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RESOLUTION Approving The Assignment And Assumption Of The Loan Agreement, Deed Of Trust And Regulatory Agreement For The Real Property At 15370-15375 Tropic Court In The City Of San Leandro [To Assist Eden Housing, Inc., A Non-Profit Corporation That Owns And Operates Las Palmas Apartments At 15370-15375 Tropic Court, In Obtaining Financing For Necessary Improvements And Preserving Affordability]
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WHEREAS, on February 7, 2011, the Redevelopment Agency to the City of San Leandro (the “Former Agency”) entered into that certain affordable housing loan agreement with Las Palmas Development Partners (the “Borrower”), pursuant to which the Former Agency provided a loan to Borrower in the amount of Fifty Thousand Dollars ($50,000) (the “Housing Loan”) for the purpose of providing financial assistance for a multi-family affordable housing project owned by Borrower (the “Project”) located at 15370-15375 Tropic Court in the City.
WHEREAS, Assembly Bill 26 (“ABx1 26”) was enacted by the State Legislature and signed by the Governor on June 29, 2011; and
WHEREAS, on December 29, 2011 the California Supreme Court delivered its decision in California Redevelopment Association v. Matasantos, finding ABx1 26 largely constitutional and resulting in the dissolution of all California redevelopment agencies, including the Former Agency, on February 1, 2012; and
WHEREAS, on June 27, 2012, AB 1484 (together with ABx1 26, the “Dissolution Law”), a budget trailer bill that made substantial amendments and additions to ABx1 26, was signed into law; and
WHEREAS, pursuant to the Dissolution Law, the Successor Agency is the successor in interest to the Former Agency; and
WHEREAS, pursuant to Section 34176 of the Dissolution Law, the City elected to retain the housing assets and functions previously performed by the Former Agency, and provided a housing asset transfer report to the State Department of Finance, as required under Section 34176(a)(2); and
WHEREAS, in completing the housing asset transfer report, the Successor Agency inadvertently left the Housing Loan off of the report; and
WHEREAS, the Housing Loan is evidenced by a promissory note (the “Note”), and is secured by that certain deed of trust (the “Deed of Trust”) recorded as Document Number 2011092526 in the official records of Alameda County. The Housing Loan is further subject to the requirements of that certain regulatory restriction agreement (the “Regulatory Agreement”) recorded as Document Number 2011092526 in the official records of Alameda County; and
WHEREAS, Assignee desires to assume all rights and obligations of Successor Agency under the Housing Loan, the Note, the Deed of Trust and the Regulatory Agreement (collectively hereinafter the “Agreements”) and Successor Agency desires to assign all rights and obligations of Agency under the Agreements to Assignee, pursuant to the terms of an Assignment Agreement presented to this board, substantially in the form attached as Exhibit A.
NOW, THEREFORE, the City Council of the City of San Leandro does RESOLVE as follows:
Section 1. Approve the Assignment Agreement, substantially in the form attached as Exhibit A.
Section 2. Authorizes the Executive Director to the Successor Agency to execute the Assignment Agreement and to take all actions and execute such other documents as may be necessary to carry out the intent of this resolution.