Title
Resolution authorizing the Execution and Delivery by the County of Lake, Illinois of a First Amendment to Regulatory Agreement and Restrictive Covenants, a HUD Amendment to Regulatory Agreement and Restrictive Covenants and a Performance Security Agreement Relating to the Regulatory Agreement and Restrictive Covenants entered into by the County at the time of issuance of its Variable Rate Demand Multifamily Housing Revenue Bonds (Whispering Oaks Apartments Project) Series 2008; and Other Provisions in Connection Therewith.
Staff Summary
In 2008, the County issued $26,000,000 in conduit bonds for the purpose of loaning the funds to Whispering Oaks Associates, L.P., which used the funds for the acquisition, rehabilitation and equipping of the Whispering Oaks Apartment in Waukegan to provide affordable housing, governed by Restrictive Covenants to assure compliance with federal affordable housing standards.
The bonds were supported by a credit facility from Freddie Mac, which imposed special conditions on the Restrictive Covenants.
The owner has arranged to refinance the outstanding portion of the bonds with a new loan insured by the U.S. Department of Housing and Urban Development (HUD) and HUD requires certain different special conditions on the Restrictive Covenants.
The resolution approves amendments to the Restrictive Covenants to (1) remove the special conditions of Freddie Mac and (2) add the special conditions required by HUD, as well as approves a new Performance Security Agreement to cover County out-of-packet costs in the event of non-compliance by the owner of the Restrictive Covenants.
Body
RESOLUTION
WHEREAS, The County of Lake, Illinois (“Issuer”), is a duly organized and existing unit of local government within the meaning of Section 1 of Article VII of the 1970 Constitution of the State of Illinois and is a body politic and corporate operating under the general laws of the State of Illinois and is not a home rule unit of local government...
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