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F 1HOUSINGISHAREIWPFILESISTAF~RPTltrustfuR wpd
Couneri Meetirrg November 24, ~ 99~ Santa Mvnica, Catifarrna
TO Mayor and C~ty Gour~c~~
FROM City Staff
SUBJECT Recommenda#ion to i) Apprave Consolidated Rental Hausing Trust Fund
Guidelines, 2) Adopt Gujde[ines governing the T~RGA Hous~ng Trusf Fund,
and 3} Adopt Resolut~on That Prov~des far a One Time Income Exemption
far Units Assisted With Redevelapment Housmg Trust Funds
INTRODUCTION
This report recomme~ds thatthe City Council 1) approve the attached Consolidated Rental
Housir~g Trust Fund GwdelEnes ("Guidel~nes") (Attachment A), in order to amend a~d
cor~sol~date the ex~sting guidel~nes (summar~zed ~n Attachmen# B} for tne HOME
Investment Parknership (HOME} Program Trust Fund, P~co Neighborhaod Housing Trust
Fund, CEtywide Housing Trust Fund, and Citywide Housing Acquisition ancf Rehabjli#ation
Program, 2) adopt gu~delines go~ernmg the TORCA Housing Trust Fund ta facilitate
funding of housmg production activity, 3j adapt a Resolut~on (Attachment C~ that pra~icfes
for a one t~me income exemptian ta fac~litate the purchase and deed restrict~an of units
purchased with Rede~elopment Housing Trust Funds Authonzat~an by Resolution of #he
C~ty Got~nc~! ~s req~~red by Cal~fQrnEa Redeveloprrzent ~aw
The Housing Comm~ss~on reviewed #he praposed Guidek~nes at its meetmg of September
17, 1998 and solicited further pubhc input at a sJ~ecial subcommittee meeting regardi~g the
G~idelines hetd Octaber 7, 1998 The GuideEmes were appro~ed by the HousEng
~
CammESSion at its mee#mg of ~ctober ~ 5, 1998 The C~ty's Rede~elopment Cauncii has
reviewed approprtate sec#rons #or compfiaRCe w~th Calrfornta Rede-relopment ~aw
BACKGROUND
The CEty staff currentfy administers faur ho~asing trust #unds (1) Pico Ne~ghborhood
Housing Trust Fund, (2) Cityw~de Hausing Acquisif~on and Rehabilitat~on Program, (3)
C~tywide Hausing Trust Fund, artd (4} HOME Ir~ves#men# PartnersFt~p ~HQfVIE) Program
Trust Fund These funds provide ioans to affardable housing pro~ects, supplementang
fiinancing sources from the federal, state, county and prEWate sectors Djst~nct Guidelines
govern the expend~tures from each of the Trust F~nds In addition, th~ Tenant Ownershjp
Rights Charter Amenciment (T~RCA} designa#es that a port~on of the revenues generated
by that program be used to ass~st d~velopment of affardable ho~~s~ng Gu~del~nes have not
been developed pre~iously for use of these TORCA funds
D~SCUSSION
Staff proposes adoption o# a single, consolidated set of program Guidelines to increase
cansistency among program components, where feasible, remove, amend, or repface
obsolete pragram rec~uirements, and s~mpfify pragram requirements by making the
Guidefines rnore "us~r fr~endly" far patential borrowers and City staff These Gu~d~lmes
descr~be the types of proJects and ~ses that are elfg~ble ~r~der each f~anding saurce ~n
addition, they summarize the un~que afforda~ihty or other requirements af each source,
and provide a single process for considera#ion ofi funding appl~cations, pro~ect selection,
~
issuance of loan commitments, clasmg procedures, and reportmg requirements Finally,
the Guidek~nes contain updated applicatian forms These forms have been designed to
mclt~de all ~nformatro~ necessary to complete a prv~ect revtew as qu~ckly as possrble
folkawing applicat~on rece~pt
Highlights of the new Guidelmes m~lude,
Adoption of the TORCA Housing Trust Fund Guidelrnes. The Tenant Ownership
R~ghts Charter Amendment (TORCA) pro~ides that one-half ofi the re~enues derived fram
Irens pa~d through con~ersion of apartments to condominEUms be used to assist t#~e C~ty
Qr a nonpra#it housmg de~eiapment corporation to acquire and rehabilitate, cor~struc#, aid
~n the f~nanc~~g af, or pro~ide rental subsidies for temporary or permanent housmg for 14w
income households Tt~e ~roposed Gu~d~f~r~es formal~ze requirements for ~se of these
funds for acquisi~ian, rehabiiitation, and construcfion of renfaf housing, consistent with
Charter requirements_
Adoptron of Revised Program Loan Terms. Proposed Gurdeli~es woufd impfemen#
standard proWisions regarding loan terms, such as loan amounts, length of laans, and
payment requirements as follaws
(a} Standardize maxrmum loan arrrounts
Currently, the guidelines for maxkmum per unit loans ~rary as follows
-$6Q,000 per unit under the Citywic~e Hous~ng Trust Fund,
3
- $45,Oa0 per un~t under CHARP,
- $60>000 per ~n~t ur~der HOME,
-$40,aQ0 ~er un~t under the P~co Nei~hborhaod Trust Fund
Staff propases ta adopt for all fiunds the C~ty's existi~tg Multifamily Earthquake
Repair Loan Program (MERL) Program lirnits of $80,aoo to ~~ao,000 per unit for
acquisition and rehabilitatEOn pro~ects, depending on the numberaf bedrooms, and,
for new canstruction, staff praposes that per unit subsidy limits of $90,OOQ ta
$110,Q00 be adopt~d At the dGSCre#ion af the City Manager, per unit ~aan amounts
cauld be ~ncreased by up to 20°/o fior specific pra~ects
(b) lncrease tf~e thresho~d loan amaunt for whrch C~ty Councd approva! rs
required
Currently, the gu~delines {sorne of wh~ch were first established in 1989) pro~ide that
Gity Cou~c~l must approve loans in the amounts of $2 m~ilion or greater The
proposed Gu~delmes would ra~se the threshold loan amount requinng City Counc~l
approval to $2,50~,D00, and, at the discretion of the City Manager, thES amount
could be increased by an addEt~onal 20°/0
(c) Rev~se maxlmum develDperfee prov~sions.
Exis~ing guidelines pro~~de for payment of a de~eloper fee not to exceed 3% of the
total developmenf cost of the pro~ect Th~s fee is significantfy lower than the 15°~0
4
fee currently allowed by the California Tax Credit Allocation Gommittee, and lower
than the fee allowed by rnany investors and other lacalities, mcl-~dmg #he City of Las
Angeles This fee is generally madequate to campensate developers for the nsk
and staff fime required to de~elap complex affart~able housing pro~ects En the
current market New fee scherfules are prop~sed for acquis~tranlr~habrirtation and
~ew constructEOr~ protects
(d} Permrt permanent relocafron.
Current program guidelines generally do nat alfow permanent mvoluntary re~acafian
af residents The new G~~delines permit permanent involuntary reioca#ion, but
contam provisions to d~scourage it WF~Ere permanent relocat~on of a household is
deemed necessary and appropriate - such as in the case of o~ercrowding - all
appficable state, federal, and local relacat~vn req~irements would be met
(e) Revrse provrsions for deferral of laan payments.
The deferra! af payments on loans vary by fund for periads of 5 to 35 years The
proposeci Guidelines would adopt a uniform pravis~on aflawing deferraf of loan pay-
ments for up to #wa years, and for three years at the drscretron of the City Manager
(f~ Revise pro~~s~ons for paymer~t from residual rece~pts
Current program guidelines provide for loan repaym~ntfrom residual receipts wh~ch
are defined as the grass receipts fram the pro~ect less actual costs of operation,
~
(i) For acqu~srt~on and reha,b~lrtat~on proJects, revlse a~fordabillty requlrements,
esta6lrsh one #rme ~ncome exemptfart. arrd adopt counc~J resolufron
For acquksitior~ and rehabilitation pro~ects, the r~ew Gu~deljnes establ~sh a
requirement that at the tEme of acquisition 51 % of the tenants m~st be low income
(unless waived by the City Manager) A higfi~er threshoid percentage of low jncome
tenan#s a# the time of acquisit~on ~s impract~cak because it I~mits the selectian of
properties
Staff proposes, further, that funds from the TORCA Hous~ng Trust Fund, the
Redevelopment Housing Trust Fund, and Citywide Housing Trust Fund may be
used to ass~st units curren#ly occupied by households that are no# income elig~ble,
with the provision that these units be rented to income etig~ble households upan
~acancy This wifi pro~ic~e flexibifity esser~tial to the acquisit:on and reF~abilitation
program Passa~e of t~e a~tac~ed Resolu#~on {Attachmen# G} ~s req~~red to
document C~ty autt~arization ta use Redevekopment Trust Funds forth~s purpose per
Section 33334 16 of Califorr~~a Reclevelopment Law A resolution is not required for
TORCA and Citywide Funds
{j} Revise compefrfrve selection criterra
The G~idel~nes pro~tde reu~sed cr~ter~a for select~or~ amor~g com~et~ng appl~cat~ons
They emphasize the selection of pro~ects fhat serve the homeless, large families,
the disabled and seniors, are lacated m areas underserved by affordable housing
7
de~elqpmenfs, address needs idenfified in #F~e Housing Element, provide greater
afFordability, anci maximize the leverage of City funds
~k) Permit acquis~tion alone
Current program g~rdel~nes generally ~rov~de ~oracqws~t~on only ~f the pro~ectscope
mc#udes a mmimum amount of reha~jijtatEan work This precludes tf~e acquisit~on
of well mainta~ned, favorably pnced buildings that can serve households on an
~mmediate bas~s Gi~en the grow+ng demand far affordable units, the praposed
Guidelmes delete the rehabilitation requirement in ord~rto facilitate acquisition and
preservation of ex~st~ng haus~ng
(I) Renaming and re~isEng the earnest money fund as the workinq capital loan
fund
These changes are proposed for clarEfication purposes Under the exist+ng
gu~del~nes, CHARP funds could prov~de for earfy costs far secur~ng s~te contro! and
~xpenses reiated to feasibiiity studies pnor to appro~ai of a sEte-spec~fic
predeWelopment loan or other foan from the CEty Th~s purpose is consistent with
the conce~t of working capjtal funding Therefore, a new name is proposed to
clarify the purpose of the fundmg source
In addit~nn to fundmg from the Redeveiopment Hvusmg Trust Fund (former~y
CHARP) for wo~king capital loans, the proposed Gu~delines w~fl allow funding from
the TORCA Housing Trust Fund and CDBG HousEng Trust Fund
8
Redesignatlon of the existing Pico Neighborhoad 7rust Fund as the CDBG Housing
Trust Fund. A portion of the Community De~elo~ment Block Grar~t funds are budgeted
ancf des~gnated for housing de~elopment u~der the P~ca Neighborhood Trust Fund
Current guidef~nes require that pro~ects drawing from this f~and be located withEn the
boundar~es af t1~e P~co neighborhood Adoption of the propased GUidel~nes wauld allaw
the deveiopment of CDBG eiig~bie pro~ects c~tywide to b~tter integrat~ affardable unifs m
the community
Rer~aming the Citywide Housi~g Acqwsition and Rehabilitation Program (CHARP)
as the Redevelapment Ho~sing Trust Fur~d. Tnis cnange ~s pro~ased for clarifcat~or~
purposes Under fhe existing gu~delines. CHARP funds may be used for new constructton
as weil as acquis~tran and rehabifitat~on the current program name implies that n~w
construction is not permitted The pro~osed new name ~liminat~s that confus~on
FINANCIAL/BU[]GETARY IMPACTS
Ap~rova! of the new Consolidated Rental Housing Trust Fund Gu~deiines does r~ot ha~e
a finanaal ar budgetary impact
RECOMMENDATIONS
It cs recommended that th~ C~ty Caunc~l 1) apprave the attachecf Cansolidated RentaE
Housing Trust Fund Guidelmes (AttachmentA), 2) adapt Gwdefines govemmg ~he TORCA
9
Hflus~ng Tr~st Fund, and 3} ad~~t a Resolution that provides fo~ a one t~me ~ncome
exemption for units assisted with Recfevelopmer~t Housing Trust Funds (Attachment C}
Prepared by Jeff Mathieu, Director, Resource Management Department
Ro~ert T Moncr~ef, Hvusing and Redevelopment Manager
Eilen Alderman Comis, Sen~or Admm~strati~e A~alyst
Attachment A Cansolidafed Rental Housir~g Trust Fund Guidelines
Attachment B Summary of Current Trust F~and G~fdelines
Attachment C Resolution Affirming the lntent to Use Redevelopment Hous~ng Trust
Fund Property for Affordabfe Housing
10
aTTAGHMENTA
Consolidated Rental Hous~ng Trust Fund Gu~defines
City of Santa Monica
Housing Divis~on
Consolidated Rental Housing Trust Fund Guidelines
Cansolidated Rental Housing Trnst Fund Guidelines
F'diOGS1nG SHAR~~I[•~FILES'~GL"[DEE.IV'TF Gmdehnes 1998 wae \a~'emU.r ~0. L99'~
SUMMARY OF CONSOLIDATED RENTAL HOUSING TRUST FUND GUIDELINES
C~tvw~de Hous~ng Rede~~elopment FIpus~ng HO1~fE CDBG TOACA
Trust Fund Trust Fund Trust Fund Aous~ng Trust Fund Hous~ng
Trust Fund
Pnmarw In-lizu Yees, de<<zl Rede~elopment Ta~ lncrzmznt HOti~SE Pro~am CDBG TORC~a
fund~ng snurce asreements. Ofc funds cqm~ersion [a~
1.~liugation fezs
Eligible Nonprotits. lim~red \onprotit; for profits. and T~ongrafiu for protiU ~ l~nnprofits and i~m~tzd partnersh~ps ~;•rzh
Borro+i~ers partnership «°rth l~mrted partnershtps ~c°ith l~m~ted partner;hipa \~ia~ nonprofit ecneral partner
n~~nprofii genera] nonprofit Qenzral partner nat be pror~ded to
partner pnmazil~ rzlia~ous
orQan~zarn~ns
Rental housme, ~ or morz units. SRO housme, eroup homes ~equis~t~~~n and rehab~htation prolzcts u ith ai least ~ 1° o af thz units occup~ed b~=
~lig~ble tenants rrhose mcomzs do net e~ceed SO'!`o of ined~an inc~ me. e~~ept n•hzn «a~red Ne~F construct~un «ith ztceptions
ProJects
IY Ordmance 151 ~ or ti3ilzd usz if res~dennal
1918 funds. onl~ nzn area equals ~ 1°ro ~r more
construcuon and uT spas.e
a~~eratrz 2 bedroorr~
Eligible L"ses R~-ntal housme de~21 land lzase~purchase, acq ~ rehab. ne~; constru~tian Sae acquismon ~ prep . ne~c° con~iru~iion ~ reltab. cazr}mg fees
8c :.l~ar~es. ar~h~tz~ture. l:~al oraanizdvonal_ relo.anon Przdz~elopment loans_ bnd~e loans ~t~orkmg Capital for C~iti~~e~de, CDBG
TORCA and Rede~ zlopment 1f Grdmancz 161 ~~ 1913 tunds, nen cansiru~tion unlt i ar erage 2 hzdroom~]
Ineli~~b9e I ses Prelimmaz~° Yeas~bilit~• studies_ oreanizatiunal operatmg Res~r~es_ tmpact Yces. Kzn' construction unl~ss b~°
e~pznses Housing a~qu~s~tion and rehab~lrtanon if opzratms subsid~es. lar~d CBDO, rental ass~stance
Ordmance 161 ~~ i918 funds bank~~e. temporar~ ~hel- pa~'men~
tzrs_ rental ass~stance.
commercial propert~es
Loan Term De~~eIopm2nt loans ~~~°ears. ~ci~h a 2~ ~•ear eXtenswn poss~blz
Interest Rate Freddie It4ae 3tate for 36 }~r loans. mac bz loc~•er for tar cred~t pro~z~ts, Hl1- 20?~$ L f, or ahtn requ~rzd to meet ather lender~ subs~dc~ la~ ermg
euidelEnes
Pa~°ments \~tav be defened for up to 2} r~ 3 ~ rs ~i•ith Gt~~ \fanaeer wantr
hla~~mum \es~~ canstruct~an O l~ 1 bzd $90,OOU. 2 bed $100.OG0. ~ hed SllUAbG
Loas~s Rehab 0& i bed 380.U60. ? 6~d ~9f1,Ot]G, 3 bed SI~O.G(f0
~Lnimum Laan $I,OUO~umi
Affordab~L#~~ ~111 ass~sted umts must All ass~stzd umv shal] be l00°•u et a~sistzd um[s Fur nztti~ con~vuet~on. a[ ieast ~ll assuizd
Iieqmrement> be affordable to af~ordable to houszholds whose nw~t be occupied bc ?0° o of the umt~ in the pro- un~t~ shall be
households cti•hose mcomes do not z~ceed LOG°'o oF houszhold~ whose ~e~t must be affordable to affordable to
inmmzs do not exceed med~an income Ne~s €ncemes do not z~ceed households ~i~hose mcomes housefiol~
60°0 ofined~an construction um~ shall bz SO°a of ined~an m~amz. do not ecceed $0°~0 of ined~an ~~~hosz mcomes
inwme affo~dable to huu>eholds cshosz 90°~ not m ercess oY 60°-o mcomz Rents for all do not etceed
incomes d~, not e~ceed 30° o oi oi mediare, and ?V~a no[ in assisted uniU should 6e 80° o of ined~an
median mc~~me etices~ of ~G° o oT mzdian affordablz to households mcome
~iho~e iucomz; do not ecceed
8n~o efm.dian ~n~ome
Rent .iO~o ot applieablz = D°~o of applicablz mceme 20~b .~~ ~0°io oI me3ian 3u°-~o ot a~pliea6lz m:ome
restnct~ons income m~omz. 411°o at 6~°0,
I~G°~c aL g~°jo
Pre~•aihng stia~e C~n cude pror~des that State prernd~ng ~ti~a~e requ3rement~ are appl~cable to rehab prolects of z~ther 20 un~is or morz. or $2?0_G60
and ~.abor constract~on contract, a; adlustzd for mflat~on ~pplicablz [o ne~;• canstruc[~on pr~tec[s af zrther ?D un~ts or mnre or constructtan cost ot
reguirernents 51 OUO 000. a~ adlustzd
Dai•~s Bacon ~5 appltcable Dav~s Bacan ~5 applicable for
for pm~~ct~ scliere I2 uFicCS pra~2ets afS un~es or marz
or mare are ass~sted with
H01:SE funds
1 ore For complere d~ra¢ls ubout the rt~formairon cnntain2d on rhas summan~ clrzel. p/ease r?ter to thz approprrafe section of thzsz ~iuadelrrres
Conso~idated Rental Housing Trust Fund Guidelines
F HO[JSi\G SH~RE'•~~`PFILES'G[IIDELIh~TF Gmdel~nes 1998 ~tpd Vaz°ember ~J, 1998
TABLE OF COl~ TEn TS
I. INTR4DUCTIO\
II. T~C'PES OF LOANS
III. LOA\ TER~ZS
I~'. APPLICATION SLB~IITTAL A~D REi~'IE~~' PROCED~TRES
Applzcation Subm~ttal
Application Re~'ie~;~
Competrtiti~e Selectzon Crrteria
ti. LOAN CONZhTIT1~iENT AND CLOSI\iG PROCEDLTRES
Loan Commitment
Laan Closrng
VI. PROJECT MOTITORI\G AND REPORTING
VII. FUNDII~G SOURCES .
HOME Trust Fund
CDBG Housing Trust Fund
Citvti~~ide Housing Trust Fund
Rede~~elopment H~using Trust Fund (formerl~~ CH:4RP)
TORC~ Housmg 1"rust Fund
~'III. EXHIBITS
E~hibit ~1 Defimtions
Exhibit B HOME Pragram Subsid~~ Limi~s
Exhibit C Rental Housing Loan :~ppficatton
Exhibit D Checklist far Loan Closing
Consvlldated Rental Ho~sing 'Trust Fund G~edelines
F .HOi:S;VG'~HaRE'~~l`P=1LES~GUIDELI\~TFGuidzho~~ 1)98upd
~
5
S
8
8
13
14
14
i~
1~
17
17
21
2~
26
29
31
1`c~e~nbzr ~i1 1995
I. INTRODUCTION
The Cit~~ of Santa Moruca and the Redevelopment Agenc~~ of the Crt~- of Santa 1lomca pro~~ide
financial ass~stance ta support the acquisition, rehab~litatian, and ne~~~ construcuon of proper~ies ta
presen-e and increase affordable rental housmg opportumties for lot~er-income households through
the follo~~~ng Programs
• HOI~TE Trust Fund (HTF}
• CDBG HousmQ Trust Fund (GDBCrHTF). formerl~~ knotiti~s as the Pica Neighborhood
Housfng Tr~st Funr~
~ Crty«~ide Hausing Trust Fund (CHTF}
• Redeti-elopment Housing Trust Fund (RHTF}, for~nerly~ knov~~n as CHARP
• TORCA Housing Trust Fund (THTF)
Under these Programs, the Cin~ pror•ides lo« interest or deferred pa~~ment loans to bndge the
financial gap ben~~een available resources - includm~ the borrow•er's equrt~~ and pri~°ate financmg -
and the cnsts of developing affordable multi-fam~h~ hous~ng The purpose of rhe Consol~dated
Rental Housin~ Trust Fund Guidehnes ("'Guidelines"1 is to pro~~ide an over~-ieE~~ of the ti~pes and
terms of loans ~~~luch are a~°atlable, application require~nents, re~~ie~~~ procedures, seiection cnteria.
loan commrtment and closing procedures. and prorect monitoring and reporting requzrements of
these 1-aried Programs ~.~zthin one comprehensiti-e source of reference These requirements are
minimum req~.urements for participation in Cit~~ Programs and are sub~ect to change at an}- time
Meetin~ these requirements is not a~uarantee of participation in anj~ Pro~rarn The Citv resen~es
the rieht to rec~u~re addit~onal Rualificat~ons for in~t~i-idual pro~ects The C~n~ reserz~es the right to
re~ect an~- and all applications and ta accept applications «~hich m rts }udgment best ser~~e the
interests of ~he Cit~T On a ease b~~ case basis, Cm~ Council ma~- also modif~~ or ~~-aive pro~-isions
of these ~uidelines
These guidelines should be interpreted in con~unction wrth Federal. State. and Cin- statutes and
reguiations go~~erning use of ~iese funds. in the eti-ent of a conflict bet~~~een these Guidelines and
such statutes and re~ulations. the requirements of those statutes and re~ulations shall prevail
These Prograrns are admimstered by~ the Housin~ and Rede~ elopment Di~-ision of the Crt~~ of Santa
Nlonica {under the direct super~~ision of the Housmg and Rede~-elopment Nlanager, the direction of
the Director of Resource 1~lanagement, and the aeneral supen~isioii of the Crt~-1•1ana~er'~~ecutit-e
D~rector of Redeti~elopment) fln behalf of the Cit~- of Santa ~iomca. and, ~;~hen Rede~~elopment
Hauszng Trust Funds are used, the Rede~~elopment agenc}~ of the Cit~~ of Santa l~Zomca
In addrtion to these Programs. the Cit~~ of Santa ~~ioiuca has other pro~rams tii-hich can be used to
provide hausmg assistance Those programs include the TORCA Shared _~ppreciation Loan
Program, ~i~hich pro~~des assistance to lo«- and rnaderate income households co purchase
condominiums, and the Section 8 Rental ~ssistance Program, «~hich provides rental assistance to
lo~~~ incorne tenants The Consohdated Housmg Trust Fund Guidelmes do not cover these programs
ConsQlidated Rental Housing Trust Fund Guidelines Page 1
F'HOLSR~G SH~~~FPFILES GL'IDELEV'~IF Gmdeiine_ 1995 ~a~d ~a~~ettyber 3{1. 1998
II. TYPES OF LOANS
Predevelopment Loans
Predel-elopment Ioans ma<< be made to private, nonprofit corporations with praven capacit~~ ta
develop. o~~~n and aperate housing. and that ha~-e a~ alid ~O1(c)(3) or (~) designatian from the IRS
Funds ma~- be used for pre-de~'elopment expenses for pro~ects for ti~~hich there zs sit~ control and
~i-hich hat~e recei}-ed a prel~minar}~ fund2ng commrtment from the CitS-lAgene~- Expenses sl~a~l be
l~mrted to services that cannot be obtazned on a contingenc~~ basis and ma~- mclude (but are not
limrted to) architectural and engineerin~ fees_ trtle reports, le~al and organizatioz~al fees_ mort~age
application fees. en~-ironmental anal~~ sis. and perm~ts and fees for public agencies Pre-de~=elopment
funds ma~• also be used for purchase options or deposits far the purchase of buildings or land to be
rehabilitated or de~eloped ~r,zth assistance from the Program, or purchase aptions or deposits on
properties that «xll not receive fiarther subsidies under the Frogram, ~ut tha~ ti~zll be used for housint
pra~ects that meet the same requirements Such funds ma}~ be prat-~ded as part of a prede~°elopment
laan ar through a separate contract ~;:ith a nonprofit corporation as discussed below Predevelopment
loans may also be made to a nonprofit corporatian for the purpose of acquiring real propert~c~ for
future affordable housing de~•elopment. including but not limited to j~ acant propert}-, and praperties
~i~ith existing residential impror°ements ~zith rents v4~hich are substantiall~~ belo«~ mar~et
Preliminan- market or feasibilrt~- studies, or orgamzational operanng e~penses are not el~Qible
expenses under the Cin~~~~ide Hous~n~ Trust Fund
These predet~eloprnent funds shall be disbursed to an eli~ible borro~`er at the time of the Cit~~'s
preltmin~• approE•a~ of a specif c prolect T~e amount of predeE-elapment ~nds disbursed to each
pro~ect shall be included in the calculation of the m~xunurr~ loan from a Program txnd shall be
considered as part of the pru~cipal
Developmeni Lvans
Program funds ma;r be used for deZ~elopment laans for the follo~~7n~ eliQible purposes
(1) The purchase of e~isting mulufamzl~ buiidings for rent to lo«~ and moderate income
households and for the de~-elapment of group hames for rent to lo~~~ and moderate
income persons ~z-ith speczai needs Except for group homes. e~isting buildings shall
consist of four or more umts, unless the CitF~ I1~tanager~'Eaecutive Director finds that a
substantial publxe benefit ~~~ill be pro`~ided ~~- a pro~ect consisting of less than 4 uziits
(2) The purc~iase or lease nf land and'or build~ngs for ne~l- construction or rehabilitation of
housrng t~-picall~~ ~n tandem ~~~th at-ailable State and Federal housing ass~star~ce
programs such as the Section Z02 Supportive Housinb for the Elderl~~ Program_
tat-exempt bond financmg, Section 811 Supporti~~ e Housing Prograzn. and lo«--mcome
housing ta~Y credits
Consolidated Rental Housing Trust Fund Guidelines Page 2
F HOUS:~G SH~RE 4~PFILES'GC;IDELI[~ IF Guide3mzs 59~8 ~~pd ~;ovzmbzr ~0. 1998
(3) The aeve~opment of ~imtted equin~ housing cooperat~i=es through e~ther cons-erslon or
ne~i~ canstruction
(4) The pro~-ision of interim loan funds for an~' of the abave purposes prior ta the funding
of a private loan Eligibie de~Telapment costs for the above uses include but are not
necessar~l~~ limited to
( A} site acqu~sitian and preparation.
(B) rehabilitation of d«-elling umts, common areas and related structures_
{C) new construction.
{D) carrn-~ng charges and financin~ fees_
(E) archttectural. legal. and organizanonal fees,
(F) temparary ar permanent tenant relocation costs. and
(G) a de~~eloper fee consistent w~th guidelines described in Section I~' belo~~;
{5) Prepa~~ment af certam financmg fees. such as bond issuance fees as necessar~~ to make
fa~-orable financing available
Bridge Loans
Program funds ma~- be used to make "bridQe" loans to eliQible borro«-ers ~~ho are syndicating their
assisted pro~ect's lo~l- income housln~ tax credits ta ~enerate equih~ capital for the pro~ect_ Bridge
~oans shall be made onl~~ for pro~ects «~luch ha~~e recei~~ed permanent funding commrtments from
either the Grt~~ of Santa 11~1onica or the Rede~~elopment A~enc~~ of the Cit~~ of Santa A~omca
Working Capital Loans
Up to fi~~e percent (~%) of the total funds a~~ailable to Housm~ De~~elopment Gorporations (HDCs}
under the CDBG HousinE Trust Fund. the TORCA Housmg Trust Fund and th~ Redel-elopment
Housm~ T'rust ~und ma~~ be ava~lable for ~'orking Gapital L~ar~s. A~~'orking Cap~tal Loan ma}~ be
made to an HDC under contract ~~-~th the Cm~ of Santa n-lomca far the de~=elopment and management
of affordable housing Loan funds shall be held m a separate_ interest-bearing account b~~ the HDC
for use as "~~-orking caprtal" to fund earh- costs for securing site contral and e~penses related to
feasibiht4 studies pnor to appro~~al of a site-specific predevelopment loan or other laan from the
C~n-:'A~enc~-
Loan funds ma~~ be used for reimbursable det~elopment expenses that hat~e recen-ed priar ti~~rrtten
appro<<al from the Housmg and Redel~elopment ~Tanager in the connection ~~~ith the acquisition.
rehabilitation or construction of housin~ unrts tl~at ~i~ill meet the criter~a of lo«.~ or moderate incame
household benefit as established bv the Guidelines Eligible uses include but are not necessaril~=
~imrted to
(1 } Site control costs through deposns ta escro~~~ for purchase of buildings or sites ~~~thm
the C~t}- of Santa Momca, or options to purchase propert~,
Consolidated Rental Housing Trust Fund Guic~elines Page 3
F~i3QU5nU'SHARE'~~~PFILES'GGIbELIi`~TF Gmdzhnes 1943 nFd Vo~~zmber ~0 1995
(2} Non-refundable option pa~-ments, in order to assist the HDC to secure propert~~ in a
competiti~ e real estate market
(3} De~-elopment expenses that cannot be funded on a contmgenc~~ basis, includin~
architectural and engineenng fees, en~-ironmental studies, appraisals and inspection fees The
tatal of such eYpenses shall not exceed S 10,000 per pro~ect
Upon rece~pt of a predevelopment loan, de~~elopment Ioan. or bridge loan for the pro~ect, the HDC
shall promptly reimburse the ~~-%orking Caprtal account for the amount ad~-anced from che fund for
such purpase In the eti~ent that t~e HDC does not rece~ti-e a prede~~elapment 1oan, bridge loan, or
deti-elopment loan for the pro~ect or is ~nable to coinplete the prorect, the Cit~~'Agenc~- ma~.~ forgi~~e
90°% of the total funds e~pended by~ the HDC upon repa}-ment b~~ the HDC of 10% of tl~e amount of
the expenditure
\ o later than thim~ calender da~ s afterthe termination date af the `~'orkin~ Gapital Loan A~reement.
the HDC shall pro~~ide a iull accounting of the amount of funds a~~ailable m the account, including
a11 accrued ~nterest_ and a lrst of proJects. if any. far ~s~hich funds ~ia~~e been used and ha~re not been
repaid, along ~~-ith a schedule of pro~ected repa~-ment dates In the e~-ent the ~~'orking Capital Loan
Agreement ~s ~ot rene«~ed, these funds shail be returned to the Gin-
Consoliaated Rental Housing Trust Fund Guide~ines Page ~
F HOtiST[~G'SH~RE~~PFQ.E~GUIDELN'TFGuidzEmr~ 1998npd To~'zm6zr~G_ 1998
Irr. LOAN TERMS
Term
Permanzn2 loans shall be due and pa~~able in fift}~-fi~'e (~a) ~~ears subject to the terms of the
apphcabte Regula#o~- Agreement or recorded Co~-enants ~~'~ere necessar~~ in order to meet the
requirexnents for other pro~ect funding, the Housin~ and Rede~~elopment ~4ana~er ma~~ approve a
shoner loan term Ho«-e~~er. in no case shall a Re~ulaton' A~reement or recorded Govenant remain
in effect for fe~~~er than >j ~~ears v v
Interest Rnte
The interest rate shall be set at either
(1} the rate establlshed b~- the Federal Home Loan I~Iort~age Corporauon for the average
con~~en~ional commitment of a fixed rate. thirt~--vear (30} mortgage, and shall be
compounded annuall~~, ar
(2j ti~°hen necessar~~ to sec~ue ~n~~estor equit~, interest rates of affordable housing pro~ects that
inciude tax cr~dits or con~~entional lenders. at 3% simple mterest, or
(3) ~~°hen the Git~-/Agenc~~ loan is in a second posrtion to a first trust deed capital adti•ance/loan
made under the U S De~artment of Housin~ and Urban Development (HUD} Section 202
or Section 811 ~rograms_ the interest rate shall not ehceed the highest permissible rate on the
applicable HUD Section 242 ar Section S 11 Pro~ram mortgages, under authorit}' of Chapter
2~ of the Gade of Federal Regulations (CFR). Subpart SS~ ~10(~). or
{4) ~;°hen required in order to meet federai subsid~- la~c-ering guidelines. at the Applicable Federal
Rate {that rate established bS° the In~ernal Reti~enue Sen-ice pursuant to Section i274(dj{1)
ofthe Internal Re`~enue Code}
The CrtF~ ~~anager/Executi~-e Director ma~~ «°ai~~e or reduce the interest rate as needed to ensure the
feasrbilitti- of pro~ects
Payments
Pa~°ments on permanent loans shall he made as follo~i~s
(1) Pa~-ments of pnncipal and interest rraa;~ be deferred for up to t«~o {2) ~-ears from the date of
e~ecuuon of the loan_ and up ta three (~ j~-eaz's from the date of execution of the loan «-~th
appro~-a1 of the Cin~ Manager or Eaecutn-e Director of the Rede~-elopment Agency of the
Crt~- of Santa Monica After the e~piration of the deferral pzriod, payments of principal and
interest shall be rnade annuall~- ~n an amount equal ta ~0°.'0 of pra~ect Resadual Receipts, if
any. as appro~°ed b~- the Cit~~!~~enc~~ Pa~~ments shall be applied first to accrued interest, and
then to pnncipal
Consolidated Rental Housing Trust Fund Guidelines Page 5
F HOiJSI~G~5H4ItE'wPFILE5GL7DELIT~TF Gwdehnzs ;978 ~ti;,d Vo~embzr 30. 3998
(2) The Borroti~-er ma~- elect to prepa~~ the loan pnor to the end of the term Hoi~°e~~er, the
ReQulator~~ Aareement or recarded Go~~enants shall rematn in full force and effect for its term
regardless of an~~ prepa~~ment
(~) If the Borro«~er violates the terms of the Regulatort~ Agreement or recorded Covenants such
that the Crt~-!Agenc~~ declares the loan in default, the entire amdunt of unpaid principal plus
accrued interest at the rate establzshed at the time of closin~ sllall be due
(~) Unless paid m full earlier, the rema~nmg prulcipal balance of the loan and accrued interest
shall be due and pa~-able at the end of the tern~ of the Promissor~' Note ~'-'here necessart~~ to
meet requtrements of third pam~ ~n~~estors and ~~zth appro~~al of the Cit~~ :~lanager'Executrne
Darector. the Cit~~ ma~- alla«~ the remaming principal and accrued but unpaid interest to be
pa~°able onl~~ to the extent that the fair inarket ~~alue af the Pro~ect elceeds the princ~pal
balance of the existma indebtedness secured b~- the propert~-
(~) Upon reques# b~~ the bono~i-er, and upon determinauon b~- the City~,'~genc~- that the borro~~~er
is in full compliance ~.~~zth the terms and conditions o:f the Reguiaton~ Agreement or recorded
Cot-enants, the Cin~~'Agenc~- ma}~ e~tend the term of the existm~ Regulatory Agreement or
recorded Ca~~ enants for a mirum~m period of h~~entt'-fi~=e (2~) years ("Extension Period")
If borro;t~er fi.i11~- comp~ies ~ti~th a11 terms an~ cona~tions of the loan c~ur~ng tne EYtension
Penod then an<< rexnaining pnncipal and accrued but unpaid mterest sha11 be forgii-en at the
end of the Ettension Per~od
Securitv
The loan shall be secured as follovu~s
{1) The loan shall be secured b}~ a Deed of Trust and Promissor~~ Note ~~~hich ma~~ be
subordinated to Deeds of Trust securmg other Federal, State, Cit~~ loans, or loans from
con~~ entior~al financin~ institutians used ~n con~unction ~~ rth the Trust Fund loan on the same
property~ The CrtF~/Agenci- must approi-e ali requests for subordination
{2) The loan shall be further secured b}~ a Regulator}- Agreement or recorded CotTenants ta assure
that Pro~ram funds are used to pro~zde long-term affordable rentai housing apportunities far
lo«• and moderate income households The Borra~j~er and the Cit~~~ Age~ci- shall execute the
Reeulator~~ ~greement or recorded Co~°enants re~ulating pro~ect rents, tenant selection
procedures, us~ of pra~ect income. management and maiiitenance, transfer of propert~~. and
permitted forms of o~~,nership and use T'he Regulatory ~,greement or recorded Covenants
shali be recorded ~~-ith the Deed of Trust
Consolidated Rental Housing Trast Fu~d Guidelines Page 6
F~.HOiTST\G SH~RE•«PFILES`Gl"IDELII~~TF Gwdelmzs 1798 ~rp1 Vo~~zmbzr 3~3. 1998
Maxinium loan anzount
E~cept as appro~°ed b}- zhe Cit~~ 1lrianager.~~ecuti~-e Director or as restricted b~~ State or FederaI Ia~~~.
