City Committee Promotes Loan to Local Developer to Purchase Condominium Unit – Pasadena Now

Pasadena’s Economic and Technology Development Committee approved a housing loan to local nonprofit developer Heritage Housing Partners (HHP) to purchase a homeownership unit in the condominium from Summit Grove to 106 E. Orange Grove Boulevard.

Committee members unanimously approved the proposal at its meeting on Tuesday, September 21.

Heritage, which previously developed the Summit Grove condominium project with financial assistance from the city, submitted a loan application to the city Aug. 25 to acquire the three-bedroom unit for $315,600.

On the recommendation of the staff, the committee agreed to loan the developer an amount not exceeding $331,200, without interest, for the acquisition and resale of the unit to a low-income household.

Affordable homeownership projects developed pursuant to the city’s inclusion ordinance are subject to deed restrictions that give the city the right of first refusal to purchase the property upon presentation by the homeowner. a notice of intention to sell.

If the right of first refusal is not exercised, the owner can sell the property at the market price.

In this case, the City would receive a share of the sale, but the restrictions of the deed would be extinguished, resulting in the loss of the affordable unit in the market.

To preserve the affordability of restricted-act unit housing, the City has helped HHP acquire 12 affordable restricted-act units so far since 2012.

Nine of those units have already been successfully resold to qualified low-to-moderate income first-time buyers, while three are still being resold, according to city documents.

City staff reported that the acquisition financing provided to HHP is fully repaid through the resale of the properties and that HHP was able to purchase and resell the units within the required 12 month time frame.

Under the loan agreement, HHP must use the loan to acquire the three-bedroom unit by November 30, 2021, and the amount must be repaid to the city within 12 months of the loan being issued.

In addition to Summit Grove, HHP’s completed projects in Pasadena include Haskett Court, Fair Oaks Court, Herkimer Gardens, Decker Court and Gill Court.

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