TITLE
Recommendation to adopt resolution authorizing re-issuance of Tax-Exempt Multifamily Mortgage Revenue Bonds in an amount not to exceed $15,236,000 and issuance of Tax-Exempt Multifamily Mortgage Revenue Bonds in an amount not to exceed $6,000,000 as financing for the Decro Scattered Site Housing Rehabilitation Project;
Authorize City Manager to execute all documents necessary to complete this transaction as indicated in the resolution;
Approve the amendment of the Fiscal Year 2005-2006 Federal Action Plan to make HOME funds available for the project; and
Approve the Second Amendment to the Affordable Housing Agreement with Decro Long Beach, L.P., and authorize City Manager to execute it and all documents necessary or desirable for implementation thereof. (Districts 1,6,9)
DISCUSSION
On March 23, 2004, the City Council adopted a Resolution authorizing the issuance, sale and delivery of Multifamily Mortgage Revenue Bonds for the Decro Scattered Site Rehabilitation (Decro) Project in the amount of $15,236,000. Subsequent to the City Council action, bonds were issued on April 8, 2004. This is for the rehabilitation of 320 residential units existing in 12 separate buildings scattered throughout the Community.
At the time the bonds were issued, the construction budget was based on initial analysis of the 12 sites encompassing 320 apartments that make up this project. Work was initiated by the project contractor shortly after the bonds were sold, and the majority of work was completed on five of the twelve properties as of March 2005. However, because of torrential rains in 2004/2005, significant damage occurred to a number of units. The result was an increase in construction costs and relocation costs. The new project scope requires a $1 6,984,174 increase in funding from various sources (shown in Attachment “A).
Revised funding sources requiring City action include the following:
*Technical re-issuance for Federal tax purposes of the original bond i...
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