ADMINISTRATIVE REPORT
MEETING DATE: February 12, 2025 AGENDA CATEGORY: Consent - Agreements TO: Honorable Mayor and City Council
FROM: Jennifer M. Byers, Economic and Community Development Director DATE: January 31, 2025
SUBJECT: Amendment 1 to Agreement No. 16-080 with the Housing Authority of Kern and the Kern Villa San Dimas, LLC)
for the Assignment and Assumption of the Assigned Documents for the Villa San Dimas Affordable Housing Development Loan Agreement from the Housing Authority of the County of Kern to Kern Villa San Dimas, LP. (Ward 3)
RECOMMENDATION:
Staff recommends approval of the Amendment.
BACKGROUND:
On May 4, 2016, the City of Bakersfield entered into Agreement No. 16-080 with the Housing Authority of the County of Kern (Housing Authority) to provide $1,500,000 in HOME Investment Partnerships grant funding to rehabilitate the Villa San Dimas multifamily affordable housing development located at 601 36th Street.
Documents related to this Loan Agreement including the Deed of Trust, Regulatory Agreement, and Promissory Note were assigned to the developer, the Housing Authority. At the time the Agreement was approved by the Bakersfield City Council, the Housing Authority agreed to repay the loan should there be any default on the Agreement.
All rehabilitation activities stipulated in Agreement No. 16-080 have been completed by the developer, and the Housing Authority is now requesting to transfer ownership of the Project Property located at 601 36th Street to Kern Villa San Dimas, LLC.
This transfer of ownership to Kern Villa San Dimas, LLC will allow the Housing Authority to enter into an agreement with the new owner entity to provide Section 8 tenant-based rental assistance to low- income families under the housing choice voucher program of the U.S. Department of Housing and Urban Development (HUD).
City staff has reviewed the transfer proposal and recommends amending Agreement 16-080 to transfer all rights, obligations and Assigned Documents of the Villa San Dimas multi-family housing development located at 601 36th Street from the Housing Authority to Kern Villa San Dimas, LLC.
FISCAL IMPACT:
No fiscal impact.
COUNCIL GOAL:
Safety and Resilience
ATTACHMENT:
Amendment