(a) Agreements. MOHCD shall prepare standard form Loan and Grant agreements, which will be subject to negotiation as deemed appropriate by the Director. The Board authorizes and delegates to the Director the authority to enter into and amend Loan or Grant agreements consistent with this Chapter 120
, including agreements that extend beyond 10 years as well as ancillary documents and agreements, to create, improve, or preserve Affordable Housing. The Director has the authority to enter into such agreements for the following, so long as they meet the requirements of this Chapter 120
:
(1) Loans or Grants that do not exceed $10,000,000 under Homeownership Programs, Multifamily Programs and Acquisition Programs;
(2) Grants under LOSP subject to annual appropriation by the Board of Supervisors; and
(3) Loans exceeding $10,000,000 for Affordable Housing that faces a life safety emergency where low-income residents are at imminent risk of losing their housing, subject to (A) the Controller’s determination that adequate funds are available and appropriated for the proposed disbursement, (B) the Director’s determination that the owner of such Affordable Housing has fully utilized all other sources of funding or financing available to the owner, and (C) the Mayor and the Board receiving at least 10 days’ advance notice of the Loan.
For all other Loans or Grants that exceed $10,000,000, including any modifications to a Loan or Grant that would increase the total amount to exceed $10,000,000, MOHCD shall obtain prior Board approval by resolution to the extent required under Charter Section 9.118(b).
(b) Loan Committee Recommendation. MOHCD shall consult with applicable City agencies and/or departments regarding new Loans and Grants, which may be accomplished through recommendations made by the Loan Committee. Prior to execution of any agreement, MOHCD shall have the Loan Committee review new Loans and Grants, including material modifications to existing Loans and Grants as determined by the Director, under LOSP, Multifamily Programs, and Acquisition Programs for the purpose of streamlining the review of funding applications and coordinating affordable housing development and services with other City agencies and/or departments. The members of the Loan Committee may, in each member’s discretion, choose to not recommend any proposed Loan or Grant, or make recommendations to reduce the amount of or to condition any proposed Loan or Grant.
(c) Funding Disbursement. MOHCD shall be responsible for approving the disbursement of Loan and/or Grant proceeds and monitoring performance of Borrowers and Grantees under this Chapter 120 and enforcing the applicable agreements. MOHCD shall establish commercially reasonable protocols to oversee the use and expenditure of Loan and Grant proceeds.
(d) Loan Servicing. MOHCD shall collect revenues due and owing under Loans and Grants, maintain records of all such revenues segregated by Program, and maintain annual statements of such accounts. Loan repayments shall be deposited into the applicable Fund in accordance with Program Regulations, and the Director shall work with the Controller to apply revenues toward repayment of bonds as and when required.
(e) Fees for Services. MOHCD may charge reasonable fees, including Loan origination and monitoring fees, and such other necessary fees of consultants and agents retained to administer any Program. MOHCD shall include a statement of the fees in the Program Regulations for each Program.
(f) Refinance and Loan Workouts. To preserve and maintain any Affordable Housing, the Director is authorized to refinance, restructure, modify, or extend the term of any Loan or Grant and any related agreements, provided that a new Declaration of Restrictions is recorded against the Property.
(g) Monitoring and Enforcement. MOHCD shall monitor compliance with Loan and Grant agreements, Declarations of Restrictions, and any other related documents. MOHCD may take such actions as are reasonably necessary to enforce such agreements and documents and collect on any security, including the foreclosure of any deed of trust, possession of rents and other revenues, or the demand and collection under any guaranty or other security instrument. MOHCD may also take action to protect its security or its interest in a Property, including curing a default under a senior loan or acquiring property at a tax sale, foreclosure, through a deed in lieu of foreclosure, or through a judicial process. The Board authorizes and delegates to the Director, following consultation with the Director of Property and the City Attorney, the right to accept a deed or other security or interest in property as part of any remedy or as may be needed to preserve Affordable Housing.
(Added by Ord. 202-19, File No. 190679, App. 8/9/2019, Eff. 9/9/2019)