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Home My WebLink About80A - CONSOLIDATED PLAN AND LOAN AGMT FOR VISTA DEL RIO REQUEST FOR COUNCILI AGENCY ACTION . MEETING DATE: CLERK OF COUNCIL USE ONLY: MARCH 15, 2010 TITLE: APPROVED ? As Recommended ~ JOINT PUBLIC HEARING -SUBSTANTIAL ? As Amended AMENDMENT TO CONSOLIDATED PLAN AND LOAN ? Ordinance on 1st Reading AGREEMENT FOR VISTA DEL RIO ? Ordinance on 2nd Reading ? Implementing Resolution ? Set Public Hearing For CONTINUED TO Cf ` G~~,'~ FILE NUMBER CITY MANAGER EX TIVE RECTOR RECOMMENDED ACTION CITY COUNCIL ACTION 1. Approve the Substantial Amendment to the Consolidated Plan and authorize its submittal to the U. S. Department of Housing and Urban Development. 2. Direct the City Attorney to prepare and authorize the Deputy City Manager and Clerk of the Council to execute a loan agreement and all other related documents with Vista Del Rio Housing Partners, L.P. for the construction of 41 special needs residences at 1600 W. Memory Lane in an amount not to exceed $1,500,000, subject to non-substantive changes approved by the City Manager and City Attorney. COMMUNITY REDEVELOPMENT AGENCY ACTION Authorize the Executive Director and Agency Secretary to execute the attached Amendment to the Disposition and Development Agreement with Vista Del Rio Housing Partners, L.P. COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION ACTION At its regular meeting on March 2, 2010, by a vote of 4:0, (Reyes absent), the Community Redevelopment and Housing Commission recommended that the City Council (a) approve the Substantial Amendment to the Consolidated Plan and authorize its submittal to the U. S. Department of Housing and Urban Development. and (b) direct the City Attorney to prepare and authorize the City Manager to execute a loan agreement with Vista Del Rio Housing Partners, L.P. for the construction of 41 special needs residences at 1600 W. Memory Lane in an amount not to exceed $1,500,000, subject to non-substantive changes approved by the City Manager and City ` 80A-1 Substantial Amendment to Consolidated Plan and Loan Agreement for Vista Del Rio March 15, 2010 Page 2 Attorney; and recommend that the Community Redevelopment Agency direct the Agency Counsel to prepare and authorize the Executive Director and Agency Secretary to execute an Amendment to the Disposition and Development Agreement with Vista Del Rio Housing Partners, L.P. DISCUSSION On July 20, 2009, the Community Redevelopment Agency (Agency) authorized execution of a Disposition and Development Agreement (DDA) with Vista Del Rio Housing Partners, L.P. (developer) for the development of a 41 unit affordable housing project on a 3.2 acre vacant site owned by the Agency. At the time, the project budget anticipated that the majority of the project's costs would be met with federal low income housing tax credits, and that continues to be the case. However, the developer was unsuccessful in its initial application for tax credits and must apply again. The demand for tax credits is quite high, and the California Tax Credit Allocation Committee uses the amount of other public subsidies committed to a project as a means of choosing between projects that have otherwise identical scores. Additional public subsidies from other sources serve to reduce the size of the tax credit investment required for a given project and increase the number of projects that can be assisted. Increasing the amount of HOME funds committed to the project from $500,000 to $1.5 million will significantly improve the project's chances for success in the next tax credit application round. (Exhibit 1) The Consolidated Annual Action Plan (Plan) is a one-year comprehensive planning