HomeMy WebLinkAboutResolution No. 4512
RESOLUTION NO.
'-(5/2--
A RESOLUTION AUTHORIZING EXECUTION OF FINANCING
AGREEMENT WITH THE COMMUNITY REINVESTMENT
FUND.
The City Council of the City of Eugene finds that:
A. The City currently operates a Housing Rehabilitation Loan Program for the purpose
of the rehabilitation of affordable housing utilizing Community Development Block Grant (CDBG)
funds. The current CDBG one year action plan was approved by the Council on May 13, 1996.
B. Significant loan activity has depleted available funds and created an inability to
respond to potential projects, including funding for the rehabilitation of single family homes that will
be offered to low-income first time buyers under a lease to own program, and other homeowner and
rental unit rehabilitation projects.
C. The Community Reinvestment Fund (CRF) is a nationwide nonprofit organization
that is willing to advance the City $255,000 to be repaid from funds generated by payments received
on the City's existing CDBG loans, with no impact on the City's General Fund. It would be in the
public interest and further the Council's housing goals to authorize the City Manager to enter into
a structured finance agreement, not to exceed $255,000, with the Community Reinvestment Fund.
NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, a Municipal
Corporation of the State of Oregon, as follows:
Section 1. Based on the above findings, which are hereby adopted, the City Manager is
hereby authorized to enter into a structured finance agreement, consisting of a Qualified Seller
Resolution - 1
Agreement, Loan Purchase Agreement, and Participation Agreement, wherein the City will sell a
senior participation interest in its existing CDBG loans to the Community Reinvestment Fund for
$255,000, with the proceeds therefrom to be dedicated to funding housing rehabilitation projects.
Section 2. The financing agreement shall provide that funds for repaying the $255,000 and
interest shall be limited to payments received by the City on CDGB loans, with no impact on the
City's General fund or any other City Fund. The agreement further shall provide that interest on the
$255,000 shall not exceed 7.5% per year.
The foregoing Resolution adopted this 27th day of January, 1997.
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City Rec"Z
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COMMUNITY DEVELOPMENT BLOCK GRANT
ADVISORY COMMITTEE
Members:
Patricia Albertson
Skip Collett
Robert Conrad
Cecelia Hagen
Jeff Kline
Laura Stockford
Bruce Stockton
Geni Sustello
John Vanlandingham
The formation of the Community Development Block Grant Advisory Committee was approved
by the Citizen Involvement Committee in 1993. The role of the Committee is to develop
recommendations for City staff on administration of the federally funded Community
Development Block Grant. Citizens who serve on this committee are selected from three pools:
Special Interest Pool, Neighborhood Pool, and Voter Pool.