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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />DECEMBER 20, 2016 <br />TITLE: <br />AMENDMENT TO LOAN AGREEMENT AND <br />PROMISSORY NOTE WITH GUEST HOUSE <br />LP FOR AFFORDABLE HOUSING AT 2151 <br />EAST FIRST STREET <br />{STRATEGIC PLAN NO. 5,3A; 3C) <br />i <br />CITY MANA6ER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />F-1102i;L•1TAW <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 18' Reading <br />❑ Ordinance on 2"d 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 an amendment to the HOME <br />Investment Partnerships Program loan agreement and Promissory Note with Guest House LP to <br />include the Limited Partner in the agreement and to adjust the affordability of the units in the event <br />of a foreclosure for 71 units of affordable housing at 2151 E. First Street, subject to non -substantive <br />changes approved by the City Manager and City Attorney. <br />DISCUSSION <br />On February 3, 2016, City staff issued a Request for Proposals (RFP) soliciting applications for <br />the acquisition and rehabilitation of an affordable housing project. The RFP indicated that the <br />City would consider proposals for acquisition and rehabilitation projects only. It also indicated <br />that the City had approximately $1,199,869 in federal HOME Program funds to be committed by <br />July 31, 2016; $161,007 in federal HOME Program funds for Community Housing Development <br />Organizations (CHDO) only; and fifty Project -Based Vouchers for homeless individuals and <br />families. <br />For the evaluation of the proposals received under the RFP, staff formed a Review Panel <br />consisting of senior staff from the Planning and Building Agency, the Community Development <br />Agency, Keyser Marston Associates Inc., and the Orange County Community Services <br />Department. The panel met on April 20, 2016 to review the proposals and interview the <br />developer teams. The top-rated proposal, Community Development Partners / Guest House, <br />was unanimously recommended by the Review Panel to be submitted to the Community <br />Redevelopment and Housing Commission for award and recommendation to City Council for final <br />approval. On June 21, 2016 the City Council approved the award and authorized the City <br />Manager and Clerk of the Council to execute a loan agreement with Guest House LP for HOME <br />Investment Partnership Program funds not to exceed $1,199,869 for 71 units of affordable housing <br />at 2151 E. First Street. <br />2513-1 <br />