Title
Resolution authorizing the Execution and Delivery by the County of Lake, Illinois of an Assignment and Assumption Agreement and Related Documents relating to a Declaration of Restrictive Covenants and Regulatory Agreement and a Tax Regulatory Agreement entered into by said county at the time of issuance of its Multifamily Housing Revenue Bonds (Brookstone Apartments Project) Series 2007 and Other Provisions in Connection Therewith.
Staff Summary
* In 2007, the County issued Multifamily Housing Revenue Bonds (Brookstone Apartments Project) Series 2007 in the amount of $9,600,000 to finance the costs of the acquisition and construction of a multifamily rental housing facility, located in the City of Waukegan, and loaned the funds to Brookstone Apartments LP (who is responsible for repaying the debt).
* Brookstone Apartments LP has advised the County that it plans to sell the property to a new owner, Waukegan Brookstone Apartments, LLC.
* As part of that sale, Brookstone Apartments LP will deposit sufficient funds in escrow to allow the early payoff of the bonds (sometimes called "defeasance") on November 1, 2024 (instead of the original deadline in 2040).
* The Bonds required a Declaration of Restrictive Covenants and Regulatory Agreement against the property to assure that it will be maintained as affordable housing under the Internal Revenue Code requirements and a Tax Regulatory Agreement to ensure that excessive interest (arbitrage) is not earned by the borrower during the term of the Bonds.
* Both Agreements require that any purchaser of the property must enter into an agreement to assume those obligations. The owner and the purchaser have agreed on the terms of an agreement for the assignment and assumption of the obligations under both Agreements by the purchaser, and the County's consent to that assignment and assumption is required.
* The Resolution presented approves and authorizes execution of the Assignment and Assumption Agreement as a consen...
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