ORDINANCE
WHEREAS, the City of Chicago (the "City"), a home rule unit of government under Section 6(a), Article VII of the 1970 Constitution of the State of Illinois, has heretofore found and does hereby find that there exists within the City a serious shortage of decent, safe and sanitary rental housing available to persons of low and moderate income; and
WHEREAS, the City has determined that the continuance of a shortage of affordable rental housing is harmful to the health, prosperity, economic stability and general welfare of the City; and
WHEREAS, the City has certain funds available from a variety of funding sources ("Multi-Family Program Funds") to make loans and grants for the development of multi-family residential housing to increase the number of families served with decent, safe, sanitary and affordable housing and to expand the long-term supply of affordable housing, and such Multi-Family Program Funds are administered by the City's Department of Planning and Development ("DPD"); and
WHEREAS, DPD has preliminarily reviewed and approved the making of a loan to Concord Sheridan LP, an Illinois limited partnership (the "Borrower") of which JNB Concord Sheridan LLC, an Illinois limited liability company, is the sole general partner, in an amount not to exceed Two Million Two Hundred Thousand and No/100 Dollars ($2,200,000) (the "Loan"), to be funded from Multi-Family Program Funds pursuant to the terms and conditions set forth in Exhibit A attached hereto and made a part hereof; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CHICAGO:
SECTION 1. The above recitals are expressly incorporated in and made a part of this ordinance as though fully set forth herein.
SECTION 2. Upon the approval and availability of the Additional Financing as shown in Exhibit A hereto, the Commissioner of DPD (the "Commissioner") and a designee of the Commissioner (collectively, the "Authorized Officer") are each hereby authorized, subject to approval by the Corporation Counsel, to enter into and execute such agreements and instruments, and perform any and all acts as shall be necessary or advisable in connection with the implementation of the Loan. The Authorized Officer is hereby authorized, subject to the approval of the Corporation Counsel, to negotiate any and all terms and provisions in connection with the LOan which do not substantially modify the terms described in Exhibit A hereto. Upon the execution and receipt of proper documentation, the Authorized Officer is hereby authorized to disburse the proceeds of the Loan to the Borrower.
SECTION 3. The Project (as described on Exhibit A hereto) shall be deemed to qualify as "Affordable Housing" for purposes of Chapter 16-18 of the Municipal Code of Chicago. Section 2-45-115 of the Municipal Code of Chicago shall not apply to the Project or the Property (as defined on Exhibit A hereto).
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SECTION 4. To the extent that any ordinance, resolution, rule, order or provision of the Municipal Code of Chicago, or part thereof, is in conflict with the provisions of this ordinance, the provisions of this ordinance shall control. If any section, paragraph, clause or provision of this ordinance shall be held invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the other provisions of this ordinance.
SECTION 5. This ordinance shall be effective as of the date of its passage and approval.
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EXHIBIT A
BORROWER: Concord Sheridan LP, an Illinois limited partnership, whose sole general partner,
JNB Concord Sheridan LLC, an Illinois limited liability company (the "General Partner"), is currently owned jointly by (i) JNB LIHTC Parent, LLC, a Florida limited liability company, (ii) Concord LGG LLC, an Illinois limited liability company, (iii) 6418 Residential LLC, an Illinois limited liability company, and (iv) Cubit Development Group LLC, an Illinois limited liability company.
PROJECT: Acquisition and new construction of one (1) building to be located at 6438 North
Sheridan Road in Chicago (the "Property") and of approximately 111 dwelling units contained therein as studio-, one- and two-bedroom units for low- and moderate-income and market-rate households.
CITY LOAN:
ADDITIONAL FINANCING:
Source:
Amount:
Term:
Interest:
Security:
1.
Amount:
Term:
Source:
Interest:
Security:
Amount:
Term:
Source:
Interest:
3.
Security:
Amount:
Term:
Source:
Interest: Security:
Multi-Family Program Funds Not to exceed $2,200,000 Not to exceed 42 years Zero percent per annum
Non-recourse loan; junior leasehold mortgage on the Property
Not to exceed $25,000,000 Not to exceed 42 years
Citibank, N.A., or another entity acceptable to the Authorized
Officer, to be funded through the issuance of multi-family
housing revenue bonds issued by an entity, other than the
City, acceptable to the Authorized Officer
Not to exceed twelve percent per annum or such rate
acceptable to the Authorized Officer
Leasehold mortgage(s) senior to the City Loan
Not to exceed $21,000,000 Not to exceed 42 years
Chicago Housing Authority, or another entity acceptable to the Authorized Officer
To be determined at such rate acceptable to the Authorized Officer
Leasehold mortgage senior to the City Loan
Not to exceed $2,300,000 Not to exceed 42 years
Illinois Housing Development Authority, or another entity
acceptable to the Authorized Officer
Zero percent per annum
Leasehold mortgage senior to the City Loan
Amount:
Term: Source:
Interest:
Security:
Amount:
Term:
Source:
Interest: Security:
Amount:
Term:
Source:
Interest:
Security:
Low-Income
Housing Tax
Credit
("LIHTC")
Proceeds:
Source:
$1,140,000 or such amount acceptable to the Authorized Officer
Not to exceed 42 years
The Burton Foundation, or another entity acceptable to the Authorized Officer
Not to exceed eight percent per annum or such rate acceptable to the Authorized Officer Leasehold mortgage junior to the City Loan
Not to exceed $2,300,000 Not to exceed 42 years
Concord Sheridan Developer, LLC, or another entity
acceptable to the Authorized Officer
Not to exceed four percent per annum
Leasehold mortgage junior to the City Loan or unsecured
Not to exceed $217,326
Not to exceed 42 years, if any
Illinois Department of Commerce and Economic Opportunity, ComEd or another entity acceptable to the Authorized Officer Zero percent per annum or as a capital contribution to Borrower
Leasehold mortgage junior to the City Loan
Approximately $8,666,797
To be derived from the syndication of approximately $864,287 LIHTC generated by the multi-family housing revenue bond funding
Amount: Source:
$100
General Partner
Department of Planning and Development
CITY OF CHICAGO
July 18,2017
TO THE HONORABLE CHAIRMAN, EDWARD M. BURKE AND MEMBERS OF THE COMMITTEE ON FINANCE OF THE CITY COUNCIL
Ladies and Gentlemen:
I transmit herewith an ordinance providing a multi-family loan to Concord Sheridan LP. Your favorable consideration of this ordinance will be appreciated.
David L. Reifman Commissioner
12 1 NORTH LASALLE STREET, ROOM 1.000, CHICAGO. ILLINOIS 60602
Very truly yours.
CHICAGO July 26, 2017
To the President and Members of the City Council:
Your Committee on Finance having had under consideration an ordinance concerning the authority to enter into and execute a Loan Agreement with Concord Sheridan Limited Partnership.
Direct Introduction
Amount of Loan
Not to exceed $2,200,000
Having had the same under advisement, begs leave to report and recommend that your Honorable Body pass the proposed Ordinance Transmitted Herewith
This recommendation was concurred in by (afwva voce vote^)
of members of the committee with dissenting vote(s)T—
Respectfully submitted
(signedT-j-Vr
Chairman