To: Honorable Mayor and Members of City Council
From: Vincent Smith, Community Development Director
Prepared By: Lark Ferrell, Housing Manager
TITLE:
Title
Redwood Grove, a 34-Unit Affordable Housing Project Located at 2033 Redwood Road
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution approving a $650,000 increase in the previously approved $1,025,000 loan to Burbank Housing Development Corporation for the Redwood Grove Project (2033 Redwood Road) for a total loan from the City's Affordable Housing Impact Fee Fund of $1,675,000; authorizing the associated budget adjustment; and determining that the actions authorized by this resolution are exempt from CEQA.
Body
DISCUSSION:
Redwood Grove (previously known as Redwood Duets) is a 34-unit affordable for-sale project proposed to be developed at 2033 Redwood Road (the "Project") by Burbank Housing Development Corporation (the "Developer"). Fourteen of the duets would be sold to households at or below 80% of area median income, ten would be sold to households at or below 100% of area median, and ten would be sold to households at or below 120% of area median.
In November 2017, the City approved a $1,025,000 loan to the Developer for the Project from the City's Affordable Housing Impact Fee Fund. In connection with the loan, the City and Developer executed an Acquisition and Predevelopment Loan Agreement and a Declaration of Affordability Covenants ("Affordability Covenants"), which requires that all of the homes be sold to persons at moderate-income or below, with 14 units affordable to those at 80% of area median income or below, ten units affordable to those at 100% of median income or below, and ten units affordable to those at 120% of median or below and that the homes remain affordable at such levels for 45 years. The loan is evidenced by a Secured Promissory Note executed by the Developer and is secured by a Deed of Trust, which is recorded against the property along with the Afforda...
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