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Rehabilitation Loan Agreements <br />with Mercy House Transitional <br />Living Centers <br />December 5, 2005 <br />Page 3 <br />Both projects are in need of rehabilitation, and Mercy House has <br />requested financial assistance from the City and Agency. Mercy House <br />has obtained three competitive bids from licensed general contractors. <br />The bid submitted by Construction Restoration, Inc. (CRI) is considered <br />the most responsive. The table below is the construction budget. <br />The proposed City and Agency loans will provide for the total cost of <br />rehabilitation. The loans will be originated at a zero percent interest <br />rate with annual residual receipts payments. These loans will be due <br />and payable or subject to renegotiation in fifty -five years. Fifty -five <br />year affordable housing covenants will be recorded on both properties, <br />which will be restricted to household incomes at or below eighty percent <br />of the area median as determined by the U.S. Department of Housing and <br />Urban Development. Rents will be restricted to those affordable to such <br />households, less a reasonable allowance for tenant paid utilities. <br />These loans will assist the City and Agency in meeting its very -low and <br />low- income affordable housing goals as identified in the Consolidated <br />Plan and Redevelopment Implementation Plan. <br />ENVIRONMENTAL IMPACT <br />In accordance with the California Environmental Quality <br />National Environmental Policy Act, the proposed projects ar <br />further review. Categorical Exemption Nos. ER 2005 -195 an <br />will be filed for these projects. <br />HJ <br />Act and the <br />e exempt from <br />d ER 2005 -199 <br />Regina House <br />Joseph House <br />Construction Costs <br />$57,835 <br />$131,377 <br />Contingency <br />$4,886 <br />$11,278 <br />TOTAL LOAN COSTS <br />$62,721 <br />$142,655! <br />The proposed City and Agency loans will provide for the total cost of <br />rehabilitation. The loans will be originated at a zero percent interest <br />rate with annual residual receipts payments. These loans will be due <br />and payable or subject to renegotiation in fifty -five years. Fifty -five <br />year affordable housing covenants will be recorded on both properties, <br />which will be restricted to household incomes at or below eighty percent <br />of the area median as determined by the U.S. Department of Housing and <br />Urban Development. Rents will be restricted to those affordable to such <br />households, less a reasonable allowance for tenant paid utilities. <br />These loans will assist the City and Agency in meeting its very -low and <br />low- income affordable housing goals as identified in the Consolidated <br />Plan and Redevelopment Implementation Plan. <br />ENVIRONMENTAL IMPACT <br />In accordance with the California Environmental Quality <br />National Environmental Policy Act, the proposed projects ar <br />further review. Categorical Exemption Nos. ER 2005 -195 an <br />will be filed for these projects. <br />HJ <br />Act and the <br />e exempt from <br />d ER 2005 -199 <br />