Number
R13347
Version
Original
Reference
Sponsor
The Chair
Title
Resolution approving the Housing Authority of the City of Milwaukee to take all action necessary in connection with a 90-day loan extension with US Bank for Highland Park Community LLC
Analysis
Body
WHEREAS, the Highland Park Community Project is currently owned by Highland Park Community Tax Credit Limited Partnership (the “Partnership”);
WHEREAS, Highland Park Community LLC, a Wisconsin limited liability company (the “Project Owner”) was incorporated to be the LLC Owner of the Project pursuant to Articles of Organization (the “Articles”), on August 8, 2003 with the State of Wisconsin Department of Financial Institutions;
WHEREAS, the Authority is the sole member and managing member of the Company pursuant to that certain Operating Agreement for the Company, effective August 8, 2003 (the “Operating Agreement”), as authorized by the Authority;
WHEREAS, the Project Owner was organized for the purpose, among others, of acquiring, rehabilitating, developing, owning and operating the Project;
WHEREAS, a loan agreement with US Bank for $1,790,000 that was entered into on June 15, 2005 which matured on July 1, 2020 and extended to July 1, 2022 was further extended by US Bank to mature on September 29, 2022;
WHEREAS, there is a current balance of the loan is $1,251,208 with the interest accruing at 3.6% and monthly payments of $5,923.43;
WHEREAS, it is in the best interest of the Project Owner to extend this loan for 90 days to effectively manage HACM’s cash flow;
WHEREAS, US Bank is willing to provide additional loan extension further extending the loan maturity up to December 31, 2022 provided that HACM will provide corporate guaranty on the loan to guaranty payment at maturity;
NOW, THEREFORE, BE IT RESOLVED, that the Authority in its own capacity is hereby authorized, empowered, and directed to enter into, execute, and deliver the Guaranty for the loan between Highland Park LLC and US Bank; and be it
FURTHER RESOLVED, that the Secretary-Executive Director of the Authority or his designee, is hereby authorized, empowered and directed to take any and all such action on behalf of the Authority in its own capacity, as applicable, and as the Managing Member of the Company, as deemed necessary or desirable by the Secretary-Executive Director of the Authority; and be it
FURTHER RESOLVED, that the Secretary-Executive Director of the Authority or his designee, is hereby authorized, empowered, and directed to take such further action on behalf of the Authority as they deem necessary to effectuate the foregoing.
Requestor
Drafter
Housing Management 8/15/2022