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HomeMy WebLinkAboutRDA AG PKT 2005-04-25 #3 AGENDA REPORT �c7 DATE: April 25, 2005 TO: Chairperson and Members of the Redevelopment Agency THRU: John B. Bahorski, Executive Director FROM: Lee Whittenberg, Director of Development Services SUBJECT: AUTHORIZATION FOR EXECUTION OF DOCUMENTS RE: MPROP LOAN FUNDING AND TRANSFER OF SEAL BEACH TRAILER PARK TO SEAL BEACH AFFORDABLE HOUSING CORPORATION SUMMARY OF REQUEST: Adopt Resolution , which will authorize the Agency Chairman to execute all documents necessary to complete the funding of Standard Agreement 01 -MPROP -068 for the funding of the MPROP loan between Seal Beach Affordable Housing Corporation and the State of California Department of Housing and Community Development (HCD), after review and approval of all necessary documents by Agency Counsel. Note: The following action may not be necessary based on information to be obtained from HCD by April 25: Adopt Resolution , which will authorize the Agency Chairman to execute all documents necessary to complete the following actions: ❑ Consent to reconfiguration of SBAHC Board. ❑ Determine whether the Regulatory Agreement should be amended to extend its term from 30 to 55 years. ❑ Finalization of Bridge Loan and Residual Receipts Loan Payment schedules. ❑ Determine if the Residual Receipts Loan and the Bridge Loan should be amended to allow for a forgiveness of the amounts owed thereunder over time, provided no event of default occurs. ❑ Approve reimbursement to LINC and Agency of certain costs and expenses related to obtaining the MPROP loan. BACKGROUND: The Redevelopment Agency, LINC, and the State Department of Housing and Community Development have been working to finalize funding of an MPROP loan to assist in the acquisition of the Seal Beach Trailer Park for many years. In addition, LINC and Seal Beach Affordable Housing Corporation have almost completed all of the necessary steps to Agenda Item 3 Seal Beach Trailer Park — Adoption of Resolutions re: MPROP Loan Approval and Consent to Transfer to Seal Beach Affordable Housing Corporation Redevelopment Agency Staff Report April 25, 2005 complete the transfer of the Trailer Park to SBAHC. Both of these transactions have been clearly contemplated by the Agency during the past activities related to the Trailer Park. On March 14, the City Council adopted Resolution 5313, which approved MPROP Standard Agreement 01 -MPROP -068 and authorized the Mayor to execute the agreement on behalf of the City. At this time LINC and the Trailer Park Association has requested that the Agency assist LINC in meeting the latest deadline imposed regarding the funding of the State MPROP loan. LINC is seeking clarification from the State Department of Housing and Community Development ( "HCD ") as to what exactly is needed. While we did not know at the time that this staff report was prepared, HCD may require Agency consent to the transfer of the title of the property from LINC to the SBAHC prior to the next Agency scheduled meeting. Staff is requesting adoption of the recommended resolution to allow for Agency execution of all necessary documentation to obtain funding, upon approval of all such documents by the Agency Counsel. The primary actions that may be required regarding the consent to the transfer to SBAHC are summarized below: ❑ Potential MPROP funding finalization actions: ❑ Release of lien for funds not used to close MPROP loan; ❑ Subordination of Agency loans and agreements to HCD Deed of Trust and Regulatory Agreement; At the time this report was prepared, it was unclear whether the following actions would be necessary. However, staff seeks direction and authorization on the following items in the event HCD requires one or more of them as a condition of funding the MPROP. Staff may be in a better position on April 25 to know if the following issues may be deferred until May 9. If actions are necessary on April 25, staff recommends adoption of a second resolution regarding the "consent" to transfer the Seal Beach Trailer Park to SBAHC. If these actions are not necessary and can be deferred until May 9 staff will inform the Agency of that on April 25. The following actions may be necessary by the Agency on April 25: ❑ Potential Consent to transfer of Seal Beach Trailer Park to SBAHC actions: ❑ Consent to assignment of all LINC /Agency loans and agreements to SBAHC; ❑ Consent to reconfiguration of SBAHC Board; ❑ Approval of amendment of Regulatory Agreement to extend term from 30 to 55 years; ❑ Amendment and/or amendment and restatement of existing Agency loan and grant agreement, and related security documents to (i) finalize Bridge Loan and Residual Receipts Loan payment schedules, and (ii) incorporate forgiveness of the amounts of the Bridge Loan and the Residual Receipts Loan over time, provided no event of default occurs. 