Title
Resolution approving Budget Amendment Number 26.059 appropriating up to $3,115,000 from the Commercial Linkage Fee Fund to support Synergy Community Development Corporation's acquisition of the Metropolitan Hotel at 220 Linden Avenue and authorizing the City Manager or their authorized designee to execute a loan agreement and related documents with Synergy Community Development Corporation.
Body
WHEREAS, the City's regulatory agreement, recorded on May 1, 2009, to the 220 Linden Avenue property known as the Metropolitan Hotel (Metro Hotel), controls the affordable rents of 62 restricted, single-room occupancy (SRO) units; and
WHEREAS, the City's regulatory agreement, which expires in April 2031, requires 62 of 68 units in the Metro Hotel to be both rent-restricted and occupied by low-income households who may earn up to 60% of the area median income for San Mateo County; and
WHEREAS, the City served the current owners of the Metro Hotel with a Notice of Default in October 2024 for failing to comply with the City's rental restriction requirements; and
WHEREAS, the City's regulatory agreement provides the City with the right to approve any purchaser of the property, and with the City's consent, in September 2025, the owners of the Metro Hotel listed the property for sale at a sales price of approximately $7 million; and
WHEREAS, Synergy Community Development Corporation (Synergy), a non-profit affordable housing developer, approached the City about purchasing the property, and Synergy negotiated a $6 million purchase price and entered into a Purchase and Sale Agreement (PSA) with the sellers; and
WHEREAS, Synergy, a southern California-based firm, specializes in both new construction and acquisition-rehabilitation of historic properties, and they are familiar with leveraging both low-income housing tax credits and historic tax credits to maximize subsidy for affordable housing preservation; and
WHEREAS, Synergy is seeking up to $3,115,000 mill...
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