Title
a. Approve the Assignment and Substitution Agreement and Third Amendment to Amended and Restated Limited Partnership Agreement of Salinas Road Associates; and,
b. Authorize the Director of Economic Development to sign the Assignment and Substitution Agreement and Third Amendment to Amended and Restated Limited Partnership Agreement of Salinas Road Associates.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Approve the Assignment and Substitution Agreement and Third Amendment to Amended and Restated Limited Partnership Agreement of Salinas Road Associates; and,
b. Authorize the Director of Economic Development to sign the Assignment and Substitution Agreement and Third Amendment to Amended and Restated Limited Partnership Agreement of Salinas Road Associates.
SUMMARY:
Both the former Redevelopment Agency of the County of Monterey and the County of Monterey lent funds to Salinas Road Associates, a California limited partnership, of which South County Housing Corporation (SCHC) is the general partner. These loans, in addition to other sources of financing, provided financing for construction of 63 affordable apartments on 15 Salinas Road in Pajaro, Monterey County (the Nuevo Amanacer apartments). The recommended actions will allow a new general partner to assume responsibility for SCHC's general partner interest and liabilities as SCHC winds up its business operations, enabling continued management of the Nuevo Amanacer apartments as affordable housing and facilitating repayment of these loans.
DISCUSSION:
SCHC is an affordable housing developer and currently operates eight affordable housing complexes in Monterey County, including the Nuevo Amanacer apartments in Pajaro. SCHC is in the process of closing down all operations. SCHC has chosen Eden South County, Inc. (Eden) to assume responsibility for most of SCHC's affordable housing developments after SCHC ceases operation. Eden, as sole member/manager of Nuev...
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