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Finance for Alameda at San Leandro Crossines 2 December 21, 2009 Use of Low and Moderate-Income Housing Funds Outside the Project Areas California Community Redevelopment Law ("CRL") authorizes redevelopment agencies to use monies from a Low and Moderate Income Housing Fund for projects located outside the project area that generated the funds if the redevelopment agency and the legislative body fmd that such use will be of benefit to the project area. The Agency previously approved an Owner Participation and Loan Agreement (the "OPA") with Alameda Housing Associates, L.P., a California limited partnership (an affiliate of BRIDGE Housing Corporation) (the "Developer") pursuant to which the Agency agreed to provide predevelopment and construction/permanent financing in the form of a loan (the "Agency Loan") to the Developer to assist in fmancing the development of a 100-unit affordable multi- family residential project (the "Project") located in the Plaza Project Area. The Agency desires to use the proceeds of the Bonds to fund the Agency Loan and for other purposes authorized by the CRL both inside and outside the Project Areas. The Project will be of benefit to the Joint Project Area and the WSL Project Area because it will be in close proximity to such Project Areas and will increase the supply of housing that is affordable to persons and households of low- and moderate-income who reside and/or work in such Project Areas. Interim City Loan In order to facilitate the issuance of the Bonds upon favorable terms and the fmancing of the Project in a timely manner in accordance with deadlines imposed by the California Tax Credit Allocation Committee (CTCAC), the Agency has requested that the City provide the Agency with ashort-term interim loan (the "City Loan"), if needed, in an amount not to exceed Six Million Nine Hundred Thousand Dollars $6,900,000 and in accordance with the terms set forth in the promissory note accompanying this staff report (the "Note"). As discussed in the staff report relating to the Bonds considered by the City Council on December 21, 2009, the City has funds in its Water Pollution Control Plant Fund that can be made available for the City Loan. The Note provides for repayment of the City Loan within 90 days and payment of interest at the City's investment portfolio rate. Previous City CounciURedevelopment A~ency Action(s) Council and Agency Joint Meeting of December 21, 2009 authorizing issuance of taxable tax allocation bonds. City CounciURedevelopment A~ency Committee Review and Action City Council Finance Committee review of financing plan on November 17, 2009 and December 15, 2009. On December 15, 2009 the Finance Committee gave approval to take the item forward to the full City CounciURDA for review and approval. Fiscal Impact As defined in the agenda report. Budget Authority N/A