Number
13218
Version
Original
Reference
Sponsor
The Chair
Title
Resolution approving the application to the Federal Home Loan Bank of Chicago for a grant under its Affordable Housing Program in the amount of $689,885 and authorizing the Authority to make a loan to Holton Terrace LLC in the amount of $689,885 to support the development of Holton Terrace
Analysis
Body
WHEREAS, Holton Terrace (the “Project”) is owned by Holton Terrace LLC, a Wisconsin limited liability company (the “Company”);
WHEREAS, the Housing Authority of the City of Milwaukee (the “Authority”) is the sole and managing member (the “Managing Member”) of Holton Terrace Development LLC, a Wisconsin limited liability company (“Holton Terrace Development”), the sole and managing member of the Company;
WHEREAS, pursuant to a duly adopted resolution dated June 5, 2019 the Authority’s Board of Commissioners (the “Authority’s Board”) approved the rehabilitation of Holton Terrace under the U.S. Department of Housing and Urban Development’s Rental Assistance Demonstration (RAD) program;
WHEREAS, closing for the Project occurred on or about July 8, 2019 (the “Closing”), and construction began shortly thereafter;
WHEREAS, in an effort to cover the additional rehabilitation costs at the Project the Authority, as sponsor for the Project, submitted an application to the Federal Home Loan Bank of Chicago (the “FHLB-Chicago”) on behalf of the Company for a grant under its Affordable Housing Program (the “Application”);
WHEREAS, Associated Bank, National Association, a national banking association (“Associated”), which is a member of FHLB-Chicago, agreed to sponsor the Application;
WHEREAS, pursuant to a letter dated November 20, 2019, the Authority, as the Project’s sponsor was awarded a grant for the Project in the amount of $689,885, which shall be provided by Associated (the “AHP Grant”);
WHEREAS, the Authority now desires to use the AHP Grant to make a loan secured by a mortgage ...
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