Loading...
HomeMy WebLinkAbout2001-07-23 01-299 ORDERItem me.010199 Date: 3uly 23, 2001 Item/Subject: Approving Community Development Residential Rehabilitation Loans - Thomas Hatch Blo& Limited Partnership Responsible Department Community and Economic Development This Order would authorize Community Development Residential Rehabilitation Loans to the Thomas Hatch Block United Partnership to enable the rehabilitation of eight apartments and 1,690 square feet of commercial space a[ 72-00 Columbia Street. As proposed, funding for the project, with an estimated rest of $397,692, would Involve a combination of owner equity and financing provided by Bangor Savings Bank, Penquis CAP CDFI (Community Development Hnance Institution) and Maine Slate Housing Authority deferred loan funds under the MSHA Maine Odes Service Center Community Task Fmce Program matdeW with loans under the City's Communn Development Program. The work will be performed by House Revivers, owned by Bob and Smanne Kelly, which has performed three other rehadlRation projects in the downtown on Hammond Street including the Hammond Street Courtyard. ,)epartmem "d Manager's Com^m^entsr7l. Fore etM pD y—�� Wf ,( �te_ttr>r�nv.nda_ s.p,p.mb.Q K City Manager Amaral Inform rtiam T Finance DiraMr Legal Approval: Solidtor Introduced for X Passage _First Reading Page 1 of 1 Referral 01-299 '- Assilped N Councilor Vardm4s July 23, 2001 \9 CITY OF BANGOR oc (TITLE.) Order, Approving Community Development Residential Rehabilitation Loans - Thomas Hatch Block Limited Partnership By Ne CI[y Counod ofMe atyOfBMW. oRDeheD,l T the Director of Community and Economic Development is hereby authorized to make Community Development Residential Rehabilitation Loans to the Thomas Hatch Black, L.P. for the rehabilitation of 72-80 Columbia Street, Bangor, under the fallowing terms and conditbns: 1. A loan not to exceed $51,000, at an Interest rate of 6% and a term of 20 years, seared by a mortgage subordinate only to (1) a 1x mortgage by a private lender securing a loan not exceeding $51,000 at an Interest rate not exceeding 9% for a term or amort ontion schedule of not less than 20 years, (2) a 2nd mortgage by the Maine State Housing Minority searing a loan of not lets than $60,000, land a[ 0% Interest for a term of 20 years with payments deferred for 20 years, and (3) a 3i° mortgage by a Community Development Finance Institution (CDFI) securing a loan nor to exceed $61,000 at an interest ale not to exceed 6%for a term or amortization schedule of not less than 20 years; and 2. A second loan matching funds provided by the Maine State Housing Authority under the Maine Cities Service Center Community Task Force program to the Thomas Halcth Block, L.P. for the rehabllitadon of 72-80 Columba Street, in an amount not to exceed $61,000, under terms similar to those for funds loarred by MSHA, to Include D% Interest, and a term of 20 years with no payments due during the term so lag as City and MSHA tenant and other ban requirements are complied with, and wdh 1/20w of the outstanding principal forgiven In each year that City and MSHA tenant and other Ian requirements are complied with, secured by a mortgage subordinate to the mortgages referred to in 1. above; and 3. That all loan funds be used only for the rehabilitation of the residential portion of 72-80 Columbia SbveC and e. That the disbursement and use of the Ian funds be in compliance with the requirements of the Community Development Block Gant Program and the Citys Community Development Residential Rehabilitation Loan Program; and S. That the Director of Community and Economic Development and/or City SoOdmr may add such additional terms and conditions as they may consider necessary or appropriate to protea the OWS interest; and 6. Subject to the owner§ equity investment in the project of not less than $65,000; and 01-299 ]. Subject to the Borrower obtain g (1) (mate lender financing not to exceed $51,000 at an interest rate not exceeding 9% for a term or amortizatlon schedule of not less than 20 years, (2) a Maine State Housing Authority loan of not less than $60,000, loaned a[ 0% interest for a term of 20 years with payments defamed for 20 years, and (3) a Community Development Finance Institution (CDFI) loan not to exceed $61,000 at an interest rate not W exceed 6% for a tam or amortuation schedule of not less than 20 years, which, together with owner equity Investment and Cry financing shall provide funding for the total estimated projed cost of $397,692; and S. That all loan documents be in a final Poem approved by the City Solcitor or Assistant City Solicitor; and 9. That the Business and Economic Development Committee is hereby authorized to consider and approve any amendments to the above approved terms and conditions m cin WV9CIL {]g3{ July 23. 2001 i 01-299Korim Kam aoa seooaaaa 1 for PmeaKe ORDER Paas a ntlp Appravivg Cmuvi[y Deval"s L.00- Keaiaearial %ehabiliratim Loma - CI CLBBR AWWM to fU4R/��1A�p1