TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Russell Bunim, Community Development Director
1. SUBJECT
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Revision to funding designation for the sale of 617, 625, and 637 West La Veta Avenue for the development of six affordable housing units.
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2. SUMMARY
This report provides updated information regarding the Disposition and Development Agreement for 617, 625, and 637 West La Veta, previously approved on April 13, 2021. It clarifies the appropriate allocation of sale proceeds, outlines the use of housing funds to support the transaction, and requests authorization to waive accrued interest to facilitate early repayment by the developer.
3. RECOMMENDED ACTION
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1. Establish the demand payoff amount for the sale of 617, 625, and 637 West La Veta of $700,000, if paid in full by November 30, 2025 and waive the accrued interest amount of $316.44.
2. Appropriate $700,000 from the unreserved fund balance of the Low & Moderate Income Housing Asset Fund (232) to the Gas Tax Fund (272).
3. Appropriate all proceeds from the sale of 617, 625, and 637 West La Veta to the Low & Moderate Income Housing Asset Fund (232).
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4. FISCAL IMPACT
The $700,000 in proceeds from the sale of the properties will reimburse the Gas Tax Fund (272). The Low & Moderate Housing Fund (232) will reflect a temporary expense until repayment is received.
5. STRATEGIC PLAN GOALS
Goal 3: Enhance Public Communication Strategy and Quality of Life
6. DISCUSSION AND BACKGROUND
On April 13, 2021, the City Council approved a Disposition and Development Agreement between the City of Orange and Shelter Providers of Orange County, Inc. (HomeAid) for the development of six affordable housing units.
The properties were originally acquired in 1992 and 1999 with Gas Tax Funds (272) for a planned street widening project that was later abandoned due to the City's inability to acquire the remaining necessary parcels on th...
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