Laserfiche WebLink
First Amendment to Density Bonus Housing Agreement for Legacy Square <br />January 16, 2024 <br />Page 2 <br />3 <br />9 <br />8 <br />2 <br />Relative to the permanent loan conversion for Legacy Square, the State of California <br />Department of Housing and Community Development (HCD) is one of the senior <br />lenders on this project and has requested the City to amend our local Density Bonus <br />Housing Agreement in order for HCD to approve their permanent loan. Specifically, this <br />First Amendment to the Density Bonus Housing Agreement is required because the <br />recordation of the original Density Bonus Housing Agreement on the fee interest <br />triggers an obligation for HCD to record its regulatory agreement against the fee <br />interest. At the time of recording of the Density Bonus Housing Agreement on March 25, <br />2019, following City Council approval, there was no ground lease, but the affordable <br />housing owner now has a long-term ground lease with the Santa Ana United Methodist <br />Church that they entered into on June 12, 2020, over one year later. Since there was no <br />ground lease when recorded, the Density Bonus Housing Agreement was recorded <br />against the ground lessor’s fee interest and not the leasehold interest held by the <br />affordable housing owner. <br />Following approval of this action by the City Council, the First Amendment to the <br />Density Bonus Housing Agreement will be recorded against the leasehold interest by <br />modifying the leasehold description in the original Density Bonus Housing Agreement <br />and satisfy the request of HCD (Exhibit 1). After this First Amendment is approved, HCD <br />can record their regulatory agreement against the leasehold interest and approve their <br />permanent loan. However, if this First Amendment is not approved, National CORE will <br />not be able to close on its permanent loan conversion and the project will be in default <br />under its construction loan financing documents. <br /> <br />FISCAL IMPACT <br />There is no fiscal impact associated with this action. <br />EXHIBIT(S) <br />1. First Amendment to Density Bonus Housing Agreement for Legacy Square <br />Submitted By: Michael L. Garcia, Executive Director of Community Development <br />Approved By: Tom Hatch, Interim City Manager