From: Thomas Morgan II
To: [email protected]; [email protected] Subject: Agenda Item #27
Date: Friday, August 16, 2024 7:47:31 AM
Good Morning,
While affordable housing is much needed I do have a few concerns with this agenda item.
1. The use of housing funds on already built structures. Ideally funds would be used to provide new housing. I would also recommend a limited equity stake (we participate in profits and refinance proceed distributions, but the owner would be responsible for cost overruns, to be trued up at the time of disposition). The equity percentage should be equal to the amount contributed/ value of the property, or no less than 1%.
2. There is existing debt on this facility, does this just roll and the previous assignee walk away with all the proceeds from this assignment?
3. I am not sure there would be a difference but has any consideration or analysis been done to see the public safety needs changing from 120% to 80% AMI? Is there more crime or police calls at the lower designation? If so we should add a reimbursement arrangement to the agreement with the new ownership.
4. Has this property been able to repay existing loan requirements and is it expected to be able to do so under the amendment? During the City presentation it would be great to have either staff of Midpen go over the pro forma financials.
Thank you,
Thomas Morgan