document that identifies federally funded projects the City anticipates implementing during the fiscal year. As approved by the U. S. Department of Housing and Urban Development, the City's Citizen Participation Plan requires that substantive changes to the Plan be approved by City Council after a thirty-day public comment period and public hearing. A substantial amendment is required because the current Plan did not identify new construction of rental property as a project and did not budget funds for it. The substantial amendment will create a new project entitled HOME New Construction and fund it with $1.5 million transferred from an existing program entitled HOME Acquisition/Rehabilitation. The effect will be to enable the City to spend $1.5 million in HOME Program funds on multifamily new construction activities (i.e., Vista Del Rio), while reducing HOME funds available for multifamily acquisition/rehabilitation activities by the same amount. The public comment period for the proposed substantial amendment (Exhibit 2) began on February 13 and will end on March 14. Similarly, it is also necessary to amend the financial portion of the DDA in order to incorporate the larger commitment of HOME funds. Additional modifications to the DDA will allow the manager's unit to not be income-restricted. This allows flexibility in filling this key position. The unit mix will now change to allow eleven HOME assisted units versus five and twenty-nine Agency assisted units. The unit mix and rent restrictions are as follows: 80A-2 Substantial Amendment to Consolidated Plan and Loan Agreement for Vista Del Rio March 15, 2010 Page 3 30%AMI 50%AMI Bedroom Extreme) Low Income Ve Low Income Size No. of Units No. of Max. No. of Units No. of Max. A enc HOME Units Gross Rent A enc HOME Units Gross Rent Studio 4 2 $488 7 2 $753 One 8 2 $523 8 2 $861 Two 2 2 $627 0 1 $969 FISCAL IMPACT Funds for the HOME loan are available in the HOME Program account (no. 13018780-69151). APPROVED AS TO FUNDS AND ACCOUNTS: y Shelly ndry-Bay) Francisco Gutierrez . Housing Manager Executive Director Community Development Agency Finance & Management Services Agency CJN/SL-B/mlr Exhibit: 1. First Amendment to DDA 2. Proposed Substantial Amendment 80A-3 80A-4 i i f - f 1 FIRST AMENDMENT TO DISPOSITION AND ~ DEVELOPMENT AGREEMENT WITH - VISTA DEL RIO HOUSING PARTNERS, L.P. ~ 1 r T)`IIS FIRST AMENDMENT TO DISPOSITION.AND DEVELOPMENT AGREE1ViENT (the "Azrzendment") is entered into as of , 2414, by and between the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA, a public body, coFporate and politic (tlle "Agency"), and VISTA DEL RIO HOUSING PARTNERS, L.P., ~ a California limited partnership ("Vista Del Rio"), j . i RECITALS: j A. The Parties entered into that certain agreement entitled "Disposition and Development Agreement" dated duly 20, 2009, hezeinafter refereed io as "said Agreement", for the sale of certauz real property lacated 1. at 1600 W. Memory Lane by the Agency to Vista del Ric based upon the terms and conditions contained in ~ said Agreement. . _ i T B. The Parties hereto now desire to amend the amount of the HOME loan and update the utzi# mix~azid ~ rent xestrictions contained in said Agreement. C. All other related exhibits, attachments and documents shall be amended accordingly. i E WIIEREFORE, in consideration of the mutual and respective covenants and promises herevzafter~ contained and made, and subject to all of the terms and eondidons. of said Agreement as hereby amended, ~ the parties hereto do hereby agree as fallotivs: 1 t t a 1. Section 312. HOME Laan Agreement, shall be~aniended to read as follows: f i Prior to and as a condition of Closing, Vista DeI Rio shall execute the Loan