HomeMy WebLinkAboutCouncil Agenda StatementCITY OF NATIONAL CITY, CALIFORNIA
COUNCIL AGENDA STATEMENT
MEETING DATE:
July 19, 2011
AGENDA ITEM NO.
ITEM TITLE:
Resolution of the City of National City approving a residual receipts loan of $717,500 from HOME
Investment Partnerships Program funds to T&T Community Properties, LLC for the acquisition and
rehabilitation of an 8-unit apartment complex at 138 Norton Ave, National City and requiring affordable
rent restrictions on 8 units for a period of 55 years
PREPARED BY: Alfredo Ybarra
PHONE: (619) 336-4279
EXPLANATION:
This action authorizes the allocation of $717,500 in federal HOME Investment Partnerships Program
(HOME) funds to acquire and rehabilitate an eight unit rental housing project located at 138 Norton
Avenue, National City. In exchange for the $717,500 loan, T & T Community Properties LLC, will
maintain affordable rents on eight units for 55 years for very low and low income families earning at or
below 50 percent, 60 percent and 80 percent of the area median income (AMI).
The total sources of financing for the property purchase and substantial rehabilitation include the
$717,500 loan from the City of National City, a new first mortgage of $565,000, deferred developer fee
of $57,000, and other equity of $31,850. The total acquisition and rehabilitation cost is $1,371,350.
DEPARTMENT: Community Development
APPROVED BY:
FINANCIAL STATEMENT: APPROVED: Finance
ACCOUNT NO. APPROVED: MIS
The project will be funded with $572,500.00 allocated by City Council Resolution 2011-98 to the HOME Housing Development
Fund that includes $75,167 in Program income and $a45,000.00 of $537,963.0o allocated by City Resolution 2006-56 to Asst.
Production -Affordable Housing.
ENVIRONMENTAL REVIEW:
The Aloha Terrace Apartment Project located at 138 Norton Avenue, National City, CA is exempt from
National Environmental Policy Act (NEPA) requirements per Section 58.34(a) (12).
ORDINANCE: INTRODUCTION: FINAL ADOPTION:
STAFF RECOMMENDATION:
Adopt resolution
BOARD 1 COMMISSION RECOMMENDATION:
ATTACHMENTS:
1. Background
2. Loan Agreement