[00:00:02]
GOOD AFTERNOON.I WOULD LIKE TO CALL THE, TO ORDER THE LONG INVESTMENT COMPANY MEETING FOR WEDNESDAY, AUGUST 21ST.
VICE DIRECTOR CHAMBERS PRESENT.
UH, MAY I GET A VOLUNTEER TO DO THE FLAG? RIGHT HAND, HEART AND TO THE FLAG.
THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR RICH STANDS.
ONE NATION UNDER GOD, INDIVISIBLE WITH LIBERTY.
SHOULD RECEIVED AND FILE A PRESIDENT'S REPORT AND GET A MOTIONS TO HEAR THIS ITEM.
IT HAS BEEN MOVED BY DIRECTOR CHAMBERS, SECOND DEFENSE.
UH, SO MEGAN, AS THE PRESIDENT'S REPORT, AND THEN I JUST WANTED TO TELL YOU UP FRONT, I LEAVE EARLY TODAY, SO IT'S SOMETHING THAT YOU SAID OR DID, BUT, UH, THE APPROPRIATE TIME, EXCUSE MYSELF AND, UH, YOU'RE IN GOOD HANDS.
YEAH, SO, UM, YOU, YOU SHOULD HAVE GOTTEN THIS CALENDAR WITH YOUR STAFF REPORTS AND ALL OF THAT.
UM, BUT I WANTED TO POINT OUT THAT I, WE HAVE SOME ESPECIALLY IMPORTANT EVENTS COMING UP, THE HOUSING POLICY FORMS, WHICH WE ARE HOSTING IN PARTNERSHIP WITH PLANNING.
IT'S A REALLY BIG DEAL FOR US.
UM, FOR US, THE HEADLINER IS INCLUSIONARY HOUSING, UM, UPSTATE TO THE POLICY.
AND SO IT WOULD BE GREAT IF YOU COULD COME TO AT LEAST ONE OF THOSE AND SEE WHAT COMMUNITY'S SAYING ABOUT IT AND, UM, BE IN THE AUDIENCE TO BE AN ACTIVIST FOR MORE AFFORDABLE HOUSING UNITS AND ALL OF THAT.
UM, AND THEN THE OTHER THING IS WE HAVE THE THIRD OF FOUR GRAND OPENINGS, HERITAGE GARDENS ON SEPTEMBER 18TH.
SO MARKER CALENDARS, IF YOU CAN HAVE, IT'S ALWAYS JUST SO NICE TO HAVE A LOT OF SUPPORT AND FOR YOU TO SEE IN REAL LIFE ALL THE THINGS THAT, THAT WE TALK ABOUT IN HERE WORK SO HARD TOWARDS.
UM, THE OTHER THING, UM, YOU'LL BE GETTING A RECEIPT AND FILE REPORT COMING UP HERE SOON, BUT THERE'S GOING TO START BEING HOPEFULLY IN SEPTEMBER SOME PRESS GOING OUT ABOUT A PILOT, A DU PROGRAM THAT WE'LL BE LAUNCHING, UM, THIS FALL AND THEN REALLY INITIATING THE BEGINNING OF 2025.
UM, AND SO, UH, AGAIN, WE'LL HAVE A RECEIVING FILE SO YOU CAN HEAR MORE ABOUT THAT.
BUT ESSENTIALLY THE MAYOR GAVE US $200,000 TO SPUR THE PILOT AND DO RESEARCH AND HELP WITH PROJECT MANAGEMENT.
AND WE ARE GOING TO BE PROVIDING 10 LOANS TO HOMEOWNERS ANYWHERE IN THE CITY TO BUILD, UM, UP TO $250,000 TO BUILD ADUS ON THEIR PROPERTY.
IN EXCHANGE, UH, WE WILL PLACE A COVENANT FOR FIVE TO SEVEN YEARS, UM, ON THE HOME FOR THEM, THE A DU FOR THEM TO RENT TO A A LOW INCOME RENTER TENANT.
UM, THERE WILL BE A REALLY LARGE PREFERENCE FOR THOSE WILLING TO TAKE A PROJECT BASED SECTION EIGHT, UH, VOUCHER HOLDER, AND THOSE WILL GET THE FIVE YEAR MINIMUM COVENANT.
AND THEN IF, IF THEIR FUNDS REMAINING, WE'LL MOVE ON TO THOSE WHO JUST WANT TO, UM, RENT TO A LOWER INCOME TENANT AND THAT WOULD BE A SEVEN YEAR COVENANT.
UM, THEY'RE SUPER LOW INTEREST AND I'M PROBABLY TELLING TOO MANY DETAILS, SO I'LL LEAVE THE REST FOR THE FILE.
UM, WE WILL TAKE A, A PUBLIC COMMENT THAT
ANY DISCUSSION ON THIS QUESTION? SOUNDS GOOD.