Agreement, j Attachment No. 8 to this agreement. The Loan Agreement shall provide for One Million Five Hundred~Thousand Dollars ($1,500,000.00) in federal HOME funds to Vista Del Rio, carry a ; three .percent (3.0%} interest rate, and shall be a residual receipts loan. Vista Del Rio's obligations under the Loan Agreement shall be evidenced by a promissory note in the principal amount of One Million rive Hundred Thousand Dollars {$1,500,000.00), and secured by a deed ~I of trust in the amount of One Million Five Hundred Thousand Dollars {$l, 504,004A0). j 2. The last sentence of Section 401.2. Maximum Iucoxnes shall be amended to read as follows: . "The manager's unit shall rent for an amount that does not exceed the rent paid by ~ a household whose income does not exceed the standard for "Low Income" and shall 1 I 80A-5 Exhibit 1 I~ ' _ 1 j 1 S ' have a 2009 Maximum ~'7ross Monthly Rent of $969.00, subject to deduction for utilities allowance as set forth in Sectian 401.4." ~ 3: Section 401,4. Unit Meg shall be amended as follows: There shall be (11) HUME~assisted units and (29} Agency assisted units. The HOME j assisted units shall be floating ututs and shall be distiibuted throughout the Project with ~ comparable amenities to the other units. Agency and Vista Ael Rio agree #hat the breakdown of unit affordability far the Units shall be as follows, under this Agreement and the Loan Agreement: ~ - i Agency and Vista Del Rio agree that the 'Year 2010 initial rents and the breakdown of ~ unit affordability for the Extremely Low Income-Units shall be as follows: # of Units ~ of HOME ~ 2010 Max. (Agency) units Gross Monthly - Rents'~ 3 , Studio Extremely Low ITnits 7 2 $488 One Bedroom Extremely Low Units 8 2 $523 Two Bedroom Extremely Low Units 0 1 $627 j i i Agency and Vista Del Rio agree that the Yeax 2010 initial rents and the breakdown of unit affordability for the Very Low Income Units shall be as follows; E - i # of Units # of HOME 2020 Max. I ~ (Agency) emits Gross ~ ~ Monthly ~ j Rents* l Studio Verb' Low Units 4 2 $753 i One Bedroom Very Low Units S 2 . .$861 j Two Bedroom Very Law Units 2 2 $969 i i 2 _ 3 ~ i 80A-6 i i ~ ' I E Maximtun Gross Monthly Rents shall be recalculated following issuance of a Certificate of Comgletion~prior to the time of iiutial lease-up in accordance with any changes in allowable rent and income tables as published by HUD and.the State of Caiifon~ia, and shall be as approved by the Executive birector in writing in accordance t~vith this Section. Such Maximiun Gross lYlonthly I Rents chaa-ged to the first tenants of the 41 louts (40 Units plus manager's iuzit) shall constitute the Initial Renal Schedule. ~ } x Utilities alIowai~ces must be deducted from the Maximtun Gross Monthly Rent. The Santa Ana j Housing Authority publishes the utility allowance. ~ . ~ ~ All other related exhibits, attachments and documents (including but not limited to the C'nant Deed ~ ar?d Declaration of Conditions, Covenants and Restrictions; the HOME I.aan Agreement, and the Affordability Resti~ctions on Transfer of Property) shall be amezxded accordingly. i S. Except as hereinabove rnodified, the terms and conditions of said Agreement remain unchanged and in fi~li force and effect. i i ~I i i I i S 3 1 i I a i t~ t t } I E 3 - t 80A-7 - i . . } N WITNESS WHEREOF, the parties hereto have executed this First Amendment to said Agreement the date and year first above tivritten. ~ ~ i ATTEST: COMMUNITY REDEVELOPMENT AGENCY ~ ~ OF THE CITY OF SANTA ANA ~ f f BY~ Maria D. I-Iuizar ~ Cynthia J. Nelson Secretary Executive Director ! j APPROVED AS TO FORM: Joseph VJ. Fletcher, General Counsel i By: E Lisa E. Storck Assistant General Cotu~sel 1 VISTA DEL RIO