Resolution - 2017-5RESOLUTION NO. 2017-5
A RESOLUTION OF THE COMMUNITY DEVELOPMENT
COMMISSION OF THE CITY OF WEST COVINA, CALIFORNIA
ACTING IN ITS CAPACITY AS THE HOUSING AUTHORITY OF
THE CITY OF WEST COVINA, ACTING IN ITS CAPACITY AS
HOUSING SUCCESSOR TO DISSOLVED REDEVELOPMENT
AGENCY OF THE CITY OF WEST COVINA, AUTHORIZING THE
EXECUTIVE DIRECTOR TO EXECUTE ALL DOCUMENTS AND
TAKE ALL ACTIONS IN FURTHERANCE OF THE APPROVAL OF
REFINANCING THE PROMENADE APARTMENTS LOAN
WHEREAS, On December 10, 1997, the former Redevelopment Agency ("RDA") and
Southern California Housing Development Corporation, now known as National Core
Renaissance (refer to here "National Core") entered into various agreements for the rehabilitation
and conversion of a distressed motel located at 1333 W. Garvey Avenue North into a permanent
affordable housing apartment complex (currently known as "The Promenade Apartments"); and
WHEREAS, on June 1 1995, RDA and NCR executed the following agreements
governing the use of the project once rehabilitation was completed: (i) Regulatory
Agreement, which establishes affordability requirements for 123 units of the 124 units, limits
the use of the property by covenant, and restricts the sale of the property; (ii) Affordable
Housing Agreement, and one subsequent amendment, which establish the terms of the Agency
loan; and,
WHEREAS, as part of the 2011-12 State budget bill, the California Legislature has
enacted and the Governor has signed, companion bills AB1X 26 and AB1X 27, requiring that each
redevelopment agency be dissolved unless the community that created it enacts a resolution
committing it to making certain payments; and
WHEREAS, The City Council of the City of West Covina subsequently adopted
Resolution No. 2012-11 on this date, electing to transfer the housing assets, functions, and
obligations of the Redevelopment Agency pursuant to Health and Safety Code Section 34176
upon Redevelopment Agency dissolution to the I-lousing Authority.
WHEREAS, On January 17, 2012 pursuant to urgency Ordinance No. 2226, and on
February 7, 2012, pursuant to regular Ordinance No. 2228, the City Council of the City of West
Covina expanded the duties of the CDC to include the functions of the Housing Authority. The
Former Loan that was made by the Redevelopment Agency and related documents are housing
assets of the former Redevelopment Agency retained and assumed by the Community
Development Commission.
WHEREAS, National Core is in the process of securing new financing for their tax-
exempt multifamily revenue bonds, having obtained approval from the City (local jurisdiction) for
the Tax Equity and Fiscal Responsibility Act public hearing on September 16, 2017; and
WHEREAS, the new legal owner entity for The Promenade Apartments is
proposed to be The Promenade Housing Partners, L.P., with National Core remaining as a managing
partner; and
WHEREAS, National Core desires to refinance the Agency principal loan ($5,622,300),
along with the re-syndication of the bonds which will allow them to rehabilitate the Promenade
Apartments. The proposed improvements include energy upgrades to the units and the complex.
WHEREAS, in order to effectuate the refinancing and to allow for the rehabilitation,
National Core is requesting to that the original Regulatory Agreement along with the Loan Agreement,
Promissory Note and Deed of Trust be amended and restated; and
WHEREAS, in addition, National Core has requested that a Subordination Agreement
be executed to place the Amended and Restated Regulatory Agreement in a junior recording lien
position below liens recorded for the tax credit financing, bond financing; and
WHEREAS, an Assignment and Assumption Agreement relating to the Owner's
obligations under the 1998 Bond Regulatory Agreement, the 1998A and 1998C Tax Certificates, the
1998 Financing Agreement and the Affordable Housing Agreement will be presented to the CDC as
Housing Successor and to the Successor Agency for review and approval.
NOW, THEREFORE, BE IT RESOLVED, the West Covina Community
Development Commission hereby finds, determines, and resolves as follows:
Section 1. The Community Development Commission Board hereby approves the
terms of the Amended and Restated Regulatory Agreement, the Amended and Restated Loan
Agreement, the Amended and Restated Promissory Note and the Deed of Trust, as well as the
proposed subordination of the Amended and Restated Regulatory Agreement; and
Section 2. The Community Development Commission Board hereby authorizes the
CDC Executive Director to execute all agreements and documents and to take all actions in furtherance
of the approval in Section 1.
PASSED, APPROVED AND ADOPTED this 17th ck of January, 2017.
APPROVED AS TO FORM: ATTEST:
Nickols,S:-.Eewi J.
Board Secretary -- \`-
I, HEREBY CERTIFY that the foregoing resolution was duly adopted by the City Council of the City of
West Covina, California, at a regular meeting thereof on the 17 th day of January, 2017, by the following vote
of City Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
Johnson, Spence, Wu, Toma, Warshaw
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