Fiscal Note
By resolution #13811 (RES-09-00303) adopted March 31, 2009 and resolution #15710 (RES-09-00825)adopted October 6, 2009, the City approved a loan of $540,000 to Housing Initiatives, Inc., to acquire three 4-unit buildings. Housing Initiatives is seeking to borrow $295,000 from Wisconsin Housing and Economic Development Authority (WHEDA) to help pay for rehabilitation costs. To secure that loan, WHEDA requires that it have a first mortgage on the properties which means that the City would have to subordinate its interest to second place. No appropriation or expenditure is required.
Title
Authorizing the subordination of previously approved loans to Housing Initiatives, Inc. to Wisconsin Housing and Economic Development Authority (WHEDA) and authorizing the Mayor and City Clerk to sign agreements to effect such a change.
Body
The Common Council approved a deferred loan of $540,000 in HOME funds to Housing Initiatives, Inc., in 2009, (Legislative ID 13811 and Legislative ID 15710) to acquire twelve units of rental housing where they can provide permanent, affordable housing for low-income homeless people who are also disabled through chronic mental illness.
With these funds Housing Initiatives has acquired or is about to acquire three four-unit properties at located at 2505 Brentwood Pkwy, 5838 Balsam Rd., and 5028 Camden Rd.
Housing Initiatives expects to borrow $295,000 from WHEDA to rehabilitate all three of the buildings and bring them to code. WHEDA financing will require a first mortgage lien on the properties.
Body
WHEREAS, the Common Council approved a loan to Housing Initiatives, Inc. to help it acquire rental property at 2505 Brentwood Pkwy., 5838 Balsam Rd. and 5028 Camden Rd; and
WHEREAS, the CDBG Committee has reviewed the request by Housing Initiatives, Inc. for the City to subordinate its loan to WHEDA to enable Housing Initiatives to complete rehabilitation activities at all three properties;
NOW, THEREFORE BE IT RESOLVED...
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