Title
Resolution to Approve Permanent Loan from Cinnaire for River Run Development ($500,000)
Memorandum
The Ann Arbor Housing Commission (AAHC) has been approved by HUD to convert its properties to project based vouchers under the Rental Assistance Demonstration (RAD) program. The AAHC has secured public and private funding to rehabilitate its properties at Baker Commons, Hikone and Green-Baxter Court (River Run).
The AAHC formed a Michigan limited liability company, River Run Ann Arbor, LLC on July 9, 2013, and pursuant to its and pursuant to its amended Operating Agreement executed on August 27, 2014, the AAHDC is its sole Managing Member. This entity, River Run Ann Arbor, LLC was formed for the sole purpose of becoming the General Partner in the River Run Ann Arbor Limited Dividend Housing Association Limited Partnership (the "River Run Partnership").
The AAHC formed a Michigan limited partnership, River Run Partnership with River Run Ann Arbor, LLC as the General Partner by execution of a Certificate of Limited Partnership dated July 10, 2013 and a Limited Partnership Agreement dated July 10, 2013 to acquire, develop, finance, own, maintain, operate or otherwise redevelop property located at 106 Packard (Baker Commons), 2706-2760 Hikone (Hikone) and 1701-1747 Green Rd. (Green-Baxter Court) to provide 116 units of affordable housing to be known as the River Run Development in Ann Arbor, Michigan ("the River Run Development").
The AAHC is the Management Agent for the River Run Development and entered into a ground lease with the River Run Partnership pursuant to the redevelopment of the properties.
On September 11, 2014 the Partnership received a forward commitment from the CFIC in the amount of Five Hundred Thousand and 00/100 Dollars ($500,000.00) as a permanent loan ("CFIC Loan") and as of August 2016, that permanent loan shall be provided by Cinnaire. As a condition of the Cinnaire Loan, the Commission shall be required execute and deliver to ...
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