UM, MADAM SECRETARY, CAN PLEASE CALL VICE JUDGE
DIRECTOR RAMIREZ? YES, THIS IS GEORGIA SIMON.
MOTION MAD SECRETARY WILL PLEASE THE NEXT ITEM.
RECOMMENDATION TO APPROVE THE MINUTES FOR THE LONG
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BEACH COMMUNITY INVESTMENT COMPANY SPECIAL MEETING OF WEDNESDAY, JUNE 5TH, 2024.CAN I HAVE A MOTION? UH, MOTION.
IT HAS BEEN MOVED BY DIRECTOR CHAMBER.
IS THERE ANY DISCUSSION? UM, IS THERE ANY DISCUSSION ON THE, ON THE MINUTES? IS THERE ANY PUBLIC COMMENT ON THIS TIME? DOES ANYONE TO SPEAK PLEASE STAND? NO.
THANK YOU DEAR DIRECTOR RAMIREZ? YES.
I'M MADAM SECRETARY, CAN YOU PLEASE READ THE NEXT ITEM? THANK YOU.
THE NEXT ITEM RECOMMENDATION TO APPROVE A $550,000 INCREASE TO THE HOME LOAN TO CENTURY AFFORDABLE DEVELOPMENT FEE FOR THE DEVELOPMENT OF 90 VETERAN AFFORDABLE HOUSING UNITS LOCATED AT 2121 WEST WILLIAMS STREET AUTHORIZE THE PRESIDENT TO NEGOTIATE AN AMENDMENT.
THE AFFORDABLE HOUSING LOAN AGREEMENT WAS SENTRY AND AUTHORIZE THE PRESIDENT OR DESIGNATE TO NEGOTIATE AND EXECUTE ANY AND ALL DOCUMENTS NECESSARY RELATED TO THE LOAN AMENDMENTS.
SYLVIA MEDINA HOUSING, UH, DEVELOPMENT OFFICER WILL BE GIVING THE STAFF REPORT AND ALL OF THEM TODAY ACTUALLY, SHE'S BEEN HOLDING DOWN THE COURT WHILE A BUNCH OF HER STAFF IS TAKING LOVELY VACATION.
UM, MAY WE GET A MOTION TO HEAR THIS ITEM? OKAY, I SECOND AND WE HAVE THE REPORT.
BOARD MEMBERS, UM, BEFORE YOU IS THE APPROVAL OF AN AMENDMENT TO THE LOAN AGREEMENT WITH CENTURY HOUSING CENTURY AFFORDABLE DEVELOPMENT.
AIM FOR THE DEVELOPMENT OF 2121 WEST WILLIAM STREET.
SO ON FEBRUARY 16TH, 2022, THE L-V-C-I-C BOARD APPROVED A LOAN OF 4 MILLION IN HOME FUNDS TO CENTURY FOR THE DEVELOPMENT OF A 90 UNIT VETERAN AFFORDABLE RENTAL HOUSING PROJECT LOCATED AT 2121 WEST WILLIAM STREET CONSTRUCTION WAS RECENTLY COMPLETED AND THE PROJECT IS IN THE PROCESS OF CONVERTING FROM CONSTRUCTION PHASE FINANCING TO PERMANENT FINANCING.
THE PROJECT IS THE SIXTH PHASE WITHIN THE CENTURY VILLAGES OF CABRILLO CAMPUS, WHICH IS KNOWN AS THE CODE.
THIS PROJECT IS KNOWN AS THE CODE.
THE 90 UNIT APARTMENT BUILDING INCLUDES ONE, TWO BEDROOM MANAGERS UNIT AND 89 STUDIO UNIT SERVING VETERANS AND VETERANS EXPERIENCING HOMELESSNESS.
SO WITHIN THE CODE, UH, IT INCLUDES A VISITOR LOBBY, CLASSROOM AND COMPUTER ROOM, BICYCLE STORAGE, AND 19,500 SQUARE FEET COMMON SPACE.
AND RATHER THAN SERVICES COORDINATION SPACE IN THE SCREEN, YOU WILL SEE THE RENDERING FOR THE CO PROJECT WITHIN CENTURY VILLAGE AS A KOREA.
SO THE CIRCUMSTANCES CONTRIBUTING TO A 1.2 MILLION SHORT PRODUCT THE PROJECT IS EXPERIENCING IS DUE TO A LARGE NUMBER OF RAIN DAYS DELAY IN 2023, WHICH RESULTED IN AN INCREASE IN CONSTRUCTION LOAN INTEREST AND CONSTRUCTION MANAGEMENT COSTS.
THE PROJECT INCURRED UNFORESEEN ELECTRIC AND WATER UTILITY MITIGATION COSTS DUE TO UNUSUALLY HIGH WATER TABLE RAMP HAS INCREASED IN INSURANCE PREMIUMS OVER THE LAST THREE YEARS.
