HomeMy WebLinkAboutRS03-Redevelopment Agency
REWVELOPMENT AGENCY.~UEST FOR ~MMISSION/COUNCIL AcTION
, From: GLENDA SAUL, EXECUTIVE DIRECTOR
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~t: Redevelopment Agency
Date: JUNE 12, 1986
Subject: FIFTH AMENDMENT TO SPONSOR
DEVELOPMENT CONTRACT - RHCP - DORJIL
ESTATES
Synopsis of Previous Commission/Council action:
11/19/86
6/1/81
9/7/82
11/1/82
12/6/82
6/20/83
7/18/83
11/7/83
11/9/84
4/21/86
Reso. #80-473 authorizing Dorji1 application to RHCP for funds for
development of housing.
Reso. #81-233 sponsor development contract with RHCP.
Reso. #82-378 First Amendment to sponsor Development Contract with RHCP.
Reso.#4402 authorizing checking account for Dorji1 Trust Fund.
Reso. #82-490 Second Amendment to sponsor development contract with RHCP.
Reso. #4474 - Owner's Participation Agreement.
Reso. #83-230 Third Amendment to sponsor development contract with RHCP.
Reso. #83-364 Fourth Amendment to sponsor development contract with RHCP.
Reso. #4676 First Amendment to Owner's Participation Agreement.
Reso. #4882 Second Amendment to Owner's Participation Agreement.
Recommended motion:
(MAYOR & COMMON COUNCIL)
MOVE TO ADOPT RESOLUTION OF THE CITY OF SAN BERNARDINO, OF THE COUNTY OF
SAN BERNARDINO, STATE OF CALIFORNIA AUTHROIZING AND DIRECTING THE EXECUTION OF
A STANDARD AGREEMENT AND ANY RELATED DOCUMENTS WITH THE STATE OF CALIFORNIA
FOR THE IMPLEMENTATION AND PARTICIPATION IN THE RENTAL HOUSING CONSTRUCTION
PROGRAM, IN THE FORM OFA FIFTH AMENDMENT TO CONTRACT BO-RHC-003.
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Signature
Contact person:
Phone: 383-5081
6
Supporting data attached:
Glenda Saul
YES
Ward:
Amount: $
N/A
FUNDING REQUIREMENTS:
16, 1986
No adverse Impact on City:
CCil Notes:
Date:
Agenda Item No.
RS-.3
. CIHoF SAN BERNARD~O - REQU~T FOR COUNCIL ACTION
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75--0264
STAFF REPORT
In 1981, the City received a Rental Housing Construction Program (RHCP) loan from
the State in support of the Dorji1 project located at 19th and California Streets
in the Northwest Project Area (Enterprise Zone).
Phase I of the project, consisting of 36 rental housing units, is complete. Phase
II is scheduled for construction shortly.
Until now, the City, acting as the local financing entity has served as the
monitor of many aspects of the project. These duties include a loan at below
market interest rate; establishment of a rent schedule for the non-assisted units;
disbursement to Dorji1 from the annuity fund account and from the feasibility fund
account; review and approval of the annual operating budget and the rent schedule
for the assisted units. The State is recommending the attached Change Order #5.
Change No. 5 provides that these responsibilities will now be monitored by RHCP.
A110ther terms and conditions of the contract and four amendments remain the same.
Staff recommends approval of the Change Order as submitted by the State.
1076G/JW
06/16/86
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RESOLUTION NO.
RESOLUTION OF THE CITY OF SAN BERNARDINO, OF THE COUNTY OF
SAN BERNARDINO, STATE OF CALIFORNIA AUTHORIZING AND DIRECTING THE
EXECUTION OF A STANDARD AGREEMENT AND ANY RELATED DOCUMENTS WITH
THE STATE OF CALIFORNIA FOR THE IMPLEMENTATION AND PARTICIPATION
IN THE RENTAL HOUSING CONSTRUCTION PROGRAM, IN THE FORM OF A
FIFTH AMENDMENT TO CONTRACT 80-RHC-003.
