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Approve two subordination agreements for an existing $200,000 loan to MidPen Housing Corporation to facilitate conversion of bridge financing to permanent financing for the Sunset Pines Apartments property in Fairfield; and Authorize the County Administrator to execute all documents related to the subordinations
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The County Administrator's Office (CAO) recommends the Board of Supervisors:
1. Approve two subordination agreements for an existing $200,000 loan to MidPen Housing Corporation to facilitate conversion of bridge financing to permanent financing for the Sunset Pines Apartments property in Fairfield; and
2. Authorize the County Administrator to execute all documents related to the subordinations.
SUMMARY:
On March 2, 2021, the Board of Supervisors approved a $200,000 loan to MidPen Housing Corporation (MidPen) for the acquisition of Sunset Pines Apartments, located at 1705 Sunset Avenue in Fairfield, to support the conversion of 35 units into affordable housing with a 55-year affordability restriction. As part of the original financing, MidPen secured a five-year bridge loan and now seeks to refinance it with permanent financing through Housing Trust Silicon Valley. MidPen also proposes to amend its existing subordinate financing to increase the loan amount to approximately $5.9 million. To facilitate the refinancing, the County must subordinate its $200,000 loan to a third-lien position.
FINANCIAL IMPACT:
The County's loan to MidPen was funded by the Housing/SB375 Reserve, and approval of the subordination agreements will not impact the County's General Fund. The costs associated with preparing the agenda item are nominal and absorbed by the Department's FY2025/26 Working Budget.
DISCUSSION:
MidPen was founded in 1970 and is recognized as a leading non-profit developer, owner, and manager of affordable ho...
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