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File #: ID19-11133    Version: 1 Name:
Type: Action Item Status: Passed
File created: 8/6/2019 In control: City Council
On agenda: 8/22/2019 Final action: 8/22/2019
Title: Actions pertaining to SP Grand Resources, LLC's proposed payoffs of four HOME Investment Partnerships (HOME) Program-funded loans: 1. Invoke Exception to the Better Business Act pursuant to Section 2(b), as amended by Resolution No 2013-166 (Requires 5 Votes); 2. Approve the principal payoff plus accrued interest on two Geneva Village, L.P. HOME loans in the amount of $2,444,068.91; 3. Approve the partial principal payoff of $1,100,000 and waiver of accrued interest in the amount of $1,250,458.17 on the Tanager Springs I, L.P. HOME loan; 4. Approve the partial principal payoff of $1,600,000 and waiver of accrued interest in the amount of $1,635,533.37 on the Tanager Springs II, L.P. HOME loan; and 5. Approve the Assignment and Assumption of HOME Investment Partnerships Program Declaration of Restriction Documents between Geneva Village, LP, Tanager Springs I, LP, Tanager Springs II, LP and JK - Geneva Village, LLC, JK-Tanager Springs I, LLC, and JK - Tanager Springs II, LLC
Sponsors: Planning and Development Department
Attachments: 1. Exhibit A - GRCLA Affordable Holdings, LLC Proposal, 2. Exhibit B - CRCLA Affordable Holdings, LLC Principal Reduction and Interest Waiver, 3. Exhibit C - Case Order Case Dismissal, 4. Exhibit D - Assignment and Assumption Agreement for Declaration of Restrictions, 5. Exhibit E - Guaranty for Capital Improvements
REPORT TO THE CITY COUNCIL


August 22, 2019


FROM: JENNIFER CLARK, Director
Planning and Development Department

BY: THOMAS MORGAN, Manager
Housing and Community Development Division

SUBJECT
Title
Actions pertaining to SP Grand Resources, LLC's proposed payoffs of four HOME Investment Partnerships (HOME) Program-funded loans:
1. Invoke Exception to the Better Business Act pursuant to Section 2(b), as amended by Resolution No 2013-166 (Requires 5 Votes);
2. Approve the principal payoff plus accrued interest on two Geneva Village, L.P. HOME loans in the amount of $2,444,068.91;
3. Approve the partial principal payoff of $1,100,000 and waiver of accrued interest in the amount of $1,250,458.17 on the Tanager Springs I, L.P. HOME loan;
4. Approve the partial principal payoff of $1,600,000 and waiver of accrued interest in the amount of $1,635,533.37 on the Tanager Springs II, L.P. HOME loan; and
5. Approve the Assignment and Assumption of HOME Investment Partnerships Program Declaration of Restriction Documents between Geneva Village, LP, Tanager Springs I, LP, Tanager Springs II, LP and JK - Geneva Village, LLC, JK-Tanager Springs I, LLC, and JK - Tanager Springs II, LLC

Body
RECOMMENDATIONS

Staff recommends the City Council approve HOME loan payoffs and waiver of accrued interest as proposed by SP Grand Resources, LLC for Geneva Village, Tanager Springs I, and Tanager Springs II, approve the Assignment and Assumption of HOME Program Declaration of Restriction documents and authorize for the City Manager to sign all implementing documents, approved as to form by the City Attorney's Office.

EXECUTIVE SUMMARY

On July 3, 2019, the Housing and Community Development Division received a proposal from GRCLA - Affordable Holdings, LLC on behalf of SP Grand Resources (Exhibit "A" - Proposed Offer) to payoff the Geneva Village, L.P. HOME loans in the combined amount of $1,500,000 plus accrued interest in the amount of $944,068.91, partial princi...

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