The URL can be used to link to this page

Home My WebLink About09A HA34970 - Addtl InfoPALM DESERT HOUSING AUTHORITY MEMORANDUM COMMUNITY DEVELOPMENT DEPARTMENT TO: Honorable Chairman and Members of the Authority Board FROM: Ryan Stendell, Director of Community Development DATE: February 9, 2021 SUBJECT: Action Calendar, Item No. 9, Consideration for Approval to Deliver a Notice to Terminate Contract No. HA34970 with Allied Real Estate Partners, LLC, a California Limited Liability Company, Regarding Vacant Property Owned by the Authority, known as APN 622-370-014 Attached please find a letter from Allied Real Estate Partners, LLC ("Allied RE") dated February 8, 2021 requesting the Palm Desert Housing Authority Board's ("Authority Board") consideration to support additional extensions to the lease agreement and entitlements for the Arc Village Project. Allied RE is anticipating based on California Housing and Community Development Department (HCD) last correspondence, that HCD will announce awards by the end of February, providing an opportunity to submit a 4% Low -Income Housing Tax Credit (LIHTC) application by May 13, 2021 for consideration during the August 11t" Committee meeting. Staff prepared the request based on prior direction from the Authority Board members. Should the Authority Board consider and elect to extend the lease agreement with Allied RE, staff is available to complete the necessary steps and related documents necessary to facilitate the action. ATTACHMENTS: 1. Allied RE Lease Extension for Arc Village Apartments Development Letter (dared February s, 2021) 2. California Tax Credit Allocation Committee (CTCAC) 2021 Proposed Program Schedule & Deadlines cc: Janet Moore, Director of Finance Grace M. Rocha, Acting City Clerk Jessica Gonzales, Senior Management Analyst AKALLIEDARGENTA NJV Ached Real Estate Partners, LLC Allied Affordable Housing, LLC Argenta Construction Group, LLC Argenta Property Management Group, LLC February 8, 2021 Mrs. Jessica Gonzalez City of Palm Desert Palm Desert Housing Authority 73-510 Fred Waring Drive Palm Desert, CA 92260 RE: Lease Extension for Arc Village Apartments Development Dear Mrs. Gonzalez, I submit this letter on behalf of the Arc Village Development Team asking for the City Council's support in extending the lease agreement and entitlements approved on March 11, 2019 and in September 2020. As identified at the time, the last funding request was submitted to the California Housing and Community Development Department (HCD) in January 2020 for HOME funds. Award announcements were expected May.`June 2020; however, due to the Pandemic and HCD staff turnover the award announcements have not yet been made. We understand how frustrating this process has been for all of you, as— it has been equally frustrating for Allied Real Estate Partners, LLC (AREP). However, we are hopeful that we can secure the HOME funds (once announced). Based on conversations with HCD following the release of the initial application scores, AREP is optimistic that Arc Village is in a strong position to secure HOME funds. We understand that City Council said this was the "last time," which we understood as being our last shot to secure funding. We hope the Council waits for the announcement we have all been anxiously expecting. There has been too much time and resources invested by everyone involved with the project to dismiss the opportunity to at least hear the award announcements and secure the HOME funds. If Arc Village is not one of the awardees we will move on; in the meantime, AREP remains highly committed to this project and committed to waiting for award announcements. The last email we got from Nicole McCay at HCD stated the following: "Yvonne, yes it truly has been a difficult year, we continue to slowly push forward on getting our projects recommended for awards. We will be finishing the recommendation and notification process by the end of February. We thank you for your patience during this challenging time." Inconsideration of the truly unique circumstances of the pandemic, the obstacles faced, the effort expended, and 409 Santa Monica Blvd, Suite E www.alliedargenta.com OKFICE 310 394 9090 Santa Monica, CA 90401 FP 310 394 3030 ALLIEDARGENTA XF Allied Real Estate Partners, LLC Allied Affordable Housing, LLC Argenta Construction Group, LLC Argenta Property [Management Group, LLC AREP's unwavering commitment to this project, we hope the Council will share that patience as well. Enclosed is a schedule from CTCAC that we are reviewing in order to get a sense of timing for the 4% LIHTCs after the HOME funds are announced. Assuming that HCD makes awards within the next few weeks, we would plan on submitting the 4% LIHTC application by May 13, 2021 for consideration during the August 11'h Committee meeting. Unfortunately there is nothing we can do, but follow the timing and calendar dictated by the State which would be the case for any such development. AREP is committed to this project and, like the City, has seen this application for HOME funds as our last attempt to move this project forward and make Arc Village a reality. Thank you for your continuous support and guidance. We hope that the Council will consider extending the lease to allow us all the opportunity to see whether the project will be awarded HOME funds followed by an allocation of 4% LIHTCs. Should you have any questions you can reach me at (520) 270 4365. Sincerely, +a� Yvonne Delgadillo VP, Community Development 409 Santa Monica Blvd, Suite E www.alliedargenta.com OFFICE 310 394 9090 Santa Monica, CA 90401 FP 310 394 3030 CALIFORNIA TAX CREDIT ALLOCATION COMMITTEE (TCAC) 2021 Proposed Program Schedule & Deadlines" January 15, 2021 Committee Meeting January/February 2021 Application Workshops March 8, 2021 First Competitive Application Funding Round Deadline April 28, 2021 Committee Meeting For Non -Competitive 4% Tax Exempt Bond Applications received by TCAC no later than 214121 June 16, 2021 Committee Meeting - First Funding Round Awards Non -Competitive 4% Tax Exempt Bond Applications will not be considered at this meeting July 1, 2021 Second Competitive Application Funding Round Deadline August 11, 2021 Committee Meeting For Non -Competitive 4% Tax Exempt Bond Applications received by TCAC no later than 5/13121 September 29, 2021 Committee Meeting - Second Funding Round Awards Non -Competitive 4% Tax Exempt Bond Applications Will not be considered at this meeting December 8, 2021 Committee Meeting For Non -Competitive 4% Tax Exempt Bond Applications received by TCAC no later than 919121 `*ALL MEETING DATES AND APPLICATION DEADLINES ARE SUBJECT TO CHANGE. November 18, 2020