Laserfiche WebLink
Substantial Amendment to Consolidated Plan <br /> and Loan Agreement for Vista Del Rio <br /> March 15, 2010 <br /> Page 2 <br /> <br /> Attorney; and recommend that the Community Redevelopment Agency direct the Agency Counsel <br /> to prepare and authorize the Executive Director and Agency Secretary to execute an Amendment <br /> to the Disposition and Development Agreement with Vista Del Rio Housing Partners, L.P. <br /> DISCUSSION <br /> On July 20, 2009, the Community Redevelopment Agency (Agency) authorized execution of a <br /> Disposition and Development Agreement (DDA) with Vista Del Rio Housing Partners, L.P. <br /> (developer) for the development of a 41 unit affordable housing project on a 3.2 acre vacant site <br /> owned by the Agency. At the time, the project budget anticipated that the majority of the project's <br /> costs would be met with federal low income housing tax credits, and that continues to be the case. <br /> However, the developer was unsuccessful in its initial application for tax credits and must apply <br /> again. The demand for tax credits is quite high, and the California Tax Credit Allocation Committee <br /> uses the amount of other public subsidies committed to a project as a means of choosing between <br /> projects that have otherwise identical scores. Additional public subsidies from other sources serve <br /> to reduce the size of the tax credit investment required for a given project and increase the number <br /> of projects that can be assisted. Increasing the amount of HOME funds committed to the project <br /> from $500,000 to $1.5 million will significantly improve the project's chances for success in the next <br /> tax credit application round. (Exhibit 1) <br /> The Consolidated Annual Action Plan (Plan) is a one-year comprehensive planning document that <br /> identifies federally funded projects the City anticipates implementing during the fiscal year. As <br /> approved by the U. S. Department of Housing and Urban Development, the City's Citizen <br /> Participation Plan requires that substantive changes to the Plan be approved by City Council after <br /> a thirty-day public comment period and public hearing. A substantial amendment is required <br /> because the current Plan did not identify new construction of rental property as a project and did <br /> not budget funds for it. The substantial amendment will create a new project entitled HOME New <br /> Construction and fund it with $1.5 million transferred from an existing program entitled HOME <br /> Acquisition/Rehabilitation. The effect will be to enable the City to spend $1.5 million in HOME <br /> Program funds on multifamily new construction activities (i.e., Vista Del Rio), while reducing HOME <br /> funds available for multifamily acquisition/rehabilitation activities by the same amount. The public <br /> comment period for the proposed substantial amendment (Exhibit 2) began on February 13 and <br /> will end on March 14. Similarly, it is also necessary to amend the financial portion of the DDA in <br /> order to incorporate the larger commitment of HOME funds. <br /> Additional modifications to the DDA will allow the manager's unit to not be income-restricted. This <br /> allows flexibility in filling this key position. The unit mix will now change to allow eleven HOME <br /> assisted units versus five and twenty-nine Agency assisted units. The unit mix and rent restrictions <br /> are as follows: <br /> 80A-2 <br /> <br />