Document:

Exhibit
10.32

 

FIRST IMPLEMENTATION AGREEMENT

 

TO

 

OWNER PARTICIPATION AGREEMENT

 

by and between

 

THE COMMUNITY REDEVELOPMENT AGENCY

 

OF THE CITY OF LOS ANGELES

 

“Agency”

 

 

and

 

 

SL NO HO, LLC

 

“Developer”

 

 

November, 2002

 

North Hollywood Redevelopment Project

 

 

FIRST IMPLEMENTATION AGREEMENT

 

This
FIRST IMPLEMENTATION AGREEMENT TO OWNER
PARTICIPATION AGREEMENT (this “Agreement”),
by and between the COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF LOS ANGELES, a public body, corporate and
politic (the “Agency”;), and SL NO HO, LLC, a California limited liability
company (the “Developer”) is
entered into as of the date of execution of this Agreement by the Agency. The
Agency and the Developer are sometimes referred to herein individually as a “Party” and collectively as the “Parties.”

 

RECITALS

 

The
following Recitals are a substantive part of this Agreement. Capitalized terms
in this Agreement have the meaning given to them in the Owner Participation
Agreement unless otherwise defined herein.

 

A.            The Agency and Developer entered
into that certain Owner Participation Agreement dated March 5, 2002 (“OPA”),
which is hereby incorporated by reference. Reference herein to the OPA shall
include any and all Attachments thereto.

 

B.            Pursuant to the OPA, the Developer is
obligated to design, finance and develop the Project on the Site.

 

C.            The Developer has requested and the
Agency has agreed to certain revisions to the Project and to the Schedule of
Performance.

 

D.            The parties are entering into this
Agreement for good and valuable consideration, the receipt of which is hereby
acknowledged.

 

NOW,
THEREFORE, the Agency and the Developer agree as follows:

 

1.             Project Description and
Phasing. Section 103 of the OPA is amended as follows.

 

a.             The first sentence of paragraph (a) “Subarea
A Improvements” of Subsection 103.1 is amended to read “The Developer shall
construct a residential complex containing approximately 450 units and
associated parking.”

 

b.             Paragraph (b) “Subarea B
Improvements” of Subsection 103-.1 is amended to read “The Developer shall
construct a retail and residential complex including approximately 280
residential units, approximately 122,500 square feet of retail and restaurant
space and a parking structure providing sufficient parking to comply with City
code requirements.”

 

1

 

2.             Scope of Development. The Scope of
Development and the Concept Plan that are attached to the OPA as Attachments No. 1
and 5, respectively, are amended as follows.

 

a.             The number of residential units to
be constructed in Subarea A is reduced from 554 units to 450 units.

 

b.             The number of loft and live/work
residential units to be constructed in Subarea B is increased from 247 units to
280 units.

 

c.             The retail floor area to be constructed
in Subarea B is reduced from 186,000 square feet to not less than 122, 500
square feet.

 

3.             Schedule of Performance. The Schedule
of Performance attached to the OPA as Attachment No. 7 is hereby amended
to provide that all items of performance that are required to be completed
prior to the start of construction shall be completed prior to the start of
construction for each Phase of the Project and shall be completed substantially
in the sequence provided in the Schedule of Performance but without reference
to specific deadlines for each such item.

 

4.             MTA Right of Way. The Developer
and the Agency shall negotiate in good faith to enter into a letter agreement
setting forth the rights and obligations of each with regard to the relocation
of the existing MTA Right of Way provided for in Section 406.2 of the OPA
and the landscaping and maintenance of the relocated MTA Right of Way, which
letter agreement shall be in accordance with the terms of the OPA as hereby
amended. Upon its execution by both parties, that letter agreement shall be
appended to this First Implementation Agreement and incorporated herein by this
reference.

 

5.             Limitation On Amendment. Except as
expressly provided otherwise in this Agreement, the OPA remains in full force
and effect, enforceable in accordance with its terms.

 

 

	
   

  	
   

  	
  DEVELOPER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SL
  No Ho, LLC

  
	
   

  	
   

  	
  a
  California limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  November 2002

  	
   

  	
  By:

  	
  /s/ Authorized Signatory

  
	
   

  	
   

  	
   

  	
   

  	
  Clifford
  P. Goldstein

  
	
   

  	
   

  	
   

  	
  Its:

  	
  Authorized
  Member

  
						

 

2

 

	
   

  	
   

  	
  AGENCY:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THE
  COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF LOS ANGELES, CALIFORNIA

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  November 2002

  	
   

  	
  By:

  	
  /s/ Authorized Signatory

  
	
   

  	
   

  	
   

  	
   

  	
  Jerry
  Scharlin 

  
	
   

  	
   

  	
   

  	
  Its:

  	
  Administrator

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ATTEST:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Authorized Signatory

  	
   

  	
   

  
	
   

  	
  Agency Secretary

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  APPROVED
  AS TO FORM:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ROCKARD
  J. DELGADILLO

  CITY ATTORNEY

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Authorized Signatory

  	
   

  	
   

  
	
   

  	
  Assistant/Deputy City Attorney

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  APPROVED
  AS TO FORM: 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  KANE,
  BALLMER & BERKMAN

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Authorized Signatory

  	
   

  	
   

  
	
   

  	
  Special Counsel to the Agency

  	
   

  	
   

  
							

 

3Exhibit 10.33

 

SECOND IMPLEMENTATION AGREEMENT

 

TO

 

OWNER PARTICIPATION AGREEMENT

 

by and between

 

THE COMMUNITY REDEVELOPMENT AGENCY

 

OF THE CITY OF LOS ANGELES

 

 

and

 

 

SL NO HO, LLC

 

 

North Hollywood Redevelopment Project

 

 

SECOND IMPLEMENTATION AGREEMENT

 

This SECOND IMPLEMENTATION AGREEMENT TO OWNER PARTICIPATION AGREEMENT
(this “Second Implementation Agreement”) is entered into as of December 12,
2003 by and between THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF LOS
ANGELES, a public body, corporate and politic (the “Agency”), and SL NO HO,
LLC, a California limited liability company (the “Developer”). The Agency and
the Developer are sometimes referred to herein individually as a “Party” and
collectively as the “Parties.”

 

RECITALS

 

The following Recitals are a substantive part of this Second
Implementation Agreement. Unless otherwise defined herein, capitalized terms in
this Second Implementation Agreement shall have the meaning given to them in
the OPA, as hereinafter defined in Recital A.

 

A.       The Agency and Developer entered into that
certain Owner Participation Agreement dated as of March 5, 2002, as
amended by that certain First Implementation Agreement to Owner Participation
Agreement dated as of November 18, 2002 (the “OPA”).

 

B.        Pursuant to the OPA, the Developer is obligated to design, finance and
develop the Project on the Site.

 

C.        Through this Second Implementation Agreement,
the Developer and the Agency intend to revise the description of the
improvements to be constructed on Subarea A and Subarea B; create two phases
for the construction of the Subarea B improvements; revise the Scope of
Development and the Schedule of Performance to make them consistent with the
provisions of this Second Implementation Agreement; clarify the Agency’s obligation
regarding the payment of tax increment; and make certain other clarifying
changes to the OPA.

 

D.        The parties are entering into this Second
Implementation Agreement for good and valuable consideration, the receipt of
which is hereby acknowledged.

 

NOW, THEREFORE, the Agency and the Developer agree that the OPA shall
be amended as follows:

 

AGREEMENT

 

Section 1.      The Development Site. The second and third sentences of Section 102:
The Development Site are amended to read as follows: “The Site consists of
Subarea A, Subarea B-l, Subarea B-2 and Subarea C and Subarea D, each of which
is illustrated and designated as such on the Site Map with Subarea B-l and
Subarea B-2 specified on the site plan attached to the Second Implementation
Plan as Attachment 1. A Subarea, as used in this Agreement, shall shall mean
Subarea A, Subarea B-l, Subarea B-2, Subarea C and/or Subarea D, as the context
requires.”

 

1

 

Section 2.      Subarea A Improvements. The first sentence of Section 103.1(a) “Subarea
A Improvements” is deleted and replaced with the following: “The Developer
shall construct a residential complex containing approximately 438 units and
associated parking.”

