HomeMy WebLinkAbout122004 Loan Agmt Wakeham GrantREOUESTFOR
COUNCIUAGENCY
ACTION
MEETING DATE:
DECEMBER 20, 2004
^, Li:
LOAN AGREEMENTS WITH WAKEHAM-
GRANT, LP
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CITY MANAGER EXECUTIVE DIRECTOR
RECOMMENDED ACTION
CLERK OF COUNCIL USE ONLY:
APPROVED
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As Recommended io'O,
❑
As Amended r L)Il do
❑
Ordinance on 1 st Reading
❑
Ordinance on 2nd Reading
❑
Implementing Resolution
❑
Set Public Hearing For
CONTINUED TO
FILE NUMBER
CITY COUNCIL ACTION
1. Approve an agreement with Wakeham -Grant Apartments, a California
Limited Partnership, to provide loans in an amount not to exceed
$1,200,000.
2. Direct the City Attorney to prepare and authorize the Executive
Director of the Community Development Agency to execute agreements
and all other required documents as necessary.
COMMUNITY REDEVELOPMENT AGENCY ACTION
1. Approve an agreement with Wakeham -Grant Apartments, a California
Limited Partnership, to provide loans in an amount not to exceed
$1,200,000.
2. Direct the Agency General Counsel to prepare and authorize the
Executive Director of the Community Development Agency to execute
agreements and all other required documents as necessary.
yy 6
Loan Agreements with
Wakeham Grant, LP
December 20, 2004
Page 2
COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION
1. Recommended that the City Council:
a) Approve an agreement with Wakeham -Grant Apartments, a
California Limited Partnership, to provide loans in an amount
not to exceed $1,200,000.
b) Direct the City Attorney to prepare and authorize the Executive
Director of the Community Development Agency to execute
agreements and all other required documents as necessary.
2. Recommended that the Community Redevelopment Agency:
a) Approve an agreement with Wakeham -Grant Apartments, a
California Limited Partnership, to provide loans in an amount
not to exceed $1,200,000.
b) Direct the Agency General Counsel to prepare and authorize the
Executive Director of the Community Development Agency to
execute agreements and all other required documents as
necessary.
By a vote of 5:0 (Rodriguez absent) at its Regular Meeting of December 7,
2004.
DISCUSSION
Wakeham -Grant Apartments, a California Limited Partnership, owns and
operates eight multi - family residential buildings in the Cornerstone
Village revitalization area (Exhibit 1). Jamboree Housing, the sole
member of the limited partnership, is a non - profit housing provider that
builds, preserves and maintains affordable rental housing in Orange
County.
On January 5, 2004, the Housing Authority adopted a resolution
authorizing the issuance of $6 million of multi - family housing revenue
refunding bonds for Wakeham -Grant to replace a previous issuance that
they had been unable to convert to permanent financing. Concurrently,
the City Council approved a loan agreement for an amount not to exceed
$1.9 million, and the Community Redevelopment Agency approved a loan
Loan Agreements with
Wakeham Grant, LP
December 20, 2004
Page 3
agreement for an amount not to exceed $1 million. The City and Agency
funds were to be used to lower the affordability levels and provide funds
for additional rehabilitation. Under the new restrictions, all units
will be affordable to very low- income households.
Since then, lender commitment to purchase the bonds has been reduced from
$6 million to $5,225,000 million. Additionally, mold damage and other
items stemming from improper rehabilitation work previously completed
have caused construction costs to increase an additional $2.4 million.
Wakeham -Grant is considering all options available to them in order to
recover all or a portion of the increased construction costs. Should
they be successful in doing so, the funds received will be paid to the
City.
FISCAL IMPACT
Funds for the loans are available in the HOME Program account in the
amount of $1,200,000 (account no. 130 - 148 -6951) and Tax Increment Housing
Set -Aside Fund accounts in the amount of $1,200,000 (account nos. 502-
936 -6951, 503 - 936 -6951, 504 - 936 -6951 and 505 - 936- 6951).
Patricia C. Whitaker
Executive Director
Community Development Agency
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AS TO FUNDS AND ACCOUNTS:
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Executi Director
Finance & Management
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WAKEHAI AVE. 825
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922 926 930 10
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10 Z 10
Z 1001 I 1002 Z 1001
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V% 1005 1006 1005
STATION & LEARNING s 10
1 1009
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1013 1014 1013 I 127 OWNED BY Wakeham -Grant
McFADDEN AVENUE
EXHIBIT 1
N
8
10
'
1017
1018
1017
8
10
1021
1022
1021
I
10
10
1025
1026
1025
10
10
1029
1030
1029
I
10
10
1101
1102
1101
I
10
10
1105
1106
1105
10
10
1109
1110
1109
I
10
10
1113
1114
1113
I
10
10
1117
1118
1117
10
10
1121
1102
1101
I
1125
1108
1105
I
McFADDEN AVENUE
EXHIBIT 1
N