ORDINANCE NO. __________, SERIES 2014
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AN ORDINANCE APPROVING A FORGIVABLE LOAN, PURSUANT TO ORDINANCE NO. 54, SERIES 2009, TO NEW DIRECTIONS HOUSING CORPORATION ("NDHC") FOR THE ASSUMPTION AND CONTINUED OPERATION OF EIGHT AFFORDABLE HOUSING RENTAL UNITS LOCATED AT 1506 AND 1508 WEST MARKET STREET.
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Sponsored By: Councilwoman Marianne Butler
WHEREAS, New Directions Housing Corporation intends to assume a Louisville Metro mortgage in the amount of $173,560 on two residential properties located at 1506 and 1508 West Market Street Louisville, Kentucky 40203 ("Properties"); and
WHEREAS, Louisville Metro Government (Metro), by and through its Department of Community Services and Revitalization, Research, Planning and Compliance Division ("CSR"), desires to make the $173,560 assumed mortgage a conditional, forgivable loan of Community Development Block Grant ("CDBG") funds upon the transfer of the Properties, from the original Mortgagee, David Fleischaker and Fred Andres, Jr. to NDHC; and
WHEREAS, Louisville Metro Government has determined that the assumption of the mortgage by NDHC will further its goals for maintaining housing for low income persons in the Louisville Metro area; and
WHEREAS, Louisville Metro Government wishes to modify the current Loan Agreement executed on June 30, 1999 secured by a Note and Mortgage to transfer said documents to NDHC and to provide a forgivable loan in the amount of $173,560 to NDHC; and
WHEREAS, Metro will secure said CDBG Funds with a note and mortgage on the Properties until such time as the Grant period as described within the modified Loan Agreement has ended; and
WHEREAS, the council has determined that making the forgivable loan to NDHC is in furtherance of the public purposes of Louisville Metro.
NOW THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE LOUISVILLE/JEFFERSON COUNTY METRO GOVERNMENT AS FOLLOWS:
SECTION I: That the forgivable loan in the amount of $17...
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