SUBSTITUTE ORDINANCE
WHEREAS, the City of Chicago (the "City") is a home rule unit of government under Section 6(a), Article VII of the 1970 Constitution of the State of Illinois and as such may legislate as to matters which pertain to its local government and affairs; and
WHEREAS, the City has determined that the continuance of a shortage of affordable housing to persons of low and moderate income is harmful to the health, prosperity, economic stability and general welfare of the City; and
WHEREAS, the City, pursuant to the Home Investment Partnership Program, received from the United States Department of Housing and Urban Development an allocation of funds ("HOME Program") to make loans and grants to expand the long-term supply of affordable housing through, among other things, acquisition, new construction, reconstruction and moderate and substantial rehabilitation in low- and moderate-income areas; and
WHEREAS, on or about November 19, 2001, the City made a loan of HOME funds in the principal amount of $3,041,918, with an interest rate of one percent per annum and a term not to exceed 30 years (the "Loan"), to North Larrabee Limited Partnership, an Illinois limited partnership ("Borrower"); and
WHEREAS, the Loan was secured by, among other things, that certain Junior Mortgage Security Agreement and Financing Statement dated as of November 1, 2001, made by the Borrower in favor of the City (the "Mortgage"); and
WHEREAS, proceeds of the Loan were used to provide for the acquisition and construction of a project consisting of one multi-family housing building by the Borrower located generally at 551 West North Avenue, Chicago, Illinois 60610 (the "Property"); and
WHEREAS, the sole general partner of the Borrower is Renaissance Family, L.L.C, an Illinois limited liability company ("General Partner"), and NJK Venture, LLC, an Illinois limited liability company, is the managing member ofthe General Partner; and
WHEREAS, the Mortgage is subordinate to that cer...
Click here for full text