65A - AMCAL INCLUSIONARY FEES - Laserfiche WebLink

Home Browse Search

Proposal with AMCAL Multi- Housing, Inc. April 19, 2016 Page 3 City Response — The City has asked KMA to conduct the underwriting and subsidy layering analysis of the Project. The City anticipates sixty (60) days to conduct the underwriting and come to a mutually agreed upon amount of the In -Lieu Fee for the Project. Developer's Proposal — Once AMCAL and City staff have agreed to the In -Lieu Assistance Amount and a form of commitment letter, City staff will submit the matter to the City Council for review and approval. Subject to an approval by the City Council, the City shall issue AMCAL a commitment for the In -Lieu Assistance Amount (the "City Commitment ") within fifteen (15) days after approval by City Council. City Response — City Council voted on February 2, 2016 to: "Direct the City Manager to lead discussions with developer [AMCAL] on a proposal for City Council consideration as to the affordable housing project to receive in -lieu fees." City staff has drafted a conditional loan commitment letter (Exhibit 2) that contains everything with the exception of a final amount of assistance. Once the City receives the analysis report from KMA, City staff and the Developer will come to an agreement on the In -Lieu Assistance Amount, up to a maximum of $8,900,000 based upon KMA's analysis. Developer's Proposal— The City shall have no obligation to fund any amount of the In -Lieu Assistance until the City has either (i) received the In -Lieu Fees from Heritage Village OC or (ii) received assurances acceptable to the City that the In -Lieu Fee will be paid upon a date certain. City Response — The City shall only disburse funds when the City has received the in -lieu fee payment, cash or cash equivalent to the in -lieu fee payment from the Heritage project. - Developer's Proposal— The City shall have no obligation to fund any amount of the In -Lieu Assistance until AMCAL receives full entitlements for the Affordable Project. City Response — The Affordable Project is anticipated to receive full entitlements on May 3, 2016, contingent on City Council approval. - Developer's Proposal— If AMCAL does not receive an allocation of 9% Tax Credits for the Project within two (2) years of the issuance of the City Commitment, the City may terminate the City Commitment in its sole and absolute discretion. City Response — The City's conditional commitment letter and commitment of inclusionary housing funds for the project will expire two (2) years from issuance of the letter to the Developer. 65A -3