HomeMy WebLinkAbout1994-01-04; City Council; 12526; SOLICITATION OF PUBLIC COMMENTS AND COUNCIL AUTH TO SUBMIT A SECTION 108 COMMUNITY DEVELOPMENT BLOCK GRANT LOAN APP TO U.S. DEPARTMENTS OF HUD FOR FUNDS TO PURCHASE PROPERTY FOR AFFORDABLE HOUSING - SDP 93-6 THE VILLASI
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12/ WY OF CARLSBAD - AGEaA BILL %
DEPT, SOLICITATION OF PUBLIC COMMENTS AND COUNCIL
AUTHORUATION TO SUBMIT A SECTION 108 CDBG
LOAN APPLICATION TO THE U.S. DEPARTMENT OF HUD
FOR FUNDS TO PURCHASE PROPERTY FOR AFFORDABLE
TITLE; AB# la;sa6
MTG. !-Ll-qy CITY ,
DEPT. RED* HOUSING SDP 93-6 "THE VILLAS" CITY I
RECOMMENDED ACTION:
Hold a public hearing to accept comments on the City of Carlsbad's application for a Sec
Community Development Block Grant (CDBG) Loan in the amount of $1.2 million and Adopt RI
No. 44- 6 authorizing the'Housing and Redevelopment Director to submit the loan ap
to the U.S. Department of Housing and Urban Development (HUD) for the purposes of a
property for the development of affordable housing in Carlsbad.
ITEM EXPLANATION:
Under the Community Development Block Grant (CDBG) program, the City of Carlsbad is el
apply for a low interest, guaranteed loan for various types of development projects. These 1
intended to provide for front-end financing for large-scale community and economic development
that cannot be financed from annual grants. Projects eligible for this financing include the acquj
property, the rehabilitation of housing and related relocation, clearance and site improveme
program allows the City the flexibility to create a repayment schedule that best fits the ca
requirements of the specific project.
The City is eligible to apply for a loan up to five (5) times the amount of its most recent CDBG a1
which for Carlsbad was $512,000. Therefore, Carlsbad is eligible to apply for a maximum
approximately $2.5 million. To guarantee repayment, the City is required to pledge all grants r
for which the City may become eligible for, in future CDBG program years to repay the loa
twenty (20) years.
On October 26, 1993, the City Council approved the recommendation of the Housing Commis:
City Staff to acquire property for The Villas at El Camino Real Affordable Housing Projet
Community Development Block Grant (CDBG) Funds as the financing source. At the noted meei
Council also authorized staff to initiate the process for applying for a Section 108 CDBG Loan in 1
amount of $1.2 million to assist in the acquisition.
The City currently has $880,372.30 in CDBG funds allocated for the purchase of property to be
produce affordable housing for low and moderate income persons. Staff is recommending that tho:
be used in conjunction with the Section 108 loan, if approved, to finance the acquisition of prop
the Villas at El Camino Real.
The City may submit a Section 108 loan application at any time. The application must include a st
of the City's Community Development objectives, a breakdown of the projected uses of the loa
and a schedule for repayment of the loan (including sources of repayment). In addition, the Ci
provide a certification of the City's authority to pledge CDBG funds as security and statements SI
that the proposed project has undergone citizen review. The City is required to hold at least one (1
hearing on the Section 108 loan application to obtain public comments prior to submission to tl
Department of HUD .
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.. AGENDA BILL # CAi52 h PAGE 2
A copy of the application and all required documents is attached for City Council review and is availabl
in the City Clerk’s Office and the Housing and Redevelopment Office for review by the general publii
Staff is recommending that the City Council approve the application with the repayment schedule whic
indicates that the loan will be repaid within ten (10) years through the use of a portion of future CDBi
funds. With an assumption of an interest rate ranging from five percent (5%) to eight percent (8%), tl
City would need to make an annual payment of approximately $155,000 to $179,000 in order to repa
the noted loan in ten (10) years; the payment will ultimately depend upon the interest rate. A set-asic
of the noted payment amount from future CDBG allocations would not detrimentally impact the City
ability to providing funding for other desirable projects (Le, public services, public improvements, etc.
