NVF:SSG
4/27/2022
T-36414.001/1916899_3 1
Council Agenda: 5/24/2022
Item No.: 8.1(b)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
RESOLUTION NO.
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN
JOSE (A) RATIFYING THE SUBMITTAL OF A JOINT
APPLICATION TO THE CALIFORNIA DEPARTMENT OF
HOUSING AND COMMUNITY DEVELOPMENT FOR A
LOAN UNDER THE CALIFORNIA HOUSING
ACCELERATOR PROGRAM TO FUND THE AFFORDABLE
ROOSEVELT PARK APARTMENTS WITH FIRST
COMMUNITY HOUSING INC. AND 21 N 21ST STREET LP
IN AN AMOUNT NOT TO EXCEED $41,560,000 AND (B)
AUTHORIZING THE CITY MANAGER OR CITY
MANAGER’S DESIGNEE TO ACCEPT THE LOAN
NEGOTIATE, ENTER INTO, EXECUTE AND DELIVER THE
STANDARD AGREEMENT FOR THE LOAN, AND ALL
OTHER DOCUMENTS REQUIRED OR DEEMED
NECESSARY OR APPROPRIATE TO COMPLY WITH
LOAN AND CALIFORNIA HOUSING ACCELERATOR
PROGRAM AND RELATED ACTIONS
WHEREAS, the California Department of Housing and Community Development ("Department"), as authorized by Chapter 6.6 (commencing with Section 50672) of Part 2 of Division 31 of the Health and Safety Code, has issued a Project Solicitation and Guidelines, dated September 16, 2021, under its California Housing Accelerator program (“Solicitation”); and
WHEREAS, due to extremely short submittal timelines for the California Housing Accelerator program, the Director of Housing executed the joint application in connection with the Roosevelt Park Apartments (“Project“) in response to the Solicitation (the “Application”) along with the Project’s Sponsor, First Community Housing, Inc. and the Project’s Developer, 21 N 21st Street LP; and
NVF:SSG
4/27/2022
T-36414.001/1916899_3 2
Council Agenda: 5/24/2022
Item No.: 8.1(b)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
WHEREAS, the Council of the City of San José, a municipal corporation and charter city (“City”) intends to authorize and ratify the prior submittal of the Application in response to the Solicitation; and
WHEREAS, the Department made a conditional commitment of California Housing Accelerator funds (the “award”) in reliance on the representations in that Application (the “California Housing Accelerator Loan”); and
WHEREAS, the California Housing Accelerator Loan will be directly disbursed to the Developer as a forgivable no interest permanent loan to the project with a term of 40 years which will allow the Project to proceed without requiring an allocation of low income housing tax credits or tax exempt bonds; and
WHEREAS, staff recommends that the Council ratify the execution of the Application for the Roosevelt Park Apartments and authorize the City Manager or City Manager’s designee enter into, negotiate, and execute the documents necessary or appropriate in connection with the with the not to exceed $41,506,000 California Housing Accelerator Loan which will provide the Roosevelt Park Apartments with the funds necessary to create 80 new affordable apartments.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF SAN JOSE THAT:
a. The execution of the joint Application for the California Housing Accelerator Loan by Jacky Morales-Ferrand, the Director of Housing is hereby ratified and approved.
NVF:SSG
4/27/2022
T-36414.001/1916899_3 3
Council Agenda: 5/24/2022
Item No.: 8.1(b)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
b. The City Manager or City Manager’s designee, including Sarah Zarate, Director, is hereby authorized to enter into, negotiate and execute, and deliver an STD 213, Standard Agreement in an amount not to exceed $41,506,000, and any and all other documents required or deemed necessary or appropriate in connection with the California Housing Accelerator Loan and the California Housing Accelerator program, and to negotiate and execute all amendments thereto (collectively, the “California Housing Accelerator Loan Documents”). c. City acknowledges that the Solicitation and the Application will be incorporated in the Standard Agreement by reference and that accordingly all activities, expenditures, information, expenditure restrictions and timelines represented in the Application are enforceable through the Standard Agreement and that Funds are to be used for the allowable expenditures, uses, and activities identified in the Standard Agreement.
NVF:SSG
4/27/2022
T-36414.001/1916899_3 4
Council Agenda: 5/24/2022
Item No.: 8.1(b)
DRAFT--Contact the Office of the City Clerk at (408)535-1260 or [email protected] for final document.
ADOPTED this _____ day of ___________, 2022, by the following vote:
AYES:
NOES:
ABSENT:
DISQUALIFIED:
SAM LICCARDO
Mayor
ATTEST:
TONI J. TABER, CMC
City Clerk