HOUSING PARTNERS, L.P., a Cali£ozaia limited partnership By: Foundation for Affordable Housing V, Inc. A California nonprofit public benefit corporation Managing General Partner j - ~ By: Deborrah A. Willard President { E f i 1 3 - I I 4 80A-8 Grantee Nams; Santa Ana GPM P Version 2.0 Project Name: New Construction ~ • Description: );DIS pro ect - UOG Codo: CA63342 SANTA ANA HOME funds to be used to subsidize the cost of construction of new Housing that vain be affordable to lower Income UouSeholds. Funding for this activity is a result of a SubstantlaLAmendment that.realigcated funds for Multi-Family - ~ Housing Acyu}s{tiort/Relzab for ?_009 (CPD X64). - - _ Location: y - ~ :...P.rlorltyNeed~Cateyo : To tie determiner! - Rental Housing . Select one: - _ . Expected Coen letion Date: . ~ ~ : - 06/30/2011 • . ~ - ~ ' . ect ve Category - ~ - . Q Decent Housing . ~ Suitable living Environment - ~ . • ~ Economlc9 rtun t ' ' - - Ppo IY ~ST~ectflb.Ob`ectTves.. ~ - • .Outcome Cate9orles . . • ~ 1 Increase the supply of affordable rental housing ?AvallabilltyJACCessibllktY ~ ~ • 2 Improve access to affordable rental housing Afforcfa~ilily • SustalnabUlty . ~ • ~ ' - ~ Accompl. Type: ~ Pro posed 40 • ` ` Accompl. Type: i _ . - ; Underwa ~ - - Complete ~ ~ rl c 1 e: A rn .T r co ~ Accom b T P YP ~ n rte ~a ~ ~ Accompl. Type: Accompl. Type: ~ a Pro osed Outcome Aerformance Measure Actual Outcome Construct new housing that 1s ~ Provide affordable houslgg ~ - affordable to lower income • opportunities to lower Income renters. - - households 12 Construction of Housing 570.201(m) ~ Matrix Codes ''r r Matrix Codes Matrlx Codes Matrix Codes T Matrix Codes ~ HOME ~ Proposed Antt. $1 S00 000 Fund Source: i Actual Amount } Fund Source: ~ Pro osed Amt. ~ Fund Source: ~ ~ - Actual Amount - t i?_ij. ~ Accompl. Type: ~ Accompl.7ype: 'r th o . L ~ r' ~ Accompl. Type: ~ _ Accompl.lype: Project y1~84 84 Exhibit 2 80A-9 CPMPVersron2.o Grantee Name; Santa Ana Pra ect Name: HOME -Multi Famif Housin Ac ui§ltion Rehab ' ° - pescriptlon: IRIS Project 7k: ~ ~ ~ " ~ UoG Code: CA63342 SANTA ANA HOMO funds will be used to assist with tl3e acqulsEtlon and/or reh~bllltatlon of rental housing. Activity was arlglnaliy funded at $1,522,t34I; however as a result of a substantial amendment, the City will reallocate $1,500,000 of..thls. amount to a new activity (see CPD.N 84•- Acquisition for Development of Affordabte Housing}. ~ - - - - - crF>_ _ _ •.k' Location: L ~ Pr~brtt' N.aetliCax~~ otYs~ . _ To be determined. • : • : ~ ~ Select one: Rental Housing r' . - - >=xpianatlort: expected Cotnpletlon pate: ~ ~ - ~ - ~ . 06/30/'1010. ~ ' ec ve, te9ory - ' ~ Recent Housing ~ ~ . ~ Suitable Living [nvlronment ~ [conomlcOppartuntly ~ , _ Outcome .Categories ~ Increase the supply of affordable yenta! housing ~ Aya11aU11lty/Accessibility . Improve the quality of affordable renfai housing _ rr ~ Affordability _ • : 2 Sustatna~lllty ~ - . ~ 3 ~ 10 Housing units ? Proposed I0...~ ~ Accompl. Typo: ~ ~ _ Underwa ~ ~ ~ Cortt Ieto 41 ~ Accompl. Type: ~ Accompl. Type: ~I ~ ~1 ~ a v Accompl. Type: Accompi. Type: Q Pro osed Oeatcome Performance Measure Actual Outcome Acquire and/or.rehab rental. - = - Correct code violations and provide ~ . 1lousfrig units - ~ affordable housing~optlons for. very lour- . ' - - Income residents 01 Acquisition of Rea! Property 570.201(a) Matrix Codes 14l3 Rehab; Mnltl-Unit Resfdentlat 570.202 ~ MaMx Codes Mabix Codes ~ hfatrfx Codes HOME Pro osed Amt. $1,522,841 . ~ `%x~ Fund Source: ~ Ln : L Actual Amount $22 84I ~ ro } Fund Source: ~ Pro osed Amt, - - Fund Source: ~ ~ - Actual Amount ~ ~'•~r Accompl. Type: ~ Accompl. Type: ~ 41 0 n. Accompl. Type: r Accompi. Type: r' Project #/64 64 80A-10