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HomeMy WebLinkAboutMINUTES - 06232009 - C.120RECOMMENDATION(S): AUTHORIZE the Conservation and Development Director, or designee, to execute a Second Amendment to Note and Repayment Agreement between the County of Contra Costa, and Riverhouse Associates for a $303,090 Community Development Block Grant loan, to extend the repayment date to December 31, 2009. FISCAL IMPACT: No General Fund impact. Community Development Block Grant (CDBG) funds are provided to the County on a formula allocation basis through the U.S. Department of Housing and Urban Development (HUD). BACKGROUND: In 1991, the County provided $303,090 in CDBG funds to Riverhouse Associates for the acquisition and rehabilitation of the Riverhouse Apartments in Martinez. These funds were provided in two parts: one loan for $53,090 and a second loan for $250,000. The $53,090 loan was due August 16, 2006. The $250,000 loan was due August 16, 2007. In 2007, the repayment dates were revised to December 31, 2008 to allow APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 06/23/2009 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Gayle B. Uilkema, District II Supervisor Mary N. Piepho, District III Supervisor Susan A. Bonilla, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Kara Douglas 335-7223 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: June 23, 2009 David J. Twa, County Administrator and Clerk of the Board of Supervisors By: Katherine Sinclair, Deputy cc: C.120 To:Board of Supervisors From:Catherine Kutsuris, Conservation & Development Director Date:June 23, 2009 Contra Costa County Subject:Riverhouse Associates Loan Extension for $303,090 Community Development Block Grant Loan for the Riverhouse Apartments, Martinez BACKGROUND: (CONT'D) adequate time for Eden Housing, Inc. (the general partner) to purchase the limited partner’s interest. Eden has successfully acquired the limited partner’s interest and is now requesting a restructuring of the loans. County staff is willing to consider a restructuring of the loans. In order to allow time for those discussions to take place, Riverhouse Associates has requested an additional extension of the repayment term. Staff is requesting the Board approve a second amendment to the Note and Repayment Agreements to extend the repayment term to December, 31 2009. This extension should allow sufficient time for County staff to renegotiate the terms of the loan, and if appropriate, draft new loan documents. Staff will return to the Board and to request approval of the revised terms and legal documents. ATTACHMENTS Riverhouse Second Amendment County Counsel approval