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Mission Bell Apartments (112 Garcia Ave) <br />Summary of Allied Housing's Proposal <br />I. Background on Existing Property <br />a. 25 studio apartments and 6 ground floor commercial spaces <br />b. Seller has forgivable ($686.SK) rehab loan from Redevelopment Agency <br />(RDA) with current balance of approx. $540,000 <br />c. RDA regulatory agreement restricts affordable units until 2033 <br />II. Proposed Project By Allied Housing <br />a. Acquire property for $3.4 million ($3.1 sales price + $300K for due <br />diligence/closing costs, bridge loan fees, interest charges, minor repairs) <br />b. Proposed Income Targeting: <br /> Existing Proposed Net Change in <br />Affordable Units <br />Extremel Low 0 13 +13 <br />Ver Low 7 12 +5 <br />Low 7 0 -7 <br />Moderate 6 0 0 <br />Market S 0 0 <br /> +11 <br />c. Will extend the affordability period 55 years unti12061 <br />d. Financing Plan <br />i. Allied will obtain $3.4 million in short-term/permanent financing <br />to close escrow in Apri12006 without City funds <br />1. fast close of escrow due to seller involvement in <br />Starker/1031 tax exchange <br />ii. Permanent Loan/Financing Requests <br />1. City of San Leandro: $1.1 million ($915K from <br />McKinney Refund Act and $185K from HOME funds) <br />a. City loan terms: deferred for 55 yrs at 3% <br />annual interest with residual receipts repayment <br />2. $1.6 million from Alameda County and other public <br />resources (e.g., Federal Home Loan Bank) <br />3. $700K from private lender <br />Busi~~ess Development Committee (March 9, 2006) <br />