Reso 2006-058 - Laserfiche WebLink

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In addition to the maximum $884,000 loan for renovation costs of the Project. the Agency will provide the Developer with an annual subsidy to fund annual operating deficits from operation of the Project. It is projected that the Project will need an annual operating subsidy starting at approximately $69,600 in the first stabilized year of operations. The Agency's annual operating subsidy is capped at amounts specified in the DDA. The amount of the subsidy, within the specified caps, will be calculated annually and evidenced by operating statements submitted by the Developer to the Agency. The DDA commits the Agency to providing the operating subsidy for up to 30 years. The total amount of the operating sUbsidy over the 30-year term is projected to be approximately $5,713,000, which is the cumulative maximum permitted under the DDA. The Agency will not receive repayment of the operating subsidy. c. Developer Responsibilities The. Developer is responsible for developing the Project in accordance with the terms of the DDA as follows: Obtain approval of the Scope of Development and Preliminary Site Plan by the San Leandro Board of Zoning Adjustment; No later than the date shown in the Schedule of Performance, submit to the Agency evidence that all conditions to the release and expenditure of the initial draw of funds, described in the approved Financing Plan as the source of construction financing for the Project, have been met and that such funds will be available upon conveyance of the Property; Obtain a preliminary reservation of tax credits from the California Tax Credit Allocation Committee and an acceptable funding commitment from equity investors for the project; Enter into a 75-year lease of the land and improvements with the Agency; Commence and complete construction in the manner and within the times specified in the DDA; Rent or make available for rent, 7 units at 30% area median income (AMI), 6 units at 35% AMI, 34 units at 40% AMI, and 20 units at 45% AMI as required by the DDA, the Regulatory Agreement, and any and all applicable state and local laws and regulations; Agree to record affordability restrictions on 100% of the units, which will remain in effect for a minimum of 55 years.