RESOLUTION NO. -25
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANT HILL
AUTHORIZING THE CITY MANAGER TO ENTER INTO SUBORDINATION
AGREEMENTS WITH BRIDGE HOUSING AND TWO SENIOR LENDERS FOR THE GRAYSON CREEK APARTMENTS AT 100 CHILPANCINGO PARKWAY
WHEREAS, the former City of Pleasant Hill Redevelopment Agency provided a $4,500,000 dollar loan to assist the affordable housing project, Grayson Creek Apartments at 100 Chilpancingo Parkway and agreed to subordinate to the primary project loan; and WHEREAS, in 2001, the former City of Pleasant Hill Redevelopment Agency agreed to an amendment that split the original loan into a $1,005,000 loan and a $6,815,000 grant and continued to subordinate to project loans from the California Housing Finance Agency (“CalHFA”) and California Department of Housing and Community Development (“HCD”); and WHEREAS, Bridge Housing has requested the City enter into a new subordination agreement with Berkadia Commercial Mortgage LLC due to a refinancing of the CalHFA loan, such that the City’s original subordinate financial position does not change, only to note that the City is subordinate to the new primary loan, which will replace the existing CalHFA loan; and WHEREAS, HCD is preparing new loan documents to commemorate its existing loan, and Bridge Housing has further requested that the City enter into a new subordination agreement among the City, Bridge Grayson Creek Associates, and HCD to affirm the City’s position as subordinate to the HCD loan; and
WHEREAS, the purpose of the refinancing of the existing loan is to make improvements and maintenance repairs to the apartment complex.
NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Pleasant Hill that the City Manager is authorized to execute a subordination agreement between the City and Berkadia Commercial Mortgage LLC in substantially the form attached hereto as Exhibit A, and is further authorized to execute a second subordination agreement by and among the City, Bridge Grayson Creek Associates, and HCD in substantially the form attached hereto as Exhibit B, both for the Grayson Creek Apartments at 100 Chilpancingo Parkway.
ADOPTED by the City Council of the City of Pleasant Hill at a regular meeting held on this 17th day of November, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
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SUE NOACK, Mayor
ATTEST:
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LYONE P. CONNER, City Clerk