BUILDING COMMUNITIES JAR '12011

Community Redevelopment Agencyof the CITY OF LOS ANGELES

DATE /

FILE CODE I

T 213 977 1600 / F 213 977 1665www.crala.org

1200 West 7th Street / Suite 500Los Angeles/ California 90017-2381

Honorable Council of the City of Los AngelesJohn Ferraro Council Chamber200 N. Spring StreetRoom 340, City HallLos Angeles, CA. 90012

CRA File No. 938'.Council District: Z

Contact Person: D. VillegasPhone #818-623-1068

COUNCIL TRANSMITTAL:Transmitted herewith, is a Board Memorandum adopted by the Agency Board on March7, 2011, for City Council review and approval in accordance with the "CommunityRedevelopment Agency Oversight Ordinance" entitled:

VARIOUS ACTIONS RELATED TO:Tobias Terrace Apartments. Loan Agreement with Tobias Terrace Apartments, L.P. notto exceed $2,500,000 for developmnet of the Tobias Terrace Apartments project at9247-9257 Van Nuys Boulevard and 9246 Tobias Avenue in the Earthquake DisasterAssistance Project Area for portions of Council District 7. (EAST VALLEY REGION - CD7)

RECOMMENDATIONThat City Council approve(s) recommendation(s) on the attached Board Memorandum.

ENVIRONMENTAL REVIEWThe proposed Project is exempt from provisions of the California Environmental QualityAct ("CEQA") pursuant to Section 15195 (Affordable Housing Exemption) of the CRA/LAand State CEQA Guidelines.

FISCAL IMPACT STATEMENTThere is no fiscal impact to the City's General Fund, as a result of this action.

cc: Sharon Gin, Office of the City Clerk (Original & 3 Copies on 3-hole punch)Lisa Johnson Smith, Office of the CAOIvania Sobalvarro, Office of the CLASteve Ongele, Office of the MayorNoreen Vincent, Office of the City Attorney

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TOBIAS TERRACE LOA( AGREEMENT AUTHORIZATION

SUMMARY

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Approval of the Loan Agreement committing $2,500,000 in CRA/LA construction and permanentfunds to the Tobias Terrace Apartments project at 9247 - 9257 Van Nuys Boulevard and 9246Tobias Avenue is needed to permit Tobias Terrace Apartments L.P. to successfully compete forother outside funding sources with application deadlines during the first half of 2011. Release ofthe CRA/LA loan proceeds will occur at closing of the construction financing at which time allother funding commitments will be in place. CRA/LA proceeds will be used towardreimbursement of a portion of the site acquisition costs and predevelopment expenses. Thepurchase price for the site is $3, 200,000. The project will be comprised of 55 affordable familyapartments (including 1 three-bedroom resident manager's unit) in four residential levels withsurface parking, two large community rooms, and large enclosed yard area with a swimmingpool.

PREVIOUS ACTIONS

Initial action.

DISCUSSION & BACKGROUND

Location

The parcel is located at 9247 - 9257 Van Nuys Boulevard and 9246 Tobias Avenue, within theEarthquake Disaster Assistance Project Area for Portions of Council District 7 (with about a thirdof the site extending just outside the Project Area boundary) and is situated in the northernportion of the Panorama City community. The site is currently vacant, and is surrounded bymedium density apartment buildings with some low density commercial. The developeroriginally entered into a purchase agreement with the seller in September 2010 for acquisition ofthe site. Although the purchase agreement expires March 2011, there are multiple extensionoptions to permit the developer sufficient time to secure acquisition and construction financing.

Developer Entity

The developer and general partner, Meta Housing Corporation (Meta), was formed in 1993 andhas developed approximately 2,023 units of affordable and market rate rental housing forfamilies and seniors in Orange and Los Angeles Counties, including over 1,200 senior units.Meta has a strong reputation for building successful projects and has won numerous local andnational awards for the quality of its multifamily developments.

Meta is a for-profit company with a professional staff of fourteen that includes developers,accountants, and asset managers. Key staff include John Huskey, President; George Russo,Chief Financial Officer; and, Kasey Burke, Vice President for Development. During his career,Mr. Huskey has been involved in the financing, development, construction and management ofover 10,000 affordable and market-rate apartment units. Prior to forming Meta, he headedCalmark Companies, Urban Housing Systems, Inc. and ARV Senior Housing, Inc., all realestate development companies focusing on affordable senior and mixed-income housing.