Che ma~im~m Trust Fund Loan per umt shall not ehceed the follo«mg
l~ eu~ Construction ?~cquisrtzon and
Rehabilitation
Zero and 1 Bedroom tinits $90.000 $$D.000
2 Bedroom L~mts S 100.000 $90,OQ0
3 Bedrao~ns ar l~iore $110_040 S 100.000
Actual loan am.ounts ~~711 be based fln the pro~ect's need and the le~~el of affordabilin~ that ~s
proti-ided At the discret~on of the Grtti~ Manager/E~ecutive Director, per unit loan amounts and
maaimum per pro~ect loan amount of ~2,500.000 ma~- be increased b~~ up to 20% PrograFn loans
in excess of maximum amounts must be approt~ed b~~ Citv Counc~l
Consolidated Rental Hnusing Trust Fund Guidelines Page 7
E~:OC~17~G' ~Hr1RE~1G7'F1LE5'GtiIDELIV'~TF Gmdehnes 1993 upd '~o~ember 3Q 1948
IV. APPLICATION SUBMITTAL AND REVIEW PROCEDURES
Applicution Submitt~rl
All applicatcons for Program funds shall be submitted to Housmg and Redevelopment Di~~isXOn and
shall be re~~ie~~-ed and appro~~ed throuah an adm~nistrati~~e re~~ie« process as established in these
Guidelines y
The Applicant shall camplete and submit to the Housing and Redeti~elopment Di~~ision the
Applicanon for Program Funds and prepare all required attachments. including the management
plan, te~~.ant se~ection and market~n~ plan_ rzlocation plan if necessar}~, signed purchase a~reement
arid escra~i instructions, prellmznary title report. and limrted partnership documents. if necessary,
at least siltti• (6~) da}~s prior to the scheduled close af escro~z° Applications ma~- be submitted at any
t~zne durin~ the program ti~ ear and i~711 be considered in the order submltted to the Housing and
Rede~~elopment Di~-~sion
Application Review
The Housmg and Redeti-elopment Division staff shall revie~~~ the applicatian to
(1) determine that the mirumum Pragram requ~rements are met.
(2 j ensure that the eshmated de~-elapment costs are reasonable and in conformance «~rth the
Cin~'s unden~~rrting guidelines and
{; ) ret~ie~~~ the estimated mortgage amount and Borroti; er equrtt contribution in accordance
«-~th the C~n°'s under«,-rrting guidelines and the requirements ofthe proposed source of
Cit~~/A~enc~- fundmg
~~'ithin siYt~ {60) da~'s of the submissian of the applicahon, the Housing and Rede~~elopment
Dit~ision shall deternune ~.~~hether the proposal is appro~~able for cammitment, «~ith or ~.i~ithout
condrtions If the Cm~ detenmines, in its discretion. that the application is complete and meets all
! of the Program criter;a. thz Cit~• mat~ issue a commitment letter If the application has deficiencies.
the Crt~~ :~Aaenc~~ staff «~11 identifi- the problem areas and notif~~ the Applicant
Design Rer•iew
Applicants proposing ne~~~ construction ar change of use of pro~ects, including the ma~~mg on of
buildings to ~~acant srtes, ~~-i11 be responsible for noufv ing the neighbors af the proposed pro~ ect plans
for the srte a# the time the pro~ect ~s subm~tted to the .~rchitectural Rev~ei~ Board {ARB~ for
apprat~al Applicants «~ll in~~ite neighbors to rerie~~- the pro~ect design and co~unent on the plans
at the ARB meetmg The Applicant «,~ill notif~- the neiahbors at least se~~en (7} da,~s prior to the
ARB meetin~ at «~luch the pro~ect is scheduled ~a be re~~ie~i-ed
Consolidatec~ Renta~ Housing T~-ust Fund GUideli~es Page 8
k- ~.HOtiS1tIG SH~ItE ~lTFILES~GGIDELI~:~TF Guidelmes 1998 u~pd Vo4etttber a0, 1998
Staff shall reviei~- the design of the proposed pro~ect for appropriateness for the proposed target
group_ compatibilit~~ ~i'lth surrounding uses. cost effecti~-eness of construction. and appropnatenes5
of pra~osed matenals for lo«~ mamtenance and lang ter~n durabihn- •
Determination vf Reasonable Costs and Financial Feasibilih-
Housing and Redevelopment Di~~ision sta~f shall rel~ie«~ the ~~pplicant's estimates and pro~ections
of rents, e~penses, resen-~s and derelopment costs in accordance ~;~ith the Cit~~'s under~.~ntinQ
guidelines The applicant shall pro~~ide back6round documentation an alI costs as requested b~~ the
Cit~~'~geneS- The Crt~='Aaenc~~ mai- ad3ust cost and e~pense amounts as appropriate to conform to
current market and industry standards The total amount of the Program Ioan and aIl pri~-ate Ioans
shall not exceed the total de~~elopment costs approti~ed b~~ the CrtE-r'Agenc}~
The m~~imum allo~;'able purchase pnce shall nat e~:ceed the apprarsed ~~alue as eti~idenced b} an
appraisal prepared by a California State Gertified General ~~ppraiser and appro~-ed b~~ the Housing
and Rede~-elopment Division. ti~-hich is dated nat mor~ than si~ {6) months prior to the date af the
applacation The appraisal ma~~ not determine propert~- ~-alue based solely on sales of praperties
financed b~~ pubhc agenc~es
For ne1~° construction pro~ects. the dej~eloper fee shall not e~:ceed the lesser of 514.000 per umt, or
6-9% of the depreczable basis of the pro~ ect {not includ~n~ the deti-eloper fee), dependmg on the size
of the pro~ect, as follo«~s
Far 1- 20 unrts 9°/a
For 21 - 30 uruts 8° o
For ~ I- 50 un~ts 7° o
For ~ 1 or more units 6°%
For acquisrtion and rehabilrtation pro~ects up to and mcludin~ 7 umts, the de~-elaper fee ~enerallti~
shall not e~ceed $7.840 per unit For acqu~srtion and rehabilrtation pro~ects of greater than 7 units.
the developer fee shall not exceed the greater of $~5.000 per pro~ect ar the sum of 5% of the
de~rec~ab~e acquisition basis and 1~% of the rehabilrtation basrs At the c~rseretion vf the Git~~
I1~lanag~riExeeuti~~e Director a higher fee may be allati~ed
The de~~eloprnent fee for ne« construction pro~ects «~ill be released in three sta~es (1} one-third
~pon receipt of the necessar~~ building permrts, (2) ane-third upon issuance of the certificate of
occupanc~~ . and (3) one-third upan the later of permanent loan closing or full lease-up of the pro~ect
For pro~ects in~-ol~~ing acquisrtian and rehabilitation, the de~ elopment fee ma~~ be released in t«~o
sta~es (~) t~~-entt~-~i~~e ~ercent at the t7n~e ~f ~ssuance of the hui ]c~tng perri~~#, ana {2) 7~% at the t~me
of con~~zrsion of interim financin~ to permanEnt financmg, or full lease-up of the pro~ect. ~ihichever
is later «~here thz pro~ect does no# utilize interim financing or in~~ol~~es acqiusition on1~~, the
schedule for release of the de~~eloper fee «~ill be revie«~ed on a case bt- case basis Changes to the
abo~=e schedules for the release of fees may be appro`~ed by the Housing and Rede~~elaprnent
~1ana~er
Conso~i~ated Rental Housireg Trust Fund Guide~~nes Page 9
F~HOL1SItCG SHaRE~I~'PFILES Gl[D~LI]ti'~Ti Gwdehnz~ 1993 upd '~oc'e[t16e1' ~d. 1498
The maxamum affordable mortga~e a~nount shall be calculated usmg the rent schedule proposed b~-
the Appl~cant as appro~~ed b~~ the Cit~-`Agenc<<, the proposed interest rate and terms of the pnmar~~
laan(s j, and reasar~able operatuig allo~~~atzces and resei-~~ es in~iuding a reser~-e to amortrze a mortgage
as needed
The requested Cit~,~'Agenc~ loan for a pra~ect shall not exceed the total amount of the gap beti~,~een
#he nr~a~imum affordable mortgage amount a~~ailable fram non-Cit~- sources plus funds at~aiiable
from other sources of publxc subsid~~. and the total de~elapment costs plus an~~ on-goin~ annuit~~
necessan- to mamtain affordable rent let~els as detined in the Pro~am application The ma,~mium
Cit~•~'~~erlc~r loan shall not exceed the maxrmirm per unit limits descrrbed m these Guide~riies
All ass~sted umts must mamtam rents that do not exceed the Nlaximum Affardable Rent. as defined
in these Guidelines. far the life of the loan in accordance «~th the term.s of the loan or ather recorded
Gavenants S~-ndicated pro~ects must be structured such that o~~~nershlp can feasibly be acqi.ured b~~
#he nonprofit General Partner at the end of the term of the l~m~ted partnership a~reement, ~i-hen
appropnate ~~~hen deterznmmg the riia.~imum Cit~~!Agenci~ loan_ Housmg and Rede~~elopment
D~E-~sron staff i~~111 scrutinize tne rent scheauIe and annual cash ~oz~~-s zn order to aetermine z~~~ether
long-term affordability is maintained In cases ~~-here a rent subsidt- pro~ram is utiltzed and the
rnartgage is calculated on the basis of the subsidized rents. an "affordab~lin~ resen~e" ma~~ be
required, u~here the amount of the reserl~e shall be sufticient to cot~er the difference beti~~een
affordable rents and the subsidized rents
Clear Title
The ~pplicant sha~1 hati-e the respanslbili~~ to obtam c~ear title #o the propert~~• As soon as feasible,
the Applicant ~~~ill submrt a prelimmary title report for Git~-~`Agenc~~ re~-ie~~; and ur~tten approval
Staff shall rev~e«~ the state of trtle, including the condrtions, co<<enants, resmctions and legal
description of the propert~- and the rent control registration and remo~'al permit issues The ~pplicant
shall correct the state of title and remoj-e all e~.ceptzons to the title not consented to b~~ tlae
City'Ageney~ before the Cin.+Agenc~~ ~loses the loan
Se~ior Financing
The Applicant shall secwre other resources such as equin~ from s~~ndicatian proceeds. ta~~ e~empt
financinQ, federal and state housing rental and de~~elopment subs~dies and a~~ailable pnvate financmg
to minim~zz the amount ofthe Cit~-.~Agenc~~ loan The applicant ~.~ill submit to ihe Citt~/Agenc~~ for
re~~ieti~~ the terms and conditia~s of all non-Cat~~ financing as ~;~ell as equm~ contributions The
applacant must submrt pro~ected cash flo«~s far the terin of the loan, sho«~ing the ma_~imum possible
increases {i e.1~~orst case scenario) m debt service per ~~ear, the pro~ected rent and expense increases.
the means ofmakin~ up an~- deficrts, and pro~ectea paEments ofReslaua~ Receipts T~e Cit;~/~eenci-
shall anali•ze the feasibility of the pro~ect to cam~ the ioan. and if feasible ~~711 approve the terms of
the non-Cit~~ financing
CQnsalidated Rental Housir~g Trust Fund Gu~idelines P~ge 10
F ri0L-S1t~G5HARE~t[~I'F[LES~GUIDELIV'TF Gmdehnes L99fi wpd no~ember 3Fi_ 1948
The Citt;:Agenc~~ ma~~; at ~ts sole discretion, ea~culate the mortgage amounr at the terms and rates af
a~~ailable f nancing programs other than that proposed bt' the Borro~;~er. if alternati~~e terms and rates
are aj-ailable that «~ouid reduce the amount af Crty~':~genc~~ subsid~~ required, and ti~;~ould othen~~se
confarm to the CitF~/Agenc~~ requirements
Mana~ement and Affirmative Marketing Plan
E~eept in the case ofpro~ects funded under the federal Sectian 202 Support~~'e Hous~tlg Progra~n and
Section 8ll Supportz~-e Housing Progran~. the ~pplicant shall prepare a Pro~ect ~1ana~ement Plan
far the Cih~ ~'A~ency's re~-ie«~ and appra~-a1 The Plan shall describe the Applicant's policies and
procedures concerning
(1) Affirmati~-e marketmg and tenant selection proced~res includmg applicatian
procedures_ priontzzation of Santa n-lonica residents ~~~here possible. «~aitmg lists. and
lease agreements. and marketing efforts and tenant selection procedures that ~i~ill be
used to attract eligible persons from all racial, ethmc and gender ~roups in the housing
market area to the ava~lable housrng.
{Z) Pro~ec~ures for determimn~ tenant eli~ibiht~• aric~ eernf<<ing incames.
(3) ManaQement'tenant relations and assistance to tenant organizations, ;ncluding the
training and use af tenants to perfo~n ma~ntenance and management f~anctians as
appropriate,
(~) Maintenance and repa~r services,
(~) On-s~te mar~agerr~ent facil~ties<
(6) Rent collection,
(7) Records and reparting requirements.
(S) Personnel and staffing,
(9) Compliat~ce «~th all tenant protection la~;~s, includmg rent controi la~; and Buildmg
and Health and Sa#~et~- Codes,
(10) Fee schedule
l~To person shall on the grounds of race, mantal status. sex. color. age, religion. national ongin.
ancestr~-. ph;-sical disability, aID S. or se~ual orientation be excluded from participating in. be demed
the benefits of, or be subjected to discrim~nation under an~- program or acti~~iti- funded in l~~hole ar
in part ti~, ith these funds
Developer CapaciriT
Applicants must demonstrate the capacitt~ to successfull~- de~~elop the proposed pro~ect The
Cit~,-:~genc~~ shall el-aluate capacrty on the basis afthe ~pplicant~s track record in det-eloping and
inanaging affordable hous~ng, or inclusion of ae~-elopment rearr~ members E~~ith a successful record.
in dei~elopin~ such housuig In addrtian. Applican#s must demonstrate the financial and legal
capacin- to undertake the propased pro~ect
En~iroumental Re~iew
Consolidated Rental Housing Trust Fund Guidelines Page 11
F~'OU~~G SH ~RE 1~.PF'ILES'G~IDELIi~ TF Gtudzlu~es 1~+3 ~.F~l Vovember 30 1998
Pro~ect sites must be free from adverse etx~~ironmentai impacts, e~_ no~se, or the proposed pra~ect
must successfull~ mitigate these impacts The Czty!~~enct- shall assess the environmental effects
of each acti~,:in~ proposed to ~e carned out ~~-ith Cit~~fAgencti funding in accordance ti~.~th the
protizsions of the National Environmen#al Poltc~- Act of 1969 {NEPA) and the CalifornFa
En<<ironmental Qualrty Act (CEQA), as applicable The Housmg and Rede~-elopment Dn~sion staff
~~~ill commence the assessment as part of the imtial ret~ie«- of the applicat~on For pro~ects sub~ect
to NEPA revie~~~, no loan funds (except for acti~~ities normallj- eseznpted from the en~Taror~mental
clearance requirements in 24 CFR Part 58 34j shall be released until the ent=ironmental re`rie~~~ is
completed. the notice of finding and en`~ironrnental assessment results are published. and the 1 ti da~~
public camment periad expires
Pre~ailin~ Wages
~n~~ contract for construction (rehabilrtatton or neti~~ construction} of affordable housin~ ~vith 12 or
rnore units assisted «~th HQME funds, or 8 or more units if the project is assisted «~th CDBG
funds. must contain a pro~-~sion requinng that not less than the preti~ailma i~~ages paid in the locali#~~,
as determined b~~ the Secretan~ of Labor pursuant to the Dai~is-Bacon ~ct, ~~~Il be pald ta all laborers
and mechanics employed in the de~~elopment ofthe pro~ ect Contraetors and su~contractors must
compl~- ~~ith regulations issued under this Act and pertaining to labar standards and HUD
Handbook 13441.
For all funding proQrams. the follo~~°in~ pre~~ailing ti~-age requirements appiti Pursuant to Chapter
4A of Article VII af the Santa N~onica I~~iunicipal Code, anj~ rehabilrtation ar neti~~ construction
pro~ect recei~~ing Cit~•/Agenc~~ financ~al assistance shall compl~~ ~~-~th State pre~~ailing ti~-age
req~urements if the fallo«~ng minimum threshaIds are met
(1) For a rehabilitation pro~ect_ erther a minimum project size of 20 umts, or a mznimum
total construction contract of $2~0_000
(?} For a ne~~° construction pro~ect, either a mmimum pro~ect size of 20 un~ts. ar a
minimum total construction contract of ~ 1 A00.~00
"Minimum totat construchan contract" sl~all not include e~-penses associated ~i~ith srte acquisrtion.
architecturai and other pre-construct~on de`-eiopment costs. financing charges. bondin~ and ~nsurance
requirements, and fees. permits or licensES required m connection ~;~rth the pro~ect The minimum
thresholds stated above are ad~usted each Juli~ 1 st bti~ the percentage change in the Consumer Price
Index for 2he pret~ious ca~endaa' ~'ear Current rnimmum thresholds and prevailing ~ti~age ie~~els can
be abtatned from the Offiee of the Crt~~ Engmeer
Relocation
The Applicant shall de~~elop a plan for temporar~- relocatian or permanent tiroluntar~~ relocauon_
~i~here necessan-, for revie«~ b~~ the Git~ ~~~genc~~ The relocation pfan shall be m accord «zth the
Grt~~'s Relocatzon and Tenant :~ssistance Plan. and the requirements of the Ln~forrn Relacation
Assistance and Real Propem- Acqu~sztion Policies Act of 1970. and the implemenung regulations
Consolidated Rental Housing Trast Fand Ge~idel2nes Page 12
F HOUSi1G'~Sfi~~~~PF]LES~GLIDELIIS'~IF Gu~deLnzs 1993 ~4pd \ocem62r 30 1998
at 2~ CFR Part 42; and the Cal~farnia Relocat~on Assistance La~i~, ~~~here applicab~e, copies of ~vhlcn
may be abtained frorn the Housma and Rede~~elopment Div~sion There shall lae no permanent
involuntan- tenant displacement In ~ases ti~`here tenants ~~~ ill be z•roluntanl~= displaced, the Appiicant
must submit a cop~~ of a let~er to each tenant ~~-hich (1) deta~ls the tenant's rights to relocat~on
assistance_ and {2) has been s~~ned bi° the tenant zndicating the tenant's voluntan~ ~~~aiver of any~
relocation pa~-ments
Contractin~ Requirements
r111 Applicants ~.i~ill be required to subinlt an affirmati~°e action.`equal emplo~-ment oppartunity plan
indicating the methods that thNy ~;-i11 use to encouraee the participation af certified Il~iinorrt~
$usmess Enterpnse'1?~~ omen ~uned Business Enterprise (I~TBE `~~'BEs) in their de~-elopment pro~ect
Cit~~~Agency staff ~~~ill ret-iez~~ the plan and competit~~~e bid and selection process to ensure that
required procedures have been follo«~ ed Cit~-~`A~enc~ staff t~•~11 also monrtor canstruction to ensure
#ha~ MBE~WBEs are participating in the pro~ect as ind~cated an the construction contract
In accordance ~~~rth the Gity's ~~i%omen and ~iinorit~° Business Enterprise Pro~ram appro~~ed b~ Grtt
Gouncil on 1~~larch S, 1983. atl Borrow-ers arz required ta consider the Cit~-'s 'G~'omen and Ni~nont~;~
Business Enterprise Program Librar~~ of Director~es and ?~linorin• and Women Vendors' listing the
procurement of equipment. material, supplzes and professional ser~~ices
All «~ark shall be completed b~~ State-licensed contractars ~i-hich shall ha~~e Santa l~~omca business
llcenses All contracts must compJy ti~~ith competitire biddm~ requirements. Contr~cts o1Ter S 1~,DOa
must be m accordance 1~-~th Git~~'s `~1'omen and ~~~norrty Business Enterprise Program All efforts
shall be made b}- the pr~~-ate o1~~ner or the Borra~i-er to pro~'ide equal opportunrtt~ for employnlent
«~rthaut drscrim~nation as to race, rnarital status, se~. color. a~e, reli~ion, national origm, ancestr~;~.
ph~-sical disabilit~-, ~IDS, or sexual orientation, in seel~na contractors and subcontractors
Competitive Selection Cr~rteria
In selechng among competing pro~ect applications, unless other~;~ise deterniined for a particular
pro~ ect, priorit~ shall be given to pro~ects that
{1} Significantly increase affordable housin~ opportumties for househalds ~ti~ho ha<<e
difficult~~ finding housxng including the homeless, lar~e families, the disabled. seniors,
and persons tradrtionall~- sen=ed by~ Single Room occupanc~° housing
{2) :~re cast effecti<<e or achie~~e the 1o1;-est possible subsxd~ per unit far Git~-~'Agenc`~
resources
(~) Benefit a high percenta~e of ~-er~-lo~i• and lo~~~ income households b~~ ensunn~ deeper
affordabilm~
(4} Are located in areas currentl~- underser~-ed b~~ affordable housing de~~elopments
(5} ~ddress an area of need identified in the Housmg Element of the Cit~~ of Santa 1lriomca
Consolidated Rental Housing Trust Fund Guidelines Page 13
F HOL'S1yG~SH~RE'~~;~'FTLES~GtiIDEL1T%TFGu~~lines 1998 upd Nor~ember 3D 1998
V. LOAN COMMITMENT AND ~L~SING PROCEDURES
Lo~r~ CoYnmitmetz~
~ cammrtment letter shall be prepared b~~ the Housing and Rede~~elopment Division, rei-ie~~~ed bti~
the Manager of the Diti~ision and the D~rector af Resource Management, and signed b~- the Cit~~
I1~TanageriExecutive Director The letter shall state the ma:~zxnum amount of Program funds resen'ed
far the pro~ect and list all of the addrtional conditions, docurr~ents and steps that must be taken by
the Borro~~~er prior to loan closing The Git~- Manager'E~ecuti<<e Dzrector shall ha<<e adm~nistrati~-e
authorit~- to approti~e loans up to 20% in e~cess of $2.~00_040 All ioans «-hich exceed $2,500,000
b~~ more than 20% shall require Citt~ Council approl•al tiotice of the issuance of the commit;r-ent
shall be posted publicl~~, and a cop~~ of such no~ice shall be published in a ne~~~spaper of general
circulation
Upon issuance af a commrtment letter. the Housmg and Redevelopment Ditzsion shall prepare draft
loan docurn.ents_ includin~ a draft Loan A~reement. Promissor~~ Note, Deed of Trust {or other
appropriate securit~- as determined b~~ the Housm~ and Redevelopment ~•lanager}, and Regulaiory
Agreernent or recorded Co~Tenants, and subm~t them to the Cit~- Attorne~T's office for re~~ie~i~ and
appro~-al as to farm The submission shall include copies ofthe preliminar~- title rEport. instructions
to escro«~ concernma the i~ems that ma<< appear on the title upon clasing, and ma~~ mclude the
purchase a~reeznent_ long term lease agreemznt, or air-nghts aareement. as applicable RequZrements
for a Regulaton- Agreement or recorded Goi~enants ana~- be «•ai~~ed in the case of a pro~ect ~~hich is
funded under the HUD Section 202 or Section 811 Pro~ram
Locrn Closing
Funds ma~- be disbursed follo«~ing execuuon af the loan documents b~~ the Borro~~er and the Cih-
Mana~errE~ecuti~~e Director. and compliance «.7th all commitment conditions Staff shall submit
a request for release of funds required for loan closing to the Finance Directar The Finance Director
ma~~ then authorize release of loan funds into an escro~~~ accaunt established far the loan closing
~~~ith instructions for disbursement The Git~-~'A~enc~° ~~-i11 «~1re funds to escrow n~-enn--four hours
prior to the schedu3ed close of escroti~~ ~
Consoliaatec~ Rental I3o~sing Tre~st Func~ Guic~e~ines Page 24
F_KOL"SIi~G~SHARE~~~T~FILES'~GUIDEL€V TF Guidz~mzs 1993 t~pd tiotizmbzr i0. 1998
VI. PROJECT MONITORING AND REPORTING
The Hous~ng and Redevelopment D~~~ision shall mamtor the pro~ect during rehabrlitation or
construction as needed for co~npl~ance ~.i~rth any Regulaton~ ?.greement ar recorded Covenants. the
loan doc~unents and applicable Cit~°, State and:'or Federal regulations The Housing and
Rede~~elopment Divis~on shall request notlfication of the final inspection and final construction
release frorn the primar~~ lender, and shall rzti~ie~~- management practices and reportin~ procedures
~~-~th the Borro~;~er and pro~ect management agent at that t~me for full compliance «~rth Pro~ram
requirNments A cop~- of the 1\ otice of Completion for the pro~ ect shall be submrtted to the Housing
and Rede~~elopment Di~-ision at the ume the l~ot~ce is recarded
Borrot~-ers shall be required to ceri~fi- annually that thev hat~e complied «~itla a~firmatit-e marketing
and tenant selection procedures, and shall submrt an annual report to the Housing and
Redevelopment Diti~ision in the form spec~fied bti~ the Dn~ision The Housing and Rede~-elopment
Dil-ision shall monrtor cornpliance ~~~~th an~~ Re~~latory~ Aareement ar recorded Co~~enants. t~e loan
documents. and applicable Cit~'. State and!ar Federal reQulations on an annual bas~s
For pro~ects funded under the federa! Section 202 Supporut-e Housing Program and Section 811
Supportiti~e Housing Program. during the term of the HUD Capital Advance docurrients, compliance
«~ith the HUD documents t~~ill constitute compliance ~~~ith the pro~~is~ons of these Guidel~nes
Fair Housing ancl ~qurrl Opportunit~~
Borro~~-er shall post notices stating that a houszn~ pro~ect is sub~ect to Fair Housing and Equal
Emplo<<ment Opporturut~~ requirements of 24 CFR 92 3~0 and 351 at each pro~ect site The name
and telepllone number of the Fair Housing Officer of the Cit~~ of Santa 1lonica l~~ill be included on
the notices
Fair Housing complaints are referred to the Cit~~ :~ttarne~'s office for in~:°estigaFion If_ after
inl-estigation. rt is determzned that discnmination in the rental or sale af housing has o~curred. #he
Crtv Attorne~• ma~~ attempt to mediate a settlement bet«een the o«~ner~`seller and the complazning
pam~ ~•~Iediation is usuall~~ successful Ho~~~e~-er_ if it fs not, the partS~ «~ith the complaint ma~°
proceed to file a~ainst the o~~-nerlseller If a pattern of discrimination has occurred, the C rt~- ~ Agenc~'
may file suit for unfa~r business practices or other applicable ~~iolatians
Establishme.~it c~n~ Use o_f'Reserve Funcls
Lpon completion of pro3ect construction. the Borro~~-er ~~ ill be required to caprtalize a Replacement
Reser~~e Fund in an amount determmed b~;~ the Cit~-~~:~~enc~° and make annual contribut~ons to the
Fund The Replacement Reser~-e Fund can be utilized for ekpend~tures related to necessarF~
structural and equipment replacements and ampravements of a caprtal nature. and is not ~ntended to
be used far ardinan- maintenance items :~n~- e~penditure b;~~ the Borro«~er from the Replacement
ConsoIidated Rental Housing Trast Fund G~ide~2nes Page 15
F'HOUSi~G 5:-31RE'1~PFILES'GliIDEL]]+F~IF Gu~delines 1993 ~.pd tin~°em6er 30_ 1998
Rese~~e Fund in excess of ~2,~00 must bz appro~~ed an advance b~' the Cit~; ~ Agenc~' in ~~xitmg
E~:pe~ditures of 51,000 to $2,~00 must be documented bs° paid in<<oices submrtted to th~
Citv%`:~genc~~ "'ith~n ~0 da5~s of disbursenrient frqm the Repla~ement ReserF~e Fund
The Borros~~er must caprtalize an Operating Resen~e Account at the completion of construction T~e
Borrol~~er is requtred to make monthly contributions to the account at an amount to be determ~ned
bF the Cit~-/Agency Funds ma~~ be disbursed from the Operat~ng Reser~-~ Account to provide
financial stabilrt~~ durin~ periods af financial stress. and to meet deficits in operating costs, rent
deficits, or debt ser~~ice Disbursements in an amount in elcess of ~2,~OQ must be approti-ed zn
adti-ance by~ the Crt~-.'Agenc~~ in ~i~riting Disi~ursements of S 1,000 to $2_~00 must i~e documented by
paid fnvoices subznltted to the CityiAgenc~- «~thin ~0 da~'s of disbursement from the Operatmg
Reser~.~e Account
The Housin~ and Redevelopment l~~anager ma~~ appro~~e consolidation of Replacement Reserve
Accounts and Operating Resen~e Accaunts into one account upon request of the Borro~z°er
Consolidated Rental Housing Tr-ust F~nd Guidelines Page 16
G HOL`SIVG S~LARE \t'PFTLES~GUIDELIti~'['F Gu~delmes L398 w°pd T~ovember 30 1998
VII. FUNDING SOLTRCES
HOME T~r~st Fr~nd
Source of Funds
Fundin~ for this Pro~ram is pro~~ided throu~h the L~ S Departrnent of Housing and Urban
De~~elapment (HUD) HOME Progratn. and therefore as sub}ect to the federal rules and regulations
found ;n 24 CFR Part 92. as amended from time to time
~ligible Borrowers
EIigible borro~~:ers are non-profrt Houszng De<<elapment Gorporations (HDGs} ~~~rth pro~~en capacits~
to de~~elop, o«~n and operate housmg. and ~w°hich ha`~e a E~alid ~~l(cj(3} or (4} designauon from the
IRS. and prn~ate o~.~mers of multa-family and SRO rental buildings ~~~ith pro~~en capacrt~~ to de~~elop.
o«n and operate affordable housing Lunited partnerships ~~~hose 6eneral partner is other~~ise
eliglble are also eligible to borra~;~ Progran~ fiuici5
Eli~ible Pro~eets
Pro~ects eligible for HOME funding shall
(1) be rental pra~ects located m the Cit~- of Santa ~iomca.
(2) contribute to the achie~~ement af the Crt}~'s fair housing goals;
(3) invol~~e ~ or more apartments or single-room-occupancy {SRO} units ~.~~hich ti~-~ll be
rented to eligible loE~~er-income households at rents that do n~t e~ceed rents as defined
by: 24 CFR 92 2~2, dated September 16, 1996. as amended from time to time Pro~ects
sen~mg persons ~t~7th special needs, or ~z~here the Crt~''~~~anager finds that the pro~ect l~zll
proz`~de a substantial publxc benefit_ ma~t~ hati-e fe~~~er than four apat-tix~ents or SRO unrts
Transitional or permanent housina ma~~ be pro~~ided (but not temporar`.r shelters)
(~} ha~-e at least 20% of the HD11~1E assisted unrts rented ta ~~en~ loz~~ income families (50%
of inedian income) under the terms and conditians set farth in'- 4 CFR 92 2~2 (2)(b}.
(~) der~onstrate tinanczal feasibilitv -- including ~he abiiit~~ to maintain rents for the
subsidized umts at affordable Ie~els for the periods specified in 2~ CFR 92 2~2,
(6} be free of sx~n~ficant ad~-erse en~-~ronmental impacts. ~~cept those that can be mrtigated
tYu-ough the pro~ect itself_
( 7) minimize tenant d~splacement,
(S) compl~~ «`~th all local building and zomng codes and standards, includmg ener~~
efficieneF- and i~-ater conser~~ation standards. meet housing qualit;~ standards m Section
882 1Q9 of Trtle 24 \e~j-1i- canstructed hous~n~ must meet the current edition Model
Ener~- Code of the Council of American Build~n~ Ot~icials_
(9} make efticien# use of public f~nds and a~-aid "la~~ermg" of subsidies be~~ond those
necessan• to achie~-e a financiallti~ Feasible proJect.
(1 ~) hat-e at lease ~ 1% of the pro~ ect space be residential, if in a mixed use pro~ ect.
(11) ,~cquisrtion or Acquisition and Rehabilrtation pro~ects shall ha~~ e at least ~ 1% ofthe unrts
occupied b~' households ~~zth incomes that do not e~:ceed $0% of inedian income_
Consolidated Rental Housing Trust Fund Guidelines Page 17
F HOi:SNG'SHARE~«`PFILES'~GC!IDELI\~TFGuidzliiEZS 1998xpd Norember30, 1998
adJusted for househo~d srze. at the t2me of acqutsitian (e~cept as approvec~ bti tne Cit}~
I~ianager)
Eligible Uses and Acti~ities
HO_l1E funds ma~~ onl~~ be used to finance ne1~~ cons#ruction or acquisition and`or rehabilitation of
rental hausmg «-hich is affordable to <<er~~ lo«~ and lo«~--incoxne households as de~ined b~~ 24 CFR
92 2 Ninet~~ percent (90%) of assisted pro~ ect unrts must in~tiail~~ be ar•ailable to tenants at or belo«,°
6Q°/a of the Los An~eles area median incame, as ad~usted for household size, as pubiished bi- HUD
from time to time, unless other4~-ise allo~~~ed b`~ HLD Fifteen percent (l~%) ofthe annual HO~E
fund allocation shall be set aside for certified communit~° housin~ development argamzations
{CHDO's)
Ne«- construc~ion costs eligible for HONIE funding shall be as specitied in 24 GFR Part 92,
includin~
1 site acqursition.
2 cost of demolishing e~isting structures on1}~ if construct~on ~s commenced «~ztkun 12
months of demolrtion,
3 site preparation costs (gradmg. fillxng. etc ).
4 fnancing costs as described in 24 CFR 92 206,
~ archrtectural. eng~neer~ng, and other related saft costs,
6 the cost of extendin~ or up~rad~ng utxlities to the srte to suppart t~ie proposed pro~ect,
7 construction costs.
8 relocation costs, and.
9 affirmative marketFng and aud~t costs related to HO'~-1E~ program requirements
Rehabilrtatron costs eligible for HOME funding include
1 pro~ect acquis~tion ti~7th or «~ithout rehabilitation,
2 costs of temporar~~ or permanent relocation for existing tenants.
3 financing costs, as described ~n 24 CFR 92 206_
~ architectural. engineering. or other design costs,
~ utility~ upgrade or extension costs.
6 costs associated «7th demalition («~here necessar~-} onlz- if rehabilitation is commenced
~ti-ithin I2 months of demolition,
7 construction costs,
8 pro~ect audit costs, and_
9 affirmati~~e marketing costs
Ineligible Uses and Activities
The folloi~~ing costs are not eligible for HOII~IE funding
1 pro~ect resert~e accounts for replacement or operatin~ reser~~es. and operating subsidies.
