MEETING DATE:
June 14, 2016
SUBJECT:
Title
RESOLUTION NO. SHA 2016-019 - APPROVAL OF A COMMITMENT LETTER TO NATIONAL CORE (DEVELOPER) FOR A POTENTIAL REFINANCE AND REHABILITATION OF THE VILLA SERENA AFFORDABLE HOUSING DEVELOPMENT
Body
Recommendation
Recommendation
ADOPT a resolution of the City Council acting solely in its capacity as the Successor Housing Agency (SHA) to the San Marcos Redevelopment Agency authorizing the City Manager to sign a commitment letter.
Body
Board or Commission Action
Resolution No. RDA 97-282 dated August 12, 1997
Resolution No. 97-4925 dated October 14, 1997
Resolution No. RDA 97-283 dated October 14, 1997
Resolution No. RDA 97-284 dated October 14, 1997
Resolution No. SHA 2014-0091 dated September 9, 2014
Resolution No. SHA 2014-011 dated December 9, 2014
Relevant Council Strategic Theme
Planning for the future
Relevant Department Goal
Facilitate Affordable Housing Production
Introduction
The existing Villa Serena affordable housing community is an ageing 132-unit apartment complex that was acquired, rehabilitated and converted to affordable housing by the Developer in the late 1990s time frame. The community is now at the point in the life cycle of the buildings, which were built in the 1970s, where either a more substantial rehabilitation or a complete reconstruction will be necessary in the foreseeable future. In either case, financing assistance from the City will be required. The preferred option is for the Developer to completely demolish the current buildings and build a brand new affordable housing development on the site using 9% low income housing tax credits as the baseline funding source.
This approach remains the preferred and primary approach to the renovation of Villa Serena. It was conceptually approved by the City Council acting in its capacity as SHA when an Exclusive Negotiating Agreement and predevelopment loan was approved on September 9, 2014. However, in the event that the pri...
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