HomeMy WebLinkAboutAgenda Report - September 7, 1988 (84)august 11 X35_
Lodi City Co -uracil
Call Box 300b
Lodi, CA 95_41
Dear Council Members:
CIT .
T
RE: CREEKSIDE SOUTH APTS.
Enclosed is a notice that must be sent to you under section 65863.10
'of the California Letter of Compliance code.
The owners of the above referenced apartments, are desirous of
transferring their interest to a non—profit corporation (Preservation
of Subsidized Bousinp) in order to maintain this complex as housing
for low and medium income families and preserve the governmental
assistance -
The Federal and State procedures set out a format that must be fol—
lowed if an owner wishes to prepay the loan and take the project out
of the subsidized program. Unfortunately, when the owner wishes to
transfer his project to a non—profit organization and maintain the
project as subsidized, the same format must be followed in its initial
steps.
For these reasons, the enclosed notice is forwarded to You -
have any
ou.haveeany questions, please do not hesitate to call.
inc�er Iey
David 3.c_
President
D.JM/ c g
Enclosures
PROFESSIONAL. APARTMENT MANAGE EN7
2020 WEST KETTLEMAN LANE • PO. BOX 1570 • LODI. CA 95241 • TELEPHONE (209) 334-6565
I f you
CREEKS IDE SOUTH APARTMENTS
601 Wimbledon Drive
Lodi, CA 95240
TO : Lodi City Council
CITY OF: Lodi. California
RE : Government Code Section 65863.10, Letter of Compliance
DATE: August 11, 1988
BACKGROUND INFORiSATION
Section 65863.10 of the California Government Code req -Ares a six (6)
month advance notice to tenants and to the city cr county where
certain forms of federal financial assistance will be terminated or if
an owner elects to prepay the loan on a subsidized multi -family rental
housing development.
The Department of Housing and Urban Development regulations (24 CFR
Parts 50, 221, 236, 241, 248) (Housing and Community Development Act
of 1987) provides the owner of a subsidized multi -family rental
housing development with an alternative to prepaying the loan by
offering certain incentives or if such incentives are not acceptable,
to sell the multi -family development to a non-profit corporation.
The purpose of these regulations is to mitigate the problems which
prepayment creates for displaced tenants.
In general, the procedural requirements of the regulations mandate
that owners submit a written request to prepay the loan in advance of
the anticipated prepayment date. If the prepayment request is denied,
HUD can provide certain incentives as an alternate to prepayment of
the loan. One incentive is to permit a sale to a non-profit corpora-
tion.
NOTIFICATION
Please be notified that the owner of the above noted subsidized
multi -family rental housing development has requested permission from
HUD to allow the owner to sell the above described apartnent complex
to a California non-profit corporation - "Preservation of Subsidized
Housing" (POSH). The anticipated transfer date, if HUD approves is
March 1, 1989. The complex w-i..l4- r-awii4a.. as a subsidized multi -family
housing development under the owner's plan of sale.
The owner is of the opinion that since there w i 11 be no termination or
prepayment or government assistance, it does not fall within the
purview of Government Code 65863.10.
Out of an abundance of caution, the owner submits this notice as the
Hud and FmHA rules require the owner to submit with his application to
that agency, a copy of the notice sent to the local government agency.
Therefore the ow:ier submits the following information:
1. Number of affected tenants 80
2. iumber of units that are government assisted -0-
3. The number of the units that are not government assisted 40
4. The number of bedrooms in each unit that is government
assisted:
i6 - 1 Bedrooms
23 - 2 Bedrooms
1 - 3 Bedroom
5. The ages and income categories of the affected tenants:
Age range 21 - 60 years
Income range
X 0 - 12,000 per annum
X 12,000 - 18,000 per annum
18,000 and over
Attached and incorporated herein is a copy of the notice given to each
tenant.
Respectfully submitted this 11th day of August , 1988.
OWNER:
CREEKSIDE SOUTH APTS.,
A LIMITED PARTNERSHIP
PROFESSIONAL APARTMENT MANAGEMENT,
INC.
J .seer D. Michael
Aeent of Owner
August 11, 1988
Department of HouS ng and
Urban Development
777 12th Street
Suite 200
Sacramento, CA 93809
Gentlemen:
I --
RE: CREEKSIDE SOUTH APTS.
Project # 136 -44131 -LD
Lodi, CA
Please allow this letter to serve as a Notice of Intent on behalf of
the above noted project pursuant to Section 246.211 of HUD Regulations
relating to Prepayment of a HTUD Insured Mortgage.
