Submitted By
Tammie Grossman, Director of Development Customer Services
Reviewed By
LKS
Agenda Item Title
Title
A Resolution Authorizing Subordination of a Lien for the Property Located at 1000-1006 South Austin Boulevard (MSA 1903-G)
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Overview
Overview
The loan recipient is requesting a subordination of their Multi-Family Housing Incentives Program mortgage to a new first mortgage. The Village remains secure in junior position on the title
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Recommendation
Recommendation
Approve the resolution.
Fiscal Impact
The subordination is not a direct cost to the Village's general fund. Staff time in document preparation, which is a regular part of loan portfolio management, is the only cost
Background
One of Oak Park's important goals is to continue to develop and maintain racial diversity. A large portion of that goal focuses around integrating and supporting continued diversity in rental and owner occupied housing. The Multi-Family Housing Incentives Program is designed to further encourage fair housing practices, to expand housing options for all prospective renters and to improve the quality of multiple-family units and dwellings.
On January 27, 2020 pursuant to the Multi-Family Housing Incentives Program, the Board of Trustees approved a $8,200 grant to the owner of 1000-1006 South Austin Boulevard. The owner is required to expend a minimum of $16,400 for improvements and repairs to receive the full amount of the grant, which have been completed. Additionally, the owner is required to enter into a three (3) year Marketing Service Agreement (MSA) to affirmatively market their rental units, which ends January 27, 2022. The Village's interest is secured by a mortgage which was recorded against the property. The mortgage was recorded as a junior mortgage on the property with the purchase loan mortgage being in first position.
Grants made under the Multi-Family Housing Incentives Program are forgiven and the mortgages released upon proof that impro...
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