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HomeMy WebLinkAboutMERIT HOUSING INCORPORATED - 1999-07-06Al CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFQRNIA 92648 OFFICE OF THE CITY -CLERK CONNIE BROCKWAY CITY CLERK LETTER OF TRANSIMITTAL OF ITENI APPR0VE1) BY THE CITY COI CIU RFDF.VI^i.OPATEN7 AGENCY OF THE CITY OF IRTINUI\GTON REACIT DATE: l i'v 7 Now ;j" ma City, State, �j ATTENTION: DEPARTINIENT: Exae , REGARDriG: See Attached Action Agenda Item I Date of Approval Enclosed For Your Records Is An Executed Copy Of The Above Referenced Agenda Item. Remarks: Connie Brockway City Clerk Attachments: Action Agenda Page Agreement ✓ Bonds RCA Deed CC: Insurance Other Res. Alo.3a l � ��Lerrd�Lea6� Name partment RCA Agreement Insurance a, • ..- Nartte Department RCA Agreement Insurance Name A.30 � Other Rcf"�.a01 Other Department RCA Agreement Insurance Other Name Department RCA Agreement Insurance Other Risk Management Dept. Insurance Received by Name - Company Name - Date 0: 0I10tsup/cavefltf (Ttlephone. 714-536-52271 014VI Council/Agency Meeting Held:, Deferred/Continued to: ® Approved . ❑ ondition Ily Approved O Denied ' 4ja- City Clerk's Signat e Council Meeting Date: July 6, 1999 -t Department ID Number: ED 99-36 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL/REDEVELOPMENT AGENCY ACTION SUBMITTED TO: HONORABLE MAYOR/CHAIRMAN AND CITY COUNCIL/ REDEVELOPMENT AGENCY MEMBERS SUBMITTED BY: RAY SILVER, City Administrator/Executive Directorate PREPARED BY: DAVID C. BIGGS, Economic Development Director SUBJECT: Approve Financial Support for Bowen Court Senior Apartments Tax Credit Application Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status. Attachment(s) Statement of Issue: Merit Housing Development Corporation (Merit) requests support for an application to the California Tax Credit Allocation Committee (TCAC) for federal tax credits for the Bowen Court project. Funding Source: Redevelopment Housing Set Aside Funds E-TX-ED-967-639-00 and E-TX-ED-968-6-1 0-00. Recommended Action: (Redevelopment Agency) Motion to: 1. Adopt Agency Resolution No..3 01 authorizing funding support by the Huntington Beach Redevelopment Agency with a grant of Agency -owned land acquired at a cost of $885,000 and $850,000 in additional subsidy, and an additional loan of $950,000 in redevelopment housing set aside funds, for the construction of the Bowen Court senior apartments by Merit Housing Development Corporation. 2. Approve and authorize the Agency Chairman and Agency Clerk to execute the Option Agreement with Merit Housing Development Corporation (MHDC). 3. Authorize Agency staff to negotiate a Disposition and Development Agreement (DDA) with Merit Housing Development Corporation if tax credits are awarded to the proposed project by the Califomia Tax Credit Allocation Committee (TCAC). Recommended Action: (City Council) Motion to: 1. Waive the required liability insurance for Merit only as they apply to the site control document, and only for purposes of applying for tax credits. This waiver will not be requested when a DDA is approved at a later time. REQUEST FOR REDEVELOPMENT AGENCY ACTION MEETING DATE: July 6,1999 DEPARTMENT ID NUMBER: ED 99-36 Alternative Actionfs : Do not approve support for the transaction, thereby canceling a tax credit application at this time. Analysis: Starting in 1995, applications have been submitted for tax credits and HUD Section 202 funds. Though scoring high in both programs, no awards were made to the project. With a new administration in Sacramento, new leadership has been installed in TCAC and changes have been made to the tax credit process. The most significant being the elimination of the lottery process. In prior tax credit funding competitions, Bowen Court scored high enough to be placed in the lottery pool, but was never drawn. Under the new system, projects will have to be chosen based solely on merit. In addition, there is now a small project set aside for projects of 20 units or less. Merit Housing Development Corporation (Merit) and representatives of the Related Companies (Related) met with staff in May of 1999. Merit is replacing Orange Housing Development Corporation (OHDC, a sister non-profit) as the nonprofit sponsor of the project. Related is assisting Merit with the application and is providing substantial resources to the project. At that meeting, Merit requested staff support for a tax credit application to TCAC. This application to TCAC is due by July 15, 1999, and must have preliminary evidence of City/Agency support (in the form of resolutions) and site control submitted with the application. There are no monetary deposits required from the Agency for the application. A draft copy of the tax credit application is on file with the Agency Clerk. These actions are similar to those the Agency took on May 20, 1996, when the last tax credit application was filed (Attachment No. 5). The Proposed Project: Bowen Court Senior Apartments As it is currently entitled, the project consists of a maximum of twenty-one one -bedroom apartments in a two-story building. Merit proposes to remove one unit so the project can be evaluated under a "small project" category by TCAC. Staff has no objection to a twenty -unit project. All of the units will be approximately 565 square feet and will provide full kitchen facilities and private outdoor space. The complex will have a small clubhouse that includes central mail delivery and laundry facilities. This project will not provide dining or medical services as it is meant for seniors capable of independent living. Bowen Court will be owned and managed by Merit, a certified nonprofit housing sponsor. Very low-income seniors with will occupy all of the units for a minimum affordability period of 30 years. A preliminary pro forma is attached for your review (Attachment No. 4). Development costs for a 20-unit project is expected to