Laserfiche WebLink
04/13/2020 <br />RESOLUTION NO. 15832 <br />A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF <br />REDWOOD CITY APPROVING A LOAN ASSUMPTION AND <br />SUBORDINATION REQUEST TO SUPPORT THE <br />RECONSTRUCTION OF AFFORDABLE APARTMENTS <br />LOCATED AT 531 WOODSIDE ROAD (HALLMARK HOUSE), <br />APPROVING AND AUTHORIZING THE CITY MANAGER TO <br />EXECUTE RELATED DOCUMENTS, AND AUTHORIZING THE <br />CITY MANAGER TO TAKE ALL OTHER NECESSARY ACTIONS <br />WHEREAS, the City's Housing Element goals include expanding the <br />supply of affordable housing and preservation of existing affordable housing; and <br />WHEREAS, in 2003, the City of Redwood City (City) and the former <br />Redwood City Redevelopment Agency (RDA) provided a loan in the joint amount <br />of $650,000 to KDF Hallmark for the refinance and rehabilitation of the Hallmark <br />Apartments, located at 531 Woodside Road; and <br />WHEREAS, at the time the City and RDA made the loan, Hallmark <br />Apartments included 72 units, 22 restricted for very low income senior/elderly <br />households and 50 units restricted for low income households; and <br />WHEREAS, in July 2013, a substantial fire occurred at the Hallmark <br />Apartments. All tenants were forced to immediately evacuate and were not able <br />to return due to the extensive damage to the building; and <br />WHEREAS, KDF Hallmark has since established a new ownership entity, <br />Hallmark 2017 LP, which will serve as the new tax credit partnership responsible <br />for the rehabilitation and ownership of Hallmark House; and <br />WHEREAS, the City still has a loan of $650,000 on the property. KDF <br />Hallmark has requested that the City allow Hallmark 2017 LP to assume the <br />City's existing loan and that the City allow its loan to become subordinate to a <br />new construction/ permanent loan from Citibank; and <br />WHEREAS, when Hallmark 2017 LP assumes the City's loan, the <br />affordability period of 55 years will restart and extend through 2075; and <br />WHEREAS, the City issued building permits in February 2020 and the <br />property owner expects to close financing at the end of April 2020 with <br />construction beginning immediately thereafter. <br />ATTY/RESO.0023/CC RESO APPROVING A LOAN ASSUMPTION TO SUPPORT AFFORDABLE HOUSING -531 WOODSIDE RD <br />REV: 04-06-2020 PR RESO. NO 15832 <br />MUFF NO. 304 <br />Page 1 of 2 <br />