AgdaPkt 2018-02-12 Joint SA PFA - Laserfiche WebLink

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REPORT To the Honorable Mayor and City Council From the City Manager February 12, 2018 SUBJECT Agreement with MP Mosaic Garden Associates, L.P. for Funds to Refinance 3752-3770 Rolison Road (formerly known as Atherton Court) in order to Provide for Long Term Affordable Housing within an existing 55-unit apartment building RECOMMENDATION 1. Adopt a resolution approving a loan and related loan documents in the amount of $1,100,000 to MP Mosaic Garden Associates, L.P. for funds to refinance 55 units of affordable housing and authorizing the City Manager or designee to execute loan documents necessary to effectuate the loan, subject to any minor, clarifying and conforming changes approved by the City Attorney, and to take all actions necessary to carry out the Agreement, including execution of a Subordination Agreement, an Intercreditor Agreement, and any other documents necessary to complete the transaction; and 2. Adopt a resolution establishing a short term loan of the sum of $910,000 from the Redwood City General Fund (No. 150) to the Redwood City Affordable Housing Fund (No. 299) BACKGROUND On April 24, 2017 the City Council by resolution approved a loan of $1,100,000 from the City’s Affordable Housing Fund for MidPen Housing to assist with the acquisition of real property located at 3752-3770 Rolison Road (“Mosaic Gardens”, formerly named Atherton Court) in Redwood City for the preservation of affordable housing. Mosaic Gardens is a 55 unit apartment complex located at 3752, 3762, and 3770 Rolison Road situated on an approximately 0.74 acre site. Mosaic Gardens includes three two-story garden style apartment buildings constructed in 1961 and 1962. The buildings consist of 53 studios and two one-bedroom units, largely serving low-income tenants who receive rental subsidies from Abode Services and other service agencies from San Mateo and Santa Clara Counties. Many tenants are also Section 8 housing voucher holders. The property currently includes a rental office, laundry rooms, covered and uncovered parking and outdoor courtyard space. The funding Council approved for this acquisition loan was contingent upon preparation and Council approval of a funding agreement and loan documents on or before February 1, 2018. Due to the timing of the tax credit financing the loan closing was advanced to February 28, 2018 and, as a result, the resolution of Council approving the loan documents includes renewed approval of the underlying loan. The approval of 6.3.A. - Page 1