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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, - 2 - � 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"). - GO 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). - 4 - • . • 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 - 5 - 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: • .40‘ /%6 a//yi,o f i4jf CITY ATTORNEY DATE By -- .-- --KoCiltnember Adopted 2.a ce_p City Clerk Approved! IktAti.: /� /02 Mayor -.4 ". fD o o 0 ••s n e c ati � � < to :21 „ O — 0 ill 5 5 o < o- < Nyo - eD z tr1 O`e CD = oo $;t o ;-t o O , < aD C. o i o -zi o p 5 o Q m O 5• ..°o. a. oN t< a, R c a 0 c o op c 0 c �' 'xi o g '-' C] w c z co C.. N C. c o c O -� 6 C CD C I t f‘) Bts \ CFC? c< CL CL, = 6,1Z00 0 —t o., n o 0 o cD � o �, c c ° 00 °c o N 9 A, �, o o too o' V CD o. .� c CD 1 oo sr' • �4'„ O 77 c Q- ry •� n_ it r ow cD ° CD �. ,d °� i a • o . v' O w 5 a po ct,r: o. o 0 �d = 0 cao d OA O n H N ^ CD -. c4 c O. ' z W c `t `F+ W co p u -,. p • CD c4 __. 0 C — CD ,_, A" .°-r, cn O. cn O cn ,�-,. CCDD UQ N u ' CAD • A. 'ill 1 i ' N. • t! 1 ,/ .. • j) % i , r t