REPORT TO THE CITY COUNCIL
March 23, 2017
FROM: JENNIFER K. CLARK, Director
Development and Resource Management Department
THROUGH: KELLI FURTADO, Assistant Director
Development and Resource Management Department
BY: THOMAS MORGAN, Housing Manager
Housing and Community Development Division
CORRINA NUNEZ, Project Manager
Housing and Community Development Division
SUBJECT
Title
RESOLUTION - Amending Resolution No. 2016-208 and revising the interest rate on DHI King's View Associates, L.P.'s Note as follows: zero percent annually years one through five and increasing to the annual long term Applicable Federal Rate, as published on the date of close of escrow, at the commencement of year six.
Body
RECOMMENDATION
At the request of DHI, staff recommends the City Council approve an amended resolution revising the interest rate on DHI King's View Associates, L.P.'s (DHI) Note as follows: zero percent annually year one through year five and increasing to the annual long term Applicable Federal Rate (AFR), as published on the date of close of escrow, at the commencement of year six.
EXECUTIVE SUMMARY
On March 13, 2017, DHI informed the Housing and Community Development Division that due to an unanticipated requirement, the interest on the Kings View Estate Rehabilitation assigned note interest rate to be revised on DHI King's View Associates, L.P.'s (DHI) Note as follows: zero percent annually year one through year five and increasing to the annual long term Applicable Federal Rate (AFR), as published on the date of the close of escrow, at the commencement of year six. DHI has expressed that this increase is necessary in order to close escrow as planned during the month of March, 2017.
BACKGROUND
On October 20, 2016, the Council approved an Assignment and Assumption (Exhibit "A") of the note at zero percent interest to DHI for the substantial rehabilitation of the King's View Estates, a 116 multifamily com...
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