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10 NOW, THEREFORE, BE IT RESOLVED by the Council for the City of Charlottesville, Virginia that a loan of $850,000 to PHA for the acquisition of residential rental properties currently owned by Dogwood Housing is hereby authorized, subject to the following conditions: (1) PHA shall loan 100% of the funds to the purchaser of the Dogwood Housing properties to subsidize the acquisition costs of no less than 57 residential apartments. PHA shall secure from the purchaser a promissory note and second lien deed of trust on the properties which contain the 57 housing units. (2) The loan to PHA, and the resulting loan from PHA to the purchaser, shall be for a term of five (5) years from the date of the purchaser’s closing. No interest will be charged on the loan. Purchaser will be obligated to repay PHA, and upon receipt of repayment PHA shall be obligated to repay the City, 100% of the loan amount, unless all parties agree to extend the loan for an additional term. In the event of non-repayment of the loan by the purchaser, PHA shall assign all of its rights and interest in the note and deed of trust to the City of Charlottesville. (3) During the five year term of the loan the 57 rental units shall be leased to families with a household income no greater than eighty percent (80%) of the Charlottesville area median household income. During the five year term of the loan the amount of monthly rent charged to each of the 57 households, or the amount of rent paid by each household that is the beneficiary of a rent subsidy, shall not increase by more than five percent (5%) per annum. (4) Within sixty (60) days of closing all 57 units shall be inspected for compliance with Section 8 housing quality standards. Any noncompliance with those standards shall be remedied by the purchaser within thirty (30) days of inspection, or within such other mutually agreed upon time period. (5) Repayment of a proportionate share of the loan proceeds will be due on the sale of any of the units within the five year loan term. (6) In addition to any conventional financing for the acquisition of the Dogwood Housing properties, the purchaser shall make a significant equity investment in the property, in an amount of approximately $425,000. (7) Within its existing resources PHA shall provide the purchaser with technical assistance regarding the leasing and continued occupancy of the 57 dwelling units by qualifying families. The City Manager is authorized to execute on behalf of the City the documents necessary to effectuate this transaction, in form approved by the City Attorney. RESOLUTION : ROUTE 29 SOUTHBOUND REVENUE SHARING AGREEMENT Mr. Tolbert said that this issue was before Council in December of 2006, and at that time Council had asked that we not go forward with the additional southbound lane. He said staff and the consultant have looked at the project and are convinced that the following improvements should be made: additional southbound lane along Emmet Street between Hydraulic Road and the Route 250 bypass; additional lane on the “Best Buy” ramp; and additional lane between the “Best Buy” ramp and the Barracks Road off- ramp. Mr. Tolbert said that the City has been awarded $1 million in revenue sharing funds and will receive $500,000 from Albemarle Place proffers, and will have to come up with $500,000. He said staff has identified funds in the Capital Improvement Program that could be used. He said the developers of Albemarle Place have agreed to have their engineers prepare the drawings for the project which will amount to a $300,000 to $350,000 in-kind contribution. He said the City needs to move quickly because of the proffer.