? pa~ ment of impact fees,
3 land bankin~,
Consolidated Rental Housing Trust Fund Guide~ines Page 18
F~,'30US:~G'SH~RE'~w'PFILES'GL"IDELli`'TF Gutazl~nzs 1495 n~i tila~embzr 3G. l996
~ emergenc~~ repa~r or ueatherizat~on pro~rams,
~ cammercial properties,
6 temporaty shelters; or
7 pro~ect-based rental assistance
Affordability Requirements
~ housing pro3ect qual~fies as a HO\iE. assisted affardable housxn~ pro~ect if rents are limited as
folio«~s
1 At least 20 % of the H4R~1E assisted units are
a) Occupied by ~~er~ lo~v-incoane families i~~ho pa~° to~~~ard rent not more than 30% of the
family ad~usted income. or
b) Occupied b~~ z-en~ lo«~-income families and bear rents not greater than 30% of the
~ross income of a familti= ~~°hose mcome equals ~ 0% of the rnedian mcome. as determined
b~° HL D In determinmg the maximum monthl~- rent. the landlard must subtract a
monthl~~ allo~~~ance for an`~ utilities and ser~~ices (e~cluding telephane} to be paid b~' the
tenant
? :~11 remain~ng HOME assasted unzts must bear rents not ~reate~r than the lesser of•
a} The faxr market ~~ alue for eYisting comparable umts in the area as established b~~ HUD,
less the monthl~~ alloirance for utilaties and sen~fces to be paid b<< the tenan#. or
b) A rent that does not exceed 30°10 of the ad~usted income of a faznil~- ~ti~hose mcame
equals 6~°/fl of the median income for the area as determined b;~ HL`D In determining
the ma~:unum manthli- rent. the otiiner must subtract a monthl~~ alloti~°ance for ut~lrt~es
and sen-ices to be paid b~~ the tenant
3 Is occupied only bti~ households that qual~fv as lo«~er income {80% of inedian ~ncomej
famil~es,
4 ~~4'ill remaxn affordable. pursuant to deed restrict~on. co~~enants runrung «~ith the Iand, or
other mechanisms that ensure that the propem~ ~;~ill remam affordable 1~-zthout regard to
the terrr~ of the mortgage or transfer of o«-nersh~p for not less than ~~~-ears
Other Requirements
:I~finimum Loaji: All HOI~~E inz-estments must total not less than $1.000 multiplied b~- the number
of HOME assisted unxts ~n the pra~ect
.~Vlaximum Loan: The malimum amount of subsid~- per umt shall not exceed the maximum allar~ ed
b~~ HL~D under the HO~iE pro~ram {?~ CFR 9? ?>4), or that proti~~ded for under Section I~', Loan
Terms. of these Gu~delines, ~i~hiche~~er is less The Cit~~ «~ill a~~ oid unnecessar~; la~°ering of subsidies
from different federal. state and local programs and seek to maximiz~ the benefit to target
householc~s from the tn~~estment of HO~~~E funds in a proJec# See Exhibats (in Section ~iIII of this
report} for Home Program Subsid}~ Limrts
Property StandQrds: Housmg that ~s assisted ~~~th HO~1E funds must meet, at a mimanum. the
housin~ qualit~° standards of all iocal codes, rel~abilitation standards and zoning cac€es Ne~~~l~~
Consolidated Rental Housing Trust Fund Guidelines Page I9
F HOUSI~G SE; ~RE E~7'FILES GL'LDE[.]Tv'~IF Gu~dehnes 1498 ~tipd '~oczmbzr 3G. i998
constructed housing must nneet the current edition of the NSodei Energ~t~ Code published by~ the
Council of American Building Officials Substantiall~~ rehabzl~tated housing inust meet the cost-
effectit-e energ~- conservatYOn and effecti~~eness standards in 24 CFR 39
Labor Standarrls/Construction Contracts: ~n~~ contract far construction (.~-hether it is for
rehabilitation or for neti~° construction} of affordable housing ti~-~th 12 or more u~nits assisted «~th
HO~~IE funds must contain a pro~-ision requirin~ that noE less than the pre~~ailin~ i~°ages paid in the
localit~-. as determined by the SecretarF~ of Labor pursuant to the Da~~ is-Bacon ~ct. «~ll be paid to
all laborers and mechamcs empio~-ed m the de~-elopment of the pro~ect Contractors and
subcontractors must conlpli• ~z-itk re~ulatians issued under t~is :~ct and pertainrng to labor standards
and HL;°D Handbook 1344 1 These pro~-isions appl;~ ~i~hether H01~1E funds are used for construction
or noz~-construction costs
Learl-based Paint: Housing assisted li~rth HO~~E funds const~tutes HUD-associated housing for t~e
purpose of the Lead-Based Paint Poisoning Prevention Act and is therefore sub~ect to 24 CFR Part
35 Unless athezti;~ise provided, borroti~-ers are responsible for testing and abatement
Co~tflict of Ifiterest: Na person ~~:~ho ~s an emplo~~ee, agent, consultant. officer. or elected official
or appointed official of the Cit~~ l~~ho exercises or has eYercised an~- function or responsibilrty ~tizth
respect to activities assisted ~~~rtli H~NiE funds ar«~ho is in a posxtian to participate in a decision
making process or gain inside inforanation ~tizth regard to these acti~°ities. may~ obtain a financial
interest ar benefit frorr~ a HO1~~iE assisted actiz~iti~, or ha~~e an interest zn an~~ contract. subcantract
or agreement ~~~ith respect thereto, or the proceeds therzunder. erther for themseh°es or those i~`~th
~~-hom tne~~ na~•e famiIj- ar b~siness ties, during tneir tenUre or far one ~-ear tnereai~er
Religious organizafions: HOI~~iE funds ma~~ not be pro`rided ta pnmarih- religious or~anizations.
sucl~ as churches, for ani~ activih~ inciudu-~g secular actz~-ities In addition, H4y1E funds ma~~ not be
used to rehabilitate or canstruct housing o«ned b~• primanl~- reli~ious orgamzations or to assist
primanl<< relagious argaiuzations in acquinn~ housina Ho«°e~°er. HOME funds may be used b~~ a
secular entity to acquire housing from a prinianl}~ religious orgamzation. and a primaril~~ religious
organization may transfer tatle to propez-t~~ to a~~~~ho~~~- secular entz~• anc~ the ~nttt~~ ma;~ particip~te
tn the HON1E program m accordance ~~~ith the requirements of this part The entitF~ ma~~ be an
eYistina or ne«'iy established entit~' (~~`hich ma~- be an entrtt- established, but not controlled, by the
religious or~anization) The completed housing pro~ ect must be used exclusi~~el~~ bt~ the oi~ ner enut~-
for secular pur~oses. a~~ailable to all persons regardless of rehgion In partacular. there inust be no
rel~gious or membership cr~teria for tenants of the propert}-
Consolidated Rental Housing Trust Fund Guidelines Page 20
F NO~S1t;GSH.~REE~PFiLESGliIDEL^J'.TFGuide3ine:=99Sta~d \p~•ernber30.199$
CDBG ~lousi~rg Tr~ust Fu~d
Source af Funds
Fundmg for this program is pro~~ided through the L~ S Department af Housing and Urban
Development (HLD) Commumt~~ De<<elopment Block Grant (CDBG} program, and therefore is
sub3ect ta the federal rules and regz~atron fo~znd in 2~ CFR P~-t ~70, as amendea from time to time
Eligible Borro~vers
Elagible borro«-ers are cornn~urut~~ -based nonprofit housmg de~~elopment corporations (CBDOs} dulti°
organ~zed ar«-ith capaclty to promote and undertake communit~~ de~-elopment acti~-ities an a
not-for-profit basis, ~~~ith pro1--en capaciti~ to de~~elop. o«n and operate affordable housing. i~~thin a
nei~hborhood identified in the Commurut~~ De~°elopment pian Such orgamzations axe defined in
CDBG regulatians (2=~ CFR 570 204(a}(2)(c)(1 }) 1~ onprafit Hausing Development Carporations
(HDCs} and social sen~ice agencies «-ith pro~~en capacit~~ to de~-elop_ o~~~n. and operate housing_ and
l~m~ted partnerslups «-hose aeneral partner(sj is othern~ise eli~ible under thz abo~~e pro«sions are
also eli~ible to bor.rou- Program funds if the nonprotit parmer is th.e managing gene:ral partner
throu~hout the terti~ of the loan and i~~ill receit~e at least ~1°% o~ the dereloper fee 'Vonpratit
corparations must ha~-e a~~alid ~O1{c){3) or (4} designation from the Internal Re~~enue Ser~:ice
Eli~ible Proiects
Elig~ble pro~ects r.~~ill (1} have £our or mare apartment units, single room occupancy (SRO) un~ts.
or fez~•er than four apartments or SRO uni~s in the case of a group home, mobile home unrt or 1~°here
the Cit~~ Vlanager finds that the pro~ect «~ill provide a substanual publ~c benefit. {2) if acquisition
or rehabFlitation, ha~~e at least ~ 1% af the units occupied b~-1o~~~ and moderate ~ncome tenants at the
time af acqiusrt~on (e~cept as appro<<ed b~- the Grt~-11~1anager}, (3) if ne~~~ construction. hati-e 20% of
the umts occupied b~~ lol~.- income tenants, (=~ j be free from sigmficant adverse en~~ironmental impacts
etcept those that can be mltigatea, anc~_ (S) a~~oid permanent mE~olur~ta,n~ tenant disp~acement to the
ereatest degree feasible in order to carry out the proaram Transitianai or permanent housing ma~-
be prov~ded Rents of assisted uruts shall be aff4rdable to househalds «hose incomes do nat e~ceed
80% of the area median income
Eligible Uses and Acti~~ities
F'unds can be used to rnake ioans to el~gible borro«.-ers to provide affordable housmg, princ~pall~~ for
loi;~ and moderate income households. including but not l~miteci to
{1} acquasition a~ad'or rehab~litation af eli~ible rentai properties.
t?} ne~;~ construction of rental or limited equitt~ cooperatiti~e housin~ 6~~ a CBDO is eligible.
pro~~~ded the construction acti~~ it~~ ~s camed out as part of a neighborhood re~-italizatton,
commumt}~ ecanomic de~-elopment or energ~~ conserti~ation pro}ect,
(3) prederelopment loans up to a per~od of #i~-ent~--four months for srte acquisition or
construction Such loans mas- be e~:tended for up to 12 addrtianal months at the discrehon
of the Housmg and Rede~•-elopment 141anagzr
Cansolidated Rental Housing Trust Fund Guidel~nes Page 21
F~HOtiSP;G ~H.~RE u~PF1LES GUIDELIh~TF Gindeline> 1998 upd Knvember ~G_ 1993
(~) acquisit~on of shart-term occupanc~~ renta~ hous~ng
Funds zna~ also be used for relatedprede~~eloprnent acti~~ities. including professional services ~;~hich
cannot be obtained on a continCencv basis
Ineligible Uses and Activities
Funds ma;~ not be used for the fo11o~~~in~ acti~~~ues
{1 } the constxizction af ne"~ rental l~ousang ar for any pro~ram ta subsidize or assist such
housin~ e~cept ~~•hen carr~ed out b~~ a CBDO
{2) to pro~~~de income payments for rent or utilrties, except zn emergen~~' srtuations for a
period not lonber than three months
(~) to assist rental housing properties if less than S 1°ro of the ututs «-~ll be occupxed by lo~~°
and moderate ~ncame households Ho~;-eti-er, such housing ma~~ be assisted «-here
{a) Thz assistance is for the purpose of reducing the de~~elopment cost of ne~i°
construction,
(bj ~he proJect rs not designed for~`occupied b~~ elderl~~ househalds,
(c) At least 20°/fl of the units «~ill be occupied b~-1o«~- and moderate-xncome house halds
(households ~~rth incomes ~;~hich do not exceed 80% of inedian incorne}, and
(d) The proportion of the total cost of de~'eloping the pro~ect (to be borne by the CDBG
funds) is less than or equal ta the proportion af the umts in the pra~ect «~ha~h ~~711 be
occupied by lo~i~ to rnoderate income househol~ls
Compliance with Federal and Local Regulatians
All pro~ects must comply ~~~xth all applicable federal requirements contamed in 24 CFR Part ~70
Subpart K. mcluding but not limited to standards of financial management, en~~ironmental retize~i~.
labor and ~~°age requirements. debarred contractors_ lead-based paint and equal opporturun~
Borra~~~ers should nate
Contract Reqrairentents: AIl «ork shall be completed b~~ licensed contractors All contracts must
compl~ ~~-~th competitive biddine requiremznts
~abor Standards: :~ propei-tv «~ith eight or m~re residential units must compl~- ~~-ith the Federal
Labor Standards. including the Da~~is-Bacon Act requirements, as promulgated by- HL~D. and set
fQrth 1n 24 CFR Part ~70, Subpart K m the perFornaance of the rehabilitation or constructxon ~~~ork
financed b~ the loan Contracts ot-er 510,000 must compl~~ «ith Equal Opportunrt~° Affirmah~-e
flction requirements of Section ; of the Housing Urban Development Ac# of 1968 and be ~n accord
«-~tn tne Cit~-'s ~~'omen and \rZinorit;~ Business Enterpnse Program Al~ efforts shall be made to
pro~~ide equal opporturut}~ for emplo~•~nent ~j~ithout discrimination as to race, marrtal status. seh,
coior, a~e, rel~gion. national or~gm or ancesirc'. and to seek out qualified local tradespeople for
contracting and subcontracting bids
Cansolidated Rental Hausing Trust Fund Guidelines Page 22
F ;OLSIT~G'SH~~RE~L~'a~'[[.E~GliIDELN'~TFGut~zlme~l~3nod ~o~'ember.i0 1998
Leud Based Faint: All pro~ects must compl~• «~ith the federal Lead-Based Pamt Hazard Abatement
regulations contained in Subpart K, 2~ CFR ~70
Accessihiliiy: All pro~ects must cornplz~ 1~3th the federal Se~non ~04 Disahled Access~b~lit}-
regulations contained zn Sections 8?2 and 8 23 of Subpart C. 24 CFR Part S
Religious Or~ga~tizations: All pro~ects must be used exclusi~~eh for secular purposes. and must be
a~~ailable to all persons regardless of religion The housmQ ma~~ not be used far ti~~orship ar reli~ious
instruction
Consolidateci Rental Hous~ng Trust Fund Guidelines Page 23
F'~.HOL"SI,1G'SEi4R.E'~~4YF1L~S~GL"•L~ELiti~TF Gutdzlmzs 199K apo l~o~ember ~0, 1998
Citywide Housi~g Trr~st Fict~d
Source of Fands
Fur~dmg forthis pra~ram is pro~~ ided vsing reti~ enues ~enerated (i) through De~=elopment Agreements
«zth fdr-profit de~~elopment firms doing business in the Crt~~ af Santa 1~Ioruca. {ii) tlie Inclusionary
Pragram createa b~- Qrainance ~ 6l 5 ana tne ~ffordable Housing Proauctton Program establishea
by- Ordinance 191 S. and (iii) the Office 1~Iitigation Fund
Eligible Borrowers
EliQibie borro~~ers are nonprofit HouSinQ Dz~-elopment Corporations (HDCs} ~~~ith prot-en capacit~~
ta de~~elop. o~~~n. and operate affordable housin~. and ~3~hose Articlzs of Incorporation and Bi-lau~s
irrevocabl~- dedicate residential prapert~- oiined bti° the corporatXOn to the chat7table purpose of
providing affordable housing to lo~~ and moderate income hauseholds Limited partnerships ~~ith
such a nonprofit housing development corporation as #he general partner are also eligible borro~~rers
zf the nonprafit partner is the managing general partner throu~haut the term of the loan and ~~ll
receive at least ~ 1% of the de~~eloper fee i~ onprofit corporatians must haz-e a~-alid 501(c){3) or (4}
desi~nat~on from the Internal Revenue Seri-ice
Eli~ible Proie~ts
Funds can be used to make deferred loans to eligible borro~~~ers to prolzde af~ordable housing, for
lo~.~,~ and ve~~ lo~~ income households through acquisrtion and ~ or rehabilitation ar ne«~ construction
Eli~lble rehabil~tatian pro~ects u~ill
{ I} be m need of rehabilitation as defined herein.
(?} be locatec~ in the Ctt~~ of Santa Z~Iomca,
(3 j be free from sianfficant adverse en~~ironmental impacts except those that can be
mrtigated #hrouQh rehabilitation. and
(~) a~~oid permanent in~~nluntar~- tenant displacement to the greatest deeree feas~ble in order
to carr~- out tl~e program
Eligible projects ti~~hich invoh~e ne«• constructaan or conversion of an e~stin~ non-residential use
«~11 conform to items {2), (3}, and (~) abo~-e
~li~ible acquisition and rehabilitation pro~ects shall ha~-e at least ~1°,% of the u~uts occupied by
households «°hose incomes do nat e~ceed SO% of inedian income, ad~usted for hausehold size. at
the time of acqu~sition (except as appro~'ed b~~ the Cit~• '~~Ianager) All as5isted unrts shal~ be
affordable to hausehalds ~~~hose incomes do not ezceed 60% af inedian ~ncome, and {except for
households ~n occupanci' at the time of acquisition) shail be occupied b~~ households «~hose mcomes
do not etceed 60% of inedian incame
Consalidated Rental Housing Trust Fund Guide~ines Page 24
F~HO~51T~G'~SH.~RE'lkPFILES'GUI-ELIN TFGn~delmes L498 wpd ~o~'ember ~0_ 1995
For neti~- construction pro~ects. am- untt ass~st~d under this program shall be affordable ta a~d
accupied b~~ households «~hose incames do not eYCeed 60°,% of inedian income as ad~usted for
household size
~ligible Uses and Activities
Funds can be used to make loans to ellg~bie borro~;~ers to pra~~ ide affordable housmg. for lo«~ and
ver~~ lo«~ income households. mcluding but not I~mited to the folla~;°ing
(1 } acquxsition and rehabilitation of ehgible rental properties.
(Z) acquzsition and conti-ersion of non-resident~al propert~- to multifamil~- or single-room
accupancy rental housin~ unrts,
(3) ne~~~ constructipn of rental housing units,
(4} acquisition and rehabilrtation or construction of sinale-room occup~nc~ housing uiuts.
(~} prede~-elopment loans up to a period of 24 months for site acqutsition. predeveloprnent
actiti'ities. including professional se~~ices ~i-hich cannot be obtained on a contingenc~~
basis, and constructian Such loans ma~' be eltended for up to 24 addrtXOn.ai months at
tne c~iscretion af the Housmg and Redeti~elopment ~llanager; and
(6) bnd~e loans up to a period of ten ~~ears to be repaid b~~ equrty~ contributions of limited
partners
Other Requ~rements
Funds ~en<<ed from the Inclus~onan~ Housmg Progra~n and from the Affordable Housing Prodnct~on
Pragram mati~ onl~~ be used for (i) ne«~ constructzan expenses. or for (ii) acquxsxtion expenses incurred
~n con~unction ~~-~th ne~~ constructian of pro~ects I~nits assisted 1~°rth ~nclusianan~ Program or
Affardable ~Iousing Production Program funds shall be primanl~~ units for families «zth an average
flf t«o bedrooms
Reli~ious Or~anizatians
All pro~ects must be used exclusivel~~ for secular purposes. and must be a~=ailable to all persons
regardless of reli~zon The housing ma~~ not be used for ~~~orship or rellgious mstruction
Consolidated Rental Housing Trust Fund Guidelines Page 2~
F H~US:~C. SH4.RL~~L'?F;LES GCIDELiI~~TF Gu~delmes 1998 wp~ November 30, 1998
Redevelopment Housing Trust Fund (f'ormerly CHARP)
Source of Fnnds
Fundmg for this pragram is generated from the Cm-"s redet-elopment praject areas This program
specificall}- uses tax-inerement re~-enues ~~-h~ch are set aside for the purrpose of "increasing,
zmpro~~ing and preserem~ the communin~'s suppl}~ of lo~~ and moderate ;ncome housing" as
stipulated by Californ~a Rede~~elopment La~~-. Health and Safety Code Sectaan 33334 2
Eligible Borro~ers
Eligible borro«-ers are nonprofit Housing De~~elapment Carporatzons (HDGs) duly organized to
promote and undertake commurutj- de~-elopment activities on a not-for-profit basis. or for-profit
hous7ng de~-elop~rs ar de~.~elopment corporations. «~th pro~.-en capac~ties to dez~elop. o~in, and
aperate affordable housing L~mited partnerslups «~hose aeneral partners are other«~ise eiigibie under
the aboti=e are also eli~ible to borrot~~ Program funds
Eligible Projects
~11 acquisition and rehabilitation umts shall be affordable to h.ouseholds ~;hose incorr~es. as ad~usted
far hou5ehold size. do not exceed 100°/a of inedian mcorne. and shall be occupied by households
~~hose incomes do not exceed 10~% of inedian incorrie The Cit~~ ?~ianager ma~~ alla«~ these umts to
be occupied b~~ households «°hose income daes not e~c~ed 120% of inedian rf required for pro~ect
feasibilin~ Rents for such units ma~• not EYCeed 30% of 110% of inedian income If eYisting tenants
at the t~rne of acquisition or fundin~ of the pro~ect ha~~e ~ncomes aboye the required le~~el. Cit~~ staff
may defer these requ~rements as to those uruts housing such tenants onl~- ~t~here the ~ntent to use the
prapertv for future affardable hous~n~ to persons and families of lo~j~ and moderate income has been
adeq~atel~- docutnented Cxtti- Counc~I action on this exemption "~ill take place in the form of a
blanket resolution Such def~rred uruts «-il1 be reqlured b~~ appropriate co~~enar~ts to be con~~erted
to affordable unrts ~i~hen the existing tenants ~ acate the units El~gib~e acquisation or acquisition and
rehabilitation pro~ects shall ha~-e at least ~ 1°~o of the unrts preti°iausly or currentl~~ occupied b~° tenants
z~~rth incomes that c~o not e~ceed Sd°/o of inedian income, adJusted for househa~d size (e?~cept as
appro~~ed b~~ the E~ecut~ve Directorj
All ne~~- constructian pro~ects sl~all be affordable to households ti~-hose income, as ad~}usted for
household s~ze, does not exceed $0% of ined~an income.
Eli~ihle acquisrtion and/or rehabilitatxon pro~ects «-ill be in the defined rede~-eiopment pro~ect area
unless the Rede~~elopment Agency~ makes a findma that use of rede~-elopment funds outside the
pro~ect area ~~~11 be of benefit to the redevelopment pro~ect area In addrtion, eligible pro~ects ~i~ill
{ 1) ha~-e four or more apartment ar SRO unrts or be a group hame or mobile hame unrt.
except «;here the E~ecuti~-e Director finds that the pra~ect ~~~iil proz~ide a substantial
public benefit,
{2) be in need of rehabilitation as defined herein;
Consolidated Rental Housing Trust Fund Guidelines Page 26
F HOUS1tiG5H ~RE ~IPFILES GL:IDELIN'~IF Gu~delines 1998 upd tiocember 30 199$
{;} be located in ~t~ze C~ty of Santa Monica.
{:}) be free from significant adz~erse environmental conditions except those that can be
mftigated at a reasonable cost thraugh rehabilrtation, and
(~) mmunize tenant displacement
Eli~ible Uses and Activities
Program funds can be used to make loans to eligible borro~i°ers tii°ho «-ill prov~de affordable hous~ng.
prmcipall~' for la~~° and nnoderate income hauseholds Eli~ible uses of deferred pa~ ment loan funds
mclude. but are not limited to, the follo~i~ing
(1) acquisrtion and.!or rehabilrtation of eligible properties for rental or transrtional housin~ _
(2) acquzsition and conversion of non-residential properh~ to multlfamil~~ or single room
occupanc~~ rental housmg umts_
(3) new construction of houstng umts for rental or transrtional housing,
(~) acquzsition and rehabilitat~on af single-raom occupanc~~ hausing unrts.
{5) predeti~elopment laans up ta a period of 24 months for srte acqe~fsition, predeti~elopment
acti~~ities, mcluding professional se~~ices «~hich cannat be oi~tained on a contingenc~
basis, and construcuan Such loans ma~- be eYtended far up to 12 additional months at
the discretion of the Housing and Rede~~elopment Manager, and
{6) bridEe loans up to a penod of ten ~~ears to be repaid by equzty contributions of l~mited
partners
Affordability Requirements
Unrts are considered affordable v~$en the z'ent_ less a deduction for a utilit~- allowance for a"ti-er~--
lo«~'` income household does not exceed th~m~ percent {30%) of 54% of the area median u~come, for
a~`lo«~er" mcome household does not e~ceed thirty~ percent (30°/fl) of 60% of t~e area median
income, and far "lo«~ and moderate" incom~e households does not e~ceed thirt~- percent (30%j of
110% of m.edian uicome
Ven--lo~i~ incotne households are households ~~~hose utcomes do nat eYCeed ~0°1a of the area median
L~oi~-er incom.e Y~ouseholds are households «°hose income does not exceed 80°fo of the area median
Loti~~ and moderate income households are households ~i-hose income does not e~ceed 12~% of the
area median mcome The area median as referenced above is the Los :~ngeles Count~ mecEian
mcome fi~ure, ad~usted for famil~~ size. as published b~~ the U S Department of Housin~ and Urban
De~~elopment {H[;D) fram time to time
Praject Monitoring
The Rede~~etopment Agenc~~ shall momtor annuallti- an~~ hous~ng affordab~e to households of ?o~~~ or
moderate income funded ~~~rth redevelopment funds The A~enc~° ~~°ill require o~-ners or managers
ofthe housing developments to submrt an annual report to the Rede`°eloprnent A~ency The annual
report ~~-ill include information on rental rates, famil~° income, and famfly- size of occupants
Consol~dated Rental Housing Trast Fund Guidelines Page 27
F}1pUSi~G SHaRE~~6PFILES'GC;IDELII~~TF Gwdelines 1948 ttipd \o~°em6er ~0. 1998
Security
The loan shall be secured b;~ a Deed of Trust and Promisson~ Note ~j-hicl~ mav be subordinated to
deeds of trust securing other Federal, State, or Ci~ loans, or loans from canventional financmg
~nsututions used ~n con~unction ti~.°ith the Rede~-elopment Trust Fund Loan on the same prapert~-
The Redevelopment Agency must obtam t~-ritten commitments to proCect the agenc~-'s an~~estment
in the ez~ent of a default. The Redevelapment Agency must appro~~e all requests for subardinat~an
The laan shall be further secured by recorded Covenants and Restnctions, rumm~~ «~th the land.
to assure that Pro~ram funds are used to pro~-ide lon~-term affordable rental hous~ne apportunrties
for lo~~~ and moderate ineame housenolds The Borro«,~er and the Rede~~elopment Agenc~~ shall
execute and record Govenants and Restrr~ctions regulatin~ pro~ect rents, tenant selection procedures,
use of pro~ect ~ncome, management and maintenanc~_ transfer of prapert~~. and permitted farms of
o~inership and use, including a proh~b~tion on con~-ersion of the pro~ect to condominium or stock
cooperative a«~nership for the term of the recorded Cati~enants and Restrictions The recorded
Col•enants and Restrictians shall pro~~~de for the Ion~est feasible time, but for a period nat less than
the effecti~~eness of the Redevelapment Plan for «~luch the redevelopment pro~ ect area is generating
rede~~elopment tax increment funds Not~~°ithstandin~ the abave_ the Co<<enants and Restrictions
«-ould in no event, be shorter than an}° other term of a Regulaton~ Agreement or Co~-enant recorded
concurrentl~- «-ith the agenc~~'s Co~-enants and Restnctions The Ca~~enants and Restric#ions shall
be recarded ~;-~th the Deed of Trust
In some c2rcumstanees, these Cavena2~ts and Restrictzons may be subardinated b~~ the ~~encti-.
pursuant to Section 3333~ 3 of Californza Hea~th and Safet~~ Gode_ to liens, encumbrances, or
regulatory agreements of other federal or state a~encies or l~nders providin~ financfng for the
pro~ ect
Religiaus Organizations
All pro~ects must be used exclusi~~el~- for secular purposes. and must be a~-ailabie to a11 persons
regardless of religion The housin~ ma~~ not be used for «-arship or religious instruction
Consolidated Rental Housing Trust Fund Guadelines Page 28
F NOti SING~ SS ~RE'~1;7'FILES' GL-IDELII+ TF Gu~delmes ] 998 ~; ~1 V o~'ember 3 G. 1998
T4RCA Housing Trust Fund
Source of Funds
Funding far this program is pro~~ided uszng reti~enues generated pursuant to the Tenant O~~nership
Rights Charter .~mendment_ as amended by~ Fraposition K
Eligible Barrawers`
Eligible borro~.~-ers are iionprafit Housin~ Dei~elopment Corpaia#ions (HDCs) c~~fth proven capacrtti
to de~~elop, o«~n_ and operate affordable housmg, and ~i-hose ?~rticles of Incorporat~on and B~~iati~°s
irreE~ocabl~- dedicate residential propert~~ o~~ned b~- the corporation to the charrtable purpose of
providing affordabie housing to lo~~- and moderate income households Limrted partnerships ~~~ath
such a nanprofithousyng del~elopment corporar~on as the general partner are also eligible borro~i~ers
if the nonprofit parmer is the managing general partner throughout the term of the loan and «~ill
receai~e at least ~ 1% of the dej-eloper fee Nonprofit corporations must ha~-e a t~aiid 501(c)(3) or (4 j
des~~nat~on from the Internal Revenue Ser~.~ice
Eli~ible Projects
Eltg~ble pro~ects include acquisit~on. rehabilitat~on, or neti~~ eonstruction of rental housing pro~ects
«~hich
(1 } consist of mobile home unit( s). group home. SRO uruts. or have four or more apartments.
except «;here the Cit~~ I1~ianager finds that the pro~ect «~ill proti-ide a substantial publac
benefit,
(2) are located in the Cit~~ of Santa ~ianica,
(~) are free from siamficant ad~-erse eni-ironmental impacts ekcept those that can be
mrti~ated.
{~) a~oid pertnanent in~'aluntan~ tenant displacement to the areatest deQree feasible in orc~er
to carr;~ out the program and ~
(~} ha~-e at Ieast 51 % of the umts occupied b`~ househalds "~hose ~ncomes do not exceed 80°1~
afinedian Zncome, aaj usted for house}~old size, at time of acquis2tion texcept as appro~=ec~
by the Cit~r 1~lanager)
Pro~ects ~~-hich in~~olve conversion of an e~istmg nonresidential use to residential use are eliaible
Transitional or permanent housin~ may be proy~zded Proaects ~~•hich in~~ol~~e the canti-ersion of
mobile home umts to limited equ~h~ housing cooperatnte o«nership are also permrtted
'~~•~hile the Crt~~ ma~~ not act as a borra~~~er itse~f. the Crty Charter provides that the Cit~-
mai- also ut~lize I'ORCA funds for the de~~elopment af housing pro~ects z~°hich meet TORC.A
requirements
Cansolidated Rental Housing Trust Fund Guidelines Page 29
F .fiOCS1T"G'~H~RE~WPFILESGL:IDELIV'~TFGa~delmz~199S}4pd \rn'ember30.1998
Eligib~e Uses and Acti~ities
Program funds can be used to make laans to eligrble borra~vers ~~-ho ~~-i11 provide affordable ~ousing.
prxnc~pali~~ for lo«~ and moderate Fncome households Eliaible uses of TORCA funds include_ but
are not l~mited to_ the follo«~ng y
(1} acquisrtion and!or rehabilrtation of eligihle rental propert~es;
(2} acquasit~on and conversian of nonres~dent~al properti- to multifam~lti~ or sinale raom
occupanc~~ rental housing unrts.
(3) ne~s construction of rental hausing unrts,
(~) acquisrtion and rehabil~tation of single-room occupanc~~ housFng umts,
(~} prede~~elopment loans up to a period of 24 months for site acquisxuon. prede~~elop;nent
act~~~ities. u~cluding professional se~~ices «~hich cannot be obtained on a contingencS-
basis, and construction Such Iaans mati~ be extended for up to 12 additional months at
the dxscretion of the Housing and Rede~~elapment Manager,
(6) bndge loans up to a period of ten ~-ears to be repaid b`~ equity contributions of limrted
partners. and
{7) provlde rental subsidies for temporary° or permanent housmg for Lo~~~-Income house-
holds
Affordabiliri~ Rec~uirements
All units assisted under this program shall be affardable to households ~~,~ith incomes that do not
e~ceed SO% o~median mcome, and (except for households in occupanc~~ at time of acquisition) shall
be oecupied by house~a~ds «~th incomes that do not e~ceee~ $0% of inec~an ~ncome
Qthe~ Requirements
Labor Standards State pretiailmg «,°age requirements appl~~ to pro~ects of 20 units or more, or in the
event that pro~eet costs eYCe~d $1,OOO,Q00 for ne«• construct~an ar $250.000 for rehab~lrtahon, as
adjusted far mflat~on_
Religious Or~anizations
Ali pro~ects must be used e~clusivel;~ for secular purposes. and must be available to a11 persons
re6ardiess of reiigion I'he housing may not be used for ~~°orship or rel~gious mstrucuon
Consolidated Rental Housing Trust Fund Guidelines Page 30
F'~}]OUS~G SHaRE~w'PFILES'Gti1DELlt;~TF Guidelmes 19~8 t.pd \oezmber 30. E998
VIII. EXHIBITS
Cansolidated Rental Housing Trust Funci Guidelines Page 31
f°O~SIT~G SH4R~~~,\"PFTLES'~GtiiIJELIV TF Gmdel~nzs 1998 ~4pd ]tio~'emper 30 1998
EXHIBIT A
Definitions
Acquisitaon Basis O~~~ner's basis for acqu~sition of the propert;- as determined b~' Standard
accountin~ Proc~edures
Capitalized Reserve Account An account established «~rth funds from capital funding sources
a~~ailable at the time of compleuon of de~~elopment for the purpose of funding future pra~ect costs
Communit~~ HousmQ De~~eiopment Corporation ( CHD~) A pri~rate nonprofit housing de~.-elopment
corporation ~~~hich meets a senes of HUD qualifications prescribed m the HO'~11E Regulations,
includ~n~ the requirement that rt is dui~- or~anized to provide decent housin~ that is affordable to
lo«~- and moderate-~ncome persons, maintains at least one-third of its go~~erning board's membersh~p
for residents af lo~;~-income neighborhoods. other lo~;~-mcame residents, or elected representati~~es
o# Io~~°-income neighborhooa ar~anlzations. and, pro~~ zdes a formal process for loc~,--income pro~ram
beneficiaries to adi~ise the orgamzation in its decisions regarding the desagn. srtin~. de~-eiopment,
and management of af~ordable housmg "
Communrt~- Based De~~elopinent Or~azuzation (GBDO) ~ Housing De<<elopment Corporahon
~r-luch meets the requirements of GDBG regulations as defined in 2~ GFR ~70 20~(a}(2)(c){1}, as
amended from time to nme
Depreciable Basis Oti~.~ner's basis for depreczable costs of the pro~ect as determmed b~- Standard
Accounting Procedures, not includin~ developer fees
Fair ll~arket Rents i1~la~imum rents as publ~shed b~' HUD for the Section 8 programs for the Los
Angeies Area, adjusted for urut size
Group Home A housmg umt ~~~rth separate bedroams and shared k~tchen_ dimng, and/or
san;tar~° faciiities ~i~hic~h is operated far the purpose of pro`-idmg housin~ and supporti~~e sen~ices to
sei:eral uurelated persons ~~°rth special iieeds or disabil~ties, i~at student housm~
\ onprofit Housm~ De~ elopment Corparation ( HDC) A pn~~ate, nonprofit corparation ~~ rth pro~-en
capacity to deE-elop. o«x~ and operate housm~. and ~~~hich has a~-alid S41(c)(3) or (4) desi~nahon
from the IRS
~.imited Equ~t~' Gooperati~~e A form of o~l~nership ~~~hereb~~ the residents form a caoperati~-e
corporation ~~=hich o~;~s and manages the propert~~, and lzhere the return on residents' origmal equit}~
is limited to no more than 10%, as defined in the Galiforma Hzalth and Safet~- Code. Secnor~
33fl07 ~
Lo~~~ and ~aderate Income Households
Fof- Hon~e Ti•t{st Fund afid CDBG Housrr~g Trztst Fund, ancl TORC~I Hoi.~srfzg Trust Fund
Househalds «°ith incomes that do not ekceed SO% of Los An~eles Standard Metrapolltan Statistical
rlrea median, ad~usted for famil~° size, as published b}' the L' S Department of HousmQ and Lsrban
Development (HUD) firom t~me to time ~
For~ Cr.h-~a~r.de Hoissrng Trust Fund Households ~~~rth incomes that do not eYCeed 60°'0 of the Los
~,ngeles County median income, ad~usted for familti~ size_ as publtshed b~° the L"~ S Department of
Housmg and Urban De~-elapment (HL~D} from time to time are c~nsidered lo~.i- income Wrthin this
group of households, those ~~~th incomes that do not exceed 50°ro of the median are consFdered ti:erv
lo«~ income
For Redei~elopntentHousitag Tt~usx F2.snd Households «zth mcomes that do not e~ceed 120% of the
Los tlnEeles Count~- median income. ad~usted for family size, as published b~- the U S Department
of Housing and Urban De~~elapment {HUDj from time to time
11~1a~~imum Affordable Rent A rent ~~hich does not exceed thirt~~ percent (30%) of the ma~~imum
~ncotne level of the income group being sen~ed (see "Lo~~ and Aioderate Income Households"),
ad~usted for uYUt size and utilm•- costs
For Rede~~elopmer~t Housn~g Tra~st Fund the ~Taximum ~fforaab~e Rent for househo~as t~~tth
incomes that do not e~ceed 120°10 of inedran mcame for Los .~n~eles Counh~ shall be 30% of 110%
of such median mcome ~
~~ia~imum Allou~able Rent The legal rent for the unit under Santa il~ianica Rent Control Charter
Elmendment, c~~ith allo~.~~able ad~ustmenis b~~ the Rent Control Board for annual expense increases
or for capital impro~-ements
1\Te~~~ Construction The construction of ne«- housing includin~. but not limited to assembly of
factorv-built modular housing, or conventional ~n-site construct~on
Operatznh ReserF~e A~count An account established far the purpose of fnndzng a deficit in the
pro~ect's operation
Rehabilrtation Garrect~on of local code t~iolat~ons and removal af health and safet~~ hazards.
upgrading of housing units to decent_ safe and samtan~ conditians to comply ~i~ith the Housing
Quali~~ Standards promulgated i~~~ HUD and ~~•ith Zocal standards: reparr ar replacement of nia~or
buildin~ s<<stems or components in danger of fazl~re_ and alteratians_ addit~ons and impro~-ements
to ekpand the number of affardable units. ar needed to impro~e the basic li~~abilrt`°. energy
efficienc~~, accessibilrtS~ for the disabled, or secunn~ of the properh'_ and to reduce ol-ercro«•ding
Rehabihtation Basis Oz~nef s basis far rehabilrtat~on costs ~ncurred for the propertj-, as determzned
b~° Standard ~ccount~ng Procedures. not including de~-eloper fees
Replacement Reser~~e Account An account established for the purpose of fundin~ major repairs or
xeplacement of capital camponents of a build~n~ «•hich reach the end of their economic life and
require replacement
Residual Receipts The gross recefpts from the propert~-, less actual costs of operation,
administration. maintenance, ta~~es, insurance, utilities, management, approti~ed replacement and
operating reser~~es, payments of prmcipal and interest on loans semor to the Cit~c' loan, and req~.ured
debt sen~~ce co~ erage The amount of Residual Receipts shall be calculated based on the a~.tual
income and e~penses set forth in the Annual Operatmg Budget required under the Re~ulatory
A~eement or recorded Co~-enants. as approt~ed b~- the Git~-
AI~SD Resource Mana;ement Department. Cit~~ of Santa Monica This Department «~ill
administer the Program for the Cit~ under the dxxecuon of the Cin~ Manager
Sin~le Roam Occupanc~~ Housin~ Multifamily residential buildings contaimng housing uruts «~th
a m~nimum floor area of one hundred fiftF~ square feet and a maximum floar area of three hundred
se~~enty-fi~-e squaz-e feet ~i-hich ma~t ha~-e kitchen and:'or bathraom faciIities, and i~~here each housing
umt is restricted ta occupanc`~ b~~ no more than t~~-o persons and is offered on a manthl~~ rental basis
or lon~er
Transrtional Housin~ ~1 t~rpe of supporti~=e housing used ta fac~~itate the mati~ement of hameiess
indi~-iduals and families to permanenthousing T~~plcally, transitional housing is housmg in ~i=luch
hoineless people li~ e for up to 2~ months and recei~~e supporhve ser~°ices that enable them to 1i~~e
mare independentl~- The supporti~~e ser~~ices ma~- be proti~ided by the organization managing the
housinQ or coardinated b~- them and pro~-ided bt- other publ2c ar pr~rate soc~al sen~~ce agenczes
ExxrBiT B
HQME PROGRAM SUBSIDY LIMITS
L17T SIZE SUBSIDY LIhiIT'
O Bedroom 569,3$4
One Bedroom 579,~;~
T~.~~o Bedraom 596,71~
Three Bedroom $12~, l 14
Four Bedraom or larger ~$137,337
Ltmats c~re for-1998
EXHIBIT C
Rental Housing Loan Applicat'ron
Ci#y ot Santa Mvnica
Resource Mana~etne~~ ~~~ar~ment
Housing and Reder~elopment D~vf$~on
Rental Housing Loan ApplECation
Loa~ Request $ T~rm (+n yearsy
Purpose of Loan (C~rcle o~reJ
Acq~~sitian 8~ Rehabilitat~on New Construct~on Rehabilitation
PropoSed City Fundfng Source (C~rcle one)
Predeveloprr~enfi ConstrUCt~on ~ermanent rnterrr~/8ridge
Appiicant
Name of Qrgarnzat~on
Street Address
Crty, State 8~ Zip Code
Contact/Title
Phone/Fax
Legal Sfo#us of Appli~ant (Circle one) nanprcfit corparation
general parfner5h~p limited parfnership ;ndividual
Names and Addresses of Pri~cipals {rf f~rm, not tndrv~duat)
for-profit corporatior~
jom~ ven#ure other
F'HO[;SitiG;SH.4RE~WP£i~,~S,GUIDEZINti.oan Appt~cazron u~pd
II I
Rental Hous~ng Loan Appl~cat~on Page 1
Santo Monica Housmg and Redevelopment D~vision
Proposed Pro~ect
Name of Pro~ect =
Street AddreSS _ _ _ _
C+ty, Stvfie 8~ Z~p Code
Total N~mber o# Units
Descripfion of Propvsed Project
Please prov~de
ex~snng ~rope,
Descnpt,on sh~
~
~
F ~iOUSINGLSHAREIWPFIL~SIGUII~LA11L.oeri Anplicsuon wpd '~~
I I I I I IIII I
Rental 1~ousing Loar~ Appl~catian Page 2
Santa Monic~ Hous~ng and Rede~elopment DivESian
{Please circle fhe appropnate categones)
B~~Jdir~g Type
-~
_;
~~-
~ovndation Type
~ ~ull Basement ~ Parf~Qf Basement
PQrk(ng Ty~e
~ Subterrdnean ~ Serni-S~bterranean
~ Row ~ Detached I Semi-f]etached I Walk-up 1 Elevator I M~xed-Use
Crawl Space ~
Tuck-und~r
Sfab/Grade
On-Grade
Existrng Proposed
Stones•
Urnts:
~uEfdings:
Parking Spaces:
Grass Bt~~Sdir~g Sq/~ootage
(excluding parkingJ:
Parkrng 5q~are Footage:
Res~dential Area:
CommerciaE Area:
Year Buil#:
Units Demolished:
Amenitles
Pool Laundry Other.
