Report to Mayor and City Council
Tuesday, December 04, 2018
Consent
SUBJECT:
Title
CONSIDER APPROVING RESOLUTION 18-165 AUTHORIZING THE HOUSING AUTHORITY OF THE COUNTY OF LOS ANGELES TO ISSUE BONDS IN AN AMOUNT NOT TO EXCEED $8,000,000 AND MAKE OR ACQUIRE MORTGAGE LOAN(S) IN CONNECTION WITH A RESIDENTIAL DEVELOPMENT IN THE CITY OF CARSON, THE CARSON TERRACE SENIOR HOUSING PROJECT (CITY COUNCIL)
Body
I. SUMMARY
This resolution authorizes the Housing Authority of Los Angeles County ("HACoLA") to issue tax exempt bonds toward the efforts to refinance and rehabilitate the Carson Terrace Apartments, a 63-unit senior apartment building providing housing for tenants with extremely low incomes, since the property is in the City's jurisdiction, Exhibit No. 1.
At the December 18, 2017 meeting of the City Council Housing Subcommittee, the committee discussed a proposal to refinance and rehabilitate the Project. The property is currently owned and managed by the Los Angeles Housing Partnership (LAHP). The proposed transaction will consist of a sale to a new partnership headed by The Richman Group (TRG), and the refinancing and rehabilitation of the building to make the necessary repairs and energy efficiency upgrades. TRG, as the new managing partner, and LAHP as the administrative general partner, will provide new property management and financial stability to benefit the current residents and community.
Based on the Committee feedback, staff had recommended that some assistance toward the rehabilitation, in the amount of $385,000, be funded out of the City's 2018-19 CDBG allocation. Such request was included in the July 17, 2018 City Council staff report discussing the allocation of CDBG funds. City Council did not approve the use of CDBG funds for the project, however, and instructed staff to work with TRG on other funding opportunities, including the possibility of the same amount being funded from the Carson Housing Authority rather than CDBG.
Since the July ...
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