AgdaPkt 2008-04-28 - Laserfiche WebLink

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6.18 Page 1 April 28, 2008 SUBJECT Amendment No. 1 to the Disposition and Development Agreement with Peninsula Habitat for Humanity for the Lincoln Town Home Project RECOMMENDATION That the Redevelopment Agency Board: 1. Approve by resolution Amendment No. 1 to the Disposition and Development Agreement (DDA) with Peninsula Habitat for Humanity (PHfH) for the Lincoln Town Home project (see Attachment 2), and 2. Approve and appropriate $632,826.75 of Redevelopment Housing Set Aside funds (Acct. No. 806-71953) for the Peninsula Habitat for Humanity Lincoln Town Homes project (Acct. No. 806-71626). BACKGROUND In December 2000, the Agency purchased the site bounded by EI Camino Real. Vera Street, and Lincoln Avenue. A combination of HOME, CDBG, and Agency Housing set- aside funds were used for the purpose of conveying the site to non-profit affordable housing developers. In January 2004, PHfH and First Community Housing (FCH) submitted a joint proposal to the Agency for the construction of approximately 8 very low to low income ownership town homes and 60 very low income rental apartments. The Agency executed exclusive right to negotiate (ERN) agreements with both PHfH and FCH to further evaluate the feasibility of the projects and the need for Agency financial assistance. On January 24,2005, the Agency approved a Disposition and Development Agreement ("DDA" or the "Original Agreement") with FCH for the development of 58 very low and extremely low income rental units. The build out of this phase of the . EI Camino RealNera Avenue site was completed in September 2007. On March 14, 2005, the Redevelopment Agency entered into a DDA with PHfH for the construction of 8 very low to low income ownership town homes. This transaction with PHfH will build out the Lincoln Avenue parcel of the site originally purchased by the Agency. The project is to be constructed at 124-126 Lincoln Avenue which was part of the EI Camino Real, Vera Street, and Lincoln Avenue site acquisition. Under the terms of the DDA the Agency conveyed the site to PHfH at no cost (the Land Grant of $807,500) in August 2007. The City also agreed to provide a development grant of $321.000 from COSG funds, and provide the project with a water facility fee subsidy to be used solely to pay water facility fees charged to the project. The fee amount for the project has not been determined, however the subsidy shall not exceed $74,000. Additionally. the City Council approved $311,826.75 in HOME funds in the