07-0591R


RESOLUTION AUTHORIZING A THIRD AMENDMENT TO THE FISCAL YEAR 2005 HOME PROGRAM HOUSING DEVELOPMENT PROJECT PURCHASE/REHABILITATION/ RESALE FOURTH STREET REVITALIZATION AGREEMENT #19864 WITH NEIGHBORHOOD HOUSING SERVICES, EXTENDING THE TERM 12 MONTHS.

BY COUNCILOR STAUBER:

     RESOLVED, that the proper city officials are hereby authorized to enter into a third amendment substantially in the form of the copy on file in the office of the city clerk as Public Document No. ________________ to the HOME program housing development projects purchase/rehabilitation/resale agreement with Neighborhood Housing Services (NHS) in order to extend the term of the agreement to August 31, 2008.


STATEMENT OF PURPOSE:  NHS has developed the east side of Lake Avenue at East Fourth Street into eight newly constructed, for sale condominium units and eight rehabilitated, for sale condominium units. The project, called Lake Superior View condominium project, consists of a total of 16 units.


On April 1, 2005, the city of Duluth entered into a HOME program agreement with NHS for the rehabilitation of a duplex included in the condominium project. NHS has completed the rehabilitation work on the two units and one unit sold to an income qualifying home buyer in July, 2006. NHS is requesting additional time to sell the second unit. The HOME programmatic time limit will have been reached at the end of this 12-month extension. Therefore, NHS will repay HOME funds if this unit has not sold by August 31, 2008.