HomeMy WebLinkAbout2582BREMERTON CITY COUNCIL
RESOLUTION NO. 2582
Regarding Financing of Bremerton Housing
Authority Development Project
Whereas 60% of Bremerton housing is renter occupied and 50& of
Bremerton residents are low income; and
Whereas the City has adopted goals to increase the percentage of owner-
occupied homes and to increase the percentage of moderate/middle
income residents; and,
Whereas the City of Bremerton desires to encourage new construction of
housing units in modern styles and lot configuration which are primarily
intended for homeowner occupancy; and,
Whereas the project identified below produces a mix of subsidized and
unsubsidized ("market rate") housing units; and,
Whereas the Bremerton Housing Authority has the authority, capability,
and capacity to issue bonds to raise capital for the construction of new
housing units; and,
Whereas the Bremerton Housing Authority can achieve a lower interest rate
if the City of Bremerton signs a contingent loan agreement in which the
City agrees to make any and all annual payments which the Bremerton
Housing Authority cannot make;
Whereas the Board of Directors of the Bremerton Housing Authority have
wholly and adequately analyzed the risk of purchasing the project listed
below for which the Bremerton Housing Authority is the primary borrower
of bond funds; and
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Whereas the City Treasurer has advised the City Council that the proposed
contingent loan agreement for the project listed below will have minimal or
no effect on the City's bond rating; and,
Now Therefore Be It Resolved that the Bremerton City Council does hereby
agree in principle to sign a contingent loan agreement with the Bremerton
Housing Authodty for $9,986,500 to purchase the project described below:
130 townhouse units on separate lots;
10 acre site located on the southeast comer of Hollis and
Aimira;
Rent to Own program for tenants;
Developed by Cobalt Properties, Inc,;
and,
Be It Further Resolved that the Council does authorize the Mayor to
negotiate the required final loan documents provided the cost, number of
units and general design of the site and structures does not substantially
change.
City Council President
City Clerk
Date: 1/8/97
93.06 cobaltl.doc