RECOMMENDATIONS
APPROVE refinancing an existing loan with Westamerica Bank for the purchase of the Housing Choice Voucher office located at 2870 Howe Road, Martinez, CA 94553 and AUTHORIZE the Executive Director and the Finance Director to submit and execute all required documents to complete the refinancing.
BACKGROUND
On December 12, 2006, the Board authorized the purchase of the Howe Road property for $3,375,000. A purchase agreement was executed on December 15, 2006 with an initial rate of 7.25% fixed for 10 years, with a balloon payment due January 1, 2017. The loan has subsequently been refinanced several times in response to drops in the prime lending rate. This first refinance occurred on June 1, 2008 at a 6.75% rate, then on January 1, 2012 at 6% and finally on January 1, 2013 at 5.25%. In all cases, the loan was refinanced at a fixed 10-year rate with a balloon payment of $2,255,000 due by January 1, 2017.
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