DEPARTMENT: Neighborhood and Housing Services
DEPARTMENT HEAD: Ver?nica R. Soto, AICP, Director
COUNCIL DISTRICTS IMPACTED: City-Wide
SUBJECT:
Babcock North II Apartments Subordination and Loan Modification
SUMMARY:
Consideration of a recommendation to approve the subordination and loan modification of the HOME loans for Babcock North II Apartments located at 11800 Spring Shadow in Council District 8.
BACKGROUND INFORMATION:
The City of San Antonio (the City) receives an annual entitlement of HOME Investment Partnerships Program funding through the U.S. Department of Housing and Urban Development (HUD). The HOME Program objective is to provide decent affordable housing to lower-income households.
On June 4, 2002 the City executed two HOME loans in the amount of $370,000.00 collectively with Alamo Community Group (ACG) to acquire and rehabilitate the Babcock North II Apartments, a 72-unit rental housing development, located at 11800 Spring Shadow, in Council District 8.
The loan terms are as follows:
Loan A
Loan B
Original Loan Amount:
$220,000.00
$150,000.00
Current Loan Balance:
$220,000.00
$113,130.38
Interest Rate:
1%
1%
Loan Origination:
January 4, 2002
January 4, 2002
Maturity Date:
June 1, 2043
June 1, 2041
Loan Terms:
Interest only payments due and payable in quarterly installments of $577.50 until August 1, 2023. Beginning on September 1, 2023, quarterly payments of $3,189.46 until the principle amount of $220,000.00.
Principal and interest due and payable in quarterly installments of $1,168.75. Payments began on June 1, 2008.
This development received 9% Low Income Housing Tax Credits in 2012 and is in year 16 of the required affordability period. The existing Land Use Restriction Agreement will remain in place for the next 15 years with the following restrictions regarding unit mix and restricted rents:
* 16 units restricted to households at or below 50% of area median income
* 45 units restricted to households at or below 60% o...
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