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Report regarding approval of Second Modification to Regulatory Agreement and Declaration of Restrictive Covenants, and Second Modification of Deed of Trust and Assignment of Rents for the 1999 Willow Gardens Neighborhood Rehabilitation Project. (Deanna Talavera, Management Analyst II)
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RECOMMENDATION
Recommendation
Staff recommends that the City Council adopt a resolution authorizing the City Manager to execute amendments to the Redevelopment Agency (RDA) Regulatory Agreement and RDA Deed of Trust with Willow Gardens Housing Associates for the 1999 Willow Gardens Neighborhood Rehabilitation Project.
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BACKGROUND/DISCUSSION
In 1999, the City's former RDA provided financing to assist Mid-Peninsula Housing Coalition (MidPen) to acquire and assemble nine buildings, a total of 36 units, over a six-year period. The goals were to revitalize the Willow Garden neighborhood, renovate dilapidated structures, and increase the supply of affordable housing for low-income residents. Several of the transactions for this project involved receiving low-income housing funds from County and Federal sources to replace the interim funding from the former Redevelopment Agency. When the permanent financing sources were secured, several regulatory agreements, related promissory notes, and deeds of trust were not properly executed. This issue was rectified with amendments to the City's deeds of trust and regulatory agreements that were approved by City Council in 2016. Mid-Pen has subsequently identified two additional amendments to the agreements that are necessary in order to clarify and memorialize some elements of the financing arrangement. The actions for consideration, if approved, will address the remaining issues by authorizing the City Manager to amend and execute the appropriate agreements. A more detailed explanation follows.
This effort to acquire properties in Willow Gardens occurred between 1999 and 2005 with the City, the former Redevelopment Agenc...
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