Fiscal Note
The City made a loan of $414,790 in HOME funds to Arise Family Services to help them acquire property at 519 E. Johnson St. and 324 E. Mifflin St. to provide affordable rental housing to low income ex-offenders. The loan is secured with mortgages on the properties. The organization now seeks to establish an $80,000 line of credit to expand services that requires a first mortgage. This resolution would permit subordination of the $414,790 loan to a new loan from the lender provided the total loan-to-value of both properties does not exceed 115% as allowed in the CDBG Program Framework. No appropriation is required.
Title
SUBSTITUTE - Authorizing the subordination of a previously approved loan to Arise Family Services to a first mortgage holder and authorizing the Mayor and City Clerk to sign agreements to effect such a change.
Body
WHEREAS, the Common Council approved a loan to Arise Family Services to help them acquire rental property to serve their target population and expand their services; and
WHEREAS, those efforts have been very successful, enabling the organization to provide affordable rental housing and services to very low income ex-offenders; and
WHEREAS to CDBG staff and Commission have reviewed the proposal for the subordination and recommend Council adoption as a way to assist Arise Family Services to secure the funds to develop expanded services;
NOW, THEREFORE, BE IT RESOLVED, that the Common Council approve the subordination and authorize the Mayor and City Clerk to sign agreements to implement the subordination.