For City Council and Rialto Housing Authority Meeting February 11, 2025
TO: Honorable Mayor and City Council and Rialto Housing Authority
FROM: Tanya Williams, Acting City Manager
AUTHOR: Colby Cataldi, Director of Community Development
Title
City Council/Rialto Housing Authority to adopt RHA Resolution No. 01-25 to consider the loan modification for the Citrus Grove Renovation Project.
(ACTION)
Body
RECOMMENDATION
For Rialto Housing Authority to consider the loan modification for the Citrus Grove Apartments project and adopt RHA Resolution No. 01-25 authorizing modifications to the Citrus Grove residual receipts loan and approving certain documents in connection therewith.
BACKGROUND
1432 North Willow Drive - Citrus Grove Apartments (formerly known as Willow-Winchester Condominiums)
In 2005, the Rialto Housing Authority (RHA) entered into an Affordable Housing Agreement with the Southern California Housing Development Corporation to acquire, renovate, and convert a 152-unit condominium complex into affordable rental units. The property is located on Winchester Drive, Clifford Street, and Millard Avenue, west of Willow Avenue. The project received $14,754,722 in funding at a 3% interest rate. Loan repayment was structured through a residual receipts mechanism, which allocated a share of the developer's net cash flow in proportion to other loans financing the project. The investment aimed at removing a crime-ridden condominium complex overrun by local gangs, violent crime, boarded-up and abandoned units, blighted conditions, and to create affordable housing units in the City, with the understanding that loan repayment would be nominal.
Under the agreement, the developer committed to leasing at least fifty percent (50%) of the units to very low-income (30% of area median income (AMI)) households and the remaining units to lower-income (50% of AMI) households, all at affordable rent levels. The affordability period was set at a minimum fifty-five (55) year...
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