HomeMy WebLinkAbout0289.093"
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Kay 13, 1993
HONORABLE CITY COUNCIL
Palo A1to~ California
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~t for Approval of in A.greemef1t fr.-r Fundi 09 of Si te
Ac~u;$itiQn and Development For t~e lytton IV Senior Housing Project
Members of the Council:
REPORT IN BRlfF
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CouncO action is requested to appro .... e the attach~d atlceem.ent "ith the lytton
IV Housing Corporation and Community Housing, Inc. fer the pro¥ision of up to
5500,000 i~ Commercial Ho~sir.g Reserve funds for site aCQulsition, relocatj~n
and development !xpenses associated with the new Lytton IV senior housin9
project to be constructed at 330 Everett in Palo Alto. ihe agreement will be
betwe!n the City. Community Housing, Inc. (CIH) and a new nonprofit agency,
Lytton IV Housing Corpcratior1. HUD requires that i Section 202 sponsor set up
a separat! nonprofit corporation to own and op€rate each 202 proje~t. The new
corporation received its approval from the Internal Revenue Service on Janua;y
27. 19513. It is controlled by Hie same Board of Directors arrd has the same
staff as the other Lytton projects, but it ;s a separate J~ga1 e~tity.
On September 23, 1991, Council adopted Resolutlon No. 4C53 approving a Planned
Communtty {Pt} zone, permitting tn€ construction of 51 units of federally
s.ubsidized low income serdor housing at 330 £V'erett Avenue. The PC Zone
became effective on April 30, ]992, after CHf received a Section 202 fundjng
award from HUD.
On No~ember 9, 1992. Council authorized the use of Housing Reserve Funds: to
aSSist CHI with the site acquisition and project d~;elopment costs. The
Counc:ijls motion authorized fund~ng i.Jp to a maximum of S],450,OOO. Funding
was to exc!ed $1,000,000 c~ly to the exte~t that CHI exerCised reasonable
efforts to maximize HUO funding and minimize proj~ct costs. City funding was
also contingent upon CHI receiving a HUO co~dition~l commitment of at least
$4,650,000,
On Novemb~r 30, 1992, C~uncil adopted Budget Amendmert Ordinance No. 4119 to
apprcpriate up to Sl,450,nOO in Housing Reserve Funds for lytton IV.
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On MardI I, 1993, Council approved aM agre02merlt with c"r to pro .... -;:c:e SP)O,OCO
in CDBG funds for prr-d"velopment expenses associ.2!te.j Wit!1 the Lyttor. IV
housing project.
PROPOSED AGREEMENT
The agreement provides up to a maximum of S500,O{.)Q in City Hc.usir.g Res€r\le
Funds for site acquisition and d'e .... elopmerlt eXtler'lses of the lytton II{ s€nior
housing_ As of this date, CHI estimates the total cost of t~e project at
$6,239,150 including pre-development, site acqu1sition. hard construction
cests, Il'orking capital, off-site impro"r(:!l1'lents, demolitio~. r-elocation and
establishment of rnair,tenance-reser'.,tes. rmo's Corrdltional Commitment letter
dated May 6, 1993. awards a Capital Advance of 55,450,900 for the project.
This is an increase of S80D,900 over the earlier estlmate of $4,650,000. That
figure was ba5ed on a conservative projection hi (HI's consultant, Mort
Schaffran. CHI ha.s ,1so been successful in r2ducir.g o'/era11 project costs
despit~ HUO's requirement for additiona1 rnalntenance reserv~s. Tota1
development costs are no~ estimated at $262,850 less than they were six months
190. A br~alc.da\lm of the oe-ve 1 opment bu.dget and iii .s urm:ary of (H 1 '.s effort s to
save costs are included in Att3chment C.
At this point, it is unlikely that more than the SSOO,OOC being obligated ~jth
this agrllE!ement 'JIlill actual'ly be needed to complete the project. As shown
below, if c:osts hold steady, then only S385,25C .'ill be needed in Housing
Reser~e Funds. Together witn tM2 SlCC,OOa in COgG funds already spent by C~I.
t~e City'~ tota1 tontTibut~c~ to the project ~~11 then equal S~86.2S0. Should
unfores~en probl~ms occur, CHI could request t~at the Agreement be amended by
C~u~cil to allocate additiona1 funding.
The following table compares the estimates of total project costs and sou~ces
of fu~ds as th~y were known last October. 1992 and as currently estimated:
TOTAL PROJECT COSTS
HUD Capital Advance
COlTrrlunity Housing, Inc.
PaliJ ,e.,Ho Housing Corp.
C,ty of P.lo Alto:
CDBG
Housing Reserve
TOTAL SOURCES Of FUNDS
Possible tost Increases:
Kay. 1993
56,139,150
SS,450,SOO
101,000
100,000
100 1 000
386,150
$6,239,150
Q~tQber t 1992
S6,501,000
54,650,000
202,000
100,000
100,000
1,450,000
$6.502,000
There are still mani unknown factors ~nich may cause costs
Relocation expenses are a1ways very difficult to estimate.
budgeted at 563,000, but th, final figure could be n;gner.
to increase.
Currently the)'
The City plan
are
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checking proces.s (currently \l!"'t<1E:ntay) could res\.l~t if" changes in UI~
construction specifint10ns which increase costs. ConstrucUCT1 bids m.;.y CO~e
in hi.gher than present estimates. ltJmbeT' prices,. for-example. ha'{E" beei'1
especiallY volatile recently. ~hen material prices are u~stdble. it is
dHficu1t to accu':"ately est!mate constr"uction costs. Delays in the project's
scherlule. either in HUO's proc~ssing or in the issuanc€ of tn€ building
permit, cOlJld resua in the-gener~l contractor having to f€'rlegotiate the
s~bccntractars' bids, causing cost increases.
The agreement provides that the City will contribute a minimum of 5386 1 250 in
Housing Reserve fu~ds for the project. The CHy will contribute a'.1ditiot'121
funds, up to t~e contract m&X1rnUm of SSOO,COQ, for expenses which are
reasonable and necessary for comp1etion of the preject based upon HUD ar,d,/or
City re.qu;'rements a.rld wtdch could. not h"'¥f been foreseet'1 Qr a~oided by CHI.
The .agreement assigns authority to the City Manager to :H.'tnoriZt; any
additional City contributions over $386,250.
S~eurity and Repayment of City fund~
The City's loan will be e .... idenced by a HUO approved "Residu.c.l Receipts Note~
~hid~ will be exec.uted by Lytton IV l-fousing Corporation at the initia1 escrow
closing af the HUO Capital Advance, probably in early September. The final
payment of the City's funding contriDutief)s 'Will be mad!?: at Oiat "time. Th~5
;s also w~en title to the site will transfer to the contractor.
The "Residual Re<:e~pts Note" (llthi en is the cnly form of secondary financi ng
HUD allows with a Section 202 preject) provides for S percent per year simple
interest. Repayment ~f the City's loan will be made from any avall~ble
surplus cash flow from the project's operating expenses throughout the 40 year
tel"'llJl of HUO' Regu1atory Agre2m€f1t. CHI's consultant Hort Schaffran prepared
two versiGns of income trending ilf1d operating expenses for Lytton IV~ which
~re lncl~ded as Exhibit 0 to the staff report dated October 22, 1392. Under
the conservative version, the project ~ould ne¥er generate suffiCient c.ash
flow tn ma'ke an)' pa),men ... s Oli the City's 1oan. t\owe'ller, using more optim~stlc
assumptions of rental income increasing at a. rate of 4.7 p€rcE."nt per year and
expenses increasing at 4 percent per )lee;!", {based cn historical experienc.e
W'itn Lytton I from 1986 to 1991). tile project would produce a net lrlCOme
beginning in the 14th year. and the Ci.ty's loa" would be fully repaid by the
end of the 40 year te'!'iJ1. The roost likely result 1111111 be that some of the 1c.an
will be repaid, but that i substantial portien will be due at the expiration
of the 40 year ten!!.
