Fiscal Note
Porchlight is selling property with 8 Sleeping Room Only (SRO) units at 315 S. Henry Street in order to purchase two properties for a total of 16 SRO and efficiency units. The CDBG Office provided funding for the acquisition and rehabilitation for the Henry Street property in 1992-93. The mortgage and promissory note for the Henry Street property require that 83% of the proceeds be returned to the City at sale. Porchlight is requesting that the City’s proceeds ($206,255) be re-loaned to them to acquire property at 519 E. Johnson Street and Porchlight requests an additional $28,000. Pending the CDBG Commission approval, Porchlight will receive $234,255 in new HOME Match funds for this project. Additionally, funding of $214,590 that had been previously loaned to ARISE Family Services to purchase 519 E. Johnson Street will remain on the property in the form of a forgivable loan that will be considered satisfied at the end of the 15 year affordability period. Therefore, total CDBG investment in the property will be $448,845
Title
Approve Porchlight’s request for $234,255 in Home Match funds for 6 units in the form of a deferred loan secured by a mortgage, promissory note and Land Use Restriction Agreement (LURA) with a 15-year affordability requirement; authorize the Mayor and City Clerk to sign any agreements to effect such a change; agree to waive the CDBG Office 2009-2010 Program Funding Framework per unit limit and the loan-to-value ratio; and approve a 15-year forgivable loan with Porchlight for the outstanding CDBG Office investment $214,590. The total CDBG Office investment in this property will be $448,845.
Body
Porchlight intends to acquire and rehabilitate 6 efficiency units at 519 E. Johnson Street as permanent housing for persons with incomes less than 50% of the Area Median Income with one resident manager. ARISE Family Services has defaulted on a 2005 agreement with the City to provide affordable housing at this address. The Porchligh...
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