AND THEN UNEXPECTED ADDITIONAL SITE WORK INCLUDING GRADING.
METRO TRANSPORT CENTURY HAS BEEN WORKING WITH THEIR SENIOR LENDER TO INCREASE THE AMOUNT OF THEIR PERMANENT LOAN.
HOWEVER, TO DECREASE SOME OF THE ADDITIONAL COSTS, CENTURY REQUESTED A 550,000 INCREASE TO THEIR CURRENT HOME LOAN FROM JOB IN CIC.
SO THE RECOMMENDATION BEFORE YOU IS APPROVE A 550,000 INCREASE TO THE HOME LOAN TO CENTURY FOR THE DEVELOPMENT OF THE 90 UNIT VETERAN AFFORDABLE HOUSING PROJECT.
AUTHORIZE A PRESIDENT TO NEGOTIATE AN AMENDMENT TO THE AFFORDABLE HOUSING LOAN AGREEMENT WITH CENTURY AND TO AUTHORIZE A PRESIDENT TO NEGOTIATE AND EXECUTE ANY AND ALL DOCUMENTS NECESSARY RELATED TO THE AMENDMENT.
UM, THAT CONCLUDES MY PRESENTATION.
UM, I'M HERE TO ANSWER ANY QUESTIONS AND SO
PUBLIC COMMENTS ON THIS ITEM? ANYONE WOULD LIKE TO SPEAK? LEFT? OKAY.
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THERE ANY DISCUSSION ON THIS ITEM? ANY QUESTIONS FROM THE BOARD? DID YOU RUN INTO STRUCTURAL ISSUES? NOT SO MUCH STRUCTURAL ISSUES AS MUCH AS THE WATER TABLE ISSUES.WE HAVE A VERY HIGH WATER TABLE FASHION.
A LOT OF ADDITIONAL WORK THAT HAD TO DO TO PREPARE THE SOIL.
UM, FOR THE EVENTUAL STRUCTURAL SLAB.
DID YOU USE A MATH LAB? WE ENDED UP USING NOS AND MATS LAB.
WE ENDED UP USING A, A SYSTEM OF, UH, PILES.
WE ACTUALLY HAD TO DRILL PILES INTO THE GROUND AND THERE WERE ABOUT FOUR, FOUR OR HUNDRED 50 ON THEM.
HAD TO GO, HAD TO DRILL TO THE GROUND IN ORDER TO SUPPORT THE SIDE.
AND WITH THE RAINS, IT JUST TOOK BUNCH LONGER.
WHAT THE PROJECT WAS RECENTLY COMPLETED, WE ACTUALLY JUST STARTED NEW UP AND WE'VE GOT ABOUT EIGHT PEOPLE MOVED IN AND WE'RE CONTINUE TO, YEAH, WE'LL CONTINUE TO, TO LEASE UP QUICKLY BY THE END OF OCTOBER WE'LL HAVE ALL 90,000.
ANY FURTHER QUESTIONS? WHAT'S, WHAT'S THERE AN ANALYSIS DONE HERE BY, UH,
AND BECAUSE WITH CONTINUALLY RISING, I MEAN, IT'S ALWAYS A STORY, BUT REALLY DRAMATICALLY LATELY, UM, JUST CONSTRUCTION COST CONTINUALLY GOING UP.
IT'S JUST EATING AWAY AT THE CONTINGENCIES THAT THESE PROJECTS HAVE.
AND THEN THAT ALONG WITH THE INSURANCE ISSUE, UM, WE'RE JUST SEEING IT ACROSS THE BOARD.
AND SO KA BASICALLY MAKES IT A BUSINESS DECISION FOR US.
UM, AND WHAT WE DON'T WANT IS TO PUT THE PROJECT IN RISK OF BEING UNSTABLE THE VERY BEGINNING.
YOU PROBABLY NOTICE WHERE WE COME BACK TO ADJUST THE FUNDING BECAUSE WE'RE GOING THROUGH THAT PROCESS THAT I TALKED ABOUT WHERE WE GO FROM THE CONSTRUCTION FINANCING TO THE CONVERSION OF PERMANENT.
SO WHERE WE'VE HAD AN EXTREME OF 'EM, WE HOPE IT WON'T HAPPEN NEXT ROUND, BUT WE'LL SEE.
HAS THIS INCREASE, IS THIS COMING FROM, UH, WHAT, WHAT FISCAL YEAR, WHAT BUDGET OR WHERE IS MONEY COMING FROM? IT IS COMING FROM THE MENT FUND THAT WE GET EVERY YEAR.
SO I THINK WE'RE ALREADY CAUGHT UP.
I THINK FOR HOME FUNDS, WE ARE, UM, UTILIZING 2022.
WE'RE ON A TITLE, SO EVERY YEAR WE DO GET HOME FUNDS.
