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IN THE CITY COUNCIL OF THE CITY OF SAN LEANDRO RESOLUTION NO. 2006-045 (3085) RESOLUTION APPROVING A LOAN TO ALAMEDA COUNTY ALLIED HOUSING PROGRAM TO ASSIST IN THE ACQUISITION OF AN AFFORDABLE HOUSING PROJECT, AND ADOPTING FINDINGS AND AUTHORIZING EXECUTION OF DOCUMENTS IN CONNECTION WITH SUCH FINANCING WHEREAS, Alameda County Allied Housing Program ("Allied") proposes to acquire and operate a 25-unit multi-family and commercial project (the "Project") located at 112 Garcia Avenue in the City of San Leandro (the "City"); WHEREAS, the Project has been subject to a regulatory agreement that requires six residential units to be affordable to moderate-income households, seven residential units to be affordable to low-income households, and seven residential units to be affordable to very low-income households for a term that will expire in 2033; WHEREAS, Allied intends to increase the affordability of the residential units so that all ofthe residential units in the Project will be affordable to very low- and extremely-low income households, and has agreed to extend the term of the affordability restrictions to the year 2061 ; WHEREAS, Allied has requested financial assistance from the City and the Redevelopment Agency of the City of San Leandro (the "Agency") in order to increase the affordability of the Project; WHEREAS, Allied and City staff have determined that it will not be economically feasible to operate the Project at the proposed level of income-targeting and affordability without financial assistance from the City, and despite good faith efforts on the part of Allied, no other reasonable means of private or commercial financing is reasonably available to finance the Project at such affordability and income levels; WHEREAS, Allied and City staff have negotiated a Loan Agreement (the "City Loan Agreement") addressing terms and conditions of a loan in the amount of One Million One Hundred Thousand and 67/100 Dollars ($1,100,000.67) (the "City Loan"), a Secured Promissory Note (the "City Note") to be executed by Allied, an Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants by and among the Agency, the City and Allied ("Regulatory Agreement") which will restrict rents for all ofthe units in the Project at levels affordable to very low- and extremely low-income households for a period of 55 years, and a Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing (the "City Deed of Trust") pursuant to which the City will be provided a security interest in the Project to secure repayment of the City Loan and compliance with the Regulatory Agreement;