HomeMy WebLinkAboutRDA Reso 01-2008RESOLUTION NO. 01-2008
REDEVELOPMENT AGENCY, CITY OF SOUTH SAN FRANCISCO
STATE OF CALIFORNIA
A RESOLUTION AUTHORIZING EXECUTION OF A
SUBORDINATION AGREEMENT WITH GRAND OAK
ASSOCIATES ANL) THE CALIFORNIA DEPARTMENT OF
HOUSING AND COMMUNITY DEVELOPMENT FOR THE
GRAND OAK AFFORDABLE HOUSING PROJECT
WHEREAS, on March 9, 2.005, the Redevelopment Agency of the City of South San
Francisco ("Agency") 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 executed a Deed of Trust securing
repayment of the Loan ("Deed of Trust"), and the Developer and the Agency executed a Regulatory
Agreement pursuant to which the L)eveloper has agreed to restrict the rents for 21 of the units
developed as part of the Project to affordable levels ("Regulatory Agreement");
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, Health and Safety Code Section 33334.14 permits subordination of
redevelopment agency affordability restrictions to a lien, encumbrance or regulatory agreement under
a state program when a state agency is providing financing if the state agency refuses to consent to
the seniority of the agency's restrictions;
WHEREAS, HCD has indicated that it would be unwilling to provide the HCD Permanent
Loan for the Proj ect without subordination of the Deed of Trust and the Regulatory Agreement; and
WHEREAS, the proposed Subordination Agreement provides the Agency with rights to
receive notice and to cure defaults ar7sing under the HCD loan documents.
NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of
South San Francisco that the Agency hereby authorizes the Executive Director or his designee to
execute a Subordination Agreement :>ubstantially in the form on file with the Agency Secretary 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
Redevelopment Agency of the City of South San Francisco at a regular meeting held on the Stn
day of January 2008 by the following vote:
AYES: Boardmemberts Mark N. Addiego, Richard A. Garbarino and Kevin Mullin,
Vice Chair Karyl Matsumoto and Chair Pedro Gonzalez
NOES: None
ABSTAIN: None
ABSENT: None
jr
ATTEST: ,~,,; ~" _ . - 6~ ,~.
C1erl~
~~
x,9
~,
°..~ '.