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In addition to overall application and document review, EDD staff and TDA Consulting Inc. reviewed all proformas and conducted preliminary underwriting analysis of all project proposals received; and
A risk assessment of each applicant and its proposal was conducted to ensure the selected applicant has the ability to comply with funding requirements; and Due to the proposed public financing, the development of the projects must be approved pursuant to Article XXXIV (34) of the California Constitution, which requires a local election to approve affordable housing projects; and In 2018, local voters gave the City Council the authority to approve up to 500 units per year. The proposed units are within this limit; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:
1. Approve the de-obligation of $1,614,000 of HOME Investment Partnerships Program (HOME) and Low-and Moderate-income Housing Fund (LMIHF) funding from the Sierra Vista, Phase Ill project, (Delta Community Developers Corporation (DCDC), developer).
2. Approve a loan to Mutual Housing California for the affordable Fairview -----��errace�Cl�units_)�ho_using�da)LelopmentJ□Jlie�amo�untoL$2,8�0�Q,0�00, �PLQVjdeJ:f�t, as a�- cond ition of funding, the borrower demonstrates to the City Manager's or designee's satis·faction that the project meets the underwriting and general requirements of the 2025 Housing NOFA guidelines.
Funding sources for the loan can include use of any combination of HOME, HOME-ARP, LMIHF, PLHA, NSP, Community Development Block Grant (CDBG), and/or Homeless Housing Assistance and Prevention (HHAP), based on eligibility and timeliness of the funding source(s) at the time of full project funding commitments and construction schedule.
The loan shall have a 55-year loan term with interest accruing at 3% and repayment made from residual receipts, proportionate to the City lo_an percentage of total permanent funding. Residual receipts are the amount of revenue remaining after all operating expenses are paid. If the annual residual receipt payments do not pay off the loan, the remaining balance would be due as a lump sum at the end of the 55-year term. A Deed of Trust, Promissory Note, and Regulatory Agreement will be executed to secure the City's investment and affordability of the units. The loan proceeds may be used by the developer for pre-development costs, construction costs, and development consultant costs. HOME-funded projects will have a 55-year loan term with a 20-year affordability period, consistent with the maximum affordability period recommended for HOME-assisted projects; a longer extended commitment period may be imposed; and
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