Type of Soc;~al Services, i~ any
Accessary Burlding~(~ e. Rec Halls, Garage or S~ed Struc#ures, etc.3:
No., type, size
x ~ousasc ~s~v~~n.~s~c[~n~.~rnc.~ wPP~~c~~ ~a
Rer~taE Ho~sirig Loan Appiica~an
Santc~ ~vionrca FlouSin~ and Redevefopment Divis~an
n , f .I .
~ " • ~~~~ ~
.
Rents
Un~t Mix Exist3ng Proposed Sq/Ft
~x~sting
Proposed
stud~o
or~e bedroam
two be~draoms
three bedrooms
four bedrooms
rotal
S~te informa~tion
Lot Size_ Sq Ft
Lo# D~mensEOns. K Ft
Zor~mg
Vanances/condEt~onal use permrts/
other planning approvals required2
Is the pro~ect ~ocated in the Coastal Zone2
Eauioment ahd Serv~ces to be ~nc~Uded ir~ Rent
Rarrges {gas/electrrc) Refngerator ~gas/efecj Air Conditioner
Kafchen Exhausf Fan Dishwasher Garbage Disposal
Laundry Fac~lity Drapes Carpet
Gas Heat Hot Water
WQter Electnc~ty Other•
Do you ha~e a Rent Cor~trol Remo~ai Permit? Yes No
lf yes, please provide the permit r~umber and date af ~s5ue
F 1H0lIS~NGISI;AR~~WPFILE3I~UIDE1.IrilLosn Av~l~cahan vmd
II I I IIIII j f
Rental Housing Loan Applicatjon Page 4
Santr~ Monica ~ious~ng and Redevelapment Division
~~
i
Financing
W~l~ thrs pro~ect seek to utilaze lor~v Er~come ho~s+ng tax cred~ts~
1# yes, esfimated federal credits 9~
es#imated State credit5 __
Wdl the pro~ect seek ta util~ze tax exempf fEnancing? Yes
!f yes, praposed issuer and form af credit enhQncement
Develooment ~eam
Yes No
~4~
No
Nama Confact/TPfle Phona/Foc~irr+He AddVress
'Developer
,4nchHeci
con:~rHarrr
atfomey
Geeeral
Con}rqcfor
Conshvcilan
Manager
RelocaHop
Conaulianf
Ofher
_ ~ E tHOUSING~SHAREIWAFE[.ES1~U[DE~INILosn Appl~cahon ~ ~
I I I I._ ._ _. II _
Rental Housing Loan Application ' ~'C~~~ ~
Santa Mon~ca Housing and Redeveiopment Drvision
Cerfi~cation Sfafement
Please provrde the foflowRng ~nfarmat~on Lea~e no bfanks ff not appllcable, type NJA
(Please attach addrtranal sheets, rf necessary]
Applicant's Name~
2 ~isfi any add+#ional names or afrases, ~xercise of power of at~torney ar~d/or ~
fiduciary ~rust capacitie5 that yo~ are currently using ar have used i~ the past. If any, ~
please expfain ~
~
~
~
~
4
3 Lrs~ al! partnersh~ps, corpora~ions. ~o~nt ventures, and/or lfm~ted partnership '
entities, {mcluding appl~cant, if appl~cab~e), wh~ch you are cu~ently or have been
assaciated with, and desrgnate whether you are/were a pnncrpal and Irst your titie ~~
and responsibditaes, the purpose of the organizat~on and Ets current status ~
3a. Have any ot tt~e erttft~es !~s#ed above been e~tl~er susper~ded, revoJced, ~apsed
^nd/or term~nated for any reason2 If sa, please explain
3b Has the appl~cant or ~~s partners or principals f31ed for bankruptcy2 !~ so, please
state the case number and wheth~r #he case was dism~ssed. d~scharged or ~s curren#.
3c Has the appk~cant ar its partners or pnncipals de~aulted on a financial
obligat~on2 If so, please explam.
3d Is there, ar has there ever been, a settlement und/or~udgement filed or a case
pendmg against the applicant or i#s partners or pnncipals~ If so, please explain.
3e Has a`,lien ever been Fi[ed aga~nst real praperty awned by #he applican# or its
partners or pr~ncipals listed abo~e as a resuit of a ~udgmen#, efc.~ If so, please explam
F 1HOtJ5[NGISIiARE1WPF[LES1Gl3[DEL[i+flLoan Appl~catron wpd .
~I I I lll_ II
Rental Housing Laan Applicat~on Page G
San#a Manica ~fous+ng and Rede~eioprrrent D~visfon
._~
F
t~
~4 Has the applicant or its partners or prEncipals ever been convicted of a felony or
misdemeanor ott~er than minor traffic violations and/or piaced on probafiion, fined or
r=~~ given a suspended sentenee jn court2 ff so, please expla~n.
.,~~.
5 Has the ap~l~can# or ~ts ~artners or pr~nc~pals ever been cited andJor convrcted
af a m~sdemeanor, mcludEng but not hmited to a conv~ctron under local health, fEre,
e~v~ronrnenta! and/or b~ilding ^nd safety laws, relai3ng to the owr~ershfp and/or
management of real prop~rty~ Ef sa, please expla~n
6 Does fhe apphcant hawe any ernployees or relatives who ha~e cla5e
associations wath curren4 or former empfoyees of the 5anta Mor~ECa Cfty Council, City
Manager's Offace, ar the ~esource Management D~vrs~on2 ff so, pfease exp~am
7 Are any current or former employees of the Santa Mon~ca Housing and
Redevelopment ~~v~sion currently employed by the appNcant~ Any relatEVes of any
Housing and Redeve{opm~nt Di~~sion employees~ if so, please state the individual's
name and dates of employment.
8 Are there any Hous~ng and Redevelopmen# Division current or former employees
that ha~e a~~nancial mteresfi m th~s pro~ect2 !f so, state name, dates of empkoymen#
and interest.
9 Lis# all res~dentiai income propert~es which are owned by the applicant or ~ts
partners or cr~ wh~eh princ~pals have cr ~est~d interest
~.
1~ ~oes the appli~at~t or ~ts partners ar prin~ipafs have any income and/or real
prop~rty fiaxes or assessments thaf are past due~ If so, p[ease explain.
~ F IHOUSINGISHARE1WPFiLES1CrUlDELiNILaen Agplroauon rvPd II_ . I
_ ~ I I
Rental ~lo~rsirrg Laan Ap~l~cat~on ~dgE 7
Santa Man~ca Haus~ng and Redevelopment Di~is~on
PRIVACY NOTIFICATION. The ~nformation requested abave ~5 ta be used by t~e Santa
Mon+ca Housing and Redevelopment D~~~S~on to assess the applican#s credEtwarthaness ,.~
lnformat~on prov~ded tl~at is conta~r~ed ~n publ~c record5 cannot be w~thheld from ~_~
disclasure under the Cal~fornia Public Records A~t, Gavernment Code. Sections 6250
and 6254 All other ~nformat~an may be requEred to be discfosed outs~de the agency by
sfa#e and/or federai 1aw
Furrishing all inforrr~at~on requested or~ th~s form is mandatory Failure to pro~ide such
~nforrnc~tion may result in disqualifi~atian or a withdrawal of Hous~ng and
~edevelopme~t DivFs~an's eomrnrtment
CRIMINAL PENALTIES. Any person wno shall knawmgly make or cause to be made,
either direcf{y or indirecfily, any false sfatement ~n wnting, wifih the intent thafi ~t shall be
rel,sd upon, for #he purpose of procur~ng tY~e loan secured by real property s~alE be
guifty of a cnmma! offense, p~ni5hable by a fine not exc~ed~ng ten t~ousand dollars
($10,000 00~ or by ~mpnsonment ~r~ a county ~~il not exeeeding 5~x months, ar by both
fhe fine and rmprisonrr~ent (Cc~irfarrr~a Pena~ code secttons 532{d) and ~32) j
C~NTINIIING OBLIGATION l under5tand that I ha~e a cont-nuing ab[~gatiar~ to prov~de
fhe Hous~ng ar~d Redeveloprrse~t Di~isian wrt~ currer~# and accurate informa~EOn.
Appl~cant rnu$t prov~de to Ho~s~r~g and Redere~opment Drv~sion aff requested
information w~th an Applicant's CertGf~ca~~on Statem~nt for any mdiv~duai or entjty that
HouSing and Redevelopment DtvESion ~n its sole discret~on believe5 is necessary to
evo~uate #he appiicat~on (reasonabty related to the appl~cant~
I, the undersigned, certify that the ~nformaf~on provided to the City of 5anta Monica,
Housmg and Redevefopmenf DiviSion, is firue and correct as of the da#e sefi forfh
oppo5~te my s~gnature or~ th~s appl~cr~tion package ar~d ackr~owledge that arry false or
misleading statements af the information conta~ned may resuft ~n civil liability and
ljab~lity for manetary darnages ta ~he lender, its agents, successors, and assigns, insurers
and any other person who may suffier any foss due to rel~ance upon any false or
mislead~ng statements which f have made on this Cert~fication Sfatement_
Date
Appheant's Name ~
Certif~ed By EPnnt Name}
Signature
Trtle
Federal Tax ID#
F`,.HOli51NG15HARE14~PFI4~S1CrU1D~~.[N1Loan AP~f ication wPd s~ '
I
Rentai Housmg ~oan Applica#ion Pnge 8
Sar~ta Mon~ca I~o~s+ng ar~d Redeve~opment D,vis~on
SpeCiat Supplement for Env~ronmenta~ Re~tew
S F~
S° fn add~hon to the folfowrng ~nforrrraf~on, please ottach f copy each of applrcat,an ~xhrb~n [~ c)
Consfruchon and Desrgn Descnpiron and (~ eJ current photos of s~te, and Assessor Parcel Map(sj w~tf~
parcels ind+cated These matenafs wdl be forwarded separately to the pvrhes respons~ble for
environmental revrew
Applicant
Fro~ect Address
S~te information
Assessor's Parcel #(s)
tot S+xe Sq Ft.
Lof Drmensrons X Ft
Zonrng•
Uses an ad~acent srtes.
Varrances/condltronal use permrts/
other plarnnmg apprava~s requrred?
!s the pro~ectlocated rn the Coastal Zone?
Present Property vse•
Prror Praperty Use.
Number of• Exisfing Proposed
Stor~es
llfilt5:
B~~rd~ngs:
Parkrng Spaces:
Gross Bviiding Square Footage
(exclud-ng parkingJ:
Park~ng Square Footage:
Year Bu~lf:
Un~ts Demolished:
--=
Fi EiOLFSINGISHAREIWPFIi.ES1GiJIDELIMLaanAPPlicat~on_wpd ~ ,III_
~
Rental F#ousing Loa+~ Apphcahon - Specral Supp#emen# Page ~
Santa Monica MavSing and Rede~eEopment Di~ision
Special 5upplement for En~ironmentai Re~iew
Part 11. Questions
,~_-
1 Please descr~be ad~acent u5es and ne~ghborhood characte~stics.
2 IS the property des~gnated or determined elEg~ble for histonc register des~gnat~on at
t~e IocaJ, state or nat~onaJ levelz ~las +t beerr determrned ~nel~gtble2
3 Please ~dentify the source of infarmation vsed to deterrrrme tF~e exact a~
appraximate year of b~~idrng con5#rucfion
4. W~II financing for this pro~ect include the Histonc Rehab~~rtat-an Tax Ged~f2
5 Provide the name and address of any person who has commented or may wish fio _;
commen~ on this protect. '
5 Provide the names and telephone numbers of the pro~ect appl~cant, pro~ect
monjtar, and pro~ect architect and/or contractor
7 Please provrde a eopy of a bu~ld~r~g perrr~~t for eacn b~~lding, if applrcab#e.
8. Are #here any other environmental st~d~es avp~~able for the s~te (i e.
Archaeologacal, hazardous Matenals, Phase I or 11~ 2
~~ ~
F~ HDUSiNGl.SI~AREIWPF1LE51GiflAELfN~I,oaa A~Itcauoa w~d I
Rental Fiousing Loan Application - Speciol Supplement Page 2
Santa Mornca Housir~g and Redsv~lopment D~v~sion
# ~ ~Sb:,,~'y
w, ,
Attachment A
Tenant P~o~le
Please I~st charactenstics of resrdent househofds and ldent~fy where each household falls on the lncome
~pectrum.
~
Incame"
actua~
~~ ~k of persons income,
Number Name o# ~enant in household if known
Above
Low Modera#e Moderate
5a~td Mc~nicc3 ~lousing and Redevefopmen# Division
At~achment A
Page 1
, . . _ , , ,.tl...
'4... ~~, .~' '
Income•
~n~
I~umber
Nama of TeraaM
~ of persons
in household ~~,a
income.
# k~wwn
tow
Moderate
Above
Moderat~
4
~otals
Percent af Units ~ow ~ncome
Perceni of Un~ts Moderate Income
Perc~;nt of Units Above Maderate lncome
*5ee a#tar hed charf #o~ mawmum ~ncome by household size for each ~ncome category.
R~:~tc~ H~~r~g lcian A~pFiC~ai~t,n
San~ca Mcar~iCp Wous~stg ar~d Redevelopment Division
Attachrnent A
Page 2
.,.r.. ,. „-. ';~~ c, ~•,
PROJECT PRO FORMA
Consohdated Rental Housing Trust Fund Guidelines Page 38
F':idUSi1G'SH4RE~w'PFILES GtiIDELIIi'~7F Gutdelines 1545 ~tipd \ocemtrer 30. i993
PROJECt SUMMARY
Pro~ect Data
Pro~ect fYame
Pro~ect Address
Project ~eveloper
Total # Units
Total Land Square Footage
Tatal Gross Bwlding Square Foatage (excluciing parkmg)
To3al Parking 5quare Footage
Total Par~Cing Spaces
Qperations
Rent Income $
Vacancy Rate
Ftent Income Inflation Factor
Commercial InGOme ~
Commeraal fncome fnflation Factor
Laundry & Misc Income
~aundry 8~ Misc fncome Inflat~on Factor
interest Income
lnterest Income Inflation Factor
l~eal Estate Tax Inflaiion
Operating Expenses/linit/Year
OperatEng Expense lnflation Factor
Operating Reseroe
Qperating f~eservelUnitlYear
Replacement ReservelUnit/Year
Replacement Reserve TotallYear
Development Casts
Land Costs g
Development Casts (nat ~ndudtng Land) g
Tptal ~evelopment Costs g
Hard Casts (not including parking} ~
Financ+ng
Construction Laan Amount
Consfructkon Loan Rate
Construction Loan Po~nts
GonstrucEion Loan Term (months)
Con Loan, Rv Out Balance
Permanent Conventional Laan Amount
Permanent Conventional Loan Rate
Permanent Conventronal Loan Term (ysers}
Permanent CanvenUonal Loan Type
~ebt Service Co~erage Ratio
City Permanent Loan Amount
City Loan Rate
City Laan Terrn
AHP 5ubs~dy g
Total Developer Fee g
~eferred Developer Fee $
Tax Credit ~raceeds (estrrnate)
Tax Credit Rate - 9%
Tax Credit Rate - 4%
Tax Credrt Factor
0
0 4%
~~~:
proforma 1998 XLTIPra~ect Summary 11134l98
PROJECT NAME
57REET AnDRESS
GlTY 5anta Manica
NAME OF SPONSOR
~xhtbit 1 (1 of 2)
De~elopment Costs
0
0
0
Prepared 9y
Number of Llnits
Gross Land Area (s~
Gross Bwldmg Area (s~
Gross Non-Residential Area (s~
RESI~ENTIAL ONLY
LAND COSTS
a Land Cost (not including building)
b Purchase Appraisal
c closing costs
d Demolition
e Other (specify)
TOTAL LAND COSTS
TOTAL ACQUISITiON COSTS {bwldmg only)
(lesser of purchase pnce or appraised value)
NEW COI~ISTRUC7lON OR REHA8ILITATlQN
a Off-site Improvernents
b Ehwronmental Abatement
c Site Work_+Preparakion
d Structures
e Park~ng
i Contractor's Overhead~Pro#it
g Bond Premwm
h Other (specify}
TOTAL CONSTRUC7I~N OR REHA6 CDSTS
ARCHI7'ECTURAL FE~S
a pesign & Superwsion
b Reimbursables
c Other (specify)
TOTAL ARCHITECTURAL COSTS
SURVEY AN!? ENGIN~ERIIUG COSTS
a CEVd;Surrey
b Sods
~ Deputy Inspector and Lab Tests
TOTAL SURVEY AND ENGENEERI{riG COSTS
CONSTRUCTlON !l1~T~REST AND FEFS
a Construction Loan Jnterest
b Bndge Loan Irtterest
c Ongination Fee
d Credit Enhancement and Apphcahon Fee
e Real Estate Taxes
f Insurance
g Title & Recording
h Appra~sal
~ Environmental Revie+u
1 8ank Construction Morutorrrrg
k Ofher Fees {including bond fees)
70TAL CONSTRUCTION IIV7EREST 8~ FEES
TOTAL
COST
Parkmg Square Footage
Total Parking Spaces
0
0
$ PER $ PER 5F S PER 5F % OF
UNIT BUIL~ING LAND TOTAL
#DIVrOi #DIV~D' #~IV~O' #DIV;Q~
#~IVrOi #171V%D' #DIV~O' #D1V:Oi
#DIVfOi #DIV~O' #~IV'0' #DIV;O'
#DIVrO~ #~IV%0' #DIV~O' #DIVi6'
#DIViOi #DIV~O' #DIV;O~ #DIVlp'
#D;Vr'0~ #~N~O~ #DiV,'0~ #DIV~O'
#DIV~O' #dNiO~ #DIVrOi #~NiO'
#QIV;O' #p1V,'a~ #Dlvia~ #DIV,'D'
#DIViO' #~IVr6~ #DIV~~~ #QlV~O'
#QIViO' #~IVl6~ #pIV~O~ #DEV~D'
#DIViO~ #~IVr6~ #DIVr~~ #DiV%0'
#QN+D' #DIV~O~ #biVfO' #DIV:O'
#QIViD' #DIV~O' #~IVi'0' #DIV;O'
#~IV+O' #DIV~O' #dIViO' #RN~O'
#QIV+O' #dIVfO' #DIV~O' #DIVrO~
#dIV'0' #D1V~0' #dIV~O' #pIV;Di
#DIViOi #DIV~D' #~N;O' #DIV,'0i
#~NIOi #~IV,'D' #~IV~O' #DIViQ~
#~IV10i #DIV`0~ #DIV;O' #D1V~0~
#DIViOi #DN~O' #~IVrO' iFpIV~O'
#bIV~O' #OIVrO~ #DIV~O~ #DIVi4'
#~IV~O' #~1Vr0~ #DIVrO~ #RIV,'D~
#pIV~D' #DIV~O~ #DfVrO' #~iV~O`
#DIVrD' #DIVid~ #DIV14' #DIV~O'
#~DIV~Oi #pIV;D~ #D1V7D' #D1V.'pi
ifDIV~Oi #~IV70' #~N~O' #DIVtQi
#DIVIOi #DIV%0' #DIV:4' #p1V`~~
#~IViO~ #~IV~O~ #~EV;O~ lFQIV'0"
#DIV16' #dIVIO~ #aNiOi #DIV~O'
#DIV~4' #~IV10i #01V;Oi #dIV~~'
#pIV~O' #QIViOI #~IVrO' #OIV+O'
#QIV~d' #~iViO~ #DIVr4' #aIViD'
#DIV~D' #DIVi4' #pIV;O' #~IV~O~
#DIV~`0' #~IVrb' #QIViO' #DfVlO~
#DIVIOi #DIV%0~ #DIV,'D' #DIViOi
#~NI01 #DIV~O' #DIV%0' #DN,O~
proforma 1998 XLTlDevelopCosts 11/30/98
Exhibil 1 (2 of 2)
DEVELOPMENT COSTS
RESiQENTIAL ONLY
PFRMANENT FlNRNCING
a Loan qrigmation Fee
b Credit Enhancement
c Title ar~d Recording
d Ot~rer (specrfy)
TOTAL PERMANEN7 FINANCkNG COS75
L~GAL FEES
a Lender Legaf Costs Paid by Rpphcant
6 Real ~state Legal
c SyndicatEOn Legal
d Other (spectfy)
TOTAL LEGAL COSTS
RESERVFS
a Replacement Reserves
b dperating Reserves
c Other Reserves
~OTAL RESERVE COSTS
TOTAL CONSTR CONTING~NCY COSTS
QTNER
a TCAC ApplicatwnlAllocatro+i~Morr~tar~ng Fees
!~ Phase i, Asbestos & Lead
c Local Permit Fees
d Marketing Expenses
e Lease-up Expenses
f Relocation Expenses
g Furnishings
h AccountinglAudit
i Organizational Costs
} Soft Cast Contingency
k Constructian Management
I Other (specify)
TOTAL OTHER COSTS
SUB-TOTAL RESI~EN7lAL COSTS
DEVELOPER COS7S
a Consultankr"Processing Agent Fee
b Other {specify}
c Developer Fee
TOTAL DEVELOPER FEE
TOTAL. Pi~OJECT COSTS
Total pro~ect costs per unit
TOTAL S PER $ PER SF S PER SF % OF
COS7 UNIT BUIL4ING LANQ TOTAL
#DIV~O~ #DEV;O~ #DIVF4i #DIV~U'
#DIViO' #DIV,'a~ #~]V~O~ #DIV;O'
#DIV%~' #~IVr6~ #pIV10' #RIV:O'
#QIV~fl+ #DIV'Q' #~iV~~O' #~IV'Q'
- #DIV~O` #DIV~O' #DIVl6' #pIV'0'
#DIV;O~ #DN~O' #aIV;D' #DIVfO~
#~IV;ai #DIV~O' #DIVrO~ #DIV'0~
#DIV±41 #QIV;O' #~IVfO' #DIV,'fl'
#DIVlO~ #DIViO! #DIVrO~ #aNfa'
- #DIV~6' #DIV~O~ #plVrOi #~IV+O'
#~IV•'~' #D1Vi4' #pIV~O' #DIVi'0'
#~IV;O~ #DIV;O' #DIV;O~ #~IViO~
#D1Vf0~ #DIV;O' #dIV;O' #DIVFO~
- #DIV~O~ #QIV;D' #DIV,'0' #DIV~O'
#D1V~0' l~DIV10~ #DIV;O~ i~~IV~'~'
#RJVrO' #D!ll~b' #pIV16' #plVlD'
#Q{V+0' #pIViO' #DIV'0' #DIVfO~
#DIVIO~ #DIV~O~ #~IV~O" #DIViO~
#~IV10~ #QIViO' #RIV~O' #DIVi'0~
#DiV.~01 #C71V'0' #DI1/~0' #DIVra'
#DIV~O~ #DIV'0' #DIV~O~ #QIV%0'
#~1V~0' #dIVlO~ #DIV10~ #~IViD'
#DNiD' #~IViOi #~IVrOi #~IV;D'
#DfV~b~ #ONiO' #DIViO' #DIi/r0'
#DIViO' #DIViO' #~IViO' #O1V10~
#QIVi'D' #DIViO' #OIVi'0~ #QIViO~
#Q1V,'0~ #DIViO' #DIV~O' #DIViO'
- #~IVrO~ #DIVr'0' #~IV'0~ #DIViq`
- ~oi~;a~ ~ai~,oi uoi~ra~ ~oi~;o~
#DIV;O' #~DIV;O' #dIVlO' #DIVIOi
#D1Vf0~ #QIV+O' #~IV~O' #DIV~O~
#DIV'0~ #DlV;O~ #DIVrO~ #DIV~O'
- #QIV~4' #DN~O~ #DIVrOi #QIV•'0~
- #~IV~O' #DlV~4' #DlV16' #DIVIfl'
#DiV~O' #dIV~O~ #D1V~D' #DIV~O' #~IV;O~
profarma 1998 XLT~D2velopCosts 11/3019$
ExhibK 2
RENT SCHEDUI~E
PROJECT NAM~ 0
STREET Aa~RESS 0
SRNTA P~EOIs11CR, CA Sartta RAon ica
QEVELOPER D Prepared By 0
PropQSed ' ' • ' : . '
(a) (b) (c) (d) (e) (f] (g} (h} (i) U) (k)
Unit Type 8~ lJnit No of Net Rent Total Util AIIo+M Tota[ Metlian Tatal Market Tota!
°,6 of Median SqiFootage Units Per Un3t Net Rent Per Und Gr Rent Rent Median Rent Markei
(less uttls) (cxd) {e+(cxfl) (cxh) (cx~)
SRO
EFFICIENCY
316 - - - -
• - 406 - - ' - •.~ ~ -
• 495 - - - -
1 BDRM
331 - • - ~ - -
- . 428 - . - - . -
*• 524 - - - ' -
2 BDRM
" 395 - ' - s - .
. • 510 - - - .
ti 62rJ ' " _ • '
3 BE}RM
. 461 - '~ - . - ' .
595 - - •.~ - -
728 - - - 'r -
4 BDRM
. • 522 - - - • -
~ 671 - - . - . -
- ~ 819 - - • - • -
MANAGER'S -
MONTHLY TOTAL - - - -
ANNUALTOTAL - - - -
TOTAL UNlTS 0
PROP05ED AVG AFFORDABILITY #DIV~O'
' Per Hausing Authanty
proforma 1998 XLT~Rents 11/3Q/98
Exh~bit 3
~PERATING EXPENSES
PROJECT NAME -
S7REE7 Ad~RESS -
CIIY Santa Monica
NAME OF SPONSOR -
repared By
-
Provrde explanatron far each llne rtem on separafe Aage
ANNl1A~ MONTHLY UNIT~YEAR UNITlMONTH % OF 70TAL
1 MANAGEMENT
a Co~tract Management ~ee - #~1Vi~~ ~DlV~O' #DIV10'
TOTAL MANAGEMENT - - #DIViO~ #DIV~O~ #DIVrO~
2 ADMI[~f15TRATION
a Marketing - Leasing - #DIV~O' #bIV~O' #DIViOi
b Audik-AccountingrBookkeeping - #~IV~p' #DIV%D~ #dlVi4i
c Legal - #OIV~O' #DiV~O" #DIVrOi
d ~ffice Expenses - #DIViD' #pIV,'D' #DNIO~
TOTAL ADMINISTRATION - - #OIViD~ #DIV+O' #QIVrO~
3 SALARIES AND B~~IEFITS
a ~n-5ite ManagerrLlsst Manager - #DIV;D' #DJ1/-'0~ #DlVrb'
b Maintenance Personnel - #~IV%0~ #~lV~Oi #DIV%0'
c Janatoria! Personnel - #DIV~O~ #dEV;Oi ~FDIV,'D'
d Case Manager - #DIV~O~ #DIVrQ~ #DIV,'0'
e Housekeepers - #DMO~ #~IV10~ #dIV,'0'
f Payroll Taxes, Ins , Workers Comp - #aIV,O~ #DiV~Q` #DIV~'D'
T07AL SALARIES - - #DlVrO~ #DlVfO' #DIVfl'
4 MAINTENANCE
a Supplies - iiDIV~O' #DlV~D~ #QIVrOi
b Repa]rs Contract - #DIV!0' #D1V~0' #^IVrO!
c Pest Cahtrol - #i71V~17' #QfV~O' #~IWCI+
d Grounds Contract - #DIV~O' #~IV~O' #DIVi~"
e Intenor Painting - #bIV~O' #I~IV~O~ #DIV;4'
f Un~t Preparation - #~IViO' #DIV;Oi #DIVrO'
TOTAL MAINTENANCE - - #DIVlO' #DkVla~ #DIVrO~
5 UTII.ITIES NOT PAID BY TENANTS
a Trash Removal - #DIV;Q~ #aIViO' #pIViO'
b Electnaty - #DIVrO~ #~IVrO' #DIV'0'
c WaterrSevrer - #DiVrO~ #DIV~Q' #DIV'0'
d Gas - #DIV1Q' #DIV%4' #dIV10~
TOTAL UTILITIES - - #DIV~4' ~EDIVi4' #R1V10~
6 lNSURANCE
a Property & Liahdity Insurance - #DIV;'D' #QIV~O~ #DIViO'
TOTAL IIVSURANCE - - #DN~~' #DNiO~ #DIV~D~
8 OTNER
a Partnersh~p Filing Fee - #DIV~O' #DIV%4' #dIViO~
b Support Sernces - #DIV%0' #D1V;D' #~NlOi
c Rent Control Fees - #DIV;O~ #DIV,'0' #QIV~O~
TOTAL 07HER - - #DIVlD' #dIV70' #DIViO'
SUBT~~AL OPERA7ING EXPENSES - - #~~IVIO~ #~{V~O~ #DIVlO~
Real EstateTaxes - #DIV~O~ #DIV~O' #~N;'0'
TOTAL OPERATING EXPENSES - - #DIVIO~ #DIVlOt #~N~U~
proforma 1998 XLT1Expenses 1 ~ /30/98
Exhihit 4 (1 of 2)
3U YEAR CASH FLOW ANALYSIS
PROJEc:T NAME 0
STREET ADDRESS Q
SANTA MONICA, CA 5anta Monica
dEVELOP~R 0
A55lJMPTIONS Residential Inc Inflation 0 0'~, Other Vacancy Rate .,.,.~,.:,,}„~~ Yr 1 Stable Laund lnc .
Other Inc Intlation .. :`:~~8 Op ~xpense - Yr 1 Subsidy Inc -
Zaurod !nc Inflatio~ x 0 D96 Operat~ng Reserue Canventional l.oan Rate 0 00%
Subsidy Inc knflat~on ...:;~~ Replacement Reservelunitlyr Conventiona[ Loan Yrs p
Op Expense Inflation 0 0°,G Yr 1 5table Residential Income - Conventional Loan Type RMORTIZED
Res Vacancy Rate 0 fl°k Yr 1 Stable Other Income ~: s°~s~~~i ~.;>
..~..v .. wn4.. k s} ~ . pebt Coverage Ratio 0 p0
Real Estate Tax Inflatron 2 0';h Number of Units p
YEAR 1 2 3 4 5 8 7 S 9 10 11 12 13 14 15
Residentiallncorne - - - . _ _ _ _ _
Other lncoma - - - - - - - - - - - - - - -
Laundry& Misc Inc - - - _ _ _ _ _ _ _ _ _ _
Subsidy Income - - - - _ _ _ _ _ _ _ _ _ _
GROS5INCOME - - - - - _ _ _ _
Res Vacancy - - - . - _ _ _ _ _ _ _ _ _
Other Vacancy - - - . - _ _ _ _ _ _ _ _ _
EFF GROSS fNC - - - _ _ _ . _ _
Operating Expenses - - - . _ _ _ _ _ _ _ _ _ _
Real Estate Taxes - - - - _ _ _ _ _
Operating Reserve #VALUE~ #VALUEf #VALU~i #VALUEi #VALUE~ #VALUE! #VALUE! #VALUE~ #VALUE~ #VALUE~ #VALUE~ #VALUE+ #VALUEi #VALUE~ #VALl1E~
Replacement Reserv 3FVALUE~ #VALiJE~ #VALUE~ #UALUEt #VALUE~ #VqLUEi #VALiJE~ #VALUE} #VALIJE+ #VA~UEi #VALUE~ #VALUE} #VALUE~ #VALU~i #VALUEf
NOI BEFORE QEBT #VALUE~ #VALUEi #VALUEt #VAWEi #VALUE~ #VALUEi #VALUE~ #VALUE+ #VALt~E+ #VA~UE~ #VALUE~ #VALUEt #VALIJEI #VALUEI #VALUE~
bebt S~rvice #VALUE~ #VALIJEi #VALU~i #VALUE~ #VALUEi #VALU~f #VALLIEI #VALl1E~ #VALIJEi #VALUE} #VALUE~ #VALUE~ #VALUE~ #VALUE~ #VALUEi
CASH AVAIL #VALUEI #VALUEi #VALU~I #VALUE~ #VALUEi #VALUE} #VALUE~ #VALUEi #VALIJEi #VALl1~i #VALUEi #VALLIE~ #VALUE~ #VALUEi #VALUE~
D5C #VAL.UE~ #VALUEI #VALUE~ #VALUE~ #VALUE~ #VALUEi #VALUEi #VALl1El #VALUEi #VALUEi #VALUEi #VALUE~ #VALlJE~ #VALUEi #VALUE~
proforma 1998 XLT134 Yr, Cash Flow 7 4f3Q198
Exhil~it 4 (2 of 2)
30 YEAR CASM FLOW ANA~.YSIS
PRDJECT NAME 0
STRE~T ADDRE55 0
SANTA MONICA, GA Santa Mornca
D~VELOPER 0
ASSIIMI'fIUNB Residential Inc InFlation 0 0';~ Other Vacancy Rate 0",G Yr 1 5table Laund Inc -
Other Inc inflation 0'~ Op EXpense - Yr 1 5ubsidy !nc -
Laund Inc Inflatcon a 0% Operating Reserve Convenhona! Loan Rate 0 Dd't4,
Subsidy Inc Inflatia~ 0'% Replacement Reservelunitlyr Conventional Loan Yrs 0
Op Expense Inflation 0 0°4~ Yr 1 5table Residential Income - Conventional Loan Type AMnRTiI.Fn
Res Vacancy Rate 0 0'~, Yr 1 Stable Other Income - [le~t Coverage RaUo 0 00
Real Estate Tax Inflatian 2 09h Number ot Units 0
YEAR 1Ei 17 18 19 20 21 22 23 24 25 26 27 28 29 3D
itF~ in~~~,~ - - - - - - - - - - - - - - -
Oih~ar Inr.omr. - - - - - - - - ' - - - - - -
& Mi:~.c Ini~. - - - - ' - ' - - - ' - ' ' -
uuUSiAY - ' - ' ' - - - - - - - - - -
UkCYS ~ INC
Rr.s Vcnr.y - - - - - - - - - - - - - - -
Uther Var.3ncy - - ' ' - - - ' - ' - - - " '
Ef'I' 612(.7S`1 - - - - - - - - - - - - - - -
Oper EKp - - - - - - - ' ' ' - - - - '
~t E TA%r.c " ' ' " ' ' ' ' " ' _ ' ' ' '
c~per Rr,srv #VALUE~ #VALUE~ i~VALUE~ #VALUE~ #VALUE~ #VALUE~ #VALUf~ #VALUE~ #VALUE~ #VALUE~ #VALUE~ #VAI.IJE~ #VALUE~ #VALUEI #VALUE~
ReplcmtReev #VALUE} #VALUEI #VALUE~ #VALUE~ #VALLIE~ #VALUE~ #VALUE~ #VALUE~ #VALUE~ #VALUEI #VALUE~ #VALUEt #VALUE~ #VALUEI #VALUEt
Nni~arraROS #VALUE~ #VALUEi ~fVALUE~ #VALUEI #VALUEI #VALUEi #VALUE~ #VALUE~ #VALU~i #VALUEI #VALIJEI #VALUE~ #VALUE~ #VALUEi #VALUE~
[~ebtsr,rvFae #VALUE~ #VALl1~~ #VALl1E~ #VALUE~ #VALUE~ #VALIJEt #VALUEI #VALUE~ #VALUE~ #VALUE~ #VALUE~ #VALUE} #VALlJE1 #VALU~~ #VALUE}
CASHAVAIL #VALUEi #VALU~i #VALUE~ #VALUE~ #VALUE~ #VALUE~ #VAWEi #VA~UE~ #VALUEi #VALUEi #VALU~~ #VALUE+ #VALUE~ #VALIJE~ #VALUEt
D5C #VALUE} #VALUE~ #VALUE~ #VALUE~ #VALUEi #VALt1Ei #VALUEi #VAWEi #VALUEi #VALUE+ #VALUEi #VALIJE~ #VALl1El #VALkJE~ #VAtUEi
proforma 1998 XL.T130 Yr, Cash Flaw 11/30/98
Exhibkt 5
FINANCING
PROJECT NA~UIE 0
STREET ADDRESS 0
CITY Santa Manica
NAME OF SP~NSOR D Prepared By -
Sources Summary-THROUGH CONST RUCTION
Total Per Unit Percent
Construction Loan ~'Jlll UE' #VALUE~ #VALUE'
AHP Subsidy - #DIVIO' #VALUE'
Tax Credit Proceeds #VALUE~ #VALUE~ #VALUE'
Other defered de~eloper fee #DIVIfl' #VA~UE~
Gdy l.oan #VALUE' #VALUE' #VALUE'
Tofaf Pro~ Costs #VRLUE' #VALUE~ #VALUE'
Sources 5ummary-PERMANENT
Total Per Unit Percent
IUlax Conven Loan #VALUEi #VALUEi #VALUE~
AHP 5ubsidy #DIVIO~ #diV/0'
Tax Credit Proceeds #VALUE~ #VALUE~ #VALUE~
Other (specify) #DIV/0~ #DIVlO'
Ciry Loan #VALUE~ #VALUE~ #VALUE~
Total Pro~ Costs - #D1V/0~ #~IVIO'
Sources Sumrnary-C1TY FINANCI3~1G
Total Per UniE Percent
Acquisition - #DIVIO' #DIVIOi
Pre-dev (cum } #DIVIO' #OIVIO~
Construction (cum } ~~f1'~LIJE' #VALUE' #VALUE~
Permanent (cumulative) ~~~~il,P' #VALUE' #VALUE'
Maximum City Loan
# Units LoanlUnit Total
OBR -
1BR -
2BR -
3BR
ABR
Total - -
Maximum Developer Fee
iorAcq/Rehab Prolects
15°~0 of hasi5 nof Encf acq o~ deve[ fee + 5°!o acq -
for 1Vew Constructron Profects
Percentage of elig~bie basis - "' ad1ust formula based on # of un+ts
1-20 unrts 9%
21-36 units 8°10
31-50 units 7%
over 50 units 6%
S10.000 per unit -
Allowed Developer Fee -
profarma 1998 XLllFinancing 1 1/3019$
Exhibit 6 (1 of 3)
TAX CR~DIT ANALYSIS
PROJECT NAME 0
STREET ADDRESS 0
CITY Santa Monica
NAME OF SPONSOR 0 Prepared By $ -
RESIDENTIAL ONLY ~ Pro~ect Costs I I 9% Basis ~ I 4% 6asis I
LAN~ C05TS
a Land Cosi {not m~luding budding) S - XXXXXXXXXXX XXXXXXXXXXX
b Purchase Appra~sal 5 - XXXXXXX7CXXX XXXXXXXXXXX
c Clos~ng Costs S - XXXXXXXXXXX XXXXXXXXXXX
d Demolition S - XXXXXXXXXXX XXXXXXXXXXX
e Other (specify) 5 - XXXXXXXXXXX XXXXXXXXXXX
707AL LAND COSTS S -
TdTAL ACQUISITION COSTS (bwlding only) 5 - XXXXXXXXXXX S -
{lesser of purchase prFCe or appraised value)
NFW CQNSTRUCTION ~R RENABlLITATfON
a Off-site lmprovements 5 - S - S -
b Environmental Abatement ~ - S - S -
c SEte WorklPreparation 5 - 5 - 5 -
d Structures 5 - S - S -
e Parking S - S - 5 -
f Contractors Overhead/ProFt 5 - S - S -
g Bond Premium 5 - 5 - 5 -
h Other (specify? 5 - S - 5 -
TQTA~ CONSTRUCTION OR REHAB COSTS S - 5 - $ -
ARCNlTFCTURAL FEES
a Design & Su~ervisrart $ - 5 - S -
b Reimbursa6les $ - S - S -
c Other (specify) $ - 5 - 5 -
~OTAL ARCHITEGTURAL CQSTS $ - 5 - S -
5LlRVEYAND ENGIIVEERING COSTS
a Civil/Survey $ - $ - $ -
b So~ls $ - $ - $ -
c deputy Enspector and Lab Tests $ - $ - $ -
TOTAL SURVEY AND ENGINEERING COSTS $ - $ - $ -
CONSTRUCTION 1IVTEREST AND FEES
a Construction Laan interest S - S - S -
b Bndge Laan Interest S - S - S -
c Ong~natian Fee 5 - S - 5 -
d Cred~t Enhancement and Application Fee S - 5 - S -
e Real Estate Taxes S - 5 - S -
f Ensurance S - 5 - S -
g Title & Recording S - S - 5 -
h Appraisal S - S - ~ -
~ En~ironmental Review a - $ - $ -
~ eank Construction Mondonng $ - $ - $ -
k Other Fees (jnciuding bond fees} $ - $ - $ -
TOTAL CONSTRUCTION INTEREST & FEES $ - S - 5 -
proforma 1998 XLTITCAC 1 1/3a198
Exhibit 6 (2 of 3}
TAX CREDIT ANAI.YS~S
RES]dENTIAL ONLY ' Pro~ecE Casts I I 9% Basis I I 4% Basis I
P~RMANEN7 FlNAlIlCIIVG
a Loan Origination Fee a - XXXXXXXXKXX XXXXXXKXXXX
b Credit Enhancement $ - XXXXXXXXXXX XXXXXXXXXXX
c T~tle and Recordmg $ - XXXXXXXXXXX XXXXXXXXXXX
d Other (specify) $ - XXXXXXXXXXX XXXXXXXXXXX
707AL PERAIIANENI" FINANCING COSTS $ -
LEGAL F~~S
a Lender Lagal Costs Paid by Apph~ant $ - S - 5 -
b Real Estate Legal $ - XXXXXXXXXXX XXXXXXXXXXX
c Synd~cation Legal $ - XXXXXXXXXXX XXXXXXXXXXX
d Other (specify) $ - S - 5 -
TOTAL LEGAL COSTS $ - 5 - 5 -
RES~RVES
a Replacement Reserves $ - XXXXXXXXXXX XXXXXXXXXXX
b Operat~ng Reserves ~ - XXXXXXxXXXX XXXXXXXXXXX
c Other Reserves $ - XXXXXXXXXXX XXXXXXXXXXX
TbTAL RESERVE CpS7S ~ -
TDTAL COI~STR CONTINGENCY GOSTS ~u - 5 - S -
OTHER
a TCAC ApphcationlAllocatian/Monrtonng Fees ~ - XXXXXXXXXXX XXXXXXXXXXX
b Phase 1, Asbestas 8~ Lead S - 5 - S -
c Local Permd Fees S - S - 5 -
d Marketing Expenses S - XXXXXXXXXXX XXXXXXXXXXX
e Lease-up Expenses ~ - S - 5 -
f Relocation Expenses 5 - 5 - 5 -
g ~urnishings ~ - 5 - S -
h AccountinglAudiE ~ - 5 - 5 -
i Organizational Costs S - S - S -
~ Soft Cost Cont~ngency $ - 5 - S -
k Construction Management $ - 5 - 5 -
I Qther (speafy) $ - S - S -
TOTAL OTHER COSTS $ - S - S -
SUB-~OTAL RESIDENTIAL COS75 $ - 5 - S -
QEVFLOPER COSTS
a ConsultantlProcessing Agent Fee $ - $ - $ -
b Other (spec~fy) $ - $ - $ -
c Net Oeveloper Fee $ - $ - $ -
TOTA~ DEVELOPER FEE $ - $ - $ -
TOTAL PRQJECT GOSTS I~ '~ I$ " I I S - I
Total pro~ect costs per unit #DIVlOi
proforma 1998 XLTITCAC 11130/98
Exhibit 6 (3 vf 3)
TAX CREDIT ANALYSIS
~ Pro~ect Casts I I
TOTAL PRQJECT AM~ 8AS15 COSTS $ - $
Less BMR Federal Loan or Grants $
Used to F~nance Costs tn 9% Sas~s
TOTAL PROJECT BASIS $
MAXIMUM ALLOWABLE TAx CREDIT 6A51S
# Unrts
OBR -
1BR -
2BR -
3BR -
48R -
Total -
Treshhold Basis Limit Ad~ustment (enter 0 i# no ad~ )
Maximum Basis per TCAC
TOTAL ELIG[BLE BASIS (lower of pro~ect basis or max ailowable bas~S}
Trmes Nrgh Gost Area Ad~uslrrrertt
TOTAL ADJUSTED ELIGIBLE BASIS
Trmes Raf~o of Low lncome Unifs to a!! Unrfs
FOTAL QUALlFIED BASIS
Trmes Appl~cable Federa! 7ax Credrt Rate
TOTAI. ANNUAL FEDERAL CREDIT
(Input Q for colu~n that is not approprEate)
Trmes Tax Gredrt Factor (cents on the ~)
ES71MA7ED SYNDECATIDN NET PROCEEDS
9% Basis I I 4% Basis I
- $ -
- $ -
LA County Cap/E7evator/7998 Tata!
