HomeMy WebLinkAbout2021-04-12 21-144 Order
04/12/202121-144
04/12/2021
21-144
Community & Economic Development
Order
041-107
Title, Order
Authorizing Community Development Block Grant Rehabilitation Loan to Bruce and Deborah Hamel for 72-74
Center Street
This Order would authorize a Community Development Block Grant residential rehabilitation investor
loan in the amount of $125,000 to Bruce and Deborah Hamel for rehabilitation of the dilapidated
vacant six-unit building located at 72-74 Center Street. The goals of the Residential Rehabilitation
Investor Loan Program are to assist owners of multi-family housing, up to seven units, with repairs
needed to bring the units up to housing quality and code standards, provided the units are rented to
low- to moderate-income tenants at affordable fair market rents, established by the Housing and
Urban Development Department (HUD), for a period of four years.
The Hamels will make needed repairs to the roof, the electrical, heating, and plumbing systems
upgrades, as well as energy efficiency improvements, including all new insulation, windows and
doors throughout the entire building. Where the Hamels agree to maintain the affordability of all six
units for low- to moderate-income tenants, they qualify for a maximum loan amount of $125,000
over a 20 year period at an interest rate set at time of closing per the City's CDBG policy.
This item was reviewed and recommended for approval by the Business and Economic Development
Committee at its April 6th, 2021 meeting.
This order addresses the Council goal of improving quality and quantity of housing to meet demand
for workforce housing, life cycle housing, and supportive housing within the community.
Business & Economic Development Committee
04/06/2021
Recommend for passage
50
Staff recommends approval
Consent
04/12/202121-144
CITY OF BANGOR ORDER
04/12/2021
21-144
Fournier
Authorizing Community Development Block Grant Rehabilitation Loan to Bruce and Deborah Hamel for 72-74
Center Street
WHEREAS, Bruce and Deborah Hamel have applied for a Community Development Block Grant Residential
Rehabilitation Investor Loan in the amount of $125,000; and
WHEREAS, funding shall rehabilitate a vacant and placarded multi-family home located at 72-74 Center
Street; and
WHEREAS; the building needs roofing, mechanical system upgrades and energy efficiency upgrades to pass
housing quality and code standards; and
WHEREAS, the Hamels agree to make all six units affordable to low- to moderate-income tenants for a period
of up to four (4) years;
BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR, THAT
The City Manager is hereby authorized to execute the necessary documents to enter into an agreement with
Bruce and Deborah Hamel for a Residential Rehabilitation Investor Loan in the amount of $125,000 for 20
years with an interest rate established at time of closing, including provision of the affordability of the units
for not less than four years. Community Development will prepare all the necessary loan documents to be
executed and file a secured mortgage with Penobscot Registry of Deeds, and all documents shall be in a final
form approved by the City Solicitor or Assistant City Solicitor.
IN CITY COUNCIL
APRIL 12,2021
CO 21-144
Motion made and seconded for Passage of Consent Agenda
Vote: 9—0
Councilors Voting Yes: Davitt,Dubay,Fournier,Hawes,Nichols, Okafor, Schaefer, Sprague, Tremble
Councilors Voting No: None
Passed
CIT LE