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File #: 21-0787    Name: Authorization to Temporarily Waive City Loan Residual Receipt Payments to Support COVID-19 Operating Deficits
Type: Status: Agenda Ready
File created: 2/24/2021 In control: City Council Legislative Meeting
On agenda: 3/23/2021 Final action:
Title: Authorization to Temporarily Waive City Loan Residual Receipt Payments to Mitigate COVID-19 Operating Deficits.
Attachments: 1. 21-0787 Attachment _Nonprofit with City Residual Receipts Loan
City of Alexandria, Virginia
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MEMORANDUM


DATE: MARCH 17, 2021

TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL

FROM: MARK B. JINKS, CITY MANAGER /s/

DOCKET TITLE:
TITLE
Authorization to Temporarily Waive City Loan Residual Receipt Payments to Mitigate COVID-19 Operating Deficits.
BODY
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ISSUE: Authorization to Temporarily Waive the City Loan Residual Receipt Payments to Mitigate COVID-19 Related Operating Deficits.

RECOMMENDATION: That City Council:

1) Allow residual receipt payments, otherwise due based on property revenues, to be waived on City affordable housing loans, if requested by nonprofit borrowers, to help mitigate operating deficits related to COVID-19; and

2) Authorize the City Manager to execute waiver agreements with borrowers, as appropriate, based on staff's review and recommendation of requests.

BACKGROUND: Many of the City's low- and moderate-income households have been disproportionately impacted by the COVID-19 pandemic. These households have faced job losses and struggle to make monthly rent payments. Based on discussions with the City's nonprofit borrowers pursuant to the Asset Manager's annual audit process, some nonprofit borrowers are experiencing an increase in rent losses, partially offset with the City's Emergency Rent Relief Assistance funds and the State Rental Relief Program. Further losses in rent payments could contribute to operational stress on the City's affordable multifamily housing properties, risking borrowers' ability to maintain properties and pay operational expenses. Some borrowers have asked the City to waive loan payments otherwise due, based on property performance in 2019 and early 2020, to provide a cushion to mitigate anticipated deficits through the pandemic response and recovery periods.

DISCUSSION: Staff believe that providing loan payment relief for the City's multifamily residual receipt loans during t...

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