HomeMy WebLinkAboutResolutionRESOLUTION NO. 2013 —
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
WHEREAS, Summercrest Apartments, also known as Plaza Manor, located at
2721 Plaza Boulevard is being sold to Affordable Housing Associates, LLC, ("Buyer") for
$46,250,000; and
WHEREAS, 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, LP, ("Seller") to assist the Seller in the
rehabilitation the 372-unit complex; and
WHEREAS, the CDC -HA loan is owed an outstanding balance of approximately
$481,341.26, and the Buyer has requested to pay off the loan completely through Escrow; and
WHEREAS, the Buyer has secured commitment on a new mortgage loan to
complete the purchase of property from Citibank ("Lender") for $33,000,000; and
WHEREAS, 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; and
WHEREAS, 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; and
WHEREAS, 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.
NOW, THEREFORE, BE IT RESOLVED that the Community Development
Commission -Housing Authority of the City of National City hereby authorizes the Executive
Director to execute a Subordination Agreement, an Amendment to the Project Deed of Trust
securing the Declaration of Covenants, Conditions and Restrictions, and other Escrow related
documents as necessary. After being recorded by the County of San Diego, said Subordination
Agreement and Amendment to the Deed of Trust will be on file in the office of the City Clerk.
[Signature page to follow)
Resolution No. 2013 —
Page Two
PASSED and ADOPTED this 17th day of December, 2013.
Ron Morrison, Chairman
ATTEST:
Brad Raulston, Secretary
APPROVED AS TO FORM:
Claudia Gacitua Silva
CDC General Counsel