The proposed bill seeks to amend the existing Housing Production Trust Fund (HPTF) loan agreement with 3500 East Cap Venture LLC by increasing the loan amount by $1,979,231, raising the total loan from $18,435,936 to $20,415,167. This additional funding is aimed at preserving 95 affordable rental housing units at Solstice II Apartments, located at 3500 East Capitol Street NE in Ward 7. The funds will address operating reserves, aged accounts payables, sponsor advance reimbursements, and deferred repairs and maintenance expenses, particularly in light of financial challenges exacerbated by the COVID-19 pandemic. The Department of Housing and Community Development (DHCD) has confirmed the necessity of this loan increase to mitigate foreclosure risks and ensure the continued operation of these affordable housing units.

In addition to the loan increase, the bill includes the deletion and replacement of Exhibit B attached to the Loan Agreement, which outlines the project budget. The amendment reaffirms the commitments and representations made under the original loan documents, ensuring that the amended agreement remains in full force and effect. The bill also clarifies that the amendments do not affect the senior priority of an existing Deed of Trust related to the project. Overall, the legislation aims to stabilize the financial situation of the Solstice II Apartments while ensuring compliance with various regulatory and financial requirements.