^ , 'r.t:•i -
~9 :3~ -
~v 7~~; -
17'7 1' ~ -
1•r?37 -
#VALUEi
#VALUE~ #VALUEi
#VALUE~ #VALUE~
130 4°/a 13D 0%
#VALUE~ #VALUE~
~..`~ J. ,4i.. i~~i
#VALUE~ #VALUE'
a 00% 0 Q~%
~ JkLUE' ,~VF~LUE
I #VALUE' ~ I #VALUE~ ~
profo~ma 1998 XLTITCAC 11130/98
Exhibit 7
BOND F~ES WORKSHEET
#~RO.{ECT NAME
STREET ADDRESS
CITY Santa Manica
NAME OF SPONSOR - Prepared By S -
Amounf Notes
Initial Bond Financing Amount
Permanent Bond FinancEng Amount
Lender vr Credit 5upport Provider Costs & Fees
Lender Construction Fees
Lender Permanent Fees
Borrower Costs
Borrower's Advisar
Costs Unique to Bond F~nanang
CSCDA Fee
Bond Counsel
CSCDA Counsel
Trustee
Rebate Cost
Fees to CDIAC
Fees to CDLAC
Total Transactron Costs
Bond BndgelConstruction Financing Interest
TOTAL BOND TFtANSACTION COSTS
proforma 1998 XLTIBond ~ees 1113a/98
Exhibit 8 (1 of 2)
SOURCES & USES THROUGH CONSTRUCTION
PROJECT NABIIE 6
STREET ADbRESS a
CITY 5anta Monica
NAME OF SPON50R 0 Prepared By
Number of lJn~ts
' Note 5ee Exh~bit 5 for total amounts funded by each lender Gross Land Area {sf~
Gross BwldingArea (sfl
Gr Non-Residential FI Area
TOTAL • '
RESIDENTIAL ONLY C05T ' . •
LAND COSTS
a Land Cost (hot inclUdfng bwlding)
b Purchase Appra~sal
c Closing Casts
d ^emol~tion
e Other (specify)
TDTAL LAND COSTS
TOTAL ACQUI51TlflN COSTS (budding anly)
(lesser of purchase pnce or appraised value)
NEW COIVSTR1IC710N O!? l7ENA81LlTAT10IV
a Off-site Improvements
b Ehvironmental Abatement
c Sde Work'PreparaUon
d Structures
e Parlang
f Contractor's OverheadrProfd
g Bond Premwm
h Okher (specify}
TdTAL CONSTRUCTEON OR REHAB COSTS
ARCNlTECTZIRAL FFES
a deslgn & Supervision
b Reimbursables
c Ofher (specify)
T~TAL ARCHITECTURAL COSTS
SURVEY AND ENGlNEFRlNG COSTS
a CiviliSurvey
b 5oils
c Deputy Inspector and Lab Tests
YOTAL SURVEY AND ENGINEERING COSTS
CONSTRUCTION 1NTEREST AND FEES
a Construction Loan [nterest -
b Brtdge Loan Interest -
c Origination Fee -
d CrecEd Enhancement and Apphcation ~ee -
e Real Estate Taxes -
f Insurance -
g Title & Record~ng -
~ Bank Construction Monitoring -
TOTAL CONSTRlfCT10[rE INTERES'f 14 FEES - - - -
proforma 1998 XLT,Sources 8 Uses ~ 7130/98
~xhibit 8 (2 of 2)
SOURCES & l1SES THROUGH CONSTRUCT[ON
TOTAI.
RESIDENTIAL ONLY COSF Bank
PERMANFNT FllVANClNG
a Loan Orig~nat~on Fee -
b Credit Enhancement -
c Title and Recording -
d Other (speqfy) -
TOTAL PERMANENT FINANCING COSTS - -
LEGAL F~ES
a Lender Legal Costs Paid by Applicant -
b Real Estate Legal -
c 5yndication Legal -
d Other(specify) -
TOTAL LEGAL COSTS - -
RES~RV~S
a Replacement ReserVes
b Operating Reserves
TOTAL RES~RVE COSTS
ToTAL CoNsTR CoI~TiNGENCY COSTS
OTNER
a TCAC Appl~cationfAElocationiMonitonng Fees
b Phase 1. Asbestos 8 Lead
c Local Permit Fees
d Marketing Expenses
e Lease-up Expenses
f Relocatloh Expenses
g Furnishings
h Account~ng~Aud~t
~ Soft Cost Cantingency
k Construction Management
I dther (specify)
TOTQL OTHER COSTS
SUB-TOTAL RESEDENTIAL CDSTS
DEV~LOPER C05TS
c Developer Fee
a Consultant'Processing Agent Fee
b Other (speafy)
TOTAL DEVELOPER FE~
T07AL PROJEC7 Ca5T5
Total pro~ect costs per unit
aeferred To
Other Permanent
#DIV~O'
proforma 1998 XL7~So~rces 8 Uses ~ 1/30198
EXHIBIT D
Checklist for Loan Closing
Checkiisf
Rental Hausing Loan Application
~anta Manica Hausing and Redevelopment Divis~on
^ Applicc~tion
^ Aftachm~nt A - Tenant Prof~le
^ Spe~ial 5upplement for ~nvironmentai Rev~ew
^ Sife and Project Informatian
1 Survey of site, ~f availanle
2 Legal Description of `h2 Properfy
3 Construct~on and ~Jesign ~escrption
4 For AcquFSit~on or Rehabilitat~~n Prc~ects - Property inspection Report
and/or ~e#ailed Work write-~Jp on a unit by uni~ basis
5 Schernatic d~signs, if ava:fab~e
6 C~rrent Pl~o~os af Sfte
7 Evidence of S~#e Contro[
8 Prelim~nary T~tle Report
9 Appraisal, ~f a~ailable
10 C~rrent Ren~ Roll far ex~sting tenan~s of acc~~~s~t~on and rehabil~tation
pra~ects, and estoppel cert~ficafies when avc~~iable
1 1 Ver~ficatron of Zoning, ~f ava~labie
12 Phase I Environmental Reporf and any o~her Env~ronmental Reporfs {e g
lead and asbestos assessmentsJ
13 Term~te Report
14, Construction Cost ~s~Ernate
15 PropoSed Pro~ect Timetable
1 d Ar-afys+s of repfacerr~~nt reser~re requirements, showmg rernairnng
`° econom~~ life and protected replacement cost for bu~ld~ng systems
F ~HOUSWG\SHARE\WPFILES\GUIbELIN~Loan Apphca#ion wpd
I
Ren#a~ ~iousing Loan Appl~cat~on Checklist
Santa Monica Housing and Redevelapment Division Page 1
CheekEisf, cont.
^ Financ[al Feasibility Pro~ect development and operating pro ~ormas in forrnafi
shown A dis~cette wrth these forrt~s prepared using Excel software is a~ailable ~.,,
from the Ci1y for your use Notes and assumpfi~ons explai~ing the basis of all _x `€,
proJected costs de~~e~opment and operating cosfis must be provided Required ~
exhibits incl~de
Pro~ECt Summary
Exnibit 1, Develaprnent CoSts
Exh€i~it 2, Ren# Sch~d~le
Exh+b~t 3, Operatrng Expens~s
Exhibrt 4, 30 Year Cash F!cw Analys~s
ExhEbit S, Financing
Exhibit 6, Tax Credrt Analysis {wher~ apphcable)
Exhib+fi 7, Bond Fees WorkSheet [where applicable~
Exhibi# 8, SourcES and Uses T?~rough ~~onstruction (w#~en
available}
^ Organizational Documents
17 Pro~ect Team Resumes
18 Resurnes af Principals of sponsor
19 For nanprof~t developers,
a List of 8oard of D~rectors and Organizational Chart
ii 501 {c~ (3} exemption determEnatfon letter from the IRS
20 By-Laws. Arficles of Incarporation, Partnership Agreernents
21 Current Financial Statements [A~dtted statements st~ouEd be no more
#han 1 year old Unaud~ted sta#ements should be no more thar~ 6 months
oid )
22 Ownership Plan, if applicant wdl not be owner,
F \HOUSING\SHARE\WPFILES\GUIDEUN\Loan APPhcation wpd
I
Rer~tai Hous~ng Loan Appl~cation
Santa Mon~ca Housmg and Redevelopment Div~s~on
~~'tGC~C~t3t
Page 2
,
_~
~ ~~Y ^ Financing
Checklist, cant.
23 Evide~ce of other F~narang Approvals, S~mmary of Terms and S#atus,
Contac# Persons and phone rumbers
24 Grour~d Lease, ~f applicable
25 Laan Docurnents for ExiSting or Proposed Subardinate Financing, if
avaFlable
2b Tax credit reservation, ~f avc~ifaofe
^ Property Management
27 Resurr~e of Firm
28 Management Plan, if av~ilable
^ Tenant fnformatfon
29 ~enant Pra~i~e, existmg ~f a~a~lable and proposed, ~howrng r~umber of
persons in each household and ~ncome level
3~ Relocation Plan. ~f appl~cable
^ Tax Credit Projects Only
31 E~~dence of Tax Cred~t Allocatron, ~f ava~lable
32 Commitment of Tax Credrf in~estor, ~f ava~lable
33 P~rtnership Agreement, Ef ave~~lable
F \HOUSING\S~iARE\WPFILES\GUIDELIN\Loon Applicatron wpd
II I
Rental Housing Loan Application Checklist
Santa Monica Housing and Rede~elopment Division Page 3
,-~ ATTACHMENT B
~ n~
_~-
Summary qf Current Trust Fund Guidef~nes
Note. Proposed Summary of Consolydated Rerrfal Housrng
Trust Fund Gurdelines
also attached for companson
~
SUMMARY UF CURRENT TRUST FUND GUIDELINES
• Citv~s•~de Housmg Trust CH~iRP HON~E P~co Neighborhood Trust
Fund Fund
Pr~mar~ funding In-lieu tzzs_ de~~elopmznt Rede~ elopment Z'at Increment H~ti1E Program CDSG
source a~reements Office 4t~t~aation
Ehg~ble '~Ion-pro£ts. Lmztzd par[nzr~h~p tion-profits and for prnfits Von-profits and fnr profi[s '•ron-profits and limited partnzrs «•ith
Borro-~ers wrth non-profit g~neral partner itnnprofit~
F.l~g~ble Rental housma ~rith ~ or more R2hab ~~r mor2 units 8~°,a a:.c 6r.~ ~3 or more units_ SRO sroup Rehab ~1 or morz umw. 6D°~b of tenants
Properhes units. SRO uROC; upizd. non-re~ hoasehold~ under 1?D°o of inedian. home under SO o of ined~am m ~eed of
bemg coneerted to res .~ntemm ~~w constructton ~1~red use ~f res =~ 1° a ot rzhab, Eocated Pi~o Ve~sh6orhood
loans_ bndae loans Pr~mazil}~ space
fer famdies tc•~th ar 3 bzdruums
Elig~bte Uses Rental housmg development land lease~purchase acqu~st~on K~ubstantial rzhab. necs eonstruchon Site acymsuon and prepazauon. ne~r construction
~ su6stant~al rzhab_ cam~ng fzes g chazees. arch~tectura feeal, urtram~anonal, temporarc° rzlucauon
Pred~c-elopment. mtenm, bndae
~ Prede~ elopment_ ~nter~m, 6ndge Permanent relocat~on Intenm loans_ loan guarantees. 3~mited
loan. loan Quarantees, acq ~ loan, loan ~uarantees acq ~ equit}~ coops De~~elopment fzes_
com•ersEOn De~~z3ppmen[ Tees can~~z~~on, limited equ~h• ~oops earnest mone} (•~orkmg cap~tal)
~ei°zlapment fzzs. eamest ~
i~r•orkme capua}l
Iuel~gible L~ses Prelimmar~• Te~ihilit~ ~tudies oreamzat~onal uperatmg erpenses.
~ Resen°z~. impa:t tees. operat~ng
subs~d~zs
Home On'nersh3p
Loan ferm ~~ ~~rs mimmum 3~ ~rs ~tiith 1S ~r z~~znsivn ~0rears ~~ ~r ~+~~th i~ ~~r ektztv~on
interest Ra#e Fredd~e ~~fac Rate tor ~{~ Fear loans
Pa~~menis Dzferred ior a[ least ~ cr~. up to Deferred iar 3~ }•rs , residua] Dztzrred €er at lzast ~ 4ears Rz~~dual recz~pt~ for loans o~~er
v0 ~°ears ~Y'~~'o ~~1 ~ncumz re~eipts Ior h~ loam $#Ok'un¢
benefit. then restdual receipv
1la~~mum Loans $6~.600~unit 5-4: D00'un~t s6o.ooa~un~t $~0.060~um[
li~n~mum Loan 51.0~]9%umi
affordabilrt}~ '~°'o m~nal ~ccupancF under Rehab Pro~zcts S~°•-o ot untts ~t least 20°0 of assasted unrt~ 60°~0 of units aYfordable to persons +u.
Reqwrements [~0°-b nf ined~an 7;°0 ot all must be affordablz to per~ons must be occupied h~ houszholds 80°% of rned~an, mcreasme to ?~°a
subs~d~zzd units af~ordable to zarning _~r~ 12U°o ~z~ti• cnnsiruction eam~ne Izs~ than ~0°~0 of o~°er tim2 Rehab ~1°'o affordable to
~n0°•o m~nimum ?s0o pm~ect~ 1[~0°-0 of units occupied 6~• med~an income balance oY ]oc~° mceme persons with plan to
s'ubsidized umts afFord to 30° o lo~s or moderate ~ncome household~ ass~~ted units must be oc~up~ed mcreasz to ?~°b \re~s consVU~t~on
(up [0 12p~b of inedians bt howeholds earnm~ lzss [han ~~°.o of units must be affordahlz [o
60°•0 of ined~an ~ncome persons u: ?0° o of ined~an mc4me
Itent restr~chons ~0°-o at epplicable mcome 30° o oY appluablz mcomz. e~czpt '[~°a :u ~0°'0 of ined~an balance ;0° ~ uf app~icabl2 me~me
Yer hnuseholds under L?0°'o ~~f ut umu at b5°•o ,f mzd~an
median. rznv must he ba,ed on
11Q° o of inedian
Pi eF aEhng ~~'age ~pplica6le to Rehab of 20 ApplECable to Rehab "'0 um[ ur Da~-~s Bacon appliz~ [o pro~ects Dat~is Ba~n applies ta pro~ee~ of 8 or
and La6ar umt5 or more, or $26]. ~00 m~n ~on of $2~~J.~100. of ] 2 umt, or mare more um~c Pre~~ a~l n•agz for 20 or
requ~rements cunstructi~n contract ~;e«~ Ne~r construction ?~ unit's or more unrts ur rzhab oY ~2=0.Q00 or
conctrustion 20 un~ts and up S1.ODG [irij netir cQnstruction '~e~r con "~°=o of
construcuon of $1.O~16.00D unrts ~u ~0°0 of Sl mdl~on
Other 90°~o aI funds w umts occ b.• ;~°•o oI ztistma tznants mus[ a$irm
households ~r'• incomes that do mterest m a rehainlrtatiun pro~ect m
not ecceed bG°~o of mzd~an x~rEtms
~
balancz ar tunds to units occ b~•
he~seholds ~t~ah incomes less
than 80°:0 of mzdian . 1~°~o of
funds to CHDOs
F,~fOC:SfiG'JH-1RE' 1tPFILES•G~~7DE~LI.i~•~untman~ o* cisrrer~t gtsadelinzs uprf
SUMMARY OF CQN50LIDATED RENTAL HOUTSING TRUST FUND GUIDELINES
C~tvrnlde Haus~ng Redevelopment Honsing HOi~IE CDBG I'ORCA
Trust Fund I'rust Fund Trust Fund Housing Trust Fund Housing
Trust Fund
Primar~ In-I~eu fzzs. de~-el Redecelopment Tax Increment HOlIE Program CDBG TORC~
fund~ng source aereements_ Ofc funds conrzrs~on tak
RSit~Qaz~on fees
Ehgible Konprotits, l~mited ~]onprofits. for prafits. and N~npr~,firs. Yor profits ~ ~onprotits and hmited partnersh~ps zt ith
Sorrotirers partnenh~p «~~th limitzd partnerships ~i•rth limited partnerships :~fa~ nonprofit genera] partner
nonpm6t Qeneral nonprotit gan~ral partner not be pneided to
partner primaril~ rzl~aious
or~amzat~on~
Rzntal housina. 4 or roore umts. SRO hous~ne, eroup home~ acquuiuon and rehab~Ertation prolecti ~ti•~th at lzast ~1°0 of the unrts occup~ed b}
Ehgible tznants w~hose mcomzs do not ztceed 80°ro oT mzdian mcome. e~czpt ~;~hzn uai~~ed Ne~c Construction with ercepnOns
Pro~ccts
If Ordmance 16t? or 1~4~ted usz ~frzsidznt~al
1918 iunds, nnl~ neu area zquals ~ 1°rq or more
construct~on and of ~pate
a.•erage 2 bzdmoms
Ehgible L`ses Rental housine de~~el land lease!purchase acq c~, rehab_ netis ~onstruct~on 5rtz acquisitiun & prep ne~; consuueGOn d rehab. cam°~na fees
~
~ charees. archaectur2. ]zgal. orean~zational. relocat~en Predes~elopmznt loans. bnd°2 ION15 ~~~orkmg Capual for Cin~a°ide CDBG,
TORCtLandRec~eti'elopment IfOrdmancelbl~~I9lSfunds ne~rcunstrucno~nnh•ta.eraQe2bedrooms;
Ineh~ible I ses Preliminan fe~ibild~~ smdizs_ oreamzational opzratm~ ReSZn•zs. ~mpact fzes, ~e~~' consmectwn unless bF'
e~penses Housine acqu~sit~on and rehabilitation ~f operatm= subsidies. land CBDO_ rental ass~stance
Ord~nance 161 ~i1918 funds bankmg temporan• shel- pacments
ten. rental a~s~stancz.
commeraal propert~es
Loan Term Det~elopment ]oans 5~~ears. a°ith a 25 ~~ear zxtens~on poss36lz
Tnterest Rate Freddte ~~fac Rate for 30 yr loans. ma~ be la~ser for [a~ credit pro~zcts. HUI] 202:'8I l_ or ~shen rzqu~red to mzzt o[her [enderi subsidi lav~enng
_uidelmes
PaFments A~fae be deferred for up to 2~~rs . 3~~rs csith C~R A•ianaaer ~~ai4~er
6iat~mum ~e~ti construcr~on 0& 1 6ed $90,000, 2 bed $EGOA00 3 bed 5110,Q00
Loans Kzhab 0& 1 bed SSO.IIOQ. Z bed 590.00~. ~ bed 5160_000
Al~mmum Loan S1.UGO~umt
4[fordabdin~ ~.lE assESted umts must ~11 assisted unas shall bz 100°0 of ass~stzd umts For neu construct~on at ]za~t all ass~sted
Reqmrements bz affordx6le ta affordahlz to hoaszholds li hns: mus[ be occupied b~~ 20° o nf thz units m the pro- unrts shall bz
hauseholds w$osz mcorazs do not eaceed 1 GO°b af lieuseholds ~;~hose ~ect musc be aYfordahle to af~'ordable to
mcomes do »ot e~ceed mzd~an Encome Az~ti mcome~ do not z~ceed households tiirh~sz mcomes households
60 •6 of inedian construc[~on unrts shall be SU° o of mad~an en~ome. do nat erceed SO°% of ined~an ~~•hose incomzs
mcuinz afYurdablz to houseliolds «hosz 4G°a not m e~ce~s' ot 6G°'o ~ncomz Rents for al1 c~a not e~ceed
mcomes do ~ot zxczed 30°'0 of efinedian and ~0°'o not m ass~sted umis should be 80°6 ofined~an
median mcome ek~e~s ot ~0°•0 of ined~an affardable tn household~ mcome
whose ~ncomes da not eticecd
8G°.'o of ined~an mcome
Rent 30°0 oT applicable 30°ro of appl~cabEe ~ncomz 2n~o al ~Q°o of mzd~an 30°o af app]~cahle mcome
restricf~ons mcomz income_ 40°o at 6~%0,
1 ~fl° u at 80%
Prevadmg --•age Cm• code pro~ ides tha[ State pre~~ailme a agz requirements are ap~lica6le to rzhab pro~ecci oi euher 2fl umts or more. ar 5254.OU0
and Labor esnstruct~on contract as ad~ustzd for mflatron ~ppl~cable to ne~+ constructmn pro~zcts of erther 20 umts or more or constructeon cost of
reqwrements 51,000 000. a~ ad~us#~d
Da~~~s Bacon is app33cable Da~~is Bacon ~s appltcahle for
for pro~zcts ~rhere 12 units prolzc~ of 8 umts or mare
or morz are assi~~ed ~+~~ch
HOh~IE funds
.'~ot2 For compl~re deta~ls aboarr rhe mfor»uruon contaenzd a: daas sumrnar~~ s{ieet please re(er to t)re appropraate sect~on oj iltese Gutdeltrtes
Consolidated Rental Hausing Trust Fund GuideEines
F HOliS17tiG'~SfLS.RE~~4~F1LES'~GUIDELI\'TF Gu~deUnes 1998 wpd t~a~-ember ~U, 1998
City of Santa 1Vlonica
Housing Division
~onso~idated Rental Housing Trust Fund Guidelines
Draft
No~ember 13, 1998
Consalidated Rentai Housing Trust Fund Guidelines
~ :HOC'SRr`G'~SHr~RE~U1''PF[LES`GULDELIN~TF Gu~de i l-l3 iipd
SUMMARY OF CUNS4LIDATED RENTAL HOUSING TRUST FITND GUIDEL~NES
C~h~w~de Hausing Rede~~elapment Housmg HOh1E CDBG TORCA
Trusi Fund Trust Fu~d Trust Fus-d Housmg Tryst Fund Houstng
Trust Fund
Pr~roan In-]ieu fees, de<<el Rederelopment Tak Increment HO~4E Program CDBG TORCA
fundmg source aereements Ofc funds convers~on tax
A4~tigatinn fees
Ehg~ble ~onprafits. limited Nanprofits, for prufits. and ]~onprofiu, for profits & Nonprofits and lim~ted partnersh~ps u~~th
Bnrrou~ers parlnersh~p rti~th ]fm~[ed pam~ersh2ps w~th ]~mlted partnersh~ps I+9a~° nonprofit gensra] panaer
nonprofit eeneral npnpmfit general parmer not be pror•ided to
partner primarElv~ religious
areanrza~ons
Ren[ai hous~n~_ 4 or more umts. 5R0 housmg, group homes Acquisit~on and reha6ilaanon pro~ects u•ith at least 51% of the umts occupied b}°
Elig~6te tenants w-3~ose menmes da not e~ceed 8Q°.b af inedcan mcome. except when w-an•ed ~ie~ti• canstnret~an w~rth excepnons
Pro~eccs
If Ordmance 1615 or M~~ced use ~f residznt~al
1918 funds_ ont~ nesc area eq~afs ~ i°.a or more
consuuct~on and of space
ar-era~e 2 bedrooms
Ehg~ble L~ses Rental housmg devel land ]ease;purchase. acq & rehab. new~ constructian 5~te acquts~non c~ prep new° construct~on ~ rehab, cam~mg €ees
~ charees archnecture. legal. organizational, reloca[~on Preder-elopment loans_ br~d~e loans ti~~orkme Capual for Cin•wide, CDB~,
TOACA. and Redevelopment If Ordmance 161 ~11918 funds, ne~~ constrncnon onl}~ [a~'erage 2 bedrooms f
Inelig~ble I~ses Prelim~narc• feas~bilm stud~es. organ~zaLOnal operanne Resen'es. ~mpact fees. ?~eci• constructwn unless b~'
expenses Housms acquESit~on and rehabdiratwn if operaung subs~d~es land CBDO. rental ass~stance
Ordmance 16f51191$ funds baokmg. temporan• shel- pa~~ments
ters. rentaf assis[anee,
commzrc~al properties
Loan Term Derelopment loans 5? }ears. w'ith a~~ year extension poss~ble
3nteresi Rate Frzdd~c h9ac Rate for's0 ~°r loans. ma~ be ]o«'er Ynr tax cred~t prnJeets, H~D 202!$1 i or «•hen reqwred to meet other kender~ subs~dq layenng
guidelines
Payments h4av be deterred for up to 2~rs . 3 vrs wrth C~h' ~ianaaer w~a~ver
Atax~mum \eu• canstrucnon 0&: 1 bed 590.OOD. 2 bed 51~0,000 3 bed $110 000
Loans Rehab 0 R 1 hzd S84 000. 2 bed $90.GOD, 3 bed $140 600
~I~n~mnm Loan ~l OGQ~urnt
~ffordabd~ts All ass~sted un~ts must :~lf assisred units shall bz 1 UO°~o of assisszd umis For neu construcuon at least ~1] ass~stsd
Reqwrements bz affordable to affordabte to houszholds whose must be occup~ed b~° 20°%0 of the umt~ m the pro- unrts shall be
househokds w•hase »comes do not exceed 1~0°'0 of households ti~~hose ~ect must be affnrda6le to affordable to
mcomes do not exreed median mcome Vew ~nrornes do not exceed ho~seholds i-~hose incames households
60°•0 ot median wnstruction umts shall be SO°~o af mzdian mcqme, do no[ exceed 34%a af ined~an whose mcomes
mcome af~ordable to households ~shose 90~ o not m zxcess af 60° o mcome Renrs for al€ d~ not exceed
~r~comes do not e~ceed 8Q° o af Qf mzdjaa and ?U°•6 not m asscs~ed units shou~d be SQ°.6 ef inedisn
med~an inaame ercess of ~~3°'o uf ined~an affordable to houszholds income
u•ho~e mcomes do ~ot exceed
8(J° o of ined~an mcome
Rent 30% of appl~cable 30°-0 of applitabke mcome. ?0°~o ai ~fl°'q of mzdean 30 %o of app] ~cahle mcome
restr~chons mcome except that for househoids ~n~ome 90'~o at 6~ %o.
~vhose mcome daes not exceed 100°u ai 8U°b
120°~0 of inedian, rents must be
based on 110 % of inedian
Pre~•ad~na K•a2e Gn code pro~~des that 5tate pre~°admg ..age requirements are applicable to rehab pro~ects of either 20 umts or more, or $Z5fl 000
and Labor ~onstrucuon contract as ad~ustzd tor mElat~on ~pplicable [o ne~t construetion projects ot either 20 umU or more or constructton cost of
requirements S1 00(l OOd as aAjuste~
Da~•~s Bacon is appl~cable paa•~s Ba~on ~s appl~cabie for
far pra~e:.ts ~shere 12 umts pro~ects of 8 unrts or more
or more are a;s~sted w iEh
IiOVtE funds
~'ofe r or complete detaels abouf rhz rnformalron conrained an 1h~s summary sheet please refer io the approprrate secfron oj [hese Gutdel~nes
Coasolidated Rental Housing Trust Fund Guidelines
x .F{p~~Git{',~SHARE~4LPFI1,E5'~GL7IJELI?Y•TFGwde 71-1a u~pa
TaBLE oF co~TTENTS
I. INTRODUCTION . . . . 1
II. TYPES OF LOANS . . _ _ . . . 2
III. LOA11~T TERMS . . . . . ~
IV. APPLICATi4N SUBMITTAL A'VD REVIEW PROCEDURES _ ... 8
Application Submittal . . . $
Application Revie~;l _ 8
Competitive Selectian Criteria . 13
V. LOA~' COM~IITMENT AND CLOSING PR4CEDURES I4
Loan Commitment . 14
Loan Closmg . 1~
VI, PROJECT MOl~`ITORING AND REPORTIl\rG . . 15
VII. FUNDXNG SDURCES . 17
HOME Trust Fund . _ 17
CDBG Housing Trust Fund . . 21
C~ri~wide Housm~ Trust Fund 24
Rede~~elapment Housing Trust Fund (formerly~ CHARP) 2b
TORCA Housing Trust Fund 29
VIII. EXHIBITS . . 31
Exhibit A Definitions
Exhtbit B HOVIE Program Subsid~- Limrts
Exhibrt C Rental Housmg Loan Applicat~on
Exhibrt D Checkl~st for Loan Closing
CaQSOlidated Rental HousiQg Trust Fund Guidel~nes
F'~]-]OUSIIJG•SH~RE'V.PFILES~GE:IDELIR`TF Gwde t1-13 upd
I. INTRODUCTYQN
The Czt}- of Santa ivlonica and the Redevelopment Agency of the C~ty of Santa Monica provide
financial asszstance to support the acquisrtion, rehabilitation. and nevv construction of properties to
preserve and u~crease affordable rental housing opporturuties for lo~ver-income households through
the folla~~ng Programs
• HOV~E Trust Fund (HTF)
• CDBG Housin~ Trust Fund (CDBGHTF). farmerl<< knows as the Pico I~eighbarhood
Housing Trust Fund
• Crty~~tde Hous~ng Trust Fund (CHTF)
• Redevelopment Housing Trust Fund (RHTF}, formerly knov-~n as CHARP
• T4RCA Hausing Trust Fund {THT~)
U~der these Programs, the City provides Ioti;- interest or deferred payment Iaans to bnd~e the
financial gap bet«,~een available resources - including the borrower's equit}~ and pn~Tate financing -
and the costs of develop~n~ affardable mult~-fam~li~ hous~ng. The purpose of the Consalidated
Rental Housing Trust Fund Guidelines ("Guidelines'') is to pro<<ide an o~•ervze~~r of the types and
terms of loans ~yYuch are a~ailable, application rec}uiremems, re«e~~~ procedures, selection crrtena,
loan commitment and closing procedures, and pro~ect monrtoring and reporting requirements of
these varied Programs wrthin ane comprehensive so~rce af reference These requirements are
min~mum requirements for }~articipat~on in Cit~~ Programs and are sub~ect to change at an~r time
yleeting these requirements is not a~uarantee of participation m anti~ Pro~ram The Crty~ resenres
the r~ght to require addrtional ~uahficat~ons for indicidual pro~ects The Grt}- reser~-es the nght to
re~ect an~~ and a11 applications and to accept applicauons ~hich in rts ~udgment best serve the
interests of the CitF~ On a case by case basis. Ciri~ Council ma~; also modifi~ or «~ai~~e proti~;sions
af these guidelines
These guEdelines should be interpreted in can~unct~on ~~7th ~'ederal, State, and Cit~~ statutes and
regulations gaverrung use of these funds, m the e~ ent of a conflict betv-.een these Guidelines and
such statutes and regulatians. the requtrements a~those statute~ and regulations shall pre~~ail
These Pro~rams are adinir~stered b~~ the Housing and Rederelopment Di~ision of the Grty of Santa
:lrtomca (~nder the duect supen~ision of the Ho~smg and Redevelopment 1VIanaEer, the direction of
the Director of Resource ,lriana~ement, and the general super~~~sion of the C~t-~- ~~anager/EYecutive
Director of Rede~=elopment} on behalf of the Crt}= of Santa Nionica. and_ ~hen Rede~elopment
Housing Trust Funds are used, the Redevelopment Agency of the Crty of Santa Moniea
In additzon ta tlzese ~ragrams, the Ciri~ of Santa Momca has other pragrams ~vhich ean be used to
provide housing assistance Those programs ~nclude the TORCA Shared Appreciatxan Loan
Program, «~hich pro~-ides assistance to lo«- and moderate income households to purchase
condammiums. and the Sectian 8 Rental Assistance Pragram. which provides rental assistance to
lo«~ income tenants The Consolidated Housing Trust Fund Guidelines do not cover these programs
Consolidated Renta! Housing Trust F~nd Gmde~ines Page 1
F °.HOUSP,3G'~SHARE~V~PFILES'~GUIDELAd',TF Gu~de l1-I~ µpd
Ii. TYPES OF LaANS
Predevelopment Loans
Predevelopment loans nria~ be made to pri~~ate. nongrofit corporatians w~th proven capacit~- to
de~~e~op. o«n and operate housing. and that ha~Fe a~ralyd ~O1{e)(3) or {4) designation from the iRS
Funds ma_y be used far pre-de~-elopment expenses for pro~ects for which there ts srte control and
«htch na~e received a prel2minary funding commitment from tY~e Crt~lAgenc~~. Expenses sna~~ be
lunkted to services that cannot be abtained on a cont~ngenc~~ basis and rna}~ znclude {but are not
lirnrted to} architecnaral and engu~eering fees, title reports. legal and organizat~onal fees, martgage
application fees, en~rironmental analysis_ and permits and fees for public agencies Pre-des~elopment
funds mat~ also be used for purchase opt~ons or deposits for the purchase of buzldings or land to be
reha~ilrtated or de~feloped with assis~ance frorn the Program, or p~rchase options or depasits on
properties that wzll not rece~~ e further subsidies under the Program, but that «ill be used for housin~
pro~ects that meet the same requirements. Such funds may be provided as part of a predevelopment
loan ar through a separate contract with a nonprafit corporatian as discussed belo«~ Predevelopment
loans ma~• also be made to a nonprofit corporation far the purpose of acqufring real propert~~ for
future affordable hausing development, including but not lun~ted to vacant propercy°. and properties
~r-~th eaisting residential impro~~ements w~ith rents ~~hich are substantially belo«~ market
Preliminary market or feasrbiIit~~ studies, or organizational operatmg expenses are not eligible
expenses under the Cit~-r~~de Housmg Trust Fund
These prede~~elopment funds shali be d~sbursed to an eligible borro~~er at the ttme af the C~ry's
pre~~minar~~ approva~ of a specific pro~ect The amount of predei~e~opment fiznds disbursed to each
pro}ect shall be mcluded in the calculation of the max~mum loan from a Program and shall be
cons2dered as part of rhe pnnc~pal
Development Loans
Program funds mayr be used for dei-elopment loans for the follo~vmg elig~ble purposes
{ 1) The purchase of existmg multifamil~ buildings for rent to loti~~ and moderate income
households and for the development of group homes for rent to lou~ and moderate
~ncame persons w~th special needs Except for group homes, existing buildings shall
consist of four or more un~ts, unless the Citti- Ivlana~er,!Executive Director finds that a
substant~al public benefit ~~11 be prov~ded bt~ a pro~ect consistine of less than 4 units
{?} The pwchase or lease of land andior buildin~s for new construction or rehabilitation of
hous;ng typ~call}~ in tandem w~th a~railable State and Federal housing assistance
programs suci~ as the Section Z02 Suppartive Hausing far the Elderl~- Program,
tax-exempt bond fmancing, Section S 11 Supporti~je Housing Program, and ioti;~-income
housing tax credrts
Consolidated Rental Housing Trust Fund Guidel~nes Page 2
F~}30tiSI:rG`SHARE'•Vl'PFILES'•GUIDELI:~ TF Gmde 11-13 u•pd
(3) The de<<elopment of Iimrted equity housing coaperah~~es through erther conversion ar
neuj construction
(4) The pravision af tnterim lc~an fiutds far arty of tne abo~Te purposes prior to the funding
of a pnvate loan Eligible development costs far the above uses include but are not
necessaril~~ limrted to
{A) srte acquisition and preparation.
