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HomeMy WebLinkAbout24031 RESOLUTION NO. 24031 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING A SUBBORDINATION AGREEMENT WITH COURTYARD PARTNERS - PALM SPRINGS, L.P. AND THE CALIFORNIA HOUSING FINANCE AGENCY TO FACILIATE A LOAN MODIFICATION AND REFINANCE OF PALO VERDES VILLAS, A 98-UNIT RESIDENTIAL APARTMENT COMPLEX. WHEREAS, on January 4, 2012, the City of Palm Springs approved action to retain the housing assets and functions previously performed by the City of Palm Springs Community Redevelopment Agency ("Agency') and assume all rights, powers, assets, liabilities, duties, and obligations associated with the housing activities of the Agency, as provided in California Health and Safety Code §34173 and §34176, and WHEREAS, the Agency entered an Owner Participation Agreement with Palos Verdes Villas (the "Developer") on February 19,1992 and a Regulatory Agreement and Declaration of Covenants and Restrictions on January 19,1994; and WHEREAS, the Developer, Agency, and the California Housing Finance Agency ("CaIHFA") entered Subordination Agreements on January 30,1995, June 29, 2000, and February 1, 2010 whereby the Agency agreed to subordinate its Use Restrictions to the CaIHFA Deed of Trust and the CaIHFA Regulatory Agreement; and WHEREAS, the Developer has negotiated a Loan Modification and Refinancing of the project with CaIHFA; and WHEREAS, California Health and Safety Code Section 51335 (e) requires that the CaIHFA Loan and Regulatory Agreement have priority over the Agency's Use Restrictions. NOW THEREFORE BE IT RESOLVED by the City of Palm Springs, as follows: SECTION 1. A Subordination Agreement between City of Palm Springs as Successor Agency to the Community Redevelopment Agency of the City of Palm Springs, Palos Verdes Villas, a California Corporation, and the California Housing Finance Agency, is approved. SECTION 2. The City Manager, or his designee, is hereby authorized to execution behalf of the City the Subordination Agreement and other documents necessary to the Agreement, and make minor changes as may be deemed necessary, in a form approved by City Counsel. Resolution No. 24031 Page 2 ADOPTED THIS18TH DAY OF MAY 2016. David H. Ready, City er ATTEST: ames Thompson, City Clerk CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. 24031 is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on the 18th day of May, 2016, by the following vote: AYES: Councilmember Foat, Councilmember Kors, Councilmember Roberts, Mayor Pro Tern Mills, and Mayor Moon. NOES: None. ABSENT: None. ABSTAIN: None. i1 u —T mes Thompson, City Clerk City of Palm Springs, California p`�Or,lzol6