RES 2002-2374 - Amendment to agmt with Fullwood Square Apartments LP for rehabilitation of Fullwood School into HOME_assisted units . 6 // '*
R E C�NIAFIA,NF6
oi e Planning DepartAent
7 �C ( kol 0 Omaha/Douglas Civic Center
E�`►tre* a1819 Farnam Street,Suite 1100
®,I' P i n r Omaha,Nebraska 68183-0110
Y r l K (402)444-5200
R'TED FEBRU��ry CIS �`�?:.t�i µ• 1� t: (402)444-5150
s r� Telefax(402)444-6140
City of Omaha Robert C.Peters
Mike Fahey,Mayor Director
October 22, 2002
Honorable President
and Members of the City Council,
The attached proposed Resolution approves a Second Amendment to the HOME Investment
Partnerships Program Agreement approved by the City Council on. September 11, 2001,
Resolution No. 2277, as amended June 18, 2002, Resolution No. 1416, in the amount of
$275,000.00 between the City of Omaha and Fullwood Square Apartments Limited Partnership,
a Nebraska Limited Partnership. The General Partner is Fullwood Square Corporation, a
Nebraska Corporation and wholly owned subsidiary of New Community Development
Corporation.
The original Agreement provided partial financing for the Partnership to rehabilitate the vacant
Fullwood School located at 1920 Willis Avenue into 10 affordable housing units of which all 10
rehabilitation units would be assisted with HOME funds and would be made affordable to
qualified low and moderate income families whose household annual incomes are 80% and
below the Median Income by Family Size. Further, the original Agreement provided that the
Partnership would construct 12 non-HOME assisted town homes on the site.
The First Amended Agreement to the original agreement approved a substitution of the General
Partner and an assignment of all rights and responsibilities of the original Agreement to the new
General Partner.
The original Agreement provided an estimated rehabilitation Project cost of$1,209,675.00. In
addition to the $275,000.00 HOME Program Repayable Loan, other funding sources were
comprised of$606,235.00 in Low Income Housing Tax Credits, $150,000.00 in Tax Increment
Financing, a$175,000.00 Bank Loan, and a$3,440.00 cash contribution from the Partnership.
The Project was competitively bid. Based on actual bids received and reasonable soft costs, the
Project budget was increased to $1,397,350.00. The Planning Department believes the Project
budget is reasonable.
Due to an increase in the rehabilitation cost from $1,209,675.00 to $1,397,350.00, the
Partnership has requested and received an additional $125,000.00 allocation of HOME funds to
complete the Project. These funds were authorized through an Amendment to the FY 2001
Consolidated Plan approved by the City Council on August 13, 2002 by Resolution No. 1767.
This.allocation increased the HOME Program funds for this Project to $400,000.00. Other
funding sources consist of$672,350.00 in Low Income Housing Tax Credits, $150,000.00 in Tax
Increment Financing, and a$175,000.00 Bank Loan.
k i
Honorable President
and Members of the City Council
Page 2
Approval of this proposed Second Amended Agreement would result in an increase in the
HOME Program funds allocated to this Project from $275,000.00 to $400,000.00. All other
terms, conditions and requirements in the original Agreement, as amended, would remain the
same.
Funds in the amount of $400,000.00 shall be payable from the FY 2001 HOME Housing
Development Program, Fund No. 12179, Organization No. 128031.
The Partnership has on file a current Annual Contract Compliance Report Form (CC-1). The
Compliance Ordinance requires that the Human Relations Director, at his discretion, conduct a
preaward review of the employment practices of a contractor with a City contract of$300,000.00
or more. As is.City policy, the Human Relations Director will review the Contract Compliance
Ordinance to ensure Contractor compliance.
Your favorable consideration of this proposed Resolution would be greatly appreciated.
