HomeMy WebLinkAboutReso 92-2016 (16-426)File Number: 16 -426 Enactment Number: RES 92 -2016
RESOLUTION APPROVING AMENDMENTS TO THE
FORMER REDEVELOPMENT AGENCY REGULATORY
AGREEMENT, FORMER REDEVELOPMENT AGENCY
DEED OF TRUST, HOME REGULATORY AGREEMENT,
AND HOME DEED OF TRUST; APPROVING THE CITY
ENTERING INTO COMMUNITY DEVELOPMENT BLOCK
GRANT /SECTION 108 REGULATORY AGREEMENT; AND
APPROVING A PROMISSORY NOTE AND DEED OF
TRUST WITH WILLOW GARDENS HOUSING ASSOCIATES
FOR THE WILLOW GARDENS NEIGHBORHOOD
REHABILITATION PROJECT, AND AUTHORIZING THE CITY
MANAGER TO EXECUTE SAID DOCUMENTS.
WHEREAS, in January 1999, the former Redevelopment Agency of the City of South San
Francisco ( "former RDA ") provided financing and entered into a loan agreement with Willow
Gardens Housing Associates, a California limited partnership affiliated with Mid - Peninsula
Housing Coalition (the "Developer") in the amount of $3.5 million ( "RDA Loan ") to acquire and
rehabilitate affordable housing units in the Willow Gardens Neighborhood (the "Project "); and
WHEREAS, the City and Developer also applied for County (HOME Investment
Partnerships Program) and federal (Community Development Block Grant (CDBG) /Section
108) funding to offset the costs of the Project; and
WHEREAS, between 1999 and 2005, the Developer acquired seven (7) properties solely
with the RDA Loan funds and an additional bridge loan provided by the RDA because no
County or federal funding had been granted at the time of acquisition of the properties; and
WHEREAS, when the HOME and CDBG /Section 108 funding were eventually disbursed to
the Project, the funding was used to repay the RDA bridge loan but the applicable financing
documents were not amended and re- executed to reflect the new County and federal financing
encumbrances on the properties; and
WHEREAS, City staff discovered that the applicable financial documents need to be
updated to reflect the existing loan encumbrances and affordability restrictions on all seven (7)
properties and to fully secure all funding against the properties; and
WHEREAS, in an effort to update and correct the agreements and reflect current
conditions, City staff has worked with the Developer to identify the missing documents and
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File Number: 16 -426
draft new documents where appropriate.
Enactment Number: RES 92 -2016
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 take the
following actions:
1. Amend the existing RDA Regulatory Agreement to include sites 4 through 7, as identified on
the Willow Gardens Site Map, attached hereto as Exhibit A.
2. Amend the RDA Deed of Trust to include sites 4 through 7, as identified on the Willow
Gardens Site Map, attached hereto as Exhibit A.
3. Amend the HOME (1st Loan) Regulatory Agreement to include sites 2 through 7, as
identified on the Willow Gardens Site Map, attached hereto as Exhibit A.
4. Amend the HOME (1st Loan) Deed of Trust to include sites 2 and 3, as identified on the
Willow Gardens Site Map, attached hereto as Exhibit A.
5. Enter into a new HOME (2nd Loan) Promissory Note for sites 4 through 7, as identified on
the
Willow Gardens Site Map, attached hereto as Exhibit A.
6. Enter into a new HOME (2nd Loan) Deed of Trust for sites 4 through 7, as identified on the
Willow Gardens Site Map, attached hereto as Exhibit A.
7. Enter into a new CDBG /Section 108 Regulatory Agreement for sites 4 through 7, as
identified on the Willow Gardens Site Map, attached hereto as Exhibit A.
8. Draft a letter to the Developer explaining the grant status of the CDBG Housing
Rehabilitation funds.
BE IT FURTHER 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 take execute the
documents approved by this Resolution, subject as to approval as to form by the City Attorney,
and to take such other actions reasonably necessary to carry out the intent of this Resolution.
At a meeting of the Special City Council on 7/27/2016, a motion was made by Pradeep Gupta,
seconded by Liza Normandy, that this Resolution be approved. The motion passed.
Yes: 5 Matsumoto, Normandy, Addiego, Gupta, and Garbarino
Attest by X01 -
Krista Martinelli
Attachment 8: Site Map of the Nine Acquired
Properties
WILLOW GARDENS
WILLOW AVENUE'
4
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Willow Gardens - Site Map
77 is
ON
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