Title
RESOLUTION AUTHORIZING THAT PROPER CITY OFFICIALS DISCHARGE $69,000 IN COMMUNITY DEVELOPMENT BLOCK GRANT LOAN DEBT OWED BY CENTER CITY WINDWOOD PARTNERS, LP.
Body
CITY PROPOSAL:
WHEREAS, Center City Windwood Partners, LP entered into a loan agreement on November 13, 2000 for use of Community Development Block Grant (CDBG) funds in the amount of $69,000 for rehabilitation of Windwood Townhomes; and
WHEREAS, Windwood Townhomes, located at 801 Upham Road, Duluth MN, as managed by Center City Community Housing Organization provides 70 units of affordable housing in Duluth; and
WHEREAS, additional capital improvement work is presently needed on site; now, therefore, be it
RESOLVED, that the proper city officials are hereby authorized to discharge $69,000 in CDBG loan debt owned by Center City Windwood Partners, LP for the Windwood Townhomes to ensure continued affordability of said rental units.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes proper city officials to forgive $69,000 in Community Development Block Grant (CDBG) loan debt owned by Center City Windwood Partners, LP.
The City of Duluth and Center City Windwood Partners, LP entered into a loan agreement (city contract #18818) on November 13, 2000 for CDBG funds to rehabilitate Windwood Townhomes, a 70-unit affordable housing complex managed by Center City Community Housing. Since the improvements were made approximately 20 years ago, significant capital improvements are needed to extend the life, security, and livability of the structures. The discharge of this debt will allow Center City to acquire additional funding for these improvements; that will in turn extend the affordability period for 30 years, preserving critical units of affordable housing in the community.