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Home My WebLink About2005 Resolution No. 079• • • RESOLU'flON NO. Jj_ SER IES OF 2005 A RESOLUTION AUTHORJZING THE APPLICATION FOR A LOAN FROM COLONIAL BA NK TO THE CITY OF ENGLEWOOD , COLORADO TO FUND THE HOUSING REI-IABILITATIO ENTERPRISE FUND. WHEREAS , the City Counci l of the Ci ty of Eng lewood , Co lorad o created the Eng lewood Hou sin g Rehabilitation Loa n Program in 1977 , to pre serve the exis ting hou sing stock in the City and to address the problem s of low•income families with the fin ancin g of major repairs has approved re so lution s to apply for funding to support the Housing Rehabilitation Progrnm since 1977; and WHEREAS, the Englewood City Council approved Ordinance 23, Series of 1999, assuming all of the asse ts and liabilities of the Rehabilitation Program from the Englewood I-lou sing Authority; and WHEREAS , the Englewood City Counci l approved Ordinance 26, Series of 1999 , esta bli shin g th e Housing Rehabilitation Fund and Ordinance 31, Series of 2003, creating the City of Englewood Housing Rehabi litation Enterprise Fund to operate nnd support the I-lousing Rehab Loan Program; and WHEREAS, the Englewood City Council approved Resolution 33, of2000 and Resolution No. 77 of2003 authorizing agreements which established a line of credit with Vectra Bank for lhe continuance of the Housing Rehabilitation Fund ; and "!rlER EAS, the Englewood City Council approved Re so luti on No. 47, 2005, authorizi11g an applic,tion for a million do ll ar line of credit with Mile 1-ligh Housing Fund; and WHEREAS , to facilitate a faster approval process with Mil e High Housing Fund it was decided to decrease the initia l loan request from a milli on to $500 ,000; and WHEREAS , Mile High Housing Fund Loan Committee approved the loa n on Jul y 27, 2005 but with condition s that did not entirely meet the Program's needs ; and WHEREAS. the Englewood City Council approved Re so lution No . 75 , Series of 2005, authorizing a loa n with Co lonial ; and WHER,AS. the Englewood City Co uncil approved Counci l Bill :--lo. 42, Series of 2005, on first reading authorizing the purchase of 2394 West Wes ley A venue ; and WHEREAS, the passage of this Resolution approves su bmitt al of an application for a loan with Colonia l Bank for $410.000 to supp ort the operating activities of the I-lou sing Rehabilitation Enterprise Fund and to fund the acquisition of2394 West We sley A, ,o,,e; NOW, THEREFORE , BE IT RESOLVED BY THE CITY COUNC IL OF THE CITY OF ENGLEWOOD, COLORDO, THAT : Section I . The City Counci l of the Ci ty of Englewood hereby authorizes app lication for a loa n for th e Englewood Housing Rehabilitation Enterprise Fund for the purpo se of funding the acq uisition of2394 We st We sley Ave nu e and the operating activities ofFund . Section 2. The Mayo r and City Clerk arc hereby authori zed 10 sign and auest all necess ary forms, docum ents, assurances and ce nifications for the loan with Co lonial Bank of $410 ,000 fo r the Englewood Housing Rehabilitati on Enterprise Fund . ADOPTED AND APPROVED this 11• day of October, 2005;, I, Loucrishia A. Ellis , City Cl erk for the Ci ty ofEnglewood, Colorado, hereby certify the above is a true copy of Resolution No . .'.1.j_, Serie s of 2005 . • • • • • • COUNCIL COMMUNICATION Date : Agend a Item: Subject : October 1 7, 2005 11 Ci Reso lut ion to Apply fo r tl Loan fo r th e Housing Re habili tatio n ent erprise Fund Initiated By: I Staff Source: Com mu nit y Developm en t D epartm ent Ja net Grim me tt , H o usi ng Fina nce Sp ec iali st COUNCIL GOAL AND PREVIOUS COUNCIL ACTION City Coun c il approved O rdin ance 2 3, Se ri es 1999 ass uming all of th e asse ts and li abilities of th e Rehabil itati on Pr og ram fr o m th e Engl ewood H o usin g A uth ority. Also approved was Ordinance 26 , Se ri es of 1999 es tablishin g th e H ou sin g Rehabilitati on Fund and Ordinance 3 1, Seri es of 2003 crea tin g th e City of En glewood Hou si n g Reh ab 'litation