AGENDA REPORT
Meeting Date: August 19, 2025
Item Number:
To: Honorable Mayor & City Council
From: Logan Phillippo, Real Property Development Manager Subject: A RESOLUTION OF THE COUNCIL OF THE CITY OF BEVERLY
HILLS AUTHORIZING THE CITY MANAGER TO SIGN A
CONDITIONAL ENFORCEABLE FUNDING COMMITMENT IN THE
AMOUNT OF $500,000, AUTHORIZING THE DIRECTOR OF
COMMUNITY DEVELOPMENT TO SIGN A FORMAL LETTER OF
SUPPORT, BOTH OF WHICH ARE RELATED TO A PROPOSED
100% AFFORDABLE SENIOR HOUSING PROJECT ON PRIVATELYOWNED PROPERTY AT 214-216 SOUTH HAMILTON DRIVE, AND
APPROVING AN EARMARK FROM THE GENERAL FUND
AVAILABLE BALANCE IN THE AMOUNT OF $500,000
Attachments: 1. Resolution
RECOMMENDATION
Staff recommends City Council adopt the subject resolution authorizing the City Manager to sign a conditional Enforceable Funding Commitment (as defined below) letter in the amount of $500,000 and authorizing the Director of Community Development to sign a letter of support, both of which are related to a proposed 100% affordable senior housing project with 82 units on privately-owned property at 214-216 South Hamilton Drive (the “Resolution”).
INTRODUCTION
The Resolution authorizes two letters related to a developer’s application for the State Department of Housing and Community Development’s (“HCD”) grant program known as the Multifamily Finance Super Notice of Funding Availability – Los Angeles Disaster (the “MFSN-LA Disaster Grant” or the “Grant”). The Resolution also approves a $500,000 earmark from the General Fund for this purpose. Additional details regarding this item can be found in a related Staff Report for the August 19, 2025, Study Session.
DISCUSSION
Related Companies in partnership with Brisa Development Partners (collectively the “Developer”) intends to develop an eight-story, 100% affordable senior housing project E-9
Meeting Date: August 19, 2025
with 82 residential units on privately-owned property at 214-216 South Hamilton Drive (“Hamilton Apartments” or the “Project”). The proposed Project was discussed with the Affordable Housing Ad Hoc Committee (Vice Mayor Mirisch and Councilmember Wells) on August 6, 2025. Details regarding the proposed Project and the Ad Hoc Committee’s discussions are included in the related staff report for the August 19, 2025, City Council Study Session.
The Resolution authorizes the City Manager to sign an Enforceable Funding Commitment letter for the Project in the amount of $500,000. The Resolution additionally authorizes the Director of Community Development to sign a letter of support for the project. Both letters are included as attachments to the Resolution.
According to the Grant’s guidelines, an Enforceable Funding Commitment is a letter or other document evidencing, to the satisfaction of HCD, a commitment of funds or a reservation of funds by a project funding source for construction or permanent financing, including, but not limited to, the following:
• Private financing from a lender;
• Deferred-payment financing, residual receipts financing, and grants from public agencies;
• Funds awarded from other HCD programs;
• A land donation in fee interest for no other consideration and that is supported by an appraisal or purchase agreement;
• Owner equity contributions or developer funds; and
• Funds for transportation projects, as applicable.
In the case of the MFSN-LA Disaster Grant, the Enforceable Funding Commitment must come from a city, county, or housing authority. Because the project is located in Beverly Hills, the developer is seeking the Enforceable Funding Commitment from the City.
Additionally, the amount of local support must be a minimum of $500,000.
