Loading...
HomeMy WebLinkAboutCity Council Resolution 2103 RESOLUTION NO. 2103 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SARATOGA AUTHORIZING A CONTRIBUTION TO TIlE MID- PENINSULA COALITION HOUSING FUND FOR ACQUISITION AND OPERATION OF THE SARATOGA COURT SENIOR CFFEEN HOUSING COMPLEX WHEREAS, the Mid-Peninsula Coalition Housing Fund, a non-profit housing development corporation ("the Fund") has secured an option to purchase the Saratoga Court senior citizen housing complex; and WHEREAS, the Fund has requested the County of Santa Clara to contribute the sum of approximately $250,000.00 and has also requested the City of Saratoga to contribute the sum of $5t},000.00 to assist in the acquisition and operation of Saratoga Court, such contributions to be made out of the housing and community development block grant funds ("CDBG Funds") to be received from the U.S. Department of Housing and Urban Development ("HUD"); and WHEREAS, Saratoga Court is presently operated as a HUD subsidized housing complex for low income senior citizens and it is the desire of the City Council to preserve these housing units for such use; and WHEREAS, it is anticipated that Saratoga Court would be purchased by a limited partnership having a non-profit affiliate of the Fund as its general partner, and such partnership will be required, under the terms of its agreements with HUD, the Fund and the City, to continue operation of the property as HUD subsidized units for occupancy by low income senior citizens. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SARATOGA AS FOLLOWS: 1. That a contribution to the Fund be made in the sum of $5[},000.00 out of the CDBG Funds allocated to the City of Saratoga for the fiscal year 1984-1985, such contribution to be disbursed upon receipt by the City of the allocated funds and to be utilized exclusively for payment of acquisition and operating costs relating to the Saratoga Court senior citizen housing complex. 2. That said contribution shall be subject to each of the following conditions having been fully satisfied as of the time of disbursement: (a) Consummation of the sale transaction between the Fund, the limited partnership and the present owner of Saratoga Court, and approval by I-IUD of the transfer of physical assets, including HUD approval of all documents pertaining to the contribution by the City of Saratoga and the arrangements made for repayment thereof. (b) Receipt by the City of Saratoga of CDBG Funds for fiscal year 1984-1985 in the aggregate amount of not less than $50,000.00. -1- (c) Disbursement to the Fund of the initial contribution to be made by the County of Santa Clara, in the amount of approximately $50,000.00, for payment of acquisition and operating costs relating to Saratoga Court. 3. That the contribution to the Fund by the City of Saratoga shall be in the form of a loan to the Fund and shall be evidenced by a promissory note executed by the Fund naming the City of Saratoga as the payee thereunder, and secured by a partial assignment to the City of the promissory note to be received by the Fund from the limited partnership together with a partial assignment of the security for such note. The loan by the City shall include the following terms: (a) The indebtedness may be prepaid at any time, without premium or penalty, but shall only become due and payable upon: (i) Sale or refinancing of the property; or (ii) default under the first deed of trust against the property resulting in acceleration of payment under the promissory note given by the limited partnership to the Fund; or (iii) default by the limited partnership under any other instrument or agreement executed between the limited partnership and the Fund which provides for acceleration of payment in the event of such default. Nothwithstanding the foregoing, in the event the Fund or its nominee purchases the property and continues to operate the same for occupancy by low income senior citizens, the loan from the City shall not be due or payable. (b) Upon any sale or refinancing of the property or other event resulting in the loan from the City becoming due and payable, as described in subparagraph 3(a) above, to the extent the Fund receives any net proceeds from the sale, refinancing or other transaction, such proceeds shall first be applied toward payment of the indebtedness owed by the Fund to the City of Saratoga. 4. The City Council hereby expresses its desire that to the extent possible, preference shall be given in renting units at Saratoga Court to residents of the City of Saratoga and members of their family. 5. All instruments and agreements pertaining to the contribution by the City of Saratoga shall be approved as to form and content by the City Attorney. 6. A further report to the City Council indicating the status of the sale transaction shall be rendered by the City Staff at the time the contribution is to be disbursed. The above and foregoing resolution was duly passed and adopted at ~a -2- regular meeting of the City Council of the City of Saratoga held on the 2nd day of November, 19S3, by the foRowing vote: AYES: Councilmembers Callon, Clevenger, Fanelli, Mallory and Mayor FDyles NOES: None ABSENT: None C~~.///~~ M~Jthe ~i~t~ Of S~ga ' ....... ATTEST: -3-