Fiscal Note
The proposed resolution authorizes execution of Affordable Housing loan agreements, totaling $1.8 million, with Gorman Holdings, Inc. for GrandFamily Apartments and MSP Real Estate, Inc. for Normandy Square. The loan amount to Gorman Holdings will be $950,000 for a 60-unit rental housing development with 56 affordable units. The loan amount to MSP Real Estate, Inc. will be $850,000 for a 58-unit rental housing development with 48 affordable units. Adopted RES-16-00854 (File ID 44932) authorized allocation of $3.15 million from Affordable Housing Funds, part of which was to support the aforementioned developments. The proposed loans will be covered by $10.7 million of available appropriation in the Affordable Housing Fund capital project in the Community Development Division.
Title
Authorizing the Mayor and City Clerk to execute loan agreements associated with affordable housing development projects selected as part of the 2016 Affordable Housing Fund Request for Proposals process.
Body
The Common Council adopted #RES-16-00854 on November 22, 2016, which authorized the allocation of up to $3.15 Million in Affordable Housing Funds to support the creation of approximately 180 units of affordable rental housing through the development of three projects: GrandFamily Apartments, Normandy Square, and Fair Oaks Apartments. Fair Oaks Apartments was not awarded 2017 Low Income Housing Tax Credits, therefore, preventing that project from moving forward in that cycle. The resolution authorizing the allocation did not articulate the specific terms related to the financial awards for each project. This resolution specifically articulates those terms and financial awards and also seeks to ensure that the Mayor and City Clerk are authorized to execute loan agreements with each of the development entities as originally anticipated.
ACTION
WHEREAS, the Common Council, at its meeting on November 22, 2016, adopted Resolution #RES-16-00854 authorizing ...
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