Staff recommends that the City Council accept public comments on the loan application and the propose
use of the funds. As a second action, it is recommended that the Council adopt the attached resolutic
authorizing staff to submit the application to the U.S. Department of HUD for consideration, wil
appropriate public comments I
FISCAL IMPACT:
The City will be required to repay the Section 108 loan at an interest rate which is determined by tl
market at the time the note is sold to a private investor. The loan must be repaid in a period which sha
not exceed 20 years. As indicated in the plan provided within the application, staff is recommending
ten (10) year repayment schedule which identifies the sources of funds to be used as future CDBi
entitlement funds. The attached repayment plan assumes an annual interest rate of 5 to 8 percent a0
reflects a $155,000 to $179,000 estimated annual payment for ten (10) years. This means that the Cii
will be required to set-aside a portion of future CDBG entitlement funds to make the noted loan paymen
Since it is anticipated that the annual CDBG allocation will be at least $512,000 per year, a $155,000 i
$179,000 commitment to repaying the noted loan on an annual basis will not negatively impact tt
Council’s ability to grant CDBG awards to various social service agencies and/or other city projec
within Carlsbad.
In addition to the interest fees, the City will be required to pay an application processing fee (appro]
$1700) and any issuance, underwriting servicing or other costs associated with the private sector financin
of the guaranteed loans. Such costs are payable out of the loan funds and will be shared by all borrower!
CDBG funds may be used to pay for all costs of submitting and processing the application for the Sectic
108 loan. Also, all costs for repaying the loan (including interest costs) are eligible costs under the CDBi
program. Therefore, if CDEIG funds are used as the only source of repayment for the loan and a
issuance costs, there will be no financial impact on the General Fund.
EXHIBITS:
1 - Resolution No. 9 q- k authorizing the Housing and Redevelopment Director to submit
Section 108 CDBG loan application to the U.S. Department of HUD for funds to purcha:
property for affordable housing.
Section 108 loan application package with all supporting documents, 2 -
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CITY COUNCIL RESOLUTION NO. 9 4 - 6
A RESOLUTION OF THE CITY COUNCIL OF THE CITY 0
CARLSBAD,CALIFORNIA, AUTHORIZING THE SUBMISSION OF I
SECTION 108 LOAN APPLICATION TO THE: U.S. DEPARTMENT 0
HUD FOR FUNDS TO PURCHASE PROPERTY FOR AFFORDABL
HOUSING
WHEREAS, the City Council of the City of Carlsbad, California, held a publi
hearing to accept comments on the needs of low and moderate income persons and th
proposal to submit a Section 108 CDBG Loan Application to the U.S. Department c
Housing and Urban Development; and,
WHEREAS, the City Council authorized staff to purchase property for a
affordable housing project known as The Villas at El Camino Real; and,
WHEREAS, the City Council has taken all testimony into account.
NOW, THEREFORE, BE IT RESOLVED as follows:
That the above recitations are true and correct.
That the City Council has approved submission of a Section 108 CDBG Loa
Application to the U.S. Department of Housing and Urban Development in th
amount of $1.2 million for the purpose of financing the acquisition of propert
for the approved affordable housing project known as The Villas at El Camin
Real located adjacent to and west of El Camino Real, between Camino Vid
Roble and Alga Road.
That the City will publish a summary of the proposed project in the loch
newspaper(s) and allow a fifteen (15) day public review and comment periol
prior to submitting the City’s Section 108 CDBG Loan Application to the U.,
Department of Housing and Urban Development for approval.
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0 CCRESONO 4-6
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4. That the Housing and Redevelopment Director is authorized to submit the Sectioi
108 CDBG Loan Application to the U.S Department of Housing and Urbai
Development for approval upon expiration of the public review and commen
period and to execute all appropriate documents which may be required if thi
loan is approved.
