05 - JT PH DDA-Loan Agreements Bush and Birch

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DDA and Loan Agreements -Bush and Birch Street Properties September 7, 2010 Page 2 2. Direct the Agency General Counsel to prepare and authorize the Executive Director and Agency Secretary to execute a loan agreement with Santa Ana WBBB, LP in an amount not to exceed $303,667, subject to non-substantive changes approved by the Executive Director and Agency General Counsel for 217-219 South Birch Street. 3. Direct the Agency General Counsel to prepare and authorize the Executive Director and Agency Secretary to execute a loan agreement with Santa Ana WBBB, LP in an amount not to exceed $303,667, subject to non-substantive changes approved by the Executive Director and Agency General Counsel for 435-437 South Birch Street. 4. Direct the Agency General Counsel to prepare and authorize the Executive Director and Agency Secretary to execute a loan agreement with Santa Ana WBBB, LP in an amount not to exceed $303,667, subject to non-substantive changes approved by the Executive Director and Agency General Counsel for 2034-2038 Bush Street. COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION ACTION At its regular meeting on August 17, 2010, by a vote of 4:0, (Verino absent), the Community Redevelopment and Housing Commission (Commission) recommended that the City Council authorize execution of loan agreements with Santa Ana WBBB, LP for properties located at 217-219 South Birch Street, 435-437 South Birch Street, and 2034-2038 Bush Street. The Commission also recommended that the Community Redevelopment Agency adopt a resolution approving a Disposition and Development Agreement between the Community Redevelopment Agency and Orange Housing Development Corporation and C&C Development (Developer) for the development of affordable, multi-family units at 217-219 South Birch, 435-437 South Birch, and 2034-2038 Bush Streets and authorized execution of loan agreements with Santa Ana WBBB, LP for properties located at 217-219 South Birch, 435-437 South Birch Street, and 2034-2038 Bush Street as outlined in the attached staff report (Exhibit 6). DISCUSSION A key objective of the Redevelopment Agency is to expand and preserve affordable housing. Staff were directed in December 2009 to negotiate a Disposition Development Agreement (DDA) with the developers resulting from a Request for Qualifications for both single family and multi-family residential units on properties owned by the Agency. Orange Housing Development Corporation (OHDC), anon-profit 501(c)(3), and C&C Development (C&C), afor-profit developer, was selected as developer for the multi-family housing parcels. They will form a Limited Partnership named Santa Ana WBBB, LP for financing purposes. Negotiations are now concluded and we are prepared to move forward with the DDA. Under the proposed DDA, the Agency will convey three of the four multi-family sites. The proposed project includes 217-219 South Birch (Exhibit 1), 435-437 South Birch (Exhibit 2) and 2034-2038 Bush (Exhibit 3). The units will all be affordable to very low-income households (50% AMI). The 5-2