HomeMy WebLinkAbout2010 Resolution No. 084•
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CONTRACT NO, / / ~ -,,)_o /6
RESOLL:T IO:S NO
SER IES r 20 10
A Rl.:SO I lJI 1\J 1\l'PROV l1 GA i •. , , l . E (}I-L REDrI \\Tl II l '. S. 13 .\NK NA rI 01'AL
ASSOC IAT ION ( .S.13A NK) FOR < · ,.000 TO SU PP OR f TIIE AC IWIT IES OF rill·
HOUS I G RE II Al3 1LITATI ON E 'Tt , Ki~E l·UN D AND A r!I OR IZING TII ECITY
MAN AGER TO NEGOT IATE T l llll·l \DDIT IONA L ONF-Yr.AR l:XTF'-IS IONS F R TIii
LI NE F CRE DIT TII A r WIL L NO I 1:iCRF A. I·. Tlll:I OI Al A~IO :ST OF ·1 HI S U NI· OF
REDI T.
WI IEIU AS. Englewood Ci 1y o,mc1I app ro , "d Ordinance 23, Series of 1999. assuming all of
the asset~ an d \iah1\it1cs of th ~ ll .:hahilitation Prog,·am from the Englc,,ood l lou!;i ng Authori ty;
and
WHERE AS, En gle wood Cit)' Counc il upp,,1vcd Ord11rnncc 26. Series of I 999. est abli shing 1hc
,using Rehab ilitation Fund and Ordi,,ancc 31 , Series of 2003. creating the Ci l)' of Englewood
I h1us in g Rchab1hrn 1ion 'E ru crpri sc Fl•.nd: and
\V II EREAS , Englewood CH)' Co uncil also app roved Reso lution 33, Series of 2000. and
Reso luti on ;\'J. 77, Series 2003, and Reso lut io n o. 7'2. Scrii.:s 2006 . au thorizing an agn.:cml!nl
es tab li shin g a lin e of credit fo r th e continuance of th I louc;.mg Rchabilitoti o n fund with three
ad dni onal one-year hn c of (;rccht ex tensions; nnd
WI I FRI· \S. U.S. Dank h;1 s shown nn rntcrc st 111 part1 cip;ni11 g in the progra m with th e Fund :
NO W, TIIEREFORE. fl E ff RESO LVED 13Y T Ii t c t rY co NC IL O FTIIE CIT Y 0 1'
E GI t··,v OD. COi OR 1\DO . TIIAT :
Scctwn I. Englcwoo<I City C11unc1I herch y au th on,.cs the Ci 1y ~lana,:er to sign a new 1111c or
acdit with U.S. B:mk f(1r ,1 tntnl nf$250,0r,O to sup por' the m.:uviti cs of the I lousmg
Rchab il1tat1 011 l·nH:rprisc Fun d .
Seel ion 2. Englewood Cit y Coun ci l hereb y au th ori zes the Ci ty Manager to nego ti ate tcnns for
three addit1 cma l one-year period s so I ng ns th e ex tensions do not increase th e total amou nt of the
line of credit ;u!thorized by thi s Resol ut ion.
ADO PTED AND APPR OVE D this Is • cl ny of November, 2010 .
ATIES T :
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/'·/tvJ:ivU L -{ r 'J
Lou cri sftia A. Ell is, it y Clerk
I, Lou crishia /\. Elli s. ity Clerk fo r~ity of Engl ewood, Col rnclo, h reby certify th e
above is a true copy of Reso luti on No. ~• . Sen es o 1 0 I 0. _ L-1 . . /4'c:: --;tf;Jy .£1 fl{//:_]
/ Loucrishi n /\. Elli s, Ci ty Clerk
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0 NCI L COMM U N I CAT I ON
Dale: Age nd a It em : Subject:
redi t for th e
ovemh I 15, ~010 11 CI Resolu l ion [stablishrng a Lrne o f
I l ousing RehahilihH1on Ente rpris e Fund
l nilialcd By: I Sta ff So urce:
Conununi ty Deve lopmen t Department I larold J. Sutt, Senior Plann er
COUNCIL GOAL AND PREV I OUS OUNCIL A CTI ON
Ci ty Counc il approved Ordinance 23, Series 19 9 assu ming all of the ass ets and liabil rt ies of th e
Rehabi litation Program fr om th e Englewood Hous ing Au t11ori ty. o un cil also approved Resol ut ion 33,
Series of 2000, Reso lution 77, Se ri es o f 2003, and Re oluu o n 72, Ser ie 2006 aut horizing an agreeme nt
es tablishi n , lin es o f c red it for th e co ntin uiln c of the I l o using Rehabi li tat io n Fun d w it h three ad diti onal
o ne-yea r line of credi t ex tens1J ns to be negotia ted.
