ORDINANCE NO. 177044

* Authorize Subordination of Contract with Wells Fargo Bank, N.A. regarding Villa Capri Apartments Contract No. 34490 (Ordinance)

The City of Portland ordains:

SECTION 1. The Council finds that:

1.  The CITY entered into Agreement No.34490 with Tualatin Valley Housing Partners (TVHP) and Villa Capri Apartments Limited Partnership (VCALP) to assist in the development of a sixty-three unit family project in Hillsboro, Oregon known as Villa Capri Apartments, which will be owned and operated by VCALP. TVHP and VCALP have agreed to designate three units as housing for families living with HIV/AIDS as a service-enriched community residence.

2.  In order to obtain permanent financing for the project, VCALP and TVHP has requested that the CITY agree to subordinate its interest in the project to the interest of Wells Fargo Bank, N.A., the primary lender in the project’s permanent financing.

3.  The CITY wishes to subordinate its interest to advance the project’s financing and agrees to execute a Subordination of Contract to be recorded against the property.

NOW, THEREFORE, the Council directs:

a. The Commissioner of Public Works is hereby authorized to enter into a Subordination of Contract (HOPