5B2 Resolution No. 3677 (Western Ave. Transformation District HUD Loan) - Signed

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South Bend Redevelopment Commission 215 S. Dr. Martin Luther King, Jr. Blvd., Room 301, South Bend, Indiana Redevelopment Commission Agenda Item D ATE : 8/7/2026 FROM: Joseph Molnar Deputy Director Department of Community Investment SUBJECT: Section 108 HUD Loan Collateral Funding Source* (circle) River West; River East; South Side; Douglas Road; West Washington; RDC General; Riv. East Res. *Funds are subject to the City Controller's determination of availability; if funds are unavailable, as solely determined by the City Controller, then the authorization of the expenditure of such funds shall be void and of no effect. PURPOSE OF REQUEST: Resolution Pledging River West TIF Revenues as Backup Repayment for Section 108 HUD Loan to support Western Ave Transformation District SPECIFICS: The Western Ave Transformation District is a planned 156-mixed income housing development co-developed by The Michaels Organization and the Housing Authority of South Bend. The project was awarded low-income housing tax credits by the Indiana Housing and Community Development Authority. 110 of the units for the new project will be reserved for households earning at or below 60 percent of the area median income. The City has submitted an application and received an award for a $10,000,000 loan through the United States Department of Housing and Urban Development (“HUD”) Section 108 Loan Guarantee Program (the “Section 108 Loan”) to fund the infrastructure improvements for the Western Ave Transformation District including new utilities, a new road, and other public improvements. The City has determined to make loan payments for the Section 108 Loan from future Community Development Block Grant funds received by the City annually from HUD. It is the anticipation of the City that CDBG funding will more than cover the estimated loan payments on the Section 108 Loan. Currently, the estimated loan payment would be approximately 21% of the City’s recent annual CDBG allotment. In the unlikely event that during the course of repayment the CDBG funds are insufficient for such purpose, the tax increment revenues generated within the River West allocation area would serve as backup for the loan payments. The attached resolution authorizes the use of River West TIF funds for this purpose. The Common Council will need to also authorize this use of River West TIF funds and will consider the request at their August 24, 2026 meeting. Staff recommends approval. ______________ ___________Pres/V-Pres ATTEST: __________ _______ _ Date: _____________ _______ APPROVED Not Approved SOUTH BEND REDEVELOPMENT COMMISSION August 13, 2026 ✓