BY COUNCILOR GILBERT:
BE IT RESOLVED, that Resolution 05-0641 is hereby amended to authorize an HIF loan agreement in the amount of $150,000, substituting Matterhorn Apartments, LLC in place of The Communities Group as the contracting agency for the Village at Matterhorn project and providing for a leasehold mortgage in favor of the city as security, said agreement substantially in the form of that on file in the office of the city clerk as Public Document No. ___________(a), payable from Fund ____.
FURTHER RESOLVED, that the proper city officials are hereby authorized to enter into a mortgage loan rider substantially in the form of that on file in the office of the city clerk as Public Document No. ____________(b) and to execute such other documents which may be required for the project, subject to review by the city attorney.
STATEMENT OF PURPOSE: Resolution 05-0641, adopted on September 26, 2005, authorized a number of HIF loan agreements, one of which related to the Village at Matterhorn in the amount of $150,000 (the project). Project consists of new construction of 96 units of mixed-income housing and includes 68 tax credit units, 30 of which are HOPE VI units. The resolution named The Communities Group as the contracting agency and required a mortgage lien on the property.
The low-income housing tax credit nature of the project financing requires that the project be accomplished through a newly formed, single purpose entity. Therefore, Matterhorn Apartments, LLC, (Matterhorn) was created for that purpose. It is controlled by The Communities Group through a subsidiary, and is 99.99 percent owned by the tax credit investor. Additionally, the property will be owned by the HRA and Matterhorn will enter into a 75 year lease for the project. Mortgages securing all loans for the project will be in the form of a 75 year leasehold interest on the property.