Meta currently has approximately 495 units in four projects under construction (two of which areCRA/LA funded) and an additional six projects in predevelopment (four of which have CRA/LAcommitments). These include affordable senior and family communities as well as mixed-income developments. Meta employs nine project developers to manage this workload. TheCRA/LA has provided financial assistance to the developer on six previous projects, all of whichcurrently are in good standing.

The managing general partner is Western Community Housing, Inc. (WCH), a California-basednonprofit 501 (c)(3) corporation formed in 1999. Its mission is to provide affordable housing and

TOBIAS TERRACE LOAN, ...,REEMENT AUTHORIZATION PAGE 3

social service programs to low- and moderate-income families and seniors residing in affordablerental housing communities. Initially, WCH's primary focus was to develop and operate a socialservice program for low-income seniors. Beginning in 2002, WCH broadened its activities toinclude the development and acquisition of ownership interests in affordable housingcommunities. As of December 2010, WCH holds an ownership interest in 74 affordable housingcommunities comprising over 6,800 units, including nineteen with Meta Housing Corporation orits affiliates.

WCH employs a professional staff of six in the areas of asset management, finance andresident services. Key staff include Graham Espley-Jones, President and CEO (9 years withWCH); Sandra Gibbons, Director of Finance and Tax Credits (7 years); and, Leanne Truofreh,Vice President, Corporate Secretary and Treasurer (5 years). Mr. Espley-Jones' experienceincludes serving as CFO with Kaufman & Broad and ARV Assisted Living, Inc and its affiliates,which developed or acquired approximately 7,000 assisted living units. Ms. Gibbons previouslyserved as the controller overseeing tax credit partnerships for both ARV Assisted Living andSimpson Housing Solutions, LLC. Ms. Truofreh has worked in the senior and affordable housingindustry for 15 years.

Description and Project Context

The proposed project is the new construction of a 56-unit large family affordable housingdevelopment on an approximately1.2 acre site. The four story building will house a mix of 38one-bedroom (610 sq. ft.) and 18 three-bedroom (1080 sq. ft.) units. Based on HCD rents, 18units will be restricted to Very Low Income while 37 units will be restricted to Low Incomehouseholds (the three bedroom manager's unit will be unrestricted). The ground level includesan outdoor interior courtyard (equivalent to approximately 5,165 square feet of open space), achildren'S play space, a barbecue area and a swimming pool surrounded by recreation,community and fitness rooms. Two community rooms will contain computer and multi-mediaequipment, a communal kitchen and library. A single pedestrian entry for tenants (utilizing avideo and intercom system) will open into a two-story lobby facing Van Nuys Boulevard while arear surface parking area with 76 parking spaces will be accessible through the adjacent localresidential street (Tupper Street).

The proposed affordable housing development is scheduled to commence construction after theBorrower successfully obtains commitments/awards from all funding sources. The othersources of funding are contingent upon the $2,500,000 CRA/LA commitment. If LAHD andTCAC commitments/awards are successfully obtained in the upcoming rounds, constructioncould commence by the end of 2011. The Developer will be allowed up to two attempts toobtain LAHD and TCAC commitments/awards. If unsuccessful, the CRA/LA will reconsiderwhether the funds should be reprogrammed for other uses.

Community Benefits

Development of the site will improve a long standing vacant site with an attractive and securehousing development incorporating sustainable design features with generous on-site openspace and amenities serving families and large families, providing relief in a high-density, high-crime area. All applicable CRA/LA Policies will be required of this Project, and are listed in theProject Summary Report (Attachment F).

This Project is consistent with the current and future "Projects and Programs" for AffordableHousing Development identified under the Pacoima/Panorama City Project Area's Five YearImplementation Plan. The improvements also support the CRA/LA Strategic Plan Goals 1.1.1,1.1.2 and 2.1.1.

TOBIAS TERRACE LOAk ,-\GREEMENT AUTHORIZATION ( PAGE 4

Variances from CRA/LA Policies and/or Guidelines

None

Findings

The State Redevelopment Law was amended in 1989 (Section 33334.14) to allow subordinationof income and use restrictions. The subordination is permitted when the CRA/LA makes afinding that an economically feasible alternative method of financing or refinancing withoutsubordination is not reasonably available and when the CRA/LA obtains written commitmentsreasonably designed to protect the CRA/LA's investment in the event of default.

