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 ½% 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 ½% 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 maintained and fully leased-up. As the stability of affordable housing in Genesee County is a great need, and the partial repayment of the loan does not hinder the HOME program, the Allocation Committee recommends the approval to amend the contract of the Rosewood Park property.
IMPACT ON HUMAN RESOURCES:
No impact on Human Resources.
IMPACT ON BUDGET:
HUD grant funds, no impact on general funds.
IMPACT ON FACILITIES:
No impact on facilities.
IMPACT ON TECHNOLOGY:
No impact on technology.
CONFORMITY TO COUNTY PRIORITIES:
To meet Genesee County’s priority of healthy, livable, and safe communities, HOME Investment Partnership program projects improve safety, livability, and accessibility, particularly for low-to-moderate income households.
resolution
TO THE HONORABLE CHAIRPERSON AND MEMBERS OF THE GENESEE COUNTY BOARD OF COMMISSIONERS, GENESEE COUNTY, MICHIGAN
LADIES AND GENTLEMEN:
BE IT RESOLVED, by this Board of County Commissioners of Genesee County, Michigan, that the request by the Director of Planning to authorize amending the Subrecipient Agreement between Genesee County and Shelter of Flint (Rosewood Park Apartments), for the purpose of reducing the HOME mortgage balance from $850,000 to 50% plus ½% interest accrued to date ($470,274.31) to allow this property to continue to operate and maintain stability as more fully detailed in the memorandum request, is approved (a copy of the memorandum request and supporting documentation being on file with the official records of the July 17, 2024 meeting of the Community and Economic Development Committee of the Board), and the Chairperson of this Board is authorized to execute the agreement amendment on behalf of Genesee County.