Title
Staff Report for 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
Staffreport
SUMMARY AND RECOMMENDATIONS
Las Palmas Apartments, which is owned and operated by the nonprofit housing developer Eden Housing, Inc. (Eden), received a $50,000 loan from City of San Leandro Redevelopment Agency Housing Set-Aside Fund in 2011. Staff recently discovered that the $50,000 loan was inadvertently left off the Housing Asset Inventory Report (HAT), which the California Department of Finance (DOF) required and approved in 2012 soon after the dissolution of redevelopment agencies state-wide.
Staff recommends that the City Council approve a resolution assigning the $50,000 loan from the Successor Agency of the Redevelopment Agency of the City of San Leandro to the Housing Successor. This assignment enables the City to assume the duties and rights to modify the loan and related documents and qualifies Eden for State/federal low income housing tax credits/tax-exempt bonds for Las Palmas Apartments.
BACKGROUND AND ANALYSIS
The 91-unit Las Palmas Apartments at 15370 and 15375 Tropic Court received federal Home Investment Partnership Program (HOME) loan funds from the City of San Leandro in 1999 and executed a regulatory agreement, which is still in effect, that requires Eden to maintain the majority of units as long-term affordable rental housing. Around 1999, the property also received State/federal low income housing tax credits, which also restricted the majority of units as affordable; those tax credits have expired.
Eden re-applied for low income housing tax credits and tax-exempt bonds from the State Tax Credit Allocation Committee (TCAC) and California Debt Limit Allocation Committee (CDLAC) in August 2015 to make needed renovations to the aging Las Palmas. Eden Housing is not seeking any additional City financial assistance.
Upon th...
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