HomeMy WebLinkAbout120505 Rehab Loan Agmts Mercy HouseREQUEST FOR
COUNCIL /AGENCY
ACTION
MEETING DATE:
DECEMBER 5, 2005
TITLE:
REHABILITATION LOAN AGREEMENTS
WITH MERCY HOUSE TRANSITIONAL
LIVING CENTERS
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CITY MANAGER EXECUTIVE DIRECTOR
RECOMMENDED ACTION
CITY COUNCIL ACTION
CLERK OF COUNCIL USE ONLY:
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APPROVED
As Recommended �O `
❑ As Amended
❑ Ordinance on 1 st Reading
❑ Ordinance on 2nd Reading
❑ Implementing Resolution
❑ Set Public Hearing For
CONTINUED TO
FILE NUMBER
1. Direct the City Attorney to prepare and authorize the Executive
Director of the Community Development Agency to execute a $71,328
loan agreement with Mercy House Transitional Living Centers for
rehabilitation of Joseph House.
2. Direct the City Attorney to prepare and authorize the Executive
Director of the Community Development Agency to execute a $31,360
loan agreement with Mercy House Transitional Living Centers for
rehabilitation of Regina House.
COMMUNITY REDEVELOPMENT AGENCY ACTION
1. Direct the Agency
Executive Director
House Transitional
House.
2. Direct the Agency
Executive Director
House Transitional
House.
General Counsel to prepare and authorize the
to execute a $71,327 loan agreement with Mercy
Living Centers for rehabilitation of Joseph
General Counsel to prepare and authorize the
to execute a $31,361 loan agreement with Mercy
Living Centers for rehabilitation of Regina
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Rehabilitation Loan Agreements
with Mercy House Transitional
Living Centers
December 5, 2005
Page 2
COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION RECOMMENDATION:
1. Recommended that the City Council:
a) Direct the City Attorney to prepare and authorize the
Executive Director of the Community Development Agency to
execute a $71,328 loan agreement with Mercy House Transitional
Living Centers for rehabilitation of Joseph House.
b) Direct the City Attorney to prepare and authorize the
Executive Director of the Community Development Agency to
execute a $31,360 loan agreement with Mercy House Transitional
Living Centers for rehabilitation of Regina House.
2. Recommended that the Community Redevelopment Agency:
a) Direct the Agency`General Counsel
Executive Director to execute a
Mercy House Transitional Living
Joseph House.
b) Direct the Agency General Counsel
Executive Director to execute a
Mercy House Transitional Living
Regina House.
to prepare and authorize the
$71,327 loan agreement with
Centers for rehabilitation of
to prepare and authorize the
$31,361 loan agreement with
Centers for rehabilitation of
By a vote of 4:0 at its Regular Meeting of November 15, 2005.
DISCUSSION
Mercy House Transitional Living Centers (Mercy House) is a nonprofit
corporation that provides housing and supportive services for the
homeless populations. Joseph House consists of four attached
townhouses, which provides services to single men. Regina House
consists of two single - family homes, which provides services to women
and their children. Site maps are not provided to protect the
confidentiality of the residents.
4 °Z
Rehabilitation Loan Agreements
with Mercy House Transitional
Living Centers
December 5, 2005
Page 3
Both projects are in need of rehabilitation, and Mercy House has
requested financial assistance from the City and Agency. Mercy House
has obtained three competitive bids from licensed general contractors.
The bid submitted by Construction Restoration, Inc. (CRI) is considered
the most responsive. The table below is the construction budget.
The proposed City and Agency loans will provide for the total cost of
rehabilitation. The loans will be originated at a zero percent interest
rate with annual residual receipts payments. These loans will be due
and payable or subject to renegotiation in fifty -five years. Fifty -five
year affordable housing covenants will be recorded on both properties,
which will be restricted to household incomes at or below eighty percent
of the area median as determined by the U.S. Department of Housing and
Urban Development. Rents will be restricted to those affordable to such
households, less a reasonable allowance for tenant paid utilities.
These loans will assist the City and Agency in meeting its very -low and
low- income affordable housing goals as identified in the Consolidated
Plan and Redevelopment Implementation Plan.
ENVIRONMENTAL IMPACT
In accordance with the California Environmental Quality
National Environmental Policy Act, the proposed projects ar
further review. Categorical Exemption Nos. ER 2005 -195 an
will be filed for these projects.
HJ
Act and the
e exempt from
d ER 2005 -199
Regina House
Joseph House
Construction Costs
$57,835
$131,377
Contingency
$4,886
$11,278
TOTAL LOAN COSTS
$62,721
$142,655!
The proposed City and Agency loans will provide for the total cost of
rehabilitation. The loans will be originated at a zero percent interest
rate with annual residual receipts payments. These loans will be due
and payable or subject to renegotiation in fifty -five years. Fifty -five
year affordable housing covenants will be recorded on both properties,
which will be restricted to household incomes at or below eighty percent
of the area median as determined by the U.S. Department of Housing and
Urban Development. Rents will be restricted to those affordable to such
households, less a reasonable allowance for tenant paid utilities.
These loans will assist the City and Agency in meeting its very -low and
low- income affordable housing goals as identified in the Consolidated
Plan and Redevelopment Implementation Plan.
ENVIRONMENTAL IMPACT
In accordance with the California Environmental Quality
National Environmental Policy Act, the proposed projects ar
further review. Categorical Exemption Nos. ER 2005 -195 an
will be filed for these projects.
HJ
Act and the
e exempt from
d ER 2005 -199
Rehabilitation Loan Agreements
with Mercy House Transitional
Living Centers
December 5, 2005
Page 4
FISCAL IMPACT
Funds for these loan agreements are available in the HOME Program
(account no. 130- 148 -6951) and the Tax Increment Housing Set -Aside
account (account no. 507 -508- 6951).
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Patricia C. Whitaker
Executive Director
Community Development Agency
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APPROVED AS TO FUNDS AND ACCOUNTS:
Francisco Gutierrez r
Executive Director
Finance & Management Services Agency
H: \ACTIONS \2005 CRA \JT CC -CRA RehabLoanAgreesMercyHouse 12- 05- 05.doc
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