ANY FURTHER QUESTIONS? ONE MORE QUESTION IN THE EVENT, UM, FOR FUTURE PROJECTS FOR SOIL AND GEOTECHNICAL, WE'LL MAKE SURE THAT BOTH, BECAUSE I THINK THAT REPORT PROBABLY WOULD'VE KICKED UP WHERE THAT WATER TABLE WAS.
I KNOW THERE'S A LOT OF RAIN, SO IT PROBABLY DIDN'T HELP ACTUALLY.
SO ALL THE PROJECTS ARE MOVING FORWARD, MAKE SURE THEY ADDRESS THAT SEEMS TO BE A COMMON ISSUE, UH, FOR A LOT OF PROJECTS, ESPECIALLY RIGHT NOW HERE IN THIS AREA.
SO, I MEAN, WE DO OUR BEST, BUT I WANT TO KIND OF TALK THROUGH HOW OUR LOANS ARE FUNDED, RIGHT? SO, UM, WE FIRST SEE A PROJECT BEFORE IT'S EVEN FULLY DESIGNED, UH, AND THEY MAY RESPOND TO, UH, NOPA AND, UM, WE INTO SOME KIND OF EXCLUSIVE ARRANGEMENT WITH THEM, BUT DON'T ACTUALLY
SO THEN, UM, WHAT HAPPENS IS, UM, THEY DO DESIGN THE PROJECT, UM, BUT WE'VE ALREADY ENTERED INTO THE, THE LOAN.
UM, WE CLOSE ON THAT FINANCING THE DAY THEY OBTAIN THE BUILDING PERMIT.
SO THERE IS GEOTECHNICAL INFORMATION AS BEST WE UNDERSTAND IT AT THAT POINT.
UH, YOU KNOW, WE DON'T, BUT IT'S BASED ON A GEOTECH REPORT.
YOU KNOW, WE DON'T MAKE THEM GO OUT AND DO A HUNDRED THOUSAND DOLLARS WORTH OF BORING AND SAMPLING BECAUSE YOU HOPE THE GEOTECH REPORT IS CORRECT, BUT IT IS NOT ALWAYS CORRECT.
AND THEN YOU HOPE THAT THAT'S NOT THE YEAR THAT IT RAINS OUT OF CONTROL ON THE WATER TABLE RISES.
AND THIS ALL BECOMES, YOU KNOW, SO WE CAN DO MORE.
BUT WHEN WE FIRST ENTER INTO THE ARRANGEMENT WITH THE DEVELOPER, THERE'S NO GEOTECH REPORT.
IT'S JUST LIKE CONCEPTUAL DESIGN FROM THAT ARCHITECT.
SO THERE IS ALWAYS RISK, ALTHOUGH WE DON'T HAVE TO SAY YES TO THESE REQUESTS, WE'RE HERE BECAUSE WE THINK SAYING YES IN THIS CASE IS CORRECT.
ALSO BECAUSE OTHER FUNDERS ARE PARTICIPATING, THE COST OVER RUNS ARE, YOU KNOW, IN EXCESS OF A MILLION DOLLAR, BUT THE ASK FROM C FIVE 50,000.
SO WE'LL DO OUR BEST, BUT WE DEFINITELY CAN'T GUARANTEE TO YOU THAT THERE WON'T BE OTHER, YOU KNOW, OVERRUNS.
AND IN THIS CASE, I THINK THE INSURANCE IS ABOUT A HUNDRED THOUSAND OR 200,000, BUT THAT THEN GETS THAT PROCESS CAPITALIZED.
IT'S NOT REALLY JUST HUNDRED THOUSAND.
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FOR THREE YEARS OF PROJECTS THAT THOSE COSTS ARE MISCALCULATED AND WE'RE GONNA HAVE TO CONTINUE TO ADDRESS THAT.HAS A MEETING COMING UP WITH THE CALIFORNIA, UM, UH, INSURANCE COMMISSIONER.
I DON'T KNOW THAT THEY'RE GONNA LIKE ACTUALLY SOLVE ALL OF THESE PROBLEMS BASED ON OUR MEETING, BUT WE ARE, UM, TALKING TO THEM JUST ABOUT, YOU KNOW, KIND OF THE DOWNSTREAM EFFECTS OF SOMETHING WE DON'T THINK ABOUT, UM, PROPERTY INSURANCE IS HAVING BECAUSE YES, WE HAVE THE MONEY.
YES, IT'S FROM PROGRAM YEAR 22, BUT THAT IS MONEY THAT'S NOW GOING TO THIS PROJECT AND NOT GOING TO A FUTURE PROJECT, RIGHT? LIKE IT ALL ADDS UP.
UM, SO THAT'S, THAT'S JUST POSITION.
