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<br />Loan Agreements with <br />Wakeham Grant, LP <br />December 20, 2004 <br />Page 3 <br /> <br />agreement for an amount not to exceed $1 million. The City and Agency <br />funds were to be used to lower the affordability levels and provide funds <br />for additional rehabilitation. Under the new restrictions, all units <br />will be affordable to very low-income households. <br /> <br />Since then, lender commitment to purchase the bonds has been reduced from <br />$6 million to $5,225,000 million. Additionally, mold damage and other <br />items stemming from improper rehabilitation work previously completed <br />have caused construction costs to increase an addi tional $2.4 million. <br />Wakeham-Grant is considering all options available to them in order to <br />recover all or a portion of the increased construction costs. Should <br />they be successful in doing so, the funds received will be paid to the <br />City. <br /> <br />F:ISCAL :IMPACT <br /> <br />Funds for the loans are available in the HOME Program account in the <br />amount of $1,200,000 (account no. 130-148-6951) and Tax Increment Housing <br />Set-Aside Fund accounts in the amount of $1,200,000 (account nos. 502- <br />936-6951, 503-936-6951, 504-936-6951 and 505-936-6951) . <br /> <br />Wit JJi <br /> <br /> <br />S TO FUNDS AND ACCOUNTS: <br /> <br />patricia C. Whitaker <br />Executive Director <br />Community Development Agency <br /> <br />o oloma tel> <br />Execut've Director <br />Finance & Management Services AgenC~ <br /> <br />PCW/TG/mlr <br /> <br />H:Actions\2004CC\JT CC-CRA Loan AgreeWakehamGrant 12-20-04 <br /> <br />25N-3 <br /> <br />