No. 2439 regarding forgiveness of a promissory note secured by a real estate mortage for the Historic Dunbar Corner project

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RESOLUTION NO. ~ j RESOLUTION OF THE SOUTH BEND REDEVELOPMENT COMMISSION REGARDING FORGIVENESS OF A PROMISSORY NOTE SECURED BY A REAL ESTATE MORTGAGE FOR THE HISTORIC DUNBAR CORNER PROJECT WHEREAS, the South Bend Redevelopment Commission (the "Commission"), governing body of the South Bend Department of Redevelopment and the South Bend Redevelopment District (the "Redevelopment District"), exists and operates under the provisions of Indiana Code 36-7-14, as amended from time to time (the "Act"); and WHEREAS, the Commission has adopted various resolutions (i) declaring certain real estate in the Redevelopment District of the City of South Bend, Indiana (the "City") known as the South Bend Central Development Area (the "Area"), to be a redevelopment area within the meaning of the Act, determining that it would be of public utility and benefit to redevelop the Area pursuant to a development plan, as amended, and (ii) designating the entire Area as an allocation area ("Allocation Area"); and WHEREAS, the Historic Dunbar Corner Partnership, LP, ("HDCP") is an Indiana Limited Partnership which operates low income, affordable housing. HDCP owns property • containing fifteen (15) residential units located on the near west side of South Bend, Indiana at the corner of LaPorte and West Colfax Streets in South Bend, Indiana (the "Project"); and WHEREAS, the Project was financed, in part, through a syndication of low income housing tax credits available pursuant to Section 42 of the Internal Revenue Code of 1986; WHEREAS, the sources of financing for the Project included a One Hundred Twenty- four Thousand Dollars ($124,000) first priority Note and Mortgage to Standard Federal Bank; a second priority Note and Mortgage in the amount of Two Hundred Seventy Thousand Sixty Dollars ($270,060) with the Affordable Housing Program; a third priority Note and Mortgage from the Commission in the principal amount of One Hundred Twelve Thousand Five Hundred Dollars ($112,500) plus interest at the rate of eight point three five percent (8.35%) per annum; and Community Development Block Grants from the City of South Bend in the amount of Ninety Thousand Dollars ($90,000); WHEREAS, pursuant to a letter directed to South Bend Heritage Foundation of October 2, 1990, Ted Leverman of the Department of Economic Development confirmed the fact the Commission would forgive its loan to HDCP after fifteen (15) years, so long as the property is kept free of code violations and is made available to low-moderate income persons; and WHEREAS, the Project has been kept free of code violation and has been available to low-moderate income persons for more than the past fifteen (15) years; and •