Currently, CRA/LA staff is not aware of any domestic lending institutions willing to provideconventional financing without subordination of covenants, as well as CRA/LA loans. Such well-margined low-risk loans are still eligible for credit under the Community Reinvestment Act. Theconventional construction and permanent lender has indicated that subordination of theCRA/LA's covenants will be required. Staff recommends that the CRA/LA Board ofCommissioners make the finding that an economically feasible alternative method of financingor refinancing without subordination is not reasonably available, but only when the CRA/LAobtains written commitments reasonably deslqned to protect the CRA/LA's investment in theevent of default.

The Subordination Agreement will contain notice provisions such as one or more of thefollowing rights as set forth in the statute:

A. A right of the CRA/LA to cure a default on the loan.

B. A right of the CRA/LA to negotiate with the lender after notice of default from thelender.

C. An agreement that if prior to foreclosure of a loan, the CRA/LA takes title to theproperty and cures the default on the loan, the lender will not exercise any right it mayhave to accelerate the loan by reason of transfer of title to the CRA/LA.

D. Right of the CRA/LA to purchase property from the owner at any time after a defaulton the loan.

As Indicated in Attachment C, Affordable Housing Information, with the approval of thisproposal, the Earthquake Disaster Assistance Project Area for Portions of Council District 7 willhave provided sufficient affordable housing units to comply with the 15% Inclusionary Housingrequirement.

As indicated in Attachment C, Affordable Housing Information, with the approval of thisproposal, the Earthquake Disaster Assistance Project Area for Portions of Council District 7 willnot have spent funds from the Low and Moderate Income Housing Fund in proportion to need,in that the amount of LMIHF spent to date on Low and Moderate units will currently exceed theallowable percentage, but staff expects to come into compliance on or before the December 31,2014 statutory compliance deadline as a result of funding the development of one or moreproposed non-age restricted affordable housing projects that are currently under consideration.

Financial Analysis

The CRA/LA will enter into a Loan Agreement with the Borrower and provide a $2,500,000construction-permanent loan with a 55 year term at 3% simple interest accruing from the date of

TOBIAS TERRACE LOAN. JREEMENTAUTHORIZATION PAGE 5

the promissory note, payable based on the CRA/LA's pro rata share of residual receipts loans(see Attachment B, Standard Term Sheet). The CRA/LA loan will be secured by a Deed ofTrust that will be subordinate to the conventional and public sector lenders. The project'sfinancing consists of conventional construction and permanent bank loans, Los AngelesHousing funds (to be committed), DWP funds (to be committed), and equity from the syndicationof 9% tax credits (to be allocated) (see Attachment D, Sources and Uses). The project isexpected to close construction financing and start construction December 2011 with acompletion date of December 2012.

The total development cost of this affordable family project is $15,547,205 or approximately$278,000 per unit. These figures are inclusive of 76 parking spaces, approximately 5,165square feet of open space, LEED sustainability features, and other project amenities. TheCRA/LA per unit contribution to the Project for the 55 affordable units is $45,455, and the$2,500,000 CRA/LA loan as a percentage of the total development cost is 16%.

ECONOMIC IMPACT

The following table* describes the economic impacts estimated to be created by this project.

Estimated Construction Jobs Created 78Estimated Permanent Jobs Created 2.5

'The figures provided in the table about are for estimation purposes only; actual fiscal impact or job creation may behigher or lower than these estimates. Standardized formulas were used to generate these figures and are based onaccepted econometric practices and basic tax calculations taken from research performed by a variety of sources,including the Los Angeles Economic Roundtable, California Redevelopment Association, US Department of Housingand Urban Development, CRNLA, and the City and County of Los Angeles.

SOURCE OF FUNDS

Pacoima/Panorama City Redevelopment Project Area Tax Increment.

PROGRAM AND BUDGET IMPACT

This action will amend the Pacoima/Panorama City FY11 budget to transfer $2,000,000 of taxincrement from budget line item Economic Development (PC6990) to budget line itemAffordable Housing (PC1350) and $500,000 of tax increment from budget line item PublicImprovements (PC3000) to budget line item Affordable Housing (PC1350) for development ofTobias Terrace Apartments.

