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RESOLUTION AUTHORIZING PROPER CITY OFFICIALS TO DISCHARGE $108,500 IN HOME PROGRAM LOAN DEBT PLUS ACCRUED INTEREST OWED BY MPA LIMITED PARTNERS II LIMITED PARTNERSHIP.
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CITY PROPOSAL:
WHEREAS, MPA Limited Partners II Limited Partnership entered into a loan agreement on April 26, 1996 for use of HUD HOME program loan funds in the amount of $108,500 for rehabilitation of Memorial Park Apartments; and
WHEREAS, Memorial Park Apartments, located at 605 N Central Avenue, Duluth MN, as managed by Center City Community Housing Organization, provides 39 units of supportive housing in Duluth; and
WHEREAS, capital improvement work is presently needed on site that exceeds the buildings value.
THEREFORE, BE IT RESOLVED, that the proper city officials are hereby authorized to discharge $108,500 in HOME program loan debt plus accrued interest of approximately $30,000 owed by MPA Limited Partners II Limited Partnership to provide opportunity to advance construction of a new affordable apartment building nearby to preserve affordable units in the community.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes proper city officials to forgive $108,500 in HOME program loan debt plus accrued interest owed by MPA Limited Partners II Limited Partnership as managed by Center City Community Housing Organization. The loan receivable is currently recorded in the City’s Home Investment Partnerships Program special revenue fund.
The City of Duluth and MPA Limited Partners II Limited Partnership entered into a loan agreement (city contract #17641) on April 26, 1996 for HUD HOME program funds to rehabilitate Memorial Park Apartments, a 39-unit supportive housing complex managed by Center City Community Housing. Since the improvements were made approximately 26 years ago, significant capital improvements are needed that prove costlier than the buildings current value. The discharge of this debt will allow Center City to seek funding from Minnesota Housing Finance Agency (MHFA) to construct a new affordable project nearby on Wadena Street and N 52nd Avenue West. Center City currently has first option to purchase the site from the Duluth Economic Development Authority upon securing necessary financing. Construction of what Center City is naming Welch Place, will preserve critical units of affordable housing in the community. Center City will work closely with existing tenants at Memorial Park Apartments to ensure transfer of tenancy into the new Welch Place Apartments or other properties within their management portfolio in Duluth.