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SR-6-U (10)~~ ~'3Y1 ~~ ~Q ~ ~!Q V 2-~ lq~($ 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 ,