To: Honorable Chair and Commissioners
From: Vincent Smith, Community Development Director
Prepared By: Lark Ferrell, Housing Manager
TITLE:
Title
Regulatory Agreements for Charter Oaks Apartments (a 75-unit affordable apartment project located at 3017 Browns Valley Road)
LABEL
RECOMMENDED ACTION:
Recommendationle
Adopt a resolution to facilitate the financing of the acquisition and rehabilitation of the Charter Oaks Apartments by authorizing the Executive Director to execute: (1) a Release and Termination of Deferred Loan Regulatory Agreement with Charter Oaks Associates terminating the 2001 Deferred Loan Regulatory Agreement, and (2) a Termination Agreement with Charter Oaks Associates and JPMorgan Chase Bank, N.A. terminating the 2001 Bond Regulatory Agreement relating to Charter Oaks Apartments.
Body
DISCUSSION:
In 2001, the Housing Authority issued $4,215,000 in bonds. The proceeds of these bonds were loaned to Charter Oaks Associates, a California limited partnership, (the "Borrower") for the acquisition and rehabilitation of Charter Oaks, a 75-unit affordable rental project located at 3017 Browns Valley Road (the "Project"). Additionally, as part of the project's financing, the Housing Authority made a $237,500 loan to the Borrower. The Housing Authority currently has two regulatory agreements recorded against the property to ensure the ongoing affordability of the Project. This includes (1) the Housing Authority's 2001 Bond Regulatory Agreement and Declaration of Restrictive Covenants which requires the Project to remain affordable until at least 2056 ("2001 Bond Regulatory Agreement"); and (2) the Housing Authority's 2001 Deferred Loan Regulatory Agreement, which requires the Project to remain affordable through June 30, 2026 ("2001 Loan Regulatory Agreement"). Both the Housing Authority bonds and loan have been fully repaid.
It has been almost 20 years since the Project was last substantially renovated. Therefore, the Borrower recentl...
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