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 received certain funds from the United States Department of Housing and Urban Development 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 December 23, 1996, the City made a loan of funds in the principal amount of $1,073,955, with an interest rate of three percent per annum (the "Loan"), to Diversey Neighborhood Development Corporation, an Illinois not-for-profit corporation ("Borrower"); and
WHEREAS, the Loan was secured by, among other things, that certain Junior Mortgage Security Agreement and Financing Statement dated as of December 23, 1996, 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 rehabilitation of a multi-family housing residential project by the Borrower located generally at 712 West Diversey Parkway, Chicago, Illinois 60614 (the "Property"); and
WHEREAS, the Mortgage is currently subordinate to a senior loan in the original principal amount of $800,000 which is currently held by U.S. Bank National Association (the "Senior Loan"); and
WHEREAS, the Borrower desires to restructure the remaining principal amount of the Senior Loan (the "New Senior Loan") and has requested that the City approve a proposed restructuring of the Loan in a manner which shall remain subordi...
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