HOUSING COMMITTEE REPORT relative to the issuance of financial commitments and/or tax credit letters of support for seven Affordable Housing Trust Fund (AHTF) Pipeline projects, and related actions.

Recommendations for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR:

1. AUTHORIZE the General Manager, Los Angeles Housing and Community Investment Department (HCIDLA) or designee, to:
   
   
   1. Issue a 9 percent tax credit letter of support for each project identified in Table 1 of the HCIDLA report to the Mayor dated February 11, 2016.
      
      
   2. Issue an AHTF financial commitment letter for each applicable project identified in Table 1 of the HCIDLA report, subject to the following conditions:
      
      
      1. That the final AHTF financial commitment not exceed the amount listed.
         
         
      2. That the project sponsor apply to the California Tax Credit Allocation Committee (CTCAC) in the next 9 percent Low Income Housing Tax Credits allocation round.
         
         
      3. That the disbursement of AHTF funds will occur after the sponsor obtains enforceable commitments for all proposed funding.
         
         
   3. Issue an AHTF financial commitment letter for each applicable project identified in Table 2 of the HCIDLA report, subject to the following conditions:
      
      
      1. That the final AHTF financial commitment not exceed the amount listed.
         
         
      2. That the project sponsor apply in the next CTCAC and California Debt Limit Allocation Committee (CDLAC) rounds for 4 percent Low Income Housing Tax Credits and tax-exempt bond allocations.
         
         
      3. That the disbursement of AHTF funds will take place after the sponsor obtains enforceable commitments for all proposed funding.
         
         
   4. Negotiate and execute an acquisition /predevelopment /construction /permanent loan agreement with the legal owner of each project identified in Tables 1 and 2 of the HCIDLA report that receives an award from the proposed leveraging source, subject to the satisfaction of all conditions and criteria stated in the AHTF application, the HCIDLA report, and the HCIDLA letter of commitment (if applicable); subject to the approval of the City Attorney as to form and legality.
      
      
   5. Execute subordination agreements for each of the projects in Tables 1 and 2 of the HCIDLA report, wherein the City loan and regulatory agreements are subordinated to their respective conventional or municipally funded construction and permanent loans, as required.
      
      
   6. Allow the transfer of the City’s financial commitment to a limited partnership or other legal entity formed solely for the purpose of owning and operating the project in accordance with City and federal requirements.
      
      
   7. Decrease the total number of units for the PATH Metro Villas I project from 68 to 65.
      
      
   8. De-obligate funds from the following project:
      
      

      Project	Fund/Dept No.	Account	Title	Amount
      King 1101	44G/43	43E213	McKinney Bond Proceeds	$10,000

                     
   9. Obligate new HOME funds for each project listed below:
      
      

      Project	Fund/Dept No.	Account	Title	Amount
      2016 CTCAC Round 1 - 9% LIHTC Applicant:
      King 1101	561/43	43M008	AHTF	$2,190,000
      Total - 2016 CTCAC Round 1 - 9% LIHTC Applicants				$2,190,000
      2016 CTCAC and CDLAC 4% LIHTC and Bond Applicants:
      PATH Metro Villas I	561/43	43L212	AHTF-PI	$5,589,548
      El Segundo Apartments	561/43	43L212	AHTF-PI	$3,134,322
      El Segundo Apartments	561/43	43M008	AHTF	$865,678
      Total - 2016 CTCAC and CDLAC 4% LIHTC and Bond Applicants				$9,589,548
      Total - All Projects				$11,779,548

          
2. AUTHORIZE the Controller to appropriate funds in Fund No. 561/43 Account No. 43L212 (Affordable Housing Trust-PI) on as needed basis, as program income is received from the Paseo at Californian, Winnetka Senior Apartments, and LDK Senior Apartments, in an amount not to exceed $8,723,870.
   
   
3. AUTHORIZE the General Manager, HCIDLA, or designee, to prepare Controller instructions and/or make any technical adjustments that may be required and are consistent with this action subject to the approval of the City Administrative Officer; and AUTHORIZE the Controller to implement these instructions.

Fiscal Impact Statement: The HCIDLA reports that this action will not impact the General Fund.  The above recommendations will authorize the HCIDLA to fund 419 affordable housing units and issue new or additional commitments in HOME funds totaling $11,779,548.

Community Impact Statement: None submitted.

ADOPTED

AMENDING MOTION (BLUMENFIELD for CEDILLO - MARTINEZ)

Recommendation for Council action, SUBJECT TO THE APPROVAL OF THE MAYOR:

AUTHORIZE the General Manager,  Los Angeles Housing and Community Investment Department to issue an additional financial commitment in the amount of $2,050,000 in Community Redevelopment Agency Non-Housing Bond Funds allocated to Council District One to the 1010 Development Corporation for the Casa Carmen Apartments located at 1800 West 11th Street, Los Angeles, CA 90006, with the understanding that this amount will be reimbursed. 

ATTEST: Holly L. Wolcott,  CITY CLERK

By:

Council Clerk                    PRESIDENT OF THE CITY COUNCIL