TO: Honorable Mayor and Members of the City Council
FROM: Rick Otto, City Manager
1. SUBJECT
title
First Amendments to Affordable Housing Agreement and Agreement Containing Covenants for The Knolls affordable housing complex.
body
2. SUMMARY
BLDG Partners, LLC is acquiring The Knolls affordable housing development from F.C. Orange Associates, LLC. As part of the acquisition, BLDG Partners, LLC will be assuming the Affordable Housing Agreement and Agreement Containing Covenants. The agreements ensure that the development remains affordable during the affordability period, and secure repayment of the $7,500,000 loan from the City's Low and Moderate Housing Income Fund.
3. RECOMMENDED ACTION
recommendation
Approve the following amendments to agreements and authorize the Mayor and City Clerk to execute on behalf of the City:
1. First Amendment to Affordable Housing Agreement by and between City of Orange and F.C. Orange Associates, LLC
2. First Amendment to Agreement Containing Covenants by and between City of Orange and F.C. Orange Associates, LLC
end
4. FISCAL IMPACT
None.
5. STRATEGIC PLAN GOALS
Goal 3: Enhance and promote quality of life in the community
c: Support and enhance attractive, diverse living environments.
6. DISCUSSION AND BACKGROUND
The Knolls is a 260-unit affordable housing complex located at 3138 E. Maple Avenue in the City of Orange. The project was developed by F.C. Orange Associates, LLC (Forest City) who acquired an existing dilapidated housing complex and rehabilitated it with $7,500,000 in redevelopment housing set-aside funds, in addition to tax credits, tax-exempt bonds, and private funding. The resulting project opened in 1996, and provides affordable housing for a period of 55-years, to low-income households that earn 60% or less of the area median income.
Forest City has agreed to sell The Knolls to BLDG Partners, LLC (BLDG). BLDG is an owner and developer of residential properties across the United States, with a focus on ...
Click here for full text