...Title
Approval of the Issuance of Tax-Exempt Multifamily Housing Revenue Bonds and the Loan of the Proceeds Thereof and Related Documents and Changes to Existing Loan and Grant Terms for the Markham Plaza II Development.
...Recommendations
(a) Adopt a resolution:
(1) Authorizing the issuance of (a) tax-exempt multifamily housing revenue bonds designated as “City of San José Multifamily Housing Revenue Bonds (Markham Plaza II), Series 2021C-1” (the “Series 2021C-1 Bonds”) and “City of San José Multifamily Housing Revenue Bonds (Markham Plaza II), Subordinate Series 2021C-2” (the “Series 2021C-2 Bonds” and with the “Series 2021C-1 Bonds, the “2021C Bonds”) in an aggregate principal amount not to exceed $25,000,000;
(2) Approving the loan of the proceeds of the Series 2021C Bonds to Markham Plaza II, LP, a California limited partnership created by Core Development, Inc., a California corporation, to finance the acquisition and rehabilitation of a 152-unit multifamily development known as the Markham Plaza II apartments (formerly known as Tully Gardens II) located at 2010 Monterey Road, in San José (the “Development”);
(3) Approving in substantially final form the Indenture of Trust, the Subordinate Indenture of Trust, the Loan Agreement, the Subordinate Loan Agreement and the Regulatory Agreement and Declaration of Restrictive Covenants (the “Series 2021C Bond Documents”); and
(4) Authorizing and directing the City Manager, Director of Housing, Director of Finance, the Assistant Director of Finance, the Deputy Director of Finance, Debt & Treasury Management, or their designees, to execute and deliver the Series 2021C Bond Documents together with any documents ancillary to the Series 2021C Bond Documents.
(b) Adopt a resolution approving changes in terms for the City’s outstanding $5,491,858.38 loan and outstanding $3,781,000 grant for the Development, approving a loan to value ratio in excess of 100% and authorizing the Director of Housing to negotiate and execute documents and amendments related to those changes.
CEQA: Categorically Exempt, File No. ER21-023, CEQA Guidelines Section 15301, Existing Facilities. Council District 7. (Finance/Housing)