Title
Amend Federal HOME Program Contract 132009 with Madison Pointe Apartments LP (Ordinance S-52110) - District 4
Description
Request authorization for the City Manager, or his designee, to amend the federal HOME Investment Partnerships (HOME) Program Acquisition and Rehabilitation Loan Agreement, City Contract 132009, with Madison Pointe Apartments LP, an Arizona limited partnership, (the “Owner”) to increase the number of City HOME units from 13 to 18 units and increase the period of affordability by five years for all City HOME units in exchange for a forgiveness of the outstanding interest on the loan up to $800,000. Authorization is also requested for the City Manager, or his designee, to execute all necessary documents. There is no impact to the General Fund.
Report
Summary
City Contract 132009 was executed on September 29, 2011, providing $1,569,000 of federal HOME funds to assist with the development of the 60-unit Madison Pointe Apartments located at 4150 N. 9th Street. The City Contract currently secures 13 City HOME units serving households whose income does not exceed 50 percent of the Area Median Income (AMI).
The Owner is in the process of refinancing this property and has offered to pay the entire principal balance of the HOME loan in the amount of $1,569,000 as well as increase the public benefit by extending the period of affordability by five years from 2053 to 2058 along with providing the City an additional five HOME units (for a total of 18) serving households at or below 50 percent AMI in exchange for forgiveness of the outstanding interest up to $800,000. As the original funding came from federal sources, there is no impact to the General Fund. All loan debt paid will be re-purposed for further affordable housing per the requirements of the original HOME funding source.
Financial Impact
There is no financial impact to the General Fund. HOME is a federally funded program.
Concurrence/Previous Council Action
On May 18, 2011, City Council approved, through Ordinance S-37865, a loan of HOME funds up to $1,569,000 to facilitate the development of the Madison Pointe affordable housing project.
Location
4150 N. 9th Street
Council District: 4
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Housing Department.