(B} rehabilitat~on of d~velling wuts, common areas and reiated structures,
{C) ne«~ construction;
(D} carrying charges and financing fees.
{E) arc~utectural, leg~, and orgamzat~onal fees,
(F} temporary or permanent tenant relacation costs, and
(G) a developer fee consistent w~th gwdelines described m Sectian IV below
{5) Prepayment of certain financing fees, such as bond issuance fees as necessary to make
favorable financing a~failable
Bridge Loans
Program funds ma~~ be used to make "bnd~e" loans to el~giblE barrowers who are s}mdicating their
assisted pro~ect's low incame housing t~ credits to generate eqwt}' cap~tai for the pro~ect. Bridge
loans shall be made onlv for pro~ects which ha~.~e received permanent funding commitments from
eFther the C~ty of Santa Manica or the Rede~~el~pment Agency of the Cit~t of Santa Monica.
Working Capital Loans
Up to fi~=e ~ercent (5%) ofthe total funds available to Housmg De~~elopment Corporations {HDCs)
under the CDBG Houszng Tr~.isr F~nd. tl~e TORCA Housing Trust Fund and the Redevelapment
Housmg Trust Fund may be a~~ailable for Working Capital Loans A~~%orking Capital Loan ma}~ be
made to an HDC under contract wrth the Cin~ of Santa Momca for the de~elopment and management
of affordable hous~ng Loan func}s shall be held m a separate, mterest-bearing account by the HDC
for use as "~i~orkmg caprtal" to fund earl}~ cosis for securing srte control and expenses related to
feasibilit~~ studies prior ta approval of a s~te-specific predel=eiopment loan or other loan from the
C~ty'Agency
Loan funds may be ~sed for re~mbursable de~~eiopment expenses that have recei~ed prior wrrt#en
appraval from the Housi~~ and Rede~~elopment Manager m the connection v4 rth the acc~uis~t~on,
rehabilitation or construction of housing unrts that v~'il1 meet the criteria of lo~~~ or moderate income
househoid benefit as estabhshed by the Guidelmes ElFgible uses include but are not necessar~ly
limrted to
(1) Srte control costs through deposits to escxou- for purchase of builduags ar s~tes ~fixh~n
the City of Santa Momca, or options to purchase property,
Consvliaated Renta] Housing Tre~st Fund GuiaeZines Page 3
F'~HOUS[VGSHr~RE 1~PFILES'GUIDELI[:'•TF Gmde I I-1~ wpd
(2) Non-refundabie opt~on paymerns, in order to assist the HDC to secure propem~ in a
compet~ti~e real estate market
(3) De~~elogment expenses that cannot be funded on a contingenc~ basis, including
arclutectural and engmeerm~ fees, environmental studies. appraisals and mspection fees The
total of such expenses shall not exceed $10,000 per pro~ect
Upan receipt of a predevelopment loan, d~~relopment loan, or brid~e loan far the pro~ect. the HDC
shall promptli~ reimburse the V6'orkua~ Capital account for the amount advanced from che fund for
such purpose In the event that the HDC does not receive a predevelopment loan, bndge laan, or
de~~elopment Ioan for the pro~ect or ~s unable to camplete the pro~ect. the Ciry/Agency may forgive
90% of the total fiands expended b}~ the HDC upon repa~~ment by the HDC of 10% of the amount of
~he expendinu~e
hzo later than thir~~ caIender days after the termination date of the Working Cap~tal Loazi Agreement,
the HDC shall provide a full accountfng of the amount of funds available in the account. including
a~~ accrued trnerest, ana a ltst af pro~eets, tf an~~. for ~~~htch funds ha~~e been used and have not been
repaid, alon~ with a schedule of pro~ected repa~ment dates In the event the Warking Capital Loan
Agreement is nar renex~~ed. these funds shall be returned to the Czn~
Consolidated Rental Housiog Trust Fund Guidelines Page 4
F'~}30USII~C•SIi~RE'l~'PFIL~S'•GUIDELI~~TFGwde I I-13 wpd
III. LOAN TERMS
Term
Permanent loans shall be due and payable m fift~-fi~e (») years suh~ect to the terms of the
appi~cable Regulatary Agreement or recarded Covenants W1~ere necessar~r in order to meet the
requirements for other pro~ect funding, the Housmg and Rede~%elapment Manager may~ approve a
shorter loan term Hoti~vever. in no case shali a Reguiator~~ Agreement or recorded Covenan~ remain
in effect for fe«~er than 55 years
Interest Rate
The interest rate shall be set at erther
{ 1) the rate estabi~shed b~~ the Federal Hame Loan Mortgage Corporation for the a~~erage
conventional commrtment of a fixed rate, th~m-yeaz (30) mortgage. and shall be
compounded annuaily. or
(2} ~~hen necessary to secure investor eqlun~, interest rates of affordable housing pro~ects that
include tax credrts or conventlonallenders, at 3% simple Fnterest, ar
(3} ~.~hen t~e C~t~~/Agency loan is m a second posit~on to a first trust deed caprtal advance/laan
made under the U S Department of Housin~ and Urban Development (HUD) Sect~on 202
or Section 811 Pragrams, the interest rate shall not exceed the highest permissible rate on the
applicable HUD Section 202 or Secnon 811 Prograin mort~ages, under authority of Chapter
24 of the Code of Federal Regulations (CFR}, Subpart 88~ 410(~). or
(4} «-hen required in order to meet federal subsidS~ laS~enng guidehnes. at the Applicable Federal
Rate (that rate established b~~ the Internal Revenue Service pursuant to Section 1274{d)(1)
of the Interna~ Rei-enue Code)
The Cit~° Manager/Executi~•e Director ma~~ v~~ai~~e or reduce the mterest rate as needed to ensure the
feas~bilit~ of pro~ects
Payr-zents
Pa~ ments on permanent loans shall be made as follows
(1 } Pa~~ments of pnnc~pal and interest ma}~ be deferred for up to t«o (2) years from the date of
execution of the loan. and up to thrze (3) }'ears from the date of execution of the loan wrth
appro~~al of the Crty Manager or Execut~ve Director of the Rede~~elopment Agency of the
Crt~~ af 5anta Monica After the expiration of the deferral period. payments of pnncipal and
interest shall be made annuallti~ in an amount equal to 5~% of pro~ect Resrdual Receipts, if
an~-, as appro~-ed hy the Crty; Agenc}- Pa~ ments shall be applied firs# to accrued interest, and
then to pnnc~pal
Consalidated Rental Housing Trust Fund Guidelines Page 5
F'~.HDL:SIVG'•SH~RE'~~IPFILES'~GUIDELIN'TF Guide 1 ]•] ~ xpd
{2) The Borrower may elect to prepa~' the 1oan pr~or to the end of the term However. the
Regulatorc Agreement or recorded Ca~~enants shall remaui in full force and effect far its term
regardless of any pregayment
(3) If the Borrower ~-~olates the terms of the Regulatory Agreement or recorded Covenants such
that the Citcr/Agency declaTes the loan in default, the ennre amount of unpaid pnncipal plus
accrued mterest at the rate established at the tune of clasmg sl~all be d~e.
(4) linless paid m full earlier, the remauung pnncipal balance of the loan and accrued interest
shalI be due and payable at the end of the term ofthe Promissor~r Note Where necessary to
meet requirements of third part~~ investors and v~~ith approval af the City Manager/Executive
Director. t~e Cit}~ may a~lo~~ the rematntng pnncigal and accrued but unpa~d interes~ to be
pa~~abie anly to the extent that the fatr market value of the Pro~ect exceeds the pnncipal
balance of the existmg indebtedness secure~ b~ the propert~~
{] } Upon request by the borrower. and upon determination by the Crty/Agenc~T that the borrov~~er
is in full cornphance v~rith the terms and cond~tians of#he Regulator~ Agreement or recarded
Covenants, the Crty/A~encv ma~~ extend the term of the exishng Regulatory~ Agreement or
recorded Cavenants penod of twenn~-five (2~) ~~ears ("Extension Penod"}
If borrawer full~~ comp~~es v-~~th al~ terms and condittor~s of the loan durtng the Extens2nn
Periad then an~~ remairun~ prmctpal and accrued but unpaid interest shall be forgi~~en at the
end of the Extension Penod
Secur~ih~
The loan shall be secured as follows
(1) The Ioan shall be secured h} a Deed of Trust and Pram~ssor~° i~Tote ~ti~hich may be
subordmated to Deeds of Trust s~cunng other Federal, State, C~t~- loans, ar loans fra~n
conventiona~ financmg instrtutions used in con~unction ~~th the Trust Fund Ioan on the same
propert~,~ The City/Agency must appro~~e a11 requests for subardination
(2} The loan sha11 be iurther secured bti a Regulaton: Agreement or recorded Covenants to assure
that Program funds are used to pro~~ ide lon~-term affordable rental housing opportunities for
low and moderate income l~auseho~~s The Borro«er and the Cit}~!Agency shal~ execute the
Regu~ator~- Agreement or recorded Co~~enants re~ulating pro~ect rents, tenar~t selection
procedures. use of pra~ect income. management and maintenance, transfer of property~. and
permitted forms of ov~~nership and use The Re~ulaton A~reement or recorded Co~~enants
shall be recorded t~ith the Deed of Trust
Consolidated Rental Housi~g Trust F~nd Guidel2nes Page 6
T'~HOL:SI[~G`SH.+.RE~~I'PFiLES~GUIDELII~~TF Gu~de 1l-€3 wpd
Maximum toan amount
Except as agproved by the Crty ManagerlExecutive Director or as res~ncted b~ State or Federal Iaw,
the maximum Trust Fund Loari per unit shall not exceed the follow~ng
New Construction Acquisihon and
ReY~abil~tarion
Zero and 1 Bedroom Units $90.OOa $SO,OUO
2 Bedroorn LTmts $100.040 $90.000
3 Bedrooms or More $1 ~ O,ODQ $14Q,OOD
Actua! ~oan amounts will be based on tne prolect's neea and the let~el of affordabilit~~ that is
pro~~ided At the discreuon of the Crt~~ Manager/ExecutnTe Director, per urut Iaan amaunts and
maximum per pro~ect laan amaunt of $2.S~O.OQO may be increased bv up to 20°/a Pro~ram loans
m excess of maYimum amounts must be appro~ed b~~ Cih~ Council I
Conso~idated Rental Hous~ng Trvst Fund G~idelines Page 7
F ~}30llSi'~G`SHARE'•lk'PF1LE5'GtiID~LIN'IF Gmde ll-1? upd
IV. APPLICATION SUBM~TTAL AND REVIEW PRaCEDURES
Application Suhmittal
Al~ applicat~ons for Program funds shall be submitted to Housing and Redevelopment Division and
shall be reti~iei~ed and appraved through an admznfstrative revie~r° process as estab~ished in these
Guideimes
The Applicant shall complete and submtt to the Housing and Redevelopment Division t~e
Appl~catxon for Pragram FUnds and prepare all required attachments, mcluding the management
plan. tenant selectian and marketfng plan, relocatzan plan if necessary, s~gned purchase agreement
and escro~~ instructions, preliminary trtle report, and iimited parmersl~up documents, if necessar}~,
at ~~ast stxn- (bd} clays pr~or to the schea~~ca close of escro~~ AppZicattons may be submittea at any
nme dunng the program year and will be considered m the order s~bmitted to the Housm~ and
Redeti~elopment Di~~zsion
Applicatian RevYew
The Housing and Redevelopment D~vts~on staff shall review the applxcatian to
( i) determine that the minimum Program requirements are met.
(2) ensure that the estimated development costs are reasonable and in confortnance ~~-~th the
City's unden~~rzt~ng guidel~nes and
~;} review the estimated rnortga~e amount and Borrovrer equit~ contribution m accordance
ufith the City"s underw~ritmg guideimes and the requirements of the proposed source of
Crt~~/Agenc~~ fiinding
With~n sixty (b0) days of the submiss~on of the applicatzon, the Housing and Redevelopment
Di~~ision shall determme whether the proposal is apgrovable for commitment. z~ith or without
canditions If the Cit~~ determmes, m rts discretfon, that the application is compiete and meets all
of the Program crrtena, the Ciry may issue a commrtment Ietter If the applicat~on has deficiencies,
the Cin~!Agenc4 staff will identifi the problem areas and notifv the Applicant
Des~gn Re~iew
Applzcants proposmg new construction or change of use of pro~ects. includmg the moving on af
buildin~s to ~~ acant sttes, ~~:i11 be responsible for notifying the neiglzbors of the proposed pro~ect plans
for the site at the time the pro~ect is submrtted to the ~rchitectural Re~-ie~~; Board (ARB) for
appro~~al A}7pI1CaIliS VUlll lll~~ite neighbors to re<<ie~.~- the pro~ect design and comment on the plans
at the AR.B meetmg The Appl~cant v~~ill not~f}~ the necghbars at least seven (7} days pnor to the
ARB meeung at wluch the pro~ect is scheduled to be re~~~e«~ed
Conso}ic~ated Rental HQUSing Trust Funr~ Guidelines Page 8
F .HOLS[NG'SH,~RE`~WPFII.ES'~GUIDEE,[ti~TF Gmde ] 1-13 u•pd
Staff sha11 revievv the desi~n of the propased pro~ect for apprapriateness far ~i~e proposed target
group, compatib~lrty w~th surroundin~ uses. cost effect~ti=eness af construction, and appropnateness
of proposed mater~als far lov~~ maintenance and lon~ term durabr~rnr
Determinatian of Reasonable Cosfs a~d Financial FeasibiEity
Housing and Redevelopment Di~ision staff shall review the Applicant's estimates and pro~ections
of rents, expenses. reserves and deE•elopment costs in accordance v~zth the Crty's underwritxng
guidelines The Applicant shall prov~de background documentation on all costs as requested by the
City!Agenc`- The CxtylAgency~ ma~ adjust cost and expense amounts as appropriate to conform to
current market and industr5 standards The total amount of the Program loan and at1 private loans
shall not exceed the total development ~osts appro<<ed by the C~tvlAgenc~~
The maximum allot~able purchase price shall nat exceed the appraised value as evidenced by an
appraisal prepared by a California State Certified General Appraiser and approved by the Housing
and Rede~~elapment Division, «~hich ~s dated not mare than six (6) months prior to the date of the
applicat~on The appraisal may nat determme propert~~ value based solely on sales of properties
financed b3~ put~Iic a~encies
For ne~~~ consiruction pro~ects. the developer fee shall not exceed the Iesser of ~la.0a0 per umt. or
6-9% of the depreciable basis af the pro~ ect (not includmg the developer fee). depending on the size
of the pro~ect, as follo~~s
For 1- 2d ut~tts 9%
For Z 1- 3~ umts 8%
For ~ 1- 50 unrts 7°1a
Far ~ 1 or more umts 6%
For acquisition and rehabilitation proaects up to and including 7 units. the de~~eloper fee generall<<
shall not exceed ~7.800 per umt For acquisiuon and rehabilitation pro~}ects of greater than 7 un~ts.
the de~~eloper fee shall not exceed the greater of $~~.000 per pro~ect or the sum of 5% af the
deprec~able acqu~slt2on basis ana 1?% of rhe renab~~iFauon bas~s At the d~seretion of t~e Cit~~
Mana~er!Execut~ve Director a higher fee mav be allo~~~ed
The de~.=elapment fee for new construction pro~ects ~i~ill be released m three stages (1) one-th~rd
upon rece~pt of the necessary buildfng permrts, {2) one-third upon issuance of the certxficate of
occupanc~~ . and (3 ) one-th~rd upon the Iater of permanent Ioan closing or full lease-up of the pro~eet
For pro~ects invol~~mg acquisrtion and rehabflitation. the de~lelopment fee may be released m tv4o
stages { 1) ttivenri~-fi~re percent at the t~me af issuance of the buildang perm~t. and (2) 7S% at the time
of con~~ersion of intenm financing to permanent financing. or full lease-up of the pro~ ect, whichever
is later Vv'here the pro~ect does not utilize mtenm financing or i~~~olves acquisition only, the
schedule for release of the developer fee ~~>>1~ be re~~ie«-ed on a case bv case basis Changes ta the
abo~~e schedules for the release of fees may~ be approved by the Housxng and Redevelopment
~lanager 4
Consolidated Rental Housing Trus# Fund G~idel~aes Page 9
F~HOL'SIA]GSH4RE ~'PF31ES`-Gi.:FDEL[ti~7F Guidz 1 I-13 upd
The maximum affordable mortgage amount shall he calculated using the rent schedule proposed by~
the Applicant as appro~ed by the City/Agenc} . the proposed mterest rate and terms af the pnmar~r
loan{s}, and reasonable operating allawances and reserves includmg a resenle ta amortize a rnortgage
as needed.
The rec}uested Crty/Agency iaan for a pro~ect shall nat exceed the total arrtount of the gap between
the maxunum. affordable anartga~e atnount a~~aiiable from non-Cin: sources plus furtds a~a~lable
from other sources of public subsid~~, and the total develapment costs plus an~~ on-going annuiry
necessary to mainta~n affordable rent levels as defined in the Program appl~catzon The maximum
Cjri!Agency loan shall not exceed the max~mum per umt limtts descnbed in these Gi.udelines
Ail assisted un~ts must maintain rents that do not exceed the Maximum Affordable Rent, as defined
in these Guidelines, for the life ofthe [oan in accordance with the terms afthe Ioan or other recorded
Cavenants S~~ndicated pro~ ects must be structured such that o~~nership can feas~bly be acquired b~
the nonprofit General Partner at the end of the term of the limrted partnership agreement, w~hen
appropriate `~Then determinin~ the m~imtun Crt~~/A~enc~- loan, Housing and Rede~Telopment
Di~~~sion staff vs~i11 scrut~nize the rent schedule and annual cash flac~°s in order ta determrne ~~hettter
long-term affordabrlity is mam#a~ned In cases «-here a rent subsid~~ pragram ~s utilized and the
martgage is calculated on the basis of the subsidized rents, an "affordab~lrtt reserre" ma}- be
required, ~ihere the amount of the reserve shall be sufficient to ca~er the difference between
affordable rents and the subsid~zed rents
Clear Title
The Applicant shall have the responsibiliti~ to obtain clear title to the property As soon as feasible,
the Applicant w711 submit a prelimmar4~ title report for Cit~~/Agenc~~ rel-ie~~~ and wrrtten approval
Staff shall rez~ie~~- the state of title. including the conditions. covenants, restrict~ans and legal
descr~ption of the property° and the rent controi registration and removal permrt issues The Applicant
shall carrect the state of title and remo~~e all exceptions to the t~tle not consented to by the
Ciri~/Agencti~ before the Cit~/Agency closes the loan
Senior Financin~
The Applicant shall secttre other resources such as equrty from ss~ndication proceeds, tax exempt
financ~ng, federal and state housmg rental and development subsidies and available private financing
ta minimize the amount of the City!Agency-loan The Applicant t~-iIl submit to the CitylAgenc~~ for
revte~~ the terms and condrtions of all non-Czt~~ financing as~~~ell as eqt~~t~° conmbutions The
Applicant must submit pro~ected cash flov~~ s for the term of the loan. shot~-ing the m~unum possible
increases (i e. ~~~orst case scenario) m debt servrce per ~~ear. the pro~ ected rent and expense increases.
rhe means ofmalang up an€- aefcits. ana pro~ected ga~°ments of~esidua2 Recetpts The Citv~Ager~c~~
shall analyze the feas~bility of the pro~}ect to cairr the loan, and if feasible will approve the terms of
the non-Cit~~ financing
The Cit~~.~Agency ma5. at its sole discret~on, caiculate the mortgage amount at the terms ar~d rates of
available financing programs ather_than that praposed b~~ the Borrower, if a~ternative terms and rates
Consolidated Rental Housing Trust Fund Guidelines Page 10
F`•HOl S11~G'~SHARE°~§PFILES'GL4DELIN' TF Gwde 1 I-1 + wpd
are a~~ailable that w~ould reduce the amount af City/Agency~ subsidy required, and would otherwise
conform to the City/Agency requirements
Mana~ement and Aff rma~ive Marketia~ Plan
Except m the case of praj ects funded urider the federai Sectian 202 Supportive Housing Pro~ram and
Section 811 Supporti~e Housing Program, the Applicant shall prepare a Prfl~ect Managernent Plan
for the Crtq~Agency's revleu and appro~rai The Plan shall descnbe the Applicant's policies and
procedures concerning
( i) Affirmative marketing and tenant selection procedures including applfcation
procedures, priontization of Santa Momca residents where possible; warting lists. azid
lease agreements, and marketing efforts and tenar~t selection procedures that vt~ill be
used to attract eligible persons from all racial. ethruc and gender groups m the hausing
market area to the available hous~ng;
(2) Procedures for determining tenant etigib~iity and certifying ~ncomes,
(3) Management/tenant relations and assistance to tenant orgamzations. includ~ng the
traming and use of tenants to perfarm maintenance and management funcuons as
appropriate,
{4) Maintenance and repair serv~ces,
{~) On-site management facilit~es,
{6) Rent collection,
{7} Recards and reporting requirements,
{S} Persor~nel and staffing,
{9} Coxnpliance ~~rth all tenant protection la«~s_ including rent control lar~~ and Buildin~
and Healtli and Sat'etv Codes.
(10) Fee schedule
Na person shall on the grounds of race, marital status, sex. color_ age, religion, national orig~n,
ancestn~. ph~~ sical disabilin~ . AIDS, or sexual orientation be excluded from participating in. be den~ed
the benefits of, or be su~jected to d~scrimination under an~ program or aeti~=rty~ funded in whole or
in part ~-rth these funds
Developer Capaciri~
Applicants must demonstrate ihe capacity to successfully de~-elop the proposed proJect The
Cit~lA~enc~~ shall evaluate capacit~~ an the basis of the Appl~cant's track record in developing and
managing affardable housing, or anclusion of development team members ~~th a successful record
in developing such hausing In addition. Applicants must demonstrate the f nancial and legal
capac~ty to undertake the proposed pro~ect
Environme~tal Review
Pro~ect srtes rnust be free from adti~erse environmental impacts, e g. noise. or the proposed pro~ect
must successfull~~ mitigate these impacts The Cm~/Agenc~r shall assess the environmental effects
Cansolidated Rental Housing Trust Fund Guidelines Page 11
F:HOCSIisG~SHAR£~L~PFILES~GLTmELIN~IF Gmde l 1-13 upd
of each act~vity proposed to be carried out ~~~th Cin~lAgenc~- fitnding in accordance with the
provisions of the National En~ironrnental Polic}r Act of 1969 (NEPA) and the California
Entiriron~nental Quality Act {CEQA}, as applicable. The Housing and Rede~elopment Division staff
will commence the assessment as part of the irutial review~ of the application For pro~ects sub~ect
to NEPA rev~ew, no loan funds (except for activities normallv exempted from the en~~ironmental
clearance requirements in 2~ CFR Part ~8 34) shall be released until the env~ronmental rev~ew is
completed. the notice af finding and environmental assessment results are published. and the 15 clav
public comment p~nad expires ~
Prevai~in~ Wa~es
Anz- contract for construet~on {rehabilitatian ar ne~v construction) of affordable housFng vv~th 12 or
more units assisted wrth HOME funds. or S or more uni~s if the project is assisted v4~th CDBG
funds, must contain a provision requiruig that not less than the prevailing v~~ages paid in the localrty,
as determined b~ the Secretar~~ of Labor pursuant to the Davis-Bacon Act. ~~11 be paid to all laborers
and mechamcs emplo~red in the development of the proJect Contracfors and subcontraetors must
catnplr ~;ith regulations issued under ~his Act and pertaining ta labor standards and HUD
Handbook 134~.1.
Far all funding programs, the following pre~-aihng ti~~age requirements app15~ Pursuant to Chapter
4A of Article VII of the Santa Monica Mumc~pal Code. any rehabilitation or new canstructian
pro~ect receFVing Crt}'/Agenc~- fmancial assistance shall campl~~ ~~-~th State pre~~ailing ti~~age
requ~rements ~f the followmg mirum~am thresholds are met
(1) For a rehabilitation pro~ect, erther a minzrnum pro~ect size af 20 umts. or a mimmum
total construction contract of 52~4.000
(2) For a nev~~ construct~on pro~ect, erther a minimum pro~ect size of 2~ uruts. or a
minimum tatal construct~on contract of $1.000.000
"Vlimmum total construct~on contract" shall not include expenses associated ~;°ith srte acquisrtion.
architectural and o#her pre-constn~ction development casts. financzng charges, bonding and insurance
requirements. and fees, permrts or licenses required in connection with the pro~ect The minimum
thresholds stated above are adausted each Jul}- 1 st b~- the percentage change in the Consumer Price
Index for the prev~ous calendar ~~ear Current rniniznum thresholds and pre~ailing ~~age leveIs can
be abtained from the Office of ~he C~ty Engineer
Relocation
The Applicant shall develop a plan for temporan~ or permanent relocation. where necessary, for
revie«~ b}~ the Cttt',A~ency The relocatian p~an shat~ ~e in aecor~ ~~rith the Cit~°'s Re~ocation and
Tenant Assistance P~an, and the requirements of the Umform Reiocation Assistance and Real
Propem~ Acquisition Policies Act of 1970, and the implementmg regulations at 2~ CFR Part 42, and
the CaIifornia Relocat~on Assistance Lati~°, ~~~here applicable. copies of ~~hFCh mal be obtamed from
the Housing and Rede~°elopment Di~~ision Permanent in~~oluntary~ tenant displacernent must be
Gansolidatec~ Rental Housing Trust Fund Guide~ines Page i2
F.HOUSIhGSH4RE~~§'PF1LE5~GL'[DELIN'~TF Gu~de i I-1 + wpd
~
i -
( ~
t t~~i1~,~-~LR.~-~
~#
ERRATA SHEET
The attached sheet repiaces pages ~ 2 and 13 of:
f ~ ~J
~~;~;~r~r~~
Gity of Santa Mon~ca
Housing D~v~s~on
Conso~idated Rental Housing T~ust Fund Guidel3nes
Dated November 13, ~ 998
mvoluntary tenant d~splacement In cases where tenants vv~ll be voluntarily displaced, the Applicant ~
must submrt a copy af a letter to each tenant wluch (1) details the tenant's nghts to relacation
-~
assrstance. and (2) has t~een signed by the tenant indtc~ttng the tenant`s voluntarSi ~Ta~ver of an~r
relocat~on payments
Coutraeting Rec~uirements
Ail Applicants will be required ~o subnut an affirmative action/equal emplayment opportunit}~ plan
mdicating the methods that the~ ~~i11 use to encourage the partic~panon of certified Minor~ty
Business Enter~rrse/Women Ow~ed Business Enterpnse {MBEIWBEs) u1 theu developmentpmJect
Ctty/Agency staff w~li re~~iew the plan and competit~tire bid and selection process to ensure that
required procedures have been followed Crt~~/Agenc}~ staffwill also monitor consEruct~on to ensure
that MBE/LVBEs are parttcipat~ng in th~ pra~ect as indicated m t~e consFruction contract
In accardance w~th the City's Women and Minonty Business Enterpnse Program appraved by City
Coun~i~ on Nlarch $. 19$3, a~l Borro~~ers are required to consider the City's Women and Ivixnoniy
Bus~ness Enterprise Program Librazy of Directones and Mxnority and Women Vendors' iisting the
procurement of equipment, matenal, supplies and professional services
All work shall be completed b~ State-Iicensed contractars wluch shall have Santa Momca business
licenses All contracts must compl~~ v~rxth competitive biddmg requirements Contracts o~~er S 1 Q.aQO
must be in accordance w-~th Cit~~'s `T~'omen and N~inoritE° Bus~ness Enterpr~se Program All efforts
shall be made b~~ the private o~•ner ar the Bano~~rer ta provide equal opportunity for ernployment
«~thout discriminatian as to race, marital status, sex. color, age, rel~gion, national ar~gm, ancestry,
pk~ps~ca~ disab~~ata. AIDS, or sex~ onenration. ;n seeking contractars ana subcontractors. _
Competitive Setection Criteria
In selecting among cornpeting pro~ect appl~cauons, unless otherw~se determined for a particular
project. pnorrtz~ shall be give~ ta pro~ects that
(t) Sr~nificantlv increase affordabie hausin~ opportun.~t[es for househalds wha haE~e
d~fficult~~ findmg housing including tlie homeless. lar~e families, the dfsabled, sen~ors,
and persons trad~tionally~ served bv Sxngle Room 4ccupancy housing
(?) Are cost effective or ac~tte~~e the lo~,~est possib~e s~bsidy per un~t for CitylAgency
resources
(~) Benefit a hagh percentage of ~~er~~ low and Iow zncome households b~~ ensunng deeper
af~ordabilitv
{4} Are located an areas currentl~ underserved bv affordable hausing de~-elopments
(5 ) Address an area of need identtfied in the Housing Element of the Crty of Santa Monica
Consolic~a~ed Rental Hous~~eg ~'ri~st Fund G~idelines Page ~3 .
F`HOliSIVG'~SHARE''~~-PFIL,ES'~GiJIDELI'~] TF Gutde 11-]3 wpd
avazded to the greatest degree feasible in order ta carry out the Pro~ram In cases where tenants will
be voluntanly displaced. the Applicant must submit a copy of a letter to each tenant which (1) details
t~e tenan~'s rights to relocat~on assistance, and (2) has been signed by the tenant indicatrng the
tenant's voluntar~ waiver of any relocation payments
Contracting Requirements
AIl Applicants will be reqwred to subrnit an afFizmati~re action/equal employment opportunit~~ plan
mdicating the methods that they ~~~ill use to encourage the participation of certified Minonty~
Business Enterprise/Warnen O~~~ned Busuiess Enterpnse (MBE/WBEs) in the~r development pro~ect
CityiAgency staff v~~Il revievv the plan and competrti~~e bid and selection process to ensure #hat
required procedures have been follo~~~ed CrttiT/Agency staff vvill also rnomtor constructFOn to ensure
that MBE/WBEs are participating in the pro~ect as ~nd~cated ~n the consuuct~on contract
In accordance ~~rth the City's Vi~omen and Minariry Business Enterprise Program approved by Ciri~
Council on ~Iarch 8. 19$3, all Borrowers are required to consider the Ci~y's Vi~'omen and Minorit~:~
Buszness Enterpr~se Program Librar~ of Dzrectaries and Mrnorrty and Women Vendors' listin~ the
procurement of equipment, matenal_ supplies and professionat services
All ~~ork shall be campleted b~ State-Iicensed contractors which shall have Santa Monica busmess
licenses All contracts must comply u~th compe~iti~~ e b~ddm~ requirements Contracts over $ l 0,OQ0
must be m accardance vv~th Cary's V4'omen and Minanty Busmess Enterpnse Prograrn All effarts
shall be made by the pri~~ate owner or the Borroi~er ta pro~-ide equal opportuniriT for emiplo}~ment
u~ithaut discrirnination as to race, mar~tal status. sex. color. age. religion, national origin, ancestry,
ph~•-s~cal disabflit~•, AIDS, or sexual onentatron, rn seeking eontraetars and subcontractors
Competitive .Selec~ion Criterla
~n selecting among competing pro}ect applications. unless other~~~se deterfnined for a particular
pro~ect, prior;n~ shall be gtven to pro~ects that
{ 1} Significantl}~ mcrease affardable housmg apportunrties for ha~seholds v~~ho ha~~e
dffficulnr findrng housmg including the homeless, large famii~es, the disai~led. seniors,
and persans tradit~onallti sen~ed b~c~ Sin~le Raom Occupancti- housing
~2} Are cost effecr~ve or achieve the loti~~est poss~ble subsidy per unit for Cit~-lAgency
resources
{;} Benefit a high percentage of ven~ lo« and lo~;~ incorne households by ensuring deeper
affordabilitv
{4} Are located ~n areas currentlG~ underser~.~ed by affordable hausing developments
(~ ) Address an area of need tdentified rn the Housing E~ement of the Cin~ of Santa Vlonica
Consoliaated Rental Ho~sing Trust Fund Guidelines Page 13
r t[I3USTC~G'SHAIiE'~GPFILES~GtiLD£LINTF Gwde ll-13 upd
V. LOAN C4MMITMENT AND CLOS~NG PROCEDURES
Loan Commitment
A commrtment letter shall be prepared by the Housulg and Redevelopment Drvisian, revie«~ed by
the Martager of the Divxsion and the Du-ector of Resource Management, and signed by the Cityt
~Ianaaer,'Executive Director The letter shall state the ma~imum amount of Program funds resenTed
for the prolect and I~st al~ of the addit~onal cond~t~ons, doe~ments and steps that must be taken by
the Borrower pnor to loan closmg The Crtv Manager/Executi~e Director shall have administrative
authorrt~~ to approve loans up to 20% in excess of ~2,SOfl,00D AlI loans whtch exceed $Z.SOa,00U
by~ more than 20% shall requare City Counc~i approval Nofice af the issuance of the cammrtment
shall be posted pubhcly. and a copy~ of such notice shall be publ~shed in a newspaper of general
circulatian
Upon ~ssuance of a ca~tment letter_ the Housin~ and Rede~Telopment Division shall prepare draft
laan documents, including a draft Loan Agreement, Promissary Note, Deed of Trust (or other
appropr~ate secunt}~ as determined b~~ the Hausing and Redevelopment Mana~er), and Regu~ator}~
A~reeme~t or recorded Cavenants, and submit them to the Crty Attorne}~'s office far revxew and
approy al as to form_ The submission shall include copies of the preli~inar;~ title report_ instructions
to escro~~ concerning the rtems that may appear on the trtle upon closing, and ma;- include the
purchase agreernent, Iang term lease aereement, or air-nghts agreement. as applieable Requirements
for a Regulator}~ Agreement or recorded Co~enants may be ~~at~ed in the c~se of a pro~ect which is
funded under the HUD Section 202 or Section 811 Program
Loan C'losrng
Funds ma~~ be disbursed follo«:ing execuuon of the loan documents b~~ t}~e Borrower and the Ciry
'_Vlanager/Executi~-e D~rector, and compliance «-~th all commitmen~ conditions Staff shall submrt
a re~ues# for release of fiands required for ]oan closing to the Finance D~rector The Finance Director
ma}' then authorize release of loan funds into an escrou- account estabiished for the loan closing
w-ith mstn,tctions for disbursement The Cit~ IAgenc}- v~~ill w~re funds to escrow ttivent~~-four hours
prior to the scheduled close of escrow
Coasolidated Rental Housing Trust F~nd Guidelines Page 14
F'NOUSIti`G SH~KE WPF[LES GC'[DELItA~TF Gmde 1 t-ll r~pd
VI. PROJECT MONITORING AND REPORTING
The Housing and Redevelopmen# Division shall monrtor the pro~ect dunng rehabilitation or
construction as needed far campliance w~th any Regulatary Agreement or recorded Covenants, the
loan documents and applicable Cit}. State and/or Federal regulat~ons The Hausmg and
Rede~relopment D~vision shall zequest notification of the final inspection and final canstructian
release from tl~e pnmarST lender, and shall revzew management practices and reporhn~ procedures
w~rth the Barrower and pro~ect management agent at that time for full compliance wrth Pragram
requirements A copy oFthe Iv otice of Completion for the pro~ ect shall be submitted to the Hous~ng
and Redevelopment Divis~an a~ tl~e time the I~ otice is recorded
Borrowzrs shail be required to certify annuall~- that the~~ ha1~e camplied w~th affirmatrve marketing
ar~d tenant selectian procedures, and shall subm~t an annual report to the Housing and
Redeveiopment Division in the form specified by the Division The Housing and Redevelopment
Di~: ision shall morutor cornpliance wit~ any Regulaton~ Agreement or recorded Covenants, the laan
docurnents, and applicable City~, State and/or Federal regulatians on an annual basis
Far prolects funded under the federal Secnon 202 Suppornve Housmg Program and Section $11
Supporti`~e Housing Pragram, durFng the term of the HLTD Caprtal Ad~~ance documents. compliance
~iith the HLTD dacuments will constitute campliance wnth the provisions of these Gi.udelines
Fair Housing and Equal Opportunity
Borrower shall post notices stafing that a housing pra~ect fs sub~ect to Fair Housing and Equal
Emplo~•ment Opportunit~- requirements of 2~ CFR 92 3~0 and 351 at each pro~eci srte The name
and telephone number of the Fair Housing Officer of the City of Santa Monica va~lll be included on
the nottces
Fair Housing complaints are referred to the Gity Attorney's office #~or in~c~estigation If, after
investigat~on. rt is determined that d~scrimination in the rental or sale of housing has occurred, the
Cih~ Attorney- ma}~ attempt to mediate a settlem~nt bet~i~een the ovs~ner/seller and the complaining
party Mediation is usualiy successful Howe~~er. if i# is not, the party u~th the complaint may
proceed to file against the owner/seller If a pattern of discrjrnination has occurred, the CityiAgencs~
ma~r fiie suit :for unfair busmess practices or other applicable ~~iolations
Establishment and Use af Reserve Funds
Upan completion of pra~ect constructian. the Barro~~er will be required ta cagrtalize a Replacement
Reserve Fund in an amount determined b~° the Crty~/~genc~~ and make annual contribuuons to the
Fund The Replacement Reserve Fund can be utilized for expendrtures related to necessary
structural and equipment replacements and improvements of a capital nature, and is not intended to
be used far ordinan~ maintenance items An~• expendrture by the Borrov~~er from ~e Replacement
Consalidated Rental Housing Trus~ Fand Guidelines Page ~5
F •HOLSIVG SHARE'~~I~PFILES'~GfJIDEL[ti~TF Gwde 11-k±~~pd
Reserve Fund m excess of ~2,~00 must be approved in advance hy the Crty,`Agency in w~riting
Expendit~res of $1,400 to ~2.SOU must be documented by paid mvoices submitted to the
CrtyfAgency wrthin 30 days of d~s~ursement fram the Replacement ~Zeserve Fund.
