...Title
Approval of a Funding Commitment for Second Street Studios Development Located at 1144 Second Street.
...Recommendations
(a) Adopt a resolution:
(1) Approving a construction-permanent loan commitment of $13,000,000 to Second Street Studios, LP, an affiliate of First Community Housing, for Second Street Studios Development located at 1144 South Second Street (Development);
(2) Authorizing the Director of Housing to negotiate with Second Street Studios, LP for the refinance and payoff of the outstanding $12,000,000 senior Silicon Valley Bank loan to the Development and fund $1,000,000 to pay for other operating expenses of the Development; and
(3) Authorizing the Director of Housing to negotiate and execute either the amendment of existing loan documents or new loan documents and all other documents regarding an increase to the City of San José construction and permanent financing for the Development or a new construction and permanent financing commitment in the amount of $13,000,000, including any amendments or modifications thereto.
(b) Adopt the following 2022-2023 Appropriation Ordinance amendments in the Low- and Moderate-Income Housing Asset Fund:
(1) Decrease the Housing Project Reserve by $13,000,000; and
(2) Increase the Housing Loans and Grant appropriation to the Housing Department by $13,000,000.
CEQA: Not a Project, File No. PP17-003, Agreements/Contracts (New or Amended) resulting in no physical changes to the environment; and File No. PP17-004, Government Funding Mechanism or Fiscal Activity with no commitment to a specific project which may result in a potentially significant physical impact on the environment. Council District 3. (Housing/City Manager)