Title
Resolution to Approve the Transfer of Affordable Housing Project at 201 W. William to Avalon Housing Inc. and Extend the Lease Term
Memorandum
William Street Apartments Limited Dividend Housing Association Limited Partnership ("William Street LP"), an affiliated entity of Avalon Housing Inc. ("Avalon"), owns the housing project located on the City-owned property at 201 W. William St. The project includes six units of affordable housing for individuals earning at or below 50% Area Median Income.
In 2009, City Council approved $65,851 in HOME funds to William Street LP at 0% interest to refinance and rehabilitate the project for use as affordable housing. At the same time, the City entered into an Affordability Agreement with William Street LP with an affordability period of 99 years, and a Ground Lease with William Street LP for a term ending on August 31, 2029.
The City received a request to consent to the transfer of William Street LP's interest in the affordable housing project to Avalon to achieve overall cost savings and reduced administrative burden. The transfer will require the City to provide written consent to the assignment by William Street LP and assumption by Avalon of the Ground Lease, Affordability Agreement, and loan documents.
Once the transfer to Avalon is complete, the City and Avalon will execute an amendment to the Ground Lease to extend the lease term for an additional 20 years. Thereafter, the 20-year term will automatically renew for up to three additional 20-year terms unless either the City or Avalon notifies the other party of its intent not to renew.
Staff
Prepared by: Nicole Vargas, Assistant City Attorney
Reviewed by: Derek Delacourt, Community Services Area Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, In 2009 the City entered into a Ground Lease, Affordability Agreement, and loan documents, including a Promissory Note and Leasehold Mortgage, with William Street Apartments Limited...
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