Laserfiche WebLink
ATTY/RESO.0053/CC RESO AMENDING AFFORDABLE HOUSING PRESERVATION PROGRAM – EXHIBIT A <br />REV: 08-19-24 LF <br />Page 7 of 19 <br />Developer fee 10% of total project cost <br /> <br />Deferred fee may be paid after all required <br />operating costs and asset management fees <br />but prior to residual receipts payments. <br />Replacement reserves $500/unit deposited from cash flow on an <br />annual basis over the 20-year period <br />increasing by applicable Consumer Price <br />Index for San Francisco-Oakland-Hayward <br />area every 5 years, or the equivalent thereof <br />up-front <br /> <br />Reserves must be justified by Physical <br />Needs Assessment and must exceed the <br />minimum if necessary. <br />Capitalized operating reserves Minimum 3 months’ expenses, including: hard <br />debt, monitoring fees, and replacement <br />reserves <br />Debt coverage ratio 1.1-1.25 over the first 15 years of cash flow or <br />loan term (whichever is longer) <br />City Subsidy limit $300,000/unit <br />Asset management fee Maximum $25,000/year with 3.5% escalator <br />Subordination City will subordinate its deed of trust to <br />lenders with a greater investment (senior <br />lenders). <br /> <br />City will not subordinate its regulatory <br />agreement to any deed of trust, but will <br />subordinate its regulatory agreement to a <br />senior lender’s regulatory agreement. <br />Insurance See Exhibit A, Insurance Requirements. The <br />City Manager is authorized to make <br />modifications to the Insurance Requirements <br />as the City’s Risk Manager deems necessary <br />or sufficient to effectuate the Program under <br />the circumstances subject to City Attorney <br />approval. <br />Hard cost contingency At least 20% of hard costs, including general <br />requirements, overhead, profit, and <br />contractor’s contingency <br />Soft cost contingency At least 5% of all costs except acquisition, <br />hard costs, reserves, and developer fees <br />Relocation Displacement or permanent relocation of <br />existing tenants is not allowed. Temporary <br />relocation during a renovation is allowed. All <br />relocation must follow applicable state and <br />federal relocation laws. <br />Local Preference Eligible households that live (or have ever <br />lived), work, or have been offered work in <br />Redwood City must be given preference for <br />6.M. - Page 12 of 110 <br />468