The key terms and conditions written in the Enforceable Funding Commitment letter are as follows:
1. The MFSN-LA Disaster Grant is awarded to the Developer;
2. The Developer provides evidence of sufficient debt and equity to construct the Project at the closing of construction financing and pursues construction of the Project;
3. The City’s funding commitment will be awarded through a loan for the Project’s hard construction costs with a term of 55 years and a 3% simple interest rate with payments drawn from an agreed upon percentage of the residual receipts generated by the Project;
4. The Developer will execute, on forms approved by the City, a regulatory agreement, a promissory note, and a deed of trust to secure the City’s loan;
5. The deed of trust will be subordinate to other lenders as necessary for the Developer to obtain sufficient funds to construct the Project;
6. The City’s loan will be disbursed at the time of the Project’s construction financing closing given that the Developer has provided evidence of sufficient debt and equity for the Project’s construction, and other reasonable construction loan disbursement conditions have been met; Meeting Date: August 19, 2025
7. This letter may not be assigned without prior written approval of the City Manager; and
8. This funding commitment letter shall expire on the earlier of (i) the date the Developer is informed they were not awarded funds from the MFSN-LA Disaster Grant or (ii) December 31, 2027, subject to extensions as approved by the City.
Both the Enforceable Funding Commitment letter and the letter of support assist the Developer in maximizing points for their application to MFSN-LA Disaster Grant.
FISCAL IMPACT
Only if awarded funds through the MFSN-LA Disaster Grant, the City would be required to provide funding through a residual receipts loan (discussed in the Recommendation section below), which would be disbursed at the closing of the Developer’s construction financing, which is currently estimated to take place in 2027. Given this timing, and if approved by City Council, Staff would incorporate the $500,000 loan obligation into the budget process for next fiscal year.
This City is not making a financial commitment beyond this $500,000 amount and there are no other financial commitments at this time. The City would be repaid through the Project’s residual receipts, if any, over a 55-year term. Any remaining balance still outstanding at the end of the loan term (if not otherwise extended) will become due and payable. Given the fact that 100% of the units in the Project will be deeply affordable, it is Staff and the City’s consultant’s opinion that the Project will generate minimal cash flow throughout the 55-year covenant period. Therefore, it is likely that City’s financial assistance will be repaid over a protracted time period.
Ryan Gohlich,
Assistant City Manager
Approved By
Attachment 1
B0785-0001\3147634v2.doc 1
RESOLUTION NO. 25-R-_________
A RESOLUTION OF THE COUNCIL OF THE CITY OF BEVERLY HILLS
AUTHORIZING THE CITY MANAGER TO SIGN A CONDITIONAL
ENFORCEABLE FUNDING COMMITMENT IN THE AMOUNT OF $500,000,
AUTHORIZING THE DIRECTOR OF COMMUNITY DEVELOPMENT TO
SIGN A FORMAL LETTER OF SUPPORT, BOTH OF WHICH ARE
RELATED TO A PROPOSED 100% AFFORDABLE SENIOR HOUSING
PROJECT ON PRIVATELY-OWNED PROPERTY AT 214-216 SOUTH
HAMILTON DRIVE, AND APPROVING AN EARMARK FROM THE
GENERAL FUND AVAILABLE BALANCE IN THE AMOUNT OF $500,000 WHEREAS, California Department of Housing and Community Development (“HCD”) has released a Multifamily Finance Super Notice of Funding Availability – LA Disaster (“MFSN-LA Disaster NOFA”).
WHEREAS, the MFSN-LA Disaster NOFA is tailored to meet the housing needs of the Los Angeles County disaster impacted areas. To prioritize the immediate affordable housing needs for disaster survivors, funding will be awarded to successful applications through a grant. Affordable Housing projects within a 10-mile radius of the Palisades and Eaton fires are eligible to apply for grant funding.
WHEREAS, the City has been approached by Related California and Brisa Development Partners, together in partnership as 214 Hamilton, LLC (collectively “the Developer”), who intend to develop an eight-story, 100% affordable senior housing project with 82 residential units at 214-216 South Hamilton Drive, Beverly Hills, California (the “Project”).