 

Section 3.      Subarea B Improvements. Section 103.1(b) “Subarea B
Improvements” is deleted in its entirety and replaced with the following:

 

“Section 103.1 (b) “Subarea B Improvements”. Subarea B
shall be divided into Subarea B-l and Subarea B-2 and the Developer shall
construct the Subarea B improvements in two phases. The Subarea B-l
improvements shall consist of approximately 60,000 square feet of commercial,
retail and restaurant space. The Subarea B-2 improvements shall consist of
residential complex including approximately 278 residential units and approximately
14 live/work units and a parking structure providing sufficient parking to
comply with City code requirements for both Subarea B-l and Subarea B-2.
Subarea B-l and B-2 are specified on the site plan attached to the Second
Implementation Agreement as Attachment 1.

 

Section 4.      Subarea C Improvements. The first sentence in Section 103.1(c) “Subarea
C Improvements” is amended to delete the phrase “42,000 square feet of retail
and restaurant space” and to replace the deleted phrase with the phrase “72,000
square feet of retail and restaurant space.”

 

Section 5.      Affordable Housing Requirements. A new sentence is added to the first
paragraph of Section 103(e)(l) as follows: “In no event shall the
Restricted Units include the live/work units constructed in Subarea B.”

 

Section 6.      Affordable Housing. Section 103.1 is amended to add a new Section 103.1(e)(4) Calculation
of Housing Subsidy to read as follows:

 

“(4)     Calculation
of Housing Subsidy. In
consideration of the recordation of the Affordability Covenants, the Agency has
agreed, in Attachment No. 8, Section II, to pay the Developer the
Housing Subsidy (defined as the amount required to offset the projected
reduction in revenue resulting from the recordation of the Affordability
Covenants against the residential units to be constructed on Subareas A and
B-2). The amount of the Housing Subsidy shall be determined as follows: On the
first (1st) day of the sixteenth (16th) full month following Completion of all residential units in a
particular Subarea, the Developer (in conjunction with the Agency), utilizing
the data from the then most recent two (2) months of operation, shall
perform the following calculations:

 

(i)         The
Developer (in conjunction with the Agency) shall determine the average annual
market rent per unit being charged for a particular category of occupied
residential units in a particular Subarea which are not Restricted Units. “Occupied,”
as used herein, shall mean any unit that has been occupied during the most
recent two (2) months of operation for at least one (1) day. The
categories of residential units to be considered include one bedroom, two
bedroom and residential loft units. Once the average annual market rent per
unit has been calculated for each category of residential units which are not Restricted
Units, the Developer (in conjunction with the

 

2

 

Agency) shall multiply
the average annual market rent by a occupancy factor of ninety five percent
(95%) and then multiply that number by the total number of Restricted Units in
the corresponding category in the applicable Subarea. The sum of the product of
each such multiplication shall be the total annual market rent for all of the
Restricted Units in that Subarea. Such total annual market rent for the
Restricted Units in that Subarea shall hereafter be referred to as the “Annual
Market Rent for Restricted Units.

 

(ii)        The Developer shall
subtract from the Annual Market Rent for Restricted Units in a particular
Subarea, the maximum allowable annual rent for all the Restricted Units, based
on the maximum Affordable Rent allowed to be charged on the Restricted Units
pursuant to Section 1(e)(l) of the OPA, multiplied by a ninety five
percent occupancy factor (the “Annual Affordable Rent”). The difference shall
hereinafter be referred to as the “Annual Rental Shortfall. Since the
Affordability Covenants will provide that the Restricted Units must remain
available at Affordable Rent for not less than forty (40) years from
Completion, the Developer (in conjunction with the Agency) shall project the
Annual Rental Shortfall for the required forty (40) year period by assuming
annual increases in the Annual Market Rent for Restricted Units of three and
one-half percent (3-1/2%) and by assuming annual increases in the Annual
Affordable Rent of two and one-half percent (2-1/2%). For each of the forty
(40) years in the projection, Developer shall establish an Annual Rental
Shortfall by subtracting the adjusted Annual Affordable Rent from the adjusted
Annual Market Rent for Restricted Units.

 

(iii)       Once the Annual Rental
Shortfall is projected for the 40 year period, the Developer (in conjunction
with the Agency) shall discount such stream of Annual Shortfalls to its present
value by utilizing a discount rate of eight and eighty seven one hundredths
percent (8.87%). Such present value shall constitute, for purposes of this
Subsection 103.1(e)(4), the Housing Subsidy.

 

The Agency shall
cause the Housing Subsidy to be paid to the Developer, allocated by Subarea
based on the total number of Restricted Units in each Subarea, through a
combination of (y) a one-time cash payment, in the amount of Eleven
Million Two Hundred Thousand Dollars ($11,200,000) (the “Cash Payment”),
consisting of Five Million Dollars ($5,000,000) of “HOME Funds” and Six Million
Two Hundred Thousand Dollars ($6,200,000) of “Currently Available Housing Trust
Funds,” in each case as such terms are defined in Attachment 8, Section II,
A and B, respectively, of the OPA, and (z) annual payments within an amortization
period that terminates at the end of Agency Fiscal Year 2028-2029, for the
principal amount of the balance of the Housing Subsidy remaining after the Cash
Payment has been made, together with interest on such principal amount at the
rate of six percent (6%) per annum (the “Annual Payments”). A total of one
hundred forty three (143) Restricted Units shall be constructed within the
combined areas of Subarea A and Subarea B-2. One hundred fifteen (115)
Restricted Units shall be constructed in Subarea A. Twenty eight (28)
Restricted Units shall be constructed in Subarea B-2. The Annual Payments shall
consist of an amount equal to the Site-Generated Housing Trust Funds and to the
extent necessary from the North Hollywood Housing Trust Funds, in each case as
such terms are defined in Attachment No. 8, Section II, C and D, of
the OPA. If the Agency elects not to make or elects to reduce the Annual

 

3

 

Payments, then the number
of Restricted Units shall be reduced by calculating the number of Restricted
Units which must be returned to market rate to replace the Agency’s payment.
The Agency shall make a good faith effort to notify the Developer at the
earliest practicable time of the Agency’s intention to reduce the Annual
Payments. Once the number of Restricted Units has been reduced due to the
failure to pay the Housing Subsidy, the Developer’s obligation to provide the
Restricted Units shall be forever reduced, the Agency obligation to pay the
Housing Subsidy shall be recalculated using the procedure set forth in this Section 103.1(e)(4) and
the Developer shall not be required to increase the number of Restricted Units
thereafter. If after calculating the Housing Subsidy pursuant to this Section 103.(1)(e)(4),
the Agency and the Developer determine that the Cash Payment exceeds the
Housing Subsidy, the Developer shall reimburse the Agency the amount of the
Cash Payment in excess of the Housing Subsidy. The Developer shall make the
reimbursement within fifteen (15) days following the determination of any
excess Cash Payment. The Agency obligation to make an Annual Payment under this
Section 103.(l)(e)(4) is subject to the Developer’s timely payment of
property tax for the portions of the Site owned by the Developer. To the extent
the Developer fails to pay its required property tax for a particular year in
which the Housing Subsidy Payment is due, the Agency’s obligation to make a
Housing Subsidy Payment shall be reduced by the Site-Generated Housing Trust
Funds which would have been received by the Agency for that year.

 

The HOME Funds
shall be allocated to the Restricted Units in Subarea A. The Six Million Two
Hundred Thousand Dollars ($6,200,000) of Currently Available Housing Trust
Funds shall be allocated across the Restricted Units constructed on Subarea A
and Subarea B. The HOME Funds and the Currently Available Housing Trust Funds
shall be disbursed on the Developer by the Agency as follows. Three Million
Dollars ($3,000,000) of the HOME Funds shall be paid to the Developer as of the
close of escrow for the conveyance to the Developer of the Acquisition Parcels
in Subarea A. The remaining Two Million Dollars ($2,000,000) of HOME funds
shall be paid to the Developer as reimbursement for Subarea A costs at the later
of (i) April 1st,
2004 or (ii) the date of the issuance of the building permit for the
construction of Subarea A Improvements. The prorated payment of Currently
Available Housing Trust Funds for Subarea A in the amount of Three Million Nine
Hundred Sixty Thousand ($3,960,000) shall be paid to the Developer at the later
of (i) the funding of the HUD Loan (or the date the Developer advances
Fourteen Million Dollars to the Agency in lieu of the HUD Loan) or (ii) the
date of the issuance of the building permit for the construction of Subarea A
Improvements. The prorated payment of Currently Available Housing Trust Funds
for Subarea B constituting the balance of the Currently Available Housing Trust
Funds shall be paid to the Developer at the later of (i) the funding of
the HUD Loan (or the date the Developer advances Fourteen Million Dollars to
the Agency in lieu of the HUD Loan) or (ii) the date of the issuance of
the building permit for the construction of Subarea B Improvements. The
Affordability Covenants referenced in Section 103.1(e)(l) shall
reflect that Subarea A shall contain no less than thirty six (36) two bedroom
units and four (4) one-bedroom units restricted as HOME assisted units. No
fewer than eight (8) Home assisted two-bedroom units shall be available to
Very Low Income Households; no fewer than twenty-eight (28) two bedroom units
shall be available to household earning no more than sixty percent (60%) of the
area median income for Los Angeles County and

 

4

 

no fewer than four (4) HOME
assisted one bedroom units shall be available to Low Income Households.”

