Fiscal Note
This resolution would authorize transfer of responsibility to repay a $379,099.50 Section 17 Rental Rehabilitation Loan from the YWCA to a related entity. It also forgives $1,454,400 of accrued interest on the Section 17 loan which, under the terms of the original agreement, would have been forgiven in September of 2009. No direct budgetary impact.
Title
Approving the extension of a Section 17 loan to The Young Women’s Christian Association of Madison, Wisconsin, Inc. and the assignment and assumption of various loan obligations thereunder to YWCA Madison Housing, LLC; authorizing the City’s forgiveness of interest; and authorizing the Mayor and City Clerk to execute all documents as may be necessary to conclude this transaction.
Body
The Young Women’s Christian Association of Madison, Wisconsin, Inc. (the “YWCA”) is the owner of a building located at 101 East Mifflin Street consisting of staff offices, family shelter rooms, transitional housing, and single room occupancy units for single women (the “Property”). In 1989 the City made a Section 17 Rental Rehabilitation loan in the amount of $379,099.50 (the “Loan”) to an affiliated entity of the YWCA to fund certain improvements to the Property. All obligations under the Loan documents were assigned by the affiliated entity to the YWCA in 2002. The Loan, including interest accruing at 8.2% a year, is due and payable in September 2009. The Loan documents provide that the interest accruing under the Loan may be forgiven in 2009, and that, with the consent of the City, the Loan may be extended for an additional twenty year term at zero percent interest. The YWCA intends to seek tax credit investments or other funding to pay for needed improvements to the Property, and to assist that project, the YWCA has requested an extension of the Loan for an additional twenty years.
WHEREAS, in 1989, the City provided a $379,099.50 Section 17 Rental Rehabilitation Loan to an affiliated entity of the YWCA to par...
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