WHEREAS, Developer intends to apply for the MFSN-LA Disaster grant and has requested City support. City support for the Developer’s Project could increase the Developer’s competitiveness for the grant based on its scoring criteria. In order to maximize points for the Developer’s grant application, the Developer is requesting that the City provide an enforceable funding commitment of $500,000 and issue a Letter of Support for the project.
Docusign Envelope ID: AA2ED962-66A2-412C-87D2-3F0A73FB81C8 B0785-0001\3147634v2.doc 2
WHERAS, the City Council desires to provide local support for the Project and Developer’s grant application through a letter of support for the project, as well as a $500,000 enforceable funding commitment in order to maximize points in the local support category of the MFSN-LA Disaster NOFA.
NOW, THEREFORE, IT IS RESOLVED THAT:
Section 1. City Council authorizes the City Manager to sign a conditional Enforceable Funding Commitment, as defined by the MFSN-LA Disaster Grant, in the amount of $500,000, substantially in the form attached hereto as Exhibit A.
Section 2. City Council authorizes the Director of Community Development to sign a Letter of Support for the Project substantially in the form attached hereto as Exhibit B.
Section 3. The City Council hereby earmarks $500,000 from the General Fund available balance for this purpose.
Section 4. The City Clerk shall certify to the adoption of the Resolution and shall cause the Resolution and her certification to be entered in the Book of Resolutions of the Council of the City.
Adopted:
__________________________
SHARONA R. NAZARIAN, PSYD
Mayor of the City of Beverly Hills, California
ATTEST:
_____________________(SEAL)
HUMA AHMED
City Clerk
APPROVED AS TO FORM:
_____________________
LAURENCE S. WIENER
City Attorney
APPROVED AS TO CONTENT:
_____________________
NANCY HUNT-COFFEY
City MANAGER
Docusign Envelope ID: AA2ED962-66A2-412C-87D2-3F0A73FB81C8 B0785-0001\3147634v2.doc 3
Exhibit A
Enforceable Funding Commitment Letter
Docusign Envelope ID: AA2ED962-66A2-412C-87D2-3F0A73FB81C8 B0785-0001\3147634v2.doc 4
[City Letterhead]
August 19, 2025
Rose Olson, Senior Vice President
Related California
18201 Von Karman Avenue, Suite 900
Irvine, CA 92612
Re: LA Disaster NOFA City of Beverly Hills Funding Commitment for Project at 214- 216 South Hamilton Drive, Beverly Hills, California
Dear Ms. Olson,
Related California and Brisa Development Partners, together in partnership as 214 Hamilton, LLC (collectively “the Borrower”), have requested that the City of Beverly Hills (the “City”) support an 82-unit one-hundred percent affordable senior housing development project (“the Project”) located at 214-216 South Hamilton Drive (the “Property”). The Property is located in the Southeast Area of Beverly Hills, and it consists of two parcels totaling 10,394 square feet (approximately 0.24 acres).
The Borrower has requested that the City provide local support for their application to the State Department of Housing and Community Development’s (“HCD”) grant program known as the Multifamily Finance Super Notice of Funding Availability – Los Angeles Disaster (the “LA Disaster NOFA” or the “NOFA”). The NOFA makes available, on a competitive basis, program funds totaling approximately $101 million for disaster impacted areas from wildfires occurring in January 2025 in Los Angeles County.
In order to maximize competitiveness for the NOFA funding, the Borrower has requested a funding commitment from the City in the amount of $500,000.
