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 of the partial loan forgiveness of $136,487.69, and accrued interest as of date of City Council action, of Neighborhood Stabilization Program funds for the Gillette Square Apartments
BACKGROUND INFORMATION:
On July 31, 2009, San Antonio Alternative Housing Corporation No. 17 ("SAAHC No. 17") executed a promissory note payable to the City of San Antonio ("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, a 43 unit multi-family development, located at 642 Gillette Boulevard, in Council District 3. 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.
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 complies with the terms of the contract with the City. The 2009 Note is secured by a lien against the Gillette Square Apartments.
In exchange for the 2009 Note, SAAHC No. 17 provided forty units at or below 50% AMI and three units at or below 120% AMI. The affordability period expires on July 31, 2039.
As of October 18, 2017, the balance due on the 2009 Note is:
Repayable Portion $ 94,717.34
Forgivable Portion $1,580,849.00
The Commitment Letter for this loan included a provision stating that "Borrower (SAAHC No. 17) will obtain an additional loan in the amount of approximately $970,000 from a third-party lender, the proceeds of which will be used by Borrower to rehabilitate the Prop...
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