Title
a. Approve the Assignment and Assumption of a Redevelopment Housing Set-Aside loan made by the Housing Successor Agency of the Redevelopment Agency of Monterey County from South County Housing Corporation to Jardines LLC; and
b. Authorize the Director of Economic Development to sign the Assignment and Assumption Agreement and associated loan documents, as needed.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Approve the Assignment and Assumption of a Redevelopment Housing Set-Aside Loan made by the Housing Successor Agency of the Redevelopment Agency of Monterey County from South County Housing Corporation to Jardines LLC; and,
b. Authorize the Director of Economic Development to sign the Assignment and Assumption Agreement and associated loan documents, as needed.
SUMMARY:
In 2001, the Redevelopment Agency made a $400,000 predevelopment loan to South County Housing Corporation (SCHC) to purchase property for two affordable housing projects in Boronda. The loan was funded with money from the Redevelopment Housing Set-Aside Trust Fund. The property has been developed with 15-units of farm worker rental housing, 22-units of owner occupied homes, and a vacant drainage basin (Lot 16). The recommended action will allow Jardines LLC to assume SCHC's obligations related to the predevelopment loan.
DISCUSSION:
SCHC was an affordable housing developer that developed eight affordable housing complexes in Monterey County. SCHC has ceased operations and Eden Housing has assumed operational responsibility for most of SCHC's housing complexes, Eden is now assuming legal ownership and the outstanding obligations related to the development of the Boronda Oaks and Jardines de Boronda projects through its subsidiary Jardines LLC. The Board of Supervisors approved the Assignment and Assumption of the Jardines de Boronda "Apartment Loan" in June 2015. The predevelopment loan is the last outstanding SCHC obligation related to...
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