AgdaPkt 2003-03-24 - Laserfiche WebLink

Browse Search

4,9/ FORT To Redevelopment /tgency; „ Board From the Executive Director March 24, 2003 Subject Approve Funding Agreement with MP Redwood Court Associates Recommendation That the Board approve the Agreement with MP Redwood Court Associates for funding to rehabilitate Redwood Court apartments; Authorize the Executive Director to execute same and any documents necessary to effectuate the transaction, and ; allocate $500,000 in RDA Housing funds. Background In 1982, the City and County deeded abandoned streets at Chestnut and Spruce Streets to MidPeninsula Housing Coalition (MPHC) to build affordable housing. MPHC formed Redwood Court Associates (RCA) and built 27 two and three bedroom units for low- income families at 622 Chestnut and 635 Spruce Streets. The project -- named Redwood Court -- also received federal rent subsidies that paid the majority of operating costs and assured that residents pay no more than 30% of their income for housing. The project is now 20 years old, the rent subsidies are scheduled to terminate in 2003, the project is in need of repair, and is eligible to be converted to market rate housing unless some intervention is planned to stop this action. In order to preserve the affordability of these units and to prevent them from converting to market rate, MPHC is seeking to buy out the limited partner and is applying for a 10 year renewal of the rent subsidies. MPHC has received a loan from the California State Housing Financing Authority (CHFA) to buy out the limited partner as a way to prevent these units from converting rents from affordable to market rate. As a prerequisite of making this loan, CHFA requires that certain improvements be made. These improvements will also help the project receive higher rents to pay for future operating costs. The immediate repairs include eradicating termite infestation, replacing the roofs, repairing dry rot on the exterior siding, replacing windows and doors to reduce energy costs to the tenants, building new fencing, repairing concrete to remove tripping hazards, modifying the playground, and building trash enclosures. The Housing and Human Concerns Committee (HHCC) reviewed this project last year and Council approved a loan from HOME Program funds for $258,974 for immediate repairs to facilitate the refinancing of this project and preserve 27 affordable units. The March 3, 2003