8B Consent 2010 1115 - Laserfiche WebLink

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Amended & Restated Regulatory Agreement for Eden Lodge Apartments -2- November 15, 2010 desperately needed. To receive the grant, Eden Housing and the Agency executed an Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants (2003 Regulatory Agreement) which restricts rents for all of the residential units at Eden Lodge at levels affordable to very -low income households (50% of AMI) for a 55 -year period. City staff has been routinely monitoring Eden Lodge Apartments since 2003 and has, to date, determined that Eden Housing has complied with the existing regulatory agreement and managed the property well. DISCUSSION Eden Housing is requesting Agency approval for Eden Housing to transfer the Eden Lodge property to a Limited Partnership (Eden Lodge, L.P.) controlled by an Eden Housing, Inc. affiliate (Eden Investments, Inc.) in order to refinance and rehabilitate the property utilizing federal low - income tax credits. The purpose of the transfer and refinance is to maintain the property's affordability for the senior residents and rehabilitate the property to a level that will maintain the property for many more years to come. In addition, when the transfer is completed, and the new tax credit financing structure is in place, Eden Housing will prepay its HUD Section 202 mortgage, thus, effectively removing the associated HUD Section 202 regulatory agreement. The property's existing Section 8 contract, which will be extended for an additional twenty (20) years, though, will continue to restrict all the units at its original 50% AMI affordability level and will continue to provide the senior residents subsidized rents at 30% of their income. This ensures that 1) the existing Eden Lodge residents are not displaced, and 2) Eden Lodge remains 100% affordable despite the transfer and refinancing of Eden Lodge. However, in order to satisfy the terms of the new investor and lenders, Eden Housing is requesting the following modifications to the 2003 Regulatory Agreement: 1. Any residents who were income eligible at 50% AMI upon initial occupancy are considered eligible residents on an ongoing basis even if their income exceeds 50% AMI after initial eligibility; 2. Two (2) of the 143 units are reserved for site staff and therefore are not required to meet income restrictions; and 3. If the Section 8 contract were to be interrupted or discontinued at any time during the partnership in the future, the City would allow Eden Housing to redesignate Eden Lodge's 143 very -low income (50% AMI) units at the following new income and rent restrictions: 50% AMI 60% AMI Sub -Total Manager's Units Total 1- Bedroom 43 98 141 0 141 2- Bedroom 0 0 0 2 2 Total 43 98 141 2 143