Title
Dept/ Agency: Economic & Housing Development
Action: ( X ) Ratifying (X) Authorizing (X) Amending
Type of Service: Amending Resolution #7R3-a(s) 091912 contract with Sub-recipient
,
Purpose: First Amended Affordable Housing Agreement
Entity Name: Cherry Park, LLC or an entity under common control of Cherry Park, LLC
Entity Address: 480 North 4th Street, Newark, New Jersey 07107
Grant Amount: $800,000.00 (Eight Hundred Thousand and Zero Cents)
Funding Source: Community Development Block Grant HOME Program
Contract Period: September 19, 2012 through September 18, 2016
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale ( X ) Grant ( X ) Sub-recipient ( ) n/a
List of Property: (If applicable)
(Address/Block/Lot/Ward)
144-178 Sylvan Avenue, Newark, New Jersey 07104 North Ward/Block 839.01, Lot 32
Additional Information:
Affordable Housing Grant Agreement approved under Resolution #7R3-a(s) 091912
Extend term of Agreement from September, 2014 through September 18, 2016
body
WHEREAS, the City of Newark secured funds from the Community Development Block Grant (CDBG) Federal HOME program for the purpose of soliciting developers to provide affordable low income subsided housing throughout the City of Newark; and
WHEREAS, pursuant to Resolution 7R3-a(s), approved on September 19, 2012, the Municipal Council authorized the Deputy Mayor/Director, Department of Economic & Housing Development to enter into and execute an Affordable Home Agreement with Cherry Park, LLC, or an entity under common control of Cherry Park, LLC, having its principal address at 480 North 4th Street, Newark, NJ 07107 in the amount of eight hundred thousand dollars, ($800,000.00) to subsidize eleven (11) of the ninety-six (96) rental low income affordable housing units located at 144-178 Sylvan Avenue, Newark, NJ 07104, North Ward, Block 839.01, Lot 32; and
WHEREAS, the Deputy Mayor/Director, Department of Economic & Housing Development seeks authorization to amend and ratify Resolution 7R3a(s) adopted September 19, 2012 to extend the contract term to allow the Sub-recipient to complete the project and expend the balance of the HOME Program grant funds; and
WHEREAS, there is a total of Eight Hundred Thousand Dollars ($800,000.00) in HOME Program funds awarded to Cherry Park LLC or an entity under common control of Cherry Park, LLC awarded to the Cherry Park Apartments Project, of which seven hundred twenty-one thousand, eighty four dollars and thirty-five cents ($721,084.35) has been expended to date, leaving a balance of seventy-eight thousand nine hundred fifteen dollars and sixty-five cents ($78,915.65); and
WHEREAS, the First Amended Affordable Housing Agreement completion schedule shall be amended from September 19, 2014 to September 18, 2016 to allow Cherry Park, LLC or an entity under common control of Cherry Park, LLC to complete and expend the balance of HOME funds; and
WHEREAS, the resolution is hereby ratified from September 19, 2012 to date of adoption of this authorizing resolution; and,
WHEREAS, all Federal HOME Program funds for the Project shall be subject to all of the terms and conditions set forth in the Affordable Housing Grant Agreement approved under Resolution 7R3-a(s) adopted September 19, 2012 and shall remain in full effect with the exception of extending the Agreement’s term period to September 18, 2016; and
WHEREAS, the Project does not require the use of additional HOME Program grant or Municipal funds to complete the project.
NOW, THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. Resolution 7R3-a(s), authorized on September 19, 2012, is hereby amended to authorize the Deputy Mayor/Director, Department of Economic & Housing Development to enter into and execute a First Amended Agreement to extend the Affordable Housing Agreement expiration period from September 19, 2014 to September 18, 2016 to allow Cherry Park, LLC, or an entity under common control of Cherry Park, LLC, to complete the project and expend the balance of the Home Program funds.
2. This First Amended Affordable Housing Agreement is hereby ratified from September 19, 2012 to date of adoption of this authorizing Resolution.
3. Cherry Park LLC, or an entity under common control of Cherry Park, LLC, shall be responsible to record the First Amended Affordable Housing Agreement and any amendments hereto with the Office of the Essex County Register’s Office.
4. The Project does not require the use of additional Federal HOME Program or Municipal Funds to complete the project.
5. Except as amended herein, all other terms and conditions contained in Resolution 7R3-a(s) adopted on September 19, 2012, shall remain in full force and effect, to the extent not otherwise amended herein.
6. A fully executed copy of the First Amended Affordable Housing Agreement authorized by this Resolution shall be filed with the Office of the City Clerk by the Deputy Mayor/Director, Department of Economic & Housing Development.
7. All Resolutions or parts of Resolutions that are in conflict with the provisions of this Resolution are hereby superseded to the extent of such conflict.
8. Attached hereto is a certification from the Director of Finance of the City of Newark which states, (1) that there are sufficient funds for the purpose set forth hereinabove and (2) that the line appropriation of the official budget which shall be charged is a follows:
Business Unit Department Division Account Budget Ref.
NW051, G01 D11G0 72090 B2001
STATEMENT
Resolution authorizing and ratifying the Deputy Mayor/Director, Department of Economic & Housing Development to enter into and execute a First Amended Affordable Housing Agreement with Cherry Park, LLC or an entity under common control of Cherry Park, LLC, to extend the Affordable Housing Agreement term for a period of one year from September 19, 2012 through September 19, 2014 to an expiration date of September 18, 2016. The First Amended Affordable Housing Agreement will allow Cherry Park LLC, or an entity under common control of Cherry Park, LLC, to complete the rehabilitation to 11 of the 96 rental low income housing units, known as the Cherry Park Apartment Project, located at 144-178 Sylvan Avenue, Newark, New Jersey 07104, Block 839.01, Lot 32 (North Ward).