Sincerely, Referred to City Coun ' for Consideration:
Robert C. Peters kb Date ayor's Offic Date
Planning Director
Approved as to Funding Ap.- : 'ed:
ageL, /4- -ors
Stanley P. Timm Date Re Vf.d.L. You.: ' Date
Finance Director Human Relatio ►irector
P:\Pln4\7715pjm.doc
SECOND AMENDED AGREEMENT
THIS SECOND AMENDMENT amends the original Agreement approved by the City
Council on September 11, 2001, by Resolution No. 2277, as amended June 18, 2002, by
Resolution No. 1416, between the City of Omaha, a Municipal Corporation in Douglas County,
Nebraska (hereinafter referred to as the "City") and Fullwood Square Apartments Limited
Partnership, a Nebraska Limited Partnership. The General Partner is Fullwood Square
Corporation, a Nebraska Corporation and wholly owned subsidiary of New Community
Development Corporation; 3147 Ames Avenue, Omaha, Nebraska 68111. This Second
Amendment shall relate back to the original Agreement, as amended.
RECITALS
WHEREAS, the original Agreement provided partial financing to the Fullwood Square
Apartments Limited Partnership (hereinafter referred to as the "Partnership") to rehabilitate the
vacant Fullwood School located at 1920 Willis Avenue into 10 affordable housing units. All 10
rehabilitation units would be assisted with HOME funds and would be made affordable to
qualified low and moderate income families whose household annual incomes are 80% and
below the Median Income by Family Size. The original Agreement further provided that the
Partnership would construct 12 non-HOME assisted town homes on the site; and,
WHEREAS, in the original Agreement, the estimated rehabilitation cost for the
Project was $1,209,675.00. In addition to the $275,000.00 HOME Program Repayable Loan,
other funding sources were comprised of $606,235.00 in Low Income Housing Tax Credits,
$150,000.00 in Tax Increment Financing, a $175,000.00 Bank Loan, and $3,440.00 from the
Partnership; and,
WHEREAS, the Project was competitively bid and based on the actual bids
received and reasonable soft costs, the Project budget has been increased to $1,397,350.00. The
Planning Department believes the Project budget is reasonable; and,
J
WHEREAS, the Partnership has requested and received an additional
$125,000.00 allocation of FY 2001 HOME Program funds to complete the Project; and,
WHEREAS, these funds(were provided through an Amendment to the FY 2001
Consolidated Plan approved by the City Council on August 13, 2002 by Resolution No. 1767.
This allocation increased the HOME Program funds for this Project to $400,000.00. Other
funding sources consist of$672,350.00in Low Income Housing Tax Credits, $150,000.00 in Tax
Increment Financing, and a$175,000.00'Bank Loan; and,
WHEREAS, approval of this proposed Amended Agreement would result in an
increase in the HOME Program funds allocated to this Project from $275,000.00 to $400,000.00;
and,
WHEREAS, this Second Amendment relates back to the original Agreement, as
amended and other terms, conditions and requirements in the original Agreement, as amended,
would remain the same; and,
WHEREAS, it is in the I best interest of the City of Omaha and its residents to
enter into a Second Amended Agreement with the Partnership for the successful completion of
this worthwhile housing development project.
NOW, THEREFORE,1 IN CONSIDERATION OF THESE MUTUAL
COVENANTS, the Partnership and the City do hereby agree as follows:
Page 1 of the original Agreement, delete the fifth grammatical paragraph and
substitute the following language in its place and stead:
WHEREAS, the City's FY 2001 Consolidated Submission for Community Planning and
Development Programs (hereinafter referred to as "Consolidated Plan"), outlining priorities,
programs and funding allocations for the 2001 program year, was approved, as amended, on
December 19, 2000 by Resolution No. 3377 and subsequently amended again on August 13,
2002 by Resolution No. 1767; and,
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� I
Section 1, DEFINITIONS AND ABBREVIATIONS, delete Paragraphs 1.07,
1.08, 1.08.1 and 1.16 in their entirety and substitute the following Paragraphs in their place and
stead:
1.07 "HOME Funds" shall mean — that portion of the HOME Investment Partnerships
Program awarded to the City, subject to and conditioned upon actual receipt of
same by the City of Omaha, as may be available to loan during the FY 2001
program year for the use specified herein in an amount not to exceed $400,000.00
payable from the FY 2001 HOME Housing Development Program, Fund No.
12179, Organization No. 128031.
