Title
Resolution to Approve a contingency loan of $125,000 to Maple Towers Ann Arbor LDHA, LP and $125,000 to River Run Ann Arbor LDHA, LP
Memorandum
The attached budgets are the current budgets for Maple Towers and River Run which are scheduled to close in July 2015. There is a projected gap of $125,000 for each project, contingent on several factors including the final construction and soft costs and whether the AAHC is able to successfully secure funding from the Federal Home Loan Bank. These budgets are based on quotes from contractors, which are subject to change until contracts are executed.
The AAHC has Capital Fund Program grant funds that are currently allocated toward RAD conversion projects in the amount of $1,168,000 to be used on any RAD project, as needed. This request for a contingency loan to the project will not have a negative impact on the ability to fund future projects but it will enable the Maple Tower and River Run projects to close. The term of the loans will be 20-year loans, with an interest rate that will not exceed 1% to be paid from cash-flow.
Staff
Jennifer Hall, Executive Director, Ann Arbor Housing Commission
Body
WHEREAS, the Ann Arbor Housing Commission has been approved by HUD to convert its public housing properties to project-based vouchers under the Rental Assistance Demonstration Program; and
WHEREAS, the Commission has secured funding in the amount of $13,590,339 for River Run, leaving a gap of $125,000; and
WHEREAS, the Commission has secured funding in the amount of $15,647,926 for Maple Tower, leaving a gap of $125,000; and
WHEREAS, The Commission has Capital Fund Program grants in the amount of $1,168,000 to be used on any RAD project, as needed; and
RESOLVED, That the Ann Arbor Housing Commission Board authorizes loans in the amount of $125,000 to River Run Ann Arbor LDHA, LP and $125,000 to Maple Tower Ann Arbor LDHA, LP for the redevelopment of River Run and Maple Tower projects with ...
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