Report to Housing Authority
Tuesday, June 21, 2022
Consent
SUBJECT:
Title
CONSIDER ADOPTION OF RESOLUTION NO. 22-08-CHA TO EVALUATE AFFORDABLE HOUSING PROJECTS OWNED AND OPERATED BY ENTITIES CONTROLLED BY THOMAS SAFRAN AND ASSOCIATES TO REFINANCE AND REHABILITATE VILLAGGIO I AND II AND EXTEND THE MATURITY DATES OF THE LOANS; AND INCREASE RENT SUBSIDY FOR AVALON COURTYARD PROJECT (HOUSING AUTHORITY).
Body
I. SUMMARY
Thomas Safran and Associates ("Developer") has 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. Staff recommends the Housing Authority to adopt Resolution No. 22-08-CHA to carry out the required controlling documents to start the refinance process (Exhibit No. 1). The Developer proposes 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 is 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 will likely be required if the Developer is successful obtaining new financing.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. WAIVE further reading and ADOPT Resolution No. 22-08-CHA of the Carson Housing Authority, "A RESOLUTION OF THE CARSON HOUSING AUTHORITY MAKING CERTAIN FINDINGS AND AUTHORIZING STAFF TO PROCEED TO EVALUATE AFFORDABLE HOUSING PROJECTS OWNED AND OPERATED BY ENTITIES CONTROLLED BY THOMAS SAFRAN & ASSOCIATES (TSA) WITH RESPECT TO (I) THE REFINANCING AND REHABI...
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