be $4.2 million, including land. Federal Tax Credits will provide approximately $1,250,000 of the Development Costs. In addition to the Agency's land contribution of $885,000, there will be an additional direct grant of $850,000. The Agency will also leverage the rental income produced by acting as a lender for the permanent financing; the project can support debt of approximately $950,000 given the Agency's lower cost of borrowing at a current rate of 5%. RAATCACI.DOC -2- 06/24199 2:47 PM REQUEST FOR REDEVELOPMENT AGENCY ACTION MEETING DATE: July 6, 1999 DEPARTMENT ID NUMBER: ED 99-36 The proposed project is consistent with the California Health and Safety Code (redevelopment law), which requires redevelopment agencies to provide (or assure provision by others) affordable housing. The Agency can count all twenty units toward its inclusionary (production) housing requirement since the project is located within the redevelopment project area. This project is also consistent with the broader City stated goal of provided housing to all economic segments of the community (City Goal #8); the City's Housing Element; and CDBG Consolidated Plan. Environmental Status: Not applicable to this action. Attachment(s): RCA Author. G.A. Brown, ext. 8831 RAATCACI.DOC -3- 06/24/99 2:47 PM Agency Resolution ATTACHMENT #1 RESOLUTION NO. 301 A RESOLUTION OF THE REDEVELOPINIEh"T AGENCY OF THE y CITY OF HUNTINGTON BEACH AUTHORIZING FUNDING SUPPORT FOR MERIT HOUSING INCORPORATED TO CONSTRUCT AN AFFORDABLE HOUSING PROJECT WHEREAS, the Redevelopment Agency of the City of Huntington Beach (the Agency) has State mandates to construct affordable housing; and Affordable housing is needed to provide housing for our citizens; and Merit Housing Incorporated (MHI) has identified a project site known as the Bowen Court Project; and and MHI will need to acquire funding assistance from Federal and State tax credit programs; The Agency's funding assistance is required and has been requested by MHI to construct the Project; and Based on the funding assistance, the Agency will require a Disposition and Development Agreement (DDA) for regulation of the Project; and A funding commitment from the Agency is necessary to allow MHI to apply for the Federal and State tax credit program; and the Agency's funding assistance is available, conditioned upon: 1) MHI receiving Federal and State tax credits, and 2) MHI reaching agreement with the Agency on the DDA. NOW, THEREFORE, the Redevelopment Agency of the City of Huntington Beach does hereby resolve as follows: SECTIONI. That a grant of Agency -owned land with a value of approximately S885,000; and a grant not to exceed $850,000 to ensure affordability; and a loan not to exceed 41s:4-"Rcso1utions:N1 crit601 RLS "-366 0612S "- #2 5950,000.00 in housing set aside funds as a residual receipts loan (at five percent (5%) interest) is committed to this Project, conditioned as indicated above. SECTION 2. That the Executive Director is hereby authorized and directed to assist MHI in its tax credit application and to execute any and all documents on behalf of the Agency as necessary or appropriate thereto. PASSED AND ADOPTED by the Redevelopment Agency of the City of Huntington Beach at a regular meeting thereof held the 6th day of Jul , 1999. ATTEST: Agency Clerk REVIEWED AND APPROVED: Executive"Director Chairman APPROVED AS TO FORM: ,&r Agency Counsel 2 MT TED AND APPROVED: Director of Economic Development 4!sA-99Rm1utions:Mc i1601 RLS 99-366 06t25!99 - N2 Res. No. 301 STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF HUNTINGTON BEACH I, CONNIE BROCKWAY, Clerk of the Redevelopment Agency of the City of Huntington Beach, California, DO HEREBY CERTIFY that the foregoing resolution was duly adopted by the Redevelopment Agency of the City of Huntington Beach at a regular meeting of said Redevelopment Agency held on the 6th day of July,1999 and that it was so adopted by the folimming vote: AYES: Bauer, Green, Dettloff, Harman, Sullivan NOES: None ABSENT: Garofalo ABSTAIN: Julien e Clerk of the Redevelopment Agency of the City of Huntington Beach, Ca. Site Control Document ATTACHMENT #2 OPTION AGREEMENT BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH AND MERIT HOUSING INCORPORATED THIS OPTION AGREEMENT ("Option Agreement') is made and entered into as of the "Effective Date" (as that term is hereinafter defined), by and between the Redevelopment Agency of the City of Huntington Beach ("the Agency"), and Merit Housing Incorporated ("Optionee'). RECITALS The Agency is a public body, corporate and politic, organized and existing under the California Community Redevelopment Law (Health & Safety Code § 33000 et seq.). The Agency desires to assist affordable housing projects; and Optionce is a California nonprofit 501(c)(3) corporation which has as one of its purposes the provision of affordable housing for households; and The Agency is the owner of real property consisting of approximately .75 acres, located at 1968, 1972, 1976, 1978 and 1982 Lake Street in the City of Huntington Beach (the "Property"). Attached hereto as Exhibit "A" and incorporated herein by this reference is the legal description of the Property; and Optionce desires to obtain an option to acquire the Property and accept the grant of the Property from the Agency, and the Agency desires to grant an option to acquire the Property to Optionee, on the terms and conditions set forth in this Option Agreement, and thereafter to transfer and convey the Property in order for Optionee to develop 20 single bedroom affordable rental apartment units for seniors only on the Property (the "Project"), NOW, THEREFORE, the parties hereto agree as follows: 1. Grant of Option. The Agency and Optionee agree that for the entire "Option Period" set forth in Paragraph 2 below, Optionee shall have the right, but not the obligation, to acquire the Property and to accept the grant of the Property subject to the terms and provisions set forth in this Option Agreement. 