HomeMy WebLinkAboutReso 94-065 - Amending the agreement between the COR & Shasta Housing Development Corp for Senior Housing Pre-Development Cost RESOLUTION NO. S
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
AMENDING THE AGREEMENT BETWEEN THE CITY OF REDDING AND
SHASTA HOUSING DEVELOPMENT CORPORATION FOR
SENIOR HOUSING PRE-DEVELOPMENT COSTS
WHEREAS, the City Council of the City of Redding approved an Agreement
between the City of Redding and Shasta Housing Development Corporation (SHDC)
providing funds for pre-development costs related to an affordable rental housing
facility for seniors within the City of Redding; and
WHEREAS, SHDC has requested an amendment to said Agreement to comply
with funding requirements of the Tax Credit Allocation Committee; and
WHEREAS, the City Council has concurred with this request.
NOW, THEREFORE, BE /T RESOLVED that the City Council of the City of
Redding hereby approves Amendment #1 to the Agreement dated September 7,
1993, and authorizes the Mayor to sign said Amendment.
/ HEREBY CERT/FY that the foregoing resolution was introduced and read at a
regular meeting of the City Council of the City of Redding on the 5th day of April,
1994, and was duly adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS: Anderson, Kehoe, Moss and Arness
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: Dahl
ABSTAIN: COUNCIL MEMBERS: None
CARL ARNESS, Mayor
ATTEST:
CONNIE STR HMAYER, ty Itlerk
FORM APPROVED: (�
RA ALL A. HAYS, City Attorney DAD1\SHDC.AMN
f i
FIRST AMENDMENT TO AGREEMENT BETWEEN CITY OF REDDING
AND SHASTA HOUSING DEVELOPMENT CORPORATION AND
FOR USE OF CDBG FUNDS
THIS AGREEMENT, dated April 5, 1994, is made and entered into by and
between the CITY OF REDDING, a municipal corporation (hereinafter called "CITY"), and
SHASTA HOUSING DEVELOPMENT CORPORATION, a California Non-Profit Public Benefit
Corporation (hereinafter referred to as SHDC).
WITNESSETH:
WHEREAS, CITY and SHDC entered an Agreement dated September 7, 199,3, for
the provision of a low-income rental housing for seniors within the City of Redding; and
WHEREAS, the CITY and SHDC wish to amend the Agreement between the
parties pursuant to the terms and conditions of this First Amendment to Agreement;
NOW, THEREFORE, it is agreed as follows:
Effective April 5, 1994, Section I, Amount and Use of Funds, Item B is hereby
amended to read:
i
B. SHDC shall use the funds provided pursuant to this Agreement to finance the
pre-development costs for the purpose of developing approximately one
hundred (100) rental units of housing affordable to low-income households.
Said units shall be occupied in accordance with affordability restrictions set
forth in Section V of this Agreement.
Section II, Loan Terms and Conditions, Item A, is hereby amended to read:
A. In consideration of the CITY loan, SHDC shall execute a Residual Receipt
Note. During the term of the loan, payments of principal and interest shall
only be required from residual receipts generated by the project. "Residual
receipts" shall be defined as surplus cash remaining after payments on all
reasonable expenses necessary to operate and maintain the project in
habitable condition, debt service, taxes, and reasonable reserves.
Determination of the residual receipts generated by the property shall be made
by SHDC on or before August 31 st of each year, subject to review and audit
by CITY of all relevant project income and operating data and any other
supporting documentation requested by CITY.
Section II, Loan Terms and Conditions, Item B.3., is hereby amended to read:
B.3. CITY loan shall not be subordinate to any other security document
recorded on the property, other than the Bank of America construction
loan.
.1
First Amendment;to Agreement With SHDC Page 2
i
Section V, Affordability Restrictions, Item B. and C. are hereby amended to read:
B. One hundred units developed on the property during the term of this
Agreement shall be occupied by low-income households. For purposes of this
Agreement low-income is defined as follows: Household gross annual income
from all sources may not exceed sixty percent (60%) of the area median
income further adjusted by family size, as most recently published by the U.S.
Department of Housing and Urban Development (HUD).
C. SHDC agrees to maintain the rents for 100 units at affordable levels for low-
income households, for the term of this Agreement. For the purpose 6f this
Agreement, affordable rents shall mean an amount paid for rent, utilities, and
related services by the tenant(s) as determined under the Tax Credit
Allocation Committee guidelines.
IN WITNESS WHEREOF, the parties hereto have set their hands on the day and
year set forth below.
CITY OF REDDING
DATE: By:
CARL ARNESS, Mayor
SHASTA HOUSING DEVELOPMENT CORPORATION
DATE: By:
MARIE RITUCCI, Executive Director
ATTEST:
CONNIE STROHMAYER, City Clerk
FORM APPROVED:
RANDALL A. HAYS, City Attorney D:\D1\SHDC.AMN
i