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City Council Approves Loan Agreement for Affordable Unit on Monday’s Consent Calendar

Published on Monday, April 26, 2021 | 5:25 pm
 

As part of the consent calendar of Monday’s City Council agenda, the council approved a $331,100 housing acquisition loan agreement with Heritage Housing Partners (HHP) for an affordable unit at 608 N. Fair Oaks Ave. #127.

“Since 2012, the city has entered into similar loan agreements with HHP, a local developer, as the nonprofit designee to acquire city-assisted units in affordable homeownership projects developed by HHP or inclusionary units that were developed with no city subsidies,” the council agenda said on Monday.

With Monday’s sweep motion, the City Council also rejected four bids to provide janitorial services in city parking lots, approve a $440,000 contract with Allison Transmission Service for five years and reject bids for lubrication oil services for city fleet vehicles, and approve a $138,354 purchase order with Stryker Sales Corp. for the purchase of power lift systems needed on rescue ambulances.

City staff is also recommending a one-year agreement with the city of Cudahy to exchange $110,775 of Pasadena’s general fund dollars currently dedicated for transit services for $147,700 of Cudahy’s Proposition A local return dollars to be used for Proposition A eligible transit operations, programs and projects in Pasadena.

The big item was the loan agreement for the affordable unit.

These two types of affordable units are subject to deed restrictions which provide the city or HHP the right of first refusal to purchase the property upon the homeowner submitting a notice of intent to sell.

However, if the right of first refusal is not exercised, the homeowner may sell the property at market price in which case the city would receive an equity share of the sale proceeds but the deed restrictions would be extinguished, resulting in the loss of an affordable unit to the market.

By exercising the right of first refusal to purchase, the property is preserved as affordable housing within the city’s housing stock.

The City Council can approve or reject the seven items on the agenda’s consent calendar with a sweep motion. Items can be pulled for more discussion.

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