ORDINANCE NO. ______________, SERIES 2019
TITLE
AN ORDINANCE APPROVING A FORGIVABLE LOAN PURSUANT TO LOUISVILLE METRO CODE OF ORDINANCES § 39.131, TO THE COMMUNITY FOUNDATION OF LOUISVILLE, INC. ON BEHALF OF RUSSELL: A PLACE OF PROMISE AND REBOUND, INC. FOR THE DEVELOPMENT OF EIGHT UNITS OF MARKET RATE HOUSING IN THE RUSSELL NEIGHBORHOOD.
BODY
SPONSORED BY: COUNCIL MEMBERS SEXTON SMITH
AND HOLLANDER
WHEREAS, on behalf of Louisville/Jefferson County Metro Government (“Metro”), Develop Louisville’s Office of Housing and Community Development is the administrator for the Russell Market Rate Housing Program that will be used to award direct financing to create or preserve approximately 15 single family homes in the Russell neighborhood;
WHEREAS, Metro desires to make a loan of $802,000.00 to the Community Foundation of Louisville, Inc. on behalf of Russell: A Place of Promise and Rebound, Inc. (“Community Foundation of Louisville”)-$538,000.00 in the form of a Revolving Loan that will be revolved by the Community Foundation of Louisville for additional phases of market rate development in the project area, and $264,000.00 in the form of a forgivable loan to homebuyers at the time of sale;
WHEREAS, the Community Foundation of Louisville, Inc. will initially use these funds to rehabilitate four units and construct four new units of for-sale market rate housing;
WHEREAS, the aforementioned loans exceed the $100,000.00 and the $150,000.00 amounts contained in the Louisville Metro Code of Ordinances (“LMCO”) § 39.131, which prohibits such action without Council approval;
WHEREAS, the Council has determined that making the Revolving and forgivable loans to the Community Foundation of Louisville, Inc. is in furtherance of the public purposes of Metro.
NOW, THEREFORE, BE IT ORDAINED BY THE LEGISLATIVE COUNCIL OF THE LOUISVILLE/JEFFERSON COUNTY METRO GOVERNMENT (“COUNCIL”) AS FOLLOWS:
SECTION I: The funds requested to be made available to the Community Foundation of Louisville, Inc. on behalf of Russell: A Place of Promise and Rebound, Inc. in the manner of a Revolving Loan of $538,000.00 and a forgivable loan in the amount of $264,000.00 are hereby approved by Council in accordance with LMCO § 39.131.
SECTION II: The Mayor and other officials and employees of Metro who are delegated the authority to act for the Mayor are authorized and directed to execute any and all necessary agreements, certifications, affidavits, releases, cancellations, satisfactions, modifications, and other documents and to do and perform all necessary or convenient actions to carry out the purposes authorized by this Ordinance.
SECTION III. This Ordinance shall take effect upon its passage and approval.
_________________________________ ________________________________
H. Stephen Ott David James
Metro Council Clerk President of the Council
_________________________________ ________________________________
Greg Fischer Approval Date
Mayor
APPROVED AS TO FORM AND LEGALITY:
Michael J. O’Connell
Jefferson County Attorney
By: _______________________________
O-XXX-19 - Loan Forgiveness for the Community Foundation of Louisville (10-10-19).docx