At the expiration (If the HUD restrict.ions, the City may, at its option, take
title to the project; and the remaining balance owing on tne note would then
be forgiven. lhe City could choose te lease the project baCK to the nor.prcfit
agency and recei¥e an income stream frem the lease payments. If the City
chose r,ot to lssume ownership, the City cOl.lld sU11 n.egQtiate an e.x.ten'S~on of
the low income US! requirements and an extended repayment of the balance due
on the note.
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~~ EFFORTS TO REDUCE~~COSTS
The attached letter (Attachment C) from Bliiir ~te-' ... art de::.cribes CHI's effo'rts
to r~duce Lytton IV's c~nstruction costs. These include t~e substitution of
less expensiv~ exterior finishing materials for the structurE as ~£ll as i~
the landst:apjn9~ the en:nl~at~or: of microwa ... es and dishwashers:. the
de-termination that a new sewer \liiill 010t be needed ane Ot.hH misce11afleous
items. Cost savings have aho been achie\led by renegt.lti.a.t1ng the architect's
contract and by on paying the other consultants directT,Y to reduce the
architect's markup.
HATUS OF HQUSjN~ ~ESERVE fUtlQ
The (.G~rcial Hour;.ing Reserve (In-l1eu) Fur.d has a corrent:. balance of S3.9
million. $400:000 was previous.ly loaned to the Resider"!tial Reserve Fund and
will be repaid with futUre in-lieu fees. Of the r~maining $3.5 million
presently a ... allab1e. about 5400,000 will probablY be requested for the Bal'"ker
Hotel new!,inits. If S500,OOO is used. by Lytton lV, that would leave S2.6
mil1ion for futur.e projects. However. IJntil Lytto~ lV costs are finallzed, a
full .51 81~n1on shouid be held in reserve for the project and nat made
available to ather housing activities.
ENVIRONMENTAL REVIEW
As required by the California Environ~entaT Quality Act (C£QA). an
environmer.tal i~act assessment was prepaied and a n~gati~e declaration was
adopted by the City Council orr Sept~mber 23, 19'31, at the t"ime of the pl anned
co~nity lone adoption.
BEC\!I!IENQ,AIION
Stiff recommends that the City Councll approve the ittach~d agreement with the
lytton IV HGl.ls1ng Cor;:Joration and CHI to provide up to S500,COO in HOuSing
r<esene Funds for site acquisition and de'.lelopment costs nec~ssary fo\" the
lytton !Y senior housing project; aut~orize th~ M~yor to execut~ the
appr~9riate documentsi and ~uthorlZE the City Mal'1ager to adr:;;~rl;$ter iir1d
execute thE: pro .. ') sicns of the agl"ee~ent.
Respectf,l1y SUbmltt', d'!
CAt/\f0!li 4eu
CATHERINE S~[G , ,if' S nior Phnne, J
i, If
I FlEMi1~o
Manager
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(ENNETH R. SCHREISER
Oirector of Planning a~d
Community En~ironment
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Atticnments: A A9ree~nt WlHh Lytton IV Housing Corporation and CHl
B Condition21 Commitment lett~r From HUD dated ~ay 6, 1993
C letter From Blair Stewart
cc; lytton IV Housing Corporation
Community Housing, Inc.
COSG Citizens ~o~ltt!e
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"fhis docur.'.e:lt is recaraeo for the
benefit of th~ City of Palo Alto
and is el1titl~d to be recorded
free of charge in accordance with
~.iQ{'.s 273$3 and 61Q3 ~fJ.h§.
~~~c..~
.~ter Recordatio~, mail to:
OFFICE OF TEE CITY ATTOP~~Y
250 Hamil t.on A"Jenue
Palo Alto. c.D" 94301
A~RREMENT FOR FUND!NG OF SITE ACQUISIT!ON AND DBV3LOPMENT FOR
THE L~TTON r; SENIOR HOUSING PROJECT
THIS AGREEMENT is made and ent~red into on the day of
, 1993, by and among tr.e CITY OF -PALOALTO, a
muni-:c:-~'" p:-~"'l-'c:-o:-rp=-:oC:ration of the State of California ("CITY") ~ LYTTON
IV HOUSING CORPORATION, a California nonprofit ccrporation
Califcrnia (IICON~CTOR"); and CO~ftI~i HOUSING, INC.~ a
California nonprofit corporation (nCHI~)
RECITALS.
WHBREAS, CONTRACTOR has applied to CITY for assistance with
the site acquisition costs and other development exp~nse8 for a
planned 5~-unit, low income senior rental housing development at
330 Everett. Avenue within the City of Palo Alto, commo~ly referred
to as ·Lyt,ton IV~ (I:he ·Project l ) i and
~'HEREA3J CHI has applied, as a sponsor of the Project, on
behalf of CON11L~c?OR, as owner of the Project, to the United States
Department of Housing and U.r-ban Development (~El.rD") for a capital
advance and operating subsidies for the PI'oject under the H'"JD
Section 202 Program; and
WHBREAS, CON'!'RACTOR received a HUD Conditional Commitment in
the arr.ount of $5,450,900 for the Section 202 Capital Advance ("HUD
202 Advan~e~) on May 6 r 1393; and
WHEREAS r the Project will provide ney,>' rental housing
affordable t,o very low income elderly households: and
WHEREAS, the development of new affordable rental housing is
the purpose of the Cityrs Commercial Housing Reserve Fund and is
also consistent with the affordable hcusing goals of the City of
Palo Alto as outlined in the CITY' E CO!P.pr-ehensive Housing
Affordability Strategy (IICF~w); and
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WHEREAS, CO~"TRACTOR h<'l.s re-q1.,;ested t.hat CITY loan to t:ON"I'R.:~.CTCR
funds to cover a portion of the slte acquisition and development
expensee that ...,i11 not be eligible for funding from the Kt .. 'D 202
Advancoe and that are reasonabl.e and necessary Project costs;
NOW, THEREPORE, in ccnsideration of the mutual covenants
agreements specified herein, and subject to its terms
provisions, the patties to t~is agreement ~gre9 as followS:
and
and
A. PURPOSE OF~
The purpose of tr..is Agreement is. t.o set forth the respective duties
and responsibilities of CrT{, CO~~~CTOR and CHI with respect t~
the loan for site acquisition, construction and operation of the
Project.
