DATE: October 9, 2024
TO: Honorable Mayor and City Councilmembers and Chairperson and Members of the Community Development Commission
FROM: Housing and Neighborhood Services Department
TITLE: RESOLUTION APPROVING THE ASSIGNMENT, ASSUMPTION, AND AMENDMENT OF EXISTING CITY AND COMMUNITY DEVELOPMENT COMMISSION LOAN AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL RELATED LOAN DOCUMENTS
RECOMMENDATION
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Staff recommends that the City Council and Community Development Commission (CDC), in its capacity as the successor housing entity within the meaning of Health and Safety Code Section 34176, adopt a resolution [1] Approving the assignment, assumption, and amendment of existing City and CDC loan totaling approximately $4,166,412 in principal and accrued interest; and [2] Authorizing the City Manager to execute all related loan documents by and between the City of Oceanside, the CDC, and Shadow Way Venture, LP for the acquisition and rehabilitation of Shadow Way affordable apartments at 4779 Yuma Avenue.
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BACKGROUND AND ANALYSIS
In September 2008, a below-market interest, residual receipts loan in a total amount of $5.6 million was provided by the City and the CDC to Shadow Way Apartments, LP, the current owner of the property in question, to acquire, rehabilitate, and convert the 144 residential units at Shadow Way Apartments, located at 4779 Yuma Avenue, for affordable housing (See Attachment 3, Map). At that time, total project costs were $28,122,839, funded by $14,000,000 of Tax-Exempt permanent financing, $7,489,266 of four-percent (4%) Low-income Housing Tax Credits, a $1,033,573 Developer Fee deferment, and the $5,600,000 City/CDC loan.
The complex, constructed in 1987, consists solely of two-bedroom units. Ninety percent of the units (129 units) are restricted for occupancy and at an affordable rent to residents at 60 percent or below the Area Median Income (AMI), while ten percent (15 units) are for residents at 50 percent or below the AMI. Un...
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