AgdaPkt 2019-03-25 Joint SA PFA - Laserfiche WebLink

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6.D. - Page 1 of 19 /<�ik Redwood CitylCallifornia Faunded 1867 A,&/ DATE: March 25, 2019 SUBJECT STAFF REPORT To the Honorable Mayor and City Council From the City Manager Provide Support for Waverly Place Apartments Affordable Housing Project by Allowing Repayment of City Loans for Pre -Development Activities to Occur After Payment of Final Project Loans RECOMMENDATION By motion, approve loan subordination requests for loans from the City to the Mental Health Association of San Mateo County and authorize the City Manager to execute the subordination agreements. STRATEGIC INITIATIVE Housing BACKGROUND The City of Redwood City provided a loan in the amount of $400,000 in 2013 and another loan of $200,000 in 2015 to the Mental Health Association of San Mateo County ("MHA") to acquire property and conduct site clearance activities for the development of new affordable rental housing at 105 5th Avenue in unincorporated Redwood City, called the Waverly Place Apartments. The City used its federal Community Development Block Grant ("CDBG") funds to provide both loans. The terms of the funding agreement included a 55 year period of affordability through a deed restriction. During 2013 and 2017 MHA secured other financing to complete the development and construction of the new affordable housing and in 2017 closed loans and began construction. The construction was completed and a grand opening was held in May 2018. All the units were occupied in June 2018. The Waverly Place Apartments provide permanent supportive housing for very low income, formerly homeless adults with mental health disabilities. The project includes 16 units including one onsite manager's unit, a leasing office, community room, laundry rooms and outdoor community space. City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore 106