Fiscal Note
The proposed resolution authorizes assignment and assumption of Affordable Housing Fund loans originally made to Heartland Housing, Inc. to Cinnaire Solution Corporation, or an affiliate LLC, in order to support the preservation of affordable housing t 715 Rethke Ave and 7933 Tree Ln. No additional City appropriation is required.
The original loan amounts to Heartland Housing, Inc. were authorized via three resolutions in 2015-2016: RES-15-00180 (Legistar file 37626), RES-15-00532 (Legistar file 38694), and RES-16-00064 (Legistar file 41200).
Title
Authorizing an assignment and assumption of the City of Madison Affordable Housing Fund loans, made by the City to Heartland Housing, Inc. to help finance affordable housing developments at 715 Rethke Avenue and 7933 Tree Lane, to Cinnaire Solutions Corporation, or an affiliate LLC. (District 9 & District 12)
Body
WHEREAS, the City of Madison, in the early years of its Affordable Housing Initiative, helped bring about the development of two permanent supportive housing properties (the “Properties”), the first at 715 Rethke Avenue, which provided 60 studio apartments for single adults experiencing homelessness, and the second at 7933 Tree Lane, which included 45 two-, three- and four-bedroom apartments for families with homeless experience; and,
WHEREAS, development of the Properties was undertaken by Heartland Housing Inc., a Chicago-based non-profit agency with demonstrated experience in such developments, which was selected by the City following competitive Request for Qualifications processes; and,
WHEREAS, in March 2015, the Madison Common Council authorized a deferred payment loan of $1.15 Million to Heartland Housing, Inc. to assist in the development of 60 units of affordable housing at 715 Rethke Avenue, secured by a recorded Collateral Assignment and Promissory Note; and,
WHEREAS, in January 2016, the Common Council authorized a separate deferred payment loan of $1.5 Million to Heartland H...
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