1.08 "HOME Repayable Loan" or "Loan" shall mean — a Loan in the amount of
$400,000.00 made subject to the terms, conditions and provisions of the loan
agreement under which said Loan is made, which shall provide, inter-alia, that
same shall be repayable in forty-five years from and after December 1, 2001, at
the annual interest rate set at the Applicable Federal Rate (AFR) of 5.39%, with
interest accruing from and after December 1, 2001 and annual accruals of
$21,560.00 each, accumulating each December 1, thereafter, through and
including December 1, 2016. Such interest and subsequent annual accruals of
$21,560.00 are to be deferred for fifteen years and added to the principal amount
of the Loan beginning December 1, 2001 through December 1, 2016. Beginning
January 1, 2017, the Loan balance of$723,400.00 will begin amortizing over the
remaining thirty-year term (360 months) at a rate of 5.39% with monthly
payments of$4,057.60. The principal balance plus accrued interest shall become
due and payable upon sale or transfer of ownership of the property except for an
Assignment as provided in Section 8.09 of this Agreement. The Loan may be
used only for the purpose described herein.
1.08.1 The City's Loan will be subordinate to construction financing in an aggregate
amount not to exceed $297,350.00 for the Project and shall be secured with no
less than a fourth lien position.
1.16 "HOME" shall mean — that portion of the HOME Investment Partnerships Program
entitlement awarded to the City, subject to and conditioned upon actual receipt of same
by the City of Omaha, as may be available to loan during the FY 2001 program year for
the use specified herein in an amount not to exceed $400,000.00, subject to the terms,
conditions and requirements of said Loan Fund Agreement.
Section 2, RESPONSIBILITIES OF DEVELOPER, Subparagraph 2.01.1 and Paragraph
2.02 shall be deleted in their entirety and the following language shall be substituted in their place
and stead:
2.01.1 The Developer shall use the $400,000.00 HOME Funds for the rehabilitation of
the ten (10) HOME-assisted units at 1920 Willis Avenue for qualified low-and-
moderate income families whose annual income is 60% or below the Median
Family Income (MFI) for eight units and 50% and below the MFI for two units
(Exhibit"C").
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3 -
2.02 Project Budget
The Developer asserts that the funding sources and amounts listed below are committed
as of the date of loan closing or will be committed to the Project during the term of this
Agreement.
FY 2001 HOME $ 400,000.00
LIHTC 672,350.00
Tax Increment Financing 150,000.00
Bank Loan 175,000.00
Estimated Project Cost $ 1,397,350.00
Section 3, Subparagraph 3.01.7 shall be deleted in its entirety and the following language
shall be substituted in its place and stead:
3.01.7 Security for Repayable Loan. Developer shall execute for the benefit of the City
a deed of trust and a repayable loan non-recourse promissory note in an amount
not to exceed $400,000.00 secured by no less than a fourth lien position
subordinate to aggregate amounts not to exceed $997,350.00 (Exhibit "E").
Section 5, Subparagraph 5.06.2, shall be deleted in its entirety and the following language
shall be substituted in its place and stead:
3.01.7 Disadvantaged Businesses (Omaha Municipal Code, Section 20-200). The
Developer shall make every good faith effort to procure services or supplies with
disadvantaged business enterprises as defined in,Exhibit"M").
Section 7, Paragraph 7.02, delete in its entirety and substitute the following language in
its place and stead:
7.02 Payments. It is expressly agreed and understood that the total amount to be paid by the
City under this Agreement shall not exceed $400,000.00 in FY 2001 HOME Program
funds. The payment of these funds is subject to and conditioned upon actual receipt by
the City of the same. Should adequate funding not be available to the City, the City shall
notify the Developer as soon as reasonably possible and the Agreement will be
terminated.
SCHEDULE OF EXHIBITS, Exhibit "E" shall be deleted in its entirety and the
following language shall be substituted in its place and stead:
E 4.06 Amended Non-Recourse Repayable Loan Promissory Note
SCHEDULE OF EXHIBITS, add the following language:
M 5.06.2 Disadvantaged Businesses (Omaha Municipal Code, Section 20.200).
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•
. •
WHEREAS, the remainder of the original Agreement approved by the City
Council on September 11, 2001, by Resolution No. 2277, as amended June 28, 2002, by
Resolution No. 1416, shall remain the same and shall be in full force and effect.
IN WITNESS WHEREOF, the City and the Developer have executed this Second
Amended Agreement as of the date last written below.
