REPORT TO THE CITY COUNCIL
January 15, 2015
FROM: JENNIFER K. CLARK, Director
Development and Resource Management Department
SUBJECT
Title
Actions pertaining to Annadale Housing Partners' Loan
1. RESOLUTION - Approving the assignment of Annadale Housing Partners' $2,996,720 loan to Allied Argenta Affordable Housing, LLC or its designated non-profit partner and conversion of the loan to a 55-year residual receipts loan at three percent interest
2. Authorize City Manager to execute assignment and loan documents
Body
RECOMMENDATION
Staff recommends the City Council adopt a resolution approving the assignment of the Annadale Housing Partners' $2,996,720 loan to Allied Argenta Affordable Housing, LLC (Allied) or its designated non-profit partner and conversion of the loan to a 55-year residual receipts loan at 3% interest; and authorize the City Manager to execute the assignment and loan documents, subject to approval as to form by the City Attorney.
EXECUTIVE SUMMARY
On December 5, 2014, Allied informed the Development and Resource Management Department it was proposing to acquire and rehabilitate the KingsView Manor and KingsView Estates property, two affordable housing complexes located in southwest Fresno. Both complexes are currently owned by the Annadale Housing Partners. If Allied pursues its acquisition/rehabilitation project as proposed, staff recommends that the City Council approve the assignment of the loan to Allied or its non-profit partner and convert the $2,996,720 balloon loan to a 55-year residual receipts loan at 3% interest.
BACKGROUND
On December 5, 2013, the City Council approved the restructure of the $2,996,720 loan for the Annadale Housing Partners to eliminate the accrued interest and late fees. The restructure was requested to reduce debt on the property and thereby obtain tax credits to redevelop both complexes. In accordance with the Council-approved Note terms, the restructured loan was to ...
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