9701 Wilshire Boulevard, Suite 700, Beverly Hills, CA 90212 310.779.7729 pacwest.com
March 23, 2023
City of San Pablo
1000 Gateway Avenue
San Pablo, CA 94070
Attention: Charles Ching, Assistant City Manager
Re: Alvarado Gardens Affordable Housing Project
I’m writing regarding the proposed Affordable Housing Regulatory Agreement (“Agreement”), and referenced income restrictions (“Restrictions”), in the Amended and Restated Disposition and Development Agreement associated with the above referenced project (“Project”) that incudes, by reference, provisions in the Surplus Lands Act. As you are aware, Pacific Western Bank (“PWB”) has agreed to provide both construction and permanent financing for the Project subject to certain terms and conditions. PWB’s approved terms and conditions do not contemplate that the Restrictions in the Agr eement will be senior to our deed of trust, and our underwriting assumed subordination. Further, PWB hasn’t completed a financing for an affordable housing project without subordination of similar restrictions. As a result, it’s imperative to the success o f the financing for the Project that the Restrictions be subordinated to PWB’s deed of trust.
Please don’t hesitate to contact me at (310 ) 779-7729 if y ou have any questions reading this request.
Sincerely,
Daniel Bronfman
Daniel Bronfman
Managing Director
Cc: Nicole Murphy
Murphy & Associates
455 Capitol Mall, Suite 403
Sacramento, CA 95814