SR-407-003-01 (3)
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city Council Meeting: 7/8/86
Santa Monica, California
TO:
Mayor and city Council
FROM:
City staff
SUBJECT:
Recommendation to Approve Transfer of Title for the
Housing Development at 1851-1901 and 1907 Eleventh
street.
INTRODUCTION
This report recommends that the City Council approve the transfer
of the title to the site for the housing development at 1851-1901
and 1907 Eleventh street from EAC Construction to the Bedford
Group as permitted under the terms of the recorded Grant Deed.
DISCUSSION
The U. S. Department of Housing and Urban Development (HUD) has
conunitted funds to the Housing Authority of the County of Los
Angeles (HACoLA) for the development of nineteen units of afford-
able family rental housing in Santa Monica. The c~ty of Santa
Monica has entered into a Cooperation Agreement with HACoLA for
the development of these units at 1851-1901-1907 11th street.
The city of Santa Monica purchased the land for this development
with Community Development Block Grant Funds in 1983. HACoLA
selected a developer, EAC Construction in January 1984. On May
14, 1985 the city council approved the terms of the Grant Deed to
be executed by and between the city of Santa Monica and EAC Con-
struction Corporation for the affordable housing development
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1851-1901 and 1907 Eleventh street. In July 1985 title to the
site was deeded over to the developer, EAC Construction by the
city. Private financing for construction was secured by the
developer from First Interstate Mortgage corporation (FIMC), and
construction began in September.
Construction on the site has progressed slowly. EAC Construction
is a small, family-run firm, and the major principal of the firm
has suffered a severe illness which has affected the firm I s
ability to operate. Under the terms of the HUD Contract for the
development, the construction lender may request the substitution
of developers as necessary. On May 21, 1986 the City received
notice from the construction lender that a request for transfer
of the proj ect from EAC Construction to another developer was
being considered. The construction lender has requested that
HACoLA and the city submit a request to BUD to transfer the proj-
ect to another developer. Another family member with a separate
construction company has agreed to continue with the construction
of the housing development in place of EAC. The Bedford Group is
also a family-run minority-owned construction firm with experi-
ence in the construction of assisted housing developments. It
has demonstrated a commitment to the completion of this project
and been approved by the lender.
The terms of the Grant Deed recorded on the site require the
City's approval of any transfer of title on the site. The Grant
Deed contains covenants which run with the land and will there-
fore bind successors in interest to the terms of the Grant Deed
concerning the use of the site. The transfer of the title from
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EAC Construction to the Bedford Group will result in the success-
ful and timely completion of the nineteen housing units.
FINANCIAL/BUDGETARY IMPACTS
There are no financial or budgetary impacts as result of the ac-
tion recommended in this report.
RECOMMENDATION
It is recommended that the City Council authorize the City Man-
ager to approve the transfer of the title on the land at 1851-
1901 and 1907 from EAC Construction to the Bedford Group as per-
mitted under the terms of the recorded Grant Deed.
Prepared By: Candy Rupp, Development Analyst
Housing Division
Department of Community & Economic Development
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