Title
Resolution authorizing a release of Regulatory Agreement and Declaration of Restrictive Covenants by and among the County of Lake, Illinois; Emerald Pointe Limited Partnership; and Bank of New York (BNY) Midwest Trust Company, as Trustee, dated December 1, 2001, recorded January 4, 2002 and amended by First Amendment, recorded December 1, 2011.
Staff Summary
* In 2001, the County issued $7,260,000 in conduit revenue bonds to enable the purchase, renovation and equipping of the multifamily housing project known as Emerald Pointe Apartments.
* As part of obtaining tax exempt status for the interest on the bonds, the developer was required to make certain covenants to meet affordable housing standards required by the federal government.
* The First Amendment passed by the County Board on November 8, 2011, allowed for the borrower to refinance the amounts outstanding with a private mortgage; however, the covenants in the Regulatory Agreement did not terminate with the payment of the balance of the bonds.
* The Borrower has opted out of the Section 8 program, pursuant to written notice to BNY Mellon, dated October 18, 2017. The Project Based Units in the Property are now all Market Rate Units. Therefore, all conditions to termination referenced in Section 1(d) of the Regulatory Agreement and Declaration of Restrictive Covenants dated December 1, 2001, and thereafter amended, have been satisfied.
* BNY Midwest Trust Company, as trustee, has signed the release of the Regulatory Agreement and staff recommend that the County release as well.
Body
RESOLUTION
WHEREAS, in 2001, the County issued $7,260,000 in conduit revenue bonds to enable the purchase, renovation and equipping of the multifamily housing project known as Emerald Pointe Apartments; and
WHEREAS, as part of obtaining tax-exempt status for the interest on the bonds, the developer was required to make certain covenants to meet affordable housing standards required by the federal government, and a...
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