B. DSSc;JU itTI OH OF ACTIVITIB S
CONTRACTOR. shall acquil.·e, in fee simple, that certain real property
at 330 EVerett Avenue, Palo Alto, Santa Clara County. Califorr1ia
(Assessor's Parcel N~~ers 120-14·046. 120-14-047 and 120·14·048),
more fully described in Exhibit ~A~ attached her~tc and
incol.porated herejn by reference (the "Property~) _ CONTRACTOR
shall cause to have the Project constructed ~pc~ the Property. The
Proj ect is mor~ fully described in Planned COJ11rIT..mity (PC) Zone
Ordinance 4053, adopted by the City Council on Septerrber 23, 1991~
and effective April 30, 1992.
c. "ROaCT COSTS AND FINANCIN~
The total cost of thp. Prc'ject is estimated to be $5,239,150,
~ncluding pre-deve~opment and cQnstr~ction, site acquisition,
working capital, of!·site improvements, demolition; relocation and
the f~ding of re~Jired rnai~tenance reserves. Projected sources of
funds are:
HUD 202 Advance
Funds from CHI
Grant From Palo Alto
Housing Corporatic.n
City of Palo Alto;
CDBG Funds:
Commercial Housing
Reserve:
TOTAL SOURCES OF FUNDS
2
$5,450 /900
202 /000
100~OOO
100.000 (Pursuant to
agreement .... ith CHI)
386,250 (Current estimated
need)
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CITY agrees to loan to COr-.""TP.Acro~ the su.:T" Cit 'Three Hundred Eigtty
six Thousand Two Hundred Pifty and NO/lOa Dollars {$386,2:'-0; for
~he Project. Ir. addition, CITY agrees to loan such arr,o\,;r~t in
exc.:ess of $386,250~ up to a rr.aximurt'. of Five Hundred T~101...!.sand and
No/lOa Do~lars ($500,000), to pay for ~dditicnal Project costs,
ever the est:i:mated $6,2 3S. 150. whicf'. are rei:lson~.ble a.nd necessary
f,:)r th€:.' completicn of the proj ect based upon hUD and/or CIrY
requirements, a.nd ... 'hich co'..!ld not have been fureseen or avoided by
CONTRACTOR. Such costs rr~y incl~de, but shall not necessarily be
liJr.ited to, additior.al relocation eJ..:pe:lses:. hard construction costs
in excess of current estimates, additional resep,r2:3 requi red by .Hl .. "D
and increases in construction bids resulting from HLr;) procE'ssing
delays.
CITY's City Manager shall have the authority to a.pprove all
reauests from CONTRACTOR for funds in excess of $386,250.00, up to
the $500,000 maximum. CONTRACTOR shall fUlly document the a.rnount
and reason for any requests for additiDnal cr'Y":l contributions, to
the satisfaction of the City Manager.
D. AGR.BJl¥IOC!' TE.JU(; NOTE
The term of this Agreement shall begin en tne date of execution of
this Agreement, as set forth on page one, and shall end O~ ~une 30,
1994. Upon the initial closing of the W~~ 202 Advance escrow and
execution of the Note (as hereinafter described). the term of this
Agreement shall be automatically extended to coincide with the tern.
of the Regulatory Agree:..."lent that ''''ill be entered int.o between
CONTRACTOR and the Secretary of WJD with respect to the 202 Advance
(the ~Regulatory Agreernent~) 4
At the initial closing of the HUn 202 Advance (Htm Project Numi'er:
121~EB012-NP-WAH/CA 39-S911-011). CONTRACTDR shall Execut:e a b"U"'"D
approved Residual Receipts Note ,"Note ~ j fo:::" the cotal aJ:10-";'~::: of
all funds loaned to CONTAACTOP by the CI'I'Y pursuant :'0 this
Agreement ~ The terTT'.£ of tr.e Not,= s't'_all t,e as follows 7
1. The form of the, Nate shall be subs~antially similar to
the form attached for reference as Exhibit "B", and shall
require payment or. ttle lean {"prepa}"!!'tents"~, after the
end of any semiann.!Jal or an annual fiscal period, j n
which HL~ declares that there are funds availab!e in the
Residual Receipts Fund, as chat term is defined in the
Regulatory Agreement, for such paytr,ents to CITY.
2. The ten:l of the Note shall run canc'J.rrently with tr .. e term
of KUD 202 Advance.
3. The loo.n shall bea.:: interest at a rate of five percent
(5t) simple interest per arUlU:m commencing on a date
certain. which shall be six months a fter the dac€ of
initial occupancy of the Project.
4. Any remaining prin-::ipal balance plus any unpaid interest
shall be due and payable upon t~rmination of the HUn 202
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Advance ei-cner by default, prepayrr.ent c-r-by expiratie,n of
the 40 -year term o!: the Regu1atol-Y Agreement.
In the e...,ent that~ for any reason, CONTP.ACTOa deBs not constrclCc.
the Project, the full amount of any and all f"....inds disbursed to
CONTRACTOR under this Agreement shall become d'<.l'? and payable,
upon expir":!tion of the -«O-year tenn of HUD's RegulatoLY Agree::r.ent,
CITY may, at its sole option~ z'e-qtJiI'~ CONTRACTOR to transfer
ownership of the proj act (all improvements 3.nd land) to the CITY,
CITi must exercise said option within six months of the termination
of HUn's Regulatory Agrea~ent. In con~ideration of the exercise of
said option, CITY .shall cancel any remaining balance then o .... ing by
CO~~CTOR on the Note.
P. llISBURSEJg<N'l' QP FUNpS, TITLE INSURANCE
Tne loan proceeds shall be funded through an escrow with Old
Republic Title Company, 190D The Ala..-rn<9da~ San Jose, CA. 95126,
Escrow NWI1l:ler 366439 -HJJ. The parties to this Agreement shall
place all funds and docurnents, together ...... ith appropriate escrow
instructions. i~to the escrow in order to fulfill the terms of this
Agreement.
The funds loaned to CO~~CTOR in accordance with Section C of this
Agreement shall be disbursed to CONTRACTOR 3S follows: Upon
written req-J.lest to the City Y...anager, the City shall reimburse
CONTRAC70R for authorized expenses incurred by COt-."TRACTOR. with
each payment request, CONrRACTOR shall certify in writing that the
services r~ve been satisfaccorily performed and that the expense8
for ~hich rei~bursement is requested are reasonable and necessary
~o complete the Project in accordance with Section C. The City
Manager reserves the right to disallow any cost r"ot approved in
advatlce.
At the close of the HTJD 202 Advance escroW', CONTRACTOR, at its 01ool1l
cost and expense, shall secure the issuance of a CLTA policy of
title insurance, in the a'-Tlount of the loan evidenced by the Nate,
clear of any title defects that would prevent the construction and
operation of the Project.
G, ,l\SSIG)!!G:NT OR 'l'llANSPBR OF TITLE
No assignment or transfer of title to tbe Project shall be
permitted except by prior approval in writing by the Ci ty Manager.
No such approval tnay be given until and unless the proposed
assignee or new holder of title agrees in writing to assume all
obligations of this Agreement and Note. Any attempted assignment
or transfer of title shall be void without the required consent of
CITY.
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n. ~aAM ACTIVITIES
During tr·~e tenr. of this Agreement~ C(:NTRAC'I'OR shall r'3~t all vacanc
units to senior r~ousehclds ... hose hO'l;.sehold. incomes are .... it.hin t.he
low irJcome limits r as adjusted fo:: household size. as defl.ned by
HUD for Santa Clara CO!.i.nty. Monthly rents shall not exceed 30
percent of the household' s actual gross monthly income or tr.e
amount prescribed by HG"D ..
Durin..; the term of this Agree!l1ent~ CONTRACTOR and CHI shall provide
residents of the Project with full access to those progral"!'"ts and
services which are available to the residents of the senior
residential developments knOioin as Lytton! and Lytton II, which aloe
cwned and operated by CHI.
It is agreed and understood that the terms and conditiDns of this
Agreement are subject and subordinate to the provisions of Section
202 of the U.S. Housing Act of 1959. as amended, and all applicable
HUD rp.gulaticms and 3.dmi~istrative requirements. In the event of
any conflict bet ...... een the provisions of, this document and the
previsions of any applicable HUw regulatio~s, related BUD
ad..1"!'tinistrative requirements or t.r.e W .. ,.'ID loan documents. t::len the HUD
regulations, related administrative re~JiremeDts or loan documents
Br..all control.
CONTRACTOR and C'rlI shall provide CITY ~ du.ring the term of this
Agreement, with copies of audited financial statements~ including
any management letter corrments on the adequacy of internal or
operaticnal con~rols, within 12D days of the close of each fiscal
year. TheBe financial statements and audits shall cover the
operations of the Project a~d the oper~tians of the Lytton II II
and III projects. CITY reserves the right, during the term of this
Agree..rnent~ to audit the recoI-ds, irlcluding che financial records
supporting the aforementioned fir.ancial statements, and otner
records and documents pertaining to the operations of all fau!" of
the facilities listed above.
