010306 Loan Agmts Ross Durant, LP and Auth of Relocation Plans

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Loan Agreements with Ross & Durant, L. P. and Authorization of Relocation Plans January 3, 2006 Page 3 The purchase price for 1501 N. Ross Street is $3,400,000. Development and financing costs are estimated at $ 3,141,846 for a total project cost of $6,541,846. Ross & Durant, L.P. will be applying for $993,100 in tax - exempt bonds, and $ 896,138 in low- income housing tax credits that will be used for permanent financing. The purchase price for 1411 N. Durant Street is $4,200,000. Development and financing costs are estimated at $ 3,221,288 for a total project cost of $7,421,288. Ross & Durant, L.P. will be applying for $ 1,188,100 in tax - exempt bonds, and $ 2,328,542 in low - income housing tax credits that will be used for permanent financing. The City and Agency will provide loan funds to both projects in order to fill the gap in financing the acquisition and rehabilitation (Exhibit 3). City and Agency funding will be contingent on approval of the bond allocation and tax credits, and appropriate environmental clearances as required by the National Environmental Policy Act (NEPA) and the California Environmental Quality Act (CEQA). The acquisition and rehabilitation of these properties will assist the City and Agency to meet the affordable housing goals as identified in the Consolidated Plan, Redevelopment Implementation Plan and Housing Element. When a Redevelopment Agency enters into an agreement for the acquisition or disposition and development of property which agreement would lead to displacement of people from their homes, the legislative body must adopt, by resolution, a relocation plan. The 1501 N. Ross Street and 1411 N. Durant Relocation Plans (Exhibits 4 and 5) have been prepared in conformance with applicable provisions of California Relocation Assistance Law and Relocation Guidelines as well as United States Department of Housing and Urban Development (HUD) guidelines. These plans are required due to the temporary and permanent relocation of households during the rehabilitation. The developer has made arrangements to provide temporary relocation to 43 households. There will also be permanent relocation benefits provided to as many as 14 households. The estimated cost for relocation is $350,000 and is part of the development budget. This action was placed on the December 20, 2005, agenda for recommendation by the Community Redevelopment and Housing Commission. No action was taken due to a lack of quorum. 7 -33