AgdaPkt 2003-12-15 - Laserfiche WebLink

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(�.G2 allocated from the Redevelopment Housing Fund to meet the matching fund requirement. The Board originally allocated $450,000 in the RDA 03/04 budget in anticipation of this project. Terms of the proposed financing to be used to assure the long term affordability of these units are as follows: • The affordability period for this project shall be 55 years. • A minimum of 13 units shall be designated as HOME units and shall rent according to HOME rent schedules. • A total of 9 of the remaining 59 units wi'I be affordable to households at or below 50% of Area Median Income; another 50 units will remain affordable to households earning at or below 60% of Area Median Income. • Preference for currently vacant HOME units (deemed to be HOME units and subject to HOME rent Schedules) shall be given to Redwood City residents who are seniors. • The total financing shall not exceed $650,000 • The funds are to be granted as a loan to be used toward the acquisition of Hallmark Apartments, 531 Woodside Road. • The loan shall be deferred and shall bear no interest for the first 30 years. • Thereafter, the loan shall bear 3% interest and fully amortized payments of principal and interest shall be made monthly to the City and Agency for 25 years until all sums due are paid. • Disbursement of funds shall be according to the completion of the rehabilitation and upon approval and inspection by the City. A copy of the draft agreement is attached for review. The agreement is currently being reviewed by KDF. It is presented to the Council /Agency Board in draft form to demonstrate the City's commitment to the funding of the project for purposes of securing and closing on the Tax Credit financing. While not anticipated, should the developer request material changes to the terms and conditions of the OPA, it will be brought back to the Council /Agency Board for consideration. Applicability to Housing Element Goals Assisting this project to convert from market rate rents to affordable rents will expand the supply of affordable housing units in the City of Redwood City. ABAG's Regional Fair Share Housing Need Allocation requires the City to produce 970 housing units affordable to low and very low income households. Of the 970 unit requirement, 534 units are required to be affordable to Very Low Income households, evidencing the greatest need for affordable housing. City funding in this project increases the number of units that will be affordable to very low income seniors, individuals, and small family households. Alternative Not provide the requested funding, resulting in fewer of the units being affordable to households with the greatest housing need. Fiscal Impact The loan amount is comprised of $500,000 in HOME funds and $150,000 in Redevelopment Housing Funds. Beginning in year 31, the City and Agency will receive monthly principal and interest payments on these funds for 25 years. These funds will be secured under one Owner Participation Agreement naming the City and Redevelopment Agency and their respective interests. Debbi ,19 . Housing Bruce Liedstrand, Director Community Development Services Ed Everett City Manager Attachments 1. Resolution City 2. Resolution Redevelooment Agency 3. Draft Owner Participation Agreement