PASSED, APPROVED AND ADOPTED, by the City Council of the City c
Carlsbad, California on the 4th day of January , 1994, by the following votc
to wit:
AYES: Council Members Lewis, Stanton, Kulchin, Nygaard and Finnila
NOES: None
ABSTAIN: None
ATTEST:
(Seal)
CITY OF CARLSBAD
COMMUNITY DEVELOPMENT BLOCK GRANT
SECTION 108 LOAN PROGRAM
STATEMENT OF OBJECTIVES AND PROJECTED USE OF FUNDS
The Section 108 Loan in the amount of $1.2 million will be used to finance the acquisition (
property for the purposes of developing affordable housing within the City of Carlsbad. This
an eligible CDBG activity under federal regulations 24 CFR Part 570 Section 570.201(a) ar
570.703(a). The total cost of the property acquisition is $2 million. The proposed funding WI
be used for financing the property acquisition only. There will be no CDBG funds used fc
actual construction on the property or any related improvements. The total cost of the projec
including land and construction, is approximately $32 million.
With $880,372.30 in Community Development Block Grant (CDBG) funds on hand and the $1
million Section 108 Loan, the City will finance the purchase of a vacant piece of property kno~
as the "little Bressi property". The property, which is approximately twenty-one (21) acres
size, is located adjacent to and west of El Camino Real between Camino Vida Roble and Ali
Road. The parcel number for the subject property is 215-020-15 and the address is 9156 1
Camino Real.
The subject property will be used for a rental housing project which will provide 344 units (
housing affordable to households of low and very low income. As approved by the City Counc
on October 26, 1993, the subject affordable housing project includes one, two and thrt
bedroom apartment units with rents ranging from 30% of 50% to 30% of 60% of the San Die€
County Median. As of the date this application was prepared, the rental rates range from $3t
(1 bedroom) to $626 (3 bedroom). As an example, a family of four with a gross househo
income of $21,950 would rent a two bedroom apartment in this project for $449 per month.
The development team for the above project is Hillman Properties (private local developer
Bridge Housing Corporation (private non-profit affordable housing developer) , ar
fOruer/Picerne Partnership (private local developer/builder) . The City of Carlsbad has bet
working closely with the development team and will be participating financially in the proje
by financing the cost of acquiring the property for the project.
If the above described project is not developed for whatever reason, the noted property WI
either be sold or be used for an alternate affordable housing project.
2965 Roosevelt St., Ste. B Carlsbad, CA 92008-2389 (61 9) 434-281 0/2811 FAX (61 9) 720-203
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The City obtained two (2) market appraisals which supported a land price of $2 million. T
City completed an environmental review of the proposed affordable housing project and k
determined that the acquisition of the subject property and ultimate construction of the ren
units will have no significant impact on the environment. A request for release of project fun
was submitted to the U.S. Department of Housing and Urban Development (HUD) on Octot
29, 1993 for review.
As stated previously, the cost of the subject property is $2 million. Since the CDBG fun
currently allocated for the property acquisition ($880,372.30) are insufficient to complete t
financial transaction for acquiring the property, the City will apply for a Section 108 loan frc
the U.S Department of HUD. The loan can be repaid in full (with interest) by using a portil
of the City’s future CDBG entitlement allocations for the next ten (10) years. The propos
repayment plan indicates that the City will set-aside approximately $155,000 to $179,000 p
year from its CDBG Entitlement Grant for the next ten (10) years to repay the loan, if approv(
by HUD.
The project outlined above was selected for the Section 108 Loan Program because it meets tl
national objective of providing benefit to low and moderate income persons and it meets the tc
priority, or number one objective, of Carlsbad’s Community Development Plan which is
provide direct benefit to low and moderate income persons through the provision of affordab
housing units.
