Title
Modification of MDA and Affordable Housing Loan
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Summary and Background Information:
This is a request for a slight modification to the MHGP MDA and CCURA affordable housing loan that is anticipated to have no financial impact on the CCURA.
- The MDA provides the Developer with a right to some of proceeds of the sale of the MHGP “Commercial Tract” during a limited period, if any remain after paying for additional infrastructure. (
- The CCURA loaned $3.75M to the affordable financing entity (Greyhound Park Apartments LLLP) to assist with the affordable housing project, as required by the CCURA’s prior agreements.
- The CCURA Loan (Section 4.15) requires a prepayment of the loan if certain conditions are met:
o The “Commercial Tract” is sold before the end of the Developer’s “Participating Interest Term” (5 years) and funds remain from that “Participating Interest.
o The Developer, under the Section 4.1(c) of the MDA, is required to provide those 25% of those funds to the LLLP to make the prepayment, if it receives them.
- Developer’s affordable housing financing deal is requiring that the CCURA loan be modified to delete this prepayment requirement.
- As an alternative, Developer is proposing to use the same funds, if received, to purchase part of that loan in the same amount.
- The same result (a reduction in the outstanding loan and an early recovery for the CCURA) will occur.
- Staff is requesting authorization to modify the loan and other agreements to accomplish these changes.
The MDA can be found at: <https://www.c3gov.com/home/showdocument?id=11447>.
Staff Responsible (Department Head): General Counsel/Executive Director
Staff Member Presenting: General Counsel/Executive Director
Financial Impact: N/A
Funding Source: N/A
Staff Recommendation: Approval
Suggested Motion: I move to authorize the executive director to modify the CCURA affordable housing loan to delete the prepayment and to negotiate and execute an agreement to modify such agreements as necessary to accomplish the recommended loan purchase.