10B Action 2009 0406 - Laserfiche WebLink

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BRIDGE Housing -The Alameda ~ of 7 Apri16, 2009 their amounts. If the State further delays the MHP funding cycle this year, the Agency shall grant the Developer permission to pursue 9% low income housing tax credits, which will generate larger equity funding than 4% tax credits, and replace MHP as a funding source. Source Amount (in millions) Tax Credit Equity $12.3 San Leandro Redevelopment Agency $ 9.1 State MHP $ 8.8 State TOD (from Proposition 1 C for infrastructure only) $ 4.4 Private lender $ 2.6 General Partner (BRIDGE) contribution $ 0.2 TOTAL $ 3 7.4 • Up to $2.2 million of the Agency loan maybe disbursed for predevelopment costs (e.g., architecture, engineering) that BRIDGE incurs in connection with the project. Prior to the date that BRIDGE acquires a leasehold interest in the project site, the predevelopment funding will be provided as an unsecured loan; however the Agency will receive an assignment of rights to the plans and studies funded by the loan. When BRIDGE executes a ground lease with Westlake for the property, the entire Agency loan, including the portion disbursed for predevelopment costs, will be secured by a leasehold deed of trust. • Assuming BRIDGE can apply for State MHP funds in May 2009 and tax credits in November 2009, start of construction is estimated to be in April 2010 and construction completion in December 2011. The proposed project will contribute significantly in enabling the City to meet its affordable rental housing goals and objectives under its State-mandated Housing Element. The proposed 100 affordable rental units will count as new housing units towards the City's 2007-2014 Association of Bay Area Government (ABAG) Regional Housing Needs Allocation goals. This project will also help further the affordable rental housing goals in the City's Five Year HUD Consolidated Plan and the Redevelopment Agency Implementation and Plaza Project Area Plans. Financing Mechanism for Agency Loan The Agency does not currently have (nor will the Agency have) the full $9.1 million in cash available for disbursement by the start of construction. Therefore, the Agency will likely pursue a tax allocation bond to finance the $9.1 million loan less any amount in cash the Agency has already distributed for the project prior to issuing the bond. The Agency will only be committing up to $9.1 million to the project (net of the financing costs related to issuing a tax allocation bond, which will cost the Agency an additional $200,000 to $300,000 in issuance costs, and a reserve fund deposit that can be used by the Agency to make the final payment on the bond). The Agency has determined it will have sufficient future Housing Set-Aside fund revenues to pay for existing housing programs (including general administration, first time homebuyer program and owner- occupied housing rehabilitation program, existing debts) and repay a bond over 20 to 30 years.