80B - JOINT - AFFORDABLE HOUSING FUNDS AMCAL

Home Browse Search

AMCAL 1440 Santa Ana Fund, L.P. December 20, 2016 Page 2 the balance of $6,195,000 from the conditional, pre -commitment loan approved by City Council on April 19, 2016. As such, the conditional, pre -commitment loan of up to $8,795,000 approved by City Council on April 19, 2016 is hereby reduced to a conditional, pre -commitment loan of $2,600,000, subject to the conditions below. The Loan, should it be issued, will have the following terms: $2,600,000.00 principal amount, or as much thereof as is disbursed for acquisition costs and hard and soft costs in constructing the Project; 3% simple interest per annum; Repayment from 50% of Residual Receipts (pro -rata with payments due in connection with other financing provided by the City) (after payment of operating expenses, debt service, any deferred developer fee, and partnership fees to be described in the Agreement) with the remaining 50% to be disbursed to the Developer; • Remaining principal and accrued interest due upon the 55th anniversary of the issuance of Certificate of Occupancy and/or final building permits or earlier upon sale, refinancing or default. Additionally, Santa Ana will receive 50% of the net proceeds received from any sale or refinancing of the Project, after payment of outstanding debt and payment in full of any deferred developer fee and establishment of any reserves and transaction costs; and • Cost savings from the Project, if any, will be applied first to pay down the Loan, subject to compliance with the TCAC'Regulations. The City's obligation to provide the Loan to the Project are subject to each of the following conditions: L Receipt by the City of the.In-Lieu Fee. On October 6, 2015 the City received a letter indicating a Market Rate Developer's preference that their hr -Lieu Fees be applied towards the Project. The Developer agrees and acknowledges that while a preference has been stated and the City has agreed to honor the preference, the City has not yet received he In -Lieu Fee. The City shall notify the Developer if and when it receives the In -Lieu Fee. Notwithstanding anything to the contrary set forth herein, the City shall have no obligation to fund the Loan unless the In -Lieu Fee has been received by the City. 2. Review and approval of the documents evidencing the Loan by the City Council. 3. Compliance with and completion of environmental review of the Project pursuant to the California Environmental Quality Act ("CEQA") and approval thereof. 4. 68 of the 69 "Housing Units" at the Project shall and will be restricted to "Affordable Rent" as defined by the TCAC Regulations for a period not less than 55 years pursuant to conditions, covenants and restrictions recorded against the Project 80B-18