SR-6-M (38)
RMD:HSG:JM:NW:JG:mtview\staff3\pc
Council Meeting: December 8, 1992
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To: City Council
From: city staff
SUbject: Recommendation to Appropriate TORCA funds to Provide a
Conditioned Loan Commitment to Purchase the Mountain view
Mobile Inn
INTRODUCTION
This report transmits information and recommendations regarding the
appropriation of TORCA funds in order to preserve the opportunity
to provide a conditioned loan commitment to finance a tenant
conversion of the Mountain view Mobile Inn. The report recommends
that the City Council approve an appropriation of $4,000,000 from
the TORCA Conversion Tax Fund in order to set aside funds for
potential financing of the Mountain view Mobile Inn Project.
BACKGROUND
The Mountain View Mobile Inn (the "Park") is a 141 space mobile
home park located in the pico Neighborhood at 1930 Stewart street.
The Mountain View Mobile Inn Residents Association (the
"Association") made an application to the City on March 3, 1992 for
project financing of $4 million from the TORCA trust fund. Total
development costs of the project are estimated to be $7.5 million.
The Association proposes to purchase the site and convert it from
a rental park to resident-ownership as a limited equity cooperative
using the TORCA process. All of the units in the proposed project
will be affordable to low and moderate income households.
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The Tenant Ownership Rights Charter Amendment (TORCA) was adopted
at a Special Municipal Election June 5, 1984 and amended on
November 6, 1984, November 6, 1990 and June 7, 1992. The June 7,
1992 amendment to the TORCA Charter requires that, on January 1,
1993, the balance of funds received prior to June 7, 1992 not
expended (according to Section 2008 of the Charter) to assist low
and moderate income households in tenant participating conversions
shall be split 50% toward a trust fund for the development of
affordable housing and 50% toward a TORCA homeownership assistance
loan fund. If the $4 million for the potential financing of the
Park is not appropriated before January 1993, the opportunity to
provide a TORCA loan will not be available.
On October 13, 1992, City Council directed staff to work with the
Tenant's Association to provide technical assistance in working
through significant project issues related to taxies, TORCA, the
purchase and sale agreement, and financing. In order for project
development efforts to continue, additional time is needed. Staff
has developed, in conjunction with the Association's development
consultants, a series of loan conditions which are consistent with
the positions which the City has expressed to the Association
during the past 10 months.
FINANCIAL/BUDGETARY IMPACT
As of June 30, 1992, there is approximately $5,500,000 in the TORCA
Fund Balance. In order to preserve the option of providing a
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contingent commitment to this project, it is recommended at this
time that $4,000,000 of the TORCA Tax Fund be appropriated to the
following account:
Account Number
14-720-264-20093-8900-99348
No part of the $4 million appropriation will be disbursed until the
toxics analysis is accepted by the City, financing of the remaining
portion of the project is secured, and a TORCA application has been
accepted for processing.
staff will return to the City council
with this project for Council consideration after all the project
components are developed.
RECOMMENDATION
It is recommended that the City Council appropriate $4,000,000 for
the Mountain View Mobile Inn project at account number 14-720-264-
20093-8900-99348.
prepared by: Jeff Mathieu, Director
Nancy West, Housing Program Manager
Johanna Marie Gullick, Senior Development Analyst
Resource Management Department
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