RES 2024040 - Laserfiche WebLink

RESOLUTION NO. 2024-040 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON TO APPROVE THE RIDGE VIEW COMMONS SENIOR RENTAL HOUSING COMPLEX'S GROUND LEASE, REGULATORY AGREEMENT, AMENDED AND RESTATED PROMISSORY NOTE, AND RELATED DOCUMENTS, AND AUTHORIZE THE CITY MANAGER TO EXECUTE ALL DOCUMENTS, INCLUDING SUBORDINATION AGREEMENTS, FOR EDEN HOUSING'S TAX CREDIT FINANCING FOR THE RENOVATION OF RIDGE VIEW COMMONS WHEREAS, Ridge View Commons at 5200 Case Avenue is a 200 -unit senior rental housing complex. The City owns the underlying land and has a Ground Lease with Eden Housing, which owns the apartment buildings and manages the rental of very -low and low-income affordable units as well as market -rate units at the complex; and WHEREAS, when Ridge View Commons was originally developed in 1989, the City acquired the land, waived development fees, and provided loans in the amount of: $4,000,000 in 1988 from a Department of Housing and Urban Development (HUD) grant through the Housing Development Grant (HODAG) program; and $2,250,000 loan in 1999 increased by $225,000 in 2009 from the City's Affordable Housing Funds. As Ridge View Commons provides many significantly affordable units, the complex has not been able to pay off these loans, and outstanding interest has continued to accrue; and WHEREAS, Eden Housing has been selected by the State of California to receive an allocation of tax exempt bond financing and low-income housing tax credits to fund capital improvements for the renovation of Ridge View Commons, as well as upgrade to about 20 units to meet current accessibility requirements. Eden Housing has asked to convey the complex to a new limited partnership controlled by an affiliate of Eden, amend these existing City loans, have a new regulatory agreement to clarify affordability requirements, modify the ground lease to extend the term as required by the tax credit financing, and subordinate the deed of trust securing repayment of the City loans to the construction/permanent lender; and WHEREAS, the tax credit financing will ensure the renovation of Ridge View Commons so that it can continue to serve as a vital senior housing complex with affordable units that keeps existing residents safely in the Pleasanton community, thereby implementing the Livibility and Community Development strategies of the ONE Pleasanton strategic plan. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES RESOLVE, DECLARE, DETERMINE AND ORDER THE FOLLOWING: SECTION 1. Finds that the agreements facilitate the funding for the rehabilitation, maintenance and repair of the existing residential improvements at Ridge View Commons and those are a Class 1 Categorical Exemption under the California Environmental Quality Act (CEQA) per Regulation §15301 Existing Facilities. SECTION 2. Approves: (A) Amended and Restated Documents (Promissory Note, Deed of Trust, Regulatory Agreement) attached as Exhibit A; (B) Amended and Restated Ground Lease attached as Exhibit B; agrees to subordinate the City deed of trust to the construction/permanent lender, and authorizes the City Manager to execute any required Subordination Agreement(s) in a form approved by the City Attorney; and authorizes the City Manager and City Attorney to make minor modifications to the agreements; and authorizes the City Manager to execute the