Office of the City Clerk - Record #: O2018-6573

• Record #: O2018-6573
• Type: Ordinance
• Status: Passed
• Intro date: 7/25/2018
• Current Controlling Legislative Body: Committee on Finance
• Final action: 9/20/2018
• Title: Restructuring of debt to approve settlement payment from original owner NHS Redevelopment Corp., and allow multiple property transfers, restructuring of City loans, affordability restrictions and project rehabilitation agreements with new owner, Villa Capital Partners LLC and Villa Capital Managers LLC
• Sponsors: Emanuel, Rahm
• Topic: AGREEMENTS - Loan & Security

Date	Journal Page Number	Action By	Action	Result
9/28/2018		Office of the Mayor	Signed by Mayor
9/20/2018	83518	City Council	Passed	Pass
7/25/2018	81393	City Council	Referred

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 for 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, NHS Redevelopment Corporation, an Illinois not-for-profit corporation, is the sole shareholder of each of the general partners of the Illinois limited partnerships described in Exhibit A attached hereto and made a part hereof (collectively, the "Original Owner"); and
WHEREAS, the Original Owner is the owner of that certain real property in Chicago, Illinois relating to certain multi-family rental affordable housing projects (the "Projects"), all as described in Exhibit A; and
WHEREAS, each Project was partially financed by the City with certain loans (collectively, the "City Loans") made by the City to the Original Owner as described in Exhibit A; and
WHEREAS, the Original Owner wishes to sell the Projects (together, the "Property Transfer") to (i) Villa Capital Managers LLC, an Illinois limited liability company ("VCM"); (ii) Villa Capital Partners, LLC, an Illinois limited liability company ("VCP"); or (iii) an entity affiliated with VCM or VCP, as approved by the Commissioner of DPD (the "Commissioner") or a designee of the Commissioner (each, an "Authorized Officer"); and
WHEREAS, subsequent to the Property Transfer, the New Owner will invest no less than $3,000,000 to substantially rehabilitate and equip the Projects (the "Rehabilitation"); and
WHEREAS, the New Owner anticipates receiving a new senior loan in an amount not to exceed $10,000,000 (the "New Senior Loan") secured by the Projects or a portion thereof...