|
Loan Agreements with AMCAL Multi- Housing, Inc. and Appropriation Adjustments
<br />February 7, 2017
<br />Page 2
<br />HOUSING AUTHORITY ACTION
<br />1. Authorize the City Manager /Executive Director to execute a loan agreement with AMCAL
<br />Multi- Housing, Inc. for $6,195,000 in Housing Successor Agency funds, to create 69 units of
<br />affordable housing at 1440 East First Street in Santa Ana, subject to non - substantive changes
<br />approved by the City Manager /Executive Director and City Attorney.
<br />COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION ACTION
<br />At its regular meeting on January 25, 2017, by a vote of 6:0, the Community Redevelopment and
<br />Housing Commission approved the recommended actions.
<br />DISCUSSION
<br />At its regular meeting on December 20, 2016, by a vote of 4:2 (Martinez, Pulido dissented;
<br />Benavides absent), the City Council authorized the City Manager to execute a conditional loan
<br />commitment letter with AMCAL Multi- Housing, Inc. (AMCAL) for $2,600,000 of inclusionary
<br />housing in -lieu fees anticipated from the Heritage Village OC, LLC, that will be contingent on the
<br />City's actual receipt of an in -lieu fee payment of $2,600,000 from Heritage Village OC, LLC. The
<br />City Council also authorized the City Manager and the City Attorney to draft loan agreements for
<br />City Council consideration in an amount not to exceed $2,600,000 for the First Street Apartments
<br />Project located at 1440 East First Street (Exhibit 1).
<br />This conditional loan agreement for $2,600,000 (Exhibit 2) will allow AMCAL to move forward
<br />with the First Street Apartments Project to obtain their necessary low- income housing tax credit
<br />financing. AMCAL expects to submit an application for their low- income housing tax credit
<br />financing on March 1, 2017 for the first competitive application funding round deadline and
<br />approval of this loan agreement will permit AMCAL to submit their application. The conditional
<br />loan agreement is contingent on the City's actual receipt of an in -lieu fee payment of $2,600,000
<br />from Heritage Village OC, LLC (Heritage Village) because the Heritage Village requested to
<br />allocate the in -lieu fees from their Heritage Village Project to AMCAL and City Council approved
<br />the allocation of those funds on April 19, 2016, but the City has not yet received the in -lieu fee
<br />payment of $2,600,000. If the City does not receive the in -lieu fee payment of $2,600,000 from
<br />the Heritage Village, the City Manager and the Clerk of the Council will not execute the loan
<br />agreement with AMCAL. As such AMCAL will be unable to meet their March 1, 2017 deadline to
<br />apply for tax credits.
<br />Additionally, on December 20, 2016, by a vote of 4:2 (Martinez, Pulido dissented; Benavides
<br />absent), the Housing Authority also authorized the City Manager /Executive Director and the City
<br />Attorney to draft loan agreements for Housing Authority consideration in an amount not to exceed
<br />$6,195,000 for the First Street Apartments Project (Exhibit 3).
<br />Project Description
<br />AMCAL's project, located at 1440 East First Street in Santa Ana, will provide 69 units of affordable
<br />workforce housing. The residential units will be located within six buildings. The rental units (less
<br />80A -2
<br />
|