REPORT TO THE CITY IN ITS CAPACITY AS HOUSING SUCCESSOR TO THE
REDEVELOPMENT AGENCY OF THE CITY OF FRESNO
AND FRESNO REVITALIZATION CORPORATION
DATE: November 15, 2018
FROM: MARLENE MURPHEY, Executive Director
SUBJECT
Title
Repayment of Affordable Housing Loans to the City of Fresno in its Capacity as Housing Successor related to 1608 and 1636-1660 Broadway
Body
RECOMMENDATION
It is recommended that the City of Fresno in its capacity as Housing Successor to the Redevelopment Agency (HSA) approve repayment of affordable housing loans related to 1608 and 1636-1660 Broadway.
EXECUTIVE SUMMARY
The former Redevelopment Agency funded the Brio on Broadway affordable housing project located at 1608 and 1636-1660 Broadway using housing-set aside funds. The Project owner seeks to pay off certain loans through a onetime payment of $941,996.44 based upon a 4% discount rate.
BACKGROUND
In March 2011, the former Redevelopment Agency approved two OPA's with FFDA Properties, LLC for the development of affordable housing projects at 1608 Broadway (Broadway 1) and 1636 -1660 (Broadway 2) that together produced 46 multi-family units. The former Redevelopment Agency utilized housing set aside funds now administered by the city acting in its capacity as Housing Successor to the Redevelopment Agency of the City of Fresno (Agency) to fund the projects referred to as Brio on Broadway. Pursuant to the OPA's the sum of $1,740,000 payable over 35 years is interest free for the first ten years commencing upon the issuance of the certificate of completion dated August 18, 2015. After the 10th year, commencing on August 17, 2025 $1,740,000 is amortized for 25 years with interest at 1% per annum payable in monthly installments fully due and payable at the end of the 35th year on August 17, 2050. The OPA's also provided for separate loans of the same amount that are forgiven upon expiration of the 55 year affordability covenants.
The OPA's provide for the transfer of ...
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