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HomeMy Public PortalAboutWhitepaper - Residential Development Loan ProgramCalifornia Housing and Finance Authority Residential Development Loan Program Fund Whitepaper CalHFA RDLP Loan 1 On November 7, 2006, California voters approved Proposition 1C, The Housing and Emergency Shelter Trust Fund Act of 2006, for the sale of $2.85 billion in general obligation bonds to support a variety of affordable housing and housing-related infrastructure programs. The California Housing and Finance Authority (“CalHFA”) created the Residential Development Loan Program (“RDLP”) to utilize up to $10 million in Prop 1C bond proceeds through an innovative loan program available to local government entities. RDLP Program Materials The following materials provide information on CalHFA’s RDLP:  September 11, 2006, CalHFA Offers $10 Million to Local Government for Affordable Residential Development in California Communities, Businesswire.com  November 2006, Legislative Analyst’s Analysis, Proposition 1C Housing and Emergency Shelter Trust Fund Act of 2006  Fact Sheet, Proposition 1C: The Housing and Emergency Shelter Trust Fund Act of 2006, SB 1689 (Perata)  2009/2010 California Housing Finance Agency Annual Report City of Livermore Participation in the CalHFA RDLP July 10, 2006 City Staff Report, Authorization for the City of Livermore to submit an application to the California Housing Finance Agency (CalHFA) Residential Loan Program Resolution No. 2006-061 January 1, 2007 City Staff Report, State Housing Finance Agency Residential Development Loan Program (RDLP) Funds for the Livermore Village Project Resolution No. 2006-061 CalHFA RDLP Loan 2 September 24, 2007 City Staff Report, State Housing Finance Agency Residential Development Loan Program (RDLP) Funds for the Livermore Village Project. Resolution No. 2007-194 January 12, 2009 City and Redevelopment Agency Staff Report, Cooperation and Repayment Agreement for Restructuring of the Loan Agreement between City and Redevelopment Agency to obligate up to $5,000,000 in Residential Development Loan Program (RDLP) funds to the Livermore Village Project. Resolution No. 2009-009 Resolution No. RA-2009-001 Notice of Affordability Restriction on Transfer of Property and Declaration of Covenants and Restrictions, dated January 9, 2012 (recorded Alameda County Recorder’s Office No. 2009028632, January 29, 2009) January 09, 2012 City Staff Report, Appropriate $500,000 in Housing Trust Funds (F611) for Partial Repayment of the Residential Development Loan Program (RDLP) Loan and Authorization to Extend the Loan Repayment Term. Resolution 2012-002 CalHFA RDLP Loan 3 Notice of Affordability Restriction on Transfer of Property and Declaration of Covenants and Restrictions Alameda County Recorder’s Office No. 2009028632, January 29, 2009 Excerpts from the covenant: RECITALS In 2007, the City was awarded State of California Residential Development Loan Program (RDLP) funds for site acquisition and pre-development expenses for the Livermore Village project. The City now desires to loan the RDLP funds to the Owner and the Owner desires to accept these funds to replace a portion of the Housing Trust funds that were previously loaned to the Agency for this purpose and which the Owner is required to repay to the City pursuant to that certain Cooperation and Repayment Agreement executed by the City and the Owner on August 4, 2008. Concurrent with the execution of this Notice & Declaration, the City and Owner have entered into an Accelerated Cooperation and Repayment, whereby the City agrees to loan the Owner, and the Owner agrees to accept from the City, up to $5,000,000 in RDLP funds, which obligation is secured by this Notice & Declaration. As a condition of accepting the RDLP funds, the City and Owner now desire to place restrictions upon the development and use of the Property to ensure that the development of the Project, or any other project developed on the Property, shall provide at least 28 units of ownership housing affordable to low-income households and 56 units of ownership housing affordable to moderate-income households. It is anticipated that the Owner will eventually enter into a Disposition and Development Agreement with a final developer which will construct a mixed-use development consisting of retail space, a variety of housing types, including a minimum of 28 units of ownership housing affordable to low-income households and 56 units of ownership housing affordable to moderate-income households (the “Project”). It is further anticipated that any such Disposition and Development Agreement shall secure and provide for the satisfaction of the obligations set forth in this Notice & Declaration, as well as the satisfaction of the outstanding principal and interest owed the City under the Accelerated Cooperation and Repayment Agreement executed concurrently herewith. … 2. USE OF PROPERTY 2.1 Development of the Property shall provide at least 28 units of ownership housing affordable to Low-Income Homebuyers and 56 units of ownership housing affordable to Moderate-Income Homebuyers, which shall be occupied by Low- CalHFA RDLP Loan 4 Income and Moderate-Income Homebuyers, respectively, for a period of at least 10 years. … 6. CHANGE OF USE 6.1 Change of Use. The Property shall be used as specified under Section 2 for the term of this Notice & Declaration. Within the term of this agreement, Owner may propose a change of use only in the event that the Property is no longer needed for the purpose specified in this Notice & Declaration and the Property will be used to benefit individuals or families whose incomes do not exceed 120 percent of median income for the area. Owner must obtain written approval from the City prior to changing use. … 7. DEFAULTS AND REMEDIES 7.1 Defaults; Remedies. … the City shall be entitled and in addition to all other remedies provided by law or in equity to compel specific performance by the Owner of its obligations under this Notice & Declaration, it being recognized that the beneficiaries of the Owner's obligations hereunder cannot be adequately compensated by monetary damages in the event of the Owner's default. … 8. SUCCESSORS BOUND 8.1 Successors Bound. This Notice & Declaration and the covenants and conditions contained herein shall run with the land and shall bind, and the benefits shall inure to, respectively, the Owner and its successors and assigns and all subsequent Owners of the Project or any interest herein, and the City and its successors and assigns. … 17 AMENDMENTS 17.1 Amendments. This Notice & Declaration may not be amended, changed, modified, altered or terminated except as permitted in this agreement. This Notice & Declaration shall be amended only by a written instrument executed by the parties hereto or their successors in title, and duly recorded in the real property records of the County of Alameda, California. … 18 TERM OF AGREEMENT 18.1 Term of Agreement. The terms of this agreement shall be for 10 years from the date of initial occupancy. At the end of this term, Owner may either request extending the terms of this agreement or request disposition instructions from the City. CalHFA RDLP Loan 5 Exhibits: 1. September 11, 2006, CalHFA Offers $10 Million to Local Government for Affordable Residential Development in California Communities, Businesswire.com 2. November 2006, Legislative Analyst’s Analysis, Proposition 1C Housing and Emergency Shelter Trust Fund Act of 2006 3. Fact Sheet, Proposition 1C: The Housing and Emergency Shelter Trust Fund Act of 2006, SB 1689 (Perata) 4. 2009/2010 California Housing Finance Agency Annual Report 5. July 10, 2006, City Staff Report 6. Resolution No. 2006-061 7. January 1, 2007, City Staff Report 8. Resolution No. 2007-013 9. September 24, 2007, City Staff Report 10. Resolution 2007-194 11. January 12, 2009, City and Redevelopment Agency Staff Report 12. Resolution 2009-009 13. Resolution RA-2009-01 14. January 09, 2009, Notice of Affordability Restriction on Transfer of Property and Declaration of Covenants and Restrictions 15. January 09, 2012, City Staff Report 16. Resolution No. 2012-002