The Borrower must capitalize an Operating Reserve Account at the comg~etion of construction The
Borrower is requ;red ta make monthly conmbutions to the Account at an amount to be determined
by the City/Agencs Funds may be disbursed from the Operat~ng Reser~ e Account to provide
financial stabilit~- durulg periods of financial stress, and to meet deficrts in aperatmg casts, rent
deficrts, ar debt service Disbursemenfs in an amoun~ xn excess of $2,504 must be appro~ed ~n
adti~ance by the Cit~•IAgenc~• in wrrting. Disbvrsements of $1,04Q to ~2,5~0 must be documented by
paid in~o~ces submitted to the City~Agency- withm 30 days of disbursement fram the 4peraUng
Resen~e Account
The Housing and Redevelopment Manager may approve consolidatian of Replacement ResenTe
Accounts and Operating Reserve Accounts ~nto one account upon reqnest of the Borrov~jer
Consvlic~ated Rental Housing Trust Fvnd Guiael~nes P~ge ~6
F'•H4LSRtiG~SHARE' WPFILES`.GUiDELII~•TF Gwde I E-l3 apd
vYx. FuNniNG soVRCEs
HOME Trust Fund
Source of Funds
Funding far this Program is provided through the U S Department of Housxng and Urban
Development (HliD} HOME Prograzn, and therefore is subject to the federal rules and regulations
found in 24 CFR Part 92, as amended from time to taane
Eti~ible Barrowers -
Eligible barrov~rers are non profit Housmg De~°elopment Corporat~ons (HDCs) wrth praven capacity
to de~ elap, oti~-n and operate housing. and ~~~hich have a vaiid 501(c)(3 ) or (4) designation from the
IRS. and pnvate owners of multi-fa~1~- and SRO rentai buildzngs v4~th proven capacity to develop.
a~~~n and operate affordable housing Lim~ted partnerships «-hose general partner is atherw~se
eligible are alsa eligible to borroti~ Program funds
Eligible Projects
Pro~ects eligi~le for HOME fund~ng shall
! 1) be rental pro}ects located m the Crt}~ of Santa Monica,
(2) con#xibute to the achievement af the City's fair housing goals.
(3) involve 4 or more apartrnents or single-room-occupanc~- (SRO) units wluch i~II be
rented to ehgible loti~er-~ncozne households at rents that do not exceed rents as defined
by 24 CFR 92 252. dated September 16. 1996. as amende~ from time to time Pro~e~ts
sen~~n~ persans wi~li special needs, ar ~-here the Czn~ Manager finds that the pro~ect wlli
pro~~ide a substantial public benefit. may have fe~~er than four apartments or SRO units
Transitional or permanent housing may be pro~ ided (but not temporary shelters}
{~) ha~°e at least 20% of the H41iIE assisted units rerned to ti~enr low income famzlies (54%
of inedian incame) under the terms and conditions set forth Fn 24 GFR 92 252 (2)(b),
(~) demonstrate financial feasibilin= -- including the abilih~ to maintain rents for the
subs~d~zed units at affordab~e levels for the penods spec~fied m 24 CFR 92 2~2,
(6) be free of significant ad`°erse en~~ironmental Fmpac#s. except those that can be mrtfgated
through the pro~ect rtself,
(7} minimize tenant displacement.
{8) comply ~vith all local building and zomng codes and standards, including energy
efficienc}~ and ~~~ater conservation standards. meet housing quaIity standards ~n Section
882 109 of Title 24 Newly constructed housmg must meet the current edition Model
Energy Cade of the Council of American Bwlding Offic3als.
{9) make efficient use of public funds and a~-oid "la~errn.g" of subsid~es beyond thase
necessar~~ to achieve a financiall}~ feasible pro~ect.
(10 j have at lease ~ 1% of the pro~ ect space be residential, if in a iru~ed use pro~ect
{ 11) Acquisrtion or Acc}tusition and Rehabfhtation pro~ ects shall have at least 51 % of the unrts
accup~ed by° househo2ds ;i°ith jncomes that do nat exceed 8~% of inedian incame,
Consalic~atec~ Rental Ho~sing Tr~st Fun~ Guidelines Page 17
F ~HOUSi[iG'SH4RE~~YF[LES'GLE~ELIN•1F C~vodc 11-13 wpd
ARTICLE I. GENERAL PROVISIONS
1.01 Parties to Memorandum
This Memorandum af Underst«nding (MOU) has been prepared
pursuant to the terms of Ordinance No. 801 (CCS) o~ the
City of Santa Monica, which Ordinance is hareby
incorporated by reference as if Lully set forth h~rein,
ana has been executea by ~he Cx~y Manager on behal~ of
managemant officials of the City and by the Public
Attorneys' L~gal Support Staff Union signatory hereto who
occupy the fu11-time job classificat~ons set fo~th in
Section 1.05
1.02. Purpose
The parties agree tha~ the purpose o~ this MOU ~s: to
promote and provide rarrnonious relat~ons, caopera~ion and
understanding betwean the City and the employees covered
here3n; to provide an orderly and equitable means of
reso~ving dif~erences whzch may arise under this MOU~ and
to set forth th~ full agreements of ~he parties reacned
as a result of ineet~ng and conferring in good faith
regard~ng matters with~n the scope a£ representatian for
employees covered herein.
1.03. Term of Aqreement
This Agreement shall be effective as of July l, ~'~ 1998
and shal~ remain irf fu11 force and effect until
June 30, 1998 2QOQ Tt shall be automatically renewed
from year to year thereafter unless either party natifies
the other zn wr~.t~ng not later than March l, 1998 20U0 (or
in the event of an autiomatic renewal, March 1 of ~.he
fallowing year) that it desires ~a terminate or madi~y
this Agreement and specifically indicates requested
madificatzons. In the event such notice is given,
negotiations shall begin no 7.ater than Apr~l 1S wi~h a
sxgned cantract des~red hy July 1.
1 04. City Council Approval
It is, however, ~he mu~ual understanding of all the
p~rtie~ hereto tnat such Memarandum of Understanding is
of no force or effect whatsoever un~ess or until rat~f~ed
and appraved by the City Couneil of Che C~ty of Santa
Monica.
3
5 commercial properties.
6 temporary she~ters, or
7 pro~ect-hased rental assistance
Affordability Requirements
A housing pr~~ect qualifies as a HOME assisted affordable housxng pro~ect if rents are limxted as
follo«~s
At least 20 % of t~e HO~IE assasted unrts are
a) Occupied by very low-income fam~i~es ~~ho pa~r toward rent nat more than 30% of the
faimly ad~nsted income, or
b) Occupiea by ;~ery lou=income famil~es ana bear rents not greater thari 30% of #he
gross income of a fam~ly whose mcome equals ~ 0% of the median income, as determuied
by HUD In determimng the m~imum monthly rent, the landlard must subtract a
mor~th~~~ al~owance for ar~4~ uti~rties and sen~ices (exc~uaing telephone} to be paia by the
tenant
2 All rematnmg H4ME assisted unrts must bear rents not greater than the lesser of
a} The fa~r market val~e for exist2ng comparab~e ~mts tn the area as establ2shed b~ HUI},
less the monthl}~ allawance for utilrties and services to be pa~d by the tenant, or
b) A rent that does not exceed 30% af the ad~usted mcome of a family «~hose income
equals b5% of the medran fncome for the area as determined by HLJD ~n determzn~ng
the maximum manthl~~ rent, the ouTner must subtract a monthl~~ allow~ance for ut~lrties
and services to be paid b~~ the tenant
3 Is occup2ed onlv bv households that qualif~~ as Zo~~~er 2flcorrie (SO% of inec~2an inco~n~)
families,
~ ~~i'ill remain affordable, pursuan~ to deed restnction, covenants runnzng with the iand, or
other mechan2sms that ensure that the propertu 1~711 remain affordable w~thout regard ta
the terna of the mortgage ar transfer of o~~nership for not Iess than 5~ ti~ears
Ott~er Requirements
~Ninimum ~oan: AlI HOME investments must total not less than $1.040 multiplied by the n~unber
of HOME assisted unrts in the pro~ect
Maximum Loan: The maximum amount of subsid~~ per umt sha~l not exceed tl~e max~mum allowed
by~ HUD under the H~ME program {24 CFR 92 2~0)_ ar that provided far under Section IV, Loan
Terms, of these Guide~ines. v4,~~zchever 2s ~ess The CZt~~ ~~71~ avo~d unnecessar~~ layenng of subsidies
from different federal. state and locai programs and seek to ma~ian~ze the benefit to target
hausenolds from the investment of HOME funds in a pro~ect See E~i~bits (~n Sect~an VIII of th~s
report) for Home Program Subs2dy L~m~ts
Praperty~ Standards: Housing that is assisted with HOME funds must rneet, at a mirumum, the
hous2ng qual~ty standards of all local codes. rehab~l~ta.t~on sta.ndards and zomng codes Newl~~
constructed housmg must meet the current edition of the Model Energ}> Cade published by the
CQnsolidated Rental Housing Trust Fund Guidelines Page 19
F'~]i0U5I~G SHARE'u~PFILES'GC:IDELII~~FFGu~de 11-13upd
Council of Amencan Buildmg Officials Substant~ally rehabilrtated housmg must meet the cost-
effecti~e energy conservation and effecht~eness standards ~n 24 CFR 39.
Lahar Standards/Canstruction Contracts: Any cantract for constr~ict~an (whether rt is for
rehabilitation or for nev~~ construction) of affordable housing ~~rth iz or more units assisted wzth
HO'~VIE funds must contaui a provision requiring that not less than the prevazling w~ages pai.d ~n the
localit~~. as deternuned by the Secretar~.~ of Labor pursuant ta the Davis-Bacan Act. ~~il1 be paid to
all laborers and mechanics emplo~~ed in the development of the pro~ec# Contractors and
subcontractors must comply w~rth regulat~ons issued under #his Act and pertauung to labor standards
and HUD Handbook I 344.1 These provtsions applyr v~~hether HOME fiznds are used far constructFOn
or non-construction costs
Lead based Paint: Housmg ass~sted ~;nth HOME funds constitutes HUD-assoc~ated housmg for the
purpase af the Lead-Based Paint Poisaning Prevention Act and is therefore sub~ect to 24 CFR Part
35 litiless atherwise provided, borrow~ers are respons~ble for testing and abatement
Conflict of Interest: IVo person who is ara emp~ayee, agent, consultant, offcer, or e~ected o~ctal
or appoin~ed off cial of the Crty v~:ho exercises or has exercised an~~ functran or responsibility v~~th
respect to act~vrties assisted v~~rth HOME funds or «~ho is in a position ta partrcipate in a decision
mafang process or gain inside ~nformation u°rth regard to these activrties, ma~ abtain a financ~al
interest or benefit from a HOME assisted activit~-. or have an interest in any contract, subcontract
or agreement with respect thereto, or the proceeds thereunder, e~ther for themselves or those wrth
~~=hom they have familv ar business ties, durrn~ their tenure ar for one vear thereafter
Religious organizAtivns: H01~E funds ma~~ not be provided to pramarily rel~~ious orgamzations,
such as churches, for any activin~ including secular activities In addition, HOME funds ma} not be
used to rehabilita~e ar construci housing o~vned b}~ primar~ly religious organizations or to assist
primanl~ religious orgamzations ~n acquiri~g housin~ Hov4e~er, H4ME funds ma~ be used bti- a
secular entin~ to acquire housing from a primarily religious organizat~on. and a primaril4 religious
organizaiion may transfer title to propert}~ to a i~hol~y secular entiri- and the entiri= may participate
sn the HQME program in accordance w~th the req~rements of th~s part The ent~t}~ rrzay be an
existing or newly established entiri~ («~hich ma~~ be an entin~ establxshed. but not controlled, by the
religious organization) The completed housmg pro~ ect must he used e~clusively b}~ the owner entitv
for secular purpases. available to aIl persans re~ardless of rel~gion In particular, there must be no
reltg~ous or membership crrteria for tenants of the property
Consolidatec~ Rental Haus2ng Trust Fund G~idelines Page 20
F?NOUSING~SH4RE'~V.'PFILES:GCIDELR:•7FGmde I1-13 uvd
CDBG h~ousing Trust Fund
Source of Funds
Funding for tlus program is pro~~ided through the U S Department of Housing and Urban
De~~eloprnent (HUD) Cammuni~' DEVelapment Block Grant {CDBG) program. and therefore is
sub~ ect to the federal rules and regulation faund m 24 CFR Part 5 70, as amended from time to time
Eii~ible Borrowers
Eligible borro~~~ers are cornrnuruty-based nonprofit hous~g development corporattons (CBDOs} dul}~
orgamzed or wrth capacity to promote and izt~dertake communih~ development activrties on a
not-for-praf t basis, vwith proven capacity to deti~elop. o~iTn and operate affordable housing, wrthin a
ne~ghborhood zdentified in the Commurut~~ Development plan Such orgamzahons are defined m
CDBG re~ulations (24 CFR 570 204{a)(2}(c}(1 j} Nonprofit Housmg Developmem Corporations
(HDCs) and social servlce agencies ~~th praven capacit~ to develop, avti-n, and opera#e housing. and
lfmrted partnerships ~~hose generai partner{s) is other«~ise eli~~ble under the above provisions are
also eligible ta barro~~ Program funds if the nonprofit partner is the managmg general partner
throughout the term of the Ioan and v~ill recei~-e at least S1% of the c~eveloper fee Nonproft
corporations must have a~-alid ~O1(c)(3} or (4) designatlon frorn the Internal Revenue Service
Eli~ible Projects
Eligible pro~ects v4~i11 (1) ha~e four ar more apartment unrts, single room occupancy {SRO) units.
or fewer than four apartments or SRO umts in the case of a~roup home, mobile horne unit or where
the Cit`.~ Manager finds that the pro~ect vs~ill provide a substantial public beneft. (2) if acquisition
or rehabilitation, have at least 51 % of the units occupied b~~ low• and moderate income tenants at the
time of acquisrtion (except as approved b~~ the Cit~~ Vlanager}, (3} if new construction, have ?0% of
the un ~ts occupied b~ lo~~~ income tenants, (4) be free from sigruficant ad~erse environmental impacts
e~cept those that can be mit~~ated, and, {5} avoid permanent involuntary tenant displacement to the
greatest degree feasible ~n order to carn° out the program Transrtional or permanent housing may
be provided Rents of ass~sted umts shaii be affordahle to households «-hase incomes do not exceed
8D% af the area median income
Eli~ibie Uses and Activities
Funds can be used to malce loans to eligible borro«~ers to pro~Tide affordable housmg, principallv for
low• and moderate income househo~ds. includmg but not limrted to
f 1) acquisition andlor rehat~ilitation of eligible rental properties.
f2) ne~r,~ construction of rental or lim~ted equit~~ cooperati~~e housxn~ b~~ a CBDO is elxgible,
proi~ided the construction activrty is carned out as part of a neighborhood re~~italizat~on,
communxty econamic de~elapment or energy consen~auan pro~ect,
(~) prede~~elopment loans up to a period of twenry-four months for srte acqu~srtion or
construction Such loans rriay be extenc~ed for up to 12 additional. manths at the discret~on
of the Housing and Redevelopment Manager
Consolidatea Rental Hotising Trust Fund Ga2del~nes Page 21
F ~HOL'~STrvG`~SH4RE'u"P£ELES•GtiIDELIN'~7FGmde E1-13 wpd
(4) acquisition of shart-term occupanc}~ rentai housing
Funds may also be used for related predevelapment acti~-~t~es, includmg professional services whtch
cannot ~e obtalned on a eant~ngency basis
Ineligible Uses and Activities
Funds ~na~~ nat be used far the fallow-~ng act~vrties.
(l j th~ constr~ctzon of neu~ ~ental $DUSlliS Or ffli' anV program to subs~d~xe or ass~st such
housing except when carrted out b~~ a CBDO.
{2j to prov~de income payments for rent or ut~l~ties, except in emergency situations for a
penod not ~onger than three months
(3 j to assist renta~ housing propertres ~f ~ess than ~~% of the units ~~il~ be occupied b~~ lou~~
and moderate income households However, such housmg ma}- be assisted where
(a) The assistanee is for the pzupas~ of reduemg the deveZoprnent cost of ne~~
canstruct~on,
(~) The pro1ect is not designed for/occ~pied b<< elder~y households;
(c) At least 20% of the units ~~ill be occupied b~= low- and moderate-income house holds
(households 1~zth incomes ~~°Iuch do not exceed SO% of rnedian income}, and
(d) The proportion of the total cost of developing the pro~ect (to be borne b~~ the CDBG
funds) is Iess than or equa~ to the proportion of the uruts in the project ~~~hich vvill be
occupied br lovv to maderate income households
Campliance vvith Federal and Local Regulati~ns
All pro~ects must comply with all applicable federal requ~rements contained in 24 CFR Part 570
Subpart K, including but not l~rrtited to standards of financial management, environmental re~~e~~,
labar and ~vage requirements, debarred contractors. lead-based parnt and equal oppartunity
Barrowers should note
Contract Requirements: All «~ork shall b~ completed b~~ licensed contractors. ~I] contracts must
compl~ wrth competrtive bidding requirements
Labor Stasrdards: A property ~~~th eight or mare residential units must comply ~°ith the Federal
Labor Star~dards. includ~ng th~ Davzs-Bacon Act reqn~rements, as promu~gated b}~ HUD, and set
forth in 24 CFR Part ~70, Suhpart K m the performance o£ the rehabilrtation ar constructton work
ftnanced b~~ the ~oan Contracts over ~ 1 q.00Q must comply ~~tth Ec~ual Opportunin- Aff rtnati~e
Action requirements of Secuon 3 of the Hous~ng Urban De~elopment Act of 196$ and be m accard
v~~tth the Citt-'s ~~amen and Mrnortn~ Busrness Enterpnse Pro~ram A11 efforts shall be made to
pro~~ide equal opportunity for emplo~'ment ~~-ithout discnmination as to race. ma~rital status. sex,
color, age. rehg~on. national ongln or ancestr~-, and to seek aut quahfied local tradespeople for
contracting and subcontract~ng bids
Consolidateci Rehtal Hausing Trust Fund Gvidel~nes Page 22
F ~FIp~:SIVG'SHARE~S~~FILES~GUIDELII~'~F"F'Guide 1i-13 u~pd
Lead Based Puint: All pro~ects must compl~ with tlie federal Lead-Based Paint Hazard Abatement
regulations conta~ned in Subpart K, 24 CFR 570
Accessibifity: AII projects must comply v~~th the federal Section 504 Disabled Accessibility
regulations contained ~n Sections 822 and 8 23 of Subpart C, 24 CFR P~rt 8
Religious Organizatinns All proJects must be used exclusi~ely for secular purposes, and must be
available to all persons regardless of relig~on The hausing inay nat be used for vt~orsl~ip or religious
mstruction
Consolidated Rental Housiag Trust Fund Guidelines Page 23
F'~.HOUSI'~GSH4RE'~V.'°F6LE5'GI:IDEL,IN•'IFGwde ll-i3 upd
Citywide I~ousing T~rust Fund
Source of Funds
Funding far this program is provided using revenues generatec~ {i) throu~ De~elopment Agreements
w-itii for-profit development fu~ms doing business in th~ City of Santa Momca. (iaj the Inc~ustonaxy
Program created by prd~nance 1& 15 and the Affordable Housma Productian Program established
b~ Ordtnance 1918; and (iit) the 4ffice Mxt~gation Fund
Eligible Borro`vers
Eli~ible borrov~~ers are nonprofit Housin~ Development Corporations (HDCs} ~vrth proven capacrty
to develop. at~~rt. and operate affordable housmg. and whose Arncies o~Incorporation and Bylaw~s
irrevocai~iti~ dedicate resrdential propertyo u«~ned b~ the corporation to the charitable purpose of
prot~iding affordable housing to low and moderate income households Limited partnerships u~th
such a nonprofit housmg develapment corporat~on as the general partner are also eli~ible borrowers
if the nonprofit partner is the managm~ general partner throughaut the ternn of the laan and ~r711
receive at Ieast ~ i°10 of the developer fee Nonprofit corporations must have a~-alid 501(c){3) or {4}
designation from the Intemal Revenue Ser~~~ce
~ligible Projects
Funds can be used to make deferred laans ta eliQible borroti~ers to provide affardable hausing, for
lo~ and z~en 1~~;~ mc~me h~~sehoids through acquis~tion andlar rehabilitataon or neu~ construct~on.
Eligible rehabilrtation pro~ects will
(1) be in need of rehabilitation as def ned herein;
(2) be located in the Citt~ of Santa Mon~ca,
(3~ be free from s~gmficant ad<<e.rse env~ronmental ampacts ex~ept those th~t can be
mitigated thraugh rehab~litation, and
{4) avoid permanent m~~oluntary tenant displacement to the greatest degree feasible tn order
to carn' out the program
El~gjb~e pro~ects u~hach invalve ~e« constri.iction or con~-ers~on of an exastrng non-residenttal use
«~ill conform ta iteans (2), {3}, and {4) above
Eligible acquisition and rehabilitation pro~ects sha11 have at least 51% af the units occupied by
household5 ~~Those ~ncomes do not exceed 80% of inedian ~ncome. adjusted far household size. at
the time of acquis~tion {excep~ as approved b~~ the Cin~ Manager) Al1 assist~d uruts shall be
affordab~e to households v~~hose mcomes do not e~ceed 60% of inediar~ income, and (except for
no~seholds in occupancy at the time Qf acquisrtion) shal~ be occugied by housel~olds ~~~hose incomes
do not exceed 60°~0 of inedian income
Conso~idated Rental Housing Trust Fund Gaidelines Page 24
F :HOI'SING`~SHAAE•V~PFILES'~GUIDEL['J`TF Gutde 11-1 ~ wpd
For new construction pro~ects. any urut assisted under this program shall be affordable to and
occupied b~~ households whose mcomes do not exceed 60% of inedian income as adJusted for
househoid size
Eligi6le Uses and Activities
Funds can be used to nnake loans to eligible laorrowers to provide affordable housing, for low and
venr lavv 2ncome households, including but not limrted to the follo~'ing•
(1} acquis~non and rehabihtation of eiigible rental properties,
(2} acquisition and convers~on of non-res~dentiaP propert~' t0 IriLl~tifc`itlll~~' Of 5II1~I~-T'OOril
occupancy rental housing untts.
(3) ne~i~ construction of rental housing umts.
(4) acquisrtion and rehabilrtatFOn or construction of single-room occupanc~~ hausin~ umts,
{5) predeveloprnent loans up to a period of 24 months far site acquisrtion, predevelopment
act~vrties. including professional serv~ces i~~hich cannot be obtained on a cantingency~
bas~s, and cor~struction 5uc~ loans may be extended for up to Z4 additional months at
the discretion of the Housing and ~2edevelopment ivlanager; and
(6) br~dge loans up to a period of ten ~-ears to be repaid by equit~~ contribuhons of limrted
partners
O~her Requirements
~'unds denved from the Inclusionary Hausing Program and from the Affordahle Housing Production
Program ma~ onl~~ be used for (i) new~ construction expenses, or for (ti) acquisrtton expenses incurred
in con~unct~on w7th new~ construction of proaecis Umts assxsted c~-~th Inclusionary Program or
Affordable Housing Production Program funds shall ~e primarily un~ts for Families ~~th an average
of ti~•a bedrooms
Reli~ious Or~anizations
All pro~ects must be used exclus~vel~~ for secular purposes. and musE be a~~ailable to aIl persons
re~ardless of religion The housing may not be used for ~vorslup or religious instruction
Consal~dated Rental Hous~ng Trust F~nd Guide~ines Page 2~
F I-lOUSItiG'SNARE•1a'PFILES'•GUEDELIN•'ff' Gu~de 11-13 w-pd
Redevelopment Housing Trust .Fund (formerly CHARP)
Source af Funds
Func~ng for this program is generated from the Cih~'s redevelopment pzo~ect areas This prograzr~
specificall~ uses tax-mcrerrtent re~~enues w°luch are set aside far the purpose of "increas~ng,
impro~~ng and preser~.~mg the com~nunxt}T's supplq of lov~- and moderate mcome housing" as
stipulated bti~ Califorrua Redevelopment Law, Heatth and Safety~ Code Section ~3334 2
Eligible Borro~vers
Eligible borrow~ers are nonprofit Housing Development Corporations (HDCs) duly or~aruzed to
promote and undertake commururi: de~:elopment actiti~ties on a not-for-profit basis, ar for-profit
housing de~~elopers or det-elapment corporat~ons, ~~~ith prot~en capaczt~es to de~~elop, own. and
operate affordable housing Lim~ted partnerships whose general partners are othen~~ise eligible under
the abo~-e are also eligible to borrow Program funds
Eligible Projects
All acquisrt~on and rehabilrtation un;ts shail be affordable to housei~olds whose incomes. as ad~ usted
for household size, do not exceed 120% of inedian mcome, and {except for ~ouseholds ~n occupancy~
at time of acc~uisition) shall be occup~ed by households ~~~hose incomes do not exceed 120% of
median mco~ne If existing tenants at the time of acquisrtion or fundmg of the pro~ect have ~ncomes
above the required level, Crty staff may defer these requirements as to ihose umts housing such
tenants onl~~ where the intent to use the propem~ far future affordable housmg to persons and
families af law and moderate mcame has been adec~uatel}- documented Cit~~ Council actinn on this
exemption ~~~ill talte place ~n the form of a blanket resolution SuCh deferred umts v4°ill be required
by~ appropriate covenants to be converted to affordable unrts w~hen the exzsting tenants vacate the
un~ts Eli;ible acquisition or acquisition and rehabilitation proj ects shall have at ieast ~ 1°/a of the
units prev~ousl~ or currentl;~ occupxed by tenants ~~vith incomes that do not exceed $0% of inedian
income, ad~usted for househald size (except as appra~red bS: the Executive Director}
All ne~~ construction pra~ects shall be affordable to house~-olds whose income, as adjusted for
household siz.e, does not exceed SO°/a of inedian incorne
Eligihle acquisition and/or rehabili#atian pro~ects will be in the defined redevelopment pro~ect area
ut~less the Rede~-elapment Agenc~- makes a finding that use of rede~~elopment funds o~tside the
pro~ect area will be of benefit to the rede~elopment pro~ect area In addition. eiigible pro~ects will
(1) have four or more apartment or SRO unrts or be a group home or mobile home uiut.
except where the Executiti-e Director finds that the pro~ect v4ri1~ pra~~ide a substant~al
public benefit,
(2) be in need of rehabilrtation as defined herein.
(3} be located in the Cit~~ of Santa Nlomca,
Cansoliclated Rental Ho~s2ng Trust Fund Gaidelines Page 26
F'~HOUSI~G~ SH ARE' ~4'PF1LE5'GUIDELq~ •TF Gwde i l-1 ~ upd
(4) be free from sigmficant adverse en~~ironmental canditions except those that can be
mitigated at a reasonable cast through rehabilrtation; and
(~) m~nimize tenant displacement
Eligible Uses and Activities
Pro~ram funds can be used to make Ioans to eligible borrowers who wi11 provide affordable housing,
principally for lou~ and maderate income households Eligible Uses of deferred payment ioan funds
include, but are not l~mited to, the follov4~ng
{1) acquisrtion andlor rehabilrtation of eligible properties for rental or transitional housing,
{2} acquasrtion and conversia~ of non-residentia~ prapert~' ta mult~fami~ti? or single room
occupanc~' rental housing umts,
{3) ne«; constructfon of housing unrts for rental or transrtional housing.
(~) acqu~srtion and rehabilitation of single-roo~ occupanc~ housing unrts,
(S} predevelopment loans up to a penod of 24 months far srte acquisrtion, predevelopment
activities, including professional sen~ices «~hich can.not be obtamed on a contingency
basis, and constructron Such loans mav be extended for up to 12 additior~al rnonths at
the discrehon of the Housing and Redevelopment Manager, and
(6) bridge loans up to a periad of ten ~~ears to be repaid bt' equrty contributions of Iimited
partners
Afforda6ilitv Require~nents
Units are considered affordable when the rent, less a deducuon for a utilrt~ allowance for a"very-
low~ ' income household does not exceed tlum° percent t30%} of 50% of the area median mcome, for
a"loti~•er" income household does not exceed thim~ (30°/a) of 60% of the area median income, and
provided that for "moderate" income persons and fami~ies whose income are above 11 ~°/a of inedian
incorne, unFts are considered affordable ~~~en the rent. less a deductxon for a utilrty allowance. does
not exceed thirty percent {;0%) of such person's or fa~nilv~s mcome
Ve~--lo«- income househo~ds are hauseholds v4hose incomes do not ex~eed ~0°!o af the area median
Lower income households are households ti~•hose income does not exceed 80% of the area rnedian
Lau- and moderate income households are househalds whose income does not exceed 120% of the
area median income The area median as referenced above is the Lo~ Angeles CountS~ median
incflme ~gure_ ad~usted for famxly size. as published b~- the U S Department of Housing and Urban
Develapment (HUD} from time ta time
Project Monitoring
The Rede~~elopment Agency shali monitor a.~nualli- any housing affordable to households of 1aw° or
moderate income funded u-ith rede~~elopment funds The Agenc}r ~r~ll rec~uire o~rners or managers
of the hous2ng developments to sub~rut an annual report to the Redevelopment Agency~ The annual
report v~-i1~ include information on rental rates. famil}~ ~ncome. and famil~~ size of occupants
Consatidated Rental Housing Trust F~nd Guidelines Page 27
F HOtiSIVGSH~RE'•~IP~ILES'•GIJIDELIN'TFGwdel]-1±~F~pd
Securitv
The lflan shall be secured by a Deed of Trust and Promissor~° Note v4~hich may be subordinated to
deeds of trust securing other Federal, State, or Cit~~ Ioans, or Ioans &om conventional financing
institut~ons used in conjunction with the Redevelopment Trust Fund Laan an the same property.
The Rede~elopment Agency must obtain w~tten commitments ta protect the a~ency's m~-estment
m the event af a default The Redeveloprnent Agency must approve all requests for subordinat~on
The loan shail be further secured b~r recorded Covenants and Restnet~ons. ruruung ~~~th the land,
to assure that Program fiu~ds are used to provide long-term affordable rentai housing opportiuuties
for Ioti~~ and moderate ineome households Ihe Borrower and ~he Redevelopznent Agency shali
execute and record Covenants and Rest~ict~ans regulatmg pro~ect rents, tenant selechon procedures,
use of pro~ect income. management and maintenance, transfer af property, and permitted forms of
o~i~nership and use, ~ncluding a proh~6itzon on con~~ersion of the pro~ect to cond~m~um ar stock
coaperanve ownership for the term af the recorded Covenants and Restrictions The recorded
Covenants and Restncuons shall provide for the Iongest feasible time. but for a period not less than
the effect~veness af the Redevelopment Plan for ~i~hich the redevelopment pro~ect area is generatmg
rede~ elopment tax increment funds 1`TOtwithstanding the abo~~e, the Covenants and Restrict~ons
would in no e~ent, be shorter than any ot}ier term of a Regulatary Agreement or Co~~enant recorded
concurrentl~- ~vrth the agency's Covenants and Restricuons The Covenants and Resmcuons shall
be recarded ~~ith the Deed of Trust
In some cxrcumstances. these Covenants and Restricuons may be subordxnated b}t the Agency,
p~rsuant #o Section 33334 3 of Califarnia Health and Safery Code, to Iiens, encumbrances, ar
regu~ator~~ agreements of other federal or state agencies or Ienders providmg financin~ for the
pro}ect
Reli~ious Or~ani2ations
All pro~ects must be used exclusivel~~ for secular purposes, and must be ati-arlable to all persans
regardless af religion The hous~ng may not be used far worship or reiigious instruction
Consolidated Rental Housing Trust Fund Guidelines Page 2S
F'•HOUS['~G`SHAR~'•V.PFELES'GI,ID£LLN•TF Gu~de 1 f-l~ u•pd
TORCA Housing Trust Fund
Source of Funds
Funding for this program Ys pravided using revenues generated pursuant to the Tenant Ownerslup
Rights Charter Amendznent, as amended b~~ Proposition K
Eli~ible Sorrawers~
Eli~ible borro~vers are nonprofit Housing Development Corporations (HDCs} with proven capacit}~
ta develop; ow-n. and operate affardable housing, and ~vhose Articles of Incorporation and Bylaws
irrevocabl~' dedicate residenhal property o~~ned by the corporation to the charitabie ~urpose of
provtding affordabie housing #o lov~: and moderate ~ncome households Limrted partnerships with
such a nonprofit housing development corporation as the general partner are also elig~ble borrowers
~f the nonprofit partner ~s the managing general partner throu~hout the term of the loan and will
receive at least ~ 1°10 of the developer fee I` onprofit corporations must ha~e a valid ~ O l(c}(3) or (4}
designatian fram the Internal Rer~~enue Ser~~~ce
Eli~ible Projects
EI~gible pra~ects mclude acqu~srtion, rehabiiitatt4n, or nev~ canstruct~on of rental hausing pro~ects
~i-h~ch
(1) consrst of mobile home umt(s), group home. SRO umts, ar hat e four or more apartments,
except where the CitV Manager finds that the pro~ect «-~ll pro<<ide a substantxal public
benefit.
('') are located m the Ciri- of Santa ~lonica,
(3) are free from significant ac3z~erse enviranmental impacts ekcept those that can be
mrti~ated_
(~} avoid permanent involuntar~~ tenant displacement to the greatest degree feas~ble ~n order
to cam~ out ti~e prograrn and
(~} have at Ieast 51 % ofthe units occupied b~~ households v~~hose mcomes do not exceed SO%
af rnedian incazne, ad3~sted for ~ousehold saze. at time of acquisitian (except as approved
b~ the Crt~r Manager)
Pro~ects vu~hich m~~ol~~e con~~ersion of an existing nonresidential use to residential use are eligible
Transit~onal or permanent housing mai- be pra~-aded Pro~ects «~hich invol~re the conversion of
mobi~e home units to limited equit~~ housing cooperaEi~e ov~~nerslup are also permitted
`V4'hxle the City may not act as a barro«~er itself. the C~ri~ Charter prov~des that the Cit~-
ma~~ also ut~lize TORCa funds for t~e deveIopment of hausing pro~ects «~hich meet TORCA
requirements ,
Consolidatea Rental Housing Trust Funa G~ic~e~~nes Page 29
i'.HOC:SI1vG'~Sf-L'~RE•uPFILES'~GUIDELIV•'IFGmde I1-]3.3pd
Eligible Uses and Ac~ivities
Program fiznds can be used ta make loans to elxgxble borrowers who will provide affordable housin~,
pnncipally for low and moderate income households Eligible uses of TORCA funds include, but
are not l~rnrted to, the followmg
( I) acquisit~on and/ar rehabilrtation of eligible rental properties,
(2) acqutsition and conversion of nonresidentia~ property ta multifamily or single room
occupanc}r rental hausmg umts,
(3} new construction of rental housing umts,
(4) acquisi#ion and rehabilitation of smgle-roam occupancy hous~ng umts,
(~} predevelopment loans up to a period af 24 months for srte acqu~sition, predevelopment
activzties, including prafessional ser~ices which cannot be obtained on a contingency
basis_ and construction Such loans mav be extended far up to 12 additianal months at
the discretion of the Housing and Redevelopment Manager.
(6} br~dge loans up to a periad of ten years to be repaid by equity• contributzons of lirruted
partners, and
(7) provlde rental subs~dies for temporan~ or permanent hauszng for Low-Income house-
holds
Affordability Requirements
All units ass~sted under this program shall be affordable to h~useholds w~th ~ncomes that do not
exceed 84% o~median income, and (except for households m occupancy at time of acqu~sit~on) shall
be occup~ed b~ households wzth incomes that do not exceed 8~% of inedian mcome
Other Requirements
Labor Standards State prevaiiing wage requirements apply ta pra~ ects of 20 unrts or more, ar in the
event that pro~ect costs exceed ~1.000.~00 for ne~z construction or $230,000 for rehabilrtation, as
ad~usted for inflation.
