AgdaPkt 2003-06-30 - Laserfiche WebLink

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REPORT To the Redevelopment Agency Board From the Executive Director June 30, 2003 Subject Redwood Court Owner Participation Agreement Recommendation Approve Owner Participation Agreement (OPA) with MP Redwood Court Associates and authorize the Redevelopment Manager to execute all related documents. Background On March 24, The Agency Board approved MO RD 03 -09, allocating $500,000 in Redevelopment Housing funds to MP Redwood Court Associates. These funds were to be used to assist in the preservation of 27 affordable housing units which were at risk of becoming converted to market rate rents. The California Housing Finance Agency (CaIHFA) proposes to loan funds to MP Redwood Court Associates to buy out the limited partnership and preserve the affordability of the units. CaIHFA required certain physical improvements to be made to the property as a condition of their loan and the Redevelopment Housing funds are to help pay for the required improvements. The original agreement approved by the Board in March did not contain some of the changes made to Redevelopment Agency Affordable Housing Requirements under modification to Redevelopment law. The affordability requirements underthe March approval required a 30 year affordability term. AB 637 increased the term to 55 years. The previous agreement provided for the work to be completed by December 2003. The OPA allows the term to extend to June 30, 2004. These changes are more favorable to the City and the Owner Participation Agreement complies with the State requirements for Redevelopment Housing Funds. Fiscal Impact The Agency allocated $500.000 from RDA Housing funds on March 24, 2003. 400r es -T m SuEd Everett hat r Redevelopment Manager City Manager Attachment Owner Participation Agreement