Title
Staff Report for Approving the Transfer of Property and the Provision of a Loan in the Amount of $100,000 to Eden Housing and Authorizing the Execution of Loan Documents for the Acquisition and Rehabilitation of Surf Apartments
Staffreport
RECOMMENDATIONS
Staff recommends the City Council adopt the resolution approving the transfer of property and the provision of a loan in the amount of $100,000 to Eden Housing, and authorizing the execution of loan documents for the acquisition and rehabilitation of Surf Apartments.
BACKGROUND
Eden Housing Loan Agreement
The City will provide a $100,000 loan in order to assist Eden Housing to acquire and rehabilitate Surf Apartments, a 46-unit multi-family affordable rental housing property located in San Leandro. City staff identified $65,000 in its Affordable Housing Trust Fund (AHTF) and $35,000 in unallocated CDBG funds. The $100,000 loan will assist Eden Housing to preserve the property and its affordability by acquiring it and undertaking immediate repair work that includes roofing, bathroom fans, heaters, and insulation and physical improvements (i.e. plumbing upgrades, interior upgrades, exterior paint and lighting, and concrete and drainage repairs).
The terms of the $100,000 loan will be three percent (3%) simple annual interest for fifty-five (55) years. Eden Housing is leveraging the City loan with $250,000 federal Neighborhood Stabilization Program II (NSP2) stimulus funds loan from the Alameda County Housing and Community Development Department (HCD); $300,000 loan from California Housing Finance Agency (CalHFA); and $100,000 loan from tax credit investor Alliant Capital.
The provision of the loan is also contingent upon the City receiving the U.S. Department of Housing and Urban Development (HUD) approval for its Amendment to the FY 2011-2012 Consolidated Annual Action Plan. In accordance with the City’s HUD-approved Citizen Participation Plan (CPP), which governs the process of amending the ...
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