AgdaPkt 2019-12-16 Joint SA PFA - Laserfiche WebLink

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6.J.- Page 3of13 ANALYSIS If approved by the City Council, this action would result in the City issuing a commitment letter to the Partnership representing the City's funding commitment for the project and will allow ROEM/the Partnership to obtain and secure private funds necessary to construct the project. The $3.5 million loan from the City represents a subsidy of $28,000 per unit, a fraction of the subsidy usually required for affordable housing developments. The funds will be made available as a loan under the following terms: • Interest Rate: 3% • Term of Affordability: 57 years from construction closing • Term of the Loan: 57 years from construction closing • Repayment: Annual payments based on 50% of residual receipts as defined in the loan agreement. When other public funding is involved, the City will negotiate the payment of residual receipts • Collateral: Deed of Trust and Regulatory Agreement City funding sources identified for the Project are listed in Table 2 below: Table 2 SOURCE OF CITY Account CURRENT AMOUNT NEEDED BALANCE FUNDS AMOUNT IN FOR ROEM FUNDING REMAINING IN FUND COMMITMENT FUND Housing in Lieu Account $2,172,261.22 $747,261.22 $1,425,000.00* Funds 296 Affordable Housing Account $1,537,636.40 $512,414.13 $1,025,222.27 Funds (Impact fees, 299 Transient Occupancy Tax from Short Term Rentals and AB1717 Prepaid Cellular surcharge fees) Redevelopment Account $2,240,324.65 $2,240,324.65 0 Housing Successor 292 Funds TOTAL AMOUNT $3,500,000.00 FUNDED *Balance of $1,425,000 in -lieu funds committed to Habitat for Humanity 20 unit for sale project at 612 Jefferson. Page 3 of 5 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org 347