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Loan Agreements with <br />Wakeham Grant, LP <br />December 20, 2004 <br />Page 3 <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 />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 additional $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 />FISCAL IMPACT <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 />Patricia C. Whitaker <br />Executive Director <br />Community Development Agency <br />PCW /TG /mlr <br />AS TO FUNDS AND ACCOUNTS: <br />od . C ma 141� <br />Executi Director <br />Finance & Management <br />H:ACtions \2004CC \JT CC -CRA Loan AgreeWakehamGrant 12 -20 -04 <br />Services Agency <br />