SO, AND OSCAR'S HERE, I'M SURE HE'S LOVE TO TAKE HIS CHANCE TO, UM, VENT ABOUT THIS, BUT I MEAN WE, WE, WE GRIND DEVELOPERS ON THAT COMMITTING TO $1 MORE THAN WE HAVE TO, TO, TO FILL THE GAP.
IT'S ACTUALLY A REALLY LENGTHY PROCESS THAT WE GO THROUGH FINANCIAL ANALYSIS AND I'M SURE THEY WOULD LOVE FOR US TO GIVE AN UP TO AMOUNT AND HAVE SOME MORE CONTINGENCY, BUT AS YOU PROBABLY HEARD ME SAY, EVERY TIME WE AWARD A CERTAIN AMOUNT, THE DEVELOPER'S WILLING TO SPEND THAT AMOUNT.
UM, AND SO HENCE THAT LEADS JUST TO COMING BACK TO YOU A BIT MORE, BUT, UM, YEAH, IT IT KEEPS US TIGHTER IN THE LONG RUN.
AND LIKE, I THINK CHRISTOPHER MENTIONED, BUT WE, OUR COST OVER RUNS ARE IN EXCESS OF, SO WE MADE THE EFFORT TO, YOU KNOW, SIZE THIS, UH, AS REQUEST AS REASONABLY AS WE COULD WE DID TO OUR PERMANENT LENDER FOR AN INCREASE IN PERMANENT LOAN.
WE ARE, YOU KNOW, UM, DEFERRING IN DEFEATED.
UM, MADAM SECRETARY, IF YOU CAN, UH, UH, PLEASE CALL
DIRECTOR CHAMBERS? YES, THANK YOU.
IF YOU PLEASE READ THE NEXT ITEM, VICE CHAIR, A RECOMMENDATION TO APPROVING HOME LOAN IN THE AMOUNT OF $2 MILLION TO JAMBOREE HOUSING CORPORATION FOR THE DEVELOPMENT OF 1 0 1 EAST PACIFIC NORTH HIGHWAY.
AUTHORIZE THE PRESIDENT TO NEGOTIATE THE AFFORDABLE HOUSING LOAN AGREEMENT WITH JAMBOREE AND AUTHORIZE THE PRESIDENT OR DESIGNATE TO NEGOTIATE AND EXECUTE ANY AND ALL DOCUMENTS NECESSARY RELATED TO THE LOAN GRIEVANCE.
IF WE CAN HAVE A PRESENTATION PLEASE.
UM, BEFORE THE PRESENTATION, I'M SORRY, UH, IF WE CAN HAVE A MOTION TO HEAR THE ITEM.
IT HAS BEEN MOVED BY DIRECTOR RAMIREZ, OUR DIRECTOR OF CHAMBERS.
SO THIS RECOMMENDATION BEFORE YOU IS TO APPROVE AN ADDITIONAL LOAN TO JANUARY HOUSING CORPORATION FOR THE DEVELOPMENT OF 1 0 1 EAST PACIFIC COAST HIGHWAY ON JANUARY 18TH, 2023.
THE L-B-C-I-C APPROVED A LOAN TO JAMBOREE HOUSING IN THE AMOUNT OF 2.1 MILLION USING COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS.
THE CDG FUNDS FOR THE ACQUISITION OF 1 0 1 EAST PACIFIC COAST HIGHWAY JAM, THEN ACQUIRED THE SITE IN APRIL OF 2023.
RE HAS NOW SECURED PLANNING ENTITLEMENTS AND PARTIAL FUNDING FOR THE DEVELOPMENTS OF A 52 PERMANENT SUPPORTIVE HOUSING PROJECT SERVING HOUSEHOLDS WHO HAVE EXPERIENCED HOMELESSNESS OR ARE OR ARE AT RISK OF BECOMING HOMELESS.
THE 1 0 1, WHICH IS WHAT WE REFER TO HERE, UM, WILL INCLUDE 24 1 BEDROOM UNITS FOR HOUSEHOLDS EARNING UP TO 50% OF THE AREA MEDIAN INCOME, 27 1 BEDROOM UNITS FOR HOUSEHOLDS EARNING UP TO 30% OF THE MERIT OF THE A MI.
THERE WILL ALSO BE A TWO BEDROOM MANAGERS UNIT ON SITE AND COMMUNITY AND COMPUTER ROOMS AND THE BARBECUE AREA FOR ITS RESIDENTS.
IN THE SCREEN, YOU WILL SEE THE RENDERING FOR THE, UM, PROJECT.
THE PROJECT HAS BEEN AWARDED 13.5 MILLION IN NATIONAL HOUSING TRUST FUNDS FROM THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT.
IT HAS ALSO BEEN, UM, 51 PROJECT BASED VOUCHERS HAVE ALSO BEEN SUBMITTED FROM THE HOUSING AUTHORITY OF THE CITY OF LONG BEACH.
