TO: CRA Board of Commissioners
FROM: Kim N. Phan, Legal Advisor
THROUGH: Renée A. Jadusingh, Executive Director
DATE: May 24, 2022
Title
FUNDING AGREEMENT - DELRAY BEACH COMMUNITY LAND TRUST, INC.
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Recommended Action:
Recommendation
Approve the funding agreement between the CRA and the Delray Beach Community Land Trust, Inc. (“DBCLT”) in an amount not to exceed $1,224,650.00, in substantially the attached form.
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Background:
On June 11, 2019, the CRA awarded the DBCLT the Request for Proposal 2019-03 “Development and Disposition of CRA Owned Properties in the Southwest Neighborhood for Workforce Housing” (“RFP 2019-03”). The CRA and DBCLT entered into a Purchase and Sale Agreement (“PSA”), dated November 19, 2019, for the disposition of the ten (10) residential properties owned by the CRA pursuant to the RFP 2019-03. On September 10, 2020, the CRA and DBCLT executed a Construction Loan Agreement (“Construction Loan”) for the CRA to provide a construction loan to the DBCLT in the principal amount of $2,454,350 to develop long-term affordable housing consisting of ten (10) single family homes pursuant to the requirements of RFP 2019-03. On September 9, 2020, the CRA and DBCLT executed a mortgage to secure the Construction Loan and a promissory note to repay the CRA the Construction Loan. On or around October 21, 2021, the DBCLT fully repaid the received amount of $2,449,300.01 of the Construction Loan to the CRA.
At the May 25, 2021 CRA Board meeting, the CRA Board approved a motion to forgive fifty (50%) percent of the amount of the Construction Loan that the DBCLT received and expended and that the forgiven funds be used for a specific purpose.
The CRA has received full repayment of the amount the DBCLT received and expended from the Construction Loan and in order to effectuate the CRA Board’s May 25, 2021 intent of forgiving fifty percent (50%) of the Construction Loan the DBCLT received and expended, the CRA will provide fu...
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