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Home My WebLink About15797 1 RESOLUTION NO. 15,797 2 3 A RESOLUTION TO AUTHORIZE THE CITY MANAGER TO RELEASE 4 THE CITY'S LIEN ON THE MAHLON MARTIN APARTMENTS; AND 5 FOR OTHER PURPOSES. 6 7 WHEREAS,the City of Little Rock("City")applied for and received Community Development Block 8 Grant Section 108 Loan Funds("CDBG Funds")from the Department of Housing and Urban Development 9 ("HUD"); and, 10 WHEREAS, on December 1, 1994, the City authorized a loan of Six Hundred Fifty-Five Thousand 11 Dollars ($655,000.00) of the CDBG Funds to the Downtown Little Rock Community Development 12 Corporation for the development of low income housing by means of Resolution No. 9,211 (August 2, 13 1994); and, 14 WHEREAS, in order to conform to the Internal Revenue Service regulations governing tax-credit 15 financing, the Downtown Little Rock Community Development Corporation formed a wholly-owned 16 subsidiary, the Downtown Little Rock Redevelopment Corporation, to function as the general partner in 17 the South Main Street Redevelopment Limited Partnership("Partnership"),thereby retaining control of the 18 project while accommodating majority ownership by investors; and, 19 WHEREAS, the City's Board of Directors authorized the loan to be made to the Partnership instead 20 of the Downtown Little Rock Community Development Corporation by means of Resolution No. 9,277 21 (November 15, 1994); and, 22 WHEREAS,on December 1, 1994, the City entered into an Agreement with the Partnership to make 23 a second mortgage loan for the development of forty-five (45) units of the Mahlon Martin Apartments at 24 1917, 1923, 2201, 2209, 2213, and 2115 Scott Street and 115 East 22nd Street, Little Rock, Arkansas 25 ("Apartments")for low income housing; and, 26 WHEREAS, the principal and interest on the loan were to be deferred until June 30, 2011, at which 27 time the terms of the loan were to be renegotiated to allow for full repayment of the loan or for the continued 28 waiver of the interest and deferral of the loan repayment, or both, for a period of no more than fifteen(15) 29 years; and, 30 WHEREAS, for reasons unknown to the City and to the Partnership the terms of the loan were not 31 renegotiated on or after June 30,2011; and, 32 WHEREAS, pursuant to the Agreement the full amount of the loan is to be released only after 33 substantially all equity contributions have been depleted and as verified performance of activities required 34 by the Agreement, including but not limited to: 1)ensuring the Apartments have been occupied by tenants 35 having income at or less than 60%of the Area Median Income("AMI")adjusted for family size;2)ensuring [Page 1 of 3] 1 that all housing units are affordable to such tenants;and 3)reexamining tenant incomes and applicable rents 2 at least once annually; and, 3 WHEREAS,pursuant to the Agreement,if these criteria are not met,the City is not to waive the interest 4 and the Partnership is to repay the City the loan beginning no later than June 30,2025; and, 5 WHEREAS,the Partnership has provided proof of the depletion of equity of the Partnership and has 6 assured the City that the other criteria required in the Agreement have been met; and, 7 WHEREAS,the City and the Partnership also signed a Subordinated Installment Note("Note")on or 8 about December 1, 1994, which also requires the City to loan the Partnership Six Hundred Fifty-Five 9 Thousand Dollars($655,000.00)without interest for a term not to exceed thirty(30)years; and, 10 WHEREAS, the Note is secured by a Subordinated Mortgage ("Mortgage") which the City and the 11 Partnership entered on or about December 1, 1994, which also states that payment of the principal and 12 interest will be deferred until June 30,2011,when the terms of the repayment will be renegotiated and that 13 a waiver of interest and the principal repayment deferral will not extend beyond June 30,2025;and, 14 WHEREAS, the Agreement, the Note and the Mortgage constitute the lien the City has on the 15 Apartments;and, 16 WHEREAS,the Partnership has stated that all of the conditions of the lien have been met and the City 17 should release the lien pursuant to the Agreement. 18 NOW,THEREFORE,BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY 19 OF LITTLE ROCK,ARKANSAS: 20 Section 1.The City Manager is authorized to take any actions necessary to release the lien the City of 21 Little Rock has on the Mahlon Martin Apartments. 22 Section 2. Severability. In the event any title, section, paragraph, item, sentence, clause, phrase, or 23 word of this resolution is declared or adjudged to be invalid or unconstitutional, such declaration or 24 adjudication shall not affect the remaining portions of the resolution which shall remain in full force and 25 effect as if the portion so declared or adjudged invalid or unconstitutional were not originally a part of the 26 resolution. 27 Section 3. Repealer.All laws, ordinances, resolutions,or parts of the same, including but not limited 28 to Resolution No. 9,211 (August 2, 1994) and Resolution No. 9,277 (November 15, 1994) that are 29 inconsistent with the provisions of this resolution,are hereby repealed to the extent of such inconsistency. 30 ADOPTED: September 20,2022 31 ATTEST: APPR1 : 321433 Aii1L 1 A 00 4 34 Allison Segars, • s ty City Clerk t ance Hines,Vice-Mayor 35 [Page 2 of 31 I APPROVED AS TO LEGAL FORM: 2 3 , .'4.4/1A.A.-/i : at/het& 4 Thomas M. Carpenter,CI Attor 5 // 6 // 7 // 8 // 9 // 10 // 11 // 12 // 13 // 14 // 15 // 16 // 17 // 18 // 19 // 20 // 21 // 22 // 23 // 24 // 25 // 26 // 27 // 28 // 29 // 30 // 31 // 32 // 33 // 34 // 35 // [Page 3 of 31