BURBANK REDEVELOPMENT AGENCY

Tuesday, July 17, 2007

AGENDA

CITY COUNCIL CHAMBER - 275 EAST OLIVE AVENUE

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6:30 P.M.

INVOCATION:                      

                                                The Courts have concluded that sectarian prayer as part of City

                                                Council meetings is not permitted under the Constitution.

FLAG SALUTE:

ROLL CALL:

CONSENT CALENDAR:  (Item 1)

The following item may be enacted by one motion.  There will be no separate discussion on this item unless a Member so requests, in which event the item will be removed from the consent calendar and considered in its normal sequence on the agenda.  A roll call vote is required for the consent calendar.

1.      SUBORDINATION AGREEMENT REQUEST BY UNITED CEREBRAL PALSY AND THE STATE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT  FOR THE INDEPENDENT LIVING FACILITY AT 600 SOUTH SAN FERNANDO BOULEVARD:

The purpose of this report is to provide information to the Council and Redevelopment Agency Board (Agency) to consider approval of a subordination agreement as requested by the Developer, United Cerebral Palsy (UCP), on behalf of its lender:  State Department of Housing and Community Development (HCD), which administers the Multi-family Housing Program (MHP).  A MHP loan has been awarded to UCP for Casa Providencia, an independent living facility located at 600 South San Fernando Boulevard, conditioned upon the aforementioned agreement.

In 2004, UCP was awarded $1,314,166 in MHP loan funds though Proposition (Prop) 46, the Housing and Emergency Shelter Trust Fund Act, which was approved by voters statewide in 2002.  Prop 46 made available $910 million for rental housing aimed for low-income seniors, disabled persons and families with children.  MHP loan funds are awarded as permanent financing for projects that meet the requirements of an MHP Supportive Housing Development such as the Independent Living Facility in Burbank.  With the project complete, a Certificate of Completion by the City and Agency was recorded in August 2006.  In late May 2007, staff was informed by UCP that escrow on the MHP loan funds is scheduled to close on July 31, 2007.

The 2004 State MHP loan funds, which were awarded by the HCD, directly to UCP, require subordination of the City�s and Agency�s affordability requirements.  Section 311.6 of the Disposition and Development Agreement (DDA) and Second Implementation Agreement require the City and Agency to make the affordability covenants set forth in the Agreements and the Regulatory Agreement, junior and subordinate to the deeds of trust and other documents required in connection with the construction and permanent financing for the project, as to all HUD Capital Advance Documents, and as to other financing which has been approved by the Agency Executive Director as long as the City and Agency find that a subordination agreement contains written commitments which are reasonably designed to protect the investment of the City and Agency in the event of a default.  Said protections are included in the proposed subordination agreement.

There is no fiscal impact with the approval of the proposed subordination agreement. 

Recommendation:

Adoption of proposed resolution entitled:

A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF BURBANK APPROVING A SUBORDINATION AGREEMENT AND ESTOPPEL CERTIFICATE BETWEEN THE AGENCY, THE CITY OF BURBANK, BURBANK ACCESSIBLE APARTMENT CORPORATION AND THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT.

END OF CONSENT CALENDAR

RECESS to conclude the City Council meeting.

ADJOURNMENT.