HomeMy WebLinkAboutResolution 2023-012 N.C.S. 01/09/2023 DocuSign Envelope ID:05D27468-C9F8-4546-9BF3-4A5E17101376
Resolution No. 2023-012 N.C.S.
of the City of Petaluma, California
AUTHORIZING MODIFICATION OF LOAN TERMS FOR DOWNTOWN RIVER
APARTMENTS LOCATED AT 35 EAST WASHINGTON STREET AND FINDING THAT THIS
ITEM IS NOT A "PROJECT" PURSUANT TO CEQA GUIDELINES SECTION 15378(b)(4-5)
WHEREAS,the Downtown River Apartments owned by Downtown River Associates, L.P. and operated by
Eden Housing Inc., is an 81-unit affordable housing development located at 35 East Washington Street in
Petaluma providing housing for families with low- and very-low-incomes; and
WHEREAS, the City of Petaluma provided funding to Eden Housing to acquire and develop the 35 East
Washington Street property in the form of a Petaluma Housing Fund loan in the amount of$3,662,837 secured
by a Borrowers Note on September 1, 2003 and with the loan bearing 3% simple interest; and
WHEREAS, the City of Petaluma provided additional funding to Eden Housing to acquire and develop the
35 East Washington Street property in the form of a Home Investment Partnership loan in the amount of
$3,400,000 secured by a Borrowers Note on September 1,2003 and amended on November 1,2005 to$3,466,000
and with the loan bearing 3% simple interest; and
WHEREAS, the City of Petaluma provided additional funding to Eden Housing to acquire and develop the
35 East Washington Street property in the form of a Petaluma Community Development Commission loan in the
amount of$19,298 secured by a Borrowers Note on November 1, 2005 and with the loan bearing 3% simple
interest; and
WHEREAS, the 55-year term of the Borrowers Notes securing the Petaluma Housing Fund loan in the
amount of$3,662,837 for Downtown River Apartments expires on September 1, 2058; and
WHEREAS, the 55-year term of the Borrowers Notes securing the Petaluma Home Investment Partnership
loan in the amount of $3,400,000 and subsequent modification totaling $3,466,000 for Downtown River
Apartments expires on September 1, 2058; and
WHEREAS, the 55-year term of the Borrowers Notes securing the Petaluma Community Development
Commission loan in the amount of$19,298 for Downtown River Apartments expires on September 1, 2058; and
WHEREAS, the City of Petaluma supports the production and preservation of affordable housing for its
lower income and vulnerable populations; and
WHEREAS,the Petaluma General Plan 2025 includes policies to provide essential housing to all Petalumens
and including Policy 6.1 to support efforts to prevent homelessness, and Policy 9.1 to promote the integration of
affordable and special needs housing projects on existing neighborhoods; and
WHEREAS, the proposed action is exempt from the requirements of the California Environmental Quality
Act(CEQA)in accordance with CEQA Guidelines Section 15378, as the action does not meet CEQA's definition
of a"project,"because approving a loan term extension is not a project as it does not commit the City to a definite
course of action (See City of Irvine v. County of Orange (2013) 221 Cal 4th 846, 865) and because this action
constitutes organizational or administrative activities of governments that will not result in direct or indirect
physical changes in the environment; and,
Resolution No. 2023-012 N.C.S. Page 1
DocuSign Envelope ID:05D27468-C9F8-4546-9BF3-4A5E17101376
WHEREAS, Eden Housing plans to continue operation of the Downtown River Apartments affordable
housing project in accordance with all requirements of the two Affordability Restrictions Agreement pertaining
to 35 East Washington Street entered into by the City of Petaluma and Eden Housing on 10-20-2003 and recorded
with the Sonoma County Recorder as record number 2003-218628 and 2003-218635218628 and; and,
WHEREAS, Eden Housing Inc. has sponsored a new Federal Low Income Housing Tax Credit partnership
known as "Downtown River Two, L.P" for the purpose of significantly rehabilitating the Downtown River
Apartments affordable housing project at 35 East Washington Street; and,
WHEREAS,this item was agenized in compliance with state and local laws.
NOW,THEREFORE,BE IT RESOLVED,that the City Council of the City of Petaluma hereby:
1. Declares the above recitals to be true and correct and are incorporated herein by reference.
2. Finds that the proposed action is exempt from the requirements of the California Environmental Quality Act
(CEQA) in accordance with CEQA Guidelines Section 15378, as the action does not meet CEQA's definition
of a"project,"because approving a loan extension is not a project because this action constitutes organizational
or administrative activities of governments that will not result in direct or indirect physical changes in the
environment pursuant to CEQA Guidelines Section 15378(b)(4).Furthermore,environmental compliance was
already completed when the initial loan was approved.
3. Authorizes the City Manager or other authorized representative to extend, assign, and modify the City's
existing regulatory agreements and loans to the new Downtown River Apartments tax credit partnership
(Downtown River Two, L.P), which will own the fee interest and improvements of the project. The terms of
the City loans will be extended to a new term of 55 years. The accrued interest to the date that the construction
financing closes would be capitalized into the new principal amount and the new interest rate would be reset
to the Applicable Federal Rate on the date of construction financing closing, as determined by tax counsel.
The expected new loan terms and amounts are as follows; however, the exact amount of accrued interest will
be determined based on the actual amount of accrued interest as of the time of the construction loan closing.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Approved as to
Council of the City of Petaluma at a Regular meeting on the 91 day of January rforfteuSigned by:
2023,by the following vote: �C�
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AYES: Mayor McDonnell,Barnacle,Vice Mayor Cader Thompson,Healy,Nau,Pocekay, YY
Shribbs
NOES: None
ABSENT: None
ABSTAIN: Nogocuftned by: DocuSSi�iglIn--ed by:
ATTEST:
it r a
Resolution No. 2023-012 N.C.S. Page 2