Laserfiche WebLink
<br />6.2A <br />MHASMC is requesting financial assistance from the Agency for payment of City fees Page 3 <br />and offsite improvements estimated at $90,798 and $159,202 respectively for a total <br />request of $250,000 from Redevelopment Housing Setaside funds. This request is <br />being made because the cost of off-site improvements are not eligible to be paid from <br />HUD 811 funding. City staff is requesting upgrades to infrastructure that will remove <br />blight from this area which is newly zoned for housing. The Cedar Street project does <br />not qualify for CCAG's Transit Oriented Development funds as its location is farther <br />from the Cal Train Station than the standard used. <br /> <br />Owner Participation Agreement & Affordable Housing Covenants <br />The OPA contains the following business terms: <br /> <br />. MHASMC will construct 15 units of supportive housing for mentally disabled <br />adults; 'one unit will be used as Manager's unit, affordable for 55 years. <br />. Rents will be targeted at Very Low Income - 50% of median, and will be <br />subsidized by HUD. <br />. The Agency will provide the Project with a development grant of $250,000 to pay <br />for fees, permits and offsite improvements. <br />. MHASMC will be required to provide evidence to City and Agency that HUD 811 <br />Capital Advance and other funding commitments are in place no later than <br />December 30, 2008. <br />. The Development grant will be disbursed on a to be determined schedule only <br />after MHASMC has obtained commitments for permanent debt, 811 funds and <br />other public and private financing sufficient to fund the project's development <br />costs. MHASMC must provide the Agency with a firm construction contract and <br />other documentation to the satisfaction of the Agency. <br />. If MHASMC is unable to secure sufficient financing to complete the Project <br />without additional funding by the Agency, then the OPA will terminate, the City <br />may lien the property in the amount of City's acquisition assistance ($748,493.67 <br />plus any additional amount disbursed by Agency pursuant to the DDA), and <br />MHASMC will not receive any cash assistance from the City for offsite <br />improvements. <br />. In the event the project does not proceed, MHASMC will be given a reasonable <br />amount of time to provide a CDBG/HOME eligible activity on the site or to pay <br />back funds based on the then current Fair Market Value of the property. <br />. The OPA shall be recorded in second position subordinate to <br />construction/permanent financing only. <br /> <br />Attachment # 2 -Financial Summary Report fully discloses the Agency's financial <br />obligations under the OPA. Attachment # 3 - Project Pro Forma and Operating Budget <br />& Project Cash Flow is also provided. <br /> <br />AL TERNA T1VES <br />The Board and Council could choose not to approve the OPA. <br /> <br />Next Steps <br />Upon approval by the City Council of the proposed Mitigation and Monitoring Plan, the <br />Conditional Use Permit, Planned Development Permit, the General Plan and Zoning <br />Map Amendments, and the Redevelopment Agency Board's Approval of the Owner <br />Participation Agreement, the project's entitlements will become effective and the <br />