HomeMy WebLinkAboutJT25K - JOINT REHAB AGMTS MERCY HOUSE
REQUEST FOR
COUNCIL/AGENCY
ACTION
MEETING DATE:
~
~
CLERK OF COUNCIL USE ONLY:
DECEMBER 5, 2005
TITLE:
APPROVED
o As Recommended
o As Amended
D Ordinance on 1st Reading
o Ordinance on 2nd Reading
o Implementing Resolution
o Set Public Hearing For
REHABILITATION LOAN AGREEMENTS
WITH MERCY HOUSE TRANSITIONAL
LIVING CENTERS
AJt [2JJ;;2v.
CITY MANAGER
CONTINUED TO
FILE NUMBER
RECOMMENDED ACTION
CITY COUNCIL ACTION
1. Direct the City Attorney to prepare and authorize the Executive
Director of the Community Development Agency to execute a $71,328
loan agreement with Mercy House Transi tional Living Centers for
rehabilitation of Joseph House.
2. Direct the City Attorney to prepare and authorize the Executive
Director of the Community Development Agency to execute a $31,360
loan agreement with Mercy House Transitional Living Centers for
rehabilitation of Regina House.
COMMUNITY REDEVELOPMENT AGENCY ACTION
1.
Direct the Agency
Executi ve Director
House Transitional
House.
General Counsel to
to execute a $71,327
Living Centers for
prepare and authorize the
loan agreement with Mercy
rehabilitation of Joseph
2.
Direct the Agency
Executive Director
House Transitional
House.
General Counsel to prepare and authorize the
to execute a $31,361 loan agreement with Mercy
Living Centers for rehabilitation of Regina
JT25K-1
Rehabilitation Loan Agreements
with Mercy House Transitional
Living Centers
December 5, 2005
Page 2
COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION:
1. Recommended that the City Council:
a) Direct the City Attorney to prepare and authorize the
Executive Director of the Community Development Agency to
execute a $71,328 loan agreement with Mercy House Transitional
Living Centers for rehabilitation of Joseph House.
b) Direct the City Attorney to prepare and authorize the
Executive Director of the Community Development Agency to
execute a $31,360 loan agreement with Mercy House Transitional
Living Centers for rehabilitation of Regina House.
2. Recommended that the Community Redevelopment Agency:
a) Direct the Agency General Counsel to prepare and authorize the
Executive Director to execute a $71,327 loan agreement with
Mercy House Transi tional Living Centers for rehabilitation of
Joseph House.
b) Direct the Agency General Counsel to prepare and authorize the
Executive Director to execute a $31,361 loan agreement with
Mercy House Transi tional Living Centers for rehabilitation of
Regina House.
By a vote of 4:0 at its Regular Meeting of November 15, 2005.
DISCUSSION
Mercy House Transitional Living Centers (Mercy House) is a nonprofit
corporation that provides housing and supportive services for the
homeless populations. Joseph House consists of four attached
townhouses, which provides services to single men. Regina House
consists of two single-family homes, which provides services to women
and their children. Site maps are not provided to protect the
confidentiality of the residents.
JT25K-2
Rehabilitation Loan Agreements
with Mercy House Transitional
Living Centers
December 5, 2005
Page 3
Both projects are
requested financial
in need of rehabilitation, and Mercy
assistance from the City and Agency.
House has
Mercy House
has obtained three competi ti ve bids from licensed general contractors.
The bid submitted by Construction Restoration, Inc. (CRI) is considered
the most responsive. The table below is the construction budget.
Construction Costs
Contingency
TOTAL LOAN COSTS
Regina House
$57,835
$4,886
$62,721
Joseph House
$131,377
$11,278
$142,655
The proposed City and Agency loans will provide for the total cost of
rehabilitation. The loans will be originated at a zero percent interest
rate with annual residual receipts payments. These loans will be due
and payable or subject to renegotiation in fifty-five years. Fifty-five
year affordable housing covenants will be recorded on both properties,
which will be restricted to household incomes at or below eighty percent
of the area median as determined by the U. S. Department of Housing and
Urban Development. Rents will be restricted to those affordable to such
households, less a reasonable allowance for tenant paid utilities.
These loans will assist the City and
low-income affordable housing goals
Plan and Redevelopment Implementation
Agency in meeting
as identified in
Plan.
its very-low and
the Consolidated
ENVIRONMENTAL IMPACT
In accordance with the California Environmental Quality Act and the
National Environmental Policy Act, the proposed projects are exempt from
further review. Categorical Exemption Nos. ER 2005-195 and ER 2005-199
will be filed for these projects.
JT25K-3
Rehabilitation Loan Agreements
with Mercy House Transitional
Living Centers
December 5, 2005
Page 4
FISCAL IMPACT
Funds for these loan agreements are available in the HOME Program
(account no. 130-148-6951) and the Tax Increment Housing Set-Aside
account (account no. 507-508-6951).
APPROVED AS TO FUNDS AND ACCOUNTS:
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Patricia C. Whitaker
Executive Director
Community Development Agency
':\i\lC\"Z\0" :-'J:'_o ~~_, -:
Francisco G~tierrez fJ
Executlve Dlrector
Finance & Management Services Agency
PCW/TG/mlr
H:\ACTIONS\2005 CRA\JT cc-eRA RehabLoanAgreesMercyHouse 12-05-05.doc
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