Under the above noted regulations, the Notice of Intent must contain
the following information:
1) Identity of the project. (See above reference)
2) Description of the owners plans for the project, including
any timetables or deadlines for action to be taken.
The owner requests the Secretary to provide insurance for an
equity loan under Section 241.100, to enable the owner to
capture a portion of his equity. The owner would in tandem
seek to transfer the project to "Preservation of Subsidized
Housing" (POSH) a California lien -profit corporation. The
purpose of this physical transfer is to allow the project to
continue as a subsidized facility and thus not involuntarily
displace any tenant, POSH has agreed to continue the project
in the program for the period provided for in the
regulations.
The owner has no timetables or deadlines, however Section
65863.10 of the Government Code of the State of California
provides at least a six month advance notice be given to
tenants aad the legislative body of the City prior to
termination or prepayment of governmental assistance. This
notice has been given. A copy of our letter to the local
legislative body is attached and incorporated herein.
PROFESSIONAL APARTMENT MANAGEMENT
2020 WEST KETTLEMAN LANE • P.O. BOX 1570 + =1 CA 95241 TELEPHONE (209) 334-6565
'.^n`.' wH+..^mw'++r+aMx ro•.mR vttKwn K reg+ •• 'ta`4 1 (`�.!'.` NAµ ✓i' k,�y y �
August 1 i , 1988
11UD
Page Two
3. The reason -,he owner seeks to prepay the mortgage or change
the terms of the mortgage.
As indicated above, the owner is desirous of taking advantage
of Section 241.100 et seq in order to capture a portion of
his equity. The owner w i 11 request the commissioner to
approve a specific element of the plan of action allowing the
insurance of the equity loan and transfer of the project to
POSH.
4. Description of any contacts the owner has made or is making
with other governmental agencies or other interested parties.
The owner has made no contact with any governmental agency,
but will send the local legislative body (governmental
agency) a duplicate copy of this Notice of Intent: with a
letter explaining what the owner seeks to accomplish.
The owner has contacted POSH and entered into an agreement,
subject to H10's approval, for the transfer of the project to
POSH under section 248.231(8).
Would you kindly furnish the undersigned with information the owner
needs to prepare a plan of action.
The contact person is Joseph D
California 95241.
�r try truly yours,
JJ ph D. Michael
.IDM/cg
Attachment:
Letter to local legislative body
Michael, P.O. Box 1570, Lodi,
8/3POSli
CREEKSIDE SOUTH APARTMENTS
601 Wimbledon Drive
Lodi, CA 95240
August 11, 1988
Dear Tenant _
Your rent is lower than other apartment house rents because the
government makes a sig^sidy available to reduce your rent.
In order to continue :his government subsidy Cor the next 20 years and
maintain the reduced rents, the owners have made an application to
transfer the projecr to a non—profit corperation. This will not
effect you as a tenant.
To accomplish the trznsfer, the owners have to go through certain
procedural steps, one of which is to give you a notice of what we hope
to accomplish.
The State of California recently passed a law that states a tenant
must be given a six (6) month notice if a tenant subsidy is to be
terminated or the mor:gage of a subsidized project is to be prepaid.
Since the owners are not prepaying the mortgage or terminating the
subsidy it is not necessary to give such a notice.
However, as we are recuesting a change of ownership, the owner felt it
best to inform you of the following:
1. Anticipated date of the termination or prepayment: of the
subsidy or mortgage amount.
There — i i i uQ- be a termination of the subsidy or a
prepayment of the mortgage.
2. The anticipated rent increase at the date of prepayment or
termination.
There will be no rent increases resulting . from the prepayment
or terminatioa, as there will not be a termination or
prepayment.
3. A copy of this notice w i 11 be sent to the City Council or
Board of Supervisors if the apartment is located in an
unincorporated area.
4. A public hearing nay be held by the City or County on the
issue and is such hearing is held, each tenant will receive
notice of the hearing at least 15 days in advance.
August !1, 1988
Tenai:t
Page Two
Again, this notice Jis a procedural matter and it will not effect you.
The o«ers are desirous of continuing the gover-ment subsidy for your
benefit.
If you have any questions, �,-erse contact the manager on site or our
office.
Very truly yours,
OWNER: CREEKSIDE SOUTH APTS . , A
Limited Partnership
U
PROFESSIONAL APARTMENT
VAgent For Owner x