TO: CRA Board of Commissioners
FROM: Kim N. Phan, Legal Advisor
THROUGH: Renée A. Jadusingh, Executive Director
DATE: January 22, 2022
Title
ALLONGE TO MULTIFAMILY PROMISSORY NOTE FOR VILLAGE SQUARE ELDERLY, LTD.
Body
Recommended Action:
Recommendation
Approve the Allonge to Multifamily Promissory Note for Village Square Elderly, Ltd.
Body
Background:
On July 17, 2014, the CRA entered into a funding agreement with Village Square Elderly, Ltd. for $2.7 million, with a 20-year term loan for the redevelopment of the former Carver Estates public housing project and construction of an 84-unit low income senior apartment complex, a 144-unit low income housing rental apartment complex, approximately 40 single family homes and a clubhouse. The terms of the loan are outlined in the Promissory Note executed by Village Square Elderly, Ltd (“Promissory Note”).
The Management Letter included in the CRA’s Independent Auditor’s Report prepared by Caler, Donten, Levine, Cohen, Porter & Veil, P.A. for fiscal year ended September 30, 2020 made the following recommendation to improve the CRA’s financial management:
See Management Letter, p. 48.
An allonge to the Promissory Note has been prepared and executed by Village Square Elderly, Ltd. which clarifies how the amount of cash flow from the property will be used to repay the Promissory Note on an annual basis.
At this time, CRA Staff is requesting the CRA Board to approve the Allonge to the Multifamily Promissory Note for Village Square Elderly, Ltd.
Attachments: Exhibit A - Allonge to Multifamily Promissory Note for Village Square Elderly, Ltd.; Exhibit B - Caler, Donten, Levine, Cohen, Porter & Veil, P.A Management Letter; Exhibit C - July 17, 2014 Promissory Note
CRA Attorney Review:
The CRA Legal Advisor has reviewed the attached Allonge to Multifamily Promissory Note for Village Square Elderly, Ltd. as to form and finds it acceptable.
Funding Source/Financial Impact:
N/A