2001-098- Redevelopment Agency And Town Council Of Los Gatos Approving A Subordination Agreement Concerning The Los Gatos Creek Village Apartments, Inc. And Authorizing It's Execution By The Executive Director - Town MaRESOLUTION 2001- 98
JOINT RESOLUTION OF THE REDEVELOPMENT AGENCY AND
TOWN COUNCIL OF THE TOWN OF LOS GATOS
APPROVING A SUBORDINATION AGREEMENT CONCERNING THE
LOS GATOS CREED VILLAGE APARTMENTS, INC. AND AUTHORIZING
ITS EXECUTION BY THE EXECUTIVE DIRECTOR/TOWN MANAGER
ADDRESS: 31 MILES AVENUE
WHEREAS:
A. On February 23,1999, the Town of Los Gatos and the Los Gatos Redevelopment Agency
each executed funding agreements for an affordable housing project located at 31Miles Avenue,
commonly known as the Los Gatos Creek Village Apartments.
B. On March 4, 1999, the Town and Agency each executed an Addendum to Deed of Trust
and Declaration of Restrictions, the purpose of which being the establishment of certain restrictions
on the property to ensure that it is used for affordable housing purposes to benefit very low income
renters.
C. The operator of the project, Los Gatos Creek Village Apartments, Inc., an affiliate of
Community Housing Developers, has negotiated permanent financing for the project in the amount
of $740,000 with the Washington Mutual Bank ("Bank").
D. As a condition of the loan, the Bank requires that the Town and Agency subordinate the
funding agreements and the affordable housing restrictions to the permanent loan by executing a
Subordination Agreement (Exhibit "A", attached hereto and by this reference, incorporated herein).
RESOLVED:
1. Exhibit A is hereby approved.
2. The Agency hereby finds pursuant to California Health & Safety Code §333 34.14, that the
affordable housing covenants or restrictions must be subordinated because no other economically
feasible alternative method of financing, refinancing, or assisting the project is reasonably available
on substantially comparable terms and conditions, but without subordination. This finding is based
on the fact that all commercial lenders, and all available government lenders, require subordination
as a condition of a loan to such affordable housing projects.
3. The Executive Director of the Redevelopment Agency /Town Manager is authorized to
execute the subordination agreement.
PASSED AND ADOPTED at a joint meeting of the Board of Directors of the
Redevelopment Agency and Town Council of the Town of Los Gatos, California held on the 27t'
day of August, 200t, by the following vote:
AGENCY/COUNCIL MEMBERS:
AYES: Randy Attaway, Steven Blanton, Sandy Decker, Steve Glickman,
Mayor/Chair Joe Pirzynski.
NAYS: None
ABSENT: None
ABSTAIN: None. L__�
SIGNED:
OR/CHA THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CI E K/SECRETARY OF JHE T OF LOS GATOS
LOS GATOS, CALIFORNIA
2