 

An example of the
procedure for the calculation of the Housing Subsidy and the Annual Payments is
attached to this Second Implementation Agreement as Attachment 2.

 

Section 7.      Project Phasing. The
paragraphs addressing the Phase 1, Phase 2 and Phase 3 in Section 103.2
Project Phasing are deleted in their entirety and replaced with the following:

 

“In Phase 1, the
Developer shall develop the Subarea A improvements as described in Section 103.1(a) and
as further specified in the Scope of Development within Subarea A. Commencement
of Construction of the Subarea A improvements shall occur no later than April 1,2004.

 

In Phase 2, the
Developer shall develop the Subarea B-1 improvements as described in Section 103.l(b) within
Subarea B-1. The Developer shall commence construction of the Subarea B-l
improvements not later than January 1, 2005. The Developer shall develop
the Subarea B-2 improvements as described in Section 103.l(b) within
Subarea B-2. Commencement of Construction of the Subarea B-2 improvements shall
occur no later than July 1, 2004.

 

In Phase 3, the
Developer shall develop the Subarea C improvements as described in Section 103.l(c) within
Subarea C. Commencement of Construction of the Subarea C improvements shall
occur no later than April 1, 2005.”

 

Section 8.      Parking Covenants. A
new Section 103.3 Parking Covenants shall be added as follows:

 

“In addition to
the conditions set forth in Section 506.1, as a condition of the close of
escrow on the parcels comprising Subarea B-2, the Developer shall record a
covenant as an encumbrance against the Subarea B-2 parcels granting the owner
of the Subarea B-l parcels exclusive use of parking spaces within the parking
structure to be constructed on the Subarea B-l parcels in such amount which
meets the City code parking requirement for an approximately 60,000 square
retail development. In the event the Agency exercises its option rights to the
Subarea B-l parcels pursuant to Section 1004, the value of the parking
covenants, if any, shall be included when valuing the Subarea B-l parcels.”

 

Section 9.      Commencement of
Construction. A new definition of shall be added to Article 2 as
follows in the appropriate alphabetical order:

 

““Commencement of
Construction” means for each Subarea the commencement of grading and other site
preparation activity on that Subarea.”

 

Section 10.    Agency Approval of Plans,
Drawings, and Related Documents. Section 306 shall be amended to add
the following as the final sentence to the Section: “Once the

 

5

 

Agency has approved a
progressively more detailed set of drawings and specifications for a Subarea,
all prior less detailed drawings and specifications submitted for that Subarea
upon which the approved subsequent submittal was based shall be deemed
approved, if such previous submittal was not approved in writing by the Agency.”

 

Section 11.    Offsite Improvements. Section 310.1
Dedication of Property shall be deleted and replaced with the following:

 

“Section 310.1.  Dedication
of Property. The Developer shall dedicate property required from Subareas
A, B and C to allow for the widening of Lankershim Boulevard, Chandler
Boulevard, and Weddington Street. The property to be dedicated is depicted in
an approximate manner on the site plan attached to the Second Implementation
Agreement as Attachment 1. The Developer shall construct all public
improvements along Fair Avenue, Cumpston Street and Weddington Street as
required by the City within the time specified in the Schedule of Performance.
To the extent approved by the City, the Developer shall be entitled to utilize
the dedication of said portions of the Site for any applicable fees, credits,
conditions, mitigations, mitigation measures or other City requirements
otherwise allowed by law.”

 

Section 12.    Community Outreach Plan.
A new Section 318.2.5. is added as follows:

 

“Section 318.2.5       Community Outreach Plan.

 

A.        Submission of Plan: Not
later than sixty (60) days following the date of this Agreement for purposes of
Subarea A (and at least sixty days prior to the Commencement of Construction
for Subarea B-l, Subarea B-2 and Subarea C), the Developer shall meet with the
Agency’s Office of Contract Compliance to hold a preconstruction meeting.
During the preconstruction meeting, the Developer shall be provided with the
policies and procedures of the Agency regarding the MBE and WBE outreach
efforts, including the development of a Community Outreach Plan. The Developer
shall be provided samples of Community Outreach Plans which have been approved
by the Agency. Prior to commencing construction of the Improvements the
Developer shall submit the Community Outreach Plan for the Project to the
Agency Administrator or his/her designee for approval which shall not be
unreasonabley withheld. The Community Outreach Plan shall set forth the methods
the Developer will use to comply with this Section 318.2.5. Upon receipt
of the Community Outreach Plan, the Agency shall, within thirty (30) days,
approve or disapprove the Community Outreach Plan, or provide to the Developer
a statement of actions required to be taken in order for the Community Outreach
Plan to be approved. In calculating the percentages in Section 318.2.5.B,
all contracts related to the grading and clearance of a Subarea shall be
included when calculating the applicable percentages. If the Agency fails to
respond within such thirty (30) day period, the Community Outreach Plan shall
be deemed approved by the Agency. Except for Subarea A, the Developer shall not
Commence Construction in any Subarea unless the Community Outreach Plan has
been approved or deemed approved by the Agency.

 

B.        Contents of the Community
Outreach Plan: The Community Outreach Plan shall include, at a minimum:

 

6

 

1.         Estimated total dollar
amount (by trade) of all contracts and subcontracts to be let by the Developer
or its prime contractor for the Improvements;

 

2.         List of all proposed
M/WBEs that will be awarded a contract by the Developer or the prime
contractor(s);

 

3.         Estimated dollar value of
all proposed M/WBE contracts;

 

4.         Provide documentation
demonstrating that reasonable efforts were made by the Developer and/or prime
contractor to meet the Agency’s combined goal of twenty-five percent (25%) for
MBE and WBE participation ONLY IF COMBINED GOALS ARE NOT MET;

 

5.         Evidence of M/WBE
Certification of all firms listed as MBE or WBE in the Plan;

 

Firms purporting
to be M/WBE do not require M/WBE Certification if their contract amount is less
than Twenty Five Thousand Dollars ($25,000). Any firm for which the contract
amount exceeds Twenty Five Thousand Dollars ($25,000) and which is not
certified by the City of Los Angeles may not be considered an MBE or WBE for
purposes of this Agreement.

 

6.         Description of the
actions to be taken to meet the project area resident and business utilization
objectives.

 

7.         Such other information
and documentation with respect to the foregoing objectives as the Agency may
reasonably deem necessary.

 

C.        General Information.

 

1.         During the construction
of the Improvements, the Developer shall provide to the Agency such information
and documentation as reasonably requested by the Agency.

 

2.         The Developer shall
monitor and enforce the affirmative action and equal opportunity requirements
imposed by this Agreement. In the event the Developer fails to monitor or
enforce these requirements the Agency may declare the Developer in default of
this Agreement (subject to the notice and cure rights provided in this
Agreement) and thereafter pursue any of the remedies available under this
Agreement.

 

Section 13.    Prevailing Wage. Section 318.3
(2) is deleted and a new Section 318.3(2) is added as follows:

 

“(2) Failure
to provide all reasonably requested records and/or provide access to job site
or worker: Five Thousand Dollars ($5000) per day, or portion thereof.”

 

7

 

Section 14.            HUD Loan. Section 402.1.1.(e) is
amended to add the following sentence to the end of the paragraph: “Upon the
Agency’s conveyance of the Acquisition Parcels in Subarea A to the Developer,
the Developer’s right to terminate this Agreement pursuant to this Section 402.1.1.(e) shall
be terminated.”

 

Section 15.            Developer Advance.
Section 402.6.1 Original Letter of Credit is deleted and replaced with the
following:

 

“Section 402.6.1                     Original
Letter of Credit. Provided the Agreement has not theretofore been
terminated pursuant to Section 1003, the Developer shall deliver to the
Agency cash or an irrevocable at-sight, standby letter of credit, first
approved in writing by the Agency as to form, content and issuer, in an amount
determined in the second paragraph of this Section 402.6.1 and otherwise
complying with the requirements of this Agreement (the “Original Letter of
Credit”).

