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File Number: 15-722 <br />WHEREAS, City desires to provide Developer with a loan in the amount of Two <br />Hundred Fifty-Six Thousand Seven Hundred Sixty-One Dollars ($256,761) from HOME <br />Program funds to assist with the construction and development of the Project (“HOME Loan”), <br />and such loan will be provided in accordance with federal regulations governing the HOME <br />Program; and <br />WHEREAS, City also desires to provide Developer with a separate loan for an amount <br />not to exceed Seven Hundred Forty-Three Thousand Two Hundred Thirty-Nine Dollars <br />($743,239) from repayments of former Redevelopment Housing Set-Aside loan funds held by <br />the City in its capacity as Housing Successor to the Redevelopment Agency to assist with the <br />construction and development of the Project (“City Loan”); and <br />WHEREAS, a loan agreement was negotiated between the City of San Leandro and <br />the Developer establishing the terms and conditions of the HOME Loan and City Loan (the <br />“Loan Agreement”), a copy of which is attached hereto as Exhibit A and incorporated herein; <br />and <br />WHEREAS, the City and Developer also negotiated the terms of a secured promissory <br />note for the HOME Loan and a secured promissory note for the City Loan to be executed by <br />Developer to evidence its obligation to repay the two loans, as well as a leasehold deed of <br />trust to provide the City with a security interest in the Project, and a regulatory agreement to <br />restrict the occupancy of the Project to senior households with extremely low- and very <br />low-incomes. <br />NOW, THEREFORE, the City Council of the City of San Leandro does RESOLVE, as <br />follows: <br />Section 1. All the recitals above are true, correct and incorporated herein. <br />Section 2. The City Council finds that the provision of financial assistance in the <br />amount of the HOME Loan and City Loan is necessary to make the Project financially feasible <br />and affordable to extremely low- and very low-income senior households, and the financial <br />assistance will help increase the supply of affordable senior housing in the City. <br />Section 3. The City Council approves the provision of the City Loan and HOME Loan <br />and authorizes and directs the City Manager to execute the Loan Agreement, which is <br />attached hereto as Exhibit A, in substantially the form attached with such changes as are <br />deemed appropriate by the City Manager and City Attorney. <br />Section 4. The issuance of the HOME loan and City Loan are contingent upon the <br />execution of a promissory note for the City Loan, a promissory note for the HOME loan, a <br />leasehold deed of trust and regulatory agreement between the City and the Developer, and <br />such documents shall be in a form deemed appropriate by the City Manager and City <br />Attorney. <br />Section 5. The City Manager is hereby authorized to take such further actions and <br />execute such documents as may be necessary or appropriate to carry out the City’s <br />obligations pursuant to this Resolution. <br />Page 2 City of San Leandro Printed on 6/1/2016