AND APPLICATION FOR FEDERAL TAX CREDITS HAS BEEN SUBMITTED.
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FORTHE RECOMMENDATION BEFORE YOU IS TO APPROVE A HOME LOAN OF 2 MILLION FOR THE DEVELOPMENT OF 1 0 1 EAST PACIFIC COAST HIGHWAY.
AUTHORIZE THE PRESIDENT TO NEGOTIATE THE AFFORDABLE HOUSING LOAN AGREEMENT WITH JAMBOREE AND AUTHORIZE THE PRESIDENT OR DESIGNATE TO NEGOTIATE AND EXECUTE ANY AND ALL DOCUMENTS NECESSARY RELATED TO THE LOAN AGREEMENT.
THAT CONCLUDES THIS PRESENTATION.
AND I'M HERE TO ANSWER ANY QUESTIONS YOU MAY HAVE.
UH, WOULD THE PUBLIC LIKE TO COMMENT ON THIS ITEM THERE? ANY, UM, HEARING NONE DO MEMBERS ON THE BOARD? ANY QUESTIONS ON I WAS, DID YOU GUYS DO DO A STUDY? I, I DON'T KNOW.
UM, IT IS ALREADY ENTITLED, SO THAT WOULD'VE BEEN THROUGH THAT PROCESS, BUT I DON'T HAVE IT.
UH, WE TYPICALLY WOULDN'T DO A STATE STUDY UNLESS IT'S OVER 75 FEET.
SO SOPHIA, DO YOU KNOW HOW TALL THE PROJECT IS? NO.
FIVE STORIES? WELL, FIVE STORIES
SO WHILE IT MAY PRODUCE A SHADOW, THAT SHADOW IS GONNA BE LESS THAN THREE HOURS.
SO THERE'S NOT REALLY, WELL, THAT MAY BE TROUBLESOME TO SOME, BUT IT IS NOT AN IMPACT IN FEW OF ENVIRON.
ANY FURTHER DISCUSSION ON THIS ITEM ON THE BOARD? MADAM SECRETARY, CAN YOU PLEASE CALL FOR DIRECTOR CHAMBERS? YES.
MADAM SECRETARY MAY PLEASE
AUTHORIZE THE PRESIDENT TO NEGOTIATE AN AFFORDABLE HOUSING LOAN AGREEMENT WITH MERCY AND AUTHORIZE THE PRESIDENT OR DESIGNATE TO EXCEED ANY AND ALL DOCUMENTS NECESSARY TO IMPLEMENT THE LOAN GRIEVANCE.
MAY I GET A MOTION TO CARRY THE SIGN? DIRECTOR
UM, APPROVAL OF A LOAN TO MERCY HOUSE IN CALIFORNIA FOR THE DEVELOPMENT OF 300 ROS ON MAY 17TH, 2023.
THE
THERE'S ALSO GOING TO BE 41 BEDROOM UNITS FOR HOUSEHOLDS EARNING UP TO 30% OF THE A MI.
THERE WILL BE A ONE, THERE WILL BE ONE TWO BEDROOM UNIT FOR AN ONSITE MANAGER.
SO DEVELOPMENT INCLUDES TWO COMMUNITY ROOMS, ONSITE LAUNDRY COURTYARD FOR THE COMMUNITY, UM, FOR CLASSES AND EVENTS, AND ALSO A BIKE STORAGE FOR THE RESIDENTS.
ON THE SCREEN, YOU WILL SEE A RENDERING OF THE SITE FACING, UM, EAST OF ROS AND ALSO THE SITE.
YOU'LL SEE THAT IT'S BETWEEN THIRD AND FOURTH STREET RIGHT ON
FOLLOWING, UM, THE MILESTONES AFTER WE EXECUTED THE ENA, THE PROJECT HAS RECEIVED APPROVAL AND ENTITLEMENTS FROM THE PLANNING BUREAU.
IT HAS BEEN AWARDED FULLY PROJECT BASED VOUCHERS, STATE AND FEDERAL LOW INCOME HOUSING TAX CREDITS HAVE BEEN AWARDED TO THE PROJECT, AND LOANS HAVE BEEN SECURED FROM LOS ANGELES CIE COUNTY TO
THE CITY'S PROPOSING TO PROVIDE PERMANENT LOCAL HOUSING ALLOCATION FUNDS, WHICH ARE KNOWN AS THE ALLERGY FUNDS IN THE AMOUNT OF UP TO 5 MILLION
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FOR A 55 YEAR TERM.REPAYMENT IS BASED ON RESIDUAL CALCULATION AND THE LOAN WILL BE SECURED BY A PROMISSORY NOTE AND A VISA TRUST.
