Subject: APPROVAL OF A CHANGE IN THE BUSINESS TERMS FOR THE PERMANENT LOAN TO SHIRAZ SENIOR HOUSING, L.P., OR ITS AFFILIATE, AND APPROVAL OF A CHANGE IN THE BUSINESS TERMS FOR THE PERMANENT LOAN TO ROEM DEVELOPMENT CORPORATION, FOR THE DEVELOPMENT OF THE PROPOSED SHIRAZ SENIOR HOUSING APARTMENTS

COUNCIL DISTRICT: 7

SNI AREA: Tully/Senter

RECOMMENDATION

It is recommended that the City Council adopt a resolution to modify the term of the permanent loan to Shiraz Senior Housing L.P. from 30 years to 40 years and to modify the loan to ROEM Development Corporation secured by the underlying fee title from 32 years to 40 years for the development of the Shiraz Senior Housing Apartments, a 61-unit housing development affordable to very low-income senior households located at 1275 McLaughlin Avenue, south of Owsley Avenue.

ANALYSIS

The change in the term of the loans is being recommended to accommodate the requirements of the senior lender (Key Bank National Association) and to provide a sufficient time for the City loans to be repaid. The City Council approved both these loans on October 16, 2001. All other terms and conditions will remain as previously approved by the City Council.

COORDINATION

Preparation of this report has been coordinated with the Office of the City Attorney.

LESLYE CORSIGLIA

Acting Director of Housing