2 Seal Beach Trailer Park — Adoption of Resolutions re: MPROP Loan Approval and Consent to Transfer to Seal Beach Affordable Housing Corporation Redevelopment Agency Staff Report April 25, 2005 ❑ Consent to assignment of the transfer of the Seal Beach Trailer Park to SBAHC as Issuer of the Redevelopment Agency of the City of Seal Beach Mobile Home Park Revenue Bonds, Series 2000A. In particular, the Agency board should focus on the following issues: ❑ LINC's request that the Agency forgive repayment of the Residual Receipts Loan if there is no default. Pursuant to the Residual Receipts Loan, the Agency has loaned LINC $985,000. The only source of payment is the residual receipts fund, where rent payments are deposited. This means that the loan is repaid only if there is rent remaining after the bonds and other obligations are paid off. It is unlikely there will ever be sufficient money remaining to pay the Loan. Thus, LINC would like the Agency to forgive this loan, provided there is no default, and is preparing a forgiveness schedule. ❑ In the event the MPROP loan from the State does not fund, LINC has requested that the Agency forgive the $1,000,000 Bridge Loan as well. ❑ In the event the MPROP loan from the State funds, LINC is requesting that certain expenses incurred by LINC, including legal fees, be reimbursed from the MPROP loan and credited to the Bridge Loan, which would mean that the Agency would not receive the entire principal of the Bridge Loan ($1,000,000). LINC is preparing an itemization of the costs and expenses it feels should be reimbursed out of the Bridge Loan. Once again, staff would prefer that these three issues be addressed at the May 9 Adjourned Agency meeting. However, if HCD insists that the Agency consents to the transfer prior to May 9 as a condition to the funding of the MPROP loan, staff needs direction on these issues and would request adoption of the Agency Resolution provided as Attachment 2. FISCAL IMPACT: Assuming the requested actions result in the funding of the MPROP, the action will result in the repayment of a Redevelopment Agency "bridge loan" in the amount of $1,000,000.00 to the Redevelopment Agency Low/Moderate Income Housing Fund. This would allow for many housing assistance projects that have been on hold due to a lack of available funds to be re- instituted. RECOMMENDATION: 1) Adopt Resolution Number , A Resolution of the Seal Beach Redevelopment Agency Authorizing the Chairman to Execute All Necessary Documents to Complete the Funding of Standard Agreement 01- MPROP -68 After Review and Approval of All Necessary Documents by the Redevelopment Agency Counsel. 3 Seal Beach Trailer Park —Adoption of Resolutions re: MPROP Loan Approval and Consent to Transfer to Seal Beach Affordable Housing Corporation Redevelopment Agency Staff Report April 25, 2005 2) Adopt Resolution Number , A Resolution of the Seal Beach Redevelopment Agency Authorizing the Chairman to Execute All Necessary Documents to Consent to the Transfer of Title of the Seal Beach Trailer Park from L1NC -CDC to Seal Beach Affordable Housing Corporation After Review and Approval of All Necessary Documents by the Redevelopment Agency Counsel NOTED A n APPROV �' a , 4: 1; i Lee Whittenberg Jo :. Bahorski, Executive Director Director of Development Services R; - velopment Agency Attachments: (2) Attachment 1: Resolution Number , A Resolution of the Seal Beach Redevelopment Agency Authorizing the Chairman to Execute All Necessary Documents to Complete the Funding of Standard Agreement 01- MPROP -68 After Review and Approval of All Necessary Documents by the Redevelopment Agency Counsel Attachment 2: Resolution Number , A Resolution of the Seal Beach Redevelopment Agency Authorizing the Chairman to Execute All Necessary Documents to Consent to the Transfer of Title of the Seal Beach Trailer Park from LINC -CDC