SUBJECT:
Title
Request Approval of Lincoln Avenue Capital’s (LAC) Request for Marion County to Subordinate its Mortgage to a New First Mortgage and Consent to the Assignment of its Mortgage to Landfair Owner LLC to Preserve Affordable Housing (Budget Impact - Neutral)
Body
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INITIATOR: |
DEPARTMENT: |
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Cheryl Martin, Director |
Community Services |
DESCRIPTION/BACKGROUND:
On March 30, 1998, April 1, 1998, and April 26, 1999, Marion County provided funding to GMN-Landfair, Ltd. to build affordable housing rental units for $450,000 in State Housing Initiatives Partnership (SHIP) funds. LAC is an experienced affordable housing owner, owning over 10,000 affordable housing apartment units throughout the United States, including thirty (30) apartment communities in the State of Florida.
In conjunction with the acquisition and assumption of the SHIP Loan, LAC will expend $200,000 for site improvements and various upgrades to the Property. LAC intends to pursue a refinancing of the NEF Preservation Mortgage Loan Fund I LP loan with HUD that will allow the buyer to finance a larger property renovation, if approved, to include new roofs, exterior painting, replacement of water heaters, and mechanical systems at the end of their useful life as well additional site improvements.
The assignment, assumption, and resubordination of the SHIP loan (to the initial NEF financing as well as the eventual HUD loan) will support and make possible the almost $1,000,000 of capital improvements. This will ensure that Landfair Homes Apartments continues to serve the community with high-quality affordable housing throughout the property’s lifecycle.
BUDGET/IMPACT:
Neutral
RECOMMENDED ACTION:
Recommended action
Motion to approve request and authorize the Chair to execute the Subordination Agreement and the Limited Waiver and Agreement to Transfer and Assignment of SHIP Loan Agreement for Independent Living Assistance.
end