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HA - Approval of a Loan Purchase Contract Related to the Loan for 4043 Irving Place.
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Contact Person/Dept: Tevis Barnes, Todd Tipton/CDD
Phone Number: (310) 253-5700
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: Yes [] No [X]
Commission Action Required: Yes [] No [X] Date:
Commission Name:
Public Notification: (E-Mail) Meetings and Agendas - Housing Authority (03/25/16)
Department Approval: Sol Blumenfeld, Director of Community Development (03/24/16)
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RECOMMENDATION
Staff recommends the Culver City Housing Authority Board (Housing Authority Board) approve a Loan Purchase Contract related to the Residual Receipts Loan for 4043 Irving Place (Project).
BACKGROUND/ DISCUSSION
In 2011, the Agreement was entered into between the former Culver City Redevelopment Agency (former CCRA) and 4043 Irving Place Investors, LLC (Developer). Under the terms of the Agreement, the former CCRA provided a loan to the Developer in the principal amount of $3,366,000 at an interest rate of 1.5% (Loan). Repayments of principal and interest would begin when the Project reached certain income thresholds or, in the case those threshold triggers were not reached, beginning several decades in the future. When the loan was granted, it was considered unlikely the Project would reach the income thresholds prior to the future date where payments of principal and interest would otherwise be required.
In return for the Loan, the Developer agreed to incorporate 12 affordable housing units (Affordable Units) in the residential mixed use development project. The Affordable Units are secured by a 55-year covenant recorded against the property. The loan addressed the feasibility gap in financing due to the income restrict...
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