DEPARTMENT: Neighborhood and Housing Services
DEPARTMENT HEAD: Ver?nica R. Soto, Director
COUNCIL DISTRICTS IMPACTED: Council District 3
SUBJECT:
Partial Neighborhood Stabilization Program Loan Forgiveness for the Gillette Square Apartments
SUMMARY:
Consideration an Ordinance authorizing partial Neighborhood Stabilization Program loan forgiveness in the amount of $136,487.69 (and accrued interest as of the date of City Council Action) of the original loan amount of $2,517,838.00, for the Gillette Square Apartments, a 43 unit multi-family development, located at 642 Gillette Boulevard, in Council District 3; and acceptance of a $600,00.00 pay off amount.
BACKGROUND INFORMATION:
On January 15, 2009, the City of San Antonio ("the City") was awarded $8,635,899.00 in Neighborhood Stabilization Program (NSP) funds authorized and appropriated under the Housing and Economic Recovery Act of 2008. The City utilized this funding for various affordable housing initiatives, which included the acquisition and rehabilitation of the Gillette Square Apartments, a 43 unit multi-family development, located at 642 Gillette Boulevard, in Council District 3. Gillette Square Apartments was originally built in 1968. Forty units were set aside for households with incomes at or below 50% of Area Median Income (AMI) and three units for households with incomes at or below 120% AMI. For a household of four, 50% AMI is $31,750 and 120% AMI is $76,200, based on 2017 figures.
On July 31, 2009, San Antonio Alternative Housing Corporation No. 17 ("SAAHC No. 17") executed a promissory note payable to the City in the original principal amount of $1,699,838.00 (the "2009 Note") for the acquisition and rehabilitation of the Gillette Square Apartments. The 2009 Note is partially repayable and partially forgivable, requiring the repayment of $118,989.00 at 2% interest over thirty (30) years and forgiving the balance of $1,580,849.00 at 0% interest over time provided the borrower com...
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