2. Qp1ion Period. The term of the option provided to Optionee by the Agency pursuant to this Option Agreement shall commence on the Effective Date hereof and terminate at 5:00 p.m. on June 30, 2000, unless sooner terminated as provided herein ("Option Period'). 3. Manner of Exercise of Option. Provided Optionee is not in default hereunder, Optionee may exercise its right to acquire the Property by delivering written notice to the Agency of Optionee's exercise of the option. 41s:4-99Agrce:h1cHt RLS 99-366 6,'Z"99 4. Failure to Exercise Option. In the event Optionee fails to exercise the option in accordance with the terms hereof by the expiration of the Option Period, or if Optionee delivers to the Agency written notice that Optionee desires to cancel this Option Agreement during the Option Period, Optionee shall have no interest whatsoever in the Property and this Option Agreement shall become null and void of no force and effect, provided, however, Optionee shall within fifteen (15) days after the expiration of the Option Period, deliver to the Agency all tests and studies and reports related to the Property prepared by or for Optionee, including but not limited to soil tests, engineering reports, and marketing plans. S. Terms of Acquisition. Optionee shall acquire the Property and the Agency agrees to convey and transfer the Property by grant at no cost to Optionee. The parties acknowledge and agree that the fair market value of the property is $885,000 and the parties further acknowledge and agree that the justification for a grant of the Property at no cost is to allow the Agency to provide a "land write -down" subsidy to assist the development of this affordable rental housing project for the elderly. 6. Reservation of Low Income Housing Tax Credits. The Agency acknowledges that Optionee is submitting an application with respect to the Property to the State of California Tax Credit Allowance Committee ("TCAC') for a preliminary reservation of Low Income Housing Tax Credits ("LIHTC") for an affordable housing project for elderly persons. Within ten (10) days after receipt of notice from TCAC as to whether or not the Project has received a preliminary reservation of LIHTC, Optionee shall notify the Agency whether or not the Project has been granted a preliminary reservation of LIHTC. The Agency agrees to fully cooperate with Optionee in fulfilling the requirements for the application for LIHTC by taking all necessary actions required of it in connection with the application for LIHTC. The Agency further agrees that if Optionee does not receive a preliminary reservation of LIHTC, during the Option Period the Agency will cooperate in subsequent applications for LIHTC reservations or in Optionee's attempts to obtain other suitable financing for the Project. 7. Title Policy. Within thirty (30) days following notification by TCAC to Optionee that the Project has received a preliminary reservation of LIHTC, the Agency shall furnish Optionee with a preliminary title report from a title company selected by Optionee. This report shall be paid for with funds previously made available to Optionee for pre -development costs. Optionee shall notify the Agency of any objectionable items within thirty (30) days of receipt of the preliminary title report and the Agency shall use its best efforts to remove such items. Within ten (10) days thereafter, Optionee shall either accept the condition of title or terminate the option, provided, however, such acceptance shall not extinguish any rights Optionee shall have to further review subsequent preliminary title reports and request that the Agency remove items from the title during the period prior to which the Agency transfers title to the Property to Optionee. 8. Right to Enter. During the Option Period, Optionee, and through Optionee its designated agents and independent contractors, shall have the right, upon reasonable prior notice to the Agency, to enter upon any portion of the Property for the purpose of conducting soil tests, engineering and boundary surveys, environmental studies and hazardous waste determination, 2 Cs:4-99Agreellcrit RLS 99-366 &7M and other investigations relating to the Property and Optionee's acquisition thereof and development of the Project thereon, as are deemed necessary and required by Optionee, subject to the possessory interests of any lawful occupants of the premises. Optionee agrees to indemnify, defend, and hold the Agency, and the Property free and harmless from and against any and all liabilities resulting from Optionee's activities as provided in this Section 8, including but not limited to mechanic's liens. Optionee shall provide general liability insurance in the coverages and amounts required by any currently applicable Huntington Beach City Council Resolution, and shall name the Agency and the City of Huntington Beach and their agents, officers and employees as additional insureds on all such insurance policies. Optionee agrees to bear all costs in connection with all work performed by Optionee or by others on behalf of Optionee. Optionee agrees to promptly repair within two (2) weeks any damage or disturbance it or its agents or independent contractors cause to the Property and to restore the Property to its pre-existing condition. The Agency agrees to provide to Optionee all studies, reports, analyses, or other similar documents and information the Agency may have in its possession and control which relate to soil condition, boundaries, environmental issues, hazardous wastes, and the like. 9. Commissions. The Agency and Optionee each represent to the other that neither has entered into any agreement or incurred any liability which might result in the obligation to pay a finder's or broker's or sales fee or commission with respect to the transaction contemplated hereby. The Agency and Optionee each agree to indemnify the other for the cost incurred as a result of any claim for such fee or commission caused by the acts of the indemnifying party whether or not such claim is successful. 