To: Honorable Chair and Commissioners
From: Rick Tooker, Community Development Director
Prepared By: Lark Ferrell, Housing Manager
TITLE:
Title
Vintage at Napa Affordable Housing Regulatory Agreement Termination
LABEL
RECOMMENDED ACTION:
Recommendationle
Adopt a resolution approving the "Termination and Release of Regulatory Agreement" for Vintage at Napa (115-unit affordable senior apartment complex located at 2360 Redwood Road), to facilitate financing for project improvements.
Body
DISCUSSION:
The Vintage at Napa is a 115-unit affordable senior apartment complex located at 2360 Redwood Road (the "Project"). It was constructed in 2001 with bond financing issued by the Authority. As a condition of bond financing, the Project is subject to a "Regulatory Agreement and Declaration of Restrictive Covenants" with the Authority dated October 1, 2001 ("Authority Regulatory Agreement"), which requires the Project to maintain affordability levels of 29-units for very low income, 85-units for low-income, and one manager unit.
The proposed Termination and Release of Regulatory Agreement ("Termination Agreement") is in response to a proposal from Vintage at Napa. L.P. (the "Developer") to sell the Project to a related entity, Vintage at Napa 2, L.P. ("Buyer") and to refinance the Housing Authority bonds in order to fund $3.4 million of improvements to the Project. The proposed improvements, funded from bond proceeds and tax credit equity, would include various upgrades to the common room, laundry facilities, and the units, including making 12 units fully ADA accessible. Tenants would be able to remain in their units during the renovations. Under the proposed refinancing, the Project will be obligated to comply with the exiting affordability levels (29-units for very low income, 85-units for low-income, and one manager unit) over an extended term of at least 55 more years.
At the City Council meeting of November 7, 2017, Council authorized the California Statew...
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