CITY OF SAN PABLO
City Manager
1000 Gateway Avenue ● San Pablo, CA 94806
Main: 510-215-3000 ● Direct: 510-215-3001 ● Fax: 510-215-3011 www.SanPabloCA.gov
September 6, 2023
California Tax Credit Allocation Committee
915 Capitol Mall, Suite 485
Sacramento, CA 95814
Dear TCAC:
This letter is to acknowledge that the City of San Pablo (“LENDER”) supports the rehabilitation of Giant Road Apartments in San Pablo. In supporting the rehabilitation, the Lender will modify the project’s loans with the Lender for the single new tax credit partnership, to be controlled by East Bay Asian Local Development Corporation and its affiliates.
Below, please find a summary of the Lender’s loans and modifications:
Source Current
Principal
Accrued
Interest
through
June
2023*
Total
Principal and
Interest
Current
Interest
Rate
Proposed Interest
Rate
Extended
Loan
Maturity
City of
San
Pablo
$1,549,163.98 $ - $1,549,163.98 - % AFR at time of
construction
closing
(estimated –
March 2024)
55 years
*Note: The accrued interest amount is subject to change.
New Committed Loan Amounts and Terms
Type Source Principal
Amount
Accrued
Interest
March 2024
Total Loan
Amount
Interest
Rate
New
Loan
Term
Loan City of San Pablo $1,549,163.98 $0 $1,549,163.98
AFR at the
time of
construction
closing
55 Years
East Bay Asian Local Development Corporation intend to sponsor a new Federal Low Income Housing Tax Credit project for the purposes of substantially rehabilitating Giant Road Apartments.
Giant Development, L.P. has site control for this project. East Bay Asian Local Development Corporation supports the LIHTC application and will participate in the future ownership structure through Giant Development II, LLC which will serve as the General Partner. A new tax credit partnership will also be created and an Giant Development II, LLC will serve as General Partner.
The Lender supports this project and will modify existing regulatory agreement and loans for the new tax credit financing. Modification includes extending the term of its loans and affordability restrictions for a 55-year term and restating the principal and accrued interest rate at the Applicable Federal Rate (AFR) at the date of the closing, of the new financing. The Lender will also resubordinate its loans to the senior mortgage and senior residual receipts financing. The Lender may also allow additional financing subject to County program requirements.
Finally, the Lender’s regulatory agreements and loans will be assumed by the new ownership entity and the assumption will take place upon the acquisition and prior to the commencement of the rehabilitation of this project.
If you have any questions or require additional information, please contact Elizabeth Lopez at [email protected] or (510) 215-3035.
Sincerely,
___________________________ (Signature)
___________________________ (Name)
___________________________ (Title)
City of San Pablo