MEETING DATE:
June 14, 2016
SUBJECT:
Title
RESOLUTION NO. SHA 2016-020 - APPROVAL OF A COMMITMENT LETTER TO NATIONAL CORE FOR A REFINANCE AND REHABILITATION OF THE PASEO DEL ORO 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 2000-320 dated June 13, 2000
Resolution No. RDA 2000-322 dated July 11, 2000
Relevant Council Strategic Theme
Planning for the Future
Relevant Department Goal
Facilitate Affordable Housing Production
Introduction
Paseo del Oro is one of the earlier new-construction affordable housing communities built in the City. It has the distinction of being the first mixed-use, mixed-income affordable housing development, not only in the City, but in the nation. Built by National CORE (Developer), Paseo del Oro is a 120-unit family apartment complex with both an integral and a stand-alone commercial component located at 432 W. Mission Road in the Richmar neighborhood. There are 96 units with deed restrictions. Project funding was authorized by the RDA in 2000. The development opened in 2002.
Discussion
Paseo del Oro is entering its "Year 15 event" during which the tax credit investor formally withdraws from the project. At this time, affordable housing projects are evaluated by the Developer for continued economic viability out to Year 55. Some Developers may choose to sell a poorly performing property to another affordable housing entity, while those with a long-term approach choose to retain ownership. National CORE has opted for retention and refurbishment.
In order to secure financing for refurbishment and to buy out the tax credit investor, the developer plans to refinance the project with a combination of 4% low income housing tax credits from th...
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