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6.B. - Page 1 of 46 <br />/<�ik <br />Redwood <br />CitylCallifornia <br />Faunded 1867 <br />A,&/ <br />DATE: May 20, 2019 <br />SUBJECT <br />STAFF REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br />Assignment, Assumption, and Loan Modification Agreement with Redwood Oaks Associates II LP, for funds <br />to rehabilitate Redwood Oaks Apartments at 330-340 Redwood Avenue and to preserve affordable <br />housing units for 55 years. <br />RECOMMENDATION <br />By motion, approve and authorize the City Manager or designee to execute related loan modification <br />documents for funds to rehabilitate Redwood Oaks Apartments, including execution of an Assignment, <br />Assumption, and Loan Modification Agreement, an Amended and Restated Secured Promissory Note and <br />an Amended and Restated Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing, and <br />approve and authorize the City Manager to make any minor, clarifying and conforming changes to the <br />agreements specified above as approved by the City Attorney and take any action necessary to effectuate <br />the agreements. <br />STRATEGIC INITIATIVE <br />Housing <br />BACKGROUND <br />On September 12, 2000, the City Council approved funding assistance of $153,144.00 from the HOME <br />Investment Partnership (HOME) funds in form of a loan to rehabilitate Redwood Oaks Apartments located <br />at 330-340 Redwood Avenue in Redwood City. The property consists of 2 two-bedroom units and 34 one - <br />bedroom units, largely serving low-income tenants which many are Section 8 housing voucher holders. <br />On January 15, 2002, the City Council approved additional funding assistance of $88,256.22 from HOME <br />funds to cover other rehabilitation expenses for Redwood Oaks Apartments. <br />The City received a proposal for funding from HIP Housing Development Corporation (HHDC), a <br />Community Housing Development Organization (CHDO) for refinance of Redwood Oaks Apartments as <br />part of the Community Development Block Grant (CDBG)/Home Investment Partnerships Program <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore <br />29 <br />