Title
Approval of a Resolution Authorizing an Agreement with Homes First for Subordination of Two Community Development Block Grant loans
Recommended Action
Committee Recommendation:
None - not referred to a committee.
City Manager Recommendation:
Move to approve of a resolution authorizing an agreement with Homes First for subordination of two Community Development Block Grant loans
Report
Issue:
Whether to approve of a resolution authorizing an agreement with Homes First for subordination of two Community Development Block Grant loans
Staff Contact:
Anastasia Everett, CDBG Program Manager, 360.753.8277, Office of Community Vitality
Presenter(s):
None - Consent Calendar Item.
Background and Analysis:
The City of Olympia entered into loan agreements with Homes First, a Washington housing nonprofit service provider, in 1994 and in 2002 to provide funding to rehabilitate their property at 501/503 18th Avenue SE.
The loans were funded by federal Community Development Block Grant (CDBG) funding. Homes First is in the process of refinancing the property with Olympia Federal Savings to secure funding for further improvements. Olympia Federal Savings has requested that the City subordinate the two loans so that they will become the first position on the title. This subordination request falls in line with the City’s policies related to subordination of CDBG loans.
Climate Analysis:
Although this action is not anticipated to have any positive or negative effect on climate, Homes First regularly pursues updating their rental properties with energy efficient appliances and solar. Supporting Homes First as an organization allows for continued improvements to their properties.
Equity Analysis:
CDBG loans can be used to make improvements on private residences as well as improvements to public facilities owned by nonprofit organizations. Improvements must meet a National Objective of benefitting low- to moderate-income people. Homes First provides safe and affordable housing to low- and moderate-income households.
Neighborhood/Community Interests (if known):
Homes First operates regionally and provides affordable housing to many households within the City of Olympia. It is in the City’s best interest to continue supporting this nonprofit organization and their important work.
Financial Impact:
The City’s two CDBG loans will take second position to the refinance offered to Homes First by Olympia Federal Savings. The loans are in the amount of $31,4669.16 and $102,000. The loans are due upon sale or transfer of property or change of use.
Options:
1. Approve the resolution authorizing an Agreement with Homes First for Subordination of two Community Development Block Grant loans.
2. Do not approve the resolution, offer staff feedback on the proposed agreement and resolution.
3. Forward this agenda item to a later Council meeting and take action at another time.
Attachments:
Resolution
1994 Agreement
2005 Agreement