Low Moderate Income Housing Trust

Each city in California must have a housing element in its general plan, according to State law (Government Code, Section 65000 seq.) This mandated element consists of identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives and scheduled programs for the preservation, improvement and development of housing. The housing element must identify adequate sites for housing and make adequate provision for the existing and projected housing needs of all economic segments of the community.
A sign in front of an apartment building.
As part of redevelopment, the City was also required to commit 20% of its increment revenue to the provision of affordable housing. In 2005, the City instituted two programs 2 RDA funds, a First-Time Home Buyer Down Payment Assistance program (FTHB) and a grant program to pay up to $3,000 of closing costs for households that are income-eligible. The FTHB program provided a deferred 30-year loan of up to $50,000 to assist income-eligible households with the purchase of a residential unit.

The City also borrowed California Housing Finance Agency (CalHFA) funds to provide direct forgivable and repayable loans to local public agencies and non-profit developers, to assist development projects involving multi-family residential projects. The City has 2 outstanding loans with CalHFA, which were used to provide loans to the Community Housing Improvement Systems and Planning Association (CHISPA), executed and designed to improve and increase the supply of affordable housing in Greenfield.

Payments


The recognized obligation payment schedule for the 6-month period of January 1, 2015 to June 30, 2015 (ROPS 14-15B), approved by Successor Agency's Oversight Board in October 2014, included the $650,000 obligation for repayment of the low income housing loan to the California Housing Finance Agency (CalHFA), which is due on April 10, 2015 and reflected in the amended fiscal year 2015 budget. After the Board approved ROPS 14-15B the County Auditor-Controller determined that the that projected funds to be remitted from the Redevelopment Property Tax Trust Fund was insufficient to fund the entire amount of recognized obligations as approved by the Department of Finance.

Due to this projected revenue shortfall, staff worked with the County Auditor-Controller to submit an Insufficiency Claim to the State Controller's Office. The Insufficiency Claim was submitted to the State Controller's Office on November 26, 2014 and was approved December 4, 2014. The result of concurrence by the State Controller's Office was a full funding of the recognized obligations scheduled for payment during the period January 1, 2015 to June 30, 2015. Repayment of the $675,000 CalHFA loan scheduled in fiscal year 2017 will also be subject to the availability of funds.

Using the

Loans


These loans from CalHFA were used to enter into 3 agreements with the Community Housing Improvement Systems and Planning Association (CHISPA) concerning the development of multi-family residential projects. The first loan was executed with CHISPA on December 28, 2005, in which the City contributed $500,000 toward the cost of developing a 40 unit multi-family residential project, named Walnut Place, for low and moderate income households. In exchange for the City contribution, the City obtained a promissory note and deed of trust secured by the housing project. CHISPA agrees to maintain the project in accordance with certain low and moderate income restrictions imposed upon it by the City. Repayment of the $500,000 note is not due as long as CHISPA meets the requirements of the various restrictions.

The second loan with CHISPA was entered into on May 2, 2007, in which the City contributed $500,000 toward the cost of developing a 40 unit multi-family residential project, named Vineyard Green Townhomes, for low and moderate income households. The third loan with CHISPA was entered into on April 20, 2009, in which the City contributed $700,000 toward the cost of developing a 40 unit multi-family residential project, named Vineyard Green Townhomes, for low and moderate income households.

In exchange for the City contribution for each loan, the City obtained 2 promissory notes and deeds of trust secured by the housing projects. CHISPA agrees to maintain the projects in accordance with certain low and moderate income restrictions imposed upon it by the City. Repayment of the both notes is not due until 55 years from the date each agreement was signed.