REPORT TO COUNCIL
SUBJECT
Title
Approve Loan and Regulatory Agreements with MP Morse Court Associates, LP for a Loan of $1 Million in Housing Mitigation Funds to Rehabilitate Morse Court Apartments
Report
BACKGROUND
In February 2014, the City released a Request for Proposals (RFP) for affordable housing projects to be funded with Housing Mitigation Funds (HMF) in FY 2014/15. The City received two proposals from MidPen Housing Corporation (MidPen), one of which, the project to rehabilitate Morse Court, was selected for funding. Funding for this project was included as a capital project in the FY 2014/15 Projects Budget approved by Council in June 2014. MP Morse Court Associates, LP, is the MidPen affiliate entity (limited partnership) that owns the Morse Court property.
Morse Court Apartments, a 35-unit affordable rental housing complex, is located at 825 Morse Avenue. The conditional funding commitment was conditioned on completing any necessary environmental review of the project, written approval of the new loan by the senior lienholder, and Council approval of the loan and regulatory agreements ("the Agreements"). The project was slightly delayed due to the need for additional time for City and MidPen staff to finalize the scope of work, negotiate the Agreements, and allow for the required review by the senior lienholder, the California Housing Finance Agency (CalHFA).
EXISTING POLICY
General Plan: Housing Element
Policy B.3: Strengthen multi-family neighborhoods through partnership with non-profit housing organizations in the acquisition and rehabilitation of older residential properties and maintenance as long-term affordable housing.
2015-2020 Sunnyvale Consolidated Plan
Goal A.1.a: Provide financial and/or technical assistance to qualified affordable housing developers for rehabilitation, construction and/or preservation of affordable rental housing and/or site acquisition.
ENVIRONMENTAL REVIEW
This project is exempt from the ...
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