MO 1999-071 to 1999-075 - Laserfiche WebLink

Home

` Citizens Housing Corp. 2 November 29, 1999 pursue the tax credit financing, these tenants might have to be relocated over the course of approximately two years. DISCUSSION Taking into account the City's concern regarding potential tenant displacement, CHC has approached the City with an alternative plan for financing the project as a mixed -income project, thereby minimizing the possibility of relocation for tenants with higher incomes. Under the revised plan, CHC anticipates maintaining 25% of the units for tenants whose incomes may exceed 60% of the Area Median. In addition, any existing tenant whose income exceeds the program limit will not be displaced The funds allocated for rehabilitation will be utilized to upgrade the interior of the units and to revamp the exterior. Priority items include replacing kitchen appliances in all units, replacing front doors and windows, installing exterior security lighting, re -roofing, installing a children's play area, and providing exterior improvements such as architectural details, painting and landscaping. The cost of obtaining financing for a mixed -income project is higher, resulting in a financing gap which is $500,000 greater than that identified under the tax credit alternative presented to the City Council in April of this year. In order to restructure the financing, CHC has requested an additional $300,000 HOME fund allocation. The remaining $200,000 gap will be raised from other sources. Fiscal Impact San Leandro's uncommitted HOME fund balance is approximately $650,000 (excluding the $750,000 previously committed to the CHC project). Should the additional $300,000 request be granted, there will be a remaining HOME fund balance of $350,000. CONCLUSION Staff recommends City Council approve an additional allocation of $300,000 of HOME funds for acquisition of the Las Palmas apartments and authorize the City Manager to execute the required documents. DF/NP:Ia f citizens/2nd proposa]STAFFRPT A38