HomeMy WebLinkAbout2017-032 I RESOLUTION NO. 2017-32
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3 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, ACTING AS THE SUCCESSOR HOUSING
4 AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, APPROVING THE SUBORDINATION OF A DEED
5 OF TRUST TO REFINANCE A SENIOR MORTGAGE FOR ST. BERNARDINE
6 SENIOR HOUSING PROPERTY LOCATED AT 550 W. 5TH STREET, SAN
BERNARDINO
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8 WHEREAS, pursuant to Health and Safety Code (the "HSC") § 34172(a)(1), the
9 Redevelopment Agency of the City of San Bernardino was dissolved on February 1, 2012;
and
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WHEREAS, consistent with the provisions of the HSC, the Mayor and City Council
11 of the City of San Bernardino previously elected to serve in the capacity of the Housing
12 Successor (the "Successor Housing Agency") to the Redevelopment Agency of the City of
San Bernardino (the "Former RDA"); and
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WHEREAS, the City of San Bernardino is a direct recipient of HOME Investment
14 Partnership Program (HOME) funds from the United States Department of Housing and
15 Urban Development (HUD); and
16 WHEREAS, during 2004, the City of San Bernardino gave the former Redevelopment
Agency of the City of San Bernardino (the "Former RDA") the responsibility of administering
17 the City's HOME Program; and establishing the operating practices, funding allocation
18 procedures, and general oversight requirements pursuant to 24 CFR 92; and
19 WHEREAS, on February 2, 2004, the Former RDA entered into a $300,000 HOME
agreement with St. Bernardine Plaza Co. (Participant) to rehabilitate their property located at
20 550 West 5th Street in San Bernardino, known as the St. Bernardine's senior housing complex;
and
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22 WHEREAS, the St. Bernardine's senior housing complex is a 150-unit affordable
senior rental housing complex; and
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WHEREAS, with the exception of two units all units are set aside for very low-
24 income seniors (50% of area median income or below) over the age of 62 years; and
25 WHEREAS, on June 20, 2005, the Former RDA amended the original HOME
26 agreement with the Participant to increase the grant amount to make additional improvements
to the senior housing complex; and
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28 WHEREAS, the original HOME grant amount of $300,000 was increased by
$400,000 for a total of $700,000 in HOME funds to pay for the installation of an new
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1 Americans with Disabilities Act (ADA) compliant elevator and security lighting, exterior
painting and construction of 35 carports; and
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WHEREAS, in return for the $700,000 in HOME funds to make the necessary
3 improvements, the Participant agreed to maintain the property as an affordable rental housing
4 complex for income qualified senior citizens for no less than 30 years (expiration date
February 1, 2033); and
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WHEREAS, the Participant desires to refinance their primary mortgage loan with
6 HUD and enter into a new primary mortgage loan with a new lender (Berkadia Commercial
Mortgage, LLC) that will offer them lower interest rate (7.63% to 3.40%) that would allow
7 the Participant to save thousands of dollars per year and make approximately Fifty Three
8 Thousand Four Hundred Dollars ($53,400) in repairs and alterations to the building; and
9 WHEREAS, the Successor Housing Agency holds a secondary lien to this property
that requires the Participant to maintain the affordability period for St. Bernardines senior
10 housing complex for no less than 30 years (expiration date is February 1, 2033); and
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WHEREAS, the Successor Housing Agency agrees to the conditions of the refinance
12 pursuant to the subordination agreement as long the Successor Housing Agency's lien remains
13 in second position for the duration of the affordability period; and
14 WHEREAS, HUD requires a specific form called "the Amendment and Rider to St.
Bernadine Plaza Corporation HOME Regulation Agreement, Property Use and Covenant" that
15 must be signed by the City in order to subordinate the original agreement; and
16 WHEREAS, the HUD may require some minor changes to the attached document and
17 any related documents in order to process the request for subordination and where, in these
instances, the City may use its own discretion in making these minor corrections.
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NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
19 COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AS FOLLOWS:
20 SECTION 1. That the Mayor and City Council do hereby authorize the City Manager,
21 Assistant City Manager, or their designee, to sign Amendment Number 2 to the 2004 HOME
Grant Agreement by the Redevelopment Agency of the City of San Bernardino (now
22 Successor Housing Agency) and St. Bernardine Plaza Corporation, a California non-profit
23 Corporation and any related documents.
24 SECTION 2. The Resolution shall become effective immediately upon its adoption.
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1 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF
SAN BERNARDINO, CALIFORNIA, ACTING AS THE SUCCESSOR HOUSING
2 AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, APPROVING THE SUBORDINATION OF A DEED
3 OF TRUST TO REFINANCE A SENIOR MORTGAGE FOR ST. BERNARDINE
4 SENIOR HOUSING PROPERTY LOCATED AT 550 W. 5TH STREET, SAN
BERNARDINO
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6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor
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and City Council of the City of San Bernardino at a joint regular meeting thereof, held on
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9 the 6th day of March, 2017, by the following vote,to wit:
10 Council Members: AYES NAYS ABSTAIN ABSENT
11 MARQUEZ X
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BARRIOS X
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14 VALDIVIA X (S)
15 SHORETT X
16 NICKEL X(M)
17 RICHARD X
18 MULVIHILL X _
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20
Geor
geann anna, C ity Clerk
21 fe
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The foregoing Resolution is hereby approved this` day of March, 2017.
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25 R. Carey Davis ayor
City of San B ardino
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Approved as to form:
27 Gary D. Saenz, City Attorney
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By:
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