January 3, 2022
Mr. Charles Ching
City of San Pablo Assistant City Manager
City of San Pablo
1000 Gateway Avenue
San Pablo, CA 94806
Re: Subordination Request for Rumrill Apartment- 1883 Rumrill Blvd., San Pablo, CA 94806 Refinance of Existing Commercial Loan
Dear Mr. Ching,
We are requesting the City of San Pablo Council’s authorization for subordination of the City’s loans for the above referenced property to the primary lender’s new loan. All City and other regulatory agency documents and affordability restrictions will continue to be in place.
The current loan with Beneficial State Bank has expired and we were able to secure a short term extension until we are able to obtain all the necessary subordination authorizations for our refinance, including the City’s. Typically, commercial loans are 10 years in duration. We have been able to secure a 30 year loan with the same lender at an interest rate of 4.17%. This is an excellent rate given the interest rate market for commercial loans. The current loan rate is 5.25%.
We have no other viable option and must refinance the existing loan an d continue to operate and maintain the property and necessary capital improvement work.
Nearly 30 years ago, Lao Family Community Development with the support of the City of San Pablo (former Redevelopment Agency), Contra Costa County, LIHTCs, investor, conventional lenders, and other entities developed the Rumrill Apartments as an affordable 32 unit permanent housing project.
The property is serving its purpose and being managed and operated as a quality, safe and attractive affordable housing property. It is a gated community with onsite laundry, multi-purpose resident service room, onsite parking, resident gathering, kids play areas, with 2, 3, and 4 bedroom units for low-income San Pablo families with onsite management and adjacent workforce, education, training and supportive services. This is critical given the continued aftermath of COVID-19 and its effects on immigrant and low-income families’ employment outlook.
Thank you for the City of San Pablo’s continued partnership. We look forward to continuing to serve San Pablo families. Let me know if you need any other information.
Sincerely,
Kathy Chao Rothberg
Chief Executive Officer
Lao Family Community Development Inc.
C/O
Lao Park Housing Corporation, GP
Lao Park Housing Associates LP
DocuSign Envelope ID: 30B9DE8A-7100-46E9-8D36-E4D5A8CEA54F