CONDITIONAL COMMITMENT LETTER TO THE HOUSING AUTHORITY OF THE COUNTY OF MONTEREY FOR THE DEVELOPMENT OF THE DIVISION STREET PROPERTIES Luis Ochoa, Sr. Community Development Analyst
Community Development Department
September 3, 2024
Background
Project Location
Seven Small Contiguous Parcels
921 E. Market Street
115-151 Division Street
2.5 acres
Developer Selection
October 2020
Notice of Availability of Surplus Property
RFP – soliciting development proposals
1 Complete response from HDC & HACM
Discussion
Salinas LHTF
$3,080,000
$1,380,000 – Appraised land value
$1,700,000 – LHTF Program Funds
Purpose of Funds
Predevelopment
Construction
Proposed Project
48 Units
Low, very low, and extremely low-income farmworker families.
Discussion
Conditional Commitment Letter Terms
Gap Financing
Simple interest loan - 3%
55 Year Loan Term
55 Year Affordability Period
Recommended Motion
It is recommended that the Housing and Land Use Committee supports the approval of a City Council resolution authorizing the City Manager to issue a Conditional Commitment Letter to Housing Authority of the County of Monterey (HACM) for predevelopment and construction costs in the amount of $3,080,000 from the Salinas Local Housing Trust Fund for a proposed one-hundred percent affordable multifamily rental housing project at the Division Street properties (921 E. Market St. and 115-151 Division St).
Questions & Comments