Also approved was Ordin,1nce 26, Series of 1999 es tab li shi ng the Housing Re habilitation Fund and
Ordinance 3 I, Serie s o f 2001 c rea ting th e City of [nglc" ood H o using Rehabi litati on En terprise Fund .
RECO MMENDED ACTION
To ,1pp roVP a res olu tion •stablishing a new li ne of credi t wi th US Bank for $ ~ 11 UOO to support the
ac tivi l ies o f the I l ouc;ing Rehabilita tio n Ent erprise I und and to au tho ri1 e th e , '\ ' '1a nager o r de~ign ee
to nego tiat e 1\m.>t> adcliti o11cll one-yea r peri ods tha t ,, 111 not 111ue,1~e th e Jmo un t of th lin e.• of cred it.
BACKGRO ND, ANALY SI S, AND ALTERNATIVES I DENTI FIED
Th -Cil y treated the I l m1,.ing Re hilhili lati n Lo,111 Program in 1 q77 to preserve th e existing ho u.,mg
~h1Lk in th e Cit) ,111<1 .1ddrr<;, tilt' prnh lPms of Im, In coml' fanulies with the fin tm cing of miljor repairs.
lht.> Program wao; 1Pred throll gh th e 1-nglv"ood I lou,m g Au thont) 11nt1I early \i;tY() ,dh.:'11 th1..•
(1I) l'',tJI 11!,hed th .I•1 g r!l'11,1h1ht,1Imn r 1111d .ind ,,..,~umt•d ,111 of th , .1!J<,1..•1, .mcl h.1bilit1e~ of the
Rl'h ,,hilitation Pro~1,1: ·
A lllJJOI c. o mp one nt o l 1ht• ,uu L')"' ot : ,c' progr,1111 ""tlw !..Uppor t Iro111 tlw b.111k111r, c. om111un11 y. Sin e.. •
1'177 va1 im 1.., lint •c-; ol trl'dit tot,11i11 g ovl'I S7 .1 nullmn h,1\l' lwt:'n e,tend ed to lhc I uncl frnm v,1nn u)
loca l b,mks.
The 20 10 request 1s for ,111 ;idclit ional $2SO,OOO guid,uice line fr om US B.i nk to be cfo,hur!..cd for one
)c,1r to ~upport th e 1t:-h,1h prog,.1111. Tbis ,1 111 mmt is in addi ti on to tlw n irr •n t ou t~tJ nding dl'bt owed 10
u~ Bank 0 1 i.80:?,s--o. In .idcli11 on, $6Bn ,ooq IS ov .. ecl 10 \/Pctr,l Bank tro m pa!.-1 Imes ol uectll. The
Vt•t tr ,, B,mk \mr of uecht h,1 -. t>,p il d .
The propose d ini ti al fix ed int eres t rat e o ffered bl' US Bank is 3.18%. The in teres t ra te IS fixed, bt1t new •
adva nces fr o m th e gt1ida nce lin e are sub ject to q.iarterl y adju stmen ts base d o n a fo rmula usi ng th e
prim e rat e. All loa ns are approved at a fi xe d ra te to b repitid ove r a 20· ear 111axi murn ter m.
A dditional o ne-yea r guida nce lin e p eri o ds w ill need to be negotiat ed annt1a lll' bl' th e ity Manager or
des ignee for th e nex t thr ee ye ars 1n ord er to co nti nue th e program at its curr ent le vel of se rvice.
A t th e completi on o f each rehabili tati o n p rojec t, th e indi vidual loa n is sec t1red by a Promissory Nol e
and D ee d ofTrus t (usu all y a second m mtgage) record ed o n th e ho meowne r's p roperty. The Ci ty
Mana ge r's design ee (the [\irec1or of Co mmunity Deve lopm ent) sign a no te from ti, Fund to the bank
plu s iss t1 PS tH1 Assig nm ent of D ee d th reby full y co ll aterali zin g each loan usin g the homeow ner's
p roperty as secmity. Each ho meown er makes m onthl y pa )'men ts to th e Fund and th e Fund then pass es
th ese paymen ts thro ugh l o th e bank. A n add iti o nal coll at ral account eq ual to 5% o f th e o utstanding
balance o f the am o unt drawn fr o m th e guidance lin e is r qu ired to b e h eld o n dep osi t at US Ba nk. Th e
ct1rr e11 1 account balance is $39,099 an d Ft1nd 46 is available to ft1nd th e accot1 nt as nee ded .
FIN ANCIAL IMPACT
Exis ting Community D eve lo pment staff ad ministers th e H m,sin g Rehabilitatio n Fund . No ad diti onal
administr ative mo nies w ill b e req uired . Th e o utstanding debt of th e H o using Rehabi litati o n r 1d
will be in creased by th e amo unt of th e guidance lin e used, up to a maximum addi ti onal a1n ount of
$250,000, ,d,ich w ill tak e th e to tal US Bank debt up to $1,05 2,570.
U ST OF ATT AC HM EN TS
Reso lut ion
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