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Page 1 of 5 <br />Item #6 <br /> CITY COUNCIL AGENDA REPORT <br /> <br />May 21, 2024 <br />Community Development <br /> <br />TITLE: ADOPT A RESOLUTION APPROVING THE RIDGE VIEW COMMONS SENIOR <br />RENTAL HOUSING COMPLEX'S AMENDED AND RESTATED LOAN <br />AGREEMENT, GROUND LEASE AND REGULATORY AGREEMENT, AND <br />AUTHORIZE THE CITY MANAGER TO EXECUTE ALL DOCUMENTS, <br />INCLUDING SUBORDINATION AGREEMENTS, AND TAKE ALL STEPS <br />NECESSARY TO REFINANCING AND RENOVATION OF RIDGE VIEW <br />COMMONS <br /> <br />SUMMARY <br />Ridge View Commons (Ridge View) is a 200-unit Low Income Housing Tax Credit (LIHTC) <br />rental housing development for seniors 62 years and older. Ridge View was constructed in <br />1989 on land at 5200 Case Avenue which is owned by the City and leased to Eden Housing, a <br />non-profit public benefit corporation. Eden Housing pursued an update of its finances for the <br />lease and operation of Ridge View, known as a resyndication, in 2019, 2020, and again in <br />2023 when it submitted an application to secure an allocation of low-income housing tax <br />credits and tax-exempt bond financing. The Ridge View project successfully secured authority <br />for approximately $40 million in tax-exempt bond financing and $32 million in equity to be <br />provided by a low-income housing tax credit investor, for the purpose of rehabilitating and <br />renovating the development. The official award was announced on December 6, 2023, and the <br />award requires Eden Housing to close its financing and start renovation by approximately June <br />1, 2024. All the relevant City-related financing documents must be executed and delivered to <br />escrow prior to the June 1, 2024, deadline. <br /> <br />RECOMMENDATION <br />Adopt a Resolution to: <br />1. Approve an Amended and Restated Ground Lease, an omnibus Assignment and <br />Amendment to Loan Documents, an Amended and Restated Promissory Note, a Leasehold <br />Deed of Trust, and a Regulatory Agreement, and authorize the City Manager, or designee, to <br />execute each such document substantially in the forms attached to the Resolution, with such <br />modifications as may be approved by the City Manager in consultation with the City Attorney; <br /> <br />2. Allow subordination of the City's Leasehold Deed of Trust to deeds of trust and regulatory <br />agreements to be executed for the benefit of the project construction lender and required in <br />connection with the bond financing for the project; and <br /> <br />3. Authorize the City Manager, or designee, to execute such additional documents and to take <br />all steps necessary to implement the transactions described in this Agenda Report and the <br />Resolution. <br /> <br /> <br />Page 69 of 720