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Approve Amended and Restated Bond Regulatory Agreement December 18, 2018 Page 2 Associates I and the Housing Authority entered into an Amended and Restated Regulatory Agreement, which included Fannie Mae -required provisions - these are contained in the Fannie Mae rider and also incorporated throughout the regulatory agreement. The proposed amended and restated regulatory agreement removes the Fannie Mae rider and all references thereto, and adds a HUD form of rider. In regards to the impact of this action on the affordability covenants for the project, in 2006 the Bonds were refunded with Housing Authority 2006 Series B Bonds ($8,140,000) that put in place an Amended and Restated Regulatory Agreement which extended the affordability covenants for 55 years until 2061. However, this action does not extend the affordability covenants for the project. In regards to the fiscal impact of this action on the Housing Auhtority, the City has no financial investment in the property. Specifically, in 2012 the 2006 bond loan was refinanced with another Fannie Mae loan. At that time the Housing Authority bonds were repaid in full. The Housing Authority was receiving two types of issuer fees under the 2006 Amended and Restated Regulatory Agreement. The base fee was paid as a lump sum with the 2012 closing. Therefore, there is no fiscal impact on the Housing Authority with this request. At the expense of the owner, the Housing Authority requested assistance from our bond counsel at Orrick to review and analyze this request. Orrick agreed with the requested action and prepared the Amended and Restated Regulatory Agreement for the Housing Authority. Staff had initially requested a review by Keyser Marston Associates (KMA), but since there are no provisions related to cash -out refinancings, KMA referred the matter to the City's bond counsel. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Strategic Plan Goal #4 Fiscal Sustainability, Objective #1 (Maintain a stable, efficient and transparent financial environment). FISCAL IMPACT There is no fiscal impact associated with this action. 1_9_ Judson Brown Housing Division Manager Community Development Agency Exhibit 1. Amended and Restated Bond Regulatory Agreement HYA