Any notice which may be or is required to be given under this
Agreement shall be submitted in writing I postage prepaid, to the
following representatives:
C!"rY~
City Manager
250 Hamilton Avenue
Palo Alto, CA. .94301
(415) 329-2563
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CONTUC'TOR t
Chief Executive Officer
L~~ON IV HOUSING CORPORATION
556 Lytton .r..venue
Palo Alto, CA+ 94301
and
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·~n:f~
.. ;r'ffil;;~tf.·· •.......
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Chief Executive Officer
(,O~ITY H;JllSING INC:.
GS6 Lytto~ Ave~ue
Palo Alto, CA 94301
A copy of all notices and correspondence tQ CITY must also be sen'S
to:
Director. Plan. .. ·ling and Ccm:nunity Envirorur.ent
City Of Palo ~to
250 Hand 1 ton Avenue
Palo Altar CA. 94301
Phone: (415) 329-2441
Fax: \415) 329 -2240
I'ART II
GENERAL CONDITIONS
A. COMI'LUNCB
CONTRACTOR agrees to utilize funds available under this AGREEMENT
to suppleme!J~ rather than supplant funds other.-ise available.
CONTRACT(lR~ :l.n the perforrr.an.::e of it.s obligations under this
AGREEMENT, shall comply with all applicable laws, ordinances, rules
and regulations~
B • INPEPENpBNT C<:ll!T1\A<:TQ1l
CONTRACTOR shall maintain its nonprofit corporate status as defined
by California Corporati.ons Code section 5050, as amended, Q'...i.ring
the term of t.his AGREEME!IT as set forth above _ NatrJing contained
in this AGREEMENT is intend-ed to~ or sral1 bE-construed in any
manner r as creating or establishing the relationship of
employer/employee between the part ies. CONTRACTOR shall at all
times remain an independent contractor with respect to the services
to be performed under this AGREEMENT ~
CONTRACTOR and CHI shall independently indemnify, defend and hold
CITY har:nless from and against any and all claims, actions, suits,
liabiU,ty, charg>?s; and j\.',dgmeDts whatsoever chat arise out of, or
caused by r CONTRACTOR'S and/or CHI's negligent performance or
DODperfo~nce of the terms of this AGREEMENT.
CONTRACTOR, at its sole cost and expense, shall ~aintain workers'
compensation, comprehensive general liability. aut;.omobile
liability, personal injury and property da .. nage insurance, ins'u.ring
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against all liability of CO}.i'RACTOR and its euthcrized
rep=~aentatives arising out of ?r in conne=tion with CONTRACTOR'S
performance tlnder trds AGREEM3NT. CONTRACTOR and any
subcontractors assi'3'ned tv the perfcnr.ance of the terms and
conditions of this AGREEMENT ahall comply 1.dth coverage amounts ..
required endorserr.l';!nts~ ceI."tificates of ins"..lrance and coverage
verifications as defined in BXHIBIT C, INS:''"R.ANCE REQUIREME~"TS,
attached hereto and incorporated her.;:ir.. by reference.
MSI~
All rights granted hereunder are p.ersonal to CON"IRACTOR a:r.d CHI,
respectively. and are not assignable or transferabJe absent the
prior written consent by the CITY MANAGER on behalf Qf CITY, and
~y att~~pted assign~ent therecf shall be void.
P. ~S
Amendments to the tE~E and conditions of this AGREEMENT shall be
req~e9ted in writing by the party desiring such revision; and any
such adjustment to this AGRBE."1BNT shall be determined and be
effective o~ly upon the mutual agree.'T'L€nt in writing of CITY and
COl-t"T' .. lACTOR. Amendments made by bUD L or any authorized Federal
official; viII be deerned to be incorporated herein .
.1. CONTRACTOR shall docU-.-nent all costs by maintaining
complete and accurate records of all financial
transactions, including. but not limited to, contracts,
invoices, time cards; cash receipts. vouchers. cancelled
chE"Cks. bank statarnents, and/or other official
dOCUIIlentation evidencing in proper det5.il the nature and
propriety of all charges.
2. CONI'RACTOR shall submit for approval by CITY a.ny lease
agreerner::c. except for tenant leal3es, either proposed or in
effect. which may af feet directly the proj ect during the
ter.m of this Agreement.
3. CONTRAcr-oR shall preserve its records and make them
a¥~ilable for review by CITY:
9~IClI6c.0030691
a) For a period of three (3) years from the date of
the subrnission of the final expenditure report; or,
b) For such longer period. if any, as is required by
applicable law; or,
c) H this
relating
and made
from the
and
AGRBEMENT is terminated, the records
to the work terminated sha.ll be preserved
available for a period of three (3) years
date of any resulting final settlement;
7
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For a oeriod of three (3) yedrs
termination date of this AGREEMENT.
fr.:-<m the
4. CONTRACTOR and CHI agree that, at an}" time duri:ng normal
business h01.;rs I B_nd as oftF;!1 as Inay be deemed necessary.
CITY and/or any duly authorized representatives st.:ilL
unti.l expiration of: {a] thre.e {3} 'years aft-er final
payment under this AGRBEME_NT, or (bi such longer period
as may be prescribed, have access to and the right to
examine all of their records with respect to all IT.atteY"s
covered by this )\GREEMEN'r. CONTRACTQR and CHI also agree
that CITY; or any duly authorized repres~!ltatives, have
the right to audit, examine and make exce~t5 or
trar~acripts of and frorr:, such records. and to tT".ak~ audits
of all contracts and subcontracts, invoices, payrolls,
records of personnel, conditions of emp2oyment. materials
and all other data relati~g to matters covered by thiS
AGREEMENT.
B. I<BllGEII CLAUSE
This AGREEMENT constitutes the sale agreement of the parties h~reto
relating to said Project and fully states the rights. duties, and
obligations of each party as of th€-date of this AGREEME~-rr. A,-'Y
prior agreement, promisee, negotiations:, or representa.tions between
the parties not expressly stated in this AGREEMEST are not binding.
All subseq-..xent modifications shall b~ in writing.
1. NQ Tnirg Party Bepeficiary -This AGREEMENT shall not be
construed or deemed to be <;..n agree~nent for the benefit of
any third party or parties; and no third party or parties
shall have any claim or right of actior.. hereunder for any
caU8e whatsoever.
:2. Severab"li ty~_~use -In case :my one or more of. the
prOVisions contained herein shall, for ,any reason~ be
held invalid, illegal. or unerJ.forceable ~n any respect,
it shall not affect the validity of the other provisions
which shall remain in full force and effect.
3. No Pledging of" CITY's CrF>dit -Under no circu,-nstances
shall CONTR.b.CTOR or CHI have the authority or power to
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o
p12cjge t:1.e credi t of C.lTY or incur any obligati on in the
name of CITY.
IN WITNESS WHEREOF. the parties have exec~ted this AGRE~NT
Oll the date first above 'Written.
CITY OP PAUl ALTO
AT'l'BST.
~--~----~~--.-City Clerk
APPROVED AS TO PORM,
Senior Assistant City Attorney
API'ROVBD,
City Manager
Director of Finance
Director of Flannir:g 6.r:d
Community Environ..'"T!.ent
City Auditor
Risk --"Manager
9
CITY OP PALO ALTO
Mayor
~YTTON IV EOl1SmO COIlPORATIQN
//7 .' JY ;;r By' 4-M~t /t~';-~_~ -
Blair W. Stewart. Jr.