10. Exchan-ge. Optionee agrees to cooperate with the Agency in any IRC Section 1031 exchange, provided Optionee shall have no expense or liability by reason thereof and provided that the time for performance is not extended thereby. 11. Notice. Any notice or demand to be given by one party to the other shall be delivered by (l;) personal service, (ii) a reputable document delivery service such as Federal Express that provides a receipt showing date and time of delivery, (iii) facsimile transmission if confirmation of transmission receipt is available and the original is delivered by one of the other means set forth in this Section 11, or (iv) United States mail, postage prepaid, certified, addressed to the parties at their respective addresses as follows: To Agency: Redevelopment Agency of the City of Huntington Beach Attn: Director of Economic Development 2000 Main Street Huntington Beach, CA 92648 3 4!sA-99Agree:h1crit RLS 99-366 6.T" To Optionec: Merit Housing Incorporated Attn: Linda Boone, Chief Exec. Officer 217 East Chapman Avenue Orange, CA 92866 With copy to: City of Huntington Beach City Attorney's Office Agency General Counsel 200 Main Street Huntington Beach, CA 92648 With copy to: Barbara Leibold McNamara, Van Blarcom, McClendon & Leibold 307 E. Chapman Avenue Orange, CA 92866 Notices delivered by personal delivery document delivery service providing acknowledgement of receipt as described above, or facsimile transmission with confirmation of transmission shall be deemed received on delivery or transmission. Notices delivered by mail shall be effective at noon on the second business day following deposit with the United States Postal Service. Either party may change the address at which it desires to receive notice by giving written notice of such request to the other party in accordance with the terms of this Section 11. 12. Attomevs' Fees. In the event of any litigation between the parties to this Option Agreement, each party shall bear its own costs and attorneys' fees. The prevailing party shall not be entitled to recover its reasonable attorneys.' fees and costs. 13. Applicable Law: Forum: Service of Process. This Option Agreement shall be governed by, and construed under, the laws of the State of California. The parties hereto agree that the Superior Court of the State of California in and for the County of Orange shall have exclusive jurisdiction of any litigation between the parties arising out of or connected to this Option Agreement. Service of process on the Agency shall be made in accordance with the requirements for service of process on a public entity. Service of process on Optionee shall be made in any manner permitted by law and shall be effective whether served inside or outside of California. 14. Interpretation. This Option Agreement shall not be interpreted for or against either party notwithstanding any rule of construction that might apply. 15. Waiver or Modification. A waiver of a provision hereof, or other modification of any provision contained herein, shall be effective only if said waiver or modification is in writing, and signed by the party waiving its rights. No waiver of any breach or default by any party hereto shall be considered to be a waiver of any breach or default. 16. Successors and Assigns. Optionee shall not have the right to assign its interest under this Option Agreement without the prior written consent of the Agency first had and obtained, which consent shall not be unreasonably withheld. No assignments by Optionee shall be effective unless and until the proposed assignee has agreed in writing to accept the terms and conditions hereof. 17. Severability. In the event that any provision of this Option Agreement is void, illegal, or unenforceable, the balance of this Option Agreement shall be performed and be enforceable to the extent the same can be accomplished consistent with the intent of the parties. 4 4ISA-99Agree:Rterit RLS 99-366 6R199 18. Survival of Covenants. The covenants, representations, and warranties of the Agency and Optionee set forth in this Option Agreement shall not merge with any grant deed for the Property. 19. Amendments. This Option Agreement may be amended only by an instrument in writing signed by all of the parties hereto, alter all required actions of the parties' governing authorities. 20. Entire Agreement. This Option Agreement contains the entire agreement between the parties relating to the subject matter hereof. 21. Time of the Essence. This is of the essence in the performance of the terms of this Option Agreement. 22. Effective Date. The effective date of this Option Agreement shall be the date this agreement is adopted by the Agency. 23. Recording of Memorandum of Option. Upon request of either party, the parties shall execute and record a Memorandum of Option in a form acceptable to counsel for the Agency and Optionee. The Executive Director of the Agency is hereby authorized to execute said Memorandum on behalf of the Agency. Balance of page intentionally left blank 5 4.'sA-"AgMC:hlcrit RLS "-366 6,12199 24. Ouitclaim Deed. If this Option Agreement expires by its terms or its terminated for any reason, and a Memorandum of Option has been recorded, Optionee agrees, within five (5) days of request therefor by the Agency, to execute, acknowledge, and deliver to the Agency a quitclaim deed and any other documents or instruments required to remove the cloud of this Option Agreement from the title to the Property. IN WITNESS `WHEREOF, the parties hereto have executed this Agreement as of the Effective Date. OPTIONEE: MERIT HOUSING INCORPORATED By LINDA BOONE Chief Executive Officer Name