The other objectives established by the Carlsbad City Council are as follows:
1. Provide direct benefit to low and moderate income persons through the maintenance (
affordable housing units or housing related services for Carlsbad.
Provide assistance to prevent or eliminate residential Building or Municipal COC
violations andlor the deterioration of potential or existing affordable housing units.
Provide assistance to public service providers which meet the basic needs (food, clothg
shelter, health) of low and moderate income persons/households.
Provide assistance to organizations which directly benefit children, the elderly, disable1
persons and the homeless.
Provide assistance to organizations which help non-homeless persons with special need:
such as the elderly, frail elderly, persons with mental, physical and developmenta
disabilities, persons with alcohol or other drug addictions, persons diagnosed with AID!
and related diseases.
2.
3.
4.
5.
The City is committed to contributing at least 70% of all CDBG funds received from HUE
through the annual entitlement program and/or the Section 108 Loan program tc
projectslactivities which assist primarily low and moderate income persons throughout Carlsbad
The proceeds from the Section 108 loan will be used in their entirety to directly assist low and
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very low income persons to obtain affordable housing in Carlsbad. The proposed proje
provides direct benefits to 100% lower income persons.
The funds to be used for purchase of the subject property include no program income and w
not generate any program income unless the property is sold at a later date. If the property
ultimately sold for whatever reason, the funds received from the sale will be returned to tl
CDBG program account and be reallocated to another eligible project.
The subject property is currently vacant. Therefore, no displacement of lowlmoderate incorr
persons will occur as a result of the acquisition. It is the intent of the City of Carlsbad that g
CDBG assisted project proposed for funding by the Council result in the displacement (
lowhoderate income persons from their homes. However, if low/moderate income persons ai
displaced, the City will provide relocation assistance as required in Section 570.606 (b) (2) I
the federal regulations for the CDBG program.
The proposed property acquisition has received the unanimous support of the Housin
Commission, a commission made of nine (9) residents of Carlsbad whose express purpose is t
review and make recommendations on affordable housing policies, programs and projects.
The Commission includes two (2) representatives of lower income households.
In addition, on September 1, 1993, the Carlsbad Planning Commission recommended approvz
recommendations of the Housing Commission, the Planning Commission and City Staff ani
approved the subject affordable housing project on October 26, 1993.
Prior to submitting the Section 108 loan application to the U.S. Department of HUD, the Cit
will make the application available to the general public for fifteen (15) calendar days for revie\
and comment. All comments received on the proposed project or the application will bl
forwarded to the U.S. Department of HUD for review.
of the proposed affordable housing project to the City Council. The City Council accepted th
e e
CITY OF CARLSBAD
COMMUNITY DEVELOPMENT BLOCK GRANT
SECTION 108 LOAN PROGRAM CERTIFICATIONS
In accordance with Housing and Community Development Act of 1974, as amended, and wi
24 CFR 570.700 of the Community Development Block Grant regulations, the City of Carlsbz
certifies that:
(a) The City possesses the legal authority to make a Section 108 Loan Applicatio
submission and to use the guaranteed loan funds in accordance with the requiremeni
of Subpart M of 24 CFR part 570.;
The City possesses the legal authority to make the pledge of future CDBG grants E
The City has made efforts to obtain financing for activities described within the Sectia
108 Loan Application without the use of the loan guarantee;
The City cannot complete the financing for the project outlined within the Section 10
Loan Application within a timely manner without the loan guarantee;
The City’s governing body has duly adopted or passed as an official act a resolutio
motion or similar action authorizing the person identified as the official representative c
the City to submit the Section 108 Loan Application and amendments thereto and a
understandings and assurances contained therein, and directing and authorizing thj
person identified as the official representative of the City to act in connection with th
Section 108 Loan Application and to provide such additional information as may bl
required;
(b)
required by Section 570.705(b)(2);
(c)
(d)
(e)
(f) Prior to submission of the City’s Section 108 Loan Application to HUD, the City has:
1.
2.