President,
Beard c! Directors
COJ!KlJNITY BOUSIlIO, DlC,_-.L-By~1,-4~~
Blair w. Stewart, Jr.
Pr.o:sident,
Board of Directors
1
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0,
EXHIBIT "A"
'ARCE'-CNi'
PD~TIO~ OF L07 1, IN aLOCK 19, ~s SHO~~ UPO~ T~At C!~TA:~ MAD
tN~ITLE~, "oaIGINA'-~A' SHOWNlN. S~)~IVISIO.S OF UNIVERSITY PA~< '.0'
PA,-O ALTC), S.NTA CLAIA CO., CALI~ORNIA', WHICH M~' ~AS FILE~ Fe!
• ECOR~ IW THE OFfIC! OF THE R[tOR~Eq OF TME tO~~TY Of SAWTA (.AR~.
STATE OF CALIFORN!A, ON FEJRUAR' 27, 1889. IN VOLUME "0" OF MAPS,
PAGE 69, AND MORE PARTICULARLY DEseRlltO AS FOLLOWS:
COMM£NCING AT A POl"T ON 'ME SOUTHEASTERLY LINE OF EVE'ETT AVENUE,
~ISTANT THEREON 100 FEET NOITMEASTERLY FRO~ THE I~TERS!CTIO" OF TM!
NORTHEASTERLY LINE OF .TRANT STREET WITH THE SOVTHEASTERlY LINE 0<
[VERETT AVE"~E; RUNNING THENCE NORTHE.STERcy ALONG THE SOUT~EASTE'LY
LINE OF EVERETT AVENVE, SO FEET; 'HEHCE AT RIG~T ANGlES,
SOUTHEAST!.Ll AND 'ARALlEL WITM J~'A~T STREET, 200 FEET; TMENCE ~T
RIGHT ANGLES, SOUTHWESTERLY AND ,AIALLEL WiTH EVERETT AVENUE, SO
FUT; ',,[NtE AT RIG~T "HGLES, HOP'N"tsT£R\.Y AND HHl\'U WITN 'RUNT
STREET, 200 ~iET TO THE POINT OF cOKMEHCEMENT.
'AH1L ToO:
CD~ENLiHG AT A POINT ON TNE SOUTHEASTERLY LINE OF EVEREr, AVENUE
~15T.NT THEREON TWO HUNDRED FIFTY (250) FEET NORTHEASTERLY FRO~ THE
POINT OF INTERSECTION OF THE MORTHEASTERLY LINE OF lRYAHT STREET VIT.
SAID SOUTHEASTERLY LINE OF EVERETT AVENUE; RUNN1NG THE~CE SOUTH
WESTERLY ALONG S.j~ SOUTHEASTERLY LINE OF (VeRETT AVENUe, fIFTY (SO)
'EET, THENCE ~T lIGHT ANGLES, SOUTHeASTERLY ANn PA_ALLEl WITH '~"'T
STREET, T~C HUNORED (200, fEET. THE"ei AT RIGNT ~NGLE$, HDITHE'STI~~'
ANP PARALLEL ~IT" EVERETT AVEN~E, FI'TY (Sal ANP THENCE AT lIGHT
A~GlES, NORTH"ESTE~~Y TWO HUNDRE~ (200) fEET TO THE POt~T O' COM",,
tE~fNT, BEING A PART OF LOT 1 IN IlOCK 19, AS LAIP POWN, ~EsraNITE~
AND DEllNEATfD UPON THAT CERTAIN ~A~ ENTIT'EP. 'ORIGINAL ~IP SKOWING
SVIPIVISIONS OF UNIYERSITY 'ARK, SANTI CLARA CO., CALIFORNIA",
RECORPED FEIRUARY 27, 1859, IN BOOK 'p' OF ~APS, AT PAGE 69, At CORDS
OF SANTA CLARA COUNTY.
PARCEL TMRH:
COMM~NtlHG ~T A POlNl OR TME SOU1H~A$T£RLY LINE OF EViRET' AVENU£~
~ISTANT THfREON 150 FfET NORTHEASTERLY fRO~ THE POINT OF INTERSECTIO>
OF THE NORTHEASTeRLY LIHE OF 'RYA~~ S1RtET, ~IT~ TH. ~A!~
SOUT~EASTERL' liNE O' EVERETT AVENUE AND RUNNING T~ENCE NORTHEASTERLY
~lOHe T~E SlID SOUTHE~STtRLY LINE O' EVElETT AVENUE, 50 FEET. T~EHCE
AT RIGHT ANGLES SOUTHEASTE~.Y 200 FEET; THENCE AT RIGHT ~NGLES SOUI"
~EST£alV 50 FEET; THEMCE AT RIGMT A"GLES NORTH"ESTERlY 200 FEET TO
THE POINT OF COIIi'IENCEME.T ANP JEl~G A PORTON 0. LOT 1 IN ILOt. 19 ~,
SlID CITY OF PALO ALTO, AS SHO~N U?O" A ~A? O~ UNIYE~SITY PA~., rNO'
'ALO ALTO) OF REtORP t. THE OFFICE CF THE COUNTY RECORPER Of SAIP
COUNTY OF SANTA tLlRA" CALIFORNIA. I. 100< D OF MAPS, PAGE 69,
_~ •• e --.
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(R •• ·". lio'
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..,Llb '~ter"$ll.i I~ ..... !~ af'
~c"J,t.,,~. !." ];'''I .. tk .. ".~
(!) P"n<:Jp.'."c i~t .. ",,~! <l~ ~lu' tOle i~1I11 be 4~c-.,,11 p.~.:'i.,~ t~~ .,.,",,1} dtl~"~ l~\! r.~~1 ,,~d ... O'1~
lal!" il'.-l",;4d b;-til-eo .sK~ta,y col H",oa,~io .~cI:J n-.." D,,""r..oI' .. O!'~l I,"""""" !'"HA F'r." • .::~ ~",_
~r=.IC'~il u.a( Ii tho-• f""'::;;1ttd .~~IH!<l ~Cl .. II p •• pal" '" r.li, ~b .. r.ol'., ",1 tbll ""[.,.0\ ". "1'('011 ~J\~
.ilOa.1I a<-~'t'e, III., d .. d"," ~b~ ... he!e p"r'C:-;"1l1 0 .. '" '" "o.r ~.l*;,c. th<'''·''~. I<),el~.' ... ,'~ ""~,~.~
I), .. ",,,,, ........ '1411.1)1 11"1" .~d "I ... bl~.
(1) .F' .. p.r ..... ~t. [co prl~dp.: .~d i..;" • .-e.1 0 .. Ild.c 'oCtc "'"J ~ .... .r • ..,,,1y fro .. t.'o ..... ,d~g: ,.c"ll'l. ru~d •
•• t".t leo, .. U d.f,IlH I .. :II~ R."",I.tOI)' .\",,"<10"0: b .. ' ........ l~" 1IIa.~ ... o.~ t.l\" S.~.el.ly "I<t-<:ul"~ Ie
C<lO"ec:,on _ito tbe lobo." >,,,,:,.,CI .... d <lnly gr'l. o::'jr,au., tM .. ,,~, .. "~l." ",,~,~~.l <>[ l~" ~"'.'.r~·
.c.ti'" by I.nd Ih'''~Cl: lb~ Yed ... ,.: Hous,.~, COII".iu;o~ .. ' Sud. P"tp.y ... '!~ "'.Y ~I' ",Id .. ".Iy '~II'.
f,,,.l e .. do'5ellt"~1 oI .!le IIOt" fQ' """'"0"' by Ih" S ... 'oea,:' Ho<! .1:", ti:: ... 0<1 a! ~ "."'LO""" .. J o .....
