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South Bend Redevelopment Commission <br />Regular Meeting -February 15, 2008 <br />6. NEW BUSINESS (CONT.) <br />B. Housing <br />(1) continued... <br />true to its provision of low and moderate <br />income assistance, and has not had code <br />violations. <br />The project is in need of additional <br />investment. South Bend Heritage is pursuing <br />re-syndication of the tax credits and <br />forgiveness of the earlier loan is needed. <br />Staff recommends approving Resolution <br />No. 2439, forgiving the loan. <br />Mr. King noted that legal counsel had <br />suggested the Commission could approve <br />Resolution No. 2439 on condition that South <br />Bend Heritage Foundation continue the <br />project's low/moderate income availability <br />for another 15 years, that South Bend <br />Heritage Foundation execute its plan to <br />combine the West Washington Homes <br />Project (WWHI') and HDCP and re- <br />syndicate the combined entities into one new <br />tax credit project, and that a restrictive <br />covenant be recorded which would allow for <br />recapture of the funds used in the <br />improvement of the property in the event <br />there is a change in the use of the property to <br />a use not eligible under the Rental <br />Rehabilitation Program. Mr. King said he <br />favored such conditions. <br />Mr. Peczkowski asked why an interest rate of <br />8.35% per year was included in the loan <br />documents when the intent was to forgive the <br />loan entirely. Mr. Jurgonski responded that <br />that was the going rate of interest at the time, <br />and it was included in case the project didn't <br />