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6.A. - Page 1 of 66 <br />/<�ik <br />Redwood <br />CitylCallifornia <br />Faunded 1867 <br />A,&/ <br />DATE: April 13, 2020 <br />SUBJECT <br />STAFF REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br />Resolution approving a loan assumption and subordination request to support the reconstruction of <br />affordable apartments located at 531 Woodside Road (Hallmark House) <br />RECOMMENDATION <br />Adopt a resolution (1) approving a loan assumption and subordination request for an existing loan from <br />the City to KDF Hallmark, (2) authorizing the City Manager or designee to execute the documents listed <br />below, subject to any minor, clarifying and conforming changes approved by the City Attorney, and (3) <br />authorizing the City Manager to take all actions necessary to complete this transaction, including <br />execution of any other necessary documents: <br />1. Assignment and Assumption Agreement <br />2. First Amendment to Declaration of Affordability Covenants <br />3. First Amendment to Deed of Trust with Assignment of Rents <br />4. First Amendment to Owner Participation Agreement <br />5. First Amendment to Promissory Note <br />6. Subordination Agreement <br />STRATEGIC PLAN GUIDING PRINCIPLE <br />Housing <br />BACKGROUND <br />In 2003, the City of Redwood City and the former Redwood City Redevelopment Agency (RDA) provided <br />a loan in the joint amount of $650,000 to KDF Hallmark ("Owner") for the refinance and rehabilitation of <br />the Hallmark Apartments, located at 531 Woodside Road. The purpose of the loan was for the long term <br />Page 1 of 3 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore <br />155 <br />