CITY OF ORLANDO
COUNCIL AGENDA ITEM


Items Types:
Housing
For Meeting of:
February 29, 2016
District: ALL From:
Contract ID: Document Number:
Exhibits: Yes On File (City Clerk) : Yes Draft Only: No
Grant Received by City?: No

Subject:
Subordination Agreement for Maxwell Gardens between the City of Orlando and Grand Avenue Economic Community Development Corporationi

Summary:

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.


Fiscal & Efficiency Data: No fiscal Impact

Recommended Action:
Approval of GAECDC’s subordination request for Maxwell Gardens, and authorization for the Mayor to execute all related documents.
 


Agenda Item attachment(s) on file in the City Clerks Office.

Note: All agenda items must be in the City Clerk's office by Noon Friday, six(6) business days prior to the regular Monday City Council meeting.

Contact: David E Medley, Housing and Community Development, x2395
Approved By:

Department Date and Time
Budget Outside Routing Approval 2/19/2016 5:08 PM
City Clerk 2/19/2016 5:17 PM

ATTACHMENTS:
Name: Description: Type:
Maxwell_Gardens_subordination_document.docx Maxwell Gardens Subordination Backup Material

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