Official recommendation
AUTHORIZE the General Manager, Los Angeles Housing Department (LAHD), or designee, to: Approve the sale of the MV-1 located at 3420 Manitou Avenue and MV-2 located at 3414 Manitou Avenue (collectively Projects) both in CD 14 to an entity created by the Housing Authority of the City of Los Angeles (HACLA), named New Way Home Corporation, a California non-profit public benefit corporation, as Borrower, owner and operator of the Projects. Assign the existing Projects loans in the amount of $2,504,918 and $1,519,500 to New Way Home Corporation and negotiate and execute new loan agreements and related documents, as required, all subject to compliance with the Health & Safety Code Regulations, and City Attorney review and approval, as appropriate. Amend the Projects loan agreements to extend the loan term and affordability restrictions with a new 55 year term, reduce the interest rate to three percent simple interest, and forgive all accrued interest through the closing date; and revise the Residual Receipts structure to include a reduced split of 25% City and 75% HACLA with 100% of Residual Receipts funds placed into replacement reserve account until the earlier of (i) 10 years or (ii) until a capital event occurs. Starting in year 11 the split will continue at 25% City and 75% HACLA without the replacement reserve restrictions. In the event of a capital event defined as resyndication, any sale, transfer, refinance, or request for subordination of LAHD debt the Residual Receipt split would be 50/50. Revise the affordability restrictions on MV-2 from the original 10 units to 20 units, with two units at 30% Area Median Income (AMI), two units at 40% AMI, 10 units at 50% AMI, and six units at 60% AMI, which matches the Tax Credit Allocation Committee affordability restrictions, subject to the approval of the City Attorney. B. MOTION 4A (JURADO – HUTT) Recommendation for Council action, pursuant to Motion (Jurado – Hutt): AUTHORIZE the General Manager, LAHD, or designee, to: Approve the sale of MV-1 located at 3420 Manitou Avenue to an entity created by the HACLA, named Hope to House. Inc., a California non-profit public benefit corporation, as Borrower, owner and operator of MV-1; and, approve the sale of MV-2 located at 3414 Manitou Avenue (collectively as Projects) to an entity created by the HACLA, named New Way Home Corporation, a California non-profit public benefit corporation, as Borrower, owner and operator of the Projects. Assign the existing Projects loans in the amount of $2,504,918 to Hope to House, Inc. and the loan in the amount of $1,519,500 to New Way Home Corporation and negotiate and execute new loan agreements and related documents, as required, all subject to compliance with the Health & Safety Code Regulations, and City Attorney review and approval, as appropriate. Amend the Projects loan agreements to extend the loan term and affordability restrictions with a new 55 year term, reduce the interest rate to three percent simple interest, and forgive all accrued interest through the closing date; and revise the Residual Receipts structure to include a reduced split of 25% City and 75% HACLA with 100% of Residual Receipts funds placed into replacement reserve account until the earlier of (i) 10 years or (ii) until a capital event occurs. Starting in year 11 the split will continue at 25% City and 75% HACLA without the replacement reserve restrictions. In the event of a capital event defined as resyndication, any sale, transfer, refinance, or request for subordination of LAHD debt the Residual Receipt split would be 50/50. Revise the affordability restrictions on MV-2 from the original 10 units to 20 units, with two units at 30% Area Median Income (AMI), two units at 40% AMI, 10 units at 50% AMI, and six units at 60% AMI, which matches the Tax Credit Allocation Committee affordability restrictions, subject to the approval of the City Attorney. Make any technical corrections, clarifications or revisions to the above instructions in order to effectuate the intent of the Motion. Community Impact Statement: None submitted (Continued from Council meeting of November 7, 2025) Report from Housing and Homelessness Committee - 11-5-25 Motion (Jurado - Raman) dated 10-31-25.pdf