Fiscal Note
This resolution makes technical changes to the Small Cap TIF Loan program in the Park - Drake Neighborhood and is not expected to have a fiscal effect.
Title
Amending Resolution 14-00577, a Substitute Authorizing the Creation of a Greenbush Housing Renovation Program in Tax Increment District #43 (Park-Drake) to provide funding for the Purchase and/or Renovation of Rental Properties to Owner-Occupied Properties.
Body
On August 5, 2014, the Common Council adopted Enactment No. RES-14-00577 (“Resolution”) that authorized the creation of the Greenbush Housing Renovation Program (“Program”). Under the terms of the Program, the City could make loans to a "Borrower" purchasing and renovating rental property in the District to convert into one or more units to be occupied by the Borrower as a principal residence or sold to an owner-occupant with a land use restriction to ensure owner occupancy. The Borrower, is required to occupy the property as their primary residence within twelve (12) months of loan closing, and must occupy the property for ten (10) years.
WHEREAS, the language of the Program as stated in the Resolution has caused confusion as to eligibility; and
WHEREAS, the City has been faced with a variety of applications that present difficulty in managing the program with consistency; and
WHEREAS, in response to these ongoing challenges, this Amendment to the Resolution has three purposes: 1. To clarify the term “owner occupant” for the purpose of eligibility; 2. To clarify what commercial enterprises may be eligible; and 3. Change the loan terms to further incentivize loan applications while maintaining security for the City.
NOW, THEREFORE, BE IT RESOLVED that:
Paragraph 2 entitled “Program Definition” is amended to read as follows:
2) Program Definition: Provide forgivable loans for the purchase and/or renovation of a rental property ("Property") that:
· Are located within the TID #43 (Greenbush) expenditure area
· Will have no more th...
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