated DDA is on file in the City Clerk's office. Alternative If the Agency does not ratify the modifications, the transaction will terminate and FCH will have to withdraw their application from the State MHP process. Fiscal Impact None associated with the revisions to the DDA. SM:cje Redev Sh..edl2005 Staff ReportslO4-2005/Amended FCH DDA 3