City Council

(21) 24­0964 CD 13 COMMUNICATION FROM THE LOS ANGELES HOUSING DEPARTMENT (LAHD) relative to authorizing an amendment and/or the City's loan agreement with 5169 Hollywood Boulevard Limited Partnership for the Kingswood Apartments located at 5169 West Hollywood Boulevard in Council District 13. Recommendations for Council action: 1. AUTHORIZE the General Manager, LAHD, or designee, to amend the City’s loan agreement or amend and restate the loan agreement or other format to be approved by the City Attorney to memorialize the changes to the City’s existing loan agreement with 5169 Hollywood Boulevard Limited Partnership for the Kingswood Apartments located at 5169 West Hollywood Boulevard, Los Angeles, California 90027 with the following: a. Extend Loan Maturity to co­terminate with the State of California Housing and Community Development Department (HCD) Portfolio Reinvestment Program (PRP) loan documents, which will be in the year 2079 extending City loan maturity by 56 years. b. Extend Loan Affordability to co­terminate with the HCD PRP loan documents, which will be in the year 2079, extending affordability by 16 years. c. -Amend interest 2024to- 3 percent simple interest California Housing and Community Development Department (HCD) Portfolio Reinvestment Program (PRP) loan documents, which will be in the year 2079 extending City loan maturity by 56 years. b. Extend Loan Affordability to co­terminate with the HCD PRP loan documents, which will be in the year 2079, extending affordability by 16 years. c. Amend interest rate to 3 percent simple interest (from 8.44 percent compounding interest) to reduce the amount of accruing interest and to bring the project to LAHD’s current residual receipt loan terms. d. Amend residual receipt definition in regards to Related Third Party Transaction fee to no more than the current rate and increase factor based on the LAHD Portfolio Management’s Guidelines. e. Amend the definition of Operating Expenses to allow for a supportive service reserve deposit for non­supportive housing units should the project provide supportive services in the future based on the LAHD Portfolio Management’s Guidelines. f. Amend other loan terms in the loan amendments to be consistent with current loan agreement terms as deemed appropriate by the City Attorney. 2. REQUEST the City Attorney to prepare all necessary documents, including but not limited to Loan Amendment, Loan Amendment Exhibits including but not limited to Amendment to Regulatory Agreement, Covenant Terminations, Subordination Agreements, and other documents as necessary to reflect new loan terms. Fiscal Impact Statement: The LAHD reports that there is no impact to the General Fund.