Scott Parker (type or print) Its (circle one Secrets /Any Assistant Secretary/ Chief Financial Ofiicui ny Assistant Treasurer REVIEWED AND APPROVED: Exeddfivc Director R 4/s:4-99AgreeNcrit RLS 99-366 612/99 AGENCY: THE REDEVELOPMENT AGENCY OF THE =GTON BEACH Chairman ATTEST: L Agcncy Clerk' APPROVED AS TO FORM: �1 VAgency Genera? Counsel b'�q INITIATED AND APPROVED: Director of Economic Development 6- 'kAk EXHIBIT A SHEET 1 OF 2 EXHIBIT 'A' LEGAL DESCRIPTION ; ALL THAT CERTAIN LAND SITUATED IN THE CITY OF HUNTINGTON BEACH . COUNTY OF ORANGE, STATE OF CALIFORNIA AND BEING A PORTION OF THE ALLEY OF TRACT MAP NO. 13920 RECORDED IN BOOK 673. PAGES 14.15 AND 16 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY. DESCRIBED AS FOLLOWS : BEGINNING AT THE SOUTHEAST CORNER OF LOT 5 OF TRACT MAP NO. 13920 ; THENCE SOUTH 890 40' 54" EAST. 20.00 FEET TO THE EASTERLY LINE OF THE ALLEY RIGHT-OF-WAY ; THENCE NORTH 000 19' 18" EAST . 206.71 FEET MORE OR LESS TO THE SOUTHERLY RIGHT-OF-WAY OF YORKTOWN AVENUE AND ALSO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 850.00 FEET ; THENCE NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 10 20' 59" AN ARC DISTANCE OF 20.02 FEET TO THE NORTHEASTERLY CORNER OF LOT 1 OF TRACT MAP NO. 13920; ALSO THE WESTERLY RIGHT-OF-WAY OF THE ALLEY ; THENCE SOUTH 000 19' 18" WEST . 207.71 FEET MORE OR LESS TO THE POINT OF BEGINNING . I.. INDER ENGINEERING, INC. 1818 WEST CHAPMAN AVENUE SUITE M. ORANGE. 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The threshold basis was adjusted ba-tied on our current understanding of this eakulation from MAC. According to our xiaiysis, the required City subsidy would be $850,000 in addition to the $885,000 land grant previously discussed. Let me know if you have questions. JLJN-24-1999 13:09 949 660 7273 97% P.01 0 a: rn r, cso', rn w H Ld PROJECT SLYWNIARY 11UNTINGTON BEACH - Bowen Court Related Companies of California 1 Nferit housing Corporation ' 24-Jun-99 IProleet Data Total Development Cost S4,169,252 Total'hits 20 Cost rer Sq. root S365.72 Parking Spaces 29 Cost per Unit S208,463 Site Area 32,670 Sgrt Garage Area 4,240 SqR Economic_Assumptloas Net Residential Area 10,900 SgF1 Vacancy Rate 5.00% i Gross Floor Area 11,400 SgF1 Income Inflator 2.506/6 Units Per Acre 26.67 Expense Inflator 3.50°% Number of Bedrooms 20 Cap Rate 8.500/0 jor Credit Parameters Special Construction Feantres: yo Federal Applicable Tax Credit % 8.27% Thresbold Basis Lirnit (wllmpacl Fees) 100.000/4 S1379.199 State Applicable Tax Credit % 30.00% Total Eligible Basis $3.058,752 High Cost Area Adjustment No I00.00% Percent Eligible over basis Limit: 171.85% Requested Eligible Basis $1,779,899 Construction Loan Parameter Construction Loan Fees 1.00% Available for Debt Service $61,316 Cosst Loan Rate 8.75% Maximum Serviceable Loan (ya Rate S951,839 Actual Loan Amount S950,000 Perm anent_Figancfns Actual Debt Senice S61,198 Permanent Loan Costs & Fees 4.50% Permanent Loan Rate 5.00% Olber Equity SO Debt Coverage Ratio 100.00% Deferred Developer Fee 0.006/0 SO Amorti-zation Period 30 years Annual Federal Tax Credits $147.198 Tax Credit Factors (State, Fed.) 74.00% 74.00% MI Tots[ Per Unit Net Investor EquityQa 99.99% S1,484,252 Gross Scheduled Rent S125,400 $6,270 Land Grant From Redevelopment Agenev $885,000 Other income S1,440 372 Vacancy & Collection ($6,342) (b317) Effective Gross income $120,499 S6,025 Total Financing Sources S3.319,252 Operating E%pcnscs S59,182 $2,959 Overl(Under) (S850,000) Net Operating income $61,316 $3,066 It Actual Debt Service %61,198 $3,060 Construction Loan Amount S1,543,701 I UNIT D1STR1 UTION 24-Jun-99 JILNTINGTON BEACH - Bowen Court Related Companies of California! Merit Houslag Corporation o' 7'ota! Total Total a lumber Income Volt VAI Sloe Cross 'ljti7it} Jet Net Rent Percent llfombly Anylual Square Of Unita Category T)pe (Sq. FL) Reol Allowance Rent Per SgFl Of UNts ]lent Rent Footage - - - - - --- 00' 0 35%7C IBRJI B& 540 S449 $34 S414 $0.77 obo% $0 $4 0 0 Ni 19 46VSTC IBRl1 DA 540 S584 S34 S550 S1.02 95.00°% S10,450 $125.400 10,260 '-` 0 50%TC IBRd113A 540 $640 $34 $606 S1.12 000% $0 $o 0 k 0 60°% TC 111R/l BA 540 $768 $34 S734 $1.36 0.00% SO SD 0 19 1 BR Uni is 0 40°OTC 111PA 13A 710 S611 150 5565 10.78 0.01% SO SO 0 0 46°%TC 2DR11 BA 720 S707 $50 S657 $0.91 0.00% 50 SD 0 � r3 0 50%TC 28RJ1 BA 720 3769 S50 S718 S1.00 0.00% SO SO 0 0 60%TC 2BR/l BA 720 $922 S$O S972 S1.21 0.00% SO so 0 0 2BR Units 0 40°%TC 3BR12 BA 1025 S710 $59 $651 So.64 0.00% $0 $0 0 0 46%TC 313R2 BA 1025 S837 S$} $758 $0.74 0.00% S0 so 0 0 50°%TC 3BR/2 BA 1025 $989 $59 S829 $0.91 0.0001, TO So 0 M 0 60%TC 313R/2 BA 1025 S1,065 S59 S1,006 $0.98 0.000/1, so $o 0 N 0 3I311 Units F`! M 0 40°%TC 4BR12.513A 1237 1237 $792 $69 S69 S723 S0.58 S0.68 0,00% SO SD 0 I 0 46% TC 4BPJ2.5 BA S911 $842 0.00% SD SD 0 m w 0 50%TC 413RJ2.5 BA 1237 $990 $69 $921 SO.74 0.00% $o SO 0 m 0 60%TC 4I3RJ2.513A 1237 $1,188 S69 $1,119 $0.90 0.00% So $o 0 0 4BR Units LL� l Manager I HR/l RA 540 SO _ SO SO $0.00 5.00% $0 10 54D " 20 T0121 Units 20 540 $550 S1.02 100.00% $10,450 $125.400 10,80D w - 0 40•%TC 0% of Tot at l:niIs Maximum (;onvenlional Joan $951,839 19 46%TC 95% orTotalUMts 0 50% TC 0% of Total Units Monthly Laundry Income per Unit 6 0 60% TC 0% of Tout Units m �' 19 TntslRestritted[;nin art Vold %46 CLU 099 6b6 60:0 6'D6T-VZ-NIU 3 AMWAL 4rtKAVI:tG LXri1+5*. ntlr+4FT 20 ThTA1. tFtt(•F.NT IIUNTINGTON BEACH • Rovien Court UNIT PER Ai ltrbileal (oenpamitt atrxlt{nrnis! hterlt Knuslxg rarporatlan 24,Ius-19 TOTAL UNIT TOTAL 1. MANACEMPNT p. rol'ol ! Managuincnt FCC CM 3nl 10.r•/. b. Other 0 0 0 Vr/. TOTAL MANAGEMENT s6AI5 3111 1021/. 