ATTEST: CITY OF OMAHA, a Municipal Corporation
in Douglas County,Nebraska
)1-\
C T CLERK OF TI E CITY OF OMAHA MAYOR OF THE CITY OF MAHA
/ /%�,40..
DATE
} - ! FULLWOOD SQUARE APARTMENTS
LIMITED PARTNERSHIP, a Nebraska Limited
Partnership
Q
FULLWOOD BY: SQUARE CORPORATION,
a Nebraska Corporation and wholly owned
subsidiary of New Community Development
Corporation, General Partner
WIT SS:
effiA.C1' /23)14)11:LOU
is ad B. Maroney, President
,G41 Z.--
DATE
P:\PIn4\7717pjm.doc AP OVED AS TO FORM:
ASS TANT CITY ATTORNEY DATE
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i
EXHIBIT "E"
HOME PROGRAM
SECOND AMENDED NON-RECOURSE REPAYABLE LOAN PROMISSORY NOTE
Second Amendment increases the loan amount in the Note executed July 8, 2002 from
$275,000.00 to $400,000.00, increases the annual interest accruals from $14,822.50 to
$21,560.00, and increases the monthly loan payment amount from $2,789.60 to $4,057.60.
Project No.: HOME Housing Development Place: 1920 Willis Avenue
Program Omaha, Douglas County, Nebraska
Loan No.: 01-HOME/0311 Date:
FOR VALUE RECEIVED, the undersigned hereby promises to pay to the order of the
CITY OF OMAHA (hereinafter, the "City"), acting by and through the Director of the Planning
Department or its successors, the principal sum of Four Hundred Thousand and no/100 Dollars
($400,000.00), together with interest thereon as hereafter provided, as follows:
1. Annual interest rate set at the Applicable Federal Rate (AFR) of five and 39/100
percent (5.39%) from and after December 1, 2001.
2. Interest at the rate of five and 39/100 percent (5.39%) per annum ($21,560.00) shall
be accrued on the principal balance of this Note at the end of each year,for a period
of fifteen (15) years, through and including December 1, 2016.
3. On December 1, 2016, the accrued interest to that date ($323,400.00) shall be added
to the principal balance of $400,000.00, and such new principal amount
($723,400.00) together with the interest thereon at the rate of five and 39/100
percent (5.39%) per annum, shall be amortized over an additional period of thirty
(30) years in 360 equal monthly installments of principal and interest ($4,057.60),
commencing January 1, 2017.
•
All payments on this Note shall be made in lawful money of the United States at the
principal office of the City of Omaha, 1819 Farnam Street, Omaha, Nebraska or at such other
place or places as shall be designated in writing for such purposes by the City.
The undersigned reserves the right to prepay at any time all or any part of the principal
amount of this Note, without the payment of penalties or premiums.
IN THE EVENT that the undersigned shall fail to pay any installment of principal and
interest when due, and such default in payment continues for a period of fifteen (15) days after
written notice thereof has been given by the City to the undersigned, the City may at any time
thereafter, at its option, declare the entire unpaid balance of principal and interest at once due and
owing, without further notice. Failure of the City to exercise such option shall not constitute a
waiver of such default. No default shall exist by reason of nonpayment of any required
installment of principal and interest, so long as the amount of any optional prepayments already
made pursuant hereto equals or exceeds the amount of the required installments. If the interest
on, and the principal of, this Note are not paid during the calendar month which includes the due
date, the undersigned shall pay to the City a late charge of 4% per calendar month, or fraction
thereof, on the amount past due and remaining unpaid.
Notwithstanding anything to the contrary set forth above, but except as hereafter
provided, the principal, together with all interest, of and on this Note, shall be due and payable
on the first day after the undersigned conveys, grants, mortgages, assigns or otherwise transfers
its interest, or any portion thereof, in the property or improvements without the prior written
consent of the Director of the Planning Department of the CITY OF OMAHA, which consent
shall not be unreasonably withheld on such property located at 1920 Willis Avenue in the City of
Omaha, and legally described as:
Lots 4, 5, 6 and 7, Block 3, Lakes Addition, an Addition to the City of Omaha as
surveyed, platted and recorded in Douglas County,Nebraska, together with all of
vacated alley adjoining said lots,together with improvements thereon.
