Laserfiche WebLink
8 <br /> <br /> <br />Proposed project affordability restrictions, special eligibility conditions: affordability term of 55 years from <br />date of Certificate of Occupancy. Loan term is 57 years from Certificate of Occupancy. Rents cannot <br />exceed Health & Safety Code rent definitions (Sec. 50053) and occupancy standards (Sec. 50052.5(h)). <br /> <br />The project has $2,502,136 City HOME funding or $208,511 of HOME funds per the 12 City HOME- <br />restricted unit. The project is a new construction and will have a HOME affordability term of 20 years <br />pursuant to 24 CFR 92.252(d)(4). <br /> <br />Local Preference: the City will impose its local preference on all city-restricted units, to the extent <br />permitted by law. If the project is awarded County funds then an analysis will be conducted following the <br />County’s local preference requirements. <br /> <br />Proposed City Loan terms (length of term, interest, etc.): 57-year term starting from the Certificate of <br />Occupancy with 3% simple interest and loan will be repaid from the City’s share of residual receipts, based <br />upon the principal balance of all residual receipt loans <br /> <br />Cash flow and Operating Budget: Project maintains a positive cashflow over 20 years and has a debt <br />service ratio of 1.14 during the first year of operations and 1.37 in year 15. The required replacement <br />reserve per unit, operating expenses, and income escalation rates are included. This meets and <br />exceeds the City requirements of having at least 1.00 to 1.15 debt coverage ratio. <br /> <br />Selection Process: City staff reviewed the project’s application submittal, verified that it met threshold, <br />scored it, and evaluated per the NOFA guidelines. <br /> <br />Is this project feasible with these loan terms: Yes <br /> <br />Relocation: No one is being relocated. <br /> <br />Davis Bacon: Development will have approximately 12 City floating HOME-assisted units. Davis Bacon is <br />required for projects that have at least 12 HOME- assisted units. <br /> <br />State Prevailing Wages: Project is required to pay applicable prevailing wages to construct the project. <br />Pursuant to SB35, the Applicant will also be required to pay all contractors and subcontractors on the <br />project at least the general prevailing rate of per diem wages and will require skilled and trained <br />workforce. <br /> <br />Subsidy Limit: The total City RDA LMIHF and Housing Impact Fee is $9,824,324. The propsoed maximum <br />subsidy limit is $300,000 per unit. Under this requirement, the project will have approximately 33 City <br />restricted units or approximately $298,000 subsidy/ per unit. The project meets the City’s requirement. <br /> <br />Project has $2,502,136 in HOME funding and will require 12 City HOME restricted units based on the 2025 <br />HOME Max Subsidy Limits below. <br /> <br />The total City restricted units with RDA LMIHF, Housing Impact Fee, and City HOME funds are <br />approximately 45 units. <br /> <br />9.A. - Page 26 of 37 <br />492