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 146-154 North Humphrey Avenue
End
Overview
Overview
The loan recipient, The Humphrey Apartments, LLC, is requesting a subordination of their Multi Family Housing Incentives Program forgivable grant mortgage to a new first mortgage. The Village remains secure in junior position on the title.
Body
Staff Recommendation
Approve the Resolution.
Fiscal Impact
There is no impact on the General Fund. Staff time to prepare the subordination and assignment are the only cost to the Village.
Background
The Neighborhood Services Division of the Development Customer Services Department administers the Multi-Family Housing Incentives Program (a/k/a DAP), which was established by Ordinance in 1984. The Multi-Family Housing Incentives Program is a program of grants and loans for owners of multi-family buildings with four or more units. The purpose of the program is to allow owners to upgrade the physical condition of multi-family buildings, and to expand the housing choices of renters to encourage diversity. To accomplish these purposes, the Village awards eligible property owners a grant and/or loan, and in return, the owners enter into a Marketing Services Agreement which requires the owner to market the building's rental units with the Oak Park Housing Center.
The Village records Multi-Family Housing Incentives grants as a forgivable mortgage lien against the property, with the purchase mortgage having priority over the Village's lien. When the grant term expires the mortgage is released. We record the grant as a mortgage so that we have an enforcement mechanism should the owner not comply with the Marketing Services Agreement. If an owner does not fully cooperate with the Marketing Services Agreement, one option would be to cancel the grant and seek reimbursement.
Du...
Click here for full text