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Amendments to Mission Bell <br />Apartment Agreements 3 June 15, 2009 <br />Below is a summary of the key deal points in the amended loan and regulatory agreement <br />between the City, Redevelopment Agency and AH. <br />• Additional $400,000 in City HOME funds for rehabilitation and refinancing. Of the <br />$400,000, AH plans to allocate $238,000 for rehabilitation and $162,000 for <br />refinancing. Rehabilitation costs include unit renovations, garage improvements to <br />comply with ADA standards, exterior upgrades such as repainting the building's <br />exterior, and the addition of solar panels which will eventually reduce AH's operating <br />costs. AH will leverage the City HOME funds with $268,000 in Alameda County <br />Housing Trust Fund dollars and $270,000 in private lender financing. <br />• Revise the unit affordability mix in order to achieve more stable, long-term income for <br />the property to ensure self-sufficiency. The property will still be 100% affordable but <br />will also include two designated low-income units. See table below for summary of <br />the proposed new unit mix. <br />• Extend the affordability period from 2061 to 2064. The Amended Regulatory <br />Agreement between AH and the City and Agency will continue to regulate the income <br />restrictions and affordability of rents for 55 years, which reflects an extension of three <br />more years from the prior regulatory agreement executed in May 2006. <br />• Replenish operating and capitalized replacement reserves. These City funds will <br />allow AH to replenish their reserves to fund capital improvements in the future as well <br />as cover unbudgeted operating expenses and income shortfalls. <br /> Existing Proposed <br /> Units Units <br />Extremely Low 13 7 <br /><30%AMI <br />Very Low 0 11 <br />< 40% AMI) <br />Very Low 12 S <br />(<_ SO % AMI <br />Low <60% AMI 0 2 <br />TOTAL UNITS 25 25 <br />Note: AMI is area median income <br />City/Agency Benefits <br />Ongoing benefits for the City and Redevelopment Agency to AH's rehabilitation, refinancing <br />and management of the Mission Bell Apartments include: <br />• Having an experienced and dedicated nonprofit own and manage an <br />affordable rental housing project. <br />• Provision of appropriate supportive services for the residential tenants. AH <br />provides all renters the opportunity for supportive services if needed. Allied <br />Housing contracts with Abode Services (formerly Tri-City Homeless <br />