• "",~LiJ r'lc.l,pol'riod.
iJ) .j'!' ..... c;;~ is 00" ... "'10".1>1 ..... 0 •• ~ II'H be 101<:1, t,q ... f ...... d:, .",jla~d, c, pJ .. d,f<' ~y lb" p.y~~ e .. repl
_l:b tilt-p<ior "ri:~" .pp.o ... : "f the C<lm",iu;cnu,
B, ________ _
Tlle pl.)" .... h ...... by cettihe .. Illal I1:U8 u • &"". fld~ It.n .. ,,,.i,,,, .od lb.: ,I f"ll~ ""d .... :tl..4. _11 Ibe "'q"" .. ",,,n:~
,,/ ~n ~CI., oIUld 1II1l "" pl"p.~ .. e'll 0/ """,,,'LP.o] aT 1IlIo,,,a, ,,11.11 & .. 1'::<:"..,1""; "-ltt,~~t ... ,dr~c .. !Iol'. In. .. f.4" •• r
HD~l-j.1 Ce."z" ... ,,,,,,,,, boa "~lb<>"zrd I'~d ;''''pIYIII''ol. If .... "."t~""i .. d >', .. .,.y .... ol is ~c"' .. p.d, tl\. r~nd$
shll b" held b, II .. · puu i~ I ...... t ! .. , tb .. >,re,jm.
Er;'"---------------1'"~~~--
,.
~TATE OF CALIFORNIA
99.
COUNTY 0 F SM .... .rA CLARA
On 1:;93, t.efore me, a Notary P'...wlic
in and for said Cot:.nty and State, personally appeared JEA.~ MCCQw""N,
perso!'l..ally known to !fLe to be the person whose name is subscribed to
the within inst.rument and ackno'WI edged to me tr.a:' sh~ execut~d the
same in her authorized capacity as ~..ayor of tr.E! City of Palo Alto,
a ~~icipal corporation, and that by her Signature on the
instr<J.IDent acknowledged that said municipal co!.-por;;ltion executed
the &ame.
IN WITNESS WHEREOF, ! have hereunto s~t my hand .::t:ld af fixed ~y
official seal the r..ay and year in this certi ficate first above
written.
Notary Public in and for said
County and Sta('E
12
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STATE OF CALIFOR~IA
SS.
COUNTY OF SAo'\'TA CLARA
On __ ~laJA .il . 1993, before me, a Nctary Ptlbl ic
in and for sai~nty and State. personally appeared BLAIR w.
STEWART. JR., personally ic:nown to me to be the person whose na.'T\~ is
subscribed to the within instrument and acknowledged to me that he
executed the same in his a·...tt.Iwrized capacity as President., Board of
DirectorB of Lytton TV Housing Corporation, a California nonprofit
corporation, and that by his signature on the instr~ent
acknowledged tnat said municipal corporation executed the same.
!N WITNESS WHEREOF i I have ilereunto set my hand and affixed my
official seal the day and yea:!' in this certificate first above
w-ritten.
_~rq. ')_ Z~ataf''''(
Not.ary Fu.bli:: in and for said
County and State
13
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STATE OF CALIPDR..l\[IA
ss.
COUNTY OF SAI'.'TA CLARA
On ____ 7L~~ /1 , 1993, before ~~, a Notary Public
in and for sa County and State, per;;onall}' appeared BLA.IR W.
STEWART, JR., personally known to me to be the person whose name is
subscribed to the within instrument and ackno,,"ledged to me that he
executed the same in his autncrized capacity as President, Board o~
Directors of Community HOUSing, Inc., a Califo~nia nonprofit
corporation, and that by his e:ig~atu:t'e on the instrume:1t
acknowledged that said municipal corporation executed the same.
IN WITNBSS WHEREOF. I have hereunto set my hand and affixed my
official seal the day a!ld year i:1 this certificate first above
written.
rn05IC lu OO:.\(loc:W\
{!_H "".1 cv "=J
Notary Publ ic ''In
County and
1~
-' J~.e;(tM ...
ar..d for s-=.id
State
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:.7.~.:.~.> .... ...; .
";;'$~~< ... . ,"<.,
." --3;:~·~~~r
Mr. Blair w~ Stewart, Jr.
Fra.ideat
Lytton IV Housing Co~ration
637 Webster street
Palo Alto, California 9430l
Oear ~~. Stew&rt=
b'
San Fr .. ndaco ~"II Offle., "'DIiiI~ IX
4SO GoidefI GI'. ~.
Sf" F"'~lfCO. c.n1omll iN'OZ·3448
MAY a 0 i9S3
We .r~ enclo.in~ BUD-9D17'-CA, Conditional Commitment for
C&pital Advance Financinql FHA Form 2264, Rental Houoinq Project
Ina~. An61yeie and Appraisal; and FHA Form 2264-A, Supplement to
Project Analysis, prepared for Project Number 121-EEC12-NP
WAa/CA39-S91l-0ll, Lytton IV, to be locatod in Palo Alto,
CaUfornia.
that
day.
will
We wish to oa11 yOU% attention to the paraqraph which states
th6 pirm Commitment application mu.t be 8ubmittad within 120
from the date of this lett~r or thi. Condit!o~.l Commitment
expire unless renewed or extended by BUD.
It you h~ve any questionl, plea.e call Rich Roger"
Multifamily Housinq R~pre8entativp., at (415) 556-4557.
Enclosure!'!
eel
Mr. E. Morton Schaffran
Z~ M. Schaffran and Company
; 00 8ancock way
El Cerrito, California 945jO
very .inc~ ~
J yn ' Hulbert Humphrey
irector
Boueinq Development Division
" l r
,. .)s a:i~;j3 ~:c,:::'~ --'~ '.'~ --" :.,':".' . ---_._---
COnditional Commitment for·
Capital Advance Financing
u.s. O.partment 1:1' HCl."I~..,
""d Urb.!in De.".loprT1.t'l1
OItI~,l'~O"'''''!iI
For US" ume: S~~n 202 QI Se<:t~Dn Bl 1 ,c'0<:: .. 1II Ho;;.a",~C~.;no$.llQl'tfI
,..,.
Lytton IV Housicg Corporation
~~.
, LJ,J1e
MAY ,F"~~""'''''' G 19Q3 ty '''n 'V
Pf'C~1""""_
l 12t-::E.C)iZ-~?-\o.'AH ~37 ~ab3t~~ St~~~<~t ____ __
l::..J,' $ .....
P~l¢ Alt~~ Californ~.. 94)01
. -I L~~"--"-
?al0 fl.:to. Cal 1 fOf:l(.'
a. SectlC<'l a02 U ~Icn 61 1
Y<>J ap;lUcatlO1l rOfFum CommitmCTlt forCap:Lal A~ ... ancc:r-Ir.atld"g on:he ctp!jC~ project · ... 01\ be 2C~tt[j at1;"!y ti.'l'I': ~uri:tlg the lir'!: oh .... il
oromrnitmctlL Yourappli:ation mU!l eon!orm i., CO:1.tenlU) ;teYi"us sut>mlUloru ~::onrl~or ... ·i;1l1he propos.:&.!,
F"orrn C'ommitm.~",~pl icati-~ru:mu:st bt JCCCmpanied by rona-act ~""mg~ Oll'l:! d~~ed s:mfi~. II 'olI'o:;l1:u (1fT'T1 ~ es~matet shown on the
Cen ~to('. ant1lor :Moo.gagor's Cast 8r;:;akdo-.vn.form k'tfO-232B.
l"=-~ I ~l
iTyp.lII~
i wced Ft"A;r;e.