2. AIl4IiN1STRATIUN a Expcnscs 920 46 1 6% h. I.cgal 850 40 14% c Audit I,S(XI 73 2.5% d-I'elChhonc/ 'umputcr 1,040 52 1.8'/. e SCcurilyr 3,000 ISO S.1% f. ORte rrf cntc/,"0% ZU1Aisccllancuus Adminislralivc I'sw 79 2 61/. TnTA1. AM4141STRATION' $AX20 441 14.9"/s } SAI ARItS A%;.) prNEPIT% a koi+lwd Ntzdar;,:r 7,720 336 13 mi. h. MsilacimnecStiff 3,120 ISG 5.3% C. laaitttrid 11000 50 1.7% d. Hiring yrtprx+xea 300 Is 11.5% c. Act son+lcl!'xrcn. Rrvnhurscmrnl 120 6 0-2% f. WotkeisComp, Payroll'l'ax,Insnrarwc 2.760 lab 474y; UTI'AL SALARIES & B F%FFITS $15,020 7S I 25.4% 4_ h1AIMUINA14CL' a. (hounds Coninel 1,940 97 3 3% h Gwcinds SupD:ics 1.200 60 2-0% e- Ttcpairs Camct I,uUO 50 {.7% d lsnitorial3upplies 120 6 U.2% c PC,[[ Cnntrut 540 :7 0 9:'6 f. Occurring Su, pJeJL'untraey 710 3s 1-3% g 1:levi-.01 0 0 0 On It Kmc'fanc0ut Winletl3nc; (inct. of .-M4 300 13 0.3% TOTAL MAIVTENANCE SSlteu 293 y 9% i 1J711 Mr.s a Tra* Removal 1.860 43 3.1% b I'le6tricity 3.600 1$0 (%.I% %;. Warcr/Sower 2.I00 IOS 3,SY. d Gab ),Gw 80 2.7% '10"rAt.IITITLITICS S7,t60 4SR IS. Ss: a tNSURANCF. %. Pruperty it t IaHlay tnauratrat 3.Wo 150 3.1% b Othcr lnsw3licc 2.161 I03 3.Mi ,turAL INSURANU SS.161 253 8 T?'. 7. TAXFS 4. Property Tarn 4.676 "a 7.9% b 11ubinsas Taxcs I.lccnscs 460 21 O N% TOTAL TAXIS ss.1.14 257 R TV. b. 07 HI `R a Rn+lrtcemert R�crves 4,000 2U0 6 9% b OrCrsting knaves 0 0 C.. R.xiden! Yrvlv.tns 0 0 0.0`'► TOTAI. UTHFK SJ.000 2Uu 6 bb, TOJAL OPFIIATINCEICPFNSES 559,{g2 U959 100.0% 4721,34p >• value fur t+x purposes OMIX. replacement Tc erveltard Cas's 3.32% — re7laeinrent tear -rOW1 S 170,49x - I:;Tm ive Gross Income +hVDcny vfans jVMVI Tee rtrca;i W 'd 60:£1 66. 4Z unC £IZZ-099-676:xej S3INU&M Q31b M SJ'd ✓,L6 £LZL 099 6176 6e:£T 666T-VZ-NrX DCvEL.(1r.4ur* ' COST ANAINSIS :4.I..n-J91 MRT Mt PERCENT COST I'Y1t IItINTIN GTON REACH - Dow@ Court IIt:DGET 20 OF I CAN Rvlatcd Companhm off.atifureia /Mtri( l(ousin= Corporation AMITNiT TATTS Toro GROSS SQ FT -LAND VONYS- Nwcha+e Pncc Qthcr I a„d Coots Still 10-1 Al- LAND CYSTS: -ARCHITLCTL'RF. & YNCINCZ UNG- Anhitccluro & C•Mginccrtng other Ym&xRiuttal.'(`OnSultiM� 5,1lVlTUTAI ARCMCCTURD fi EyCil*ikkRlNCi aR3,emn 44.251) 21.2% 7763 a 0 00% 00U V3$.%, aw $44,250 21.2% $77 63 203,000 MOM 4.8% 17.54 110.1m 5.503 2 oY 11.05 sSlO.nan $15503 74%. $27.19 -FEES & PfR%fM- S315.000 S15,750 7,6% S27.63 _ -CONSTRUCTION COSTS. Mmulitiun u 0 0 On 0.00 011-Site Itripn V%Alvnts Saptx) 25UO 1.2% 439 Nun-ttcsidcn:iAl ltructules 0 0 0.0% U 1X) hilt 111+prowmcnts 315,000 15,750 7 6% 27.63 l'arlring tu�-ih6al $1110 20 0 0 p_0% 000 Landsc.pinitK'nmttxm Aress 0 0 0.0"/. 0 txt R.sidtntial %Mcturta S99 68 11.400 1.125,0OU 27 0% 9A bx ( )thcr Cunatraction 39a.00 0 0 a 0 01Y. 0 Ix) Perccnr of Subtoul C useral Vandinuns (,.1)(% 1.490.000 x9,41)(1 4.470 2.1% 7.84 C:wawklorOverhead 3.01M 1,57?,400 47, 112 2.360 1.1% 4 16 Cuntru4m rwrit 5.00% 1,S79,400 7S,910 3,94s 19'/. 6.93 Convoctinn lkmd Niriu= 1.0()*i. t.70S.752 17,USS 853 0 4% I ." Cwl,truction Continbcnq 5.006 1,722,509 86.842 4,342 2.1% M2 C:unst:uctian Mans;.wWrt a 0 0.07'. 00) SUBTOTAL LONTmu TION Cos m SIX19,652 $93,431 43 4% S158 74 .rlNAN('Nl(t COSTS- Fstlrnate p Lan4 Loan Coln 0 0 0.or/. C.00 GAP Loan Costs 1) 0 O.IP.6 0 00 ('awUtruiniu p loan Fca I .A0%. 13A37 16SX)0 S00 0.414 1.4o Cumtruttiun L02n Intmit S.M. 61,909 C,3,ODU 3,t t0 1.3 % $51 Other Conatructiurt Lou Cosy 2SAa0 12$0 0.60/ 2 14 Itch; -Up Rc%c-c 2a,129 MOO 1.4!0 n.7v. 154 PLMWnenrtaxi pm 4.50% 42,730 43,000 2,350 I-M 3.77 ()ihcr Pcmunni Loin Co%6 0.00°.i 0 25.000 1,2511 0 V/ 2.1) Courtly Kind Iauunce Costs 1) 0 0 0-ti DAM C DIAC ISSosneee•axls 0 0 00% 000 tCAC'rccs anJ Cvs1S 16.0ss 18.000 900 0.4% 1.53 Stl[1TOTA1. HNANCL COST%' - 5319,(Xlo $10,950� S 3y. 0*19 23 -OTH F k CON VS- umish1ngs. Pmures, A Egjlpment Marketing COSTS Isga11'ecs Pmperty T■xcs (During Crn+atruction) Sall Cost Contingency Relutatlon Pltpelaa (icncrxl viij Administralivc ncvetoper Overhead Ikvclvper Yce iSiL F�ctimi Opting I ((cp12Ccmcltt Rcsrrvc C,u=nlcc C'uxts $VH TOTAL O.171? R COSTS: iixOT(rrALD VFI-OPMENTCOSTS"• sopou .1S to 12% 439 25.000 1.2% u 6% 219 $0,M0) 2,300 12% 4 39 17,600 M 0 4% 1.54 25,000 I m 0.6% 2 10 0 a 0096 000 50.00n 2,570 127: 439 100,000 S.000 2.414 977 tc 400.313 290.000 14,500 7.0'/6 I5.44 23,M) 1,150 06: 2.02 0 0 0 O4: 0.00 S630,600 33130 IS 1% $55112 S4,169,232 3:0,463 100.QY. S36S.12 Cuostructiea Lean Amount S1,543,701 ConAt dull NOW ilt MOWN111x I I Aver4ge Ou%Wilding I'.alonce 50.00"ti SO'd 60:£T 66. bL unt UZZ-099-676:xej SMNIM4M Q3RMS 4 92d %L6 CLZL 099 6176 MET 666T-bZ-Nrir aleelwl-r'n4VrlflVrtlhT r'(U.1� !�J■■�99 T1113�1`(;IkU 1TSTUTAT'%D 97ti RAlk IIIyMTINCMWMCACTI• Nwev t a..rr AwiC1NAr. ADDITIOVAL PROUCT &I.JeWou-se TCAr'rt.Ca.Wywlcndotae,Cak■i fl. IIUllurt COSTC COSTS MSLS Relalr.l Calrr■+I119r Cdlfrlay t 1Ncry Ilea l■T Cw"rnir■ l..,r rwae 5d l.a: 1lS.Or►7 q k■7,ro0 •wN.Nwwe I.p...Nerer prom V • a ••••«www. nr► s� 2■vr9•cr11[■q 33.ar1 a sa,000 ............. Ik■.�ii... 0 • p r...N««... 101w1. 1 AND CMT9 /91(aaa f! /f7ti0a0 r...www... cViALACQU1SmCY4f"Tr3 Oy »•,»»»,,, fVfw Cvalerwer■ Uc w,nk su.UUlr o s1�.o7o It?,+1w aMbkNlra I�rJ.aw • I,SI{.Ja 1114.■w C%.w&ktU•qp4w1 47.39. 0 9+}zz 47,312 VWrwwe ►.arl 7/ 971t 72-9?9 76.9M TO7Ar.IrrwC(W.MiM0MCOSTS SLAss.1m s/ St.csi.TS2 11459.7S2 dlct•anrrl tpa DL%%- IS0.000 a 1/g0♦f0 I30,000 S.Ycro+t" 40A00 • 40.000 Mffla 707A1.4+ICIIrrbMJkALCom tram to 511(.•0• Sil•," 7d1ALf1;RVEvJitm.Iwrcuurt:COSTS sw^4 S/ &wpm 391Laoe pf-. w re1114Y1r loo r1dptal.r1 Fix +C,tbO / 9;,s1r7 •w«•www• W`IW IWbM�r.r6 OAW V 0 0 H.N►NwN. Tuk a110 k&-@ ev: I2.7W • 13.Xp0 .NN•..wM• tkiwr JIma / 17.7M .•M.•NNN. TOTAL FFIRMAhomerrINAMCNGCOSTS saint S■ $"A9• r.Mn.pN. C«.r..,nr. /1rf.r/ ■■/ Fin CummwAwa Wow rutrpt 65.000 0 WAD •3 000 Vna'4/In■1'cc MAW • r6.0W IiE1711 CIOPYnk"UnIeraandApptaar:•.FOP 12-M • 12.71U 12.sD0 A"^• Pl.a� ITAU 0 f1,a•R 17A3s 7 ra/ 17.00 V l7,600 171+r0 1w -" 30.000 0 MOM NIJwn Tl.ksdNt.aWLIPS IMW a I:7a3 12." TOIALCU"Ikl1f 110MIKTt•fsPit r (u%15 SIA&A / p Sluts/ SIN./ra tire AL RLAL TST 4Tr ArrORNCY COSTS 953./00 SO 259.&W SI7•s00 TOTAL ArrUf'UL cam scan• so ss.11" y�,o90 ieriALRINTMIptvv.