The loan evidenced by this Note is a non-recourse obligation of the undersigned. Neither
the undersigned nor any of its general and limited partners (or the partners, officers, directors or
shareholders of any such partner) shall have any personal liability for repayment of any sum due
under this Note or the Deed of Trust securing it. The sole recourse against the undersigned by
the Lender under this Note and related Deed of Trust for repayment of the loan evidenced
thereby shall be by the exercise by the Lender of its rights against the above-described property
and improvements, and related security thereunder.
THIS NOTE is secured by no less than a Fourth Deed of Trust subordinate to amounts
not to exceed $997,350.00.
IN THE EVENT that this Note should be reduced to judgment, such judgment shall bear
interest thereon at the statutory rate, but not to exceed 9%per annum.
IF suit is instituted by the City to recover upon this Note, the undersigned agrees to pay
all costs of such collection, including reasonable attorneys' fees and court costs.
DEMAND, protest and notice of demand and protest are hereby waived, and the
undersigned hereby waives, to the extent authorized by law, any and all homestead and other
exemption rights which otherwise would apply to the debt evidenced by this Note.
•
IN WITNESS WHEREOF, this Note has been duly executed by the undersigned, as of
the day and year above set forth.
FULLWOOD SQUARE APARTMENTS LIMITED
PARTNERSHIP, a Nebraska Limited Partnership
BY: FULLWOOD SQUARE CORPORATION,
a Nebraska Corporation and wholly owned
subsidiary of New Community Development
Corporation, General Partner
BY: 4
Michael B. Maroney, President
• EXHIBIT "Mn
EXHIBIT #2
DISADVANTAGED BU
•
SINESS ENTEI2PR3SE
(A) during its most recent fiscal year has received less than the average
gross income for local businesses, as that amount is determined by
the finance director as that amount has been determined herein;
and,
(B) has been deprived of the opportunity to develop and maintain a
competitive position in the industry because:
(1) the business lacks the adequate external support necessary
to operate a competitive business enterprise as evidenced by
diminished ability to secure long-term working capital,
financing, equipment, raw material, etc.; or
(2) if the business is a supplier, it has not captured a
proportionate share of the market for its goods and services;
or
(3) the business has been subjected to racial or ethnic or other
prejudice or cultural bias because of its identity as a member
of a group without regard to its individual qualities and the
social disadvantage stems from circumstances beyond its
control; and
(C) the business meets the following criteria:
•
(1) has been in existence for at least one year; and
(2) is not an affiliate or subsidiary of a business dominant in its
field of operation; and
(3) is not: a manufacturer's representative; a franchise; a
business where the owner is an owner or part owner of
another similar business; or, a non-stocking retailer or
wholesaler; and
(4) its annual gross receipts of its most recent .fiscal year, as
evidence by its income tax returns, have not exceeded
3150.000.00, at the time it applies for certification. After
initial certification, Section (D) below shall govern: and
(5) the net worth of individual owners may not exceed the sum
of $150,000.00 after excluding the individual's equity in the
business seeking certification and the individual's equity in
his or her primary residence. As used in this subsection the
word "owner" includes the owner's spouse and parents
and/or children living in the household; and
(6) Individual owners may not hold more than 20% ownership in
any other single business. As used in this subsection the
word "owner" includes the owner's spouse and/or parents
and/or children living in the household.
•
(D) When the business completes five years of participation in the
program or its gross receipts reaches the sum of$500,000.00 for a
fiscal year or any one or more of the owners' net worth reaches the
sum of $250,000.00. (as calculated in the same manner as
subsections (5) and (6)), whichever shall occur first, said business
shall be decertified and no longer participate in the program.
Municipal Code, City of Omaha, Nebraska, Sec. 10-19 1(m).
Municipal Code, City of Omaha, Nebraska, Sec. 10-191(m).
(E) Concurrent with the submission of the budget for the upcoming
years, or by the end of the current year, each department shall
identify proposed projects, supplies or services that can be
• contracted for the upcoming years for no more than $50,000.00.
With respect to said proposed contracts, to the extent permitted by
law, requests for bids or proposals for said contracts shall be
accepted solely from DBEs for a period of thirty (30) days. If after
thirty (30) days, the City has not accepted a bid or proposal from a
DBE, then the contract will be rebid without the DBE restriction.
