Meeting_Body
REGULAR BOARD MEETING
SEPTEMBER 27, 2015
Preamble
Motion by:
Ridley-Thomas, Garcetti, Dupont-Walker and Kuehl
September 27, 2015
Relating to Item 58, File ID 2015-1088;
IMPLEMENTATION OF AFFORDABLE HOUSING AND BUSINESS LOAN FUNDS
In March 2015, the Metropolitan Transportation Authority (Metro) Board of Directors (Board) directed the Chief Executive Officer to negotiate the terms and conditions for Metro's participation in a multi-partner Countywide Transit-Oriented Affordable Housing and Business Loan Fund (Proposed Fund). The purpose of the Proposed Fund was to promote development and preservation of affordable housing and small businesses within a half-mile of Metro rail stations, bus rapid transit or rapid bus stops.
Staff has engaged members of the community development and finance communities in exploring potential formats for the Proposed Fund with an emphasis on transit oriented communities. While the residential and commercial purposes of the Proposed Fund are synergistic, their administration, approach and objectives are materially different, therefore necessitating two separate funding frameworks.
With regard to the Affordable Housing Loan Fund, staff has identified a consortium led by the California Community Foundation and Low Income Investment Fund that has the local experience, depth of potential investor interest and deep experience in creating and implementing housing investment funds to meet the Board's objectives for this investment. The consortium has committed to securing over $60 million to match Metro's $10 million commitment in order to meaningfully capitalize the loan fund.
With regard to the Business Loan Fund, staff has reached out to a number of impacted stakeholders, and has indicators that a potential comprehensive package of loan products requires additional consideration. However, staff has identified an immediate and critical gap in available funding for commercial tenant improvements b...
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