BY COUNCILOR GILBERT:
WHEREAS, the city of Duluth is an entitlement community and is eligible to receive CDBG funding; and
WHEREAS, the city is an entitlement entity and has the ability to make application for Section 108 loan guarantee funds; and
WHEREAS, the city under the Section 108 program has the authority to pledge future entitlement grants to guarantee the repayment of any loan funds not repaid by participation projects; and
WHEREAS, the city applied to HUD for funds available through HUD’s Section 108 loan guarantee program to provide financial assistance to certain rental housing development projects; and
WHEREAS, HUD has accepted said application and desires to provide said Section 108 loan guarantee program funding to the city.
NOW, THEREFORE, BE IT RESOLVED, that the mayor and the city clerk are hereby authorized to enter into a contract with HUD for loan guarantee assistance under Section 108 and to execute the variable/fixed rate note substantially in the form of those on file in the office of the city clerk as Public Document No. __________ relating to the Section 108 loan guarantee program.
FURTHER RESOLVED, that the proper city officials are hereby authorized to execute any additional documents necessary to effectuate the Section 108 loan guarantee program transaction with HUD.
STATEMENT OF PURPOSE: The city previously authorized application to HUD for Section 108 loan guarantee program funding in order to provide financial assistance for certain rental housing development projects including Village Place. HUD has been reviewing the city’s Section 108 loan documents with Village Place and is ready to give its approval to proceed with the transaction. The purpose of this resolution is to complete all city council actions necessary to enter into the Section 108 loan transaction with HUD and Village Place.