(ORTS 120.400 SO /27.OY •N•NNN.N TOTAL CON•rrkurrl0llCOTtT1h(;Tr111(OfrS s111.w2 1p sutiat slllws= f"rcprr TCAC AnAtwiM.- l wrl ral I&MID a I LM r•^^••»••' r■ri'VWRn1/tAWir lQW • Iwn A000 1 a.l r61.11C rear ] ISAW • l l lkf 1 Mo00 aauarr.ay 23.IM 0 25.000 ww...N.w Rcl,1r. . n"4.ep 0 • V •.ww «... Tw-11M1L7 37A00 • Sa,Ona SC.M A. ".(1 S'Sn1p ! ZO.Ol70 I1{leal (101rt • 0 0 0 Te3TALunwit.COSTS w).oar S/ faua./ S700.4/a Dc..kge-Q"fhwYp%.rA 3a0.Aw 0 SW.= )99pa1 Cml■Iwvraw ;pt 11(p4 Pen 0 0 0 0 "taA,klli..atrwm. 0 0 9 0 lip.' waf I xfoae,wj&r paww w blu • :D.wo �..w•.w.••• 10IAL m VP LOM C05Ts $411.060 S7 SAIL N0 s1a409a UYTALRLSIOENt1ALCOSTs 1.1.160js7 s0 H,IaS,M! TCIIAI.ClIMM IAL3r•fr.COSTS It V in •••-•`^••"' TOTAI Fftfij S fCOSTS 53,■SL732 uC0A1CT i110M 1"TAL CUVI•Lo "IMIt Taal 1■r11gi3ta An■w.Y fI,27/,Rt1 TOTAL toJC.IRLI WIS f1,T19.179 Y.9libl•Dion rrf Fmi-ftm PL.V" HIA Cod Am A.bwuamt 1011% IWAI.AD&'Sltn T.IICISLV BASTS 51,179dit19 &",&aby the AwkAK MKLOa 100% 101'Al. QIIALIliV I I1A.t1S (REVU61r I cLI 51.rn}7r 90 'd 60: �l 66, CZ unf VZL-099-M . Xe i S3INJ&M SILMN X"d %L6 CLZL 099 6b6 tat :ET 6661—t Z—"Ir TAX CREDIT CALCULATION 24-Jun-99 HUNTINGTON BEACH - Bowen Court Related Companies of California ! 5.1crit Housiop, Corporation Total Project trust $4,169,252 Total Permanc-nt Sources $1,835,000 Fundint, Shortfall ft S2,334.252 Federal Tax Credit Factor/Yield Rate 74.00% Total QuaIii'ied Basis $1,779.899 9%Annual Federal Credit 9.27% $147,198 Total Irederal Tax Crceitb (10 Years) $1,471,976 Minimum Federal Credit Investor Cash 99.99% S1,089,154 State Tax Credit Factor/Yield [Late 74.UU% Total Qualified Basis $1.779,899 Tutal 4 Year State Credit; (calculated) 30.00% S533,970 Allaimum State Credit Investor Cash 99.99% S395,098 Maximum Total T2X Credit Investor Gish (Federal t State) S1,484,252 Z0'a OT:£T 66, VZ Unr TZU-099-61*:x1eJ S-31N& M 931bMN e0'd %G6 £L24 W9 6t7S MET 6661—VZ—N'1!' SOURCES & USES OF I' UNDS 24-Jun-99 8 Ht1NTI.NCTON BEACH - Bowen Court 20 Unit Senior Housing Project Related Companies of Calirornia 1 merit Housing Corporation TOIWL PROJEC.'i COSIS $4,169,252 Q0NS'rn,C'L70ti PERIOD SOLrRr-F.S & USES: Costs DC57m- t During Cgactrvctinn- • Developer Overhead aad Fee (S 180,000) MUM Paid 11hrougbout • Pcrrnane :tFinancing lies ($43,000) Construction Period 'i'otal Dc1i red Costs (S223,000) Construction Fln2acin^4Requirement $3,94G,252 AVAILABLE COtiS'I'lt17.=QN SOURCEg- Tax Credit Investo. Pay -In 3742.126 lkrcrred Contractor/Dev. Fce S0 Construcfi= Loan g:cured by. $1,543.701 Sccond Tax Cicdit payment (40% of Total Tax Credit Equity) Ferman cnt Loan Comminncat Land Grant From Redevelorment Agency S8R5,000 TOTAL CONSTRUCTION'SOURCES S.3,170,826 Amount Over/(Under) ($775 425) PEIZN1ANCNT-,,0URt_'ES & USES: Permanent rivaaclag Requirement $4,169,252 AVAT BIN PFRNNKNt'$Qintms: Tax Credit Investor $1,484.252 Referred Cuntractor/Mv. Ne SO Permarent Loon S950.000 Iand Grant Fn n RedevchTrnent Agency S385,000 50.00% of total invesmment $593,701 40% Actual Percentage of S950,000 Tax Credit Equity TMAL TEPWANNENT SOURCES S3,319,252 Amount Over/(Under) (S850,000) 80'd CT:£T 66, VZ Unr Uu--099-6V6:x2d S3Ihk A03 Q31brM Ij j RE'1IT up CAS)1t7.4NY ! 11UNTINGTOX BEACH - I —ea CO-" 19tiakil CamparJet of Catifornle t Jlerlt Rortlal Carpera6att 0% 9 M mbtr of tletih ttan1e4 dross Item Otker taeotut Q Leu Yauttty Less Opens 6r¢eeets .-t • NelOperatinl��rams Lest Drbt Stniee Cashn3w After DdK stnim 44 fy tr+rn�laeivel`a•hllowARn1 rn r'1 ;2 ti Ol X Lt_ N W 1--a A U.1 A1ea16 446 VOIA Ka. hloetb Ne, Neath No. htelrb No. A20nth N'e, 3tont% Vo. N1oa11INa. Haetb No. MOANS. Moatb No. 1 1 1 i S 6 7 1 9 10 11 rttrate Atsaorpuae I1 S 10 Is 20 20 70 S55o SOW 11.250 911." stl.O 0 511,Om 16 S60 S90 silo 1120 Silo sm 0 so So 61161 M50) nsso) 32.9s9 (12,1166) 611699) (SOM ($1.932) (5032) $1.094 64.611 ti631 SS631 15.671 MI;56) (16927) (sllaSO (111,256) (St1,86) (16,121) 66.92?) 02.1621 (1666M (S1.61to, (s1,294) (31.219) 20 20 20 S' I'= t11 O00 11I'M SI20 1120 $120 0559) OISM (3550) (51932) (14,032) (51.9+2) 15.611 S5.01 15,6333 (56.927) (16.927) (56v927) (i1.299) (St.219) (s1.2R9) 20 70 20 $11.00 S11.Ch2 5lI.C-9 $120 We t170 (3550) (Sssa) to (S1 93T3 (51.9;2) 04,912) $5.631 15633 S6,ISE (M.927 (16.977) ($6.9271 (11,219) (SI.239) (1739) 1996 Redevelopment Agency Action ATTACHMENT #5 fj CITY OF HUNTINGTON BEACH 1 MEETING DATE: 05/20/96 DEPARTMENT ID NUMBER: ED 96-35 Council/Agency Meeting Held: Deferred/Continued to: I 8'Approved ❑ Conditionally Approved 13 Denied ity Clerk`s Uynature Council Meeting Date: 05/20/96 . 1 Department ID Number: ED 96-35 CITY OF HUNTINGTON BEACH REQUEST FOR REDEVELOPMENT AGENCY ACTION SUBMITTED TO: HONORABLE CHAIRMAN AND REDEVELOPMENT AGENCY MEMBERS - SUBMITTED BY: MICHAEL T. USERUAGA, Executive Director 07" PREPARED BY: David C. Biggs, Economic Development Director SUBJECT: RENEWAL OF FINANCIAL SUPPORT FOR ORANGE HOUSING DEVELOPMENT CORPORATION: BOWER COURT SENIOR APARTMENTS �,r„�Q, a?4 Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: On December 4, 1995, the Redevelopment Agency approved financial support for Orange Housing Development Corporation (OHDC) and its application to the California Tax Credit Allocation Committee (TCAC) for federal tax credits. An application was submitted for the first round of the competition and was not awarded tax credits despite its high point score. A second round of applications must be submitted by May 30, 1996, and OHDC has restructured its proposal and application to include more affordable rents, however, a larger Agency contribution is needed. A new resolution of support is needed as well. Funding Source: Redevelopment Housing Set Aside Funds. Recommended Action: Motion to: 1. Adopt the attached Agency Resolution authorizing funding support by the Huntington Beach Redevelopment Agency with a grant of Agency -owned land acquired at a cost of $885,000, and a loan of $215,000 in redevelopment