City Council
MEETING DATE: 9/26/2018
TITLE:
Title
Owner Participation Agreement with National Community Renaissance
End
FROM:
Tami Scott, Administrative Services Director
RECOMMENDATION:
Recommendation
Staff recommends the City Council authorize an Owner Participation Agreement with National Community Renaissance to provide assistance in the way of a $765,165 grant and the forgiveness of an outstanding residual receipts loan in the amount of $1 million dollars for the renovation and rehabilitation of a 231-unit low income senior complex at Cathedral Palms located at 31750 Landau Boulevard.
Body
BACKGROUND:
Cathedral Palms is an existing 231-unit affordable senior project located at 31750 Landau Boulevard that needs substantial rehabilitation. The project is owned and managed by National Community Renaissance ("CORE"). This project has had prior assistance from the former Redevelopment Agency but continues to age and deteriorate. In 1996, the former Redevelopment Agency issued $3,600,000 in Housing Bonds to assist CORE with the acquisition and rehabilitation of what was then already an older, troubled existing project and in 2003 the Redevelopment Agency provided an additional zero interest residual receipts loan of $1,000,000 to connect Cathedral Palms to the sewer system. There have been no payments made towards retiring this loan which becomes due and payable on August 11, 2035. On July 25, 2018, Council directed staff to move forward with negotiations with CORE for Phase 1 rehabilitation to include a financial contribution from the Housing Successor Agency in the amount of $765,120. Phase 1 was to consist of substantial rehabilitation of the first 32 units of the project. CORE anticipated subdividing the project into as many as six separate parcels to allow for different financing scenarios for each parcel. Phase 1 rehabilitation alone was anticipated to be a $2.2 million-dollar project. In addition, Council authorized staff to beg...
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