 

The Original Letter of
Credit shall be provided in two phases. The first phase of the Original Letter
of Credit shall consist of an amount equal to the difference between the amount
of the Developer Advance attributable to Subarea A and Subarea B and the
immediately available Acquisition Funds, as established by the Agency based on
budgets prepared by the Agency and reviewed by the Developer. The amount of the
Original Letter of Credit for the first phase (consisting of Subarea A and
Subarea B) shall be an amount equal to the difference between Nineteen Million
Dollars ($19,000,000) and the Purchase Price, calculated as Twelve Million
Three Hundred Six Thousand Five Hundred Thirty Nine Dollars ($12,306,539). The
Developer shall deliver to the Agency a portion of the first phase Original
Letter of Credit currently with the purchase from the Agency of the Acquisition
Parcels in Subarea A. The Developer shall pay a portion of the Purchase Price
to the Agency at the close of escrow for the purchase of the Subarea A
Acquisition Parcels in the amount of Three Million Eight Hundred Thirty Two
Thousand Three Hundred Fifty Eight Dollars ($3,832,358). In addition,
concurrently with the close of escrow for the Subarea A Acquisition Parcels,
the Developer shall advance to the Agency as part of the Original Letter of
Credit the amount of One Million One Hundred Sixty Seven Thousand Six Hundred
Forty Two Dollars ($1,167,642). The balance of the first phase of the Original
Letter of Credit in the amount of Five Million Five Hundred Twenty Five
Thousand Eight Hundred Nineteen Dollars ($5,525,819) shall be provided in the
form of the Developer’s assumption of the Section 108 Loan for a total
Developer Advance under the first phase of the Original Letter of Credit in the
amount of Six Million Six Hundred Ninety Three Thousand Four Hundred Sixty One
Dollars ($6,693,461).

 

The second phase of the
Original Letter of Credit shall consist of an amount equal to the difference
between the amount of the Developer Advance attributable to Subarea C and
Subarea D, if applicable, and any remaining unencumbered Acquisition Funds, as
established by the Agency based on budgets prepared by the Agency and reviewed
by the Developer. The Parties acknowledge that sufficient funds have not been
identified to cover the costs attributable to Subarea C and Subarea D and that
the second phase of the Original Letter of Credit may require the Developer to
increase the initial Six Million Six

 

8

 

Hundred Ninety Three Thousand Four Hundred Sixty One
Dollars ($6,693,461) amount. The Agency and the Developer shall work together
to attempt to identify and obtain reasonable alternative funding sources for
the Subarea C and Subarea D costs prior to requiring the Developer to provide
the second phase of the Original Letter of Credit. Notwithstanding the
foregoing, the Parties agree that in the event reasonable alternative funding
sources cannot be identified and obtained by the Agency, the Developer shall
provide the second phase of the Original Letter of Credit no later than thirty
(30) days following the Agency’s written request for such second phase Original
Letter of Credit. Notwithstanding the foregoing, if the Developer provides the
second phase of the Original Letter of Credit, the Agency agrees to negotiate
in good faith with the Developer a mutually agreeable arrangement by which the
Developer shall be reimbursed for the funds advanced in the second phase of the
Original Letter of Credit in a commercially reasonable manner.”

 

Section 16.            Definition of
Project Costs. Subsection 6 of Section 601.2 Definition of Project
Costs is be amended to add to the end of the sentence: “and imputed interest on
Developer equity at a rate equal to the rate of interest of the construction
loan for the particular Subarea. For purposes of this Section 601.2,
Developer equity for a particular Subarea shall be defined as the difference
between the total amount of Project Costs as set forth in the approved
Certified Project Cost Statement, as defined below, for that particular Subarea
and third party debt encumbering that particular Subarea.”

 

Section 17.            Form of
Participation. The second paragraph of Section 605.2 Form of
Participation is amended to add to the end of the paragraph: “Notwithstanding
the Developer’s payment obligations set forth in this Section 605.2 and
605.3, below, any amounts owed to the Agency as an Agency Participation Payment
shall first be applied to repayment of the Developer Advance, as calculated
pursuant to Attachment 8, Section I.B., to the extent the Developer
Advance has not been fully repaid, and then to the Agency. Pursuant to this Section 605.2
for offset of Agency Participation Payments against unpaid Developer Advance,
and to the extent unpaid Developer Advance exists at the time of a refinance or
a First Sale (as defined in Section 605.3(c) below) in Subarea A
occurs, an amount equal to the lesser of (i) the amount of the unpaid
Developer Advance and (ii) Three Million Dollars ($3,000,000) shall be
available to offset any Agency Participation Payment due from the refinance or
First Sale in Subarea A. Following a First Sale in Subarea A, any and all
remaining unpaid Developer Advance shall be available to offset the amount of
Agency Participation Payment due in Subarea B-l,B-2, and C. If a refinance or
First Sale occurs in Subarea B-l, B-2, and C prior to a refinance of First Sale
in Subarea A, an amount sufficient to pay down the unpaid Developer Advance to
Three Million Dollars ($3,000,000) shall be available to offset the amount of
Agency Participation Payment due in Subarea B-1, B-2, and C.”

 

Section 18.            Holder’s Right to
Cure. Section 703.3 is deleted in its entirety and replaced with the
following:

 

“Each holder of
mortgages, deeds of trust, and other real property security instruments
approved by the Agency pursuant to Section 109, above, shall be referred
to as a “Lender” The Developer shall provide to the Agency the appropriate
contact information for each Lender securing its lien by the Subarea, if the
Lender wishes to

 

9

 

obtain notice from the Agency pursuant to this Section 703.3.
The Developer shall provide the appropriate contact information concurrently
with the close of escrow of each Subarea or at such later time when the
approved Lender records its liens against the appropriate Subarea. Whenever the
Agency pursuant to its rights set forth in Article 10 delivers any notice
or demand to the Developer with respect to the commencement, completion, or
cessation of the construction of the Development, the Agency shall at the same
time deliver to Lender having a lien upon the Subarea a copy of such notice or
demand affecting such Subarea. Each Lender on a Subarea shall (insofar as the
rights of the Agency are concerned) have the right, but not the obligation, at
its option, within ninety (90) days after the receipt of the notice, to cure or
remedy any such default or breach related to that Subarea by the Developer
under this Agreement; provided, however, that in case of a default which cannot
with diligence be remedied or cured within the ninety (90) day period, such Lender
shall have such additional time as reasonably necessary to remedy or cure such
default as long as the Lender commences to cure within ninety (90) days of
receipt of the notice and diligently prosecutes the cure to completion. In no
event may the Lender fail to cure within one hundred eighty (180) days from the
date the Lender obtains lawful possession of the Subarea related to the such
breach. Any Lender who forecloses on its deed of trust or is assigned, in lieu
of foreclosure, the Developer’s rights under this Agreement as to any Subarea,
shall have the right, but not the obligation, to undertake or to continue the
construction or completion of the improvements on the Subarea upon execution of
a written agreement with the Agency by which such Lender assumes the Developer’s
rights and obligations under this Agreement as to the Subarea, approval of
which agreement shall not be unreasonably, withheld, delayed or conditioned by
the Agency. Any such Lender properly completing the improvements on such
Subarea shall be entitled, upon written request made to the Agency, to a
Certificate of Completion and a Release of the Construction Covenants for the
Subarea from the Agency subject to the provisions of Section 319.

 

Section 19.            Agency Option to
Acquire. Section 1004 shall be amended to add the following two
sentences immediately prior to the last sentence in the Section:

 

“In the event that the Agency exercises the Agency
Option, any proceeds paid by the Agency to the Developer shall first be paid by
the Developer to the Lender (as defined in Section 703.3) holding the
first lien on the Developer Parcel being purchased by the Agency until such
time as the lender is repaid all indebtedness owed to lender by the Developer.
Any exercise of the Agency Option shall not extinguish or impair the liens,
security interests and assignments held by a Lender to any of the Developer
Parcels, it being agreed that the Agency Option shall be subordinate to any
valid first lien deed of trust or mortgage held by a Lender.”

 

Section 20.            Scope of
Development. Attachment No. 1 Scope of Development is amended to
conform the square footages and numbers of units in the revisions to the
Subarea B improvements and Subarea C improvements as set forth in Section 2
of this Second Implementation Agreement.

 

10

 

Section 21.            Schedule of
Performance. Attachment No. 7 Schedule of Performance is deleted and
replaced with a new Schedule of Performance attached to this Second
Implementation Agreement as Attachment 3.

