CITY OF ORLANDO
COUNCIL AGENDA ITEM

Items Types:
Housing 		For Meeting of:
January 22, 2018
District: 4 From:
Contract ID: Document Number:
Exhibits: Yes On File (City Clerk) : Yes Draft Only: No
Grant Received by City?: No
Subject:
Subordination Agreement between the City of Orlando and United Against Poverty, Inc.
Summary:

On November 4, 2013, City Council approved a funding agreement between the City of Orlando and United Against Poverty, Inc., formerly known as Kingdom Harvest, Inc., for $400,000 in Community Development Block Grant (CDBG) funding for building acquisition and expansion of services.  

In addition, on November 16, 2015, City Council approved a funding agreement between the City of Orlando and United Against Poverty, Inc,, formerly known as Kingdom Harvest, Inc., for $130,000 in CDBG funding to rehabilitate and upgrade their facility so they can better serve low-income people with a community food and outreach center.  

The referenced property is subject to a first mortgage with Bank of America; the mortgage has been in place since 2013 and has a balloon payment coming up in 2019.  United Against Poverty, Inc. wishes to refinance with Seacoast National Bank for a 15-year term to eliminate the balloon payment due in 2019 and lower its interest rate.  There will be no equity out as a result of the refinancing.  The City's CDBG mortgage will remain in the same lien position.
Fiscal & Efficiency Data: No Fiscal Impact. 
Recommended Action:
Approve and authorize the Mayor and City Clerk to execute the subordination agreements between the City of Orlando and United Against Poverty, Inc., and all the related documents.  Authorize the Mayor to satisfy the mortgage and release the restrictive covenant upon compliance with the terms of the CDBG agreement and other loan 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: Sonia Carnaval, Housing & Community Development Manager, x3326.
Approved By:

Department Date and Time
Budget Outside Routing Approval 1/10/2018 4:41 PM
Grants 1/10/2018 4:57 PM
City Clerk 1/11/2018 2:03 PM
ATTACHMENTS:
Name: Description: Type:
Subordination_Agree-UAP-City_of_Orlando_400K_Mortgage.pdf Subordination Agreement - 400k Backup Material
Subordination_Agree-UAP-City_of_Orlando_130K_Mortgage.pdf Subordination Agreement - 130k Backup Material
"Enhance the quality of life in the City by delivering public services in a knowledgeable, responsive and financially responsible manner."