RESOLUTION NO. SHA 2024 - XXXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, CALIFORNIA, ACTING IN ITS CAPACITY AS THE SUCCESSOR HOUSING AGENCY, APPROVING AN AMENDED LOAN AGREEMENT FOR PHASE 2 OF THE VILLA SERENA II AFFORDABLE HOUSING PROJECT IN THE RICHMAR NEIGHBORHOOD AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE SAME AND TO TAKE ASSOCIATED ACTIONS WHEREAS, the City Council of the City of San Marcos (“City”) serves as the legislative body of the Successor Housing Agency to the former San Marcos Redevelopment Agency (“SHA”) for purposes of handling the assets and obligations of the former San Marcos Redevelopment Agency (“RDA”) following its dissolution; and WHEREAS, as the legislative body of the SHA, the City Council takes action on post- redevelopment matters, and is responsible for decisions governing land previously owned by the RDA; and WHEREAS, the SHA and the City both have a state mandate for the construction of affordable housing; and WHEREAS, National CORE (“Developer”), has approached the SHA about the redevelopment of its aging Villa Serena affordable housing project within the Richmar neighborhood (“Project”); and WHEREAS, this Project will assist in meeting the City Council’s goal of neighborhood revitalization in the Richmar neighborhood by expanding the stock of decent, safe, and affordable housing; and WHEREAS, the RDA previously authorized a project loan to the Developer for the acquisition and rehabilitation of the original Villa Serena affordable housing project in 1997; and later approved the rollover from that loan with SHA Resolution 2019-037; and WHEREAS, Phase 1 of the Villa Serena project was granted gap financing in February 2020 pursuant to SHA Resolution 2020-039, and an additional project award was made in March 2021 by way of SHA Resolution 2021-8867; and WHEREAS, the SHA previously agreed to provide gap financing in the restated and approved Development and Loan Agreement, and the SHA authorized additional financial assistance to Phase 2 of the Villa Serena II project by approving an adjusted project loan totaling $5,300,000 and the updated Replacement Housing Plan in March 2022 by way of SHA Resolution 2022-8995; and WHEREAS, the SHA previously agreed to provide additional gap loan financing in the form of a 55-year loan agreement with 3% per annum interest for an additional $1,944,343 in gap funding for National CORE to apply to the Villa Serena 2 Phase II project making their total loan $10,727,491, and the Council desires to further modify the loan documents as recommended.
NOW, THEREFORE BE IT RESOLVED, by the Successor Housing Agency of the City of San Marcos, as follows:
The foregoing recitals are true and correct and are hereby incorporated by reference as though set forth in full at this point.
Modified loan documents for Phase 2 for $10,727,491, and the terms and provisions set forth therein, are hereby approved for Villa Serena II Phase 2 for the developer, National CORE.
The new total amount of Successor Agency funds committed to the project is $10,727,491, comprised of a loan financed in the form of a 55-year loan agreement with 3% per annum interest.
The City Manager is authorized to finalize and execute the Development and Loan Agreement, together with any associated and/or required regulatory documents and/or financing documentation, consistent with the parameters set forth in such Development and Loan Agreement.
The authorization granted herein is not subject to subsequent approval by the Oversight Board of the Successor Housing Agency or the California Department of Finance.
PASSED, APPROVED AND ADOPTED by the City Council in its capacity as the legislative body of the Successor Housing Agency this 23rd day of January, 2024, by the following roll call vote:
AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS:
Rebecca D. Jones, Mayor City of San Marcos
ATTEST:
Phillip Scollick, City Clerk
Resolution No. SHA 2024 – XXXX
January 23, 2024