HomeMy Public PortalAbout15. 2012.01.09 Staff ReportLivFRJo
CITY COUNCIL AGENDA REPORT
TO Honorable Mayor and City Council
FROM Eric Uranga Interim Community Development Directofa r
SUBJECT Appropriate 500000 in Housing Trust Funds F611 for Partial Repayment of
the Residential Development Loan Program RDLP Loan and Authorization
to Extend of the Loan Repayment Term
RECOMMEN ACTION
Staff recommends the City Council adopt a resolution appropriating 500000 in Housing
Trust Funds F611 for partial repayment and extending the repayment term of the
Residential Development Loan Program RDLP Loan from the California Housing
Finance Agency CaIHFA through January 22 2014
S
In November 2006 and July 2007 the City vas awarded two allocations totaling
5000000 in California Housing Finance Agency CaIHFA Residential Development
Loan Program RDLP funds to be used in the development of the 55 acre Livermore
Village housing site Under the terms of the existing agreement with CaIHFA repayment
of the loan would be due in full in January 2012 Due to the housing market slowdown
development of the Livermore Village site has extended beyond the term of what was
contemplated in the loan agreement Acknowledging current development conditions
CaIHFA has granted an extension of the loan term through January 22 2014 conditional
upon an initial 500000 payment towards interest due on the loan Staff recommends
City Council adopt a resolution appropriating 500000 in Housing Trust Funds 611
towards the initial loan payment and approving an extension of the loan term
DISCUSSION
In November 2006 the City was awarded 4000000 in California Housing Finance
Agency CaIHFA Residential Development Loan Program RDLP funds to be used for
the redevelopment of a blighted 55 acre commercial shopping center site formerly
Luckys into 280 units of residential ownership housing known as Livermore Village
MEETING DATE f AGENDA ITEM
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Under the requirements of the RDLP funds 10 of the units were to be designated as
affordable to low and moderate income households In July 2007 the City was awarded
an additional 1000000 in CalHFA RDLP funds to be used for the Livermore Village
development The total loan amount of 5000000 carries a three percent 3 interest
rate that is due to be paid in full in January 2012 Repayment of the loan was anticipated
through a combination of Redevelopment Agency Housing Setaside funds City of
Livermore Housing In Lieu funds and proceeds from the sale of the site
The Livermore Village project was approved and entitled in 2008 however due to the
concurrent collapse of the housing market the developer was unable to secure financing
for the project Subsequent Request for Proposals RFP followed to find anew
developer for the site however due to unfavorable market conditions for high density
ownership housing proposals for the site have not produced a project that could
immediately develop without significant additional City subsidy Staff is currently
evaluating qualifications from developers that could propose a plan to meet the short and
long term development goals for the site through a combination of rental and future
ownership phases In 2010 the City received a 2500000 infrastructure grant from the
Metropolitan Transportation Council that will be used to construct portions of the projects
roads sewer connections open space and infrastructure improvements This grant will
help reduce overall project costs and help speed development of the site
Over the last three years Housing Set Aside funds that would have been eligible to pay
off the loan have been diverted to meet mandatory pass through payments to the State of
California The subsequent elimination of Redevelopment Agencies and the Housing Set
Aside revenue source creates a greater need to extend repayment of the RDLP loan
Understanding development and city budgetary conditions CalHFA has offered an
extension in the repayment of the loan with the condition that an initial 500000
payment is made in January 2012 to be applied to interest due on the loan Staff
recommends the City Council adopt a resolution appropriating 500000 in Housing Trust
Funds F611 for this payment and approving an extension of the repayment term
