Res 2004-106 - Laserfiche WebLink

Home Browse Search

Willow Springs Senior Residences Letter of Commitment for PILOT Agreement Priority Cash Flow Payment and the Excess Cash Flow Payment, for any calendar year will not exceed the result of the aggregate tax rates, applicable to the location of the Project, multiplied by 80% of the Project's fair market value. The Project's fair market value will be calculated by dividing the annual net operating income of the Project by a 10% assumed capitalization rate. The Project Owner, at its sole expense, will have the option of procuring a third party appraisal to support the use of a different capitalization rate. Low-Income Seniors Housing Occupancy Commitment. 100% of the apartments at Willow Springs Senior Residences will be occupied by at least one individual 55 years of age or older whose household income is 60% or less of the area median income. o Available Cash Flow. Available Cash Flow means the cash flow of the Project Owner as available in its fiscal year after the payment of: (a) (b) (c) (d) (e) (0 (g) Operating expenses or costs; Total monthly loan payments, including operating, replacement, and other reserve deposits, and escrow impounds; Priority Cash Flow PILOT Payment; TDHCA and CAHFC compliance monitoring or other fees; Priority distribution to the investor limited partner(s), as defined in the limited partnership agreement executed between limited partner(s) and the Project Owner related to the capital contributions by the limited partner(s) for the low income housing tax credits; Repayments, if any, of deferred developer fee to the developer; and Any repayments constituting a partial return of the general partner's capital contribution. Term of the PILOT Agreement. The PILOT Agreement will continue for a term concurrent with the Regulatory Agreement between the Project Owner and CAHFC and the Declaration of Restrictive Covenants, including the extended low-income housing use commitment period, between the Project Owner and TDHCA. However, the PILOT Agreement shall terminate if the Project ceases to be exempt from property taxes under Tex. Local Government Code, Section 392.005(c), or other state law. o Distribution of PILOT Payments. The Trustee under the Trust Indenture among the Project Owner, CAHFC, and the commercial bank designated by CAHFC as the Trustee will distribute among the taxing authorities with jurisdiction of the Project the Priority Cash Flow PILOT Payment and the Excess Cash Flow PILOT Payment pro rata according to the ratios of the various tax rates of the taxing authorities to the total tax rate applicable to the Project. Additional Terms. The Project Owner agrees that the terms of this Letter of Commitment will be incorporated into the superceding Bond Issue and low-income housing tax credit documents, and additional terms as required by CAHFC, the underwriter or bond purchaser, or the tow income housing tax credit equity syndicator participating in the Bond Issue and Project financing. Please evidence the City's agreement to this Letter of Commitment by the City Manager's signature below. Please call me if you have any questions or suggestions. Thank you for your consideration and support of this Project as part of our mission to provide decent and affordable housing for the citizens of the City of San Marcos that are assets for the residents and the community.