Title
Approval of a Resolution Authorizing a Subordination Agreement with the Housing Authority of Thurston County of a Community Development Block Grant Loan
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve a resolution authorizing the City Manager to sign a Subordination Agreement with the Housing Authority of Thurston County for subordination of a Community Development Block Grant (CDBG) Loan.
Report
Issue:
Whether to authorize the City Manager to sign a subordination agreement with the Housing Authority of Thurston County for subordination of a CDBG loan.
Staff Contact:
Anastasia Everett, CDBG Program Specialist, 360.233.6971
Presenter(s):
None - Consent Calendar Item.
Background and Analysis:
In 2008, the City issued the Housing Authority a $360,000 CDBG loan to purchase real property at 204 Lily Road to be developed as 24 units of rental housing for low moderate-income renters.
The Housing Authority is working with Heritage Bank to refinance the existing debt on the property (Olympia Crest Apartments) and provide funds to construct 28 additional units. Heritage Bank will be releasing previously recorded Deed of Trust and filing a new Deed of Trust on the property. Heritage Bank and the City will both remain in the same lien position order as they currently are.
Neighborhood/Community Interests (if known):
The apartments at Olympia Crest provide affordable rental units which is a community priority.
Options:
1. Approve the Resolution.
2. Do not approve the Resolution.
3. Consider the Resolution at another time.
Financial Impact:
A $360,000 CDBG loan granted to the Housing Authority of Thurston County will be subordinated to the second position to secure an additional line of credit from Heritage Bank to construct 28 units of affordable housing at the site.
Attachments:
Resolution
Agreement