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IN THE CITY COUNCIL OF THE CITY OF SAN LEANDRO RESOLUTION NO. 2009-094 (3085) RESOLUTION APPROVING AN ADDITIONAL LOAN TO ALAMEDA COUNTY ALLIED HOUSING PROGRAM TO ASSIST IN THE REHABILITATION AND REFINANCING OF AN AFFORDABLE HOUSING PROJECT, AND ADOPTING FINDINGS AND AUTHORIZING EXECUTION OF DOCUMENTS IN CONNECTION WITH SUCH FINANCING WHEREAS, Alameda County Allied Housing Program, a California nonprofit public benefit corporation ("Allied") is the owner of amulti-family project known as the Mission Bell Apartments, consisting of 25 residential and 6 commercial units (the "Project") located at 112 Garcia Avenue in the City of San Leandro (the "City"); WHEREAS, in 2006, the City and the Redevelopment Agency of the City of San Leandro (the "Agency") provided financial assistance to assist Allied in the acquisition of the Project and to enable Allied to increase the affordability of the Project's residential units; WHEREAS, in connection with the prior City and Agency financing, among other documents, Allied and City executed a Loan Agreement (the "City Loan Agreement"), the Agency, the City and Allied executed an Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants (the "Regulatory Agreement") which restricts rents for all of the residential units in the Project at levels affordable to very low- and extremely low-income households for a period of 55 years, and Allied executed a Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing (the "City Deed of Trust") pursuant to which the City was provided a security interest in the Project to secure repayment of the City loan and compliance with the Regulatory Agreement; WHEREAS, Allied proposes to rehabilitate the Project and refinance the existing commercial loan in order to improve Project cash flow, has requested additional fmancial assistance from the City and the County of Alameda, and has agreed to extend the term of the affordability restrictions to the year 2064; WHEREAS, Allied and City staff have negotiated an amendment to the City Loan Agreement (the "Loan Agreement Amendment") addressing the terms and conditions of an additional City loan in the amount of Four Hundred Thousand Dollars ($400,000) (the "Additional City Loan"), a Secured Promissory Note (the "Note") evidencing Allied's obligation to repay the Additional City Loan, and an Amended and Restated Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants by and among the Agency, the City and Allied (the "Regulatory Agreement") which will restrict rents for all of the units in the Project at levels affordable to low-, very low- and extremely low-income households until the year 2064; WHEREAS, repayment of the Additional City Loan will be secured by the City Deed of Trust;