Number
031397
Version
SUBSTITUTE 1
Reference
Sponsor
ALD. GORDON
Title
Substitute resolution authorizing the sale of a tax credit loan property and partial cancellation of the loan balance with the intention of releasing the lien.
Analysis
Body
Whereas, The City of Milwaukee currently has a lien on a property located at 2912 W. Wells Street purchased to participate in housing rehabilitation tax credits; and
Whereas, The former owner of the property, Milwaukee Housing Assistance Corp/Wells Street Associates Limited Partnership, sold the property to the Wisconsin Housing and Economic Development Authority (WHEDA); and
Whereas, The Wisconsin Housing and Economic Development Authority (WHEDA) requests that the City of Milwaukee participates fully in the loss that was recently experienced with the sale of the property, and
Whereas, The City placed a lien on the original purchase of this property in the amount of $49,432 which represent 7.7% of the total principal amount of the property's Mortgage Indebtedness, and
Whereas, WHEDA is offering to pay the City of Milwaukee $37,686 for this property, leaving a remaining balance of $11,746 to be written off as uncollectable, and has requested that the City release its lien on the property; and
Whereas, The Community Development Committee recommends approval of the sale of the property and the write-off of the $11,746 loan balance as uncollectable; now therefore, be it
Resolved, By the Common Council of the City of Milwaukee, approves the sale and the write-off of the uncollectable loan balance and authorizes the Block Grant Director, on behalf of the City of Milwaukee, to execute and deliver the Escrow Disbursement Agreement on file with this resolution and a satisfaction of the City's mortgage on the property.
Requestor
Drafter
CBGA-WellsSt
S. Mahan
01/27/04