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REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />June 26, 2017 <br /> <br />SUBJECT <br />Agreement with HIP Housing Development Corporation for Acquisition of 1512 Stafford <br />Street for Affordable Housing Preservation <br /> <br />RECOMMENDATION <br />1. By motion, approve an Agreement with HIP Housing Development Corporation for <br />Funds to Acquire 1512 Stafford Street for the preservation of affordable housing and <br />authorize the City Manager to execute the Agreement, subject to any minor, clarifying <br />and conforming changes approved by the City Attorney, and to take all actions <br />necessary to carry out the Agreement, including execution of a Subordination of Deed <br />of Trust, an Intercreditor Agreement, and any other documents necessary to complete <br />the transaction; <br />2. Adopt a resolution establishing a loan of the sum of $373,981 from the Redwood City <br />General Fund (No. 150) to the Redwood City Affordable Housing Fund (No. 299) <br /> <br />BACKGROUND <br />On April 24, 2017 the City Council by resolution approved a loan of $1,099,000 from the <br />City’s Affordable Housing Fund from HHDC to assist with the acquisition of real property <br />located at 1512 Stafford Street (“Stafford”) in Redwood City for the preservation of <br />affordable housing. The property located at 1512 Stafford includes seven apartments <br />and one 1,500 square foot commercial space. The apartments consist of one 2- <br />bedroom, five 1-bedrooms and one studio. The property was built in 1950 and has been <br />owned by the current owners since 1994. The lot size is 7,200 square feet and the <br />building, which features tuck under-parking, is 7,700 square feet. The property is <br />located within walking distance to downtown Redwood City and to the Redwood City <br />train station. It is also close to other transit options and many other community <br />amenities. <br />On April 24, 2017 the City Council also approved $189,000 of Home Investment <br />Partnership (HOME) funds and $289,750 of Community Development Block Grant <br />(CDBG) funds through the Annual Action Plan. Combined, Council approved a total of <br />$1,577,750 in funding for this acquisition loan, contingent upon preparation and Council <br />approval of a funding agreement and loan documents. <br />6.3.E. - Page 1