 

Section 22.            Public-Private
Feasibility Agreement. Section I.A and Section I.B. of Attachment
No. 8 Public-Private Feasibility Agreement are deleted and replaced with
the following:

 

“I.                       Use of
Available Site-Generated Property Tax Increment

 

A.                       HUD Loan
Repayment. As set out in Section 402.1.1, the Agency intends to obtain
the HUD Loan from the City. As a condition of obtaining the HUD Loan, the City
will require the Agency to execute a loan agreement and certain related
documents to evidence the Agency’s obligation to repay the HUD Loan and to
comply with the HUD Requirements (the “HUD Loan Documents”). If the Agency is
successful in obtaining the HUD Loan, the Developer shall assume the Agency’s
obligations under the HUD Documents concurrently with the conveyance by the
Agency of Subarea B-2 to the Developer. In addition, as a condition of the
conveyance of Subarea B-2, the Developer shall deliver to the Agency and the
City a Guaranty, in a form reasonably acceptable to the Agency and the City, guarantying
the Developer’s repayment of the HUD Loan. The Agency shall have the right to
obtain payment on the Guaranty upon the Developer’s failure to make any payment
on the HUD Loan required pursuant to the HUD Loan Documents, and with no duty
on the part of the Agency to first enforce any remedy to collect amounts in
default from Developer. The Developer’s assumption of the HUD Loan shall
constitute the partial payment of the Purchase Price in the amount Eight
Million Four Hundred Seventy Four Thousand One Hundred Eighty One Dollars
($8,474,181) which when combined with the payment of Three Million Eight
Hundred Thirty Two Thousand Three Hundred Fifty Eight Dollars ($3,832,358) made
by the Developer at the close of escrow of Subarea A shall equal a total
Purchase Price of Twelve Million Three Hundred Six Thousand Five Hundred Thirty
Nine Dollars ($12,306,539). The remainder of the amount of the HUD Loan in the
amount of Five Million Five Hundred Twenty Five Thousand Eight Hundred Nineteen
Dollars ($5,525,819) shall be credited to the Developer as an advance under the
first phase of the Original Letter of Credit for a total Developer Advance,
when added to the One Million One Hundred Sixty Seven Thousand Six Hundred
Forty Two Dollars ($1,167,642), of Six Million Six Hundred Ninety Three
Thousand Four Hundred Sixty One Dollars ($6,693461).

 

1.                            The
Agency will use every reasonable effort to enter into an agreement with the
City whereby the City will provide an EDI Grant to the Agency in the amount of
One Million Eight Hundred Thousand Dollars ($1,800,000). The EDI Grant proceeds
will be applied to the payment of interest accruing on the HUD Loan for the
initial twenty four (24) months and for the payment of loan fees. Any remaining
EDI Grant proceeds may be applied to eligible EDI costs, including acquisition
related costs, with the prior approval of the City and the Agency.

 

2.                            Subject
to all of the terms and conditions of this Agreement and in consideration for
and subject to the condition that the Developer assumes the HUD Loan, as of the
date the Developer assumes the HUD Loan, the Agency agrees to pay to the
Developer or its Agency approved assignee a total of Six Million Fifty Thousand
Dollars ($6,050,000) plus

 

11

 

interest, as set forth below. The Agency payment to
the Developer or its Agency approved assignee shall be an amount equal to fifty
percent (50%) of Available Site-Generated Property Tax Increment received by
the Agency during the prior Agency Fiscal Year from Subarea A (the “Subarea A
50% Increment”) and fifty percent (50%) of Available Site-Generated Property
Tax Increment received by the Agency during the prior Agency Fiscal Year from
Subarea B and Subarea C (the “Subarea B/C 50% Increment”). Interest on the
Agency’s Six Million Fifty Thousand Dollars ($6,050,000) payment obligation
shall be equal to the fixed interest rate under the HUD Loan and shall begin to
accrue at the later of (a) the date the HUD Loan converts to a fixed rate
or (b) of the first September 30th which follows the Completion Date. The Agency’s
payment of the Six Million Fifty Thousand Dollars ($6,050,000) plus interest
pursuant to this Section I.A.2 shall be allocated as follows. The Agency
shall pay to the Developer, as the owner of the Subarea A Improvements, or its
Agency approved assignee, a total of Three Million Dollars ($3,000,000) plus
interest accrued thereon (the “Subarea A Increment Payment”). The Agency shall
make the Subarea A Increment Payment set forth in this Section I.A.2. from
Subarea A 50% Increment in annual installments on or before September 30th of each year, beginning with the first September
30th which follows the Completion Date of the
Subarea A Improvements until such time as the Agency’s Subarea A Increment
Payment obligation is paid in full or October 1st, 2028, whichever is earlier. The Agency
shall pay to the Developer, as the owner of the Subarea B Improvements, or its
Agency approved assignee, a total of Three Million Fifty Thousand Dollars
($3,050,000) plus interest accrued thereon (the “Subarea B Increment Payment”).
The Agency shall make the Subarea B Increment Payment set forth in this Section I.A.2.
from Subarea B/C 50% Increment in annual installments on or before September 30th of each year, beginning with the first September 30th which follows the Completion Date of the
Subarea B Improvements until such time as the Agency’s Subarea B Increment
Payment obligation is paid in full or October 1st, 2028, whichever is earlier. In no event
shall the Agency’s total obligation under the Subarea A Increment Payment when
added to the Subarea B Increment Payment exceed Six Million Fifty Thousand
Dollars ($6,050,000) plus interest set forth herein. The Agency hereby
covenants to refrain from taking any action that would diminish or impair in
any way its receipt (and subsequent payment of the Agency obligation) of
Available Site-Generated Property Tax Increment.

 

3.                            If the
Agency is unable to obtain the HUD Loan and the Original Letter of Credit
required of the Developer is increased as a result thereof (hereinafter a “Trigger
Event”), the Agency shall thereafter make payments to the Developer in an
amount equal to the Available Site-Generated Property Tax Increment in the
amounts set forth in this Paragraph I.A.3. The principal amount of the Agency
obligation under this Paragraph I.A.3 shall equal Six Million Fifty Thousand
Dollars ($6,050,000) on the date of the Trigger Event (the “Unpaid Principal”).
The Unpaid Principal shall bear interest at the rate of six percent (6%) per
annum from the date of the Trigger Event. The Agency shall make payments in the
time and manner specified in Section I.A.2. The Agency hereby covenants to
refrain from taking any action that would diminish or impair in any way its
receipt (and subsequent payment of the Unpaid Principal and interest thereon)
of Available Site-Generated Property Tax Increment.

 

B.                         Repayment
of Developer’s Advance of Costs. Subject to all of the terms and conditions
of this Agreement (including, without limitation, the provisions of Paragraph
I.E. below limiting the Agency’s payment obligation hereunder to particular
sources of

 

12

 

funds), the principal amount payable by the Agency to
the Developer under this Paragraph I.B. of this Attachment No. 8 shall be
an amount equal to (i) the amount of the Developer Advance determined
pursuant to Section 402.6 of the Owner Participation Agreement; less (ii) the
Acquisition Funds used by the Agency to acquire any portion of the Site; plus (iii) an
amount equal to the Purchase Price; which net amount shall bear interest at the
rate of six percent (6%) per annum from the date of disbursement.

 

1.                            Subject
to all the terms and conditions of this Agreement, on or before September 30th of each year, beginning with the first September 30th which follows the Completion Date, and
continuing until the Agency obligation under this Paragraph I.B. (and any
accrued interest thereon) has been paid in full, the Agency shall pay to the Developer
an amount equal to forty percent (40%) of Available Site-Generated Property Tax
Increment received by the Agency during the prior Agency Fiscal Year. The
Agency hereby covenants to refrain from taking any action that would diminish
or impair in any way its receipt (and subsequent payment of the Agency
obligation and interest thereon) of Available Site-Generated Property Tax
Increment.

 

2.                            The
Agency obligation purusant to this Paragraph I.B shall continue until the
Agency obligation is paid in full or October 1st, 2028, whichever is earlier.”

 

Section 23.            HOME Requirements.
A new Attachment No. 18 shall be added to the OPA entitled HOME
Requirements. The form of the new Attachment 18 is attached to this Second
Implementation Agreement as Attachment 4. As a result of the HOME funding for
the Subarea A Improvements, the Developer shall comply with and shall cause its
contractors and all subcontractors to comply with the requirements of the
Davis-Bacon Act (40 U.S.C. 276 et  seq.) in the construction of the
Subarea A Improvements.

 

Section 24.            No Other Changes,
Consistency. Notwithstanding any changes and deletions contained herein,
all other provisions of the OPA remain the same. In the event of any conflict
between the terms of the OPA and this Second Implementation Agreement, the
terms of this Second Implementation Agreement shall govern.

