CIC Resolution 98-73COMMUNITY IMPROVEMENT COMMISSION
OF TI-IE
CITY OF ALAMEDA
RESOLUTION NO.98 -73
ALLOWING SUBORDINATION OF LOANS FOR DOWN PAYMENT
ASSISTANCE IN CONNECTION WITH A PILOT PROGRAM TO PROVIDE
ASSISTANCE TO VERY LOW, LOW AND MODERATE INCOME HOME -
BUYERS FOR PROPERTY LOCATED WITHIN THE BUSINESS AND
WATERFRONT IMPROVEMENT PROJECT ( "BWIP ") AREA
WHEREAS, in July 1996, the City of Alameda adopted a home ownership goal
for the City of 60 %; and
WHEREAS, toward the implementation of this goal, in July 1997 the City
Council approved a pilot Down Payment Assistance Program to create a revolving fund to assist
very low, low and moderate income households in purchasing a first home through provision of
loans of up to $10,000 at 5% simple annual interest with interest accrual and repayments deferred
for the first five years for down payment and closing costs; and
WHEREAS, the Community Improvement Commission ( "CIC ") intends to
implement the pilot Down Payment Assistant Program and approved the program, and the
appropriation of certain BWIP Housing funds for use within the Business and Waterfront
Improvement Project ( "BWIP "), at its regular meeting on January 20, 1998; and
WHEREAS, both the City of Alameda and the Community Improvement
Commission ( "CIC "), in order to implement this goal, also each approved a Community
Assisted Shared Appreciation ( "CASA ") Homebuyers Pilot Program to develop and administer a
shared appreciation pilot program for very low, low and moderate income eligible homebuyers
and manage the resulting loans, at their regular meetings on January 20, 1998; and
WHEREAS, under the CASA Program the City and CIC will also use BWIP
Housing funds available from in -lieu inclusionary housing fees paid by Kaufman and Broad per
the Disposition and Development Agreement (DDA) dated October 25, 1996 as CASA Program
Funds to leverage funds from commercial lenders to provide assistance to qualified very-low,
low and moderate income homebuyers, with the Program Funds being secured by the property
as "silent" second and third mortgages; and
WHEREAS property purchased with BWIP housing in -lieu funds under the
CASA Program and the pilot Down Payment Assistance Program must be encumbered with an
affordability covenant recorded against the property pursuant to section 33413(b)(2) of the
Community Redevelopment Law; and
WHEREAS, section 334l3(b)(Z)(B)ofthe Community Redevelopment Law
(Health & Safety Code sectio 33000 et seq) authorizes a redevelopment agency to satisfy a
maximum of 50% of the total number of the redevelopment agency's inclusionary housing
requirements through the purchase of affordability covenants on existing housing; and
WHEREAS, pursuant to the authority under section 33334.14 of the Community
Redevelopment Law, at its January 20, 1998 meeting the CIC authorized the subordination of its
affordability covenants to the lien of a primary lender if affirmatively requested by the lender, in
order to aid very low, low and moderate income home purchasers in the BWIP area in obtaining
financing on favorable terms and conditions which would not be rea.sonably available without
subordination; and
WHEREAS, the CIC finds that the experience of Northbay Ecumenical Homes,
Inc., in att ing to secure one or more banks as a primary lender to p in a homebuyer
assistance program such as CASA has been that comparably favorable loan terms and conditions
are not reasonably available without subordination of the affordability covenant or other agency
liens (such as a loan provided through a Down Payment Assistance program) to that primary
lender.
NOW, THEREFORE, BE IT RESOLVED by the Community Improvement
Commission of the City of Alameda, acting by and through its Chair and members, as follows:
Section 1. The CIC hereby consents to subordination of its loan for Down P
Assistance tbrough the pilot Down Payment Assistance Program, to the primary lender, whether
secured by a first, second or third deed of trust, in order to secure favorable terms and loan
conditions to assist qualified very-low, low and moderate income homebuyers purchasing a
qualifying property tbrough the pilot Down Payment Assistance Program with BWIP
inclusionary housing in lieu funding assistance within the BWIP.
Section 2. The Chief Executive Officer ofthe Community Improvement
Commission of the City of Alameda is authorized to execute a subordination agreement,
approved as to form by the City Attorney, where necessary to implement the pilotDonm
Payment Assistance Program and as consistent with Community Redevelopment Law.
z.c\redcv\suhouBsen
I, the undersigned, hereby certify that the foregoing
Resolution was duly and regularly adopted and passed by the
Community Improvement Commission of the City of Alameda in special
meeting assembled on the 20th day of January , 1998, by the
following vote to wit:
AYES: Commissioners Daysog, DeWitt, Kerr, Lucas
and Chair Appezzato - 5.
NOES: None.
ABSENT: None.
ABSTENTIONS: None.
IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the
official seal of said Commission this 21st day of January
1998.
Dian elsch, Secretary
Community Improvement Commission
/
Ralph:Appez"z4to/',Atiair
- i
Community Improvement Commission