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TO: Mayor Thomas J. Weisner
FROM: Jeff McLaughlin, Neighborhood Redevelopment Manager
DATE: June 18, 2014
SUBJECT:
Resolution to Approve an Amendment to a Development Agreement between the City of Aurora and Boreas LLC to Dispose of a Municipally Owned Property Located at 83 North Avenue - Neighborhood Stabilization Program (NSP)
PURPOSE:
This report, seeks approval for a Resolution to amend a previously approved Development Agreement between Boreas LLC and the City of Aurora that would sell a property located at 83 North Avenue (PIN# 15-27-105-001)("Property") in Aurora that would add the Property to existing single family residential acquisitions that will be rehabilitated and rented under the Aurora Impact Initiative.
In exchange for selling the Property at a di-minimus value, the City will receive one additional unit of housing to be rented to persons who earn at-or-below 50% of the area median income with affordability restrictions that will be enforced with legal covenants for a period of not less than 15 years. Since 2009, the City has invested approximately $60,000 in NSP funds into the Property in acquisition and maintenance which would represent its entire investment in the Property. The reuse of the Property as workforce rental housing is one of the main goals of the NSP program.
The Aurora Impact Initiative is a program designed to address the foreclosure crisis in Aurora, and provide affordable rental housing interspersed within homeownership neighborhoods. Under the original City Council approved Development Agreement for the Aurora Impact Initiative (R14-032), Boreas LLC is purchasing 40 vacant and foreclosed single family homes containing 2, 3, and 4 bedrooms, and will rehabilitate these homes for rental housing. The City has funded a portion of acquisition for 10 of the 40 homes, and the Property would be added as a de-facto 11th funded unit. All existing terms of the Agreement between Boreas LLC and the City ...
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