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Record No: CB 120703    Version: 1 Council Bill No: CB 120703
Type: Ordinance (Ord) Status: Passed
Current Controlling Legislative Body City Clerk
On agenda: 11/21/2023
Ordinance No: Ord 126951
Title: AN ORDINANCE relating to affordable housing; amending Ordinance 126258 to authorize forgiveness of a loan to Community Roots Housing.
Sponsors: Teresa Mosqueda
Attachments: 1. Summary and Fiscal Note
Supporting documents: 1. Signed Ordinance 126951, 2. Affidavit of Publication
CITY OF SEATTLE
ORDINANCE __________________
COUNCIL BILL __________________
title
AN ORDINANCE relating to affordable housing; amending Ordinance 126258 to authorize forgiveness of a loan to Community Roots Housing.
body
WHEREAS, the City made a loan in the principal amount of $1,000,000 to Community Roots Housing pursuant to Ordinance 126258 to mitigate the financial impacts of COVID-19; and
WHEREAS, the financial impacts of COVID-19 impaired Community Roots Housing's ability to repay the loan; and
WHEREAS, forgiveness of the loan may improve Community Roots Housing's ability to actively develop, operate and maintain affordable housing in Seattle; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:
Section 1. Section 2 of Ordinance 126258 is amended as follows:
Section 2. The principal amount of the Loan shall be payable in installments upon the earlier of (i) the loan schedule included in the promissory note and loan agreement (collectively, the "Loan Documents"); or (ii) demand by the City. If the Loan principal has not been fully repaid by the maturity date defined in the Loan Documents due to ongoing financial conditions that create a hardship for Community Roots Housing to successfully complete payments on the installments, the OH Director is authorized to extend the term for an additional period of up to three years in the OH Director's reasonable discretion. The Loan shall bear interest at the rate of the City's internal rate of borrowing; however, the interest expense shall be borne by the City and shall not be payable by Community Roots Housing. The principal balance outstanding on the Loan at any time shall not exceed $1,000,000. Principal payments shall be deposited in the General Fund via Finance General and may not be lent again in any amount exceeding an aggregate total of $1,000,000 without Council approval. Other terms and conditions of the Loan not described in this ordinance shall be negotiated by the OH Directo...

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