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, pursuant to the Community Development Block Grant Program, Year XXI, which had been created by the Housing and Community Development Act of 1974, the City received an allocation of funds from the U.S. Department of Housing and Urban Development ("Multi-Program Funds") to make loans and grants to expand the long-term supply of affordable housing through acquisition and rehabilitation in low- and moderate-income areas, to be administered by the City's Department of Housing, which Department has been succeeded by the City's Department of Planning and Development ("DPD"); and
WHEREAS, pursuant to an ordinance approved by the City Council of the City (the "City Council") on August 2, 1995 and published in the Journal of Proceedings of the City Council for such date at pages 5261-5266 thereof (the "Original Ordinance"), the City made a loan of Multi-Program Funds on January 8, 1996 in the principal amount of $205,437, with an interest rate of zero (0%) percent per annum and a term not to exceed 22 years (the "Loan"), to three (3) individuals, Donna A. Kruel, Irene Kruel and Roger L. Kruel, jointly and severally (collectively, the "Original Borrower"); and
WHEREAS, the proceeds of the Loan were used to finance a portion of the costs of rehabilitation of a building located at 1826 S. Avers Avenue, Chicago (the "Property"), to provide six (6) units of affordable housing; and
WHEREAS, the Loan was evidenced by a note which was secured by, among other things, that certain Junior Mortga...
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