REPORT TO COUNCIL
SUBJECT
Title
Action on Amendments to the Promissory Note and Covenants with Riverwood Place Associates, L.P. (MidPen Housing Corporation) to Extend the Affordable Housing Requirements for 148 Rental Units within the Project Located at 5090 Lick Mill Boulevard [Council Pillars: Promote and Enhance Economic and Housing Development]
Report
BACKGROUND
Riverwood Place Apartments is an affordable housing complex located at 5090 Lick Mill Boulevard, Santa Clara, CA 95054. The property consists of 148 studio apartments serving low income, special needs adults with incomes of up to 60% of the Area Median Income. The property is owned by Riverwood Place Associates ("Borrower"), a California limited partnership, and an affiliate of MidPen Housing Corporation.
The development of Riverwood Place Apartments originated in 1998 from the City of Santa Clara Redevelopment Agency's Request for Proposals for affordable housing at the site. The City Council selected MidPen Housing from among several housing development and management firms. The property was constructed with financing obtained through the Low-Income Housing Tax Credit (LIHTC) program, combined with funding from the City of Santa Clara Redevelopment Agency (RDA), California Housing Finance Agency (CalHFA) and a conventional loan through Citibank. The City of Santa Clara RDA made a $4,690,000 loan to the Borrower evidenced by a Promissory Note dated March 14, 2001 (the "Note"). An Agreement Containing Covenants Including Affordable Housing Requirements dated March 14, 2001 (the "Covenants") also encumber the real property. The RDA has since been dissolved and the City has succeeded to the housing assets of the Agency, including the Loan and Covenants.
Riverwood Place is the winner of the Gold Nugget Award of Merit from the Pacific Coast Builder's Conference and a Builder's Choice Award of Merit from Builder Magazine. The property provides partially furnished efficiency studios with a kitchen...
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