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TO: Mayor Richard C. Irvin
FROM: Chris Ragona, Director of Community Services, Community Services Department
DATE: February 13, 2025
SUBJECT:
A Resolution Authorizing the Execution of a Redevelopment Agreement Between the City of Aurora and North Island Apartments LP to Provide a Loan in the Amount of $400,000 in Community Development Block Grant (CDBG) Funds for a Roof Replacement of Affordable Senior Housing Development Building Located at 2 N. Stolp Avenue.
PURPOSE:
Funding the roof replacement of 2 North Stolp Avenue with CDBG funds will address the building's rehabilitation needs and preserve affordable rental housing for the property's 56 low- and moderate-income senior citizen households. The proposed $400,000 loan will be structured to reflect the terms of a 0% Interest loan with partial forgiveness; $200,000 will be repaid when the property is sold, transferred, or no longer designated as affordable. The remaining $200,000 will be forgiven 5 years from the rehabilitation completion date.
BACKGROUND:
North Island Apartments LP is a for-profit entity with an existing independent senior living apartment building in the former Aurora Hotel building located at 2 North Stolp Avenue in downtown Aurora. The building was originally built in 1913 and was redeveloped by the current ownership team in 1998. This property has been providing housing to approximately 56 Aurora low- to moderate-income senior citizen households for 27 years.
The current affordable senior housing requires certain rehabilitation to maintain the condition of the building that cannot be completely sourced from operating revenue.
City staff conducted an underwriting review that included multiple walkthroughs, financial underwriting, and the completion of a 3rd party capital needs assessment. During this review, the property owner completed a lengthy refinancing due to the property boundary discrepancies requiring assistance from the Army Corps of Engineers to review and provid...
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