HomeMy WebLinkAbout2026-49 - $10,000 Construction Financing Loan for the of 240 Rehabilitation of Affordable Housing Units at National City Park Apartments C2 RESOLUTION NO. 2026 - 49
RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION-HOUSING AUTHORITY
OF THE CITY OF NATIONAL CITY, CALIFORNIA, AUTHORIZING A $10,000
CONSTRUCTION FINANCING LOAN FOR THE REHABILITATION OF 240 AFFORDABLE
HOUSING UNITS AT NATIONAL CITY PARK APARTMENTS C2, LOCATED AT 318 E 22ND
STREET IN NATIONAL CITY.
WHEREAS, National City Park Apartments ("NCPA") is a 456-unit affordable housing
community built in 1968 and located on a 22.6-acre site at 2323 D Avenue, eastern portion, and
the western portion located at 318 E 22nd Street in National City, community known as NCPA C1
and NCPA C2, respectively; and
WHEREAS, a rehabilitation project is proposed for the 240-unit NCPA C2 site west of D
Avenue between E 22nd Street and E 24th Street; and
WHEREAS, NCPA C2 rehabilitation hard costs are expected to total approximately $42
million or $175,000 per unit; and
WHEREAS, Terrex Development Corporation ("Developer") is the developer for the
acquisition and rehabilitation of NCPA C2; and
WHEREAS, Developer is requesting that the Community Development Commission-
Housing Authority of the City of National City ("CDC-HA") commit $10,000 in Low and Moderate
Income Housing funds("CDC-HA Loan")for a construction loan for the rehabilitation of NCPA C2;
and
WHEREAS, a commitment letter is required for a financing application to the California
Debt Limit Allocation Committee ("CDLAC") and the California Tax Credit Allocation Committee
("CTCAC") for tax-exempt bonds and low-income housing tax credits ("LIHTC"); and
WHEREAS, NCPA C2 is NCPA C2 is currently owned by the SDBTC Family Housing
Corp. Two ("Owner"); and
WHEREAS, the Owner will ground-lease its property at construction closing to a yet-to-
be-created special purpose limited partnership ("Borrower") managed by the Developer; and
WHEREAS, 238 of the 240 housing units will be preserved by the Community
Development Commission-Housing Authority as affordable, between 30% and 80% of Area
Median Income, for a term of 55 years from completion, and the Developer has committed to the
Owner to use San Diego County Building & Construction Trades Council, unionized labor, for the
rehabilitation, which will be memorialized in a project labor agreement ("PLA"); and
WHEREAS, to increase the project's tiebreaker score by 18% pursuant to CDLAC
Regulations Section 5106(f)(2)(B), the CDC-HA Loan is to be conditioned on the payment of state
prevailing wages for the duration of construction, and require a PLA; and
WHEREAS, the final executed commitment letter of the requested CDC-HA Loan will be
included in the funding application to CDLAC and CTCAC, which is due on May 19, 2026; and
WHEREAS, the CDC-HA Loan shall be evidenced by a promissory note and secured by
a deed of trust, and would be funded at construction financing closing, which is anticipated for
January 2027.
NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION-HOUSING
AUTHORITY OF THE CITY OF NATIONAL CITY, CALIFORNIA, DOES RESOLVE, DECLARE,
DETERMINE, AND ORDER AS FOLLOWS:
Section 1: The Community Development Commission — Housing Authority hereby
authorizes a $10,000 construction financing loan for the rehabilitation of National City Park
Apartments Corp. Two with the following conditions: (1) payment of state prevailing wages for the
duration of construction; (2) requiring a Project Labor Agreement; (3) receipt of tax-exempt bonds
from California Debt Limit Allocation Committee and low-income housing tax credits from
California Tax Credit Allocation Committee; and (4) closing occurring before Jan 1, 2028 (5) 238
of the 240 units rehabilitated will be preserved as affordable housing between 30% and 80% of
Area Median Income for a term of 55 years from completion
Section 2: The Community Development Commission — Housing Authority hereby
authorizes the execution of the enforceable loan commitment letter to the developer for the
construction financing loan.
Section 3: That the Community Development Commission — Housing Authority hereby
authorizes the Executive Director or his designee to execute the construction financing loan, and
all other project documents associated with the loan.
Section 4: That the City Clerk shall certify to the passage and adoption of this Resolution
and enter it into the book of original Resolution.
PASSED and ADOPTED this 5th day o .y, 2026.
Iii
Ro- Mo rison, C airman
ATTEST:
eel SheY el, MMC, Secretary
APPROVED AS TO FORM:
6e
Heidi Skinner, Interim Gen al Counsel
Passed and adopted by the City Council of the City of National City, California, on May
5, 2026 by the following roll-call vote, to-wit:
Ayes: Bush, Yamane, Molina, Morrison
Nays: None.
Absent: None.
Recused: Rodriguez
AUTHENTICATED BY: Ron Morrison
Mayor of the City of National City, California
Shelley Chapel
City Clerk of the City of National City, California
\,‘ ,
st I • BY:
Shelley Chapel, MMC, City Clerk