☐ Consent Agenda ☐Quasi-Judicial Public Hearing
☒ Regular Business 3:00 pm
☐ Public Hearing Other
DEPARTMENT: Social Services
SUBMITTED BY: Lauri Benson
PRESENTED BY: Lauri Benson
TITLE & DESCRIPTION:
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Approval of documents related to the HHRP loan for DeSoto Landing
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REQUESTED MOTION:
Motion to approve (1) the amendment/extension to the NLP HHRP Agreement; (2) the Assignment, Assumption and Extension Agreement; and (3) the Subordination Agreement, in substantially the attached form, and authorizing the County Administrator to execute all documentation in furtherance thereof.
SUMMARY:
HHRP/Documents for amendment/extension, assignment, assumption and extension agreement, and Subordination agreement.
BACKGROUND:
In 2006, DeSoto County entered into a Hurricane Housing Recovery Program Agreement with Neighborhood Lending Partners of Florida, Inc. (“NLP”), under which NLP administered and serviced housing loans funded through the County’s HHRP allocation. In 2007, NLP made an $875,000 construction and permanent financing loan for DeSoto Landing, a 48-unit multifamily development in DeSoto County. The loan is secured by a junior multifamily mortgage, assignment of rents, and security agreement. The outstanding principal balance remains $875,000.
The existing owner, DeSoto Landing, LLC, proposes to transfer the development to DeSoto Landing Apartments LLC. The purchaser will assume the existing HHRP loan and related affordability, compliance, monitoring, recordkeeping, and reporting obligations. As part of the transaction, the purchaser also proposes to obtain a new $2,189,555 senior loan from NLP. The following three documents implement the transaction and preserve continued servicing and oversight of the County-funded loan:
1. Amendment to HHRP NLP agreement. Extends the term of the County’s agreement with NLP through March 2047, or until all loans funded under the agreement are paid in full, whichever occurs first, so NLP may continue servicing the outstanding loans.
2. Assignment Assumption and Extension Agreement. Assigns the existing DeSoto Landing loan documents to the purchaser; requires the purchaser to assume the obligations arising from and after the transfer; releases the seller from future obligations; and extends the loan maturity to March 2047. Accrued interest will be paid annually beginning June 5, 2027, with all unpaid principal and interest due at maturity.
3. Subordination Agreement. Subordinates the existing $875,000 HHRP Loan and its junior mortgage to the purchaser’s new $2,189,555 loan.
FUNDS:
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