 

13

 

IN WITNESS WHEREOF, the
parties hereby have executed this Second Implementation Agreement as of the
date first above written.

 

	
   

  	
  DEVELOPER:

  
	
   

  	
   

  
	
   

  	
  SL No Ho, LLC a California limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Clifford P. Goldstein

  
	
   

  	
   

  	
  Clifford P. Goldstein

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
  Authorized Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AGENCY:

  
	
   

  	
   

  
	
   

  	
  THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF
  LOS ANGELES, CALIFORNIA

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Ovrum

  
	
   

  	
   

  	
  Robert Ovrum

  
	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  APPROVED AS TO FORM:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ROCKARD J. DELGADILLO CITY ATTORNEY

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Authorized Signatory

  	
   

  	
   

  
	
   

  	
  Assistant/Deputy City Attorney

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  APPROVED AS TO FORM:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Authorized Signatory

  	
   

  	
   

  
	
   

  	
  Agency Special Counsel

  	
   

  	
   

  

 

14

 

TABLE 1

 

ANNUAL MARKET RENT FOR RESTRICTED UNITS CALCULATION EXAMPLE

NOHO COMMONS

LOS ANGELES, CALIFORNIA

 

	
   

  	
   

  	
   

  	
   

  	
  Subarea A

  	
   

  	
  Subarea B-2

  	
   

  
	
  I.

  	
   

  	
  Project
  Description

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Market Rate Units

  	
   

  	
  323

  	
   

  	
  250

  	
   

  
	
   

  	
   

  	
  Restricted Units

  	
   

  	
  115

  	
   

  	
  28

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total
  Units

  	
   

  	
  438

  	
   

  	
  278

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  II.

  	
   

  	
  Number
  of Occupied Market Units by Category (1)

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  One-Bedroom Units

  	
   

  	
  158

  	
   

  	
  NA

  	
   

  
	
   

  	
   

  	
  Two-Bedroom Units

  	
   

  	
  90

  	
   

  	
  NA

  	
   

  
	
   

  	
   

  	
  Residential Loft Units

  	
   

  	
  NA

  	
   

  	
  125

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total
  Occupied Market Units

  	
   

  	
  248

  	
   

  	
  125

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  III.

  	
   

  	
  Annualized
  Rental Revenue of Occupied Units by Category

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  One-Bedroom Units

  	
   

  	
  $

  	
  2,652,000

  	
   

  	
  NA

  	
   

  
	
   

  	
   

  	
  Two-Bedroom Units

  	
   

  	
  $

  	
  2,061,000

  	
   

  	
  NA

  	
   

  
	
   

  	
   

  	
  Residential Loft Units

  	
   

  	
  NA

  	
   

  	
  $

  	
  2,292,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IV.

  	
   

  	
  Average
  Annual Market Rent per Unit by Category

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  One-Bedroom Units

  	
   

  	
  $

  	
  16,800

  	
   

  	
  NA

  	
   

  
	
   

  	
   

  	
  Two-Bedroom Units

  	
   

  	
  $

  	
  22,900

  	
   

  	
  NA

  	
   

  
	
   

  	
   

  	
  Residential Loft Units

  	
   

  	
  NA

  	
   

  	
  $

  	
  18,300

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  V.

  	
   

  	
  Occupancy
  Factor (2)

  	
   

  	
  95

  	
  %

  	
  95

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VI.

  	
   

  	
  Average
  Effective Gross Income per Unit by Category

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  One-Bedroom Units

  	
   

  	
  $

  	
  16,000

  	
   

  	
  NA

  	
   

  
	
   

  	
   

  	
  Two-Bedroom Units

  	
   

  	
  $

  	
  21,800

  	
   

  	
  NA

  	
   

  
	
   

  	
   

  	
  Residential Loft Units

  	
   

  	
  NA

  	
   

  	
  $

  	
  17,400

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VII.

  	
   

  	
  Number
  of Restricted Units by Category

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  One-Bedroom Units

  	
   

  	
  60

  	
   

  	
  NA

  	
   

  
	
   

  	
   

  	
  Two-Bedroom Units

  	
   

  	
  55

  	
   

  	
  NA

  	
   

  
	
   

  	
   

  	
  Residential Loft Units

  	
   

  	
  NA

  	
   

  	
  28

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Total
  Restricted Units

  	
   

  	
  115

  	
   

  	
  28

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  VIII.

  	
   

  	
  Annual
  Market Rent for Restricted Units (VI x VII)

  	
   

  	
  $

  	
  2,159,000

  	
   

  	
  $

  	
  487,000

  	
   

  

 

(1)                     Illustrative
only, should be actual number of units occupied at calculation.

(2)                     Established
in the Second Implementation Agreement to the OPA.

 

Prepared by: Keyser
Marston Associates, Inc.

Filename: NoHo Commons_ 929
-10% Phase II; Att 2 - Table 1; jlr; 12/18/2003

 

 

TABLE 2

 

ANNUAL RENTAL SHORTFALL CALCULATION EXAMPLE

NOHO COMMONS

LOS ANGELES, CALIFORNIA

 

	
   

  	
   

  	
   

  	
   

  	
  Subarea A

  	
   

  	
  Subarea B-2

  	
   

  
	
  I.

  	
   

  	
  Annual Affordable Rent Calculation

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A.
  Maximum Allowable Annual Rent for Restricted Units

  	
   

  	
  $

  	
  1,126,100

  	
   

  	
  $

  	
  229,800

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  B.
  Occupancy Factor (1)

  	
   

  	
  95

  	
  %

  	
  95

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Annual Affordable Rent (A x B)

  	
   

  	
  $

  	
  1,070,000

  	
   

  	
  $

  	
  218,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  II.

  	
   

  	
  Annual Rental Shortfall Calculation

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Annual
  Market Rent for Restricted Units

  	
   

  	
  $

  	
  2,159,000

  	
   

  	
  $

  	
  487,000

  	
   

  
	
   

  	
   

  	
  (Less)
  Annual Affordable Rent

  	
   

  	
  (1,070,000

  	
  )

  	
  (218,000

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  III.

  	
   

  	
  Annual Rental Shortfall

  	
   

  	
  $

  	
  1,089,000

  	
   

  	
  $

  	
  269,000

  	
   

  

 

(1)                     Established
in the Second Implementation Agreement to the OPA.

 

Prepared by: Keyser
Marston Associates, Inc.

Filename: NoHo Commons_ 929
- 10% Phase II; Att 2 - Table 1; jlr; 12/16/2003

 

 

TABLE 3

 

HOUSING SUBSIDY CALCULATION EXAMPLE

NOHO COMMONS

LOS ANGELES, CALIFORNIA

 

	
   

  	
   

  	
  Year 1

  	
   

  	
  Year 2

  	
   

  	
  Year 3

  	
   

  	
  Year 4

  	
   

  	
  Year 5

  	
   

  	
  Year 6

  	
   

  	
  Year 7

  	
   

  	
  Year 8

  	
   

  	
  Year 9

  	
   

  	
  Year 10

  	
   

  
	
  I.

  	
  Subarea A: Housing Subsidy

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Annual
  Market Revenues for Restricted Units (1)

  	
   

  	
  $

  	
  2,159,000

  	
   

  	
  $

  	
  2,234,600

  	
   

  	
  $

  	
  2,312,800

  	
   

  	
  $

  	
  2,393,700

  	
   

  	
  $

  	
  2,477,500

  	
   

  	
  $

  	
  2,564,200

  	
   

  	
  $

  	
  2,653,900

  	
   

  	
  $

  	
  2,746,800

  	
   

  	
  $

  	
  2,842,900

  	
   

  	
  $

  	
  2,942,400

  	
   

  
	
   

  	
  (Less)
  Annual Affordable Revenue(2)

  	
   

  	
  (1,070,000

  	
  )

  	
  (1,096,800

  	
  )

  	
  (1,124,200

  	
  )

  	
  (1,152,300

  	
  )

  	
  (1,181,100

  	
  )

  	
  (1,210,600

  	
  )

  	
  (1,240,900

  	
  )

  	
  (1,271,900

  	
  )

  	
  (1,303,700

  	
  )

  	
  (1,336,300

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Annual Rental Shortfall Projection

  	
   

  	
  $

  	
  1,089,000

  	
   

  	
  $

  	
  1,137,800

  	
   

  	
  $

  	
  1,188,600

  	
   

  	
  $

  	
  1,241,400

  	
   

  	
  $

  	
  1,296,400

  	
   

  	
  $

  	
  1,353,600

  	
   

  	
  $

  	
  1,413,000

  	
   

  	
  $

  	
  1,474,900

  	
   

  	
  $

  	
  1,539,200

  	
   

  	
  $

  	
  1,606,100

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Subarea A: Housing Subsidy(3)

  	
   

  	
  $

  	
  21,336,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  II.

