Exhibit “B”
Assumption Request from Housing Authority of the City of Fresno
FRESNOE''
HOUSING= EOUAL HOUSIilG
www.f resnohousi ng.org
1 33 I Fulton Street, Fresno, California 93721 {559) 443-8400 TTY (800) 735-2929 II
July 23,2O26
Corrina Nunez, Project Manager
City of Fresno
Community Development Division I Planning & Development 2600 Fresno Street
Fresno, CA93721
RE: OPS Villas, L.P. - Oak Park Senior Villas
To whom it may concern,
This letter is in regards to a property known as Oak Park Senior Villas, located at2597 S. Richelle Avenue, Fresno, CA93725 (APN:481-390-43) ("Property"). This property is a 65-unit seniors'property, consisting of 64 units mixed between one and two bedrooms at 50olo-55olo Area Median lncome (AMl), and 1 manager's unit.
Fresno Housing is in preliminary discussions with the Property owner, OPS Villas, 1.P., to purchase and acquire the property. Negotiations are moving quickly with the Seller due to the Bond Holder providing a Notice of Mandatory Redemption to the Owner on February 20,2026 and calling for the outstanding Senior Bond loan to be fully repaid within 180 days. Fresno Housing, and/or an affiliate, is requesting for the City of Fresno to consent to an assignment of the City HOME Program loan(s) and restructure the loan(s) terms and outstanding balance as part of the Property acquisition. The existing Property debt is substantially greater than the current value of the property; meaning it has significant negative equity. Please see Exhibit A which outlines the current debt on the property and proposed debt restructure.
Fresno Housing is also proposing that the term of City affordability restrictions be extended to ensure the community benefit remains for decades to come. The City loan restructure is critical to not only preserve the affordability in the immediate future for this senior community but stabilize it for the long term. Fresno Housing would become the steward of the Property and be responsible to provide quality affordable housing. Fresno Housing would like to propose a new structure on the two (2) existing City of Fresno notes. ln order for the total property debt to align with the estimated property value, the City outstanding debt would need to be reduced to balance with current property value of 53,950,000. ln order to achieve this, the City of Fresno Promissory Note(s) would need to be reduced to an approximate 52.6 million. We would like for the City of Fresno to consider the following proposal:
r Assign City loan(s) to Fresno Housing and/or its affiliate o Continue to be subordinate financing
r Extend the term of the affordability restriction for a remaining term of 55 years (2081) o Reduce the total City outstanding debt to approximately 52.6 million at 20lo interest due in 55 years (2081), payable from 500/o of residual receipts cash flow FRESNO&"'
HOUSING= 6
EOUAL HOUSINO
OPPORTUilITY
www.f resnohousi n g.org
1331 FultonStreet,Fresno,Californiag3T2l (559) 443-8400 TTY(800) 735-2929 We appreciate your consideration on this matter. Please feel free to reach out to us with any questions or comments.
Sincerely,
MichaelDuarte
Deputy Executive Director
FRESNO&-
HOUSING= EOgAL HOUSINO
O'POFTUNITY
www.fresnohousing.org
133'l Fulton Street, Fresno, California 93721 (559) 443-8400 TTY (800) 735-2929 II
Exhibit A
Oak park Senior villas - Debr as of 72/2512025
Amount Not.tSoutca
1 Bonds
2 City HoME - I
3 Citv HoME - 2
s 1,351,852.00
s 5,s4s,s69.00
S Too.ooo.oo
I 7,s97,42r.(Xt
$4,185,000 principal and 51,364569 accrued interest at 2% lnterest, Maturity in 2062 0% lnterest, Maturv in 2062
Totsl:
Cur.nt Estlmrt.d Valuttlon s 3,950,000.00
Proposed Debt structure
1 Eonds s 1,351,852.00
s 2,s98,148.00
s 3,950.000.00
2 City HoME 2% A€cru€il lnterest Rate, Restart 55 year aflordability requirement, 50% residual receipt payments Tot h