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`V~ ~' <br />AGENCY BOARD MEETING DATE: <br />DECEMBER 20, 2010 <br />TITLE: <br /> °y <br />-,' <br /> <br />L~ <br />Sm, ° -, <br />~ , ,..~ ~? <br />SECOND AMENDMENT TO THE DISPOSITION <br />AND DEVELOPMENT AGREEMENT WITH <br />VISTA DEL RIO HOUSING PARTNERS, L.P. <br />E ECU DIRECTOR <br />C IV CTI <br />AGENCY SECRETARY USE ONLY: <br />APPROVED <br />^ As Recommended <br />^ As Amended <br />^ Ordinance on 1St Reading <br />^ Ordinance on 2"d Reading <br />^ Implementing Resolution <br />^ Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the Executive Director and Agency Secretary to execute the attached Second <br />Amendment to the Disposition and Development Agreement with Vista Del Rio Housing Partners, <br />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. In addition, the City Council authorized a loan agreement with the <br />Developer in an amount not to exceed $500,000. At the time, the project budget anticipated that <br />the majority of the project's costs would be met with low income housing tax credits, and that <br />continues to be the case. However, the developer was unsuccessful in its initial application for tax <br />credits and must apply again. The demand for tax credits is quite high, and the California Tax <br />Credit Allocation Committee uses the amount of other public subsidies committed to a project as a <br />means of choosing between projects that otherwise have identical scores. Those projects that <br />have more public subsidy rank higher. The purpose of this is to reduce the subsidy to individual <br />projects to then fund more projects throughout the State. <br />In March 2010, the City Council authorized the execution of a loan agreement with Vista del Rio in <br />an amount not to exceed $1,500,000. This represented an increase in the amount of HOME funds <br />committed to the project from $500,000 to $1.5 million which would significantly improve the <br />project's chances for success in the next tax credit application round. <br />The Developer was again unsuccessful in obtaining tax credits. One of the performance <br />milestones identified in the DDA states that all financing must be in place no later than December <br />3-1 <br />