Following the approval of this project, $ of $__ will remain for the Affordable Housingcategory; $__ of $__ will remain for the Economic Development category; and $__ of$__ will remain for the Public Improvements category. Sufficient funds are available to makeany legally required State ERAF for FY11.

There is no impact on the City'SGeneral Fund as a result of this action.

ENVIRONMENTAL REVIEW

TOBIAS TERRACE LOAl ,~GREEMENT AUTHORIZATION(

PAGE 6

The proposed Project is exempt from provisions of the California Environmental Quality Act(CEQA) pursuant to Section 15195 (Affordable Housing Exemption) of the CRA/LA and StateCEQA Guidelines

AUTHORITY GRANTED TO CEO OR DESIGNEE

If the Loan Agreement is approved, the CRA/LA Chief Executive Officer or designee would beauthorized to take such actions as may be necessary to carry out the Agreement, including, butnot limited to, executing the CRA/LA Loan Documents and taking the following actions: (1)extending the Initial Term of the Loan by up to one additional year for a total not to exceed threeyears; (2) approving revisions to the Project Budget, so long as the changes do not increase theamount of the CRA/LA Loan or otherwise have a material adverse impact on the feasibility ofthe project; (3) negotiating and executing subordination agreements meeting the requirementsof California Health and Safety Code Section 33334.14, and making reasonable modifications tothe CRA/LA Loan Documents that may be requested by any Senior Lender or Tax Credit EquityInvestor, so long as such changes do not adversely affect the receipt of any material benefit byCRA/LA; (4) negotiating and executing Inter-creditor Agreements with and Estoppel Certificatesto other lenders, to the extent such Inter-creditor Agreements and Estoppel Certificates areconsistent with the terms of the Loan Agreement; and (5) approving certain non-materialrevisions to the terms of the Loan Agreement reasonably requested by a Permitted Lender orTax Credit Equity Investor.

PROJECT SUPPORT

Councilmember Richard Alarcon supports the recommended action.

Christine EsselChief Executive Officer

B~k~HOIliS

Chief Operating OfficerReal Estate and Economic Development

There is no conflict of interest known to me which exists with regard to any CRA/LA officer oremployee concerning this action.

ATTACHMENTS

Attachment A:Attachment B:Attachment C:Attachment D:Attachment E:Attachment F:

Location/Site MapProjectT erm SheetAffordable Housing InformationSources and UsesResolutionsProject Summary Report

TOBIAS TERRACE LOAN, JREEMENT AUTHORIZATION PAGE 7

ATTACHMENT ASITE MAP

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Pacoima I Panorama City CRAJIA

TOBIAS TERRACE APARTMENTS

CRAILA Project Area

ATTACHMENT BPROJECT TERM SHEET

Project Name: Tobias Terrace ApartmentsAddress 9247 - 9257 Van Nuys Boulevard and 9246 Tobias Avenue

Region and Project Area: East Valley Region; Earthquake Disaster Assistance Project Area for Portionsof Council District 7

Borrower (Legal Entity): Tobias Terrace Apartments, L.P.

Meta HousingDeveloper/Sponsor:Total # of Units / Affprdable

CRA/LA Loan Amount:

56 units/55 affordable units

$2,500,000Per Total UnitsPer Affordable Units

$ 44,643L45,455

Source of CRA/LA funding: LMIHF

For what is CRA/LA paying:Interest RatelTerm of Loan:

(check al/ applicable categories)

CRA/LA Lien Priority?Subordination of HousingCovenant?

Other Project Funding Sources:

Any special provisions/conditionsprecedent or subsequent?Examples: Allocation by TCACwithin how many rounds;commitment from other fundingsources (may include commitment ofequity factor); timing of CRA/LAfunding; non-disturbance agreementif it is a leasehold deal; any unique,

rooect-specific issue?

