25B - AGMT - LOAN GUEST HOUSE - Laserfiche WebLink

Home Browse Search

Amendment to Loan Agreement - Guest House LP December 20, 2016 Page 2 Prior to closing their financing for the project, Community Development Partners requested an amendment to be considered for the HOME Loan Agreement for the project (Exhibit 2). The requested amendments to the HOME Loan Agreement and Affordability Housing Covenant is as follows: (1) Admission of the Limited Partner (NEF Assignment Corporation, an Illinois not-for-profit corporation) into the Partnership as limited partner thereof pursuant to the terms of the Partnership Agreement. (2) Copies of all notices which are sent to the Partnership under the terms of HOME Loan Documents shall also be sent to: NEF Assignment Corporation, 10 S. Riverside Plaza, Suite 1700, Chicago, Illinois, 60606. (3) Modify the affordability such that in the event of a foreclosure by Senior Loan, the maximum AMI Level for any units, other than HOME assisted units, restricted (as to both income and rent levels) at 30% of AMI, would thereafter continue to be restricted (as to both income and rent levels) at 60% of AMI. (4) Removal of the second sentence in Section 10(d) in the Promissory Note, which states, "On that date, the City agrees to review the performance of the Property and consider in good faith any reasonable request by Borrower to modify the terms or extend the Term of this City Loan Note." The City of Santa Ana's HOME Loan is roughly 7.6% of the total loans and equity for the project. As a subordinate loan for a large affordable housing project such as this, it is not uncommon for a more senior lender to request amendments to our smaller loan agreement that allow the senior lender to complete their underwriting and commit their financing. The amendment to the loan agreement will ensure the long-term financial viability and sustainability of the project to serve chronically homeless individuals and families. Project Description Community Development Partners (Developer) is an experienced multifamily and mixed-use developer focused on creating and preserving vibrant affordable housing communities that are sustainable and enhance the fabric of the surrounding community. The Developer is experienced in developing housing for low-income seniors, families, veterans, and individuals experiencing homelessness. The Developer is based in Orange County. Since 2012, the Developer has received eight tax credit allocations for projects totaling over $100 million in project development costs. The Developer has created the Guest House, LP as an entity for this project. The Developer has partnered with Mercy House for this project to provide the services and expertise for serving the homeless population. Mercy House is a Santa Ana based non-profit service provider dedicated to serving populations with the most critical needs such as veterans and individuals who are homeless or disabled. Mercy House has been serving such populations for over 25 years. The project, located at 2151 E. First Street (Exhibit 1) is an acquisition and rehabilitation of an existing, market rate hotel. The project will provide 58 studio units and 14 one -bedroom units serving chronically homeless residents earning at or below 60% of the Area Median Income (AMI). The design will feature four two-story buildings, a community garden, commercial kitchen, 25B-2