Met the citizen participation requirements of Section 570.704(a)(i)(ii) and (iii);
Prepared the statement of community development objectives and projected UM
of funds in accordance with Section 570.704(a) and made the final staternen
available to the public;
(9) The City is following a detailed citizen participation plan which:
1. Provides for and encourages citizen participation, with particular emphasis or
participation by persons of low and moderate income who are residents of slun
and blighted areas and areas in which funds are proposed to be used, an(
provides for participation of residents in low and moderate income neighborhood!
as defined by the local jurisdiction;
Provides citizens with reasonable and timely access to local meetings, informatior
of the Secretary and relating to the actual use of funds under the Act;
2.
and records relating to City’s proposed use of fund as required by the regulation3
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3. Provides for technical assistance to groups representative of persons of low ar
moderate income that request such assistance in developing proposals with tt
level and type of assistance to be determined by the City;
4. Provides the public hearings to obtain citizen views and to respond to proposa
least the development of needs, the review of proposed activities, and review I
and questions at all stages of the community development program, including
program performance and such hearings shall be held after adequate notice, i
times and location convenient to potential or actual beneficiaries, and wil
accommodations for the handicapped;
Provides for a timely written answer to written complaints and grievances withi
fifteen working days where practicable; and
Identifies how the needs of non-English speaking residents will be met in the cas
of public hearings where a significant number of non-English speaking -resideni
can be reasonably expected to participate;
5.
6.
(h) The City will affirmatively further hair housing and the grant will be conducted an
administered in compliance with:
1. Title VI of the Civil Rights Act of 1964 (Public Law 88-352, 42 U.S. C. Sectio
2000d et sea.); and
The Fair Housing Act (42.U.S.C. 3601-20): 2.
The City has developed a statement of projected use of Section 108 Loan funds so a!
to give maximum feasible priority to activities which benefit low and moderate incomc
families or aid in the prevention or elimination of slums or blight (the final statement o
projected use of funds may also include activities which the grantee certifies are designec
to meet other community development needs having a particular urgency becausc
existing conditions pose a serious and immediate threat to the health or welfare of thc
community, and other financial resource are not available); except that the aggregate USI
of CDBG funds received under Section 106 of the Act, and if applicable, under sectioi
108 of the Act, during the 1993-94 program year(s) shall principally benefit persons o
low and moderate income in a manner that ensures that not less than 70% of such fundi
are used for activities that benefit such persons during such period;
The City has developed a Community Development Plan, for the period specified ir
paragraph (9 above, that identifies community development and housing needs anc
specifies both short and long-term community development objectives that have beer
developed in accordance with the primary objective requirements of the Act;
The City is following a current Comprehensive Housing Affordability Strategy (CHAS
which was approved by the City Council on May 5, 1992. The City’s CHAS wa:
approved by HUD on June 22, 1992, and any housing activities to be assisted with CDBC
funds will be consistent with the CHAS;
The City will not attempt to recover any capital costs of public improvements assisted ir
whole or in part with funds provided under Section 106 of the Act or with amounts
(i)
(i)
(k)
(I)
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resulting from a guarantee under section 108 of the Act by assessing any amount agair
properties owned and occupied by persons of low and moderate income, including a
fee charged or assessment made as a condition of obtaining access to such pub
improvements, unless:
1. Funds received under Section 106 of the Act are used to pay the proportion
such fee or assessment that relates to the capital costs of such pub1
improvements that are financed from revenue sources other than under Title I
the Act; or
For purposes of assessing any amount against properties owned and occupit
by persons of lowlmoderate income, the City certifies to the Secretary that tt
City lacks sufficient funds received under Section 106 of the Act to comply wii
the requirement of subparagraph (1) above;
The City’s notification, inspection, testing and abatement procedures concerning leac
2.
