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• • • A RESOLUTION AUTHORIZING A LOAN OF $850,000 TO PIEDMONT HOUSING ALLIANCE FOR THE ACQUISITION AND PRESERVATION OF AFFORDABLE RENTAL HOUSING WHEREAS, Dogwood Housing Limited Partnership ( "Dogwood Housing ") currently owns a significant number of rental dwelling units in the City, which have been made available to low and moderate income families; and, WHEREAS, Dogwood Housing has made known its intention to sell its rental properties, and has secured a contract of purchase for the properties; and, WHEREAS, the prospective purchaser of the Dogwood Housing properties has expressed his interest in continuing to offer the properties for rent to low and moderate income families, but requires additional funding to ensure the continued affordability of those properties; and, WHEREAS, the City of Charlottesville's goals for affordable housing within the City include not only owner- occupied residences, but also affordable rental units, and the preservation of existing rental housing in safe and sanitary condition for occupancy by low and moderate income families is a recognized public purpose for which public funds may be expended; and, WHEREAS, Piedmont Housing Alliance ( "PHA "), a nonprofit section 501 (c) (3) charitable organization dedicated to providing affordable housing opportunities within the City, has expressed a willingness to assist the purchaser of the Dogwood Housing properties in his goal of continuing the properties as affordable rental units; and, WHEREAS, the City has sufficient funds dedicated to affordable housing initiatives to provide a loan of $850,000 to PHA to assist the purchaser in the acquisition of the properties, subject to the terms and conditions set forth herein. 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