Grand Avenue Economic Community Development Corporation (GAECDC), an approved Community Housing Development Organization (CHDO) for the City of Orlando, has received assistance through the years from the city of Orlando’s HOME Partnership, Community Development Block Grant (CDBG) and the State Housing Incentive Partnership (SHIP) programs for the development of affordable housing. The city has assisted GAECDC with development at Maxwell Place, also referred to as Maxwell Terrace located at 2803 Arlington Street, Orlando, and Maxwell Gardens, located at 4049 South Orange Blossom Trail.
GAECDC has applied to Neighborhood Lending Partners, Inc. to refinance two existing loans ($1,700,000 and $672,917) at Maxwell Place to take advantage of a lower interest rate (from 6% to 5.25%). The new loan will be for $1,760,000 with a 5 year maturity and 25 year amortization. The refinancing will not result in any additional monitoring responsibilities for the City. This refinancing will help GAECDC to continue providing affordable housing at Maxwell Place.
A provision of the new loans is that the Maxwell Gardens property be used as additional collateral. This provision also requires that the Ccity of Orlando subordinate an existing HOME loan of $385,000 for rehabilitation work at Maxwell Gardens under an agreement dated August 14, 2006. The restrictive covenant for this loan is scheduled to be satisfied on September 30, 2017. This request for subordination does not require any additional funding from the City, nor any change to the monitoring responsibilities under the HOME Agreement for Maxwell Gardens.
City staff requests City Council’s approval of GAECDC’s subordination request, and authorization for the Mayor to execute all related documents.