THE RECOMMENDATION BEFORE YOU IS TO APPROVE A LOAN IN THE AMOUNT OF UP TO 5 MILLION TO MERCY FOR THE DEVELOPMENT OF AFFORDABLE RENTAL HOUSING AT 300.
ALAMITOS AUTHORIZE THE PRESIDENT TO NEGOTIATE AN AFFORDABLE HOUSING LOAN WITH MERCY AND TO AUTHORIZE THE PRESIDENT OR DESIGNEE TO EXECUTE ANY AND ALL DOCUMENTS NECESSARY TO IMPLEMENT DISAGREEMENTS.
THIS CONCLUDES MY PRESENTATION AND WE HAVE SO REPRESENTATIVE FROM MERCY, SHOULD YOU HAVE ANY ADDITIONAL QUESTIONS.
THIS IS THE ONE I WAS GONNA, THE OBSERVER.
UM, I ACTUALLY REALLY DO LIKE, EXCUSE EZ.
IF ANYONE WOULD LIKE TO SPEAK, UH, PLEASE STAND HEARING NONE, UM, DIRECT OR IF YOU APPRECIATE YOUR SITE, UH, ESPECIALLY FOR SENIORS, I WAS LOOKING AT EVERYONE ELSE AND THERE'S LIKE TWO GROCERY STORES FAIRLY CLOSE BY, A LOT OF LIKE BUS STOP PIZZA, SO IT'S LIKE A VERY HIGH SPOT THAT'S RIGHT HERE.
I, I DO, YOU KNOW, JUST FOR OUR SITUATIONAL AWARENESS, LIKE WHAT IS, YOU KNOW, FOR THIS BUDGET YEAR, WHAT IS THE ALLOCATION FOR ENTITLEMENTS FOR SENIOR HOUSING ON AVERAGE? UH, FOR THE, OH, IN TERMS OF LIKE TOTAL SENIOR UNITS? YES.
I MEAN, THIS PROJECT, I REALLY WANNA DEVELOPER WORK.
THIS PROJECT WAS APPROVED MANY, MANY YEARS AGO AS A MARKET RATE PROJECT.
THE FIRST MARKET RATE DEVELOPER CAN MAKE IT WORK.
THE SECOND MARKET RATE DEVELOPER MAKE IT WORK.
THIS IS A REALLY GOOD SITE, BUT THIS IS A CHALLENGING SITE BECAUSE OF THE LAND COSTS, BECAUSE OF THE SHAPE OF THE LAW, BECAUSE OF SOME, YOU KNOW, ADJACENCY ISSUES IS A DIFFICULT SITE.
UM, SO, UM, WE NEED MORE SENIOR HOUSING.
WE GET, UM, ZERO NON, NOT AT ALL REQUESTS FOR MARKET RATE, SENIOR HOUSING SOMETIMES FOR LEGACY TO LIVING, BUT FOR INDEPENDENT LIVING, NONE.
IT'S A NEED, BUT IT'S NOT A NEED BEING MET BY THE MARKET.
UM, AND THEN ON THE AFFORDABLE SIDE, SOME YEARS WE HAVE PROJECTS, YOU KNOW, A HUNDRED UNITS HERE OR THERE.
UM, SOME YEARS WE HAVE NONE AT ALL.
SO IT, IT IS A, IT'S A NEED, IT'S AN UNMET NEED AND IT'S NEED BY ANY FURTHER DISCUSSION.
WELL, WE STILL HEAR, UH, FINAL COST MEETING OR THAT THE, THE FINAL COST? NO, THIS IS, THIS IS IT.
WE'RE THE FINAL, UM, COST IS 59 MILLION.
SO THIS IS, THIS IS OUR, WE'RE JUST SUBSTANTIATING AND ASKING YOU FOR PERMIT TO ACTUALLY ENTER, ENTER INTO THE LOAN AGREEMENT.
BUT WE AWARDED THEM UP TO $5 MILLION PROBABLY TWO OR THREE YEARS AGO, UM, AT PROJECT CONCEPTION.
AND SO THIS IS REALLY JUST TO MEMORIALIZE THAT YES, WE'VE HAD THE KMA STUDY, THEY OF COURSE NEED, THEY'VE GOTTEN ALL THE OTHER SOURCES.
WE'RE AT THE END OF THE ROAD HERE.
UM, WE'VE SUBSTANTIATED THE NEED FOR THE WHOLE 5 MILLION AND WE'RE MOVING TO CLOSE ON CONSTRUCTION FINANCING BY THE END OF THE YEAR.
NO ADDITIONAL FROM THE FIVE YEAR RESULTS, NO ASSUMING
THEY HAVE REALLY GOOD INTERNAL CONTROLS, UM, AND THERE IS CONTINGENCY IN THEIR PROFORMA.
UM, SO OUR GOAL IS ALWAYS, YOU KNOW, NOT TO COME BACK.
UM, BUT IS THAT A 20%? MM-HMM.