Humow
!'ii~ 1.00 za $30~
6nI Eladroom S2 1 24 __ ~I.;,J~O 0;.5 __________ _
One 1"",0;;;:;;; 611 6 -+ ______ -"~)",O"j'_ __________ _
One ,b I! droo'lll (OIMl' ryPlft,;a, ~=I~-i--__ ~'~9~8,--__ ,--____ ~I _____ -, _________ -,,~·o~,~. -~P.~ •• ~'~·~e !:l. .. ':l .. ~' _________ ':"" ____ _
" .. ;1
j. ""'-sj£r.c.:.&a4 P-.ng.~
j~~~:
!~C)l0;:e.1P~~ Is.
Su attllched I' 0
'1~.-.r.&.-\'1.q14 o
Ellim .. 1.ed p:oju1 dc",lopme:u cou~ on Ih.u 1':plaamcnl ctJlt farml.!.!I:l of
'.)o,'~ pfopo;onl is l_2~~1.t..285 \IIIhi-t.~ j .. n,lI:.l1~1
$_ 1. 350. CD 0 '-I H L)D", elllmlUQ o{the.v41u.e ol!.he {.and \Ir'i'JJ off.
Ii II: 11I\J'fO'Y&"ItI'ltl. iN1.allod. {?'O01l: ~w ~lSruwlUl .. ftl:r.TlWl.ouu.aJ.on·,it.e
CQtl~I,ioN. ... h.idI wia be p:v.rided for lr.~.e cm\SInIICI:i.c:r. ¢QI.1C:l-ti.mw will be.
~!.ed (:Qm WI .,~ &Ni IIffll 41st.) ..n'~ ... ~ ~u is.'" ~VId. "itl~ for C(\$1.
ter'.Jjea.tiCli. Pll:fIO$e.I. Clf Ihe ~u is;" vJ.!u.e Q{ me ~ m ~hih~dor.
prc-~ecu'l t,c:~ in I:he 1k~:opmCTj CQllt.S:.i.mlld It't tile fullo ... lnlll.:lM:
:.c~loll":'"Uo:nm::, &!Xi land Vr.rrc~mcrn.ll, lce III and cra:t"til:l.I.ion.\l C1~,
CCt'.scitllll', rl:l: (J wpplklob\c;, ~silr..a:lc I\ipcvi'iOl'"'1-.r&j~e,:. fee,~:1
P!'~.11.IttI., S'JPrie:n-.cn:.a.l i'nV'..Isernenl h.orId (If IIPP~CJ;ol~), calti,"CH'tC:y
rue:->'c (ureJlabili:l.lotian}, ~dGI'". ~fiL.and t"'OlW ccn~.01C)',
~ c.&¢W oIdvuw: I amO'.lI'\t Oft ... hit;h the: man, .. " li'tU be b.a.s~ ll-
S! 450 I 900 . ~ :::i$hyo1.;10'I:L"'IiZIltm.will be tl.~o>.d (af.;rr.ish
:u CltHinl II CIiW1\lllld i.O be S 643.240 (\O'hk-h ~,dUidu ~l1iry
~· .... utm(ru for ,tpill.! CJp:.r:db.l.~I. ~i'",t m.e:"~,.., ~le" min.l..'TI'J!Tl C~Pll.!.l
InV~HmetH, .1,,1:1 opu .. ~inl dehcil, ir Ippli':lble), Plus~ (;Qn.acl
Le~ Bartak ... howilladvlu;YOllOll.
I."'~ cern:.:! p!'r.l;I::l.II~" or Fcmt HUo.1l:8., COnh.;;I/Jf', ""G,'or MOfl~JICC:'1"1
C~:5~:aJ((!c""",.
~atcvc. bui.c::lc:nu:r.J.ll cftM ~ll olpotl. .... jojcl!. OW"II:.I:~ U'I:
~rl' oiil~....,<,.ll \HcC1-Vle =llUiot'lJ. am.WMd h1ni1l. 'The t.o:IrTlplc:u:d
;:rojcc must: ~ l-P'I't.ablc ~ ~..ef\lI IU".di aha HUO MitIQ-n.~
Pro:pcny S..-.dRdI: ((X'Min.im~ o.e.i~ SIAI'IIWdI. f<:or RQ,jdcT.ti.J Re.h ab\liq,.
dart I/~UrlIOn).
f-m..l o.;..(.!~ or '.he ~\l mIlS'. be ~ ..... \Ih IN. HUD
~ip R~wl"e auls:nt'd '" I1\i.I flI"O."C4. The: R'1ftIC'll&Q"w"c wi!l be
"'l.l1abiclo uno! 1.."Ie O"-..e1lM ,,':e-crc ... .i:a::\ IO-j:''1I.t'.c dC"1::C!p."l',IT.! O{:}.e f:..,aj
~,iP'1 an~ ~f!.;.',c.mq\l.!."U:'II!:l'\U.
?roj=tRcn~AHa~"'\l&.-cri~ t.l t."'e tme:.r..lo!S 4, 0';'2,000 _
Iu.I heel. IllocllUld 1.:l1.'UJ: pmjr.:l ar.d ...... .1l be. .,'aiLablr rot' !]-,( ii!~ cf t.\'.~1
COfId..itior.a:J Comm.ilm~11I.nd 0{ 111)' F:rm Comm-it:7lO1l.h=n..&l1C! !.lIS"...l~
Y;:;u: F.irm C::rnm.itmcr\J. IppL.ic.&liOll rn.~1 be Nhmitl;cd '111-11:1in ! 10 4",
r~llO;""UlI: lo'lc:. Q'~ of 11.i.s lc:.~, otl1e, ..... 1Se lha Cl'I',anjooll Ccrr.r.ojlm~H ,.,.;JJ
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Ma~ 10. 199)
M!'. Kenneth Schrei ber
Director of Plaru\.ing and CommurJt)' Environment
Cit)' of Palo Alto
P. O. Bo, 10250
Palo Alto, Cahfor.tia 94303-0862
Re.: R~que5tad Dra ..... do\\'flS of Housing Resenoe F:.mds Prior to, lur.e 1.
1993, fo, l)'ttOn IV
D-...tr Mr. Scb~j~r:
A. Amounts Requesto<l
The PWJ!ose of this loner i. to re«UeSl $163,000 in drawdowns on the
Housing reserve Funds committed to Community HOUiing. In¢., for
Lytron IV. Si= HIJD has i,SIlo<! • $5,450.900 CaDditional Commitment,
thi.! req"'" i, made in the framework of. ""'u~ fi=ial outlook for the
project. These are the i~ms that Si\'e rise ::0 t..'1e drawdo~11 !lelX!:
III
[l]
l'nrthaoe OptjO<l Fee $100,000
The Option Ag!cement for the purchase of to" .i~ requi res a
Pw<hase Option Fee ofSl00,OOO \0 De pale by June I, 1993.
Copy of the Option Agreement hal ~n fomis.he<l your office.
Honoe, we request WI $100,000 ~ ~leaBCd I1J CHI in time to
make this payment by June J, 1m.
RelocatiOD Expenses $ 63,000
The budget for estirr.ated relocatioc r;xyenses are as follows:
• l'lIymeats to Relocated HousehQId..
• Relocotioc CODSUItaGI
• ~!!sceIIaneollS F,xpeDSeS
Total
S 46,860
13,200
2.940
$ 63,000
Reiocation e~ n&es. will be l"c;urrtd before June. \Ve re que s.t tile
4\'ailabilil)i of $63,000 by June 1, 1993.
AnA~HMENT C
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Mr. K.nneth Schreiber
May 10. 1m
Page 2
.... ,.~". . I
B. Situ!iOll Report on HL'D Funding
Copy of the May 6. 1993. HUD Conditional Commi!!e<O has be<n provided to your om",. Th,s
progressic:m is infof"ITlative:
HL'D lDcrease e •• r Bo. ..
