CIC Resolution 98-74COMMUNITY IMPROVEMENT COMMISSION
OF THE
CITY OF ALAMEDA
RESOLUTION NO.98 -74
ALLOWING SUBORDINATION OF AFFORDABILITY COVENANTS IN
CONNECTION WITH THE CASA HOMEBUYERS 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, the City of Alameda and the Community Improvement Commission
( "CIC ") desire to develop 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; and
WHEREAS, the City of Alameda and CIC intend to implement the CASA
program through an agreement with Northbay Ecumenical Homes, Inc., as an agent of the City
and CIC, and approved the program and the form of agreement on January 20, 1998; and
WHEREAS, under the CASA Program the City and CIC will use three sources of
funding - -CDBG funds, HOME funds and 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 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 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 33413(b)(2)(B) of the Community Redevelopment Law
(Health & Safety Code section 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, section 33334.14 of the Community Redevelopment Law provides
that affordability covenants may be subordinated to the lien of a primary lender if the
redevelopment agency finds that such subordination is necessary because an economically
feasible alternative method of financing or assisting the units on substantially comparable terms
and conditions, but without subordination, is not reasonably available; and
WHEREAS, the CIC finds that the experience of Northbay Ecumenical Homes,
Inc., in attempting to secure one or more banks as a primary lender to participate 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 to that primary
lender.
NOW, THEREFORE, BE IT RESOLVED by the Community Improvement
Corrunission 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 affordability covenant to
the primary lender, where affirmatively required by the lender in order to secure favorable terms
and loan conditions to assist qualified very-low, low and moderate income homebuyers
purchasing a qualifying property through the CASA Homebuyers Pilot Program with BWIP
housing in lieu funding assistance within the BWIP area.
Section 2. The Chief Executive Officer of the 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 CASA Homebuyers
Pilot Program and as consistent with Community Redevelopment Law.
2.cAredev\casases
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.
Diane e sch, Secretary
Community Improvement Commission
RalphAPpezz'a:tbi Chair
Community- IMproVement Commission