HomeMy WebLinkAbouta200 Staff ReportCITY OF NATIONAL CITY, CALIFORNIA
COMMUNITY DEVELOPMENT COMMISSION -HOUSING AUTHORITY
COUNCIL AGENDA STATEMENT
MEETING DATE:
December 17, 2013
AGENDA ITEM NO.
ITEM TITLE:
Resolution of the Community Development Commission- Housing Authority of the City of National City
authorizing the Executive Director to execute a Subordination Agreement and an Amendment to the
Project Deed of Trust securing the Declaration of Covenants, Conditions, and Restrictions for 372
affordable rental units at 2721 Plaza Boulevard in National City
PREPARED BY: Carlos Aguirre, Community Dev. Manager 'EPARTMENT:
PHONE: 619 336-4391 APPROVED BY:
EXPLANATION:
Summercrest Apartments, also known as Plaza Manor. located at 2721 Plaza Blvd is being sold to Affordable
Housing Associates, L.L.C. ("Buyer) for $46,260,000. In 2001, the Community Development Commission ("CDC -
HA") made a loan for $500,000 from the HOME investment Partnerships Program and the Low and Moderate
Income Fund to Plaza Manor Preservation, L.P. (Seller") to assist the Seller in the rehabilitation the 372-unit
complex. The CDC -HA loan is owed an outstanding balance of approximately $481,341.26. The Buyer has
requested to pay off the loan completely through Escrow.
The Buyer is has secured commitment on a new mortgage loan to complete the purchase of property from Citibank
("Lender) for $33,000,000. In order to provide the loan, the Lender requires the subordination of the Project Deed
of Trust ("Deed of Trust) that currently secures the Declaration of Covenants, Conditions, and Restrictions
("Declaration") which restricts the affordability of units as stated in said Declaration through April 15, 2032. Since
the Deed of Trust secures both the loan that will be paid off through Escrow and the Declaration, an Amendment
will be made to the Deed of Trust reflecting the full satisfaction of the loan but continuing to secure the Declaration.
The Buyer will execute an Assignment and Assumption of the affordability restrictions and other performance
requirements of said Declaration as part of the Escrow Instructions provided by the CDC -HA.
Housing, Grants, & Asset
anagement
FINANCIAL STATEMENT: APPROVED: Finance
ACCOUNT NO. APPROVED: MIS
!'here is no fiscal impact for the CDC -HA by executing the Subordination Agreement and Amendment to
the Project Deed of Trust
ENVIRONMENTAL REVIEW:
Entering into the subordination agreement is exempt from environmental review.
ORDINANCE: INTRODUCTION: l l FINAL ADOPTION:
STAFF RECOMMENDATION:
Staff recommends the adoption of a resolution to execute the Subordination Agreement and Amend the
Project Deed of Trust.
BOARD ! COMMISSION RECOMMENDATION:
There is no board or commission recommendation required for the Subordination Agreement.
ATTACHMENTS:
1. Subordination Agreement 5. Declaration of Covenants, Conditions, &
2. Amendment to the Deed of Trust Restrictions
3. Assignment and Assumption 6. Real Estate Purchase Agreement
4. Escrow Instructions