While city council declined the chance to become the successor of the Riverbank Redevelopment Agency when redevelopment agencies were eliminated throughout the state a year ago, it has picked up the duties, obligations and assets of the housing side of the RDA so that it can receive a small annual income to continue some housing assistance to low- and moderate-income residents.
City Council voted 4-0 Monday, in the absence of Councilmember Jesse James White, to retain responsibility for performing the housing functions previously performed by the RDA.
The former RDA's Housing Fund was established to receive the 20 percent of tax increment revenues that the law required be set aside for low to moderate income housing.
The only current asset of the housing fund, City Manager Jill Anderson informed the council, is a $3.2 million loan issued to Pacific West Communities to help construct the 65-unit Riverbank Family Apartments located at Patterson and Claus roads.
Pacific West must repay this loan in 30 years at 3 percent simple interest, making an interest-only payment should their annual audit deem they have sufficient cash. The revenue from this payment may vary from year to year.
In addition, the Riverbank Family Apartments must make a payment in lieu of taxes (PILOT) to offset the loss of property tax revenue experienced when the property became tax exempt. This payment is about $27,000 per year.
The fund for low and moderate income housing will become eligible for both these annual payments and ultimately revenues from repayment of the entire loan.
Monday's meeting was held at noon under a quarterly program aimed at accommodating citizens who cannot get to evening meetings .But it was sparsely attended. The housing fund matter was the only item of new business. All discussion except a closed door session for a legal matter was concluded within half an hour.
City Council voted 4-0 Monday, in the absence of Councilmember Jesse James White, to retain responsibility for performing the housing functions previously performed by the RDA.
The former RDA's Housing Fund was established to receive the 20 percent of tax increment revenues that the law required be set aside for low to moderate income housing.
The only current asset of the housing fund, City Manager Jill Anderson informed the council, is a $3.2 million loan issued to Pacific West Communities to help construct the 65-unit Riverbank Family Apartments located at Patterson and Claus roads.
Pacific West must repay this loan in 30 years at 3 percent simple interest, making an interest-only payment should their annual audit deem they have sufficient cash. The revenue from this payment may vary from year to year.
In addition, the Riverbank Family Apartments must make a payment in lieu of taxes (PILOT) to offset the loss of property tax revenue experienced when the property became tax exempt. This payment is about $27,000 per year.
The fund for low and moderate income housing will become eligible for both these annual payments and ultimately revenues from repayment of the entire loan.
Monday's meeting was held at noon under a quarterly program aimed at accommodating citizens who cannot get to evening meetings .But it was sparsely attended. The housing fund matter was the only item of new business. All discussion except a closed door session for a legal matter was concluded within half an hour.
