The URL can be used to link to this page

Home My WebLink About03 - Joint PH - Amend to DDA-Con Plan and Loan Agree for Vista Del Rio1" F Cf/ CY TI MEETING DATE: MARCH 15, 2010 TITLE: JOINT PUBLIC HEARING -SUBSTANTIAL AMENDMENT TO CONSOLIDATED PLAN AND LOAN AGREEMENT FOR VISTA DEL RIO CLERK OF COUNCIL USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1st Reading ^ Ordinance on 2nd Reading ^ Implementing Resolution ^ Set Public Nearing For ~~ CONTINUED TO b~-Z J~~«ev~,-.--' ) f~~Y1~ FILE NUMBER CITY MANAGER ECUTIVE DIRECTOR REC®MMNDED ACTT®N 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 3-3 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: 3-4 Substantial Amendment to Consolidated Plan and Loan Agreement for Vista Del Rio March 15, 2010 Page 3 Bedroom 30%AMI Extreme) Low Income 50%AMI Ve Low Income Size No. of Units A enc No. of HOME Units Max. Gross Rent No. of Units A enc No. of HOME Units Max. 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). P helly L ry-Bay) Housing anager Community Development Agency CJN/SL-B/mlr Exhibit: 1. First Amendment to DDA 2. Proposed Substantial Amendment APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez rt.~ Executive Director Finance & Management Services Agency 3-5 THIS PAGE LEFT BLANK INTENTIONALLY 3-6 FIRST AIVIENDlYIT+~NT TO DISPOSITION AND • DEVELUT'IVIRNT AGI2I;EMENT WJTTd 'VISTA DEL, RIO TiOUSING PARTNERS, L.P. TIITS FIRST AMENDML'NT TO DISPOSITION.AND DI?VELOPMBTIT AGREF,IvIENT (the ".Atirendment") is entered into as• of , 2010, by and beiweeti the COMMUNITY REDEVELOPMEN'T' AGENCY OF THE CITY OF SANTA ANA, a public body, corporate anil politic (the "Agency"), grid VISTA DEL I2I0 HOUSING PARTNERS, L.P., a California limited partnership ("Vista Del Rio"}, IttGCITALS: A. Tate Fairies entered info that certain agreement entitled "I~lspositiort and Development Agreement" dated 7uly 20, 2009, het+entafter referred to as "said Agreement", for the sale of certaht real property located at 1600 VJ. Memory Lane by the Agency to Vista del Ric based neon the terms and conditions cotrtaitted in said Agreement. • B, The Parties hereto now deshe to artiend the amount of the HOME loan and update the unit mix ,and rent restrictions eontahted in said Agreement, C• AIh otherxelated exhibits, attachments and doctunents shall be atuended accordingly, WHEREFORE, in consideration of the mutual and respective oovenants and promises IterehtaRer' contained and made, and subject to al(of the terms and conditions of said Agreement as hereby amended, the parties hereto do hereby agree as follows: 1. Section 312. HOME Loan Agreement, shall be'amended to read as follows: Prior to and as a condition of Closing, Vista Del Itio shall execute the Loan Agreement, Attaohment No. 8 to this agreement. The Loan Agreement shall provide foi One Milliott Five Ilundred•Thousand Dollars ($1,SOO,OOOAO) in federal HOME funds to Vista Del Trio, carry a tluee percent (3.0%) interest rate, and shall be a residual reeeipts'.loan. Vista Del Rio's obligations under the Loan Agreement shall be evidenced by a promissory note in the principal amount of One Million Pive Hundred Thousand Dollars ($1,500,000.00), attd secured by a deed of host in the amount of One Million I{ive Iltutdred Thousand Dollars ($1, 500,000.00). 2. The last sentence of Section 401.2. 