Item 03 - Crossroads at Washington Affordable Housing Project

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First Amendment to the Option Agreement for the Crossroads at Washington December 15, 2020 Page 4 Unlike typical 9% TCAC projects which require competitive 9% projects to start construction within 180/194 days of the tax credit award, TCAC's September 1, 2021 deadline to return FCAA credits for the Project allows flexibility for the Developer to start construction whenever feasible as long as the Project is completed by December 31, 2023. First Amendment to the Option Agreement With the understanding of this context and background, the First Amendment to the Option Agreement provides for reimbursement to the Developer for a portion of these predevelopment and environmental assessment costs should the Project not move forward in the future (Exhibit 3). Specifically, the Developer is seeking reimbursement for the non-refundable TCAC deposits and the incurred environmental assessments after the initial Phase 11 ESA Report issuance on February 19, 2020 totaling $314,772, payable 50-50 by the County and the Authority. The Developer would be reimbursed the non-refundable deposits and environmental assessments only in the event that the following conditions are met: (a)On or before August 31, 2021, the Pa rtnership determines that it cannot complete the Project by December 31, 2023 and returns the FCAA Credits to TCAC; and (b)(i) The Partnership determines the Crossroads project is not financially feasible and intends to decline the funding commitment of the County and Authority, ill (ii)The County or Authority terminate its funding commitment for the project pursuant to the terms and conditions of the existing funding commitment. If the Developer does not move forward with the Project, the Authority would be responsible for $157,386 of the $314,772 in reimbursement funds allowed under this First Amendment. FISCAL IMPACT If the conditions in the First Amendment to the Option Agreement are met and the project does not proceed, $157,386 will be made available for expenditure in FY 2020-21 from the Low and Moderate Income Housing Asset Fund, Contract Services account (no. 60718810-62300). Fiscal Impact Verified By: Kathryn Downs, CPA, Executive Director -Finance and Management Services Agency Submitted By: Judson Brown, Housing Division Manager-Community Development Agency Exhibits: 1.Staff Report from February 18, 2020 2.Project Timeline 3.First Amendment to Option Agreement 2-4 EXHIBIT 1