Report to the City Council, the City in its capacity as Housing Successor to the Redevelopment Agency of the City of Fresno and the Fresno Revitalization Corporation
April 22, 2021
FROM: MARLENE MURPHEY, Executive Director
Housing Successor Agency to the Redevelopment Agency
CORRINA NUNEZ, Project Manager
Housing and Community Development Division
SUBJECT
Title
Approve a First Amendment to the April 12, 2006, Owner Participation Agreement with Martin Luther King, LP authorizing the City of Fresno, a municipal corporation (City) and the City, in its capacity as Housing Successor to the Redevelopment Agency (FHS) to subordinate to a senior mortgage lender conditioned upon full repayment of City and FHS Loans
Sponsors: Housing Successor to the Redevelopment Agency
Body
RECOMMENDATION
It is recommended that the City and FHS approve the First Amendment to the April 12, 2006, Owner Participation Agreement (Exhibit "A") that provided for the acquisition and rehabilitation of the Martin Luther King Square Apartments, authorizing the City to subordinate its $500,000 HOME Investment Partnerships loan, FHS to subordinate its $500,000 housing set-aside loan, and allow the City and FHS to subordinate the Regulatory Agreement to a senior mortgage lender for purposes of refinancing conditioned upon the full payoff of both loans at refinancing.
BACKGROUND
On March 15, 2005, and effective as of April 12, 2006, the Council and RDA approved an Owner Participation Agreement (Agreement) with Martin Luther King Square, LLC for the acquisition and rehabilitation of the Martin Luther King Square Apartments located at 823 East Florence Avenue in Fresno (District 3). After executing the Agreement, Martin Luther King Square, LLC converted to a Martin Luther King Square, LP, a California limited partnership. The April 12, 2006, agreement provided a $500,000 HOME loan from the City and a $500,000 FHS Housing Set-Aside loan; both of which were structured as 55-year...
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