City Council

CC 4.\nSubordination Agreement, allowing Laurel Crest L.P. to Proceed with Refinance of Senior\nLoan for Laurel Crest Apartments\nAdopt Resolution No. 23-52, authorizing the City Manager, or his designee, to finalize\nterms, modify and execute a subordination agreement with respect to the $3,412,500.00\nLancaster Redevelopment Agency Loan and a $4,024,440.00 HCD loan, allowing Laurel\nCrest, L.P. to proceed with mortgage refinance of senior loan for Laurel Crest Apartments.\nCity staff received a request from Laurel Crest L.P., owner and manager of Laurel Crest\nApartments, to subordinate Laurel Crest’s $3,412,500.00 Lancaster Redevelopment\nAgency loan with the City of Lancaster (City) to a new $1,900,000.00 first mortgage loan\n(the “New Loan”) from Clearinghouse Community Development Financial Institution\n(“CCDFI”) and the $4,024,440.00 HCD loan as part of a restructuring of the HCD loan\nunder HCD’s Loan Portfolio Restructuring Program, whereby new loan documents will\nbe issued. Development of Laurel Crest Apartments, a 72-unit complex, was financed\nthrough a combination of mortgage loan, multi-family revenue bonds, HCD loan, a\nLancaster Redevelopment Agency/the City loan, and the owner/investor. Laurel Crest\nL.P. (the “Borrower”) now desires to refinance and pay off the existing Bond loan that has\na balance of $1,508,096.47 as of May 2023 with a loan provided by CCDFI in the amount\nof $1,900,000.00. The additional proceeds above the existing loan balance will be used\nfor deferred capital expenditure items, such as a new fence, new boiler, new mailbox area,\nlandscaping, et cetera.