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

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WHEREAS, HDCP requires a refinancing in order to provide needed capital repairs for the Project which will continue to provide affordable housing to low-moderate income persons; and WHEREAS, in order to make the refinancing successful, it is necessary for the Commission to forgive the principal balance and all accrued interest of the Promissory Note secured by Real Estate Mortgage dated May 10, 1991 from HDCP to the Commission; and WHEREAS, the amount due on the Note is a principal balance of One Hundred Twelve Thousand Five Hundred Dollars ($112,500) plus interest of One Hundred Forty-nine Thousand Three Hundred Ninety-four Dollars ($149,394) for a total amount due as of December 31, 2007 of Two Hundred Sixty-one Thousand Eight Hundred Ninety-four Dollars ($261,894). Interest is accruing at the rate of eight point three five percent (8.35%) from December 31, 2007; and WHEREAS, the Commission believes it is in the public interest and is consistent with the obligations of the Commission to provide opportunities for quality low-moderate income families to forgive this loan; and WHEREAS, pursuant to I.C. 36-1-4-17(b) a unit of government may compromise the amount of money owed to the unit, and further in I.C. 36-7-14-12.2(25)(26) the Redevelopment Commission may provide financial assistance to enable individuals and families to lease residential units within the district; and based upon the promise of HDCP to make estimated total improvements of $1,304,550 as specified in its request to the Commission; and HEREAS the Rental Rehabilitation Program regulations at 24 CFR 570.11(d)(3) W , provide that the written agreement must be recorded against the property, which can be forgiven at a rate of 10 percent a year for properties of less than 25 units and at the end of ten years for properties greater than 25 units; and WHEREAS, Donald E. Inks, Director -Economic Development, (the "Director") is an appropriate individual to represent the Commission and execute, on behalf of the Commission, any and all documents necessary to implement the terms and conditions of this Resolution. NOW THEREFORE, BE IT RESOLVED, by the South Bend Redevelopment Commission as follows: Section 1. The Commission hereby forgives the indebtedness of HDCP to the Commission pursuant to a Promissory Note in the principal amount of One Hundred Twelve Thousand Five Hundred Dollars ($112,500) dated May 10, 1991 together with interest of One Hundred Forty-nine Thousand Three Hundred Ninety-four Dollars ($149,394) as of December 31, 2007 and all accruing interest through the date of this Resolution; Section 2. The Director is hereby authorized to execute such documents as are necessary to implement the terms and conditions of this Resolution, including but not limited to, marking paid the Promissory Note dated May 10, 1991 from HDCP to the Commission; releasing any conditional assignment of contract rights dated May 10, 1991 from HDCP to the