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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JUNE 21, 2016 <br />TITLE: <br />LOAN AGREEMENT WITH <br />GUEST HOUSE LP FOR ACQUISITION <br />AND REHABILITATION OF AFFORDABLE <br />HOUSING AT 2151 E. FIRST STREET <br />(STRATEGIC PLAN NO. 5,3A; 3C) <br />L .,�' <br />CITY MA ER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1" Reading <br />❑ Ordinance on 2ntl Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Authorize the City Manager and the Clerk of the Council to execute a loan agreement in the amount <br />of $1,199,869 with Guest House LP for HOME Investment Partnership Program funds for 71 units <br />of affordable housing at 2151 E. First Street, subject to non - substantive changes approved by the <br />City Manager and City Attorney. <br />COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION <br />At its regular meeting on May 27, 2016, by a vote of 5:0 (Aguinaga Absent), the Community <br />Redevelopment and Housing Commission approved the recommended action. <br />DISCUSSION <br />On February 3, 2016, City staff issued a Request for Proposals (RFP) #16 -017 soliciting <br />applications for the acquisition and rehabilitation of an affordable housing project. The RFP <br />indicated that the City would consider proposals for acquisition and rehabilitation projects only. It <br />also indicated that the City had approximately $1,199,869 in federal HOME Program funds to be <br />committed by July 31, 2016; $161,007 in federal HOME Program funds for Community Housing <br />Development Organizations (CHDO) only; and fifty Project -Based Vouchers for homeless <br />individuals and families. <br />The RFP was posted on both the City and Housing Authority's websites, public notice was <br />published in the Orange County Register on February 5, 2016 and letters announcing its <br />availability were sent by mail and electronic mail to individuals and firms who had previously <br />requested to be informed of development opportunities. The Community Development Agency <br />received two proposals which met the application requirements of the RFP. <br />25H -1 <br />