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RESOLUTION NUMBER 7449 A RESOLUTION OF THE COUNCIL OF THE CITY OF MISSOULA AMENDING RESOLUTION NUMBER 6538 AND AUTHORIZING A $400,000 LOAN TO BE MADE FROM TITLE ONE FUNDS TO THE NORTH MISSOULA COMMUNITY DEVELOPMENT CORPORATION FOR THE PURPOSE OF ASSISTING IN THE REPAYMENT OF CONSTRUCTION FINANCING FOR THE BURNS STREET COMMONS FIRST- TIME HOMEBUYER DEVELOPMENT. WHEREAS, The City's Title One Program Income fund consists of money generated by community development activities underwritten by the US Department of Housing and Urban Development (HUD) and regulated by Title One of the Housing and Community Development Act of 1974; and WHEREAS, eligible expenditures of the Title One fund include activities authorized under Title One of the aforementioned Act, including those associated with the Community Development Block Grant (CDBG) and Home Investment Partnerships (HOME) programs; and WHEREAS, the City has supported first-time homebuyer activities at the North Missoula Community Development Corporation’s Burns Street Commons project with CDBG and HOME funds; and WHEREAS, current economic conditions have severely hampered ability to market the Burns Street Commons residential units to qualifying low- and moderate-income buyers; and WHEREAS, the commercial loan that financed the construction of Burns Street Commons comes due in July, 2009; and WHEREAS, extending the construction loan will place an excessive financial burden on and the Burns Street Commons project; and WHEREAS, funds remain in the Title One fund; and WHEREAS, the City Council on August 12, 2002, adopted Resolution Number 6538 establishing the funding levels for internal City projects and community based organization (CBO) grants for the Title One Program Income fund; and WHEREAS, Resolution Number 6538 allows the City to consider fund investments when they increase the life of the fund; and WHEREAS, a loan to will maintain or diminish the fund; NOW, THEREFORE, BE IT RESOLVED, that the City amend Resolution Number 6538 to allow a fund investment that maintains or diminishes the Title One fund; and BE IT FURTHER RESOLVED, that the Mayor be authorized to enter into a loan agreement with the North Missoula Community Development Corporation for the purpose of partially paying its outstanding construction loan for the Burns Street Commons housing development; and BE IT FURTHER RESOLVED, that the loan’s rate will be three per cent per annum and its term will not exceed thirty-six months. PASSED AND ADOPTED this 20th day of July, 2009. ATTEST: APPROVED: Martha L. Rehbein John Engen Martha L. Rehbein John Engen City Clerk Mayor (SEAL)