To: Board of Supervisors
From: John Kopchik, Director, Conservation and Development
Report Title: Approval of subordination agreements to permit the refinancing of the senior loan for Grayson Creek Apartments
?Recommendation of the County Administrator ? Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE the Conservation and Development Director, or designee, to execute a subordination agreement with Berkadia Commercial Mortgage, LLC, and a subordination agreement with the State of California - Department of Housing and Community Development, to permit the refinancing of the senior debt associated with an affordable housing development known as Grayson Creek Apartments, located at 100 Chilpancingo Parkway in the City of Pleasant Hill.
FISCAL IMPACT:
There is no fiscal impact.
BACKGROUND:
In 1998 the County entered into Disposition, Development, and Loan Agreement (DDLA) with BRIDGE Housing ("BRIDGE"), a non-profit affordable housing developer, to loan $1,750,000 in Community Development Block Grant (CDBG) funds for the new construction of a 70-unit multi-family affordable housing development known as the Grayson Creek Apartments, located at 100 Chilpancingo Parkway in the City of Pleasant Hill.
In 2001 the County provided an additional $825,000 in CDBG funds to BRIDGE for the project. With the additional $825,000 in CDBG funds, the County and BRIDGE executed a Modification Agreement and Memorandum of First Amendment to amend the original Deed of Trust to include the additional $825,000 in CDBG funds and to secure a combined total of $2,575,000 in CDBG funds provided by the County. An Amended and Restated Promissory Note was also executed by BRIDGE, evidencing the additional $825,000 in County CDBG funds and a combined total principal amount of $2,575,000 in County CDBG funds.
In 2003, the California Housing Finance Agency (CalHFA) provided BRIDGE with two loans with a collective amount of $9 million to refinance the senior debt a...
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