14laxitnum Incorncs shall be amended to read as follows: "Tlte manager's unit shall rent for an amount that does not exceed the rent paid lty a household whose income does not exceed the standard for "Low Income" and shall '3 _ 7 Exhibit 1 have a 2009 Maximum t'nross Monthly Rent of $969.00, subject to deduction for utilitios allotvatiee as set forfit itt Seetiozi 401,4 " 3: Section 401.4. Unit Mix shall be amended as follows; There shall be (11) HOME'assisted units and (29) Agency assisted units. The HOME assisted units shall be floating touts and shall be distributed ttuoughout the Project with comparable amenities to the other units, Agmtcy and Vista Jot Rio agree that ttte breakdown of unit affordability for the Units shall be as follows, under ibis Agreontent and the Loan Agreement: Agency and Vista l~el ltio agree that the Yeu 2010 initial rents attd the breakdown of tutu affordability for the Bxtromely Low lztcomo.Utrits shalt be as follows: ' ii of Units It of HOME 2010 Max. (Agency) units Grass Monthly ltentss` Shulio Extremely Low Units 7 2 $488 One Bedroom Exhentely Low Uttits 8 2 $523 Two Bedroom Extremely Low Uiuts 0 1 $627 Agency and Vista llel Rio agree that the Year 2010 htitial rents and the breal;dotvn of unit affordability for the Very Low Income lJttits shall Ue as follows, # of Uttits ~ ~ of HOME ~ 2010 Max • (Agency) ututs Gross Mozttltly Rents£ Shtdio Very Low Units 4 2 $753 One BedroomVetyLowUttits' 8 2. .$861 'l~vo Bedroom Vety Low Uztifs 2 ?. $969 2 3-8 Maximtun Gross MonthlyRents shall he recalculated following issuance o£a Certificate of Canpletlenprior tothe time of initial lease-np in accordanoe with any changes in allowable rent oral income tables as published by T3t.l'U and the State of California, and shall be a§ approved by Qte Executive birector htwriting in accordance tvitlt this Section. Such Maximum Gross Monthly Rents changed to flte fast tenants o£the 4l writs (4t? Units plus manager's tutit} shall constihtte the Initial Rental Schedule. Utilities allowaitces must be deducted fiom the Maximtun Cn~oss Montlily Rent. Tho Santa Ana Houshtg Authority publishes the utility allotivturce. 4. All other related exhibits, attachments and docmnents (including but not limited to the Grant Deed and Declaration o£ Condition's, 'Covenants and 12osfiictions; the HOME I,oatt Agreement, and the Affordability 1tesU9ctions on Transfer of Property) shall be amended accordingly. S, Except as hereinabove modified, the terms and conditions of said Agreement remain unchanged and in fill £oree and effect. 3•- 9 N WITIV'ESS tiVEIEREOF, the parties hereto have executed this First Amendment to said Agreement the date acrd year first above tiviitten. ATTEST: COMNiCINITY REDEVELOPMENT AGENCY OF TI3E CITY OF SANTA ANA By: Maria D, kluizar Cynthia J. Nelson Secretary Execative Director APPROVED AS TO FORM: Joseph W. Pletcher, General Counsel By: LisaE. Storck Assistant General Cormsel VISTA DEL ItiO IIOTJSING PARTNERS, L.P•, a California limited p~u•tnership By: FouitdationforAf£ordableHousingV,Inc. A California notipYo£rt public benefit corporation ivlanaging General Partner By; Deborrah A. Willard President 4 3-10 Grantee Name; Santa Arta HOh1H fUltdS to be used to subsidize the cost of construction of new Itouslnp that will be atfortlabte to lower income • . hougeholds, Fwtding for this activity is a rosult of a SubstantlaLAmondmont that.realtouated funds far tdulti-Family .::. ISOUSInq.Acqulsition/Rehab for?009 (BPD tt64j. ~ ~ ~ ~~ ~ ` ~ ~ ~ ~~~ ~ ~~ ~ •'~~ • ' :0 6Q determined •. ~ RentalHousing '~ SpfppC pne: - - . .. CXaIallatlOllt ixpecteti Com lotion Aatet • ~ .