6 WHEREAS, the City of San Bernardino (hereinafter the City)
7 has applied to the Department of Housing and Community
8 Development for funding under the Rental Housing Construction
9 Program; and
10 WHEREAS, pursuant to Sections 50735, et seq., of the
11 California Health and Safety Code, the California Department of
12 Housing and Community Development (hereinafter the State) is
13 authorized to provide funds for rental housing construction; and
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WHEREAS, the City of San Bernardino (hereinafter the City) a
15 local public agency organizetl under the statutes of the State of
16 California, is eligible to receive said funds; and
17 WHEREAS, the Department of Housing and Community Development
18 has awarded the City a conditional funding commitment under the
19 Rental Housing Construction Program.
20 NOW, THEREFORE, BE IT RESOLVED that the City is hereby
21 authorized to enter into an agreement with the State to accept
22 financial assistance in an amount not to exceed Six Hundred
23 Thousand Dollars ($600,000) for purposes of development and
24 construction of new rental housing; and
25 BE IT FURTHER RESOLVED that the Mayor of the City of San
26 Bernardino or an authorized designee is hereby authorized to
C 27 execute the Standard Agreement and any related documents on
28 behalf of the City in the form of a Fifth Amendment to Contract
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80-RHC-003, subject to approval of such agreement by the City
Attorney.
I HEREBY CERTIFY that the foregoing resolution was duly
adopted by the Mayor and Common Council of the City of San
Bernardino at a
meeting thereof,
held on the
day of
, 1986, by the
following vote, to wit:
AYES:
Council Members
NAYS:
ABSENT:
City Clerk
The foregoing resolution is hereby approved this
day of
, 1986.
Mayor of the City of San Bernardino
Approved as to form:
~~~d/
ity A torney
2
DAft: OF' CALI.-oRNIA
8TO.. flIl'EV. .,."
,
o COfmIIA\._ (OR
o STAn AGENCY
o DPT, OF .... SEA.
o CC>NTWOU.aR
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. , S~DARD AGREEMENT - :;;Oi~ :~.J~:AI. 0
c:.HIS AGREEMENT, made and entered into this 11 th day of April . 19 86 .
the State of California. by and between State of California, through its duly elected or appointed.
ualified and acting
TfT~ OF ~"'IC.l't ACTlNca...OR STATE
......Hey
Department of Housing and Community Developmen
NUMBER
Director
hnuftn CtdW tJar State, dnd
City of San Bernardino
Mufter CdUed tJar eon',ddor.
WITNESSETH: That the Contractor for and in consideration of the covenants, conditions, agreements, and stipulations of the State
hereinafter expressed, does hereby agree to furnish to the State services and materials. as follows:
(Se' fOtlh _.. '" rendered "" eon'''''''or, ......n' '" '" pold eon."""or, Ii"" for performo_ or ~lon..nd .'tach ""'"..nd """j;aJ..,.... 'f .nv.)
Standard Agreement Number 80-RHC-003 dated May 6, 19B1, and Amendments 1, 2, 3 and 4
between the State and the Contractor are hereby amended to read:
BO-RHC-003 Am.5
The second paragraph is hereby amended as follows:
Purpose: To assist in the construction and in the.acquisition of rights of occupancy
for units (hereinafter the "assisted units") and to ensure that at least 30 percent
of the units in the Development shall be made available on a priority basis to or
occupied by households of low and very low income, the contractor (hereinafter the
"Local Finance Entity" or "LFE") has applied to the Department for financial
assistance from the Program. The State on January 22, 1981 approved application No. R-3,
subject to the conditions hereinafter expressed and has determined to provide
financial assistance pursuant to the Pr09ram.
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Since the original application was approved, the State on May 10, 1985 approved a
component change from sponsor development to rights of occupancy and on April 11,
1986 reaffirmed the financial commitment of $600,000 in feasibility funds to
Th . , the 'd h f Ii'lot rt of th' l -conti nued on Page 3 -
e provIsIOns on reverse 51 e ereo cons e a pa IS agreemen
IN WITNESS WHEREOF, this agreement has been executed by the parties hereto, upon the date fint above written.
STATE OF CAUFORNIA
CONTRACTOR
De artment of Housin and Communit
av IAVTMOttIZED SIGN...TUREI
CONnt...CTOR .... cw.- '!MAN ..... ~ InA~ WMnMD A CCII~"TION.
