5730 EVERGREEN WAY 2016-01-01 MF Import

7 � $Tr�FF�PORT The City Council is being asked to amend the loan conditions for two previous Community Development Block Grant agreemenu and subocdinau our posiaon for our cuaent first position of$133,000.00. The Community Development Block Grant funds were spent to help Housing Hope acquire the land where Housing Hope Village is being constructed at 5730 Evergreen Way. RACK -RUUND � The Ciry of Everett granted Housing Hope,Communiry Development Block Grant funds � over a two year period to pur.hase a site for Housing Hope Village. These amounu were � 540,000.00 in 1993, and$93,000.00 in 1994 for a total of$133,000.00. Total acquisition , cost was $420,000.00. The City Council also has granted Housing Hope an additional ' S 100,2U0.00 for construction related cosu. Another agenda item will deal with this issue. ; i ; ACTIONS [ZRO i .ST .D ° (1) Housing Hope has Fut together the financing for the Housing Hopc Village project which includes funding from a numher of sources. 'I'he $133,000.00 is currently in first position with all other financial sources behirid. The City Council is being requested to . suburdinate Everett's posiuon to a Cascade Bank Loan of$800,000.00 and a State of i Washington Loan of$450,000.00. All City of Everett loans will be in a third financial , position. ' Snohomish County and other sources of equity will be in fourth or greater position and they include: Snohomish County various sources $443,800.00 HUD $400,000.00 Federal Home Loan Bank 595,000.00 Tax Credit Equity $820,000.00 Capital Campaign $600,000.00 Partner I o�n $138.200.00 $2,497,000.00 j (2) The secondtequested action is to change the tenns of the loan to a 30 yeaz loan with , tt;e principal being paid back to the city afrer that time. The current terms of the loans aze '� no interest and principal forgiven 100%at the end of Fifteen yeazs, as long as the property ' is used for the intended purposed to provide housing to low income families. i i houshopl I i � II I 71 I