3_%; 55 earso Acquisitiono PredevelopmentiSof! Costso Relocationo X Construction/Hard Costs

3rd position; list all senior lenders: construction/perm lender; LAHDo X Yes oro No (if es, repare 33334.14 findin s)

o X TCAC-9%o CDLAC-4%o CDLAC/Bond Only (no tax credits)o X LAHDo MHSAo HCD: TOD __ ; INFILL __ ; MHP_; GHI_o City of Industryo AHPo Other:

Consistent with CRA/LA HousingPolicy? o

oX Yes

No (if No, brief justification for deviation): __

Project Term Sheet - Affordable Housing

C AITACHMENT C (AFFORDABLE HOUSING INFORMATION SHEET

Project Name: Tobias TerraceProject Address: 9248 Tobias & 9247--9257 Van Nuys Blvd., Los Angeles, CA 91402

Project Developer: Meta Housing Corporation, Inc.

eRA/LA Region: East ValleyProject Area: Pacoima Panorama City

Date of Pro Forma: 10·Dec-10

30% AMI 0 4 0 2 0 6 11%35% AMI 0 0 0 0 0 0 0%40% AMI 0 12 0 0 0 12 21%45% AMI 0 0 0 0 0 0 0%50% AMI 0 22 0 15 0 37 66%55% AMI 0 0 0 0 0 0 0%60% AMI 0 0 0 0 0 0 0%Manager's Unit 0 0 0 1 0 1 2%Unrestricted ----- 0 0 0 0 0 0 0%

TOTAL UNITS 0 3. 0 " 0 56 100%

TOTAL 100%The CRAILA goa! is to produce extremely low-income units whenever feasible. No project shall be funded in which the only assisted units are for moderate income households.

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TOBIAS TERRACE LOA( ,GREEMENT AUTHORIZATION ( PAGE 8

ATTACHMENT ERESOLUTIONS

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ATTACHMENT E

SUBORDINATION RESOLUTION

RESOLUTION NO. __

A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THECITY OF LOS ANGELES, CALIFORNIA REGARDING THE SUBORDINATIONOF ITS USE RESTRICTIONS AND DEED OF TRUST PURSUANT TO SECTION33334.14 OF THE COMMUNITY REDEVELOPMENT LAW FOR THE TOBIASTERRACE APARTMENTS PROJECT.

WHEREAS, the Community Redevelopment Agency of the City of Los Angeles, California("CRA/LA") proposes to enter into a Loan Agreement with Tobias Terrace Apartments, L.P., aCalifornia limited partnership to which the CRA/LA will provide financial assistance to theDeveloper for the purposes of developing housing that is affordable to very low-, low-, andmoderate-income persons or families or households (the "Rental Project"); and

WHEREAS, the Loan Agreement requires covenants to be recorded against the RentalProject restricting the use of the Project by placing certain limits on the maximum rents that canbe charged, and the maximum income that can be earned by tenants qualified to rent suchhousing (the "Income and Rent Restrictions"); and

WHEREAS, the Loan Agreement requires that a Deed of Trust be recorded against theRental Project as security for the CRA/LA Loan; and

WHEREAS, the Developer has obtained commitments of financing from a lenderconditioned upon the subordination of the CRA/LA's Income and Rent Restrictions and Deed ofTrust; and

WHEREAS, there has been presented to the CRA/LA evidence sufficient on which to findan economically feasible alternative method of financing the Rental Project on substantiallycomparable terms and conditions, but without subordination, is not reasonably available.

NOW, THEREFORE, THE COMMUNITY REDEVELOPMENT AGENCY OF THECITY OF LOS ANGELES, CALIFORNIA, AND THE CITY COUNCIL OF THECITY OF LOS ANGELES, CALIFORNIA DO HEREBY RESOLVE AS FOLLOWS:

1. The CRA/LA hereby finds that an economically feasible alternative method of financing theRental Project on substantially comparable terms and conditions, but withoutsubordination, is not reasonably available.

2. The CRA/LA hereby authorizes the Chief Executive Officer ("CEO") of the CRA/LA, ordesignee, to take such actions as may be necessary in order to subordinate the CRA/LA's

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Income and Rent Restrictions and Deed of Trust to the liens of the lenders providingfinancing for the Rental Project, but only upon receipt by the CEO or designee of writtencommitments from such lenders, reasonably designated to protect the CRNLA'sinvestment in the event of default, including but not limited to the following:

a) A right of the CRNLA to cure a default on the loan;

b) A right of the CRNLA to negotiate with the lender after the notice of default from thelender;

c) An agreement that if prior to foreclosure of the loan, the CRNLA takes title to theproperty and cures the default on the loan, the lender will not exercise any right it mayhave to accelerate the loan by reason of transfer of title to the CRNLA;

d) A right of the CRNLA to purchase the property from the Developer at any time afterdefault on the loan.

