Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Raymond Hodges, Director of Housing
Subject: Amendment No. 1 to the Loan Agreement with Housing Endowment and Regional Trust (HEART) of San Mateo County
RECOMMENDATION:
title
Measure K: Adopt a resolution authorizing the Director of the Department of Housing to execute Amendment No. 1 to the loan agreement with Housing Endowment and Regional Trust (HEART) of San Mateo County, extending the term through July 31, 2029, with no change to the not to exceed amount of $5,000,000.
body
BACKGROUND:
On July 11, 2017, the Board of Supervisors authorized the Director of Housing to execute a $5 million Measure K loan agreement with HEART for the purpose of making housing development, preservation, acquisition and rehabilitation loans to non-profit and for-profit developers and educational institutions. The County and HEART wish to amend the loan agreement to extend the term by an additional five years for a new term of July 15, 2017 through July 31, 2029.
DISCUSSION:
The loan agreement allows HEART to make two types of loans: 1) predevelopment, acquisition, construction, and bridge loans that are consistent with the terms of HEART's QuickStart Loan Program ("Development Loans"), and 2) preservation, acquisition, and rehabilitation loans. Development loans may be made for multifamily rental and ownership developments for residents earning up to 120 percent of the Medium Area Income (AMI). Preference is given to multifamily rental projects with greater levels of affordability and larger number of units. The full $5 million of the County loan may be used for such development loans. Preservation, acquisition, and rehabilitation loans may be used for workforce multifamily rental developments, with preference given to projects providing larger numbers of units. HEART may use up to $2 million of the County loan for preservation, acquisition, and reha...
Click here for full text