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Loan Agreement with <br />OHDC and Authorization of <br />Relocation Plan <br />January 18, 2005 <br />Page 2 <br />COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION <br />1. Recommended that the City Council: <br />a) Direct the City Attorney to prepare a loan agreement with Orange <br />Housing Development Corporation for the acquisition of a 24 unit <br />multi - family property located at 901 E. Sixth Street in an <br />amount not to exceed $1,300,000 and authorize the Executive <br />Director of the Community Development Agency or designee to <br />execute all required documents. <br />b) Adopt a resolution approving the Relocation Plan for residential <br />property located at 901 E. Sixth Street. <br />2. Recommended that the Community Redevelopment Agency direct the Agency <br />General Counsel to prepare a loan agreement with Orange Housing <br />Development Corporation for the acquisition of a 24 unit multi - family <br />property located at 901 E. Sixth Street in an amount not to exceed <br />$2,607,500 and authorize the Executive Director of the Community <br />Development Agency or designee to execute all documents as necessary. <br />By a vote of 4:1 (Turner opposed, Betancourt and Rodriguez absent) at its <br />Special Meeting of January 10, 2005. <br />Orange Housing Development Corporation (OHDC) is a California nonprofit <br />corporation, which is dedicated to the development of quality affordable <br />housing. OHDC owns and operates 1,300 affordable rental units in Orange, <br />San Diego, and San Bernardino counties. In Santa Ana, OHDC most recently <br />partnered with the City of Santa Ana to successfully rehabilitate a hotel <br />located at 939 E. 17th Street into an 89 unit senior complex. OHDC also <br />owns 146 units on Minnie Street and has been instrumental in the success <br />of the Cornerstone Village Owners Association. <br />OHDC has entered into a conditional purchase agreement for the <br />acquisition of a 24 one - bedroom multifamily property located at 901 E. <br />Sixth Street (Exhibit 1) for $3,360,000. This amount is approximately 5% <br />below the appraised value. OHDC will be obtaining a first mortgage with <br />Washington Mutual in the amount of $1,032,158. The City and Agency loans <br />will be zero percent interest with annual residual receipts payments. <br />4 -2 <br />