Attachment No. 11
19835252.1
Exhibit C: Commitment Letter
November 22. 2022
Will Sager
Di eclor o Ho sing F,immce
Unc Housing Corpo ation
RE: I Street Affordable Housi1rng Project
Commitment to Allocate City of Merced 2021-2023 Pem,anenl Local Housing Allocation (PLHA) funds of appro,ximalefy $1,608,830.
Dear Mr. Sager,
On November 21, 2022, the City Council of the City of Merced approved and recommended that the City o Meroe<i ('City") committ e c· y"s 2021-2023 Permanent Local Housir119 Allocation (PLHA)funds of approximatety $1,608,830 lo Lmc Housing ("Linc"} for lhe development of I Street Affordable Housing Proj eot (''project") The project is localed at 1815 & 1623 I Street; .205 & 211 18th Street and 202 W. 19th Street. wilh Assessor's Parcel Numbers of 031-074-008: 031-074--009: 031-074-01-0; 031-074- 011; 031-074-012,
The PLHA iunds will be available for construction and pennane 1l financing under the following terms:
• Interest rate: 3% simple annual
• Term of Affordability: 55 years from occupancy
• Term or Loa11: 57 years
• Repayment - Annual payments based on 50% of residual receipts, as defined in the loan agreement. When olher public fundi g is i nvolved, the City will share the distribution of resl�ual receipts on a pro r.ata basis.
• Colla era I - Deed of trust secured by the land or leasehold interest and improvements.
The City is in an Exclusive Negotia ing Agreement ("E A") wilh Linc tor the five par-eels, and is currently negotia i g a Disposition a d Development Agreeme r ( DDA"). Linc's project, u!ilizrng Housing Successor Agency properties, is a 100% affordable housing development comprised or 54-units, for ousehoJds earning al or befow 30% and up to 80% of lhe area media income.
Linc Housing is known for successfully developing af
f
ordable and atlraclive properties I r-oughoul
California. T hus, the City of Merced is excited lo support inc's affordable housrng project.
J;Q,
Scott MoB:ride
Dev,elopme I Services Director
City or Me ced
16