Title
Recommendation to Authorize the Executive Director to Execute the First Amendment to Regulatory Agreement and Declaration of Restrictive Covenants at Eagle Village Located in the 700 Block of Buena Vista. (Housing Programs 236)
Body
To: Honorable Chair and Members of the Alameda Public Financing Authority
EXECUTIVE SUMMARY
The Housing Authority of the City of Alameda (Housing Authority) owns two affordable housing properties, commonly known as Eagle Village and Parrot Village (St. Charles, Chapin and Wood Streets, 1800 block). In 2005, a $6.8 million refunding bond was issued by the Alameda Public Financing Authority for both of these properties to allow for refinancing of the properties. In 2016, the Housing Authority negotiated the release of six Eagle Village units, which were included as part of the security interest for the loan with the lender, so that the parcel could be merged with Rosefield Village and incorporated into the Rosefield Village redevelopment project. The Housing Authority is asking for release of the associated regulatory agreement for these same six units so that they can be encumbered by a new affordable housing agreement as part of that redevelopment project.
BACKGROUND
Eagle Village consists of two parcels, APN 73-426-006 (south parcel) and APN 073-426-16 (north parcel), totaling 42 units. In 2005, the Alameda Public Financing Authority (APFA) issued a multifamily housing revenue bond to refinance the debt on Eagle Village and a 50-unit affordable housing property called Parrot Village (APN 73-425-2). The bond was in the amount of $6.8 million and U.S. Bank is the bond trustee. This is action is memorialized by Resolution No. APFA 2005-16.
The Housing Authority also owns an affordable housing project adjacent to the south parcel of Eagle Village, commonly referred to as Rosefield Village, located in the 700 block of Buena Vista and Eagle Avenues. A map is attached as Exhibit 1. The Housing Authority is planning to redevelop Rosefield Village and renovate the six units on the Eagle Village south parcel in the coming year. The redevelopment plan includes new construction of 78 units and renovation of 14 units, totaling 92 units. Design review for this redevelopment project was secured in July 2018, by Planning Board Resolution No. PB-18-15.
DISCUSSION
To facilitate the financing of the Rosefield Village project with Low-Income Housing Tax Credits, the Housing Authority is seeking release of the APFA regulatory agreement so that the Rosefield Village parcel and the Eagle Village south parcel can be merged, via a lot line adjustment, and then encumbered with a new affordable housing regulatory agreement. This release mirrors the same security interest release that was approved by the lender in 2016, Partial Release and Discharge of Deed of Trust, and attached as Exhibit 2. The Housing Authority is in good standing with the existing loan and all compliance reporting for the Eagle Village property. The lender, the bond trustee, and bond counsel have approved the transaction. While this transaction will release the affordable housing regulatory agreement for the six units on the south parcel of Eagle Village, it should be noted that these units will be subject to a new regulatory agreement as part of the Rosefield redevelopment project. In the meantime, the Housing Authority will continue to lease those units to very low- and low-income households consistent with its mission.
Approval of the First Amendment to Regulatory Agreement and Declaration of Restrictive Covenants at Eagle Village will allow the Rosefield Village project to move forward. This project will increase the density on the site and increase the total number of deed restricted affordable housing units in the City of Alameda (City).
ALTERNATIVES
• Approve the First Amendment to Regulatory Agreement.
• The APFA could decide not to approve the First Amendment to Regulatory Agreement and Declaration of Restrictive Covenants at Eagle Village or to approve the Amendment subject to different terms and conditions. However, it should be noted that the Amendment as drafted has been previously approved by the lender, bond trustee and bond counsel. If the APFA takes no action then the redevelopment of the Rosefield Village project would be delayed as the project would need to be re-designed and the development scope reduced to fit solely on the Rosefield Village property.
FINANCIAL IMPACT
There is no financial impact on the General Fund from approving the First Amendment to Regulatory Agreement and Declaration of Restrictive Covenants at Eagle Village.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The requested action is consistent with the requirements of the APFA.
ENVIRONMENTAL REVIEW
The regulatory agreements for existing affordable housing are statutorily exempt from the California Environmental Quality Act.
CLIMATE IMPACTS
There are no climate impacts from approving the First Amendment to Regulatory Agreement and Declaration of Restrictive Covenants at Eagle Village.
RECOMMENDATION
Authorize the Executive Director to execute the first amendment to Regulatory Agreement and Declaration of Restrictive Covenants at Eagle Village located in the 700 block of Buena Vista.
CITY MANAGER RECOMMENDATION
The City Manager recommends approval.
Respectfully submitted,
Debbie Potter, Community Development Director
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibits:
1. Location Map
2. Partial Release and Discharge of Deed of Trust
3. First Amendment
4.
cc: Eric Levitt, City Manager
Vanessa Cooper, Alameda Housing Authority Executive Director