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File #: 21-350    Version: 1 Name:
Type: Resolution Status: Passed
File created: 2/25/2021 Departments: HOUSING
On agenda: 5/4/2021 Final action: 5/4/2021
Title: Adopt a resolution authorizing the Director of the Department of Housing, or designee, in consultation with County Counsel, to negotiate and execute amendments to existing Deed of Trust and Assignment of Rents, Declaration of Restrictive Covenant, Loan Agreement and Promissory Note (collectively, "Loan Documents") memorializing a loan to EPA Woodlands Associates, L.P., for the purpose of developing affordable rental housing in Menlo Park in a total amount of $190,000 for a term of fifty-five (55) years from January 7, 1992 to January 7, 2032 to (a) become a residual receipts loan accruing three (3) percent simple interest beginning January 1, 2020, (b) forgive accrued interest in a total amount of $834,862, and (c) extend the maturity of the loan from 2032 to 2075 and the effective term of the Affordability Covenant an additional 55 years from January 1, 2020.
Attachments: 1. 20210504_r_WillowCourtLoanModification
Special Notice / Hearing: None__
Vote Required: Majority

To: Honorable Board of Supervisors
From: Raymond Hodges, Director of Department of Housing
Subject: Amendments to Loan Documents between County and EPA Woodlands Associate, L.P.

RECOMMENDATION:
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Adopt a resolution authorizing the Director of the Department of Housing, or designee, in consultation with County Counsel, to negotiate and execute amendments to existing Deed of Trust and Assignment of Rents, Declaration of Restrictive Covenant, Loan Agreement and Promissory Note (collectively, "Loan Documents") memorializing a loan to EPA Woodlands Associates, L.P., for the purpose of developing affordable rental housing in Menlo Park in a total amount of $190,000 for a term of fifty-five (55) years from January 7, 1992 to January 7, 2032 to (a) become a residual receipts loan accruing three (3) percent simple interest beginning January 1, 2020, (b) forgive accrued interest in a total amount of $834,862, and (c) extend the maturity of the loan from 2032 to 2075 and the effective term of the Affordability Covenant an additional 55 years from January 1, 2020.

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BACKGROUND:
EPA Woodlands Associates, L.P., a California limited partnership ("Borrower"), is the owner of an affordable housing project for families in the City of Menlo Park. The six (6) unit project, known as "Willow Court," is located at 1141 Willow Road in the City of Menlo Park (APN: 062-09-3470) ("Property") and consists of two (2) buildings that were built in 1992.

In 1992, the County made a loan to Borrower in the total amount of $190,000 in Community Development Block Grant ("CDBG") funds to assist with the development of Willow Court ("Loan"). The Loan is set to mature on January 7, 2032, and currently bears an interest rate of 6% per annum with unpaid interest compounding on annual basis. While the current principal remains $190,000, the accrued interest is $834,862.87. As outlined in the Declaration of Restr...

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