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HomeMy WebLinkAboutSummary Form 07/12/12AGENDA ITEM SUMMARY FORM FILE ID: -CO((.Q(f Law Department Matter ID No. 12-1430 Date: 06/14/2012 Requesting Department: Community Development Commission Meeting Date: 07/12/2012 District Impacted: Type: cIS1.Resolution ❑ Ordinance ❑ Emergency Ordinance ❑ Discussion Item rl Other Subject: SECTION 108 LOAN DEFEASANCE Purpose of Item: AUTHORIZING THE CITY MANAGER TO SIGN DOCUMENTS IN CONNECTION WITH THE DEFEASANCE OF THE SECTION 108. LOAN FROM THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT ("HUD"), LOAN B-90-MC-12-0013 WITH A PRINCIPAL BALANCE OF $1,800,000, AND INTEREST PAYMENTS OF $43,052.50 RELATING TO SOUTHEAST OVERTOWN PARK WEST ("SEOPW"); FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE THE NECESSARY DOCUMENTS FOR SAID PURPOSE. Background Information:. Please see attached Budget Impact Analysis NO Is this item related to revenue? YES Is this item an expenditure? If so, please identify funding source below. General Account No: Special Revenue Account No: TO BE DETERMINED CIP Project No: NO Is this item funded by Homeland Defense/Neighborhood Improvement Bonds? Start Up Capital Cost: Maintenance Cost: Total Fiscal Impact: S1,843,052.50 Final Approvals (SIGN AND DATE) Budge CIP liming or 'receiving capital funds Grants Purchas' g. 0 Chi_- / � �t� r / it Risk Managem lir eall De t:Director* *TIM p ��'I �,>4ty Manager ��. � Page 1 of 1 AGENDA ITEM SUMMARY FORM CONTINUED Background Information: On February 7, 1986, the City of Miami ("City") Department of Community Development entered into a Section 108 Loan Agreement with HUD. Pursuant to Resolution No. 10-0264, adopted June 24, 2010, the Miami City Commission approved the refinance of the Section 108 loan in order to lower the interest rate. The City currently spends approximately $550,000 on principal and interest on the SEOPW Section 108 loan. The defeasance of this loan from CDBG repayments, program income and prior year funds will assist the City in meeting the timeliness test on February 1, 2013 as well as make more funds available for the program in the future. The Administration recommends authorizing the City Manager to sign documents in connection with the defeasance of the Section 108 loan.