Reso 2022-063 Loan to Abode Communites for 72 Unit affordable housing dev

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RESOLUTION OF THE CITY OF SAN LEANDRO CITY COUNCIL RESOLUTION NO. 2022-063 RESOLUTION TO APPROVE A LOAN TO ABODE COMMUNITIES FOR LAND ACQUISITION AND NEW CONSTRUCTION OF A 72-UNIT AFFORDABLE HOUSING DEVELOPMENT AT 15101 WASHINGTON AVENUE IN AN AMOUNT NOT TO EXCEED $7,000,000 ($5,015,000 FROM ALAMEDA COUNTY MEASURE A-1 BOND FUNDING; $349,960 FROM CALIFORNIA HOUSING AND COMMUNITY DEVELOPMENT PERMANENT LOCAL HOUSING ALLOCATION; AND $1,635,040 FROM THE CITY LOW -MOD HOUSING ASSET FUND) AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL RELATED DOCUMENTS WHEREAS, Abode Communities, a nonprofit housing developer, proposes to construct 72-units of affordable rental housing ("Project") located at 15101 Washington Avenue (the "Property"); and WHEREAS, the Project will consist of 3 studio apartments, 32 one -bedroom apartments, 19 two -bedroom, and 18 three -bedroom apartments of which all of the housing constructed will be rented at a cost affordable to very -low income households; and WHEREAS, in order to make the Project financially feasible, Abode Communities is leveraging various funding sources by using Seven Million Dollars ($7,000,000) of funding controlled by the City to help finance the Project; and WHEREAS, Abode Communities requested, and City agreed to provide, a loan to Abode Communities in the amount of One Million Nine Hundred Eighty Five Dollars ($1,985,000) with annual interest -only payments at 3% interest with a final maturity in year 55 (the "Loan") to assist in the development of the Project; and WHEREAS, the Loan is comprised of two funding sources: the Low -Mod Housing Asset Fund (held by the City as the Housing Successor to the former Redevelopment Agency of the City of San Leandro) and the City's 2019 Permanent Local Housing Allocation (PLHA) from California Housing and Community Development Department; and WHEREAS, in exchange for receipt of the Loan, Abode Communities has agreed to enter into an Affordable Housing Regulatory Agreement and Declaration of Restrictive Covenants (the "Regulatory Agreement"), which would be recorded against the Property and which would require Project rents to be affordable to very low-income households for a term of not less than 55 years; and WHEREAS, Abode Communities will execute an agreement with the City establishing the terms and conditions of the Loan (the "Loan Agreement"), and will concurrently execute a secured promissory note (the "Note") in the amount of the Loan and a Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing ("Deed of Trust"), which will provide the City with a security interest in the Property and the Project; and WHEREAS, the Loan Agreement, Regulatory Agreement, Note, and Deed of Trust are collectively referred to as the "Loan Documents"; and