  	
  Subarea B: Housing Subsidy

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Annual
  Market Revenues for Restricted Units(1)

  	
   

  	
  $

  	
  487,000

  	
   

  	
  $

  	
  504,000

  	
   

  	
  $

  	
  521,600

  	
   

  	
  $

  	
  539,900

  	
   

  	
  $

  	
  558,800

  	
   

  	
  $

  	
  578,400

  	
   

  	
  $

  	
  598,600

  	
   

  	
  $

  	
  619,600

  	
   

  	
  $

  	
  641,300

  	
   

  	
  $

  	
  663,700

  	
   

  
	
   

  	
  (Less)
  Annual Affordable Revenue(2)

  	
   

  	
  (218,000

  	
  )

  	
  (223,500

  	
  )

  	
  (229,100

  	
  )

  	
  (234,800

  	
  )

  	
  (240,700

  	
  )

  	
  (246,700

  	
  )

  	
  (252,900

  	
  )

  	
  (259,200

  	
  )

  	
  (265,700

  	
  )

  	
  (272,300

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Annual Rental Shortfall Projection

  	
   

  	
  $

  	
  269,000

  	
   

  	
  $

  	
  280,500

  	
   

  	
  $

  	
  292,500

  	
   

  	
  $

  	
  305,100

  	
   

  	
  $

  	
  318,100

  	
   

  	
  $

  	
  331,700

  	
   

  	
  $

  	
  345,700

  	
   

  	
  $

  	
  360,400

  	
   

  	
  $

  	
  375,600

  	
   

  	
  $

  	
  391,400

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Subarea B: Housing Subsidy(3)

  	
   

  	
  $

  	
  5,175,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(1)                     The Second
Implementation Agreement establishes the annual increase in market rate unit
rental revenue @ 3.50%.

(2)                     The Second
Implementation Agreement establishes the annual increase in restricted unit
rental revenue @ 2.50%.

(3)                     The Second
Implementation Agreement establishes the discount rate @ 8.87%.

 

Prepared by: Keyser
Marston Associates, Inc.

Filename: NoHo
Commons_929 - 10% Phase II; Att 2 - Table 3; jlr; 12/16/2003

 

 

TABLE 3

 

HOUSING SUBSIDY CALCULATION EXAMPLE

NOHO COMMONS

LOS ANGELES, CALIFORNIA

 

	
   

  	
   

  	
  Year 11

  	
   

  	
  Year 12

  	
   

  	
  Year 13

  	
   

  	
  Year 14

  	
   

  	
  Year 15

  	
   

  	
  Year 16

  	
   

  	
  Year 17

  	
   

  	
  Year 18

  	
   

  	
  Year 19

  	
   

  	
  Year 20

  	
   

  
	
  I.

  	
  Subarea A: Housing Subsidy

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Annual
  Market Revenues for Restricted Units(1)

  	
   

  	
  $

  	
  3,045,400

  	
   

  	
  $

  	
  3,152,000

  	
   

  	
  $

  	
  3,262,300

  	
   

  	
  $

  	
  3,376,500

  	
   

  	
  $

  	
  3,494,700

  	
   

  	
  $

  	
  3,617,000

  	
   

  	
  $

  	
  3,743,600

  	
   

  	
  $

  	
  3,874,600

  	
   

  	
  $

  	
  4,010,200

  	
   

  	
  $

  	
  4,150,600

  	
   

  
	
   

  	
  (Less)
  Annual Affordable Revenue(2)

  	
   

  	
  (1,369,700

  	
  )

  	
  (1,403,900

  	
  )

  	
  (1,439,000

  	
  )

  	
  (1,475,000

  	
  )

  	
  (1,511,900

  	
  )

  	
  (1,549,700

  	
  )

  	
  (1,588,400

  	
  )

  	
  (1,628,100

  	
  )

  	
  (1,668,800

  	
  )

  	
  (1,710,500

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Annual Rental Shortfall Projection

  	
   

  	
  $

  	
  1,675,700

  	
   

  	
  $

  	
  1,748,100

  	
   

  	
  $

  	
  1,823,300

  	
   

  	
  $

  	
  1,901,500

  	
   

  	
  $

  	
  1,982,800

  	
   

  	
  $

  	
  2,067,300

  	
   

  	
  $

  	
  2,155,200

  	
   

  	
  $

  	
  2,246,500

  	
   

  	
  $

  	
  2,341,400

  	
   

  	
  $

  	
  2,440,100

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Subarea A: Housing Subsidy(3)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  II.

  	
  Subarea
  B: Housing Subsidy

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Annual
  Market Revenues for Restricted Units(1)

  	
   

  	
  $

  	
  686,900

  	
   

  	
  $

  	
  710,900

  	
   

  	
  $

  	
  735,800

  	
   

  	
  $

  	
  761,600

  	
   

  	
  $

  	
  788,300

  	
   

  	
  $

  	
  815,900

  	
   

  	
  $

  	
  844,500

  	
   

  	
  $

  	
  874,100

  	
   

  	
  $

  	
  904,700

  	
   

  	
  $

  	
  936,400

  	
   

  
	
   

  	
  (Less)
  Annual Affordable Revenue(2)

  	
   

  	
  (279,100

  	
  )

  	
  (286,100

  	
  )

  	
  (293,300

  	
  )

  	
  (300,600

  	
  )

  	
  (308,100

  	
  )

  	
  (315,800

  	
  )

  	
  (323,700

  	
  )

  	
  (331,800

  	
  )

  	
  (340,100

  	
  )

  	
  (348,600

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Annual Rental Shortfall Projection

  	
   

  	
  $

  	
  407,800

  	
   

  	
  $

  	
  424,800

  	
   

  	
  $

  	
  442,500

  	
   

  	
  $

  	
  461,000

  	
   

  	
  $

  	
  480,200

  	
   

  	
  $

  	
  500,100

  	
   

  	
  $

  	
  520,800

  	
   

  	
  $

  	
  542,300

  	
   

  	
  $

  	
  564,600

  	
   

  	
  $

  	
  587,800

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Subarea B: Housing Subsidy(3)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(1)                     The Second
Implementation Agreement establishes the annual increase in market rate unit
rental revenue @ 3.50%.

(2)                     The Second
Implementation Agreement establishes the annual increase in restricted unit
rental revenue @ 2.50%.

(3)                     The Second
Implementation Agreement establishes the discount rate @ 8.87%.

 

 

TABLE
3

 

HOUSING
SUBSIDY CALCULATION EXAMPLE

NOHO
COMMONS

LOS
ANGELES, CALIFORNIA

 

	
   

  	
   

  	
   

  	
  Year 21

  	
   

  	
  Year 22

  	
   

  	
  Year 23

  	
   

  	
  Year 24

  	
   

  	
  Year 25

  	
   

  	
  Year 26

  	
   

  	
  Year 27

  	
   

  	
  Year 28

  	
   

  	
  Year 29

  	
   

  	
  Year 30

  	
   

  
	
  I.

  	
  Subarea
  A: Housing Subsidy

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Annual Market Revenues
  for Restricted Units(1)

  	
   

  	
  $

  	
  4,295,900

  	
   

  	
  $

  	
  4,446,300

  	
   

  	
  $

  	
  4,601,900

  	
   

  	
  $

  	
  4,763,000

  	
   

  	
  $

  	
  4,929,700

  	
   

  	
  $

  	
  5,102,200

  	
   

  	
  $

  	
  5,280,800

  	
   

  	
  $

  	
  5,465,600

  	
   

  	
  $

  	
  5,656,900

  	
   

  	
  $

  	
  5,854,900

  	
   

  
	
   

  	
  (Less) Annual
  Affordable Revenue(2)

  	
   

  	
  (1,753,300

  	
  )

  	
  (1,797,100

  	
  )

  	
  (1,842,000

  	
  )

  	
  (1,888,100

  	
  )

  	
  (1,935,300

  	
  )

  	
  (1,983,700

  	
  )

  	
  (2,033,300

  	
  )

  	
  (2,084,100

  	
  )

  	
  (2,136,200

  	
  )

  	
  (2,189,600

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Annual
  Rental Shortfall Projection

  	
   

  	
  $

  	
  2,542,600

  	
   

  	
  $

  	
  2,649,200

  	
   

  	
  $

  	
  2,759,900

  	
   

  	
  $

  	
  2,874,900

  	
   

  	
  $

  	
  2,994,400

  	
   

  	
  $

  	
  3,118,500

  	
   

  	
  $

  	
  3,247,500

  	
   

  	
  $

  	
  3,381,500

  	
   

  	
  $

  	
  3,520,700

  	
   

  	
  $

  	
  3,665,300

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Subarea
  A: Housing Subsidy(3)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  II.

