Title
Resolution Approving and Authorizing Execution of Assignment and Assumption of CDBG Loan from Cathedral Hill Homes Limited Partnership to Common Bond Communities, District 8, Ward 1.
Body
WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA") is a public body corporate and politic established pursuant to the provisions of Minnesota Statutes, Section 469.001, et seq. (the "Act"); and
WHEREAS, the HRA has the power to engage in development or redevelopment activities under Minnesota law and the HRA is authorized to engage in activities relating to (a) housing projects and development, (b) removal and prevention of the spread of conditions of blight or deterioration, (c) bringing substandard buildings and improvements into compliance with public standards, (d) disposition of land for private redevelopment, and (e) improving the tax base and the financial stability of the community, and to engage in the aforementioned activities when these needs cannot be met through reliance solely upon private initiative and which can also be undertaken in targeted neighborhoods; and is authorized to create redevelopment projects as defined in Minn Stat Section 469.002, Subd. 14; and
WHEREAS, in 1996 the HRA made a CDBG loan of $440,000.00 ("CDBG Loan") to Cathedral Hill Homes Limited Partnership ("Assignor"), for the rehabilitation of the Cathedral Hill Homes apartments project which consists of 7 properties with a total of 60 units of affordable housing ("Project"); and
WHEREAS, Common Bond Communities ("Common Bond") is currently acting as the Project's managing general partner; and
WHEREAS, a major rehabilitation of the Project is being planned; and
WHEREAS, due to the upcoming rehabilitation of the Project, Common Bond has requested that the HRA approve the transfer of the Project and the execution of an assignment and assumption ("Assignment") of the CDBG Loan to Common Bond ("Assignee"), an experienced owner and operator of affordable housing units in the Metropolitan area, and
WHEREAS, staff recommends to the HRA Board approval of the Assignment for the reasons described in the staff report submitted to the HRA Board with this Resolution; and
WHEREAS, by this Resolution the HRA approves the Assignment and finds a public purpose for the actions taken in connection with the Project.
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota that:
1. The HRA Board of Commissioners hereby approves and authorizes the execution of the Assignment, and any related loan documents.
2. The HRA Executive Director, staff and legal counsel for the HRA are directed and authorized to take all actions necessary to implement this Resolution.
3. The HRA's Executive Director is authorized to negotiate and execute any documents and instruments in connection with this Resolution including without limitation the execution of the Assignment and any related documents.