Housing Authority

City Hall, Council City of Santa Rosa Chamber 100 Santa Rosa Avenue Santa Rosa, CA HOUSING AUTHORITY REGULAR MEETING AGENDA AND SUMMARY REPORT OCTOBER 28, 2019 CANCELLED CANCELLED All public meetings in the City of Santa Rosa are cancelled for Monday (10/28) and Tuesday (10/29) due to forecasted critical fire weather event and potential PG&E (10/26) Public Safety Power Shutdown. Visit SRCity.org/emergency for most up to date information on weather event and potential public safety power shutoff. All City resources are being shifted to focus on preparing for potential impacts to the community. --- Todas reuniones públicas de la Ciudad de Santa Rosa se han cancelado para el lunes 28 de octubre y el martes 29 de octubre debido a un evento meteorológico crítico de incendio pronosticado y un posible apagón de energía pública de PG&E el 26 de octubre. Visite srcity.org/emergency para obtener información actualizada sobre eventos climáticos y posibles cortes de energía. Estamos asignando los recursos de la Ciudad para enfocarnos en preparar para posibles impactos en la comunidad durante este evento meteorológico crítico. 1:30 P.M. 1. CALL TO ORDER 2. ROLL CALL 3. STATEMENTS OF ABSTENTION 4. PUBLIC COMMENTS (ON NON-AGENDA ITEMS) City of Santa Rosa Regular Meeting Agenda and Summary Report Page 2 of 3 Housing Authority OCTOBER 28, 2019 5. APPROVAL OF MINUTES 5.1 August 26, 2019 - Draft Meeting Minutes 6. CHAIRMAN/ COMMISSIONER REPORTS 7. COMMITTEE REPORTS 8. EXECUTIVE DIRECTOR REPORTS/ COMMUNICATION ITEMS: 8.1 HOUSING AUTHORITY FY 2018/19 QUARTER 4 (YEAR END) FINANCIAL REPORT- Provided for information. (This item is continued to a date uncertain) 8.2 HOUSING AUTHORITY MONTHLY ACTIVITIES REPORT - Provided for information. (This item is continued to a date uncertain) 9. REPORT ITEMS 9.1 REPORT - BURBANK HOUSING DEVELOPMENT CORPORATION LOAN MODIFICATION REQUEST - LANTANA PLACE HOMES (2979 DUTTON MEADOW, FORMERLY 2975 DUTTON MEADOW) - APN 043-121-013 (This item is continued to a date uncertain) BACKGROUND: Burbank Housing Development Corporation is requesting a loan modification to forgive the accrued interest, convert the interest rate of the secured Loan to zero percent until the units are sold, and reduce the encumbrance on the Property by $3,575,759 through a new, unsecured Promissory Note. The Housing Authority (Authority) has provided loans to Burbank Housing Development Corporation (BHDC) totaling $7,078,073 for Lantana Place Homes, a 48-unit homeownership project located at 2979 Dutton Meadow (Project). Since 2007, Lantana Place has evolved from a 100-unit multifamily rental complex to the current 48-unit homeownership project. The Project was recast as homeownership in 2017 to address: (a) the financing gaps for rental housing associated with the suspension of the state’s Multifamily Housing Program and the dissolution of statewide redevelopment programs, (b) the U.S. Department of Housing & Urban Development (HUD)’s inquiry into the delayed status of the Project; and City of Santa Rosa Regular Meeting Agenda and Summary Report Page 3 of 3 Housing Authority OCTOBER 28, 2019 (c) rising construction costs. Since the Project was recast as ownership housing, the construction costs have continued to increase, causing a short-term over-encumbrance with the addition of the anticipated construction loan to be secured by the Property. RECOMMENDATION: It is recommended by the Housing & Community Services Department that the Housing Authority, by resolution, approve Burbank Housing Development’s (BHDC) request to modify Housing Authority Loan Nos. 9032-1825-07, 9932-1835-07, 9932-2075-10, 9932-2781-17, 9932-2791-17, 9932-2801-17, and 9932-2801-17 (Loan), in the total principal amount of $7,078,703 for Lantana Place Homes as follows: (a) Forgive all interest accrued on the Loans in an approximate amount of $992,500 (final amount to be determined as of the date of Loan Modification); (b) Modify the existing Promissory Note and Deed of Trust to reduce the total amount to $3,502,944 at 0% interest until the units are sold; (c) Enter into a new, unsecured Promissory Note in the amount of $3,575,759 ; (d) Upon sale of the individual units, convert the $3,502,944 into down payment assistance for each home purchaser at 3% simple interest, deferred payment, for a term of 30 years; and (e) Modify the targeted homeownership income levels from households earning 80% - 120% of Area Median Income (AMI) to households earning 70% - 95% of AMI. 10. ADJOURNMENT The City of Santa Rosa does not discriminate on the basis of disability in the admissions or access to, or treatment of or employment in, its programs or activities. Disability-related aids or services, including printed information in alternate formats, to enable persons with disabilities to participate in public meetings and programs are available by contacting the Housing Authority Recording Secretary at (707) 543-3300 one week prior to the meeting/program. This information can also be accessed via the internet at: http://www.srcity.org ____________________________________________________________ NOTE: Any writings or documents provided to a majority of the Housing Authority regarding any item on this agenda will be made available for public inspection in the Department of Housing and Community Services located 90 Santa Rosa Avenue during normal business hours.