housing set aside funds for the construction of senior apartments by Orange Housing Development Corporation. Alternative Action(s): Do not approve support for the transaction, thereby canceling a tax credit application at this time. RAA96-35.00C -2- 05/13/96 4:42 PM RESOLUTION NO"1 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH AUTHORIZING FUNDMIG SUPPORT FOR ORANGE HOUSING DEVELOPMENT CORPORATION TO CONSTRUCT AN AFFORDABLE HOUSING PROJECT WHEREAS, the Redevelopment Agency of the City of Huntington Beach (the Agency) has State mandates to construct affordable housing; and Affordable housing is needed to provide housing for our citizens; and Orange Housing Development Corporation (OHDC) has identified a project site known as the Bowen Court Project; and OHDC will need to acquire funding assistance from Federal and State tax credit programs; and The Agency's funding assistance is required and has been requested by OHDC to construct the Project; and Based on the funding assistance, the Agency will require a Disposition and Development .Agreement (DDA) for regulation of the Project; and A funding commitment from the Agency is necessary to allow 01 DC to apply for the Federal and State tax credit program; and The Agency's funding assistance is available, conditioned upon: 1) OHDC receiving Federal and State tax credits, and 2) OHDC reaching agreement with the Agency on the DDA. NOW, T BEREFORE,-The Redevelopment Agency of the City of Huntington Beach does hereby resolve as follows: �_Y 1. That a'grant of approximately $885,000 in Agency -owned land and a loan of $215,000 in housing set aside funds as a residual receipts loan (terms to be negotiated) is committed to this Project, conditioned as indicated above. 2. . That the Executive Director is hereby authorized and directed to assist OHDC in its tax credit application and to execute any and all documents on behalf of the Agency as necessary or appropriate thereto. PASSED AND ADOPTED by the Redevelopment Agency of the City of Huntington Beach at a regular meeting thereof held this 20th day of May,1996. ATTEST: . Agency Clerk gWrcwWAomr3 iris 96-316 Chairman APPROVED AS TO FORM: "AVenAttorney �.re_ S j13/n. MTUTED AND APPROVED: Director ofYconomic Development 2 ,� c J.l4 CITY OF HUNTINGTON BEACH INTER -DEPARTMENT COMMUNICATION "uNn'4GTCV4I(A`" Connie Brockway, City Clerk Office of the City Clerk To: ` -- S D D Date: `i1 Meeting Date: 7-4- (v 5y Agenda Item: F ' I Agenda Items: The City Clerk's Office/City Administrator's Office must return your agenda item due to the following requirements that have not been met. When your Agenda Item is ready to resubmit, please return to: Pat Dapkus, Management Assistant, City Administrator's Office. 1. Signature(s) Needed A On RCA B On Agreement C Other 2. Attachments A Missing B Not identified C Other 3. Exhibits A Missing B Not identified C Other 4. Insurance Certificate (Proof Of Insurance) A Not attached B Not approved by City Attorney's Office C Signed form notifying City Cleric that department will be responsible for obtaining insurance ceniticate on this item. (See form attachedi 5. Wording On Request For Council Action {RCA} Unclear A Recommended Action on RgAlibj complete B Clarification needed on R 4a C Other uwzdo,w• , 6. City Attorney Approval Required c(',� 2. 7. Agreement Needs To Be Changed 3 A Page No. 8. Other 7TtW 7 GG oe COVER PAGE REQUEST FOR LATE SUBMITTAL (To accompany RCA) Department: Economic Development I I Subject: Aperove Support for Bowen Court Council Meetina Date: 716199 Date of This Reauest: 06/24/99 REASON (Why Is this RCA being submitted late?): Awaiting additional Information from developer. EXPLANATION (Vhy is this RCA necessary to this agenda?): In order to meet a July 15 1999 tax credit application deadline this item must be placed on the July 6 1999 Redevelopment Agency agenda. CONSEQUENCES How shall delay of this RCA adversely Impact the CI ? : Missing an opportunity to apply for tax credits will result in Increased Agency subsidy to the prolect. lgnature: r Department Head © Denied N Silver Administrator LATESUBM.DOC 07n 4194 RCA ROUTING SHEET INITIATING DEPARTMENT: Economic Development SUBJECT: Approve Bowen Court Financial Committment COUNCIL MEETING DATE: July 6, 1999 RCA ATTACHMENTS STAT S Ordinance w/exhibits & legislative draft if applicable) I No a ed (Explain) Resolution (w/exhibits & legislative draft if applicable) le Attached Tract Map, Location Map and/or other Exhibits Attached Contract/Agreement (wlexhibits if applicable) Si ned in full bK the 2 Attome Attached Subleases, Third Party Agreements, etc. (Approved as to form by a Attome Not Applicable Certificates of Insurance (Approved bZ the a Attome Not Apelicable Financial Impact Statement Unbud et, over $5,000 Not Applicable Bonds If applicable) Not Applicable Staff Report If applicable) Attached Commission, Board or Committee Report If a licable Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FORWARDED Administrative Staff Assistant Ci Administrator Initial City Administrator Initial City Clerk EXPLANATION FOR RETURN OF ITEM: Bowen Court Senior Housing July 6, 1999 Item F-3 Bowen Court • Bowen Court Entitled In 1997 • Tax Credit Applications Filed 1995-96 • HUD Section 202 Applications: July `97 & `98 • Project Scored well -- Did Not Receive Award C- c rr 11100 r: C n Bowen Court • New Round of 9% Tax Credits Available through TCAC • Changes In Criteria Increase Chances of Award • Merit Housing (sister nonprofit to Orange Housing) Interested In Trying Again Bowen Court • Tax Credit Guidelines Require Option Agreement — Terminates if Funds Not Awarded * Agency Preliminary Funding Commitments Required Via Resolutions • No Commitment Unless Project Proceeds 2 Bowen Court • Application Deadline: — July 15, 1999 • Awards Estimated In Late August 1999 • Other Funding Mechanisms and Alternatives Being Studied As Back-up 3