Title
Resolution Approving the Transfer of Property and the Provision of a Loan to Eden Surf Associates L.P., and Authorizing the Execution of Loan Documents
Body
WHEREAS, in 2002, the City of San Leandro (“City”) provided a loan in the amount of $700,000 (the “Existing Loan”) to Citizens Housing Corporation, a California nonprofit public benefit corporation (“CHC”) to assist in the acquisition and rehabilitation of a 46-unit residential development located at 15320 Tropic Court (the “Project”);
WHEREAS, Eden Surf Associates L.P., a California limited partnership (“Eden Surf”) proposes to acquire the Project and assume the obligation to repay the Existing Loan and the obligations imposed pursuant to the documents executed in connection with the Existing Loan;
WHEREAS, the Project has been subject to rent and tenant income-eligibility restrictions pursuant to a Regulatory Agreement executed by and between City and CHC in June 2002 (as subsequently amended, the “Existing Regulatory Agreement”);
WHEREAS, Eden Surf has requested City approval for the transfer of the Property and the Project and the assignment of the obligations imposed by the documents executed in connection with the Existing Loan to Eden Surf;
WHEREAS, Eden Surf has also requested a loan from the City in the amount of One Hundred Thousand Dollars ($100,000) (the “New Loan”) to defray certain costs related to the acquisition and rehabilitation of the Project;
WHEREAS, Eden Surf has agreed to extend and increase the affordability restrictions imposed by the Existing Regulatory Agreement;
WHEREAS, the terms and conditions for the New Loan are described in a proposed Affordable Housing Loan Agreement (the “Loan Agreement”), a copy of which has been provided to the City Council;
WHEREAS, Eden Surf and City staff have negotiated the terms of an Amended and Restated Regulatory Agreement (the “Amended Regulatory Agreement”), a Secured Promissory Note (the “Note”) to be executed by Eden Surf ...
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