This resolution approves a loan of up to $56,425,904 to finance the first phase of infrastructure improvements for the Balboa Reservoir Project, which aims to provide affordable housing and other public benefits. It also allows for minor amendments to the loan agreement as needed, without increasing the city's financial obligations.
Resolution approving and authorizing the Director of the Mayor’s Office of Housing and Community Development to execute an Amended and Restated Loan Agreement with BHC Balboa Builders, LLC, a California limited liability company, for a total loan amount not to exceed $56,425,904 to finance the first phase of infrastructure improvements related to the revitalization and master development of an approximately 17.6-acre site with various public benefits including affordable housing, commonly known as the Balboa Reservoir Project; adopting findings that the loan agreement is consistent with the adopted Mitigation Monitoring and Reporting Program under the California Environmental Quality Act, the General Plan, and the priority policies of Planning Code, Section 101.1; and to authorize the Director of MOHCD or his designee to enter into amendments or modifications to the Agreement that do not materially increase the obligations or liabilities to the City and are necessary to effectuate the purposes of the Agreement or this Resolution.
How it got here
The legislation originated from the need to finance infrastructure improvements for the Balboa Reservoir Project, which aims to provide affordable housing and public benefits.
The City issued a Request for Proposals for the development of the Balboa Reservoir site, seeking to maximize affordable housing and community benefits.
The City entered into an Exclusive Negotiating Agreement with Reservoir Community Partners, LLC, formed by BRIDGE Housing Corporation and AvalonBay Communities, to develop the Balboa Reservoir Project.
The Board approved a Development Agreement with Reservoir Community Partners, which included provisions for affordable housing and public infrastructure improvements.
MOHCD provided a predevelopment loan of $5,000,000 to the Developer to commence initial activities for the Balboa Reservoir Project.
The Committee recommended approval of a loan not to exceed $56,425,904 for infrastructure improvements related to the Balboa Reservoir Project.
The Budget and Finance Committee recommended the resolution to approve the amended loan agreement with BHC Balboa Builders, LLC.
The Board adopted the resolution authorizing the Director of MOHCD to execute the loan agreement for infrastructure improvements at the Balboa Reservoir.
Reconstructed from attached documents & the official record
This resolution allows the City to issue a multifamily housing revenue note for up to $84.1 million to finance the construction of a 127-unit rental housing project at 505 Mayor Edwin M. Lee Avenue. It also approves various agreements related to the loans and grants authority to city officials to carry out the necessary actions for the project.