This letter serves to outline the key terms and conditions the City will impose on the construction to permanent funding commitment for the Project, which includes, but is not limited to, the following:
1. The LA Disaster NOFA is awarded to the Borrower;
2. The Borrower provides evidence of sufficient debt and equity to construct the Project at the closing of construction financing and pursues construction of the Project;
3. The City’s funding commitment will be awarded through a loan for the Project’s hard construction costs with a term of 55 years and a 3% simple interest rate with payments drawn from an agreed upon percentage of the residual receipts generated by the Project;
4. The Borrower will execute, on forms approved by the City, a regulatory agreement, a promissory note, and a deed of trust to secure the City’s loan;
5. The deed of trust will be subordinate to other lenders as necessary for the Borrower to obtain sufficient funds to construct the Project; Docusign Envelope ID: AA2ED962-66A2-412C-87D2-3F0A73FB81C8 B0785-0001\3147634v2.doc 5
6. The City’s loan will be disbursed at the time of the Project’s construction financing closing given that the Borrower has provided evidence of sufficient debt and equity for the Project’s construction, and other reasonable construction loan disbursement conditions have been met;
7. This letter may not be assigned without prior written approval of the City Manager; and
8. This funding commitment letter shall expire on the earlier of (i) the date the Borrower is informed they were not awarded funds from the LA Disaster NOFA, or (ii) December 31, 2027, subject to extensions as approved by the City.
If you have any questions regarding this matter, please contact Real Property Development Manager, Logan Phillippo by email at [email protected].
CITY OF BEVERLY HILLS
BY:
Nancy Hunt-Coffey,
City Manager
Attachment: [City Council Resolution]
Docusign Envelope ID: AA2ED962-66A2-412C-87D2-3F0A73FB81C8 B0785-0001\3147634v2.doc 6
Exhibit B
Letter of Support
Docusign Envelope ID: AA2ED962-66A2-412C-87D2-3F0A73FB81C8 B0785-0001\3147634v2.doc 7
August 19, 2025
Rose Olson, Senior Vice President
Related California
18201 Von Karman Avenue, Suite 900
Irvine, CA 92612
Re: MFSN-LA Disaster Grant City of Beverly Hills Letter of Support for Project at 214- 216 South Hamilton Drive, Beverly Hills, California
Dear Ms. Olson,
Related California and Brisa Development Partners, together in partnership as 214 Hamilton, LLC, (collectively “the Developer”) have requested that the City of Beverly Hills (the “City”) support an 82-unit one-hundred percent affordable senior housing development project (“the Project”) located at 214-216 South Hamilton Drive (the “Property”). The Property is located in the Southeast Area of Beverly Hills, and it consists of two parcels totaling 10,394 square feet (approximately 0.24 acres). On behalf of the City of Beverly Hills, I am pleased to provide this letter of support for the Project.
The Project is closely aligned with the community needs striving to assist our senior population with an opportunity to age in place. The City supports this Project and recognizes its alignment with local housing policies and the broader objectives of the Grant. The Project will contribute meaningfully to addressing the critical need for affordable housing in our community, and we look forward to collaborating with the development team to ensure its successful completion.
This letter is provided in accordance with Section IV(C)(ii)(b) – Local Support of the 2025 State Department of Housing and Community Development’s (“HCD”) grant program known as the Multifamily Finance Super Notice of Funding Availability – Los Angeles Disaster (the “Grant”), which awards up to five (5) points for submission of a formal letter of support from the head of the Department of Planning or other local public entity leading housing-related activities for a city within Los Angeles County.
This letter is not intended to be a formal approval of the Project, and the Project will be required to follow all applicable requirements for the development application and City approvals. If you have any questions regarding this matter, please contact Real Property Development Manager, Logan Phillippo by email at [email protected].
CITY OF BEVERLY HILLS
BY:
Michael Forbes,
Director of Community Development
Docusign Envelope ID: AA2ED962-66A2-412C-87D2-3F0A73FB81C8 Certificate Of Completion
Envelope Id: AA2ED962-66A2-412C-87D2-3F0A73FB81C8 Status: Sent Subject: 250819 - Hamilton Apartments - Resolution
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Document Pages: 7 Signatures: 1 Envelope Originator:
Certificate Pages: 2 Initials: 0 Logan Phillippo
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455 N. Rexford Drive
Beverly Hills, CA 90210
[email protected]
IP Address: 76.168.110.145
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Status: Original
8/14/2025 3:53:17 PM
Holder: Logan Phillippo
[email protected]
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Sharona Nazarian
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