On January 8, 2018, City Council approved a funding agreement between the City of Orlando and the Future Leaders Community Development Corporation (FLCDC) providing $335,976 in HOME Partnership funds, plus the conveyance of two vacant lots located at 811 and 822 McFall Avenue, Orlando, FL 32805 to FLCDC to construct two homes. The estimated value of each lot was $7,000 per the property appraiser’s records. Pursuant to the Agreement, a promissory note for $349,976 was executed by FLCDC and the City placed a lien for the Mortgage amount on the property. FLCDC’s contribution to the project is being funded with a loan from Valley National Bank (VNB). VNB is requiring the City subordinate its lien position in favor of its loan.  Due to the lien position, in the unlikely event FLCDC defaults, or if the property has to be liquidated to repay the funding source, it is doubtful that the City will be able to recover its investment. In such a situation, the City would be responsible for any repayments to HUD.

Approve and authorize the Mayor and City Clerk to execute the subordination agreement between the City of Orlando, VNB, and FLCDC, and all related documents.