Funding AmOunt fl.'1
• Baw. Original HE)
R.esen'atJO!l Dr
Funds 3-91 S 3,118,200
• CHI EstmIau in
Roquest for
Housing a....,..
FlIDds 9·91 4,6S0 ,000 $1,471,800 46.3%
• CondlllolW
Commitment 5+93 S,45G.900 2,212,700 71.5%
The ne~: Commitment from HVD will be the. Fim Commitment. That will be t.1e conc!u!;ive
figu..'":, based upon the construction bidJ. a.nd rata! HL"D revi.e.ws A"'ld de~rmL.'1atioru. ,,",'e expect
to go to bid ic about th'e weeks, i...Ild anticipate a loan closlng in AUglolst 0: September, at which
time v.-e will need a release of th~ bali..'1Ce of the Housing Reserve Funds r.::qJired for !h~
projocL
C, Situation RepDr! on no of H ou.<ing Rose ... Funds Committed to L)tton IV
Per the n\llIlbers now at hand. me esti!IlS!ed total draw on Ho,sing Reserve funds is S3!6.25D. in
comnut to the City" minimum commitment of 51.000.000 plus the additional $450.000 avai"'l.
upon showing of need and perforrnaru:e. However. il should be emr'rwiud that co,t in<r ... ""
may well OCCU/, and the final drawdov'll moch hiBh., ~"an the $386.250 c"rr.mly .,\:mo:ed,
The following fiIlU"S show how the 5386.250 estimate is dev.ioped:
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o
~tt~(h;rent C
Mr, Kei'u1e:.h Schreiber
).fay !O, 1993
Page 3
U",. of Fund<
Dcve lopment Co.s.t
La."l(! Indebtedness
Working Capital
Offs1te &. Demolition Costs
Est. of HL1>-Roquired Escrow for Maintalnilli
~ss Am.nid .. (balconi .. , etc.)
Est. Exp. on B •• , Parldng Lot
Total
Sool'Ce.!l c r Funds
HUD Capital Adva.'lCe
CommQnity Housing, Inc.
Palo AJto Houling Corporation
Comm, Development Block Grant
HOUSing Rese,ve
Total
D. CHI Performance
S 4,550.285
l,S74,000
25,000
44,!65
25,000
20 ()()()
S 6,239,150
S 5,450,900
202,000
100,000
100,000
385.250
$ 6,239,150
We offer W$ information on how CHI has endeaVOred !O maximize HUD funding aod reduce
proj<c< cos ...
1. Maximizing HUn Funding: The Conditionaf Commitment Application re,quested a
Capital Advance of 55,999,900. At $5,450,000, the Conditional Commitment has jumped
7\.5% over tll. orig;r",) Capital Advance reserved by HUD. In addition, the Project
Rental Assistance Authority bas been increased 10 $4,902,000, up 7.6% from to. original
53,802,000.
-,.
_Att<3c~rTle~t C
Mr. Keruleth Sch..~iber
May 10, 1993
1'ag.4
2. Saving Money rID the Proir . ."cc Much efto" has gone into saving money on Lytton iV. as
s..hO'\\"TI by t.."tis, par..iaJ list of economies:
11 R.oof bas. been eiosed in to climil"'.Jtte the trough.
2) USS e~pensivc exterior l'I'.ateria.l: Origjnally~ the exterior was wood sidini
en floor; I and 2, and single, on floor 3. These have been rtplaced by
han!board, with 1"1' siding 0" floors I and Z, and vertical groove on
floor 3.
3) Brick pavers h.ove been replaced with in~rlockl"8 stamped concrete, at a
,"vings of .bout Sll/sf.
4) Microwave sttwes and d:ishv.'ashers ha .... e been el i mi r..alOd.
5) The cone, .... walkway and the benches or. the u.st and scuth ,ides of ~~.
building have been replawl with a mai!llen>n<:e path.
6) The treilis over the surface parldng bas beell reduced in oi ...
7) Flow ,rudie, proved that a new sewer is net neecI:4 00 Everett.
S) Runoff caJcs show &.at it is not MCelSU)' to build a storm sewer an
Everett,
9) We ~"ied to save about SBO,CXXJ by usiTli el<ctric baseboard heating rather
~"an gas wall hea~rs. The Life·Cycl. Cost Analysis we oornmissloced
r'"''P~:ted electric basebo&td, but HUD did n.ot agree,
10) The contractor will be making every effort to save money, per his letter of
11-14-92. attaoh.d. He attended th. City Couce" hearings, and Lo,,,,fo,,,
hal fl:s:·hand knowledge of the City's intere,t in !-js performance.
11) We "quested of HUD a more equitab~, High COSt Adju'tmen! for Palo
Alto. Copy of O'"r 11-16-92 request i, ,-,"",hod.
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Mr, K~n."'ieth Schreiber
May 10, 1993
Page l
b. ~ft COSY
o P.,ttachment C
1) Extensive s:udy and negotiations reduced archltu:rure/engineering: fee$ by
$SI,OOO.
2) !'rinting of bb. prints, ."', i, being paid directly by CHI, to save mzrl-ups
of 15%.
3) Archilect', consuitants are paid directly by CHI to save portion of rn3!lrup.
The CQmbir.ation of City aDd Sponsor funds flUs the g.p between total p:'Ojec[ cost a.'ld HUD
Copital Advance, i. •.• that ponion of total p:'Oject <051 1haI H1.1D .. ill nat fund, Whee
dilbursements are mode, City al'd Sponsor fund •• re used first in their entirety b.fore Ht:D
releues Vly Ca9itat Adva.nce monies.
W. ,,<mid approcio!e h very much if !ha requOS!ed dl'awdov.'llS can be made ... Hohle when
ilOOded. Please cali upon u. if "'" can provide ""y furu:er information.
SiI!O!'rtly,
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BIoi: W. Stewart, lr.
Prnic!,nt
E.nc1~u!'e5
cc; Mr. James Gilliland ('o\"/enc.)
Ms. CatheriM Siegel (wlene,)
Mr. E.M. Schaffran (wlenc.)
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eYf:f1 dime;, WI Jet. • sujlpOlUbl. i"","," in the HCF ",ould b< .'Ipf.!. SC. tho pU"!,,," of ,\Us
!ctt.:t!' it tD rcquea:: 1ft, tlvn~ il.djtJ.Itm.:!l1 or1he liCF.if j'Wti!=i, in re[a.a.!2:ft CO otMr eam:on\1Z\iriu.
The Lyu:m TV aN. limie ",,,lwtluld b. i" .. cued $,n,IU-'.I'X.-iI p;mod wit~ Al.imce..
CowIt)'. II pamci With SI~ "<n<l>cQ ... 'I.e Incro ... wC\lld b. $214,.11 -•• , ~.
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olIO tile ....... the HCF for Pile AI'" shc' .. ld b ... lout <m I par '",'h AIo",.a County.
n. fCOlICIl'liCS of Plio AI", .:Id So",. Clara '''''"I)' hell''''''' I~' ..... The San )0.;, l"/.'.SA
liastb for '\I~ry low income ,1'e {he: 'htg>.nt 0111"'" 1.oc;Ility WitMn the SFAO. t.aru! voiluea,re
'~lIrnr. e., .• the HtJO Ipp,-,isal Eor tho Lyt:on ]V _1I. ii kS Pu "Iuo", roct, Sili<o" v.u..y
toMtN.."'I!n •• :OItI "" IIlgll. an6 Palo AI'" is the bl:tllp"co 01 Sili<cn VaUey. ne"', • pooltt ...
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IiCP'J ind _lis" !hmI II oppropn.a". Th&nlI you.
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