MEETING DATE:
FEBRUARY 14, 2017
SUBJECT:
Title
RESOLUTION NO. SHA 2017-023 - INCREASE TO THE PROJECT LOAN FOR THE PROMENADE AT CREEKSIDE II PROJECT DUE TO A DROP IN THE VALUE OF 9% LOW INCOME HOUSING TAX CREDITS
Body
Recommendation
Recommendation
ADOPT a resolution as the Successor Housing Agency (SHA) to approve an $800,000 increase to the project loan.
Body
Board or Commission Action
June 8, 2010 - RDA Board approval of Exclusive Negotiating Agreement and predevelopment loan
May 10, 2011 - RDA Board approval of $28,200,000 million loan for project
September 24, 2013 - City Council as SA & SHA approval of Rescission Agreement
September 24, 2013 - City Council approval of $250,000 as contingency to resolve property tax issue
September 24, 2013 - City Council as SA & SHA approval of ENA and predevelopment loan
January 28, 2014 - City Council as SA & SHA approval of $17,023,000 million loan for project
January 27, 2015 - City Council approval of a $250,000 reallocation
May 26, 2015 - City Council as SHA approval of $3,110,000 project loan increase due to an increase in property value and an additional $800,000 PFF levied on Phase II
Relevant Council Strategic Theme
Planning for the Future
Relevant Department Goal
Facilitate Affordable Housing Production
Introduction
On January 28, 2014 the City Council approved the Promenade at Creekside (PAC) development. The project is to be built in two phases. Phase I was completed in mid-2016. Phase II has repeatedly applied for 9% tax credits during each subsequent Tax Credit Allocation Committee (TCAC) round. In November 2016, the project was successful in competing for the competitive award. Unfortunately, the value of the tax credits concurrently dropped as a result of the national election and in anticipation of future corporate tax reform. This requested action is to partially compensate for the unexpected funding gap that has emerged.
Discussion
Immediately following the satisfaction ...
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