RDA Resolution 1994-15w*h 1
RESOLUTION RA 9*15
A RESOLUTION OF ThE LA QUINTA REDEVELOPMENT
AGENCY Authorizing PREPARATION OF AMENDMENTS
TO ThE DISPOSITION AND DEVELOPMENT AGREEMENT
BETWEEN ThE AGENCY AND E.G. WILLIAMS
DEVELOPMENT CORPORATION TO CONFORM ThE DDA TO
TAX CREDIT ALLOCATION COMMITTEE SUBMITTAL
REQUIREMENTS AND TIMELINES
WHEREAS, the La Quinta Redevelopment Agency the Agency") has entered
into a Disposition and Development Agreement with E.G Williams Development
Corporation the Developer") foi tbe provision of and development of affordable housing
units; and,
WHEREAS, the DDA specifically requires the Developer to construct and
operate 91 rental units for affordable senior housing the 1'Rental Housing11); and,
WHEREAS, the DDA contemplates that Developer will apply for, receive,
and use low income housing tax credits the Tax Credits") for part of the Rental Housing
financing; and,
WHEREAS, the Rental Housing may not be economically feasible for
Developer to finance without tax credits; and,
WHEREAS, the Tax Credit Allocation Committee TCAC), the State agency
responsible for the award and administration of tax credits, and the Internal Revenue Service,
have issued requirements and procedures for the application for, allocation, and use of the
Tax Credits, including requirements for preliminary reservation and a carryover allocation
Tax Credits; and,
WHEREAS, the Agency has determined that certain provisions of the DDA
conflict with TCAC and/or Internal Revenue Code requirements for the submittal of TCAC
applications, allocation of, and use of the Tax Credits.
NOW, THEREFORE, BE IT RESOLVED by the La Quinta Redevelopment
Agency as follows:
The Agency intends to cooperate with the Developer to meet all TCAC and Internal
Revenue Code Tax Credit requirements.
The Agency hereby instructs staff to prepare amendments to the DDA to
enable the Developer to meet TCAC and Internal Revenue Code Tax Credit
requirements, for consideration of adoption by the Agency by October 1,
1994. The major proposed amendments shall include the points set out in
Exhibit A" attached hereto and incorporated herein by this reference.
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Resolution No. RA 94-15
PASSED, APPROVED, AND ADOPTED this 19th day of July, 1994, by the
following vote:
AYES: Board Members Bangerter, McCartney, Pena, Perkins,
Chairman Sniff
NOES: None
ABSENT: None
ABSTAIN: None
STANLEY SNIFF**hairman\
La Quinta Redevelopment Agency
ATT T:
*SAUNDRA L. j-**retaay
La Quinta Redeve!opment Agency
APPROVED TO FORM:
p
DAWN HONEYWELL, City Attorney
La Quinta Redevelopment Agency
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w*h Reso1u*ion No. RA 94-15
EXHIBIT A"
A. Amendments to enable Developer to meet tax credit Carryover Allocation
requirements by December 1, 1994, in the event the Developer receives a preliminary
reservation of tax credits in the second 1994 TCAC application round:
1. Amendments DDA Conditions Precedent to Conveyance to enable the
conveyance of the Rental Area to Developer prior to December 1, 1994.
a. Amend the required threshold of tax credit approvals to an approved
preliminary reservation of tax credits DDA Section 329.8).
b. Amend the requirement that construction loan financing be closed
concurrent with conveyance of the property, in favor of financing being
committed. DDA Sections 210,329).
C. Eliminate Section 208.10 regarding the execution of a construction
contract for the construction of all Rental Area improvements prior to
conveyance of the Rental Area.
d. Eliminate requirement for Tax Credit Regulatory Agreement to be
executed and recorded as a part of the conveyance of the property
Section 329.8).
e. Amend the terms of the Rental Area Promissory Note such that the
Agency loan qualifies as an economic loan as opposed to a contingent
loan. Specific changes would relate to the forgiveness provisions of the
loan among others.
B. Amendments necessary to enable the Developer to meet construction and permanent
lender requirements:
1. Eliminate sections requiring construction and*or permanent loans to have deeds
of trust subordinate to TCAC and Agency regulatory and affordability
agreements Section 329.4).
2. Eliminate section requiring encumbrances to which the Agency Deed of Trust
is to be junior to have due dates later than the Agency Promissory Note
Section 329.7).
C. Amendments, if any, which would allow the disbursement of enough Agency funds to
meet the 10% Carryover Allocation requirement e.g., to Section 331).
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