to Seal Beach Affordable Housing Corporation After Review and Approval of All Necessary Documents by the Redevelopment Agency Counsel 4 Seal Beach Trailer Park — Adoption of Resolutions re: MPROP Loan Approval and Consent to Transfer to Seal Beach Affordable Housing Corporation Redevelopment Agency Staff Report April 25, 2005 ATTACHMENT 1 RESOLUTION NUMBER A RESOLUTION OF THE SEAL BEACH REDEVELOPMENT AGENCY AUTHORIZING THE CHAIRMAN TO EXECUTE ALL NECESSARY DOCUMENTS TO COMPLETE THE FUNDING OF STANDARD AGREEMENT 01- MPROP -68 AFTER REVIEW AND APPROVAL OF ALL NECESSARY DOCUMENTS BY THE REDEVELOPMENT AGENCY COUNSEL 5 1 R- . ' � .";., • ),- RESOLUTION NUMBER . I , • i A RESOLUTION OF THE SEAL BEACH REDEVELOPMENT AGENCY AUTHORIZING THE CHAIRMAN TO EXECUTE ALL NECESSARY DOCUMENTS TO COMPLETE THE FUNDING OF STANDARD AGREEMENT O 1- MPROP -68 AFTER REVIEW AND APPROVAL OF ALL NECESSARY DOCUMENTS BY THE REDEVELOPMENT AGENCY COUNSEL THE REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: WHEREAS: The Redevelopment Agency of the City of Seal Beach (hereinafter referred to as "the Local Public Entity"), a public body, corporate and politic, pursuant to Community Redevelopment Law, Section 33100, organized and operated under the Constitution and laws of the State of California, is eligible to receive a commitment of funds and participate in the Mobilehome Park Resident Ownership Program (hereinafter referred to as "MPROP "); and WHEREAS: The California Department of Housing and Community Development (hereinafter referred to as the "Department") is authorized to make loans for the purpose of financing mobilehome park conversion costs and to reduce the monthly housing costs for low- income residents to an affordable; and WHEREAS: The Local Public Entity as a co- applicant with Seal Beach Trailer Park Residents Association submitted to the Department an application for participation in the MPROP and requested a commitment of funds for a mobilehome park conversion project located at 313 Welcome Lane, Seal Beach, California, and WHEREAS: Such application for participation in the MPROP has been approved and the City Council authorized the Mayor to execute Standard Agreement 01- MPROP-68 with the Department on March 14, 2005 by adopting Resolution 5313; and C: \Documents and Settings \ldevine \Local Settings \Temporary Internet Files\OLKI 3\M PROP Agrmt 01- 068.Necessary Docs.RDA Reso.doc \LW \04 -25 -05 Redevelopment Agency Resolution Number 05 -04 Seal Beach Trailer Park: Standard Agreement 01 -MPROP -068 Execution of All Necessary Documents April 25, 2005 WHEREAS: The Local Public Entity in approving the sale of bonds for the acquisition of the Seal Beach Trailer Park in 2000 contemplated eventual ownership of the Seal Beach Trailer Park by a resident organization; and WHEREAS: The Local Public Entity has been aware of the proposed transfer of the Seal Beach Trailer Park to Seal Beach Affordable Housing Corporation, and has supported that eventual transfer. NOW, THEREFORE, BE IT RESOLVED, THAT: A. The Local Public Entity authorizes the Executive Director of the Redevelopment Agency of the City of Seal Beach to execute in the name of the Local Public Entity all other instruments necessary or required by the Department for funding of the MPROP, after review and approval of all necessary documents by the Agency Counsel. PASSED, APPROVED AND ADOPTED by the Redevelopment Agency of the City of Seal Beach at a meeting thereof held on the day of , 2005, by the following vote: AYES: Agency Members NOES: Agency Members ABSENT: Agency Members ABSTAIN: Agency Members Chairman ATTEST: City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } MPROP Agrmt 01- 068.Necessary Docs.RDA Reso 2 Redevelopment Agency Resolution Number 05 -04 Seal Beach Trailer Park: Standard Agreement 01 -MPROP -068 Execution of All Necessary Documents April 25, 2005 I, Linda Devine, City Clerk of Seal Beach, California, do hereby certify that the foregoing resolution is the original copy of Resolution Number on file in the office of the City Clerk, passed, approved, and adopted by the Redevelopment Agency of the City of Seal Beach, at a regular adjourned meeting thereof held on the day of , 2005. City Clerk MPROP Agrmt 01- 068.Necessary Docs.RDA Reso 3 052 c -O RESOLUTION NUMBER 4 A RESOLUTION OF THE SEAL BEACH REDEVELOPMENT AGENCY AUTHORIZING THE CHAIRMAN TO EXECUTE