Title
Report regarding a 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 with Synergy Community Development Corporation to preserve affordable housing. (Mike Noce, Housing Manager; Pierce Abrahamson, Management Analyst II)
Label
RECOMMENDATION
Recommendation
Staff recommends that the City Council adopt a 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 supporting documents with Synergy Community Development Corporation to preserve affordable housing.
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BACKGROUND
A City regulatory agreement, recorded on May 1, 2009, controls the affordable rents of 62 of the 68 single-room occupancy (SRO) units at 220 Linden Avenue, known as the Metropolitan Hotel (Metro Hotel). The regulatory agreement, which expires in April 2031, requires the 62 restricted units to be affordable and occupied by low-income households. Specifically, households may earn up to 60% of the area median income (AMI) and the maximum rent for these units is roughly $1,648 per month. 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. At that time, staff had identified that the owners were substantially out of compliance with the City's regulatory agreement for multiple years. Over the last year, the owners made some progress on correcting their compliance issues; however, the property's default status remains unresolved.
The City's ...
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