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Home My WebLink About03 - 2nd Amendmt - DDA Vista Del Rio`V~ ~' AGENCY BOARD MEETING DATE: DECEMBER 20, 2010 TITLE: °y -,' L~ Sm, ° -, ~ , ,..~ ~? SECOND AMENDMENT TO THE DISPOSITION AND DEVELOPMENT AGREEMENT WITH VISTA DEL RIO HOUSING PARTNERS, L.P. E ECU DIRECTOR C IV CTI AGENCY SECRETARY USE ONLY: APPROVED ^ As Recommended ^ As Amended ^ Ordinance on 1St Reading ^ Ordinance on 2"d Reading ^ Implementing Resolution ^ Set Public Hearing For_ CONTINUED TO FILE NUMBER Authorize the Executive Director and Agency Secretary to execute the attached Second 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. In addition, the City Council authorized a loan agreement with the Developer in an amount not to exceed $500,000. At the time, the project budget anticipated that the majority of the project's costs would be met with 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 otherwise have identical scores. Those projects that have more public subsidy rank higher. The purpose of this is to reduce the subsidy to individual projects to then fund more projects throughout the State. In March 2010, the City Council authorized the execution of a loan agreement with Vista del Rio in an amount not to exceed $1,500,000. This represented an increase in the amount of HOME funds committed to the project from $500,000 to $1.5 million which would significantly improve the project's chances for success in the next tax credit application round. The Developer was again unsuccessful in obtaining tax credits. One of the performance milestones identified in the DDA states that all financing must be in place no later than December 3-1 Second Amendment to DDA with Vista Del Rio December 20, 2010 Page 2 31, 2010. The Developer is requesting an extension of the closing date to occur no later than December 31, 2011, to accommodate submission of another tax credit application in March 2011. FISCAL IMPACT There is no fiscal impact associated with this action. r ~ ~ Shelly ~ dry-Bayle 0 Housing Manager Community Development Agency CJN/SLB/VU/kg Exhibits: 1. Second Amendment 3-2 SECOND AMENDMENT TO DISPOSITION AND DEVELOPMENT AGREEMENT WITH VISTA DEL RIO HOUSING PARTNERS, L.P. THIS SECOND AMENDMENT TO DISPOSITION AND DEVELOPMENT AGREEMENT (the "Amendment") is entered into as of this day of , 2010, by and between the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA, a public body, corporate and politic (the "Agency"), and VISTA DEL RIO HOUSING PARTNERS, L.P., a California limited partnership ("Vista Del Rio"). RECITALS A. The Parties entered into that certain agreement for the sale of certain real property located at 1600 W. Memory Lane by the Agency to Vista del Rio based upon the terms and conditions contained in said Agreement entitled "Disposition and Development Agreement" dated July 20, 2009, amended by that certain First Amendment dated March _ , 2010, hereinafter collectively referred to as the "Agreement", B. The Parties hereto now desire to further amend said Agreement to extend the Outside Date for close of escrow due to unforeseen financial circumstances. C. All other related exhibits, attachments and documents shall be amended accordingly. WHEREFORE, in consideration of the mutual and respective covenants and promises hereinafter contained and made, and subject to all of the terms and conditions of said Agreement as hereby amended, the parties hereto do hereby agree as follows: 1. Section 202.4 Closing shall be amended to read as follows: The Conveyance of the Site shall close (the "Closing") within five (5) business days after the Parties' satisfaction (or written waiver, as the case maybe) of all of the Agency's and Vista Del Rio's Conditions Precedent to Closing of the Site as set forth in Section 205 hereof. In no event, however, shall the Closing occur later than December 31, 2011 (the "Outside Date"). In the event that Closing does not occur by the Outside Date, this Agreement maybe terminated by either party pursuant to section 202.5 of this Agreement. The "Closing" shall mean the time and day the Grant Deed is filed for record with the County Recorder. The "Closing Date" shall mean the day on which the Closing occurs with respect to the Site. 2. All other related exhibits, attachments and documents shall be amended accordingly, where necessary to implement the intent of this Amendment. EXHIBIT 1 3-3 3. Except as hereinabove modified, the terms and conditions of the Agreement remain unchanged and in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment to said Agreement the date and year first above written. ATTEST: Maria D. Huizar Secretary APPROVED AS TO FORM: Joseph W. Fletcher, General Counsel By: Lisa E. Storck Assistant General Counsel Cynthia J. Nelson Executive Director VISTA DEL RIO HOUSING PARTNERS, L.P., a California limited partnership By: Foundation for Affordable Housing V, Inc. A California nonprofit public benefit corporation Managing General Partner Bv: Deborrah A. Willard President COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA By: 2 3-4