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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />OCTOBER 2, 2018 <br />TITLE: <br />APPROVE REQUEST FOR CONSENT <br />FROM C&C DEVELOPMENT COMPANY, <br />LLC AND ORANGE HOUSING <br />DEVELOPMENT CORPORATION TO <br />INCREASE THE PERMANENT LOAN FOR <br />THE DEPOT AT SANTIAGO <br />(STRATEGIC PLAN NO. 4,5) <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />1W11"WO 1 <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on 1s' Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />1. Authorize the City Manager and Clerk of the Council to approve the request for consent from <br />C&C Development Company, LLC and Orange Housing Development Corporation to increase <br />the permanent loan up to $6,420,000 for the Depot at Santiago. <br />2. Authorize the City Manager and Clerk of the Council to execute the Junior Lienholder's <br />Consent to a Modification Agreement between Bank of America, N.A, California Community <br />Reinvestment Corporation, and Depot at Santiago, L.P., and any other documents as may be <br />required to increase the permanent loan up to $6,420,000 for the Depot at Santiago, subject <br />to non -substantive changes approved by the City Manager and City Attorney. <br />On August 21, 2018, the City received a request from C&C Development and Orange Housing <br />Development Corporation (collectively the "Developer") for consent to increase their permanent <br />loan at the Depot at Santiago by an amount not to exceed $993,500 (Exhibit 1). The Developer's <br />permanent loan is from the California Community Reinvestment Corporation (CCRC) and it is <br />superior (e.g. in a higher position) to the City's subordinate loan. For this request, the CCRC's <br />permanent loan would increase from $5,426,500 (approved at the project construction closing in <br />2015) to no more than $6,420,000. <br />To make this project possible, the City provided $3.0 million in financial assistance consisting of <br />$2,634,566 in HOME Investment Partnerships Program funds and $365,434 in Community <br />Development Block Grant Program funds approved by City Council on May 20, 2013. The <br />Housing Authority also provided eight project -based vouchers. The City's $3.0 million is <br />subordinate to the larger permanent loan from CCRC and CCRC requires the City's consent to <br />25C-1 <br />