ORDINANCE NO.______, SERIES 2021
TITLE
AN ORDINANCE APPROVING A PARTIAL FORGIVENESS OF A LOAN TO DIRECTIONS APARTMENTS, LLC PURSUANT TO LOUISVILLE METRO CODE OF ORDINANCES ("LMCO") SECTION 39.131(B) (AS AMENDED).
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SPONSORED BY: COUNCIL MEMBER PURVIS
WHEREAS, Directions Apartments, LLC and Louisville/Jefferson County Metro Government, on behalf of the Office of Develop Louisville, by and through its Office of Housing ("Metro Government" or "Office of Housing") entered that certain Loan Assumption and Modification Agreement ("Agreement") dated the 28th day of April, 2003 and recorded on May 12, 2003 in Deed Book 08138, Page 0470 in the Office of the Jefferson County Clerk, Jefferson County Kentucky; and
WHEREAS, pursuant to the Agreement, Metro Government assumed a certain Note and Mortgage referenced therein, whereby Directions Apartments, LLC became indebted to Metro Government in the amount of $1,427,871.00; and
WHEREAS, Directions Apartments, LLC's outstanding balance to Metro Government on February 16, 2021 December 21, 2020 was $1,986,990 (See letter from New Directions Housing Corporation attached as Exhibit "A"); and
WHEREAS, Directions Apartments, LLC has approached mortgage lenders in an effort to refinance its indebtedness; and
WHEREAS, to refinance its indebtedness, Directions Apartments, LLC requests Metro Government, as the holder of the Note and Mortgage, to forgive Eight Hundred Eighty-One Thousand Eight Hundred and Forty Eight and 00/100 ($881,848) One Million Seventy-Nine Thousand Four Hundred and Ninety and 00/100 ($1,079,490) Dollars of its current indebtedness, plus current interest, and a reduction of future interest to zero to Metro Government (See Exhibit "A"); and
WHEREAS, under LMCO 39.131(B), the Mayor, by and through, Develop Louisville, on behalf of Metro Government may forgive a note in excess of $150,000 with Metro Council approval by ordinance; and
WHEREAS, Office of Housing desires...
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