REPORT TO THE CITY COUNCIL
October 20, 2016
FROM: JENNIFER K. CLARK, Director
Development and Resource Management Department
THROUGH: KELLI FURTADO, Assistant Director
Development and Resource Management Department
BY: CORRINA NUNEZ, Project Manager
Housing and Community Development Division
SUBJECT
Title
RESOLUTION - Approving assignment of Annadale Housing Partners' $2,996,720 loan to DHI King's View Associates, L.P., a California limited partnership and conversion of the loan to a fifty-five-year residual receipts loan at 0% interest
Body
RECOMMENDATION
Staff recommends the City Council adopt a resolution (Exhibit "A") approving the assignment of the Annadale Housing Partners' (Annadale) $2,996,720 loan to DHI King's View Associates, L.P., a California limited partnership; and conversion of the loan to a fifty-five year residual receipts loan at 0% interest; and authorize the City Manager to execute assignment documents.
EXECUTIVE SUMMARY
On March 3, 2016, Annadale and Dawson Holdings Inc. (DHI) informed the Development and Resource Management Department that DHI was proposing to acquire and rehabilitate the Kings View Estates property; an affordable housing complex located in southwest Fresno. The complex is currently owned by Annadale. If DHI pursues its acquisition and rehabilitation of the Kings View property as proposed, staff recommends the City Council approve the assignment of the loan to DHI King's View Associates, L.P., (Exhibit "B") and convert the $2,996,720 balloon loan to a fifty-five year residual receipts loan at 0% interest.
BACKGROUND
On December 5, 2013, the City Council approved the restructure of the $2,996,720 loan for Annadale to eliminate accrued interest and late fees. The restructure was requested to reduce debt on the property and thereby allow for the owner to obtain tax credits to redevelop both the Kings View Manor and Kings View Estates. In accordance with the Co...
Click here for full text