Ent erpr ise Fund . Coun c il approve d Reso luti o n 33, Se r ies of 2000 and Reso luti on 77, Se ri es of 2003 auth ori zing an ag ree m ent es tablishin g a lin e of c redit w ith Vec tra Bank fo r th e continu ance of th e H ousing Rehab ili tati on Fund . Coun c il approve d Reso luti on 4 7, Series of 2005, au th orizin g an appli ca ti o n fo r a lin e of c redit w ith Mile High H ousin g Fund and approved Reso lution 75 , Seri es of 2005, auth o ri zing a loa n w ith Col oni al Bank. Coun c il ap proved Counc il Bill No. 42 on fi rs t rea din g to approve an ordin ance to p urchase 23 94 West W es ley Ave nu e. RECOMMENDED ACTION Recomm en da ti on from th e Co mmunity D eve lopm ent D epart ment to ap prove a Reso l uti o n authorizi ng th e Cit y to apply fo r loa n wi th Coloni al Ban k fo r $4 10,000 to sup p ort th e ope rating ac ti viti es of th e H ousi ng Rehabilitation Enterprise Fund and to fund th e acq uisiti on of 2394 Wes t Wes ley Ave nu e. BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED Th e City crea ted the H o usin g Re '1abilitati on Loan Program in 1977 to p rese rve the exis tin g housing stock in th e Ci ty and to address tne problems of low-incom e fam ilies w ith th e fi nanci ng of major rep ai rs. Th e Pr ogram was administered thr o u gh th e En glewood Housin g A utho rity until ea rl y ·1999 w h en th e Ci ty es tablish ed th e H ousin g Rehabilitati on Fund (th e Fund) and ass um ed all of th e asse ts and li abili tie s of th e Rehabil itati on Program . Th e Fund was es tablished to o p erate and support the H o usi ng Re hab Loa n Program . Th e Fun d is ma nage d as a revolvi ng fund for housing rehab ilitati on and developmen t w ith th e goa l of p reservi ng th e p rin ci pl e w hile improvi n g th e ho usin g stock. One o( the fun c tions o f th e Fund is to rede em properti es th at have go ne thro ugh th e fo recl os ure process. Three properties hav e b ee n redee med fr o m for scl os ure by usi ng cas h fr om th e Fund and a fo urth property w as redee med using a l oa n fr om Colonial Bank. All of th ese properti es are currentl y li sted for ;a le. U ntil th e properti es are so ld, th e Fund does no t ha ve th e cas h in th e account to continu e th e day-to-day operati o ns of the H ousing Rehab Pr ogram an d l o conl inu e support of th e partn ership with A rapahoe Commu,,i ty Coll ege's Arapahoe/Do uglas Ca ree r and Tec hnica l Sc hool (ACTS ). Th e loa n fr o m Mile High H ousin g Fund approve d in Jun e, 2005 is limi ted to redeem ing pro~e rti es fro m fo recl os ur e. The pri or Co lonial Bank loa n was approve d to redee m 4165 So uth W :; :nglon Stree t and l o cove r th e associated costs o f for eclosures. Th ose loa ns are not available 10 1 :ny other use. A new loan is nee ded to suppo rt and maintain the norro1al da y-t o-day o perati ons of th e H ousing Rehabilitati on Program and th e contin ued cons.ru cti o n of 2350 So uth Z uni Stre et (th e current ACTS site). Funds are also needed to purchase 2394 Wes t Wesley Ave nu e that will be subdivided into addi tional sit es fo r the ACTS par tnership. S1 ,ff has re searc hed l oa n options w ith th e local banking com munity. After dis cuss ing the program nee ds w ith Colonial Bank, 350 1 So uth Broad way, th ey offered a loan product that m ee ts the Fund 's needs an d th e contrac t deadlin e of November 15 to purchase 2394 West Wesley Avenue. Th e ri sk s c,f th e loan wo uld be ·,upport ed sole ly by the Housing Re habili tati o n Fund and securer: by three o ( th e properti es cur •en tl y listed for sa le. Th e loa n w ill be full y repaid to Colonial Bank w hen the homes are sold. FINANC IAL IMPACT Exis tin g Community Deve lopment staff adm inisters th e Hous in g Rehabilitati on Fund. No additional mo ni es will be req uired for ad minis trati on of th e li ne of credit. Th e Ho using Rehabilitation Fund will ass um e all ri sks assoc iated w ith th e lin e of c red it. LI ST OF ATTAC HMEN TS Reso lution • • •