.--. -= Ci ty of San Bernardi no
av ....VTMOfIIZED IIICINATUIltE.l
AGENCY
TITLE
TITLE
Glenda Saul
Executive Director
CONTINU.D ON SMl!ETS, ....c... _AlftING NAME OF CONTlltACTOR
AMOUNT .NCUMUlltEtl
300 North D Street, San Bernardino, CA 92418
ADOOOESS
PftOGIltAM/C:ATEcacntY ecoOE AND TlTLeI
20 Community Affairs
FUND T1T~
Department of General Services
Use Only
938 RHCF
CO"IONAL. USE)
2500/24130
ITEM See. 50400.5
86
OLlECT OF U~.NDfTUIIt ICODE AND TfTLeI
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1 here"" cntlfv upon mv own penonollmouJledg. ,ho. hud,..ed fund.... T .a.A. NO.
doodablr for'he period and puf'POSeof the npt"IIdlfure .tdted dbove.
llaereby unify that dll conduiDn.s for nernphon Ie' ftwth in Sta,e Adminis,nztive MdnU41 Section 1209 have
been complied wi'" and ,lail dtJcumnu is eumpt from ,.evieu.' by,he Depczr1mef1t of FinGnce.
B.R. NO.
SIGNATURE OF ACCOUNTING OF""C!ER
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SIGNATUlltE Ol" OFFiceR SIGNING ON BE"'AL.F OF THE AGENCY
OATE
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City of San Bernardino
80-RHC-003 Amend. 15
Page 3
completion of the second phase of the project. Phase I on Parcel 1 is
currently improved with 36 RHCP assisted units and Phase lIon Parcel 2 .
will be improved with 78 unassisted units.
Paragraph 9. is hereby amended as follows:
9. The LFE has entered. or will enter into an agreement with Dorji1 Company
and Dorji1 II. California limited partnerships (hereinafter "the Sponsor
or Sponsors"). to provide to the Sponsors below market interest rate
(hereinafter "BMIR") financing. or its equivalent. for the purpose of
assisting the Sponsors to acquire certain property (hereinafter "the
Property") described in Exhibit A. attached hereto and made part hereof.
and to develop. construct and operate on the Property a 114 multi-unit
rental housing development (hereinafter "the Development") consisting of
36 assisted units and 78 unassisted units to be situated in the County
of San Bernardino. State of California. . The assisted units subject to
the rights of occupancy shall be owned in fee by the Sponsor. and such
assigns. successors. transferees or purchasers who may from time to time
acquire the development.
Paragraph 10. is hereby amended as follows:
10. Pursuant to the statutes and regulations governing the Program. the LFE.
the department and the Sponsors will enter into a Regulatory Agreement
governing the Development and the financial assistance. including the
feasibility payments as provided herein. The provisions of that agree-
ment and of this State contract. along with other documents approved by
the Department. shall control the use of Program funds and other
financial assistance to be provided to the Development. to ensure the
fiscal integrity of the Development and the continuing availability of
the assisted units to eligible persons for the period described below.
Said Regulatory Agreement shall provide for joint operation. management
and mainteDance of both phases of the project.
Paragraph 12 is hereby amended to add the following:
"Feasibility payments"means payment pursuant to Section 7838(b)
for nonasslsted unit development costs.
Paragraph l4(d) is hereby added as follows:
(d) The Department shall provide Feasibility Payments to the LFE
in the amount and according to the manner. timing and other terms
specified in Exhibit E. attached hereto and made a part hereof.
Paragraph 42 is hereby deleted in its entirety.
Exhibits A. B. and C are replaced in their entirety by the Exhibits A. B. and C
attached hereto and by this reference incorporated herein. A new Exhibit E
CiS attached hereto and by this reference incorporated herein.
All other terms and conditions shall remain as set forth in the original agreement
and amendments thereto.
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City of San Bernardino
80-RHC-003 Amend. #5
Page 1 of 1
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EXHIBIT B
ASSISTED UNITS
Very Low Income Other Lower Income NON-ASSISTED UNITS
Unit
Description Number 1/ Number 1/ Number 1/
(Bedrooms/Bath) of Units Dccupancy- of Units Occupancy- of Units Dccupancy-
2 1 6 Elderly or 4 El derly or 22 . Famfly
Handicapped Handicapped
3 2 15 Famfly 7 Family 56 Fami 1y
4 2 3 Famfly 1 Famfly -
11 Occupancy is restricted to the designated group.
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RHCP IHB/5-3.4
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Ci ty of San Bernard ino
Fiage 1 of 2
80-RHC-003 Amend. #5
EXHIBIT .e.
