SR - - SECOND EXTENSION HOME INVESTMENT PARTNERSHIPS FUNDING COMMITMENTAGENDA ITEM
June 10, 2014
C�
TO: Honorable Mayor and
Members of the City Council
THRU: John W. Sibley
Executive Director
FROM: Rick Otto
Interim Co muni evelopment Director
ReviewedNerified By:
City Manager
Finance Direc r
To Be Presente
y Ellen Laster
X Cons Calendar
_ City Mgr Rpts
Council Reports
_ Legal Affairs
Boards /Crates
_ Public Hrgs
Admin Reports
Plan/Environ
1. SUBJECT
Second Extension of HOME Investment Partnerships (HOME) Funding Commitment for Santa
Ines Senior Villas.
2. SUMMARY
On June 25, 2013, Council appropriated HOME funds in the amount of $928,387 and authorized
the execution of a commitment letter for the Santa Ines project. On December 10, 2013, Council
approved the extension of the funding commitment deadline from December 31, 2013 to
July 12, 2014, which enabled the developer to apply for tax credits in the March 2014 round.
The developer has advised the City that the project will not be allocated tax credits from the
March 2014 round, and has submitted a request to extend the HOME funding commitment for
one year. Extension of the funding commitment would enable the developer to submit
applications for up to two future tax credit rounds.
3. RECOMMENDATION
Authorize the City Manager to execute the attached letter extending the commitment of HOME
funds in the amount of $928,387 for the Santa Ines Senior Villas to July 12, 2015 (Attachment 4).
4. FISCAL IMPACT
Sufficient funds are budgeted and available to cover the funding commitment in the following
account:
317.9660.56571.20091 (HOME Loan - Santa Ines Project) $928,387
5. STRATEGIC PLAN GOAL(S)
Goal 3: Enhance and promote quality of life in the community.
Strategy c.: Support and enhance attractive, diverse living environments.
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G. GENERAL PLAN IMPLEMENTATION
Land Use Goal 1.0: Meet the present and future needs of all residential and business sectors with
a diverse and balanced mix of land uses.
Policy 1.3: Provide a range of housing densities and types to meet the diverse needs and
lifestyles of residents.
7. DISCUSSION and BACKGROUND
Orange Pacific Associates, L.P., a partnership of Urban Pacific Multi- Housing, LLC, TPC
Holdings V, LLC, and PATH Ventures plans to develop a 42 -unit affordable senior rental
housing project at 184 North Prospect Street, which will provide 40 one - bedroom units and two
two - bedroom units including one manager's unit.
The estimated sources of funding follow:
Source
Agency
Amount
Conventional Loan
Private Lender
$ 1,500,000
HOME Funds - 11 Very Low Income Units
City of Orange
928,387
Mental Health Services Act (MHSA)
Funds - 10 Units
County of Orange/State of California
1,216,650
Nine Percent Tax Credit Equity
California Tax Credit Allocation
Committee (TCAC)
8,701,964
Total
$ 12,347,001
On June 25, 2013, Council appropriated HOME funds for the $928,387 loan and authorized
execution of a commitment letter (Attachment 1), which enabled the developer to apply for tax
credits in the July 2013 round. The project did not receive a tax credit allocation in that round,
and the original funding commitment was scheduled to expire on December 31, 2013.
On December 10, 2013 Council approved an extension of the HOME funding commitment to
July 12, 2014 (Attachment 2), which enabled the developer to apply for tax credits in the March
2014 round. The July 12 commitment expiration date corresponds with the expiration date of the
entitlements for the project.
The developer recently advised the City that the project will not be allocated tax credits from the
March 2014 round, and submitted a request to extend the HOME funding commitment for one
year (Attachment 3). The extension would enable the developer to submit applications for up to
two future tax credit rounds. The deadline for the next tax credit round is July 1, 2014.
Council action is required to authorize the City Manager to execute the attached letter
(Attachment 4), which would extend the commitment of HOME funds in the amount of $928,387
for the project to July 12, 2015. Extension of the HOME funding commitment will be contingent
on the extension of the entitlements. The developer submitted a separate request to extend the
entitlements for the project, which is addressed in a separate staff report. The Affordable
Housing Loan Agreement, which will further describe the terms and conditions of the City's
HOME loan, will be presented for Council consideration at a future meeting.
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8. ATTACHMENTS 7771
• Attachment 1 - July 2, 2013 (Original) Commitment Letter regarding Commitment of
HOME Funds in the Amount of $928,387 for Santa Ines Senior Villas
• Attachment 2 - December 11, 2013 (First) Extension of Commitment of HOME Funds in
the Amount of $928,387 for Santa Ines Senior Villas to July 12, 2014
• Attachment 3 - Letter from Urban Pacific Multi - Housing requesting Extension of
Commitment of HOME Funds for Santa Ines Senior Villas for a period of one year
• Attachment 4 - Letter regarding Second Extension of Commitment of HOME Funds in
the Amount of $928,387 for Santa Ines Senior Villas to July 12, 2015.
NACDD\I-IOUSING\Projects \Santa Ines \Staff Reports \6 -10 -14 Commitment Extension
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