...Title
Actions Related to the Loan Commitment and Land Purchase for 797 Almaden, a New Affordable Housing Development.
...Recommendations
(a) Adopt a resolution:
(1) Approving a total Construction-Permanent Loan commitment of up to $21,350,000 and a land acquisition loan or acquisition funding commitment of up to $3,590,000 in funds from Measure E Real Property Transfer Tax allocations (Measure E) for Resources for Community Development (RCD) and Almaden Affordable Housing, L.P. or another affiliate formed by RCD (Developer) for the 797 Almaden, a new affordable housing development to be located at 771, 777, 787, 797 South Almaden Avenue (Site), which is being developed to offer 98 rent-and income-restricted apartments for extremely low income, very low income, and low income households, and one unrestricted manager’s apartment (Development);
(2) Authorizing a loan-to-value ratio of greater than 100% for the Development;
(3) Authorizing the Director of Housing to acquire the site from the Developer for a price not to exceed $3,590,000 at the time of transfer, to accept the grant deed, and to enter into a long-term ground lease of the site to the Developer for the Development;
(4) Authorizing the Director of Housing or the Director’s designee to negotiate and execute documents and document amendments related to the acquisition and development of the Site, the ground leasing of the Site and any riders to the ground leases required by government entities;
(5) Authorizing the loan terms to allow an increase in the rents and income restrictions up to 60% of Area Median Income (AMI) (low-income) for new tenants in Project-Based Voucher (PBV) subsidized apartments in the event of expiration or termination of Project-Based Vouchers and for all tenants in the event of foreclosure, to the extent the City has determined such increase is needed for the feasibility of the above Development and allowed by other funds;
(6) Authorizing the Director of Housing or the Direct...
Click here for full text