Staff recommends approval of the Memorandum of Understanding for the bridge loan funding from Lake County Community Services, Housing & Community Development, to begin the first phase of the renovation project for Kristen Court Apartments.
To begin the conversion of the Kristen Court apartments into an affordable Townhome Development consisting of 56 units and one community resource center, Lake County has agreed to offer the Bridge Loan funding. The Bridge Loan will provide approximately $28,600 per unit which equals a funding total of $429,000 for the project’s first phase.
The Bridge Loan funding will be in the form of a zero percent interest loan which will be repaid as the units are sold. The Bridge Loan funds are only to be used on hard costs such as building rehabilitation or infrastructure. The City of Leesburg will be responsible for repayment of all amounts due no later than thirty-six months (three years) after the start of the fiscal year in which the funds were distributed.
1. Approve the Memorandum of Understanding as outlined; or
2. Such alternative action as the Commission may deem appropriate.
Repayment of the Bridge Loan funding of $429,000 will be repaid from the sale of the 15 units.
Leesburg is required to repay the County all amounts borrowed no later than thirty-six months after the start of the fiscal year in which the funds were distributed. If any part of the property is sold to another entity before construction or rehabilitation is complete, the portion of the loan that has not been repaid will be due and payable as SHIP program income within 30 days of the transfer of title.
Department: _Housing & Economic Development_____________________
Prepared by: _Yolanda Presley_____________________
Attachments: Yes__x__ No ______
Advertised: ____Not Required ______
Attorney Review : Yes_x__ No ____
Reviewed by: Dept. Head __Kenneth Thomas______
Finance Dept. _______JB_________
Deputy C.M. _______EFS_________
City Manager ___________________
Account No. __554-0000-337-5410_
Project No. ___________________
WF No. ______________________
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A MEMORANDUM OF UNDERSTANDING FOR BRIDGE LOAN FUNDING FROM LAKE COUNTY COMMUNITY SERVICES, HOUSING & COMMUNITY DEVELOPMENT DEPARTMENT TO BEGAN THE RENOVATIONS ON KRISTEN COURT APARTMENTS; AND PROVIDING AN EFFECTIVE DATE.
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:
THAT the Mayor and City Clerk are hereby authorized to execute an Memorandum of Understanding with Lake County Community Services, Housing & Community Development Department, whose address is P.O. Box 7800 Tavares, Florida 32778-7800, for funding of the Kristen Court renovation project.
THAT this resolution shall become effective immediately.
PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the 11th day of August 2008.
Mayor John H. Christian
City Clerk Betty Richardson