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6.0. - Page 1 of 34 /<;i-ik Redwood CitylCallifornia wended 1967 4W DATE: October 12, 2020 SUBJECT STAFF REPORT To the Honorable Mayor and City Council From the City Manager Addendum to the Loan Agreement with HIP Housing Development Corporation for acquisition and preservation of seven affordable housing units at 1512 Stafford Street RECOMMENDATION 1. By motion, approve an Addendum to the Loan Agreement with HIP Housing Development Corporation for funds to acquire 1512 Stafford Street for the preservation of affordable housing; and 2. By motion, authorize the City Manager to execute the Addendum to the Loan Agreement, subject to any minor, clarifying and conforming changes approved by the City Attorney, and to take all actions necessary to carry out the Addendum to the Loan Agreement. STRATEGIC PLAN GUIDING PRINCIPLE Housing BACKGROUND On April 24, 2017, the City Council approved a $1,577,750 loan to assist HIP Housing Development Corporation ("HIP Housing") with the acquisition of 1512 Stafford Street ("Stafford") in Redwood City for the preservation of affordable housing. The City's loan is comprised of $1,099,000 from the City's Affordable Housing Fund, $189,000 of Home Investment Partnership (HOME) funds and $289,750 of Community Development Block Grant (CDBG) funds. The Stafford property includes seven apartments and one 1,500 square foot commercial space. The apartments consist of one 2 -bedroom unit, five 1 - bedrooms units, and one studio. Six of the units are for low-income households earning 80% of area median income (AMI) or less, and the seventh unit is for a very -low income household, earning 50% AMI or less. The very -low income unit will remain at this affordability level for the first ten years and then will Page 1 of 3 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org 136