Report to Housing Authority
Tuesday, May 07, 2019
Consent
SUBJECT:
Title
CONSIDER AN OWNER PARTICIPATION AGREEMENT (OPA) BY AND BETWEEN THE CARSON HOUSING AUTHORITY AND LOS ANGELES HOUSING PARTNERSHIP, INC. AND THE RICHMAN GROUP OF CALIFORNIA DEVELOPMENT COMPANY, LLC FOR THE REHABILITATION AND RE-SYNDICATION OF THE CARSON TERRACE AFFORDABLE HOUSING PROJECT AND A NEW LOAN FOR THE PROPERTY 632 EAST 219TH STREET (HOUSING AUTHORITY)
Body
I. SUMMARY
On June 1, 1999, the former Carson Redevelopment Agency ("Agency"), entered into an Owner Participation Agreement ("OPA") with Carson Terrace, L.P., ("Original Owner") of the 63 senior citizen apartment project (one of which is a manager's unit), a tax credit affordable housing project (Exhibit No. 1). Carson Terrace, L.P. includes Los Angeles Housing Partnership, Inc. a California non-profit public benefit corporation ("LAHP") as general partner, and LAHP Holdings III, LLC as the limited partner.
In 2012, upon dissolution of redevelopment agencies by State action, the Carson Housing Authority (Authority") was created and became the successor in interest to the Agency's role in the OPA.
A Joint Development Agreement was executed between LAHP and The Richman Group of California Development Company, a California limited liability company ("TRG") in February 2018. LAHP and TRG are now collectively the "New Developer," and this action is to allow the Authority to enter into a new OPA with the New Developer, which will also terminate the Original OPA upon closing.
The New Developer is the lead for the Carson Terrace Rehabilitation and Re-syndication Project, which will consist of a sale, refinance and rehabilitation of the building to make the necessary repairs and upgrades to the exterior and interior of the property due to deferred maintenance and other issues. A new loan is being obtained to consolidate the debt to ensure project will meet its financial obligations. Once the new loan is in place the Original OPA sh...
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