HomeMy WebLinkAbout2025-53 - 129 NCB, LLC - First Amendment to the Affordable Housing Density Bonus Agreement RESOLUTION NO. 2025 - 53
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA,
AUTHORIZING THE CITY MANAGER TO EXECUTE THE FIRST AMENDMENT TO THE
AFFORDABLE HOUSING DENSITY BONUS AGREEMENT FOR 129 NATIONAL CITY
BLVD IN NATIONAL CITY WITH 129 NCB, LLC, A CALIFORNIA LIMITED LIABILITY
COMPANY.
WHEREAS, 129 NCB, LLC, a California limited liability company ("Owner") is the owner
of that certain real property located at 129 National City Boulevard ("Property"); and
WHEREAS, the City of National City ("City") and Owner entered into an Affordable
Housing Density Bonus Agreement ("Agreement") dated July 12, 2021, and recorded April 22,
2022 as Document No. 2022-0177240, Official Records of San Diego County, California through
Resolution 2021-74; and
WHEREAS, City and Owner entered into a Performance Deed of Trust dated July 12,
2021, and recorded April 22, 2022, as Document No. 2022-0177239, Official Records of San
Diego County, California, securing the performance of the Agreement through Resolution 2021-
74; and
WHEREAS, the Agreement created an obligation on behalf of Owner to restrict two (2)
units to very low-income in exchange for a density bonus to allow construction of 14 units of new
multifamily housing on the Property, with a term length for the restrictions of fifty-five (55) years;
and
WHEREAS, Arbor Agency Lending, LLC, a New York limited liability company ("Arbor" or
"Lender"), is a lender who is making a new loan to Owner for a refinance of the Property("Loan"),
with a Deed of Trust to be recorded in favor of Lender securing the loan against the Property
("Arbor Deed of Trust"); and
WHEREAS, Lender will be immediately assigning the Loan and Arbor Deed of Trust to
Federal Home Loan Mortgage Corporation ("Freddie Mac"); and
WHEREAS, Lender must comply with the provisions of the Freddie Mac Multifamily
Seller/Servicer Guide ("Guide"); and
WHEREAS, the Guide requires there to be no subordinate financing on the Property,
including any deeds of trust, mortgages, or security instruments of any type, whether recorded or
held in escrow, regardless of its subordination to the Arbor Deed of Trust; and
WHEREAS, the parties acknowledge that Lender and Freddie Mac will not make such
Loan to Owner if the Performance Deed of Trust remains on title; and
WHEREAS, the parties desire to amend the Agreement pursuant to the requirements of
the Guide; and
WHEREAS, the City agrees to reconvey the Performance Deed of Trust on the Property
prior to the close of the Loan and recording of the Arbor Deed of Trust; and
WHEREAS, all covenants and restrictions as enumerated in the Agreement will remain
in effect.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY,
CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS:
Section 1: That the City Council hereby authorizes the City Manager or their designee to
execute the First Amendment to the Affordable Housing Density Bonus Agreement with 129 NCB,
LLC.
Section 2: That the City Council hereby authorizes the City Manager or their designee to
approve and execute any subsequent Subordination Agreements for the Affordable Housing
Density Bonus Agreement with 129 NCB, LLC, if by doing so does not impact the City's ability to
continue to enforce the terms of the Affordable Housing Density Bonus Agreement.
Section 3: That the City Clerk shall certify to the passage and adoption of this Resolution
and enter it into the book of original Resolutions.
PASSED and ADOPTED this 20th day of Ma 025.
n Morrison, Mayor
ATTEST:
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Kelley el, City Clerk
APPROVED AS TO FORM:
Barry J. c tz, City Attorney
Passed and adopted by the City Council of the City of National City, California, on May
20, 2025 by the following roll-call vote, to-wit:
Ayes: Molina, Rodriguez, Yamane, Bush, Morrison
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: Ron Morrison
Mayor of the City of National City, California
Shelley Chapel
City Clerk of the City of National City, California
BY: / 7
Ep Shelley C el, MMC, City Clerk