Laserfiche WebLink
City of San Leandro <br />Meeting Date: January 4, 2016 <br />Staff Report <br />Agenda Section:File Number:15-695 CONSENT CALENDAR <br />Agenda Number:8.H. <br />TO:City Council <br />FROM:Chris Zapata <br />City Manager <br />BY:Cynthia Battenberg <br />Community Development Director <br />FINANCE REVIEW:David Baum <br />Finance Director <br />TITLE:Staff Report for the Assignment, Assumption, and Modification of Loan <br />Agreements Provided to Eden Housing for the Real Property Located at <br />15370-15375 Tropic Court in the City of San Leandro <br />SUMMARY AND RECOMMENDATIONS <br />Staff recommends that the City Council adopt a resolution 1) approving two separate <br />Assignment, Assumption, and Modification Agreements that will assign the existing $750,000 <br />City federal HOME loan and $50,000 City loan and regulatory agreements from Las Palmas <br />Development Partners, L.P, a tax credit affiliate entity of the nonprofit developer Eden <br />Housing, Inc., which currently owns and manages Las Palmas Apartments, to a new tax credit <br />limited partnership LPSL, L.P. and 2) authorizing the City Manager to execute such <br />documents and undertake such actions as necessary to carry out the intent of this resolution. <br />Eden requests that the City approve the Assignment, Assumption, and Modification <br />Agreements by late January 2016 when it plans to close escrow on the State/federal low <br />income housing tax credit equity it received in Fall 2015 to provide renovations and maintain <br />the long-term affordability of Las Palmas Apartments. <br />BACKGROUND AND ANALYSIS <br />The 91-unit Las Palmas Apartments at 15370 and 15375 Tropic Court received a $750,000 <br />federal Home Investment Partnership Program (HOME) loan fund from the City of San <br />Leandro on December 6, 1999 and executed a regulatory agreement, which is still in effect, <br />that requires the nonprofit developer, Eden Housing, to maintain the majority of units as <br />long-term affordable rental housing. Around 1999, the property also received State/Federal <br />low income housing tax credits, which also restricted the majority of units as affordable; those <br />tax credits have expired. <br />Las Palmas Apartments also received a $50,000 loan from the City of San Leandro <br />Redevelopment Agency on February 7, 2011 to assist in the transfer of the property to Eden <br />Housing prior to the dissolution of Citizens Housing Corporation, the original owner of Las <br />Page 1 City of San Leandro Printed on 12/22/2015