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File #: 2018-0586    Version: 1
Type: Motion Status: Passed
File created: 12/10/2018 In control: Metropolitan King County Council
On agenda: Final action: 12/10/2018
Enactment date: Enactment #: 15282
Title: A MOTION expressing the council's support for refinancing the HUD Section 108 loan authorized by Ordinance 15222.
Sponsors: Joe McDermott
Indexes: Housing
Attachments: 1. Motion 15282.pdf

Title

A MOTION expressing the council's support for refinancing the HUD Section 108 loan authorized by Ordinance 15222.

Body

                     WHEREAS, in June 2005, the King County council adopted Ordinance 15222, which authorized the executive to accept a six million eight hundred fifty thousand dollar loan from the Section 108 loan guarantee program of the federal housing and urban development department (HUD), a loan program that gives local governments the ability to borrow against their federal community development block grant allocation to fund physical and economic revitalization projects, and

                     WHEREAS, the county used the loan to fund infrastructure improvements at the King County Housing Authority's Greenbridge development in the White Center neighborhood in unincorporated King County, and

                     WHEREAS, the loan was to be repaid by a variety of county fund sources, including the roads capital fund, the surface water management fund, the real estate excise tax number 1 fund, the general fund and the housing and community development fund, including proceeds from the county's community development block grant allocation, and

                     WHEREAS, debt service payments on the loan are anticipated to be completed in 2024, and have been gradually declining as the various funds complete their required payments, with the real estate tax number 1 fund making its final payment in 2014 and the roads capital fund and surface water management fund making their final payments during the 2015-2016 biennium, and

                     WHEREAS, HUD has offered the county an opportunity to refinance the remaining outstanding balance on the loan, which is anticipated to provide the county with a net savings of approximately ninety-three thousand dollars over the remainder of the loan repayment period, and

                     WHEREAS, implementing this refinancing will require additional legislation, which cannot be transmitted until the terms of the new loan agreement with HUD are finalized, and

                     WHEREAS, HUD has asked the county to provide a statement of interest in the refinancing opportunity by December 11, 2018;

                     NOW, THEREFORE, BE IT MOVED by the Council of King County:

                     A.  The King County council expresses its support for refinancing the HUD Section 108 loan authorized by Ordinance 15222.

                     B.  The executive is requested to to provide a statement of interest to HUD by

December 11, 2018, and to develop and transmit to the council the necessary legislation for implementing the refinancing of the loan as expeditiously as possible.