AND, AND IT'S INTERESTING THAT CONTINGENCY SOMETHING THAT WE, WE ALSO NEGOTIATE AND ARGUE.
WE, WE KEEP IT LOWER USUALLY THAN DEVELOPERS UP AS WELL.
SO THAT'S AGAIN WHY YOU MIGHT SEE US BACK HERE, BUT WE STILL THINK IT'S THE BETTER WAY TO GO.
MUCH TO OUR WHAT IS CONSTRUCTION START? WE'RE LOOKING AT THE BEGINNING OF NOVEMBER, SO WE'RE TARGETING ON OCTOBER 31ST.
WE'RE PUSHING THE PEDAL TO THE METAL OCTOBER 31ST.
AND HOW LONG IT TAKE, WHAT'S THE TIME? WE'RE LOOKING AT 20 TO 21 LAST CONSTRUCTION.
AND JUST A QUESTION, DO WE HAVE LIKE WAITING LIST DONE? NOT YET.
UM, SO TYPICALLY, SO WE HAVE STARTED DOING AN ELECTRONIC INTEREST LIST NOW JUST FOR THE L-B-C-I-C IN GENERAL, AND WE HAVE IT SEPARATED BY THOSE LOOKING
[00:30:01]
FOR SENIOR HOUSING OR FAMILY HOUSING OR SPECIAL NEEDS.BUT GENERALLY A, AN INDIVIDUAL PROJECT WON'T START COLLECTING AN ACTUAL INTEREST LIST OR WAIT LIST UNTIL SIX MONTHS BEFORE LISA.
IT DEPENDS ON THE DEVELOPER, BUT UM, WE DON'T USUALLY START TOO EARLY.
THEY FILL UP FAST AND FURIOUSLY.
THERE WILL BE
ANY FURTHER DISCUSSION QUESTIONS? OKAY.
ADAM
UM, THAT IS LAST ITEM OF THE DAY.
AT THIS TIME WE'LL TAKE, IF ANYONE WOULD LIKE TO SPEAK, PLEASE STAND.
ARE THERE ANY ANNOUNCEMENTS FROM THE BOARD? I WOULD JUST LIKE TO COMPLIMENT STAFF.
I THINK WHEN WE HAVE SO MUCH THE LIMITED DISCUSSION ON SOME OF THESE ITEMS IS BECAUSE YOU PROVIDED ALL THE CONTEXT, UM, YOU KNOW, SOME OF THE HISTORICAL INFORMATION IN THE PRESENTATION AND THE, THE MEMORANDUM AND THAT'S JUST BASED ON YOU GUYS PREPARING US FOR THIS.
YEAH, I DO HAVE A COUPLE OF QUESTIONS.
SOME OF THE RE UH, AND COMMENTS.
SOME OF THE REPORTS SAY, UH, YOU KNOW, THE PRESIDENT, WE DON'T HAVE A PRESIDENT, WHEN ARE WE GONNA VOTE FOR A PRESIDENT? AND THEN, UM, RENEWABLE PRESIDENT WHO'S GONNA BE SIGNING THIS DOCUMENT? UH, WITH I'M SORRY, GO AHEAD.
WITH AL RESPECT, THE PRESIDENT IS CHRISTOPHER C***S.
UM, I THINK THAT WE WOULD LIKE TO WAIT UNTIL WE HAVE AT LEAST ONE NEW BOARD MEMBER COMING ON.
SO I THINK WE'LL WAIT FOR THAT PERSON SO THAT THEY CAN BE PART OF THE NEW PROCESS.
EVEN THOUGH THEY WON'T KNOW EVERYONE YET, BUT I THINK IT WOULD BE NICE TO WAIT FOR THEM.
IS THERE A FORMAL CYCLE? LIKE, LIKE A DATE? LIKE WE KNOW LIKE THE MAYOR'S GONNA ANNOUNCE THE NEXT SLATE OF COMMISSIONERS.
THERE HAS ALREADY BEEN A COMMISSIONER APPOINTED TO THIS.
WE'RE JUST GOING THROUGH THE ONBOARDING PROCESS AT THIS TIME.
I FORGET HOW OFTEN IT HAPPENS IS, BUT WE ALSO DEPENDS ON THE NEED OF THE COMMISSION.
IF WE DON'T HAVE A SPOT OPEN THEN IT JUST STAYS THE SAME.
BUT IF THEY'RE PEOPLE ARE TURNING OUT, UM, YEAH, I DIDN'T WANNA SAY THEY'RE GOING THROUGH ALL THEIR PAPERWORK, YOU KNOW, IT CAN BE A LOT.
OUR NEXT MEETING IS SCHEDULED FOR WEDNESDAY, SEPTEMBER 18TH BACK.
WE KEEPS TODAY'S MEETING, BUT THERE'S NO OBJECTION.