RESOLUTION NO. ______________, SERIES 2018
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A RESOLUTION AUTHORIZING EARLY FORGIVENESS OF A FORGIVABLE LOAN APPROVED FOR IMPROVEMENTS AT PURITAN APARTMENTS.
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SPONSORED BY: METRO COUNCIL PRESIDENT DAVID JAMES
WHEREAS, the Office of Housing and Community Development approved a $500,000 forgivable loan with the Puritan Organized Labor Senior House, Inc. to be forgiven as of June 30, 2021;
WHEREAS, this loan consists of HOME Investment Partnership Program funds used to make improvements to Puritan Apartments, a 249-unit affordable housing complex for seniors 62+ years old with limited income located at 1244 S. 4th Street;
WHEREAS, Puritan Apartments are now set to be purchased and completely renovated through bonds that will include Low Income Housing Tax Credits, and the apartment complex will remain as affordable housing for 30 years from the time of its completion (2019-2049);
WHEREAS, the new owners will consist of a Partnership that includes: Puritan Organized Labor Senior House, Inc., the current owner who will remain a 50 percent partner; Beacon Property Management, the property managers; SOCAYR (Spirit of Christmas All Year Round), the developer; and Boston Financial, an Investor Limited Partner;
WHEREAS, the Partnership is requesting early forgiveness of this loan because if this loan is assumed by the Partnership, in 2021 when it is forgiven it will show as "income" to the Partnership and the tax to be paid on this "income" will be a cash event that will negatively impact the construction budget as the tax payment would come from the operating funds for the project;
WHEREAS, Louisville Metro has determined that early forgiveness of this loan will further its goals for providing safe and affordable housing for seniors with limited income in the Louisville Metro area; and
WHEREAS, Metro Council has determined that early forgiveness of this loan is in furtherance of the public purposes in Louisville Metro...
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