Title
Authorization to Amend Federal HOME Program Contract No. 125936 between the City of Phoenix and Coral Pointe Apartments LLLP (Ordinance S-50100)
Description
Request for City Council to grant authorization for the City Manager, or his designee, to amend the federal HOME Investment Partnerships Program (HOME) Acquisition and Rehabilitation Loan Agreement, City Contract No. 125936, between the City of Phoenix and Coral Pointe Apartments LLLP, an Arizona limited liability limited partnership, (the “Owner”), to increase the number of City HOME units to 13 units and increase the period of affordability by five years in exchange for a forgiveness of the outstanding interest on the loan up to $710,000. Further request to authorize the City Manager, or his designee, to execute all necessary documents. There is no impact to the General Fund.
Report
Summary
City Contract No. 125936, in the original amount of $1,178,000 of federal HOME funds, was executed on May 15, 2009, to assist with the development of the 68-unit Topaz Pointe Apartments (formerly Coral Pointe) located at 2140 E. Broadway Road. The Loan Agreement currently secures ten City HOME units serving households whose income does not exceed 50 percent of the Area Median Income.
The Owner is in the process of refinancing this property and has offered to pay off the entire principal balance of the loan as well as increase the public benefit by extending the period of affordability by five years to 2046 along with providing the City an additional three HOME units (for a total of thirteen) in exchange for a forgiveness of the outstanding interest up to $710,000. As the original funding came from federal sources, there is no impact on the General Fund. All recaptured debt will be repurposed for further affordable housing per the requirements of the original funding source.
Financial Impact
There is no financial impact to the General Fund.
Location
2140 E. Broadway Road
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Housing Department.