Title
Resolution to Approve Federal Home Loan Bank Sponsor Loan for West Arbor ($500,000)
Memorandum
The Ann Arbor Housing Commission is redeveloping North Maple Estates located at 655 North Maple. Commission under the Rental Assistance Demonstration (“RAD”) Program. The RAD Program requires the Commission to renovate these properties as part of a conversion from public housing to RAD project-based vouchers.
The West Arbor Development (a/k/a North Maple Estates), which is located at 655 North Maple Road, consisting of apartment units 657-749 or 46 rental units in eleven (11) buildings, has undergone extensive redevelopment over the past eighteen months. the Commission as the sole member of the Ann Arbor Housing Development Corporation has authorized it to act as the sole member of the West Arbor GP, LLC, which is the general partner of the West Arbor Limited Dividend Housing Association Limited Partnership, which has been authorized to act as the Developer of the West Arbor Development.
The Commission received a commitment for the West Arbor Development from the Federal Home Loan Bank/Affordable Housing Program (“FHLB/AHP Program”) of Pittsburgh on December 17, 2015 to provide funding in the amount of Five Hundred Thousand and 00/100 Dollars ($500,000.00) to the West Arbor Development (“FHLB-AHP funding”).
the FHLB-AHP funding has been awarded by the FHLB of Pittsburgh through its member bank, Chase Bank, N.A., National Association, a community development banking association (the “Bank”), which shall provide the FHLB-AHP funding to the Commission. the Sponsor shall in turn provide a Sponsor loan for the same amount to the Partnership, which Sponsor loan shall be memorialized by a Sponsor Mortgage and Note (“Sponsor Loan Documents”) for the FHLB-AHP Program funding to be used for the Project.
Staff
Prepared and Approved by Jennifer Hall, Executive Director, Ann Arbor Housing
Body
WHEREAS, the Ann Arbor Housing Commission is redeveloping its public housing properties under the Rental Assistance Demonstration (“RAD”) Program. The RAD Program requires the Commission to renovate these properties as part of a conversion from public housing to RAD project-based vouchers. The Ann Arbor City Council agreed to, and transferred ownership of the properties to the Commission; and
WHEREAS, the West Arbor Development (a/k/a North Maple Estates), which is located at 655 North Maple Road, consisting of apartment units 657-749 or 46 rental units in eleven (11) buildings, has undergone extensive redevelopment over the past eighteen months; and
WHEREAS, the Commission as the sole member of the Ann Arbor Housing Development Corporation has authorized it to act as the sole member of the West Arbor GP, LLC, which is the general partner of the West Arbor Limited Dividend Housing Association Limited Partnership, which has been authorized to act as the Developer of the West Arbor Development; and
WHEREAS, the Commission received a commitment for the West Arbor Development from the Federal Home Loan Bank/Affordable Housing Program (“FHLB/AHP Program”) of Pittsburgh on December 17, 2015 to provide funding in the amount of Five Hundred Thousand and 00/100 Dollars ($500,000.00) to the West Arbor Development (“FHLB-AHP funding”); and
WHEREAS, the FHLB-AHP funding has been awarded by the FHLB of Pittsburgh through its member bank, Chase Bank, N.A., National Association, a community development banking association (the “Bank”), which shall provide the FHLB-AHP funding to the Commission; and
WHEREAS, as a condition of the FHLB-AHP funding to the Commission as the Sponsor, it shall be required to execute and deliver to the Bank a Note, a Mortgage securing said Note, Allonge to the Note, Pledge and Collateral Assignment of Sponsor Note & Mortgage and the AHP Direct Subsidy Agreement and all other required loan documents of the Bank (“Chase FHLB-AHP Loan Documents”); and
WHEREAS, the Sponsor shall in turn provide a Sponsor loan for the same amount to the Partnership, which Sponsor loan shall be memorialized by a Sponsor Mortgage and Note (“Sponsor Loan Documents”) for the FHLB-AHP Program funding to be used for the Project; and
RESOLVED by the Board of Directors of the Commission that it authorizes the Sponsor Loan be provided to the Partnership for the West Arbor Development; and
RESOLVED by the Board of Directors of the Commission, that the Commission has the power and authority to provide, and Jennifer Hall, the Executive Director of the Commission is hereby authorized to execute and deliver the Chase FHLP-AHP Loan Documents and the Sponsor Loan Documents, and any action taken in connection with said Development in furtherance thereof prior to this Resolution is hereby ratified and affirmed; and
RESOLVED, that in furtherance of the purposes of the Commission, and there being nothing contrary contained in the Bylaws of the Commission, The Commission is authorized to execute and deliver to the Bank, the FHLB-AHP Loan Documents and the Sponsor Loan Documents; and
RESOLVED, that Jennifer Hall, the Executive Director of the Commission be and hereby is authorized and directed on behalf of the Commission at any time after adoption of this Resolution and without further action by or authority or direction from the Board of Directors to deliver to the Bank such further documents as may be required by the Bank in furtherance of any of the above resolutions in such form as may be required by the Bank; and
RESOLVED, that the Bank is authorized to rely on the continuing force and effect of this Resolution until receipt by the Bank at their principal offices of notice in writing from the Commission of any amendments or alterations to these Resolutions.