Report to Housing Authority
Tuesday, February 06, 2024
Consent
SUBJECT:
Title
CONSIDER RATIFICATION OF CLOSING DOCUMENTS RELATED TO AFFORDABLE HOUSING PROJECTS OWNED AND OPERATED BY ENTITIES CONTROLLED BY THOMAS SAFRAN AND ASSOCIATES, REFINANCING AND REHABILITATING VILLAGGIO I AND II AND EXTENDING THE MATURITY DATES OF THE LOANS, AND THE SIXTH AMENDMENT TO THE DISPOSTION AND DEVELOPMENT AGREEMENT FOR AVALON COURTYARD, ALL AUTHORIZED PURSUANT TO RESOLUTION NO. 22-08-CHA APPROVED BY THE HOUSING AUTHORITY BOARD ON JUNE 21, 2022 (HOUSING AUTHORITY)
Body
I. SUMMARY
In 2021, Thomas Safran and Associates ("Developer") presented a proposal to refinance and rehabilitate the two affordable housing projects known as Villaggio Senior Apartments (also referred to as Villaggio I, as well as Villaggio II, jointly referred as the Villaggio Properties). Another aspect of the proposal is for the Developer to rehabilitate and increase the amount of rent subsidy at the Avalon Courtyard project. The Housing Authority adopted Resolution No. 22-08-CHA on June 21, 2022 to start the refinance process (Exhibit No. 1). The Developer proposed to use HUD Section 223(f) loans to concurrently fund capital improvements, replenish replacement and operating reserves, and extend Avalon Courtyard rental subsidies.
The approval of Resolution No. 22-08-CHA was sufficient authority for the Developer to pursue the refinancing of the loans with CalHFA and the private lender, and to secure new HUD-backed financing on the terms described in the resolution. Amendments to the Housing Authority agreements were processed as part of the new financing, which closed on January 30, 2024. This action is to ratify these agreements in a public meeting.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
RATIFY THE APPROVAL AND EXECUTION OF the following agreements entered into by the Housing Authority pursuant to Resolution No. 22-08-CHA on June 21, 2022:
1. Villaggio I (owner is Grace Hou...
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