06-15 HRA Resolution No. 1362
HRA RESOLUTION NO. 1362
RESOLUTION APPROVING A MASTER AMENDMENT AGREEMENT WITH AEON SEASONS
PARK LLC RELATED TO AN AFFORDABLE HOUSING PROJECT IN THE CITY OF
RICHFIELD
WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield,
Loan Agreement,
the Borrower in financing the acquisition of the 422-unit Seasons Park apartment complex (the
th
St
and
WHEREAS
the Borrower executed and delivered to the Authority a Promissory Note, dated October 5, 2017
original aggregate principal amount of $150,000, and a Mortgage, dated
; and
WHEREAS, to ensure that the Project maintained certain affordability covenants, the
Authority and the Borrower entered into a Declaration of Restrictive Covenants, dated October 5,
Minnesota on October 16, 2017, as Document No. A10489775, and in the Office of Registrar of
Titles of Hennepin County, Minnesota on October 16, 2017, as Document No. T05482597; and
WHEREAS, in connection with the Project, the Borrower also obtained financing from
amount of $20,40
WHEREAS
indebtedness secured by the Note is subordinate to the right of payment in full of the indebtedness
secured by a promissory note delivered by the Borrower to the Fannie Mae Lender in the principal
amount of $20,400,000, which was assigned to Fannie Mae; and
WHEREAS, the Borrower intends to refinance the Fannie Mae Lender Loan, and take out
an additional loan provided to the Borrower in connection with financing improvements to the
Project owned by the Borrower and located in the City, with the proceeds of loans in the cumulative
Loans
WHEREAS, the Authority and the Borrower have determined the need to amend certain
provisions of the Loan Agreement, the Note, and the Mortgage to incorporate certain requirements
of MHFA, including but not limited to the extension of the maturity date of the Note, and MHFA
requires that the Authority subordinate its interest in the Mortgage and
repayment obligations thereunder to MHFA; and
WHEREAS, in connection with the MHFA Loan, the Fannie Mae Subordination Agreement
will be released, and MHFA has requested that the Authority and the Borrower enter into a
with MHFA; and
WHEREAS, there has been presented before the Board of Commissioners of the Authority
forms of the MHFA Subordination Agreement and the
amendments to the Note, the Loan Agreement, and the Mortgage, including but not limited to the
extension of the maturity date of the Note; and
NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Housing
and Redevelopment Authority in and for the City of Richfield, Minnesota as follows:
1.The MHFA Subordination Agreement and the Master Amendment Agreement are
hereby in all respects authorized, approved, and confirmed, and the Chair and the
Executive Director are hereby authorized and directed to execute the MHFA
Subordination Agreement, the Master Amendment Agreement for and on behalf of the
Authority in substantially the forms now on file with the Executive Director but with such
modifications as shall be deemed necessary, desirable, or appropriate, the execution
thereof to constitute conclusive evidence of their approval of any and all modifications
therein.
2. The Chair and the Executive Director are hereby authorized to execute and deliver any
and all documents deemed necessary to carry out the intentions of this resolution.
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,
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Minnesota this 15 day of June, 2020.
Mary B.Supple, Chair
ATTEST:
Maria Regan Gonzalez, Secretary
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