Department of Finance " RPTTF is not approved"

Item No. 370 - Low and Moderate Income Housing Project management cost in amount of $1,620,828 is partially approved. The Agency provided a breakdown of how the total requested amount was allocated to housing projects listed on ROPS 16-17. Of the requested amount, a total of $734,850 was related to the Oak to gth Project (Brooklyn Basin) under Item No. 423. As noted in the bullet below, Item No. 423 is not an enforceable obligation. Therefore, the related project development costs are also not an enforceable obligation of the Agency. As a result, of the requested $1,620,828, the amount of $734,850 is not eligible for RPTTF funding. 

• Item No. 423 - Oak to gth Project (Brooklyn Basin) is not an enforceable obligation of the Agency. The Cooperation Agreement dated August 24, 2006 between the former RDA and the Oak to Ninth Community Benefits Coalition did not require the RDA to provide additional funding beyond the enforceable obligation to purchase the Affordable Housing Parcels pursuant to the Development Agreement dated August 24, 2006 between the RDA and Oakland Harbor Partners, LLC. The Agency fulfilled its only enforceable obligation when it acquired the parcels during the July 1, 2014 through December 30, 2014 ROPS period under Item No. 422 using 2011 housing bond proceeds. Therefore, the development of affordable housing units is not an enforceable obligation of the Agency as defined in HSC section 34171 (d). As such, the additional funding requested in the amount of $4,000,000 in RPTTF is not approved.

ordsa__april_2016_letter_from_state_department_of_finance_rejecting_affordable_housing_obligation.pdf
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