through January 22 2014 Based on the current amount of housing funds available in
Fund 611 and on the projected amount of funds to be received under various housing
agreements already entered into by the City there will be sufficient funds available to
repay the RDLP loan when it comes due on January 22 2014
FISCAL AND ADMINISTRATIVE IMPACTS
If approved the RDLP tern of repayment would be extended through January 22 2014
The 500000 payment as well as the repayment of the remaining loan balance will come
from the Citvs Housing Trust fund F61 1 The 500000 initial payment will be made to
the State and credited towards interest due on the loan Interest would continue to accrue
on the unpaid prinicipal balance on the loan until repaid in full
RE
ATTACHMENTS
1 Second Amendment to the RDLP Loan Agreement
Prepared by
Eric Uranga ti
Interim Community Development Director
Approved by r
Marc Roberts
City Manager
RAch by
r
Doug Alessio Interim
uninlsuave Services Diactor
39
x T i
January 4 20 112
City of Livermore
Marc Roberts City Manager
1052 South Livermore Avenue
Livermore CA 94550
RE Amendment to Loan Agreement
CaIHFA Lean No RDLP06050602
Dear Borrower
This is to inform you that the following amendments have been inane to the above referenced ban
agreement
The loan term provision on Exhibit A is hereby amended to read as follows
Term subject to the provisions of Section 20 of the Contract the term of
the contract is extended to January 22 2014
Section 5 n of the loan agreement Is hereby amended to read as follows
Repayment of Loan Any balance owed pursuant to this Agreement whether
principal Interest or othenrdse if not sooner due and payable as provided herein
shall be due and payabe on January 22 2014
Other terms
As a condition of the extension a partial payment must be received by CaIHFA on
or before January 17 2912 in the sum of Five Hundred Thousand and 00100
Dollars 50000000 which the Agency Will apply first toward accrued Interest and
than to the outstanding principal amount
Except as expressly provided herein all terms and provisions of the Loan Agreement will
remain in full force and effect
Please acknowledge the acceptance of this amendment to the Loan Agreement below and return
this copy with an original signature to Maria Jimenez Loan Administration Special Programs by
January 17 2012 Should you have any questions in the above regard please feel free to contact
Mara Jimenez at 916 320 8050 or Denise Clark at 916 326 8038
Sincerely
Claudia Cappio
Executive Director
cc Eric Oranga
40
Acknowledgement and Acceptance
CITY OF LIVERMORE
Bye
Marc Roberts Clry Manager
11
ATTACHMENT 1
IN THE CITY COUNCIL OF THE CITY OF LIVERMORE CALIFORNIA
A RESOLUTION APPROVING AN APPROPRIATION OF 500000 IN HOUSING
TRUST FUNDS FUND 611 TOWARDS REPAYMENT OF THE RESIDENTIAL
DEVELOPMENT LOAN PROGRAM RDLP LOAN WITH CALIFORNIA HOUSING
FINANCE AGENCY AND AN EXTENSION OF THE RDLP LOAN TERM
THROUGH JANUARY 15 2014
BE IT RESOLVED by the City Council of the City of Livermore thaf
1 The City was awarded 5000000 In Residential Development Loan
Program RDLP funds from the California Housing Finance Agency RDLP 060506 02
for the purpose of developing housing units on the Livermore Village Project site
2 The loan term under the Amendment to Loan Agreement dated August
23 2007 states that the loan is due five years from the date of the Loan Agreement
The City and CalHFA now wish to extend the term of the loan through January 15
2014
3 In acceptance of the forms of the amendment to the loan agreement the
City shall appropriate 500000 in Housing Trust Funds F611 towards an initial
payment on the loan to be paid upon acknowledgement and acceptance of the
amended loan agreement
4 The City Manager is authorized to execute all documents related to the
extension of the RDLP Loan and repayment
Or the motion of Councilmember seconded by
Councilmember foregoing resolution was passed
and adopted on January 9 by the following vote
AYES COUNCILMEMBERS
NOES COUNCILMEMBERS
ABSENT COUNCILMEMBERS
ABSTAIN COUNCILMEMBERS
ATTEST APPROVED AS 10 FORM
r
Susan Nee 14ason fZ Atcala
City Clerk Senior Assistant City Attorney
RESOLUTION NO
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