(m) based paint will comply with Section 570.608:
(n) The City will comply with acquisition and relocation requirements of Uniform Relocatic
Assistance and Real Property Acquisition Policies Act of 1970, as amended, as require
under Section 570.606 (b) and Federal implementing regulations; and the City is followin
a residential anti-displacement and relocation assistance plan as required under Sectio
104 (d) of the Act and in Section 570.606 (c); and the City will comply with relocatio
requirements of Section 570.606 (d) governing optional relocation assistance undc
Section 105 (a) (1 1) of the Act;
The City has adopted and is enforcing:
1.
(0)
A policy prohibiting the use of excessive force by law enforcement agencies withii
our jurisdiction against any individuals engaged in non-violent civil right!
demonstrations; and
A policy of enforcing applicable State and local laws against physically barrin! entrance to Or exit from a facility or location which is the subject of such non violent civil rights demonstrations within our jurisdiction;
2.
(p) To the best of the City’s knowledge and belief:
1. No Federal appropriated funds have been paid or will be paid, by or on behalf o
the City, to any person for influencing or attempting to influence an officer 01
employee of any agency, a Member of Congress, an officer or employee o
Congress, or an employee of a Member of Congress in connection with the
awarding of any Federal contract, the making of any Federal grant, the making
of any Federal loan, the entering into of any cooperative agreement, and
extension, continuation, renewal, amendment or modification of any Federal
contract, grant, loan, or cooperative agreement;
If any funds other than Federal appropriated funds have been paid or will be paid
to any person for influencing or attempting to influence an officer or employee oi
any agency, a Member of Congress, an officer or employee of Congress, or an
2.
0 a
employee of a Member Congress in connection with this Federal contract, grar
loan, or cooperative agreements, it will complete and submit Standard Form-LL
“Disclosure Form to Report Lobbying,” in accordance with its instructions; anc
The City will require that the language of paragraph (m) of this certification k
included in the award documents for all subawards at all tiers (includin
subcontracts, subgrants, and contracts under grants, loans, and cooperatib
agreements) and that all subrecipients shall certify and disclose accordingly;
3.
(4) It will or will continue to provide a drug-free workplace by:
1. Publishing a statement notifying employees that the unlawful manufacturt
distribution, dispensing, possession, or use of a controlled substance is prohibite
employees for violation of such prohibition;
Establishing an ongoing drug-free awareness program to inform employees abou
(a)
(b)
(c)
in the grantee’s workplace and specifying the actions that will be taken again!
2.
The dangers of drug abuse in the workplace;
The grantee’s policy of maintaining a drug-free workplace;
Any available drug counseling, rehabilitation, and employee assistancl
programs; and
The penalties that may be imposed upon employees for drug abus
violations occurring in the workplace; (d)
3. Making it a requirement that each employee to be engaged in the performance
of the grantlloan agreement be given a copy of the statement required b!
paragraph 1;
Notifying the employee in the statement required by paragraph 1 that, as i
condition of employment under the grantlloan agreement, the employee will:
(a)
(b)
4.
Abide by the terms of the statement; and
Notify the employer in writing of his or her conviction for a violation of E
criminal drug statute occurring in the workplace no later than five calendai
days after such conviction;
5. Notifying the agency in writing, within ten calendar days after receiving notice
under subparagraph 4(b) from an employee or otherwise receiving actual notice
of such conviction. Employers of convicted employees must provide notice,
including position, title, to every grant officer or other designee on whose grant
activity the convicted employee was working, unless the Federal agency has
designated a central point for the receipt of such notices. Notice shall include the
identification number(s) of each affected grant;
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6. Taking one of the following actions, within thirty calendar days of receiving notic
under subparagraph 4(b), with respect to any employee who is so convicted:
(a) Taking appropriate personnel action against such an employee, up to ar
including termination, consistent with the requirements of tt
Rehabilitation Act of 1973, as amended; or
Requiring such employee to participate satisfactorily in a drug abu:
assistance or rehabilitation program approved for such purposes by
Federal, State, or local health, law enforcement, or other approprial
agency;
(b)
7. Making a good faith effort to continue to maintain a drug-free workplace throug
implementation of paragraphs 1,2,3,4,5 and 6.