ADOPTED: -

ATTACHMENT E

FINDING OF BENEFIT RESOLUTION

RESOLUTION NO. __

A JOINT RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OFTHE CITY OF LOS ANGELES, CALIFORNIA AND OF THE CITY COUNCIL OFTHE CITY OF LOS ANGELES GRANTING THE EXPENDITURE OF UP TO$2,500,000 OF LOW AND MODERATE HOUSING TRUST FUNDS FROM THEEARTHQUAKE DISASTER ASSISTANCE PROJECT FOR PORTIONS OFCOUNCIL DISTRICT 7 PROJECT AREA OUTSIDE OF SAID PROJECT AREAAND FINDING THAT SAID EXPENDITURE BENEFITS THE PROJECT AREA.

WHEREAS, the CRA/LA has established the Earthquake Disaster Assistance Project forPortions of Council District 7 Project Area ("Project Area"); and

WHEREAS, pursuant to California Health and Safety Code Section 33334.3, the CRA/LAhas established a Low and Moderate Income Housing Trust for the Project Area into which notless than 20% of all taxes allocated to Agency pursuant to California Health and Safety CodeSection 33670 must be expended for the purposes of increasing, improving and preserving thecommunity's supply of low- and moderate-income housing available at affordable housing costs("Housing Trust Funds");

WHEREAS, the expenditure of Housing Trust Funds outside the Project Area requires aresolution of the CRA/LA and the City Council finding that the expenditure of Housing Trust Fundsoutside of a project area is of benefit to the project area; and

WHEREAS, the CRA/LA desires to provide for rental housing restricted to low andmoderate income persons during the existence of the Project Area Implementation.

NOW, THEREFORE, THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF LOSANGELES, CALIFORNIA, AND THE CITY COUNCIL OF THE CITY OF LOS ANGELES,CALIFORNIA DO HEREBY RESOLVE AND FIND AS FOLLOWS:

1. The City Council of the City of Los Angeles, and the CRA/LA do hereby appropriate the sumof $2,500,000 into Project Area's Low and Moderate Income Housing Fund to be paid intoLow and Moderate Income Housing Fund from property taxes allocated to the CRA/LApursuant to California Health and Safety Code Section 33670 and the Earthquake DisasterAssistance Project for the Project Area's Redevelopment Plan.

2. Such funds shall be held in the Low and Moderate Income Housing Fund until expended bythe CRA/LA to provide financial assistance of not more than $2,500,000, toward thedevelopment of a 56 unit affordable family project located at 9247-9257 Van NuysBoulevard and 9246 Tobias Avenue in Panorama City (collectively "Housing") a portion of

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which is located in the Project Area and the remaining contiguous portion is just outside theProject Area boundary in Council District 7.

Any funds herein appropriated which have been so used and thereafter returned to theEarthquake Disaster Assistance Project for the Project Area's Low and Moderate IncomeHousing Fund shall continue to be appropriated for similar use in such similar projects,which may hereafter be approved by the CRNLA.

3. The City Council of the City of Los Angeles and the CRNLA find that the provision andimprovement of affordable housing, as provided by Health and Safety Code Section33334.2, outside the Project Area is of direct benefit to the Project Area in assistinq theaccomplishment of the Project Area objectives. Moreover, housing is itself a fundamentalpurpose of the Community Redevelopment Law and an inadequate statewide supply ofdecent, safe, and sanitary housing affordable to persons and families of low or moderateincome, threatens the accomplishment of the primary purposes of the CommunityRedevelopment Law, including job creation, attracting new private investments, and creatingphysical, economic, social, and environmental conditions to remove and prevent therecurrence of blight.

4. By adopting this Resolution, the CRNLA hereby finds that the Housing as describedhereinabove in Section 2 of this Resolution is of benefit to the Project Area in conformitywith the legal requirements of Health and Safety Code Sections 33334.2, 33334.6 and33413. The payment of funds into the Project Area Low and Moderate Income HousingFund as required by this Resolution pursuant to said Section 33334.2 and 33334.6 shallconstitute an obligation of indebtedness of the CRNLA for the Project Area to the extent ofproviding for construction and permanent financing of not more than $2,500,000 to be usedtoward the development of Housing.

