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Loan Agreement with <br />OHDC and Authorization of <br />Relocation Plan <br />January 18, 2005 <br />Page 3 <br />The City and Agency loans will fund the gap in acquisition cost, <br />rehabilitation, relocation, and other soft cost associated with the <br />acquisition and rehabilitation (Exhibit 2). <br />All units will have affordability covenants recorded, which will restrict <br />the rents for a period of 55 years. The affordable unit mix and rents <br />will be as follows: <br />Affordability Level <br />Number of units <br />Rent <br />Extremely low- income (30 %) <br />2 <br />$425 <br />Very low- income (40%-50%) <br />8 <br />$566 -$756 <br />Low - income (60%-80%) <br />14 <br />$901 -$907 <br />The acquisition of this property will assist the City and Agency to meet <br />its very low- income affordable housing goals as identified in the <br />Consolidated Plan, Redevelopment Implementation Plan and Housing Element. <br />When a Redevelopment Agency enters into an agreement for the acquisition <br />or disposition and development of property which agreement would lead to <br />displacement of people from their homes, the legislative body must adopt, <br />by resolution, a relocation plan. The OHDC Sixth Street Project <br />Relocation Plan (Exhibit 3) has been prepared in conformance with <br />applicable provisions of California Relocation Assistance Law and <br />Relocation Guidelines as well as United States Department of Housing and <br />Urban Development (HUD) regulations. This plan is required due to the <br />temporary displacement of 20 households as a result of the <br />rehabilitation. There are currently 4 vacant units and there will be no <br />permanent relocation of any households. All households will be <br />accommodated within the project. The estimated cost for temporary <br />relocation, including a contingency, is $221,400 and will be paid from <br />loan proceeds. <br />4 -3 <br />