Title
Staff Report for the Assignment, Assumption, and Modification of Loan Agreements Provided to Eden Housing for the Real Property Located at 15370-15375 Tropic Court in the City of San Leandro
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that the City Council adopt a resolution 1) approving two separate Assignment, Assumption, and Modification Agreements that will assign the existing $750,000 City federal HOME loan and $50,000 City loan and regulatory agreements from Las Palmas Development Partners, L.P, a tax credit affiliate entity of the nonprofit developer Eden Housing, Inc., which currently owns and manages Las Palmas Apartments, to a new tax credit limited partnership LPSL, L.P. and 2) authorizing the City Manager to execute such documents and undertake such actions as necessary to carry out the intent of this resolution. Eden requests that the City approve the Assignment, Assumption, and Modification Agreements by late January 2016 when it plans to close escrow on the State/federal low income housing tax credit equity it received in Fall 2015 to provide renovations and maintain the long-term affordability of Las Palmas Apartments.
BACKGROUND AND ANALYSIS
The 91-unit Las Palmas Apartments at 15370 and 15375 Tropic Court received a $750,000 federal Home Investment Partnership Program (HOME) loan fund from the City of San Leandro on December 6, 1999 and executed a regulatory agreement, which is still in effect, that requires the nonprofit developer, Eden Housing, 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.
Las Palmas Apartments also received a $50,000 loan from the City of San Leandro Redevelopment Agency on February 7, 2011 to assist in the transfer of the property to Eden Housing prior to the dissolution of Citizens Ho...
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