To: Dr. Beverly Brown, Community & Economic Development Committee Chairperson
From: Derek Bradshaw, Director
title
RE: Rosewood Park HOME Investment Partnerships Contract Amendment
recommendation
BOARD ACTION REQUESTED:
The Allocation Committee is recommending approval of the contract Amendment with the Shelter of Flint for the Rosewood Park Apartments as described below and requesting Genesee County Board Chairperson, James Avery to sign the contract amendment.
BACKGROUND:
Rosewood Park Limited Dividend Housing Association Limited Partnership, owned by the Shelter of Flint, received $850,000 of Genesee County HOME Investment Partnerships funding in 2001 to assist with the construction of Rosewood Park Apartments. This property has 120 units of affordable housing located at 7028 Rosewood Drive, Mt Morris, Michigan. Repayment of $850,000 plus 1/2% interest is due in full with payments to repay beginning this year. Shelter of Flint has an additional mortgage on the property with another lender. The Shelter of Flint would like to refinance the property and keep the property as affordable housing.
DISCUSSION:
Shelter of Flint is requesting that Genesee County amend the current contract which will allow them time to refinance and begin making payments that will not jeopardize the stability of the property. They are proposing repayment of 50% of the HOME mortgage plus 1/2% interest accrued to date ($470,274.31). The balance of the mortgage will be forgiven which will allow this property to continue to operate and maintain stability. This also will put the terms of the contract in line with terms of current Genesee County development deals. Payments of the balance of the loan will begin immediately to the County on an annual basis. Payments of the loan will be at a 20-year amortization with a 5-year term at which point the loan will be refinanced. The current lien on the property will remain until the loan is paid in full. This property is currently well mai...
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