Religious Or~aniza~ions
All pro~ects must be used exclusi~~ely for secular purposes, and must be available to all persons
re~ardless of religion The housing ma~- not be used for ~~~orship ar relig~ous instruct~on
Consolidated Rental Honsing Trust Fund Guidelines Page 34
F' HQUSiNG•SHARE' uPFiLESGLZDELIN IF Gmde E I-l.i µpd
VIII, EXHIB~TS
Consolidated Rental Housing Trust Fund Guidelines Page 31
F'~HOl;S17~Cs'~SHARE~GLPFIi.ES GC'IDEL]]~''CF Gmde I I-1 ; upd
EXHIBIT A
Definitions
Acquisrtion Basis Ov~~ner's baszs far acquisiuon of the property~ as determined by Standard
Accounting Procedures
Capital~zed Resen~e Account An account established ~~rth funds from capital fundmg sources
ava.~lable at the time of completion of de~~elopment for the purpose of funding future pro~ect costs
, _ A pnvate nonprofit housing development
corporation wl~uch meets a sertes of HtiD qualifications prescribed in the H4ME Regulations,
includmg the requ~rement that it is duly organized to provide decent housin~ that ~s affordable to
low- and moderate-incorr~e persons; maintains at least one-#hird of rts governing board's membershtp
for residents of lov~--incame nei~hborhoods, other low-income residents, or elected representatives
oflou~-income nei~hharhood organizaFions, and, provides a forrnal ~rocess for low-~ncome program
beneficianes to advise the orgamzanon m its decisions reaardmg the des~gn, srting, develapment_
and management of affordable hausing
Cornmunrt~~ Based Deti~elopment Or~an~zation (CBDO~ A Housing Development Corporation
~~hich meets ihe requirernents of CDBG re~ulations as defined in 24 CFR ~70.204(a){2}(c)(1}, as
amended from time to time
Depreciable Basis O~rner's basis far depreciable costs of the pro~ect as determined b~~ Standard
Accounting Procedures, not mcluding de<<eloper fees
Fair i~larket Rents Maximum rents as published bz- HL'D for the Sect~on $ programs for the Los
~.r~geles Area, ad~usted far unit size
Group Home A housing umt r~~rth separate bedrooms and shared kitchen, din~ng, and/ar
sarutary facilrties which is operated for the purpose of pro~~iding housing and supportive services to
several unrelated persons w~th special needs or disab~lities, not student housin~
Nonprofit Housing Development Corporation (HDG) A pn~~ate, nonprafit corporat~on v~~th ~roven
capacit~~ to develop. o~~n and op~rate housm~. and l~~hich has a valid SQ1(c){3) or {4) designation
from the IRS
Liriuted Equrt~- Cooperative A form of o.~~nership whereb~~ the residents form a coQperative
corporation t~~hic~ ovvns and mana~es the property, and u-here the return on residents' onginal equrty
is limited to no more than 10%. as defined xn the California Health and Safety Code, Section
330Q7 S
Low and Moderate Income Households
For Hame Trust Fund and CDBG Housing Trust Fund. and TORCA Housrng Trust Fund
Households ~~~rth incomes ~at do not exceed 8~°10 of Las Angeles Standard Metropolitan Stat~strca~
Area median, ad~usted for fa~rul~T size, as publ~shed by the U S Department of Housmg and Urban
Deeelopment (HLJD} from time tn tune
For Crtv~vide Housing Trust Fund Households w7th mcomes that do not exceed 60% of the Los
Angeles Gounxy median ~nco~ne, ad~usted for family size, as published b5~ the U S Department of
Housing and Urban Development (HiJD) from t~me to t~me are considered low mcome Withm tlus
group of households, those wlth incomes that do not exceed 50% of the median are considered ver~-
lo~~ income
For Redevelopmenr Housmg Trr~st Fund Hauseholds wrth incomes that do nat exceed 120% of the
Los Angeles County median income_ ad~usted far famil~~ s~ze. as publ~shed by the U S Department
of Hous~ng and Urban Development (HUD} from time to time
?Viaximum Affardable Rent A rent which does not exceed thirt~- percent (30%) of the max~mum
mcome level of the incame group being sert~ed {see "Lo~~ and Moderate Income Households"),
adjusted for unrt size and ut~lity costs
For Redel~eloprrtent Housrng Trust Fund the M~imum Affordable Rent for households u~~th
incomes that do not exceed 120% af inedian mcome for Los Angeles County shall be 30% of 11 Q%
of such median mcome
Maximum Allov~~able Rent The legal rent for the unit under Santa Monica Rent Control Charter
Amendment. w~th aliou-able ad~ustments b~~ the Rent Cantrol Board for annual e~pense increases
or for capital improvements
Ne~v Construction The constructton of new housin~ mcludin~, but not limited ta assembly of
factory-built modular housing. or con~~entional on-sife construction
Operatm~ Reserve Account An account establisned for #he purpose of fundmg a deficrt m the
pro~ect's operation
Rehabilrtat~an Correctfon of loca~ code ~-iolations and rema~al of health and safet~~ hazards,
upgradan~ of housing uruts to decent, safe and sarutary conditions to comply ~~~rth #he Housmg
Qualit~~ Standards prornu~gated ~r ~IUD and with local standards. repair or replacement of ma~or
buildmg SZ~stems or ccmponents in dan~er of failure; and alterations. addit~ons and iznprovements
to expand the number of affordable units, or needed to ~mprove ~he basic livabilrty, e~ergy
effic~enc~~ . accessibilin~ for the disabled, or secunt~~ of the property. and ta reduce o~ercro~~rding
Rehabilrtation Basis O~~vner's bas~s for rehabilrtation costs mcurred for the propert~~. as determmed
by Standard Accounting Procedures, not including developer fees
Repiacement Reserve Acco~nr An account established for the purpose of fundmg ma~or repairs or
replacement of caprtal components of a buildmg v~luch reach the end of their economic life and
require replacement
Residual Receipts The gross receipts from the praper[y, 1~55 actual costs of operation,
administration, maintenance, taxes, insurance. utilities, management, approved replacement and
operating resen~es, payments of prmcipal and mterest an loans semor to the Crty laan, and required
debt ser<<ice coverage The amount af Res~dual Receipts shall be calculated based 4n the actual
income and expenses set forth in the Annual Operating Budget required under the Regulatory
Agreement or recorded Covenants, as approved b}~ the Ciri:
RMD Resource Mana~ement Department, Crt~~ af Santa Monica This Department ~~11
administer #he Pragram far the Crty under the d~rectaon of the City Manager
Sin~le Room Occupanc~= Housin~. Muitifamil}~ residential buildings containing housing unrts r~~th
a minimum floor area of one hundred fift}° square feet and a maximurr~ floor area of three hundred
sevent~--five square feet which may ha~ e kitchen and/or bathroom facilities, and where each housing
umt is restricted to occupanc}~ b}r no more than two persons and is offered on a monthly~ rental basis
or ionger
Transtt~onal Hous~n~ A type af supportii~e hous~ng us~d to facilrtate t~te movement of na~neless
mdividnals and families to permanent housing Typically. transrtional housmg is hous~ng in which
homeless people lr~e for up to 24 months and receive suppor~ive services that enable them to l~ve
more mdependently The supportrve sen~ices ma~~ be pro~-ided bF~ the orgaruzation managing the
haus~n~ or coordinated by them and proi~ided b~~ other public or pni-ate soc~al senr~ce agencies
EXHTBIT $
HaME PROGRAM SUBSIDY LIMITS
UNIT SIZE SUBSIDY LI_MIT
O Bedroom $69,384
One Bedzoam $79,53~
Two Bedroom $9G,714
Three Beciroom $125.114
Four Bedroom or larger $137,337
~imrts af-e far 1998
EXHIBIT C
Rental Housing Loan Application
City of Santa Manicn
Rcsource Management Qepartment
Hausir~g and Reclevelapm~nt Di~ision
Rental Housing Loan App[ication
Loan Req~est $ Terrn {i~ yearsj:
Purpase af Loan (Circfe one}
Acq~isitior~ 8~ Rehabilrtat~on New Construction Rehabiiitatron
Propased City Funding Source (CErcle one}
Predevelopment Construction Permanent Intenm/Br~dge
Applicant
Name of Organization
Street Address
City, State 8~ Zip Code
Contact/Title
Phone/Fax
Legal Status of Applicant (Circle one) nonprofit corporatiQ~
general parfnersh~p limited partnershEp ind~~idual
Names and Addresses of Principals (if firm, not Endi~~ductl)
for-profit carparation
~oinf venture other
F `•HOUSING~SHARE`•Vi'PFILES+GL"ibELi?~+Loan ~ppl~cauon rr~pd
II I
R~ntt~l Housing Loan Apphcatian Page 1
Santa Mon~ca Housing and Rede~elopment ~i~ision
Proposed Project
Name of Pro~ect
Street Address
City, State & Zip Code
Total Number af Units
F ~f[OCSII~Ce'~SHARE'~~T~`PFILES'~GliIDELI\~LoanApplicauon+spd
II I
Ren#pl Housmg Loan Applscat~on Page 2
Santa Monica Housing and Redevelopment Di~ision
Description of Proposed Project
(Please cErcle the appropna~e categones)
Building Type
~ Row ~ Detached ~ SemrDetached
Foundation Type
~ Full Basement I Partial Bas~ment
Parking Type
I 5ubterranean
Waik-up f ~le~ator I Mixed-Use ~
Crawi Spaee I Slab/Grade ~
5err~i-Subt~rranean I Tuck-under I On-Grade
Existing Proposed
Stones
Units
Buildings
Parking Spaces
G~oss Build~ng Sq/Footage
(exGuding parking)
Parkir~g Square Footage
Residential Area
Commercial Area
Year Budfi
U~ritS aemol~shed
Amenities
Pool Laundry Other
Type of Socia~ Servrces, rf any
AcceSSOry Buildings(i e Rec Hafls, Garage or Shed Structures, etc J
No , type, size
F'~HOUSf'JG~-SH~RE~Vr•'P~IL6S`~GL:IDEL[I~±Loan ~PP[~cation wpd
I
Rental Ffous~ng Loan Apphcation P~ge 3
Santa Mor~ica Housing and Rede~elopment ~i~ision
Rents
Unit Mix Exisiing Proposed Sq/Ft
Existing
Praposed
stud~o
ane bedroom
two bedro~ms
t~ree bedroams
four bedrooms
Tofa~
Site information
Lot Size 5q Ft
Lot Dimensions X Ft.
Zon~ng
Varianc~s/cond~tionaf use permits/
other plar~r~mg approvals requ~red2
Is the pro~ect focated m the CoaStal Zone2
E ui ment and Services to be included in Rent
Ranges (gas/elecfnc) Refingeratar (gas/elec) Air Conditianer
Kitchen Exhaust Fan Dishwasher Garbage Disposal
Laundry Facdify ~rapes Carpet
Gas Fleat Hot Water
Wa~er ~lectncity Other
Do you have a Rent Control Rert~oval PermFt2 Yes No
If yes, pfease pro~~de the perm~t number and date of issue
F °~HOU51NG1SH4RE°,V~'PFILES`~GUIDELPT,Loan Appl~cationw~pd
II
Rental Wousing toan Application Page 4
Santa Monica Housing and Redevelopment D~~ision
Financing
Will th~s pro~ect seek to util~ze low ~ncome housing tax credEts2 Yes No
if yes, est~mated federal credits 9~ 4~
estimated Sta~e credits
Wiil the pro~ect seek to utdize tax exempt financing2 Yes No
If yes, propased rssuer and f~rm af credrt enhcrncement
Development Team
Name Confacf~tfe Phone/Facsimile Address
Developer
Architect
Consulfonf
AHorney
Genera!
Co-rtractor
Constructron
J1Aonqger
Relocuhon
ConsuRanl
Other
f +NOUSIVG~SHARE'~~1~PFILES~~GUEDELI~'•Loan ~p~Ucat~onw~pd
I I
Rental Housing Loan Apphcat~on Page 5
Santa Monica F{ousing and Redevelopmen# Division
Certification Statement
Please provrde the follow~ng rnformatron Leave no blanks lf not appfrcable, type N/A
(Please attach addrt~onal sheets, if r~ecessaryJ
Appl~cant's Name
2 L~st any acldi~EOna! names or aliases, exercise of power of attorn~y ar~d/or
fiduc~ary trust capacit~es that you ar~ currently u5ing or ha~e used in the past If any,
ptease explc~m
3 List all partner5hips, corporatfons, ~oint ventures, andJar hmited partnership
entit~e5, (inctuding apphcant, if applicable), which you are currently or have been
associafied with, and designate whether you are/Were a princ~pal and list your t~tle
and respansibilities, the purpose af ihe organ~zation and its current s#atus
3a F-lave any of the ent~ties listed abave been either suspended, revoked, lapsed
and/or term~nated for any reason2 If so, please explam
3b Has the apphcaht or ~ts partners or pnncipals filed #or bankr~ptcy2 If so, please
state tY~e case number and whether the case was dism~ssed, d~seharged ar is current
3c Has the appkEcant or its parfners or pnncipals defaulted on a fmancial
o~aligation2 If so, please explain
3d 1s there, or has there ever been, a settlement and/or~udgement filed ar a case
pending against the csppl~cant or its par~ners or pnncipa~s2 If so, please explain.
3e Has a lien ever been filed against real praperty owned by the applicant or its
partners or princcpais iisted above as a result of a ~udgrnenf, etc 2 If 5a, please explam
F '~HpUSING SHaR~.'•.~L'PFILES+GUIDELII~`.Loan Appiication «~pd
II I
Rental Housing Loan Appltcation Page 6
Santa Monica Housmg and Redevelopment Division
4 Has the appl~cant or its partners or pnncipals ever been conv~c#ed of a felony ar
mESdemeanar other than mmor traffic viokations and/or placed ar~ probafi~on, fined or
g~ven a suspended sentence ~n courfz If so, pEease explai~
5 Has the applicant or its partners ar principals e~er been cited and/or convicted
af a m~sdemeanor, including bvt not lim~ted to a conv~ction ur~der local health, fire,
environmenfal and/or budding c~nd safety law5, relating to the owner5h~p and/or
management of real praperty2 If so, please explain
5 Daes the c~ppl~canfi hav~ c~ny empfoyees or refata~es wha have close
assocjat~ons wifi~ current or former employees of th~ 5anfa Manica City Council, Crfy
Manager's Off~ce, or the Resource Management DivisEOn2 If so, please expla~n
7 Are any current ar former employees af the Santa Monica Housing and
Rede~elopment Division currentiy ernployed by the applicant2 Any relati~es af any
HouSing and Redevelopment D~~is~on empfoyees2 if so, please state the ~ndividual's
name a~d dates of employment
8 Are there any Housing and Redevelopment DivESion c~rrent or former employees
that have a fir-ancical interes~ rn this pro~ect2 if so, state name, dates af employment
and ~nterest
9 ~ist all residential income properties whach are awned by the applicant or its
partrrers or in vv~ich pr~ncrpals have a vested +nterest
10 Does the applicant or its partners or pnncipals have any i~come andlor real
property taxes or a5sessments fhat are past due2 If so, please explain
fi' HOUS]\ G'•SH ARE~i~~PF[L~S`•GLIDELIV ~Loan Application ~-~pd
II I
Rentcrl Hous+ng ~oan Applrcation Page 7
Santa Monica Mousing and Redevelopment Division
PRiVACY N4TIFICATiON. The mformatio~ requested above is to be used by the Santa
Monica Housmg and R~development Division to asses5 the appi~can~s creditworthiness
Ir~format~on pro~ided that is cantained m public records cannot be withheld from
discfasure under the California Pubiic Recards Acf, Go~ernment Code, Sec#ions 625a
and 6254 Ali other information may be required to be disclosed o~tside the agency by
state and/ar federal law
~urnishing all in~ormation requested on this form is mandatory Fadure to provide such
informat~on may result in disquai~ficatian or a wathdrawal af HouSing and
Redev~lopment Di~~s~on's commitrrtent
CRtMINAL PENALTIES. Any person Wha shali kr~owingly ma~Ce or cause to be made,
eit~er dfrectly ar ind~rectly, any false statement m writmg, wrth the mtent that ~t shall be
relied upon, for the purpose of procunng the loan secured by real property shall be
guilty of a cnmmal offense, punishable by a f~ne nat ex~eeding ten thousand do~lars
($10,000 OOJ or by imprisonment m a county ~ad nat exceeding six months, or by bot~
the fin~ and it~nprisonment (Califamia Pena! code sectians 532(aJ and 532))
CONTINUING OBLIGATIpN I understand t~at I have a continu~ng obhgation to provide
the Hous~r~g and Redevelopment D~vis~on with current and accurate information
Appl~cant must pro~ide to Hous~ng and Redevelopment Division all requested
information with an Applicant's Certification Statement for any individual or entity that
Hausing and Rede~eloprnent ~ivision En its sole discretion believe5 ~s necessary #o
evaluate the applECation ~reasonably related to the applicant)
I, the undersigned, cert~fy ~haf fhe informa#ion provided to the CEfy of Santa Monica,
Housing and Redevelopment D~v~sion, is true and correct as of the date set farth
opposife my s~gnature on thEs appl~catEOn package and acknawledge that any fakse or
mislead~ng statement5 of the mformation contained may re5ult m civil hab~lity and
liability far manetary damages ~o the ~ender, it5 agents, successors, and assigns, insurers
ancf any other person who rnay suffer any loss due ta reliance ~pon any false or
rr~3sleading sta~ements which I have made or~ thES CerfiEficat~on Statement
~ate Applica~t's Name
Certified By {Print Ncsme)
Signature
Title
Federa! Tax IQ~
f `•HOUSIVG'-SH4RE`~1~~PFILES`~GE:IDEL1\'Loan ~ppl~cation~~pd
II I
Rental Housing Loan Apphcatian Page 8
Santa Mon~ca HouSEng and Redevelopment Division
Specia! 5upplement for Environmentaf Review
In addrt~on to the followrng mformafran, please attaef~ 1 copy each of appfrcat~on exhrbifs (IcJ
Constructton and Desrgn Descnptron and r1e) current photos of site, and Assessor PorceJ Map(sJ w~th
parcels ~ndreated These mptenals wilf be forwarded separr~tely to the parhes respons~ble for
envrronmental revrew
Applicant
Pro~ect Address
Site informatiah
Assessor's Parcel #(sJ ~
Lot Srze Sq Ft
Lot Drmensrons X Ft
Zon~ng
Clses on ad1acent srtes
Varranees/condrt~onal use perrn~ts/
other plannrng approvals requ~red2
Is the profect Iocated ~n the Coasta! Zone2
Present Properfy tJse
Prror Property Use
Number oF: Existing Proposed
Stanes
Units
Su~ldtr~gs
Park~ng Spaces
Gross BUrldrng Square Footage
(exclud~ng parkingJ
Parkrr~g Square Footage
Year 8urlt
Unrts Demofrshed
F',HOLSI:tiG`•SH.aRE11~~'PFILE5IGU{DEL[1VlLoan App-~~aC~on ~;~Pa
Rental Housmg Loan Appiicat~on - Speaal Supplement Poge 1
5anta Manica Housing and Redevelapment Div~sian
Special Supplement for En~iranmental Review
Part It. QueStions
i PfeaSe de5cribe ad~acen~ uses and neighborhood characterisfics
2 ls the properfy designa#ed or determ~ned eligible for historic reg~ster designation at
the lacal, state or nationai level2 Has it been deterrnined ~nehgible2
3 Pfease ident~fy the source of rnformation used to determ~ne the exc~ct or
approximate year of bu~Eding construction
4 Will f~nancing for this pro~ect ~nclude the Historic Rehabditatian Tax Credit?
~ Prov~de fhe name and address of ar~y per5on who has commented or rnay wish to
comment on this pro~ect
8 Pro~ide the names and telephon~ numbers of the pro~ect applECant, pra~ect
monitor, and pro~ecf archi~ect and/or contractor
7 Pfease provide a eopy of a b~ilding permrt for each build~ng, if applicable
8 Are there any other env~ranrnental stud~es ava~lable for the site (i e
Archaeolog~cal, Hozardous Matertqls, Phase I or II}2
F ~~HOf~~SI~G`•SHaRE''~~'PFILES'~GUIDELI~•Loan Applicanon u~pd
II
Rentpl Hous~ng Loan Application - Speaal Supplement Page 2
Santa Monica Housing and Red~velopment Di~ision
Attachment A Tenant Profile
Please lrst characterrst~es of resrdenf househofds and identify where each household falls on the rncome
spectrum
F ~HOUSING\SHARE\WPFILES\GUIDELIN\Loan Appl~caiion wpd
Rental Housing Loan Application Attachment A
Santa Monica Housing qnd Redevelnpment Di~ision 1'age 1
Income*
Unit
Number
Name of Tenant
# of persons
in household actual
i~....,.,.~,
if known
Law
Moderate
Above
Moderate
Totals
Percent of Un~#s Low Income
Percenfi of Units Moderate Income
Percent of Units Above Moderate Ir~come
*See attached c~art for maximum tncome by household s~ze for each income category
F\HOUSING\SHAR~\WPFILES\GUiDELIiV\Loan A licaiion w d
Rental Housing Loan Appl~cation Attachment A
Santa Mon~ca Housing and Redevelopment Division E'agc 2
EXHIBIT D
Checklist for Loan Closing
Checklist
Rental Hausing Loan Application
~anta Mon~c a Housing ar~d Redevel~pm~nt Dir~ision
^ Application
^ Attachment A - Tenar~t Profile
^ Special Supplement for En~iranmenfal Review
^ Site and Project lnformation
1 Survey of ~ite, ~f available
2 Legal Descnpt~on of the Property
3 Construct3on and Design Descriptaon
4 For Acqu~sit~on or Rehabili#a#ion Pro~ects - Property Inspect~on Repor#
and/or ~eta~led Work Write-Up on a un~t by urnt basis
5
6
7
8
9
10
Schematic designs, ~f avadabie
Current Phofos of Site
E~~dence of 5ite Cantrol
Prelim~nary T~tEe Re~ort
Appraisal, ~f ava~lable
Current Rent Roll for existing tenants of acquisition and rehabilitation
pro~ects, and estoppei certificates when avadable
1 1 Verification af Zonrng, if a~ailable
12 Phase I Env~ronmental Report and any other Environmental Reports (e g
~ead and asbestos asse5smer~ts}
13 Termite Report
14 Construction Cost Est~rnate
i 5 Proposed Pro~ect Timetable
] 6_ A~alysis of repfacement reserve reqUirements, showing remaining
economic l~fe and pro~ected replacernent cosfi for building sysfiems
f \HOU511~G\SHARE\wPFILES\GUIDELlN\LOan A~phcation wod
Rentql Hausing Loan Application Checkhst
Santa Mon~ca Hausmg and Rede~elopment Division Page 1
Checklist~ cont.
^ Financial Feasibility Pro~ect de~eloprrient and operating pro formas in format
shown A diske~te w~th these forms prepared u5~ng F~ccel software is a~ailable
from the City for your use Notes and ass~mp~ions expla~nmg the basi5 af all
projected eosts devefopment and operafing costs must be provided Requ~red
exhib~ts include:
Pro~ect Summary
Exhibit 1, De~elopment Costs
Exhibit 2, REn# Schedule
Exhibit 3, Operating Expenses
Exhibit 4, 30 Year Cash Flow Analys~5
Exhibit 5. Financing
Exhibit 6, Tax Credit Analysi5 (where appl~cable)
ExhEbit 7, Bond Fees Worksheet (wt~ere applicable)
Exhibit 8, Sources and Uses Through Construction ~when
available~
^ Organizational Documents
17 Pro~ect 7eam i2esumes
18 Res~mes of Pnncfpals of spansor
19 For nonprofit developers,
i List of Board of Directors and ~rgan~za~~onal Chart
n 5fll (c) (3} exemption determination letter from the IRS
20 By-Laws, Articles of lrocorporation, Partnership Agreements
21 Current Financial Statements ~Aud+ted statements 5hauld be no more
than 1 year ald Unavdited statement5 should be no more than b months
ald )
22 Ownership Plan, ~f applicant wtll not be owner
F \HOUSING\SHARE\WPfILES\GUIDELIN\loan Aoohcation wod
Rental Hous~ng Loan Applicatior~ Checkl~st
5anta Monica Housmg and Redevelopment D~vision Page 2
Ch~ckli~t, eont.
^ Financing
23 ~vidence of other Financmg Approvols, Sumrnary of Terms and Status,
Cantact Persons and phane numbers
2A Ground ~ea~se, if applrcable
25 Loan Document5 f~r Ex~stmg or Propflsed Subordmate ~inancmg, if
available
25 Tax credif reservation, ff a~ailable
^ Property Mar~agement
27 Resume of Firm
2H Management Plan, if available
~ Tenant Information
29 Tenant Prafile, existing if avadable and proposed, shQwing number ~f
persons in each housEhold and income level
3Q i2elocatian Plan, if applicable
~ Tax Credit Projects Only
31 Evidenc~ of Tax Credit Allocation, if a~ailable
32 Comm~tment of Tax Credi# Investor, if available
33 Parfnersh[p Agreemenf, if a~aifabfe
F \HDUSING\SHARE~WPFI~ES\GUIQELIN\Loan Apphcation wpd
I I
Rental F~ous~ng Loan Application Checkl~st
Santa Monica Housing and Rede~elapment Di~ision Page 3
ATTACHMENT B
Summary of Current Trust Fund Guidelines
Note Proposed Summary of Consol~dated Renfa! Housrng
Trusf Fund GUidelrnes
also attached for comparrsor~
StJNIIViARY OF CURRENT TRUST FUND GUIDELINES
Citvw~de Housing Trust CHARP HUME P~co heighborhaod 'I'rust
Fund
' Fund
Pnmar~ funding fn-heu fees developmen~ Rede.eloomcnt Tar I~cremen~ HOM14E Program CDBG
soure~ aercemenv Office M~c~¢auon
El~g~bit non-profiu k~m~ted pannersh~p Non-profiu and for prof~ts ~on-profit5 and Iur Qrofit~ Tron-pro1EU and lim~ted panners ++ith
Borra+~ers uith non-profit eencral parmcr nonprohu
~
I ELQ~ble
RentaE housm~ u~~~ 4 or more Rehab 4 or more uni~ 8~0 e qcc ~+ti ~ pr more uniu SRO grnuo Rchab ~3 or more uniu 50°0 of ienan~,
Properues uni~s SRG unoccupted non-res househoids under [~U°o oi mediar nome ander 80°0 ot median a[t need oi
~ be~n~ converted [o res m[erim neu conswcuor, tit~xed use it re~ = 51 °o ~t reha6 iocated P~cp ~e~¢hborhao6
]oans bndg~ loar~ Pnmar~~~ soace
I ior ramilies uun a+ 2 bedrooms ~
I El~~ihle l ses ~ R~nta~ hous~ng deteiopment land leaserpurcaase acquis~ia° a substartia] rehao neu tonsirvtt3or 5tte acaucstkon and prepaza~ior ~eti; c~nstruaior
~ d~ subs[anual rehab eamms lees &. charees arch~recnere le~a] oreaa~zst~onal t~mporan relocauor
~
'
Predt~elopmea[ tntertm bndge
Predevelapment mter~m br[dse
Permanent reio~auon
lntertm laans ioan guarantees iimited !
.~~an loan euarantees acq ]oan loan guaran~eei acq equin caops De~•ciopmer~ tcc~ j
; f consersion De~e~opment tees cem•ers~oo l~m~~e~ equin cuop: eamest mo~n iworV.me cap~tal`• ~
I Developmen[ tees eamest 6.
~ uorl.~ng ca~~tal ~
~~~eliQCble i ses Prei~minan teas~h~iin scud~es ersamza[~oRal orPraunQ e~penscs Resen~es impact tees operat~ng
SubS~dies
Home Ownersni~
i
~ Laan Term I
I~0 ~rs m~nimum ~ ~< tirs uz~h l: tir e~tensio^ I~U ~eazs I 3~ ~rs u~ith ]5 rr eYtensian
r
i
!. interest Rate
I r~edd~e 11a: Rate tor ±u +ear loans
r
; Pavmrnt~
~eferred to~ at ieast ~~rs up to Deterred [or ~~ ~rs resiaual Dztened t.r at least ~ vears Res~duai roceipts tor loans n~'er
i ~" ~ears ~f'`°o ~l mcome rece~ats tor hi ioa:~~ S•~~1.,'umt
hener^ tnen residua~ receonts
'~taximum Loans 5(,:"~ OU~!%umt $~~ ~(1G•unr SbG GOU~unit Sa0 O~U~unrt
~tinimurn Lnan 51 000•um~
~ affardab~hn '~°a tnit~al occuaan~~ under Renah Proie~[s S`°o ~~t un:~~ At le~s~ 20°001 assisted umts 6~°0 ot umu alYordable ~o persons u
I Neau~rementc ~ "p°-o o~ med~an ~~00 01 ali must he aSordabir to person~ must he occupied b~ households RD°•a Of Ii1CL~~ih11 rocreasmg to'~ •o
~ wnsid~zed um~s a:lorda5l: ~r rarnin~ !: I~Q~u Ne~~ :ons~ru:u~m :amire less thar ~0°ooi e~erume Rehab 51 •o aftordablr t~
~ !~~~)`,; mmimur-~'_~~o prrnects t00°•o 01 uni[s occupied hs me~ian incumz oalancr n1 loH mcome persons uuh plan t~
~ ~ iubs~dazed urrr~s attord te 80~a inu nr moderate ~rcume hou~ch~~ld- ~,~;ted unets musr tr~ c~ccupied rACrCa52 Ki ~S?~ )Vew corrscracuon
i i up m I ~0°,a o+ m~dian i in households eam~ne less than '~ %o ot untts must be aflordable tn
6~"0 oi median m:~me persons u 50~io ol med~an mcome
~ H~,~~ reser~cuuns 3~"'~ et appl~cabie ~ncom: 34°0 01 apnlecablr m~omr e~cepi ~0°o u~4°.0 ot med~an baiance 30°a ot appl~c wle mcome
i ior househalds under EZO°-o a' ot unn~ a[ 6~°o M med~an
meuian rents musi he hazed or
1 I0%o oi mediar,
Yretiailmg wagr appfitabie ~o Rehab of2El Applieable ie Rehah '_U unn er Da~•is Bacon appl~es io pro~ecls Dav~s Bacon apphes to pro~ects of $ or
and Labor un~ts ur mor~ or S261 ~00 min con of $?~U 04~ o[ 1~ umts or more more unEts Prevatk wage for 20 or
reyu~remenis consuuction conuact New heu constr~ection 2C~ uni~s c• more units ar tehap of~250 040 or
construcnon 2G umts and up $1 90U 90~~ neu~ conshucuon Ttiew con 75°.a of
c~nstracuon af SI U~Ib ObC unus iu 50°ie olE1 m~ll~on
~ U~her 90:0 ot funds to units occ h4~ 75° o of ex~sung ienants cnust affirm
~ househoids w+ incomes Uiat do mteres~ m a rehabil~tat~on pro~ect m
not exceed 60°~0 of inedEan wriung
nalance of funds to umu occ bt
households W~uh incpmes less
, ~han SO° a af ined~an E 5%o of
Iunds tn CHDCis
~ ~fOt.S1~~G.SNARE~~uPFILES~GUIDELI~"TFGurde !~-lhaxnaf
service. Therea~ter, ane ~1) day shall be accrued far
each completed calendar month of service There shall be
no limit on the number of days accrued except as provided
in Section 3 07 (Sick Leave Buy Back) of this Agreemen~.
4.Q~. Leave of Absence Without ~ay
An employee may be granted a leave o£ absence without pay
upan applica~.ion approved by the City Attorney and the
City Manager Such l~ave may not exceed one (1) year's
time. Upon expirat~an of the leave, the employee sha1~
be reinstated to Che pasition held before the leave was
granted Sueh leave shall be granted only in those cases
where an employee's record of sexvice and qualif~cations
rnake it desirable for the Czty to retain his/her serv~ces
even at the cost of some inconvenience to the City.
4.05. Military Leave
An employee covered herein who in time of war or national
emergency as proclaimed by the President of the United
States or the Congress of the Un~ted States, or while any
national canscription act is in effect, is 3nducted into
the armed forces of the Uni.~ed States ox' who leaves
employment with the C~ty to enter volun.tarily the armed
forces and within a raasonable time after leaving h~s/her
emp?oyment with the City does en~.er such service, shall
be granted a leave of absence without pay for the
durat~on o~ the periad of active service with such armed
forces. If such employee receives an honorable discharge
ar its equi.valent and the position sti11 exists and the
emplayee otherwise is qualified ta fill the same, the
employee shaJ.l have a right to return to the posit~an
wit'ri the City within six (6) rnonths after the termination
of such act~ve service b~t shall not have a right to so
return later than six {6) months after the end of the war
or after the time ~.he Pr~sident ar Congress proclaims the
national ernergency is terminated, or after the expiratian
of the national conscription act. Such an employee shall
receive senior3ty ana other credits on the same basas as
though the employee had remained in City service and had
not taken such milifiary leave. Leaves of absence with
pay for temporary rniJ.~.tary duty shall be granted ~n
accordance with applicable State ~aw
~.06. Jury Duty
Employees covered herein, when duly called to serve on
any jury and when unable to be excused therefrarn, shall
receive the regular base compensation less all ~ury fees
27
SUMMARY OF CONSOLIDATED RENTAL HOUSING TRUST FUND GUIDELINES
Citywide Housing Rede~elopment Housmg HOhiE CDBG TQRCA
7'rust Fund Trust F~nd Trust Fund Hous~ng rrust F~nd Hous~ng
Trust Fund
Pr~mar} In-]teu fees, dese! Rede~~eiopme~t Tax Increment HOME Program GDBG TORC.~
fund~ng suurce agreements_ Ofe funds con~ers~on tax.
~.irtEgation fees
£hg~bie Nonprofits I~m~ted '~lonprofits. for profits, and NonproFv, for profits &: Nonprofits and I~mrted pazmersh~ps with
Barrow•ers partnersh~p ~ti~rth ]tmrted partnersh~ps w~ith l~mited partnersh~ps Ma~~ nonprofit ~eneral partner
nonprafit general nonprofit genera3 partner not be prav~ded ~o
partner pr~manl}~ rel~g~ous
argamzatians
Rental hous~n~, 4 or more unrts. SRO hous~ng, group hames Acqussrt~on and rehabiLtahon pro~ects u~~th at least ~ l% of the umts otcupied bv
Ehg~61e tenants whose ~ncomes do not exceed SO°ro of inedian mcome except when wan~ed Ne~v canstruction weth excepaons
Pralects
If Ordinance ~ 615 or hSixed use if residentral
1918 funds, onl}~ nere area equa3s 51°ro or more
construct~on and of spa,:e
average 2 bedrooms
E1~gible Lses Ren[a! hous~n; drvel land lease/purch~se, acy ~ rehab_ ne«• cons[ructio~ Sa~ ac:yu~s3tion ~ prep , ne~s consuu~uon 6c rehab. carrv3ne fees
& char~es. ar~h~tecture, legal orgar~izahonal, relocanon Prede~elopment loans. br~dge loa~es «'ork~ng Capi[al for Cin~~iide. CDBG_
TORCa. and Rede.•elopment IfOrdinance IdI~~i9I8 funds. ne~ti• construc~~on onI} (average 2 bedrooms)
IneligEble tises Prel~mman~• fe~~bil~ty studies or¢amzattanal operatmg Reserres, ~mpact fees i`en• cons[ruct~on unless b~~
expenses Hous~nL acqu~s~t~on and rehabil~tation ~f operahng subsid~es, land CBDO. rental assistance
Ordmance 16f 5/1918 funds bankmt, temporan shel- pa}•menrs
ters, rental ass~stance.
¢ommerctal properties
Loan Term Development laans 5~ r'ears. ~vith a 2~ year extens~on poss~ble
Interest Rate FrzddEe'~Sac Rate for 3R }•r loans maF be ]ower for tax credtt prolecu. HUD 202'81 l. or ~-•hen requEred to meet other lended subsidv lavering
euidelmes
Pa}ments '~ia~ be deferred for up to 2}•rs , 3 yrs ~~'~th C[n° hlanaQer ~saiser
~fax~mum ~'eu~ construcuon 0& 1 ised 59Q000. 2 6ed $10U.000 3 bed S110A00
Laans Rehab Q& 1 bed 580.DOU, 2 bed $96AQ0 3 hed .~10U p00
\1~n~mum Loan $1.600~untt
~,ffardabdih ~Il aisisted units must All ~ssisted umts shall be l00°ia of a~sisted uniu For new construction, at le~ct Al! ass~sted
Reqwrements be affordable to affordabfe to households +;~hose must be occup~ed 6}• 20°ro of ihs uni~s m the pro- vn~is shaU be
housefiolds whose mcomes do not exceed l20°ra of househoEds u•hose ~ect must be affordable to affordabie to
mcomes do not exceed medEan menme New m:,ames do nat exceed households x~hose mcomes households
60°ro of ined~an construchon units shal l be SO% of ined~an mcome. do not exceed 8Q°.o of ined~an whose mcomes
inec~me affprdable to households ~ti hose 90% not m e~cess of 6Q°io mcome Rents For alt do not eYCeed
mcomes do not exceed 80°~0 of of ined~an, and 20°ia not m assisted umts should be 80°rb of inedian
med~an mcottte excess of SD°~o o# median affordable to households mcome
+~~hosz mcomes do nat exceed
80°.0 of ined~an mcome
Rent 30°i of appf~cable 30°i of applicable mcome, 2U %o at SO°io of ined~an 30°/a of appl~cabke mcome
restr~etions income e;cept that for househoEds mcome 40°~a at 65%
whose mcome dpes not e~cceed 100°-o ai 80%
120° o of ined~an. ren~s must he
based on 110 °~o of inedian
Prer~ading rrage C~n c~de pru~•ides thai Statz pre~•ailme u•aee requirements are appl~cal~le to rehab pro~ects ofe~ther 20 un~ts or more, or 5250,600
and Labor cons[rucuon contracE. as ad~usted fo€ mflaGo^ Appl~cable to nea~ construcuon pro~ects af e~ther 20 units or more or construct~on cost of
requ~rements ~! 000 000 as ad~usted
Davis Sacon isapplicable Davvs Sacon ~s appl~cable for
far pro~ecu where 12 units projects of S units or more
or more are ass~sted w ith
WOtifE funds
'~ o« For complete derar7s about the onformanore cantutned on rhrs .nemman~ sheer please refer to the appropnare sectron of these Gu~rlel:nes
Cansolidated Rental Housing Trust Fund Guidelines
F:130USIt~G'SH1RE•~IT~~PFILES•G[;IDELIN~TF C~mde f 1-lti w~pd
ATTACHMENT C
Resolut~on Affirmmg the Inter~t to Use Redevelopment Housing
Trust Fund Property for Affordable Housing
f lattylmunillawslfbelhousing res
City Co~ncEl Meeting 11-24-98 Santa Mornca, Cafifarnia
RESOLUTI~N NUMBER g341 CCS
(Gi#y Council Ser~es)
A RESQ~UTION O~ THE CiTY OF SANTA MONICA
AFFIRMING THE INTENT TO USE REDEVELdPMENT HOUSING
TRUST FUND PROPERTY FOR AFFORDAB~E HOUSING
WHEREAS, the C~ty of Sar~ta Mon~ca ar~d the Redevelapmerat Agency of the C€ty
of Sa~ta Monica pravide financ~al assistance ta su~port the acguisition and rehabilitat~on
of proper#~es io preserve and mcreasE affordabie hous~ng opport~nities for law and
moderate income households, anc!
WHEREAS, the Consoli~ated Rental Hausing Trust Fund GuidelEnes require that
pro~ects eligible far fund~ng w~th tax increment revenue from the Redevelopment Housing
Trust ~und shall b~ occupied by persans earning no more than 100% of inedian income,
and
WHEREAS, otherwise e~igible pra~ects intending to pravide afford~ble ho~sjng to
persons and families of low and maderafe incame could be rendered E~ehgible by non-
conformmg tenanc~es
,