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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:
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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 mo...
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