A disadvantaged business may include, but not be limited to a business
owned by a protected class, but such business must meet two or other
conditions set forth in (1) through (5) above.
•
(Code 1980; sect. 10-191; Ord. No. 35344, sect. 1, 9-26-00; Ord. No.
35538, sect. 1, 3-27-01); Ord. No. 35668, sect. 1, 7-31-01)
ATTACHMENT 5
A B C 0 E F G
1 FULLWOOD SQUARE
2
3
4
5
6 SOURCES&USES STATEMENT
7
8 SOURCES REHAB
9 TAX INCREMENT FINANCING $150,000 APPROVED $150,000
10 HOME FUNDS $275,000 APPROVED $275,000
11 HOME FUNDS $125,000 REQUESTED $125,000
12 1st.MORTGAGE FINANCING $400,000 APPROVED $175,000
13 TAX CREDITS $1,831,326 APPROVED $672,350
14 FEDERAL HOME LOAN BANK $115,000 REQUESTED $0
15 TOTAL $2,896,326 $1,397,350
16
17 USES
18 LAND $100,000
19 CONSTRUCTION $2,088,000
20 CONTINGENCY 5% $104,400
21 SOFT COST $361,750
22 DEVELOPER FEE $242,176
23 TOTAL $2,896,326
• E`
A I B C D E F G
1 Fullwood Square 28,300 sq.it. New Construction ` Rehabilitation
2 HARD COST$108 sq.R.
3 CONTINGENCY 5%
4 SOFT COST 21%of HARD COST
5 I
6
7 ::::08iGiNhL::::::
8 :-:-GI0k:ITEM.:-:-:-:•:::.:.:.:...:.:.:.:.:C.:::.:-:_:_:::•:.:.:.:.:•: -::::: •:•:BUDGET.'
9 :................................................... ........
10 LAND COST $ioo,000 $30,000 $70,000
11 CONSTRUCTION COST $2,068,000 $1,075,360 $992,640
12 OVERHEAD2.5%
13 PROFIT 5.5%
14 PERSONAL PROPERTY/COMMUNITY ROOM $20,000 $20,000
15 HARD COST MINUS LAND COST $2,088,000
16 CONTINGENCY '@5% $104,400 $54,000 $50,400
17 TOTAL HARD COST+LAND&CONTINGENCY $2,292,400 $1,159,360 $1,133,040
18 ARCHITECT $55,000 $27,500 $27,500
19 SOILS/ENVTR./ENGINEERING $15,000 $10,000 $5,000
20 CONSTRUCTION CONSULTANT $15,000 $7,500 $7,500
21 LENDER FEES
22 CONSTRUCTION LOAN FEE 2% $11,000 $5,720 $5,280
23 TERM LOAN FEE
24 RATE LOCK FEE
25 LENDER EXPENSES
26 APPRAISAL $5,000 $2,500 $2,500
27 LEGAL FEES-INTERNAL $2,500 $1,250 $1,250
28 LEGAL FEES-EXTERNAL
29 OTHER COST
30 FINANCING COST
31 HUD PROCESSING FEES.08%
32 TRUSTEE I
33 ISSUER'S FEE >"'^
34 REBATE&OTHER ISSUER COSTS
35 UNDERWRITER FEES&EXPENSES
36 NIFA FEES $15,000 $9,000 $6,000
37 NIFA LEGAL FEES
38 CONSTRUCTION LOAN INTEREST $60,000 $30,000 $30,000
39 CONSTRUCTION PERIOD INSURANCE $15,000 $7,500 $7,500
40 ESCROW FEES $5,000 $2,500 $2,500
41 REAL ESTATE TAXES $6,000 $1,500 $4,500
42 MARKET STUDY $5,700 $2,850 $2,850
43 TITLE,RECORDING $3,000 $1,500 $1,500
44 LEGAL FEES-BORROWER $15,000 $7,500 $7,500
45 TAX OPINION $0
46 TIF FEE I $0
47 DEVELOPER FEE $242,176 $157,171 $85,005
48 RESERVE ACCOUNTS
49 TAX CREDIT FEES
50 CONSULTANT FEES $52,300 $25,000 $27,300
51 ACCOUNTING/AUDITORS $11,250 $5,625 $5,625
52 SOFT COST CONTINGENCY $0
53 PROJECT RESERVES $0
54 LEASE-UP RESERVE $10,000 $5,000 $5,000
55 OPERATING RESERVES $60,000 $30,000 $30,000
56 CAPITALIZED REPLACEMENT RESERVE $0
57 DEFERRED DEVELOPER FEE /
58 TOTAL SOFT COSTS LESS DEFERRED FEE $603,926 $339,616 $264,310
59 TOTAL ALL COSTS $2,896,326 $1,498,976 $1,397,350
C-25A CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha,Nebraska
RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA:
WHEREAS, on September 11, 2001, by Resolution No. 2277, as amended June
18, 2002, by Resolution No. 1416, the City Council approved an Agreement in the amount of
$275,000.00 between the City of Omaha and Fullwood Square Apartments Limited Partnership,
a Nebraska Limited Partnership. The General Partner is Fullwood Square Corporation, a
Nebraska Corporation and wholly owned subsidiary of New Community Development
Corporation; and,
WHEREAS, the original Agreement provided partial financing for the Partnership