ALL NECESSARY DOCUMENTS TO CONSENT TO THE TRANSFER OF TITLE OF THE SEAL BEACH TRAILER PARK FROM LINC -CDC TO SEAL BEACH AFFORDABLE HOUSING CORPORATION AFTER REVIEW AND APPROVAL OF ALL NECESSARY DOCUMENTS BY THE REDEVELOPMENT AGENCY COUNSEL THE REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: WHEREAS: The Redevelopment Agency of the City of Seal Beach (hereinafter referred to as "the Local Public Entity"), a public body, corporate and politic, pursuant to Community Redevelopment Law, Section 33100, organized and operated under the Constitution and laws of the State of California, is eligible to receive a commitment of funds and participate in the Mobilehome Park Resident Ownership Program (hereinafter referred to as "MPROP "); and WHEREAS: The California Department of Housing and Community Development (hereinafter referred to as the "Department ") is authorized to make loans for the purpose of financing mobilehome park conversion costs and to reduce the monthly housing costs for low- income residents to an affordable; and WHEREAS: The Local Public Entity as a co- applicant with Seal Beach Trailer Park Residents Association submitted to the Department an application for participation in the MPROP and requested a commitment of funds for a mobilehome park conversion project located at 313 Welcome Lane, Seal Beach, California, and WHEREAS: Such application for participation in the MPROP has been approved and the City Council authorized the Mayor to execute Standard Agreement 01- C: \Documents and Settings \Idevine \Local Settings \Temporary Internet Files \OLK13 \Trailer Park.Consent to TransferTitle to SBAHC.RDA Reso.doc \LW\04 -25 -05 Redevelopment Agency Resolution 05 -05 Seal Beach Trailer Park: Consent to Transfer Title to SBAHC April 25, 2005 MPROP -68 with the Department on March 14, 2005 by adopting Resolution 5313; and WHEREAS: The Local Public Entity in approving the sale of bonds for the acquisition of the Seal Beach Trailer Park in 2000 contemplated eventual ownership of the Seal Beach Trailer Park by a resident organization; and WHEREAS: The Local Public Entity has been aware of the proposed transfer of the Seal Beach Trailer Park to Seal Beach Affordable Housing Corporation, and has supported that eventual transfer. NOW, THEREFORE, BE IT RESOLVED, THAT: A. The Local Public Entity authorizes the Executive Director of the Redevelopment Agency of the City of Seal Beach to execute in the name of the Local Public Entity all other instruments necessary or required to consent to the transfer of title of the Seal Beach Trailer Park from Linc -CDC to Seal Beach Affordable Housing Corporation, after review and approval of all necessary documents by the Agency Counsel, including but not limited to the following anticipated actions: ❑ Consent to assignment of all LINC /Agency loans and agreements to SBAHC; ❑ Consent to reconfiguration of SBAHC Board; ❑ Approval of amendment of Regulatory Agreement to extend term from 30 to 55 years; ❑ Amendment and/or amendment and restatement of existing Agency loan and grant agreement, and related security documents to (i) finalize Bridge Loan and Residual Receipts Loan payment schedules, and (ii) incorporate forgiveness of the amounts of the Residual Receipts Loan over time, provided no event of default occurs. ❑ Consent to assignment of the transfer of the Seal Beach Trailer Park to SBAHC as Issuer of the Redevelopment Agency of the City of Seal Beach Mobile Home Park Revenue Bonds, Series 2000A. PASSED, APPROVED AND ADOPTED by the Redevelopment Agency of the City of Seal Beach at a meeting thereof held on the day of , 2005, by the following vote: AYES: Agency Members NOES: Agency Members ABSENT: Agency Members ABSTAIN: Agency Members Trailer Park.Consent to TransferTitle to SBAHC.RDA Reso 2 Redevelopment Agency Resolution 05 -05 Seal Beach Trailer Park: Consent to Transfer Title to SBAHC April 25, 2005 Chairman ATTEST: City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Linda Devine, City Clerk of Seal Beach, California, do hereby certify that the foregoing resolution is the original copy of Resolution Number on file in the office of the City Clerk, passed, approved, and adopted by the Redevelopment Agency of the City of Seal Beach, at a regular adjourned meeting thereof held on the day of , 2005. City Clerk Trailer Park.Consent to TransferTitle to SBAHC.RDA Reso 3