` ' " -~0 ec ve aegotY ~ .. ~ ~ ~ ~ ~ - .. "p pecent Housfnfl _ _ ' ' ~ '. ~ SNtabie Hvinq t nvironment ~ F t t Ic0 ort nit tol oti nn u Y -_ :,:~<',;x.k:.;:~.,-_ , ~~x:t:s^ -~.::_:-: - --~:t~=-^..ct.a7,'., ~.,_.;z~~~:~a~:r;~-~r' >° `:+8 a~01i oet j r ~ V ~ _ . . x ,~,.,..,~r s, ~-,r:::.~. ,. os: , r;.=-,a~~,l~-t~.W-_ :.~...: jtocff1 T c 7 .k0ulcorne CategoHes 1 Inttease the supply of affordable rental housing r' ^Avallo411ity/AC~esiibllity " ':: , . tmproveaccesstoatfordablerontalhausing ~ ' ` 2 ~Aftorilapllily ; : ._ , . .., (~SUStafpabVlty. ', ' : '- g ~° CogstrucE hevt housing that Is.. ' =Provide affordable housigg affordable to lower income: opp4rtunitles to lower Income renters. H,.,...,,i,,.~.r. 17. Construction of Housing 5y0.201(m) ~ ~ i Matrix Codes i MatrtxCOdes 'r' hlatrizCodes '- MatrixCoties ~ hlabtxCodes ~ N HOh1E ~ Pro tosed Amt, $t 50o Oqo ~Ti€ §:`=,u. Fund Source: 1. 'Actual Amount '~' _~~* Fund source: ~ PYO osedAmt ~s#k FundSOtuce; .: ~~IACtuulAntount =~~-'e ~ ,,;,3 ~ Ac<ompi. rypel 'r ?s° Accompli Type: 0. AccomPl, Type: ~ `%~~ At<ompl. Typo: Project /k84 84 3 -11 Exhibit 2 cprlPVers:on 7,0 Grantee Nama; Santa Ana Pro~aat Namo: HOME -Multi Famil Housln Ac ulsltion Reitab ~ ' Doscrlptlon: IRIS PYO oct fJr ~ ~ " '' UOG Codo: CA63342 SANTA ANA HOME funds will be used to assist ivlth .the acqulsltlw7and/or rehpbllltatfon of rental houslnp. Activity }vas orlplnally '.' '; funded pt $1,522,841; however as a rosult of a substantial amandment, the Clty will reollocpte $1,500,Q00 ot.thls..`~ ' amount-to a nor{ activity (see CPD,(/ 84 - Acqulsit{oP for Development of.Affordable tipush?fl)• , _, y.,'::,:. °. ;: `, , . F l° qX.i - e, y}_._,.an FLy i.e.'.v rnY" - - ra'•.ti4-s, e _~-.. '>l^Y"tX'i'gyv.~::.:«~K Location; t:? '~~:. sS-.• -s,:k ~ ~ , ~'~ ~ ?:h. ~ q .'x. ;vni3 s<'";. ; K ~~~:-t.,Pr~orlt~"Ndatlt.Qilt!3flat~k'tic,.y. '>~4-;.?~: }=:;s To be determined, ' ~ ~-~-~.: ~ ~ '' ' ' Select one: -°•----°-'- RentalHousinp ~ ~ - ~ .'' ~XI11aI7atl0m HXpeCted Coutpletion Pate: •" ' ' ~ " ' ' ` `- ' ' - . .... 06/30/201'0 ~ .. .. ..... .. .. ......_ ... .. - - .. ~ Q DecenF ttousing ~ • O Suitable lfvtng Gnvlrm:ment ~ Occononllcopportunlty rt;.r.:. .~_ ::~-„~_ ~ti4~~- -,.*s~r~ - <;~~,r_~r-s;' ;•. =a'- - -- ~ t...2`• 6. ;~v k $ 90l(lo, =, s~}3k Ol)1ecZtvaeXt L`. '`= . . . F c ; outcome.Cate{lorles Increase the supply of affordable rental housln0 •+ i ~jAyallabllily/Accessibility ;.. : • . • : . ~Affor~akltil t 2 fmprovethoqualllyofatfordablorentallwuslnfl 'o' , y,; ` ~ .~susta(nzhillly;': '` ' ` ~ ~ 3 ~' ,~ IOHouslnflUnlts r Pro osad 10..:?:;,' Accompl,Typo; ~ Undarw ~ a Com loko N ~ ~' L~ Acconlpl. Type: ~ ACCan7pl. Typo: 7 . va 'n a ~ Accompl. Type; `-' Actompi, Typo; ~ a proposed Outcome gerFot•Inattce Measut'e Actual Outcome Acgalre and/or,rehab rental, ',' ~ =~~ Correct code violations and provWe ' ' ~. °. '"-. >'•''• ~"~ "'= ' ~' ='~ ~" " ~' _ ~ ~'-~ .. .., ... ~ bousb)c~ unl{& ' . , .° ', ~ affordable housing optlons for. vary Ipw• Incomo residents ' ' 41 Acqulsldon of Real Property 570.7.01{a) r Matrfx Codes ~ 14o Rehah; Dtullf-Unit Resldantia{ S7o,202 '• MaMx Codas w Matrfx Codes Y piatdx Codes ~r uy HOMC ~- Pro osad Amt. 1 522 841- ` f~,;K° Fund SOU(ce: ;(l ' " 7 4 Actual Amount ~2z,841 ., i^ -~,~ ,~ N W ~~r Fundsourto: ~ Pro osadAmt~ '~'~;~<~tiFundSourco: ~ ~ - Actual Amount - Accompl.typo: ~ Ac<ompl.'rype; t to 0 Accompi. Typa; '+' Acwmpl. Type: r Project 4064 64 3-12