to rehabilitate the vacant Fullwood School located at 1920 Willis Avenue into 10 affordable
housing units. All 10 rehabilitation units would be assisted with HOME funds and would be
made affordable to qualified low and moderate income families whose household annual
incomes are 80% and below the Median Income by Family Size. The original Agreement further
provided that the Partnership would construct 12 non-HOME assisted town homes on the site;
and,
WHEREAS, in the original Agreement, the estimated rehabilitation cost for the
Project was $1,209,675.00. In addition to the $275,000.00 HOME Program Repayable Loan,
other funding sources were comprised of $606,235.00 in Low Income Housing Tax Credits,
$150,000.00 in Tax Increment Financing, a $175,000.00 Bank Loan, and $3,440.00 from the
Partnership; and,
WHEREAS, the Project was competitively bid and based on the actual bids
received and reasonable soft costs, the Project budget has been increased to $1,397,350.00. The
Planning Department believes the Project budget is reasonable; and,
WHEREAS, due to an increase in the rehabilitation cost from $1,209,675.00 to
$1,397,350.00, the Partnership has requested and received an additional $125,000.00 allocation
of FY 2001 HOME Program funds to complete the Project; and,
WHEREAS, these funds were authorized through an Amendment to the FY 2001
Consolidated Plan approved by the City Council on August 13, 2002 by Resolution No. 1767.
This allocation increased the HOME Program funds for this Project to $400,000.00. Other
funding sources consist of$672,350.00 in Low Income Housing Tax Credits, $150,000.00 in Tax
Increment Financing, and a$175,000.00 Bank Loan; and,
By
Councilmember
Adopted
City Clerk
Approved
Mayor
-25A CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha,Nebraska
PAGE 2
WHEREAS, approval of this proposed Amended Agreement would result in an
increase in the HOME Program funds allocated to this Project from $275,000.00 to $400,000.00.
All other terms, conditions and requirements in the original Agreement, as amended, would
remain the same; and,
WHEREAS, this Second Amendment relates back to the original Agreement, as
amended; and,
WHEREAS, it is in the best interest of the City of Omaha and its residents to
enter into a Second Amended Agreement with the Partnership for the successful completion of
this worthwhile housing development project.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF OMAHA:
THAT, as recommended by the Mayor, the attached Second Amendment to the
Agreement approved by the City Council on September 11, 2001, by Resolution No. 2277, as
amended June 18, 2002, by Resolution No. 1416, between Fullwood Square Apartments Limited
Partnership, a Nebraska Limited Partnership, General Partner: Fullwood Square Corporation, a
Nebraska Corporation and wholly owned subsidiary of New Community Development
Corporation, increasing the FY 2001 HOME Program Funds from $275,000.00 to $400,000.00
to complete the rehabilitation of the Fullwood School located at 1920 Willis Avenue into 10
HOME-assisted units and the subsequent rental of those units to qualified low and moderate
income families whose household annual incomes are 80% and below the Median Income by
Family Size, is hereby approved. Funding in the amount of$400,000.00 shall be payable from
the FY 2001 HOME Program Housing Development Program, Fund No. 12179, Organization
No. 128031.
P:\P1n4\7716pjm.doc APPROVED AS TO FORM:
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City Clerk
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Mayor
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