HomeMy WebLinkAbout25N - LOAN AGMTS WAKEHAM-GRANT
REQUEST FOR
COUNCIL/AGENCY
ACTION
MEETING DATE:
~
~
CLERK OF COUNCIL USE ONLY:
DECEMBER 20, 2004
TITLE:
APPROVED
o As Recommended
o As Amended
o Ordinance on 1 st Reading
o Ordinance on 2nd Reading
o Implementing Resolution
o Set Public Hearing For
LOAN AGREEMENTS WJ:TH WAKEHAM-
GRANT, LP
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CITY MANAGER EXECUTIVE DIRECTOR
CONTINUED TO
FILE NUMBER
RECOMMENDED ACTION
CJ:TY COUNCJ:L ACTJ:ON
1. Approve an agreement with Wakeham-Grant Apartments, a California
Limited Partnership, to provide loans in an amount not to exceed
$1,200,000.
2. Direct the City Attorney to prepare and authorize the Executive
Director of the Conununi ty Development Agency to execute agreements
and all other required documents as necessary.
COMMUNJ:TY REDEVELOPMENT AGENCY ACTJ:ON
1. Approve an agreement with Wakeham-Grant Apartments, a California
Limited Partnership, to provide loans in an amount not to exceed
$1, 200,000.
2. Direct the Agency General Counsel to prepare and authorize the
Executive Director of the Conununity Development Agency to execute
agreements and all other required documents as necessary.
25N-1
Loan Agreements with
Wakeham Grant, LP
December 20, 2004
Page 2
COMNOH:ITY REDEVELOPHEN'r AND BOUS:ING COMM:ISS:ION RECOMMENDA'1':ION
1. Recommended that the City Council:
a)
Approve an agreement with
California Limited Partnership,
not to exceed $1,200,000.
Wakeham-Grant Apartments, a
to provide loans in an amount
b) Direct the City Attorney to prepare and authorize the Executive
Director of the Community Development Agency to execute
agreements and all other required documents as necessary.
2. Recommended that the Community Redevelopment Agency:
a)
Approve an agreement with
California Limited Partnership,
not to exceed $1,200,000.
Wakeham-Grant Apartments, a
to provide loans in an amount
b) Direct the Agency General Counsel to prepare and authorize the
Executive Director of the Community Development Agency to
execute agreements and all other required documents as
necessary.
By a vote of 5:0 (Rodriguez absent) at its Regular Meeting of December 7,
2004.
D:ISCUSS:ION
Wakeham-Grant Apartments, a California Limited Partnership, owns and
operates eight multi-family residential buildings in the Cornerstone
Village revitalization area (Exhibit 1). Jamboree Housing, the sole
member of the limited partnership, is a non-profit housing provider that
builds, preserves and maintains affordable rental housing in Orange
County.
On January 5, 2004, the Housing Authority adopted a resolution
authorizing the issuance of $6 million of multi-family housing revenue
refunding bonds for Wakeham-Grant to replace a previous issuance that
they had been unable to convert to permanent financing. Concurrently,
the City Council approved a loan agreement for an amount not to exceed
$1.9 million, and the Community Redevelopment Agency approved a loan
25N-2
Loan Agreements with
Wakeham Grant, LP
December 20, 2004
Page 3
agreement for an amount not to exceed $1 million. The City and Agency
funds were to be used to lower the affordability levels and provide funds
for additional rehabilitation. Under the new restrictions, all units
will be affordable to very low-income households.
Since then, lender commitment to purchase the bonds has been reduced from
$6 million to $5,225,000 million. Additionally, mold damage and other
items stemming from improper rehabilitation work previously completed
have caused construction costs to increase an addi tional $2.4 million.
Wakeham-Grant is considering all options available to them in order to
recover all or a portion of the increased construction costs. Should
they be successful in doing so, the funds received will be paid to the
City.
F:ISCAL :IMPACT
Funds for the loans are available in the HOME Program account in the
amount of $1,200,000 (account no. 130-148-6951) and Tax Increment Housing
Set-Aside Fund accounts in the amount of $1,200,000 (account nos. 502-
936-6951, 503-936-6951, 504-936-6951 and 505-936-6951) .
Wit JJi
S TO FUNDS AND ACCOUNTS:
patricia C. Whitaker
Executive Director
Community Development Agency
o oloma tel>
Execut've Director
Finance & Management Services AgenC~
PCW/TG/mlr
H:Actions\2004CC\JT CC-CRA Loan AgreeWakehamGrant 12-20-04
25N-3
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EXHIBIT 1
McFADDEN AVENUE
25N-4