  	
  Subarea
  B: Housing Subsidy

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Annual Market Revenues
  for Restricted Units(1)

  	
   

  	
  $

  	
  969,200

  	
   

  	
  $

  	
  1,003,100

  	
   

  	
  $

  	
  1,038,200

  	
   

  	
  $

  	
  1,074,500

  	
   

  	
  $

  	
  1,112,100

  	
   

  	
  $

  	
  1,151,000

  	
   

  	
  $

  	
  1,191,300

  	
   

  	
  $

  	
  1,233,000

  	
   

  	
  $

  	
  1,276,200

  	
   

  	
  $

  	
  1,320,900

  	
   

  
	
   

  	
  (Less) Annual
  Affordable Revenue(2)

  	
   

  	
  (357,300

  	
  )

  	
  (366,200

  	
  )

  	
  (375,400

  	
  )

  	
  (384,800

  	
  )

  	
  (394,400

  	
  )

  	
  (404,300

  	
  )

  	
  (414,400

  	
  )

  	
  (424,800

  	
  )

  	
  (435,400

  	
  )

  	
  (446,300

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Annual
  Rental Shortfall Projection

  	
   

  	
  $

  	
  611,900

  	
   

  	
  $

  	
  636,900

  	
   

  	
  $

  	
  662,800

  	
   

  	
  $

  	
  689,700

  	
   

  	
  $

  	
  717,700

  	
   

  	
  $

  	
  746,700

  	
   

  	
  $

  	
  776,900

  	
   

  	
  $

  	
  808,200

  	
   

  	
  $

  	
  840,800

  	
   

  	
  $

  	
  874,600

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Subarea
  B: Housing Subsidy(3)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(1)          The Second
Implementation Agreement establishes the annual increase in market rate unit
rental revenue @ 3.50%.

(2)          The Second
Implementation Agreement establishes the annual increase in restricted unit
rental revenue @ 2.50%.

(3)          The Second
Implementation Agreement establishes the discount rate @ 8.87%.

 

 

TABLE 3

 

HOUSING
SUBSIDY CALCULATION EXAMPLE

NOHO
COMMONS

LOS
ANGELES, CALIFORNIA

 

	
   

  	
   

  	
   

  	
  Year 31

  	
   

  	
  Year 32

  	
   

  	
  Year 33

  	
   

  	
  Year 34

  	
   

  	
  Year 35

  	
   

  	
  Year 36

  	
   

  	
  Year 37

  	
   

  	
  Year 38

  	
   

  	
  Year 39

  	
   

  	
  Year 40

  	
   

  
	
  I.

  	
  Subarea A: Housinq Subsidy

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Annual
  Market Revenues for Restricted Units(1)

  	
   

  	
  $

  	
  6,059,800

  	
   

  	
  $

  	
  6,271,900

  	
   

  	
  $

  	
  6,491,400

  	
   

  	
  $

  	
  6,718,600

  	
   

  	
  $

  	
  6,953,800

  	
   

  	
  $

  	
  7,197,200

  	
   

  	
  $

  	
  7,449,100

  	
   

  	
  $

  	
  7,709,800

  	
   

  	
  $

  	
  7,979,600

  	
   

  	
  $

  	
  8,258,900

  	
   

  
	
   

  	
  (Less)
  Annual Affordable Revenue(2)

  	
   

  	
  (2,244,300

  	
  )

  	
  (2,300,400

  	
  )

  	
  (2,357,900

  	
  )

  	
  (2,416,800

  	
  )

  	
  (2,477,200

  	
  )

  	
  (2,539,100

  	
  )

  	
  (2,602,600

  	
  )

  	
  (2,667,700

  	
  )

  	
  (2,734,400

  	
  )

  	
  (2,802,800

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Annual Rental Shortfall Projection

  	
   

  	
  $

  	
  3,815,500

  	
   

  	
  $

  	
  3,971,500

  	
   

  	
  $

  	
  4,133,500

  	
   

  	
  $

  	
  4,301,800

  	
   

  	
  $

  	
  4,476,600

  	
   

  	
  $

  	
  4,658,100

  	
   

  	
  $

  	
  4,846,500

  	
   

  	
  $

  	
  5,042,100

  	
   

  	
  $

  	
  5,245,200

  	
   

  	
  $

  	
  5,456,100

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Subarea A: Housing Subsidy(3)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  II.

  	
  Subarea B: Housing Subsidy

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Annual
  Market Revenues for Restricted Units(1)

  	
   

  	
  $

  	
  1,367,100

  	
   

  	
  $

  	
  1,414,900

  	
   

  	
  $

  	
  1,464,400

  	
   

  	
  $

  	
  1,515,700

  	
   

  	
  $

  	
  1,568,700

  	
   

  	
  $

  	
  1,623,600

  	
   

  	
  $

  	
  1,680,400

  	
   

  	
  $

  	
  1,739,200

  	
   

  	
  $

  	
  1,800,100

  	
   

  	
  $

  	
  1,863,100

  	
   

  
	
   

  	
  (Less)
  Annual Affordable Revenue(2)

  	
   

  	
  (457,500

  	
  )

  	
  (468,900

  	
  )

  	
  (480,600

  	
  )

  	
  (492,600

  	
  )

  	
  (504,900

  	
  )

  	
  (517,500

  	
  )

  	
  (530,400

  	
  )

  	
  (543,700

  	
  )

  	
  (557,300

  	
  )

  	
  (571,200

  	
  )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Annual Rental Shortfall Projection

  	
   

  	
  $

  	
  909,600

  	
   

  	
  $

  	
  946,000

  	
   

  	
  $

  	
  983,800

  	
   

  	
  $

  	
  1,023,100

  	
   

  	
  $

  	
  1,063,800

  	
   

  	
  $

  	
  1,106,100

  	
   

  	
  $

  	
  1,150,000

  	
   

  	
  $

  	
  1,195,500

  	
   

  	
  $

  	
  1,242,800

  	
   

  	
  $

  	
  1,291,900

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Subarea B: Housing Subsidy(3)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

(1)          The
Second Implementation Agreement establishes  the
annual increase in market rate unit rental revenue @ 3.50%.

(2)          The
Second Implementation Agreement establishes the annual increase in restricted
unit rental revenue @ 2.50%.

(3)          The
Second. Implementation Agreement establishes the discount rate @ 8.87%.

 

 

TABLE
4

 

ANNUAL
PAYMENTS CALCULATION EXAMPLE

NOHO
COMMONS

LOS
ANGELES, CALIFORNIA

 

	
   

  	
   

  	
   

  	
  SUBAREA A

  	
   

  	
  SUBAREA B-2

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  I.

  	
  Housing Subsidy (Table 2)

  	
   

  	
  $

  	
   21,336,000

  	
   

  	
  $

  	
   5,175,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  II.

  	
  Cash Payment Calculation (1)

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  HOME
  Funds

  	
   

  	
  $

  	
   5,000,000

  	
   

  	
  $

  	
   0

  	
   

  
	
   

  	
  Currently
  Available Housing Trust Funds

  	
   

  	
  3,960,000

  	
   

  	
  2,240,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Total Cash Payment

  	
   

  	
  $

  	
   8,960,000

  	
   

  	
  $

  	
   2,240,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  III.

  	
  Annual Agency Payment to Developer Calculation

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Net
  Housing Subsidy (I - II)

  	
   

  	
  $

  	
   12,376,000

  	
   

  	
  $

  	
   2,935,000

  	
   

  
	
   

  	
  Interest
  Rate (1)

  	
   

  	
  6.0 

  	
  %

  	
  6.0 

  	
  %

  
	
   

  	
  Amortization
  Period (FY 2006/07 - FY 2028/29)

  	
   

  	
  23

  	
   

  	
  23

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Annual Payments

  	
   

  	
  $

  	
   1,006,000

  	
   

  	
  $

  	
   239,000

  	
   

  

 

(1)          Established
in the Second Implementation Agreement to the OPA.

 

Prepared by: Keyser Marston Associates, Inc.

Filename: NoHo
Commons_929 - 10% Phase II; Att 2 - Table 4; jlr; 12/16/2003

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00165-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00165-of-00352.parquet"}]]