Development Payments
1. The Department shall provide Development Payments in the total amount of
Sl,905,632 and a contingency amount of S190,563 from the Department's
Development Payments Account for the payment of development costs
approved by the Department for the proposed Development. The funds will
be provided in a form of a no interest, deferred payment loan to ~e
evidenced by a note and secured by a deed of trust on the Property.
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2. The total amount of the loan shall be set forth in the Development
Agreement, shall include all approved development costs and shall in no
case exceed the sum of Development Payments and the contingency amount
stated above. Any additional development costs not included in the
LFE's approved application for assistance Which result in total develop-
ment costs in excess of the amount of Development Paymel.ts stated above
shall be identified, documented and justified by the LFE and shall be
subject to the approval of the Department.
3. The timing, method and manner of disbursement of the funds authorized
herein shall be set forth in the Development Agreement. All disburse-
ments of funds shall be deposited by the LFE in an account and in a
financial institutior., both approved by the Department. Interest paid
on such account, if any, shall, at the direction of the Department, be
returned to the Department.
b)
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City of San Sernardin~
Page 2 of 2
80-RHC-003 Amend. #5
approved certified cost audit, and (3) the release of all liens,
assessments and encumberances against the Development to the
satisfaction of the Department. The exact timing and terms of such
final payment shall be set forth in the Development Agreement.
No funds shall be disbursed ~rior to Loan Closing. The following te~s
and conditions must be met to the satisfaction of the Department prior
to Loan Clos ing.
a) Ali reQuired contracts and ieQai aoreements shali be completed and
ICproved by the Department before be~artment loan and qrant ciosing.
Sucn contracts sha 1i inc 1 uoe:
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A Regulatory Agre~ent !let ween the Appl ican: and .Sponsor which Sh311
include a provision for annuai operational subsidies.
A Development Agreement between the Applicant and Sponsor.
2.
3.
Agreements between the Sconsor, oeneral contractor and the architect
must be approved by the Decartment.
"4.
A first deed of trust with the Department as beneficiary in the
amount of the development payments. . .
5. Any additional agre~~ents that the Oe~ar~~ent deems necessary.
b) The general contractor, architect, and manage::)!n: agent must be approved
by the Department.
c) The management plan must be approved by the Oe~art~~nt.
d)
The final architecturai drawinos and specifications must be approved by
the De~artment. -
e) The first year operational budget must be approved by the Department.
f) The specific amount of the RHCP development payments at the time of loan
and grant closing will be determined by the Depar:ment based on review
of final specifications and costs, but in no even: shall it exceed
S2,096,195.
Loan !!lei grant clos ing sha" take place on or before ..November 15, 1982
The Development Aoreement shai~ reQuire construction comcletion and
occupancy within eighteen (lB) months of loan and grant closing.
The Sponsor shall obtain a building ~ermit before loan and grant
closing.
Sponsor shall secure below market interest rate financing, the amounts,
terms and condit ions c~ wh ich sha" be SUbject to aoproval by the
De~artment.
All documents relating to the below' market interest rate financing .
includin~, but not limited to, loan agreements, notes and dee~s ~f trus.
shall be-subject to the review and approval by the Department pnor to
loan and grant closing.
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c:> City of San Bernardino
80-RHC-003 Amendment 5
Page 1 of 1
EXHIBIT E
Feasibility Payments
A. The Department shall provide feasibility payments in the total amount of
$600.000 from the Department's Feasibility Account for the payment of
development costs for the proposed development. subject to the following
conditions:
1. The loan shall be evidenced by a Note and secured by a Deed of Trust
on the Phase II property subordinate only to the primary'CHFA
fi nand ng.
2. The interest rate and repayment terms shall be established consistent
with the CHFA permanent financing terms and the projected cash flow
of the development.
3. The Regulatory Agreement shall be amended to cover the 114 unit
leveraged project and provide for long-term rental use. feasibility
loan repayment terms and operating budget review and approval.
4. All permanent financing terms and conditions. and documents must be
approved by the Department.
5. A subordination agreement which places the City's loan in third
position behind the RHCP feasibility loan must be approved by the
Department.
6. Review and approval by the Department of the Dorjil Estates Phase II
limited partnership must be secured.
7. Review and approval of a joint use agreement which provides for use
of Phase II facilities (i.e.. swimming pool. etc.) by Phase I
assisted tenants must be secured.
8. Loan closing must take place before June 30. 1986.
Attachment