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File #: 2015-1479   
Type: Motion / Motion Response Status: Passed
File created: 9/17/2015 In control: Board of Directors - Regular Board Meeting
On agenda: 9/24/2015 Final action: 9/24/2015
Title: MOTION by Ridley-Thomas, Garcetti, Dupont-Walker and Kuehl directing the Chief Executive Officer to move forward with implementation of Affordable Housing and Business Loan Funds as follows: A. Engage the consortium led by California Community Foundation and Low Income Investment Fund to negotiate terms and conditions, in a multi-partner Countywide Transit-Oriented Affordable Housing Loan Fund to support the production and preservation of transit-oriented affordable housing (including mixed use projects)that leverages Metro's financial contribution, as previously approved by the Boardin March 2015, and return to the Board for approval of the final terms and conditions; B. Design a pilot Countywide Transit-Oriented Small Business Loan Fund program to provide financing under favorable terms for commercial tenant improvements within transit adjacent, mixed use (including affordable housing) or commercial projects with particular emphasis on tenant improvements for local small busin...
Sponsors: Board of Directors - Regular Board Meeting
Indexes: City of Los Angeles, Eric Garcetti, Hollywood, Jacquelyn Dupont-Walker, Joint development, Mark Ridley-Thomas, Metro Gold Line, Metro Rail L Line, Motion / Motion Response, Preservation, Program, Shelia Kuehl, Station 917, Tenants, Transit Oriented Community, Westlake, Westside/Central Service Sector
Related files: 2015-1088, 2016-0317
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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