HomeMy WebLinkAboutReso 07-2008R>=;SOLUTION NO. 07-2008
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION AUTHORIZING EXECUTION OF A
SUBORDINATION AGREEMENT WITH GRAND OAK
ASSOCIATES AND' THE CALIFORNIA DEPARTMENT OF
HOUSING AND COMMUNITY DEVELOPMENT FOR THE
GRAND OAK AFFORDABLE HOUSING PROJECT
WHEREAS, on March 9, 2005, the Redevelopment Agency of the City of South San
Francisco authorized the execution of a Construction Loan Agreement and the provision of a loan in
the amount of $3,500,000 (the "Agency Loan") to Grand Oak Associates, a California limited
partnership affiliated with BRIDGE Housing Corporation (the "Developer") to develop an affordable
housing project on Oak and Grand Avenues (the "Project");
WHEREAS, in connection with the Loan, the Developer and the City executed an Affordable
Housing Agreement and a Rent Restriction and Right of First Refusal Agreement (collectively the
"Agreements");
WHEREAS, pursuant to the Agreements the Developer has agreed to restrict the :rents for 21
of the units developed as part of tree Project to affordable levels and to provide the City with
purchase rights in the event that the Project or any unit therein is offered for sale prior to the
expiration of the term of the Agreements;
WHEREAS, the California Department of Housing and Community Development ("HCD")
will provide a permanent loan to Developer in the amount of Four Million Six Hundred Seventy-
Seven Thousand Seven Hundred Seventy-Three Dollars ($4,677,773.00) for the Project (the "HCD
Permanent Loan");
WHEREAS, HCD has indicated that it would be unwilling to provide the HCD Permanent
Loan for the Project without subordination of the Agreements; and
WHEREAS, the proposed Subordination Agreement provides the City with rights to receive
notice and to cure defaults arising under the HCD loan documents.
NOW, THEREFORE,, BE IT RESOLVED by the City Council of the City of South
San Francisco that the City Council hereby authorizes the City Manager or his designee to execute a
Subordination Agreement substantially in the form on file with the City Clerk and to take; such other
actions reasonably necessary to carry out the intent of this Resolution.
I hereby certify that the foregoing Resolution was regularly introduced and adopted by the
City Council of the City of South San Francisco at a regular meeting held on the 9t~' day of
January 2008 by the following vote:
AYES: Councilmembers Mark N. Addiego, Richaid A. Garbarino and Kevin Mullin,
Mayor Pro Tem Karyl Matsumoto and Mayor Pedro Gonzalez
NOES: None
ABSTAIN: None
ABSENT: None
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