Free Memorandum - District Court of Federal Claims - federal

Case 1:93-cv-00655-MMS

Document 159-7

Filed 07/17/2007

Page 1 of 2

U,S.Department of Housing and Urban Development Paciflo/Hawali Office 450 Golden Gate Avenue San Francis~o, California 94102-8448

Mr. James H. McAllister Mr. James R. Bancroft Partners Cedar Gardens Associates, a Partnership 601 Montgomery St., Suite 900 San Francisco, CA 9~iII Gentlemen:
SUBJECT: Cedar Gardens Project Number 121-55062 Fresno, California

The Department currently does not have funds available to fund incentives for your Plan of Action for Cedar Gardens (Project Number 121-55062), which was approved on May 12, 1995 under the Low Income Housing Preservation and Resident Homeownership Act of 1990 (LIHPRHA). The LIHPRHA statute provides that if we do not provide funding for these incentives within certain timeframes, you may prepay without the Secretary's consent. You may prepay your mortgage if the~Department is unable to provide incentives before.the earlier of the expiration of the 6 month period beginning after final approval of the Plan of Action or the expiration of the 2 month period after the beginning of the first fiscal year after final approval. In your case, you may prepay your mortgase if the Department does not provide incentives by November 12, 1995. Be advised that if we are unable to fund your incentives within the statutory timeframes and you decide to prepay your mortgage and terminate the low-income use restrictions for your property, you will be responsible for providing relocation assistance to any tenants displaced as a result of such prepayment. You shall pay fifty percent of the relocation expenses of each family relocated, except that the percentagemay be higher depending on State or loca! laws. You may also be required to allow current tenants who resided in the property on the date you filed your Initial Notice of Intent to remain in the property for a period of three years, commencing on the date of prepayment.. These tenants will pay the same rents existing at the time of prepayment, except for rent increases made necessary due to increased operating costs. This continued occupancy provision applies to all elderly and disabled tenants and to all other tenants if the project is !ocated in a low-vacancy area, as determined by HUD.

IRH 0000796

Case 1:93-cv-00655-MMS

Document 159-7

Filed 07/17/2007

Page 2 of 2

The Department will work with the Fresno Housing Authority to find suitable units for each displaced family. Further, to the extent funds aze available, eligible low and very-low income families displaced as the result of a prepayment shall receive Section 8Certificates. If you-have any questions on this matter, please contact Tom Vitek, Preservation Coordinator, at (415) 556-0796. Sincerely yours, J~~.an~ t Browder Multi family Housing Division
cc:

'Ms. Carol J. Ornelas Chief Executive Officer ACLC, Inc. 42 North Surfer St., Suite 206 Stockton, CA 95202
Mr. Richard Mandel Senior Program Manager California Housing Partnership Corp. 2201 Broadway, Suite 823 Oakland, CA 94612

Mr. William Michaud Michaud and Hoshiyama 414 Jackson St., Suite 202 San Francisco, CA 94111
Mr. Lawrence S. Levy Levy, Levy & Levy 595 Market St., Suite 2400 San Francisco, CA 94105

IRH 0000797