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This record contains private information, which has been redacted from public viewing.
Record #: O2015-5478   
Type: Ordinance Status: Passed
Intro date: 7/29/2015 Current Controlling Legislative Body: Committee on Finance
Final action: 9/24/2015
Title: Loan assumption, modification and subordination for Diversey Limited Partnership for multi-family housing residential project at 712 W Diversey Pkwy
Sponsors: Emanuel, Rahm
Topic: AGREEMENTS - Loan & Security
Attachments: 1. O2015-5478 (V1).pdf, 2. O2015-5478.pdf
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") which 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 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"), which was subsequently made subordinate to a senior loan in the original principal amount of $800,000 secured by a mortgage on the Property (the "Senior Loan") that was initially held by The Equitable Life Assurance Society of the United States, and was subsequently acquired by U.S. Bank National Association as successor in interest to the Federal Deposit Insurance Corporation, Receiver for Park National Bank, successor by merger to Regency Savings Bank, F.S...

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