Submitted By
Jonathan Burch, Assistant Village Manager/ Neighborhood Services Director
Reviewed By
Erin E. Baynes, Assistant to the Village Manager
Agenda Item Title
Title
A Resolution Approving a Subordination and Standby Agreement with the Oak Park Residence Corporation and Hinsdale Bank & Trust Company, National Association, and Authorizing its Execution
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Overview
Overview
The Oak Park Residence Corporation ("OPRC") has requested that the Village resubordinate $1,320,533.33 in Village housing loans. This will enable OPRC to access up to $4 million in financing to rehabilitate existing buildings.
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Recommendation
Recommendation
Staff recommends approving the subordination request, as it involves no change in the terms of the Village's loans with OPRC and allows them to invest in their existing buildings, the maintenance of which furthers the Village's housing goals as outlined in the Strategic Vision for Housing.
Background
Over the course of the last several decades, the Village of Oak Park has provided loans to OPRC for the acquisition and/or rehabilitation of multi-family properties from a variety of sources including the Village's Revolving Loan Fund (CDBG), Village of Oak Park Housing Bond Funds, and the Multi-Family Housing Incentive Grant Program (General Funds).
To continue reinvesting in their portfolio, OPRC requests that the Village subordinate eight (8) loans for five properties. These loans total $1,320,533.33.
Background on these loans is as follows:
* Four (4) loans totaling $541,000 are from the Village's Revolving Loan Fund. Funded with Community Development Block Grant ("CDBG") funds, the intent of these loans was to support the acquisition, rehabilitation, and - ultimately - resale of the properties once stabilized. The Revolving Loan Fund was established with the intention that upon repayment of the loans, the funds would be deposited into the revolving loan fund with the intent to support OPRC in the acquisition and...
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