To: Honorable Chair and Commissioners
From: Steve Potter, Executive Director
Prepared By: Stephanie Gaul, Housing Manager
TITLE:
Title
Mayacamas Village Loan Extension
LABEL
RECOMMENDED ACTION:
Recommendationle
Adopt a resolution authorizing the Executive Director to negotiate and execute a loan agreement, regulatory agreement and related documents with Mayacamas Village Associates (MVA) to extend the term of a $605,000 loan provided to MVA in 1992 for the Mayacamas Village Project located at 70 Calaveras Court for up to an additional 57 years.
Body
DISCUSSION:
On December 9, 1992, Mayacamas Village Associates, a California limited partnership, ("MVA") entered into a Disposition and Development Agreement (DDA) (Attachment 2), Promissory Note (Attachment 3) and associated Regulatory Agreement (Attachment 4) with the Housing Authority of the City of Napa ("Housing Authority") for the development of a 51-unit residential project for low-income households known as Mayacamas Village and located at 70 Calaveras Court in Napa (the "Property"). Under the DDA, the Authority sold the Property to MVA and provided a residual receipts loan in the original principal balance of $605,000 ("Loan") for the acquisition with a term of thirty (30) years. The regulatory agreement required that eight (8) units within the project be occupied by low-income households and seventeen (17) units within the project be occupied by very low-income households for a term of fifty-five (55) years.
Since the project was originally completed in 1994, MVA has owned and operated the property in compliance with all regulatory agreements. During the term of the loan, MVA has paid a cumulative amount of $577,599 in principal and interest. As of June 30, 2023, the outstanding principal was $485,767.
The Housing Authority's loan originally matured on December 9, 2022; however staff has been in ongoing conversations with MVA since spring of 2022 about the desire to extend the Loan. Because MVA ...
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