5. The CRNLA's Chief Executive Officer or designee is hereby authorized to retain or pay allinterest income earned on this appropriation into the Project Area and Moderate IncomeHousing Fund. The Chief Executive Officer or designee is further authorized to pay all otherincome, loan repayments, sale proceeds or revenues received by the CRNLA arising fromthe expenditure of the funds appropriated by this Resolution, into the Project Area's Low andModerate Income Housing Fund.

ADOPTED: _

I hereby certify that the foregoing Resolution was adopted by the City Council and the City of LosAngeles, California, at its regular meeting held , 20_.

IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City ofLos Angeles on this __ day of , 20_.

TOBIAS TERRACE LOAN jREEMENT AUTHORIZATION PAGE 9

ATTACHMENT FPROJECT SUMMARY REPORT

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eRA/LABUIl.DING COMMUNITIES

( (PROJECT SUMMARY REPORT

EAST VALLEY REGION

Maps creatod by CRAlLA GIS Team

Project !D: 100629Objective Code(s): PC1350

PACOIMA/PANORAMA CITY

TOBIAS TeRRACE APARTMENTS

Board Item Number:Board Date: 41712011

Project LocationPrimary Address:9247-9257 Van Nuys Blvd, Los Angeles, CA91402Secondary Address:9246 Tobias Terrace, Los Angeles, CA 91402Location Description:Also, APNs: 2651009003 & 2651009004

Proposed eRA/LA ActionN/A

Additional InformationNfA

Elected Officials• Council District 7, Richard Alarcon• County Supervisor District 3, Zev

Yaroslavsky• State Senate District 20, Alex Padilla• Congress District 28, Howard L Berman• Assembly District 39, Felipe Fuentes

Sustainable Elements• Diversion of Construction Waste• Energy Reductions beyond Title 24• Materials Conservation and Reuse• Stormwater Management• Water Efficient Landscaping

LEED ® Attainment Level, Type

Silver

Community Benefits• Construction Local Hiring• Creation of Affordable Housing• Elimination of Blight• Enhance Livability• Improve Image of Area• Increase Supply of Housing Stock• Living wage Jobs• Neighborhood Stabilization• New Affordable Covenants• Prevailing Wage Jobs

Strategic Plan Goals Met• 1.1.1 - Create 40,000 construction career-path

jobs.• 2.1.1 - Complete construction of at least 5,500

Project Description units of affordable housing in RedevelopmentThis project will entail new construction of a 56- Project areas.units, consisting of 1 on-site manager's unit, 38 eRA/LA P I"" A I" done-bedroom units and 17 three-bedroom cncies pp Ieapartment units. Amenities wi!! include a • Construction Jobs L~~ Hiring Programswimming pool, community room, library, plaza • Contractor Responsibilityand yard. • Equal Benefits

• Living wage• Prevailing WageProject Type

Residential

Construction Category: New Construction

Type of Housing; Rental Housing

Project Features:• Affordable Housing• Apartments• Community Room• Gardening 1 Landscaping• Playground• Pool• Recreation Room

Developer I Participant(s)

Developer. Meta Housing Corporation

Legal Owner/Borrower: Tobias TerraceApartments, LP.

Developer Partner(s): Western CommunityHousing

eRA/LA Project Staff• Margarita De Bscontrias, Regional

Administrator• Oscar Noveto, Assistant Project Manager• Ellen Alderman Comis, Sr Housing Finance

Officer• Duran Villegas, project Manager

Project ActivitiesCompleted Activities:

• Deal Points Meeting, 02/08/11

Scheduled Activities:• Loan Committee, 03/16/11• Agenda Review, 03/22111• Board Action, 04107/11• Construction Start, 12101/11

Agreement Type(s)• Loan Agreement

Terms of eRA/LA Jnvestment:

eRA/LA policies Not AppliedNot Applicable to the Project

• Public Art Polley• Construction Careers & Project Stabilization• Labor Peace Agreement• Child Care

Data Last Updated; 2124/2011Report Generated: 2/24/2Q11