8. The grantee may insert in the space provided below the site(s) for tt-
performance of work done in connection with the specific grant:
Place of Performance (Street, address, city, county, state, zip code)
City of Carlsbad
Housing & Redevelopment Department
2965 Roosevelt Street, Suite B
Carlsbad, CA 92008
Check X
The City will comply with the other provisions of the Act and with other applicable law!
if there are workplaces on file that are not identified here; and
(r)
Signature Date
Title
Year 6
Year 7
Year 8
Year 9
Year 10
178835.3 CDBG Year6 170853.0 CDBG
178835.3 CDBG Year7 170853.0 CDBG
178835.3 CDBG Year8 170853.0 CDBG 178835.3 CDBG Year9 170853.0 CDBG
178835.3 CDBG Year 10 170853.0 CDBG
Year 8
Year 9
Year 10
163041.5 CDBG Year8 155405.4 CDBG
163041.5 CDBG Year9 155405.4 CDBG
163041.5 CDBG Year 10 155405,4 CDBG
I Cm OF CARLSBAD APPLICATION FOR SECTlON 108 LOAN COYMUNrrY DEVELOPMENT BLOCK GRANT PROGRAM NOTICE OF PUBLIC HEARING
The Citizens of the Cit of Cadsbad are hereby nodied mattheCHyCMdrrilha public head on Twsda January 4.1% at 6’M)pm k the Counal Chambers loMed at 1200car1sbadvlii Vwmerty Elm AwnuTZE Cuss and select the City of Carlsbad’s application for a Sectm 108 Loan thrwgh the federal overnment s Corn. munit Bevelopment Block rant TCDBG, Program The CHy rselgffletoappy fa a low interest guaranteed loan for verioul types of de. ntpqeus p~eds Zgefor viis finenung in- dude Um acqrnslbon of plop erty. me rshabilitabon of hap- Ing and related relocation dearam SKI *e impmvem’ SntSThB ailuus me Cihlthati%Y”to- a repaymem~*matkts( ~mewshh~ dmespedficpolecL Pmy@?iY row* (5) ml€S me amounl of Its moat recent
repay the loan *in twenty K2G -ring an a pation for e Section I& oan in the total amount of $1 2 mum to finam me a0 quisition of roperty for the approved af&dable houslng know as Ttw Vlllas at no Rear - a 344 muC E.x%l bfamly rentalunttpfojedtobe
located at 91 56 El Camino Real Wn me CIIY OlCadsb ad Trmloanwldbe wim a porbon dfuture X! funds over a ten (10) year ped Wfi an assumptw of an interest rate between five percant (5%) to eight pen;ent (8%) the Clty would need to make an annual payment of approximately $155,000 to $1 79 OOO in order to repay Uw noted loan in ten (IO) years. me payment mll utbmateiy de- pend on the interest rate A set-aside of the noted pay- men1 amount from future CDBG allocations would not deblmentaliy impact me ability to provide fundig: omerdeslraMeproteds The publy: is invded to attend Wm public heanng on January 4.1994 and provide com- mentsorl~pmposed -be - 108 caB$Gc loanandme funds The pt%%az,“o Qnmenton the housing and community development needsofkwandmcderatei* I wme persom at Me nohced
CDBG allocation which for Carisbad was $512 000 mefore carlabad I+ ap plyfa8kkand proximateiy $2 5 million SP,
I bm CoBG mram vmm to,
j !%%~z~b2 made or, for which the City mey bemme eaai~e h. PI b
F‘T!kemoresped& ini&ation on the Section 108 CDBG Loan Appllatm and/or proposed use of the tunds. please contad Debb#, Fwntain OT Lellani Hlnes. CHy o( arkbad Harww & Red* velopmenl Department at (619) 434-281 1
Legal 38292 December 23. 29.1993