Memorandum
Date: April 6, 2021
To: Board of Directors, Lake County Housing Commission
From: Carol J. Huchingson, County Administrative Officer
Subject: (Sitting as the Lake County Housing Commission, Board of Directors) Consider Request from the Rural Communities Housing Development Corporation to Divest Security and Previous Development Interest in Real Property in Consideration of a New Agreement to Develop Affordable Housing at 6853 Collier Avenue, Nice, California (APN: 031-053-220-000).
Executive Summary: (include fiscal and staffing impact narrative): Rural Communities Housing Development Corporation (RCHCD) purchased 3.33 acres of vacant land located at 6853 Collier Avenue, Nice, California. In 2005, the Lake County Redevelopment Agency (RDA) entered into an Owner Participation Agreement (OPA) with RCHCD to develop a 50 unit affordable housing project. Subsequently, the RDA issued two "forgivable" notes to RCHDC for a total amount not to exceed $1,248,000 to help fund this affordable housing project.
After the dissolution of all Authorities in California in 2012 and the subsequent termination of reimbursable payments to RCHDC, this project stalled due to RCHDC's inability to obtain additional funding due to the existing liens including the deferred and "forgivable" loans on the property held by the Lake County Housing Authority.
RCHDC "Forgivable" Loan March 7, 2005 $250,000
RCHDC "Forgivable" Loan June 2, 2009 $998,000
Total Loans $1,248,000
Loan Note Amount Disbursed to RCHDC before Termination $626,872
Loan Note Amount Not Disbursed to RCHDC $621,128
Rural Communities Housing Development Corporation (RCHDC) utilized $626,872 of the loan amounts for predevelopment costs such as water impact fees, special district mitigation fees, performance bond deposit, storm water study, fish and game fee, FEMA/CLOMR...
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