TO: CRA Board of Commissioners
FROM: Renée A. Jadusingh, Esq., Executive Director
DATE: July 23, 2024
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DELRAY BEACH HOUSING AUTHORITY- 134 SW 9TH AVENUE - SATISFACTION OF MORTGAGE OF $95,000
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Recommended Action:
Approve and authorize the CRA Board Chair to sign the Satisfaction of Mortgage for 134 SW 9TH Avenue and related documents in a form acceptable to the CRA Legal Counsel.
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Background:
On April 19, 2004, the CRA and the Delray Beach Housing Authority executed a Purchase and Sale Agreement (Agreement) and Promissory Note in the amount of $95,000; the Promissory Note was secured by a Mortgage on the Subject Property located at 134 SW 9th Avenue. The intent of the mortgage was to allow the Delray Beach Housing Authority to acquire the Subject Property and maintain single-family affordable rental units on the property.
Per Section XIII (d) , of the Agreement:
Per the Agreement, the Delray Beach Housing Authority was to maintain the housing units as single-family rental units at an affordable rent continuously until the expiration of the twenty-year term, for the $95,000 to be forgivable.
On June 24, 2024, the CRA received a resolution from the Delray Beach Housing Authority stating that the single-family rental units had been maintained at an affordable rent continuously for the twenty-year term.
The mortgage still encumbers the property, and the Delray Beach Housing Authority is now requesting the $95,000 loan be forgiven. The Delray Beach Housing Authority maintained the single-family rental units as affordable housing for the mortgage term, and thereby satisfied the intent of the Agreement to provide additional affordable housing in the CRA District.
At this time, CRA Staff is recommending the CRA Board authorize the CRA Board Chair to sign the Satisfaction of Mortgage for 134 SW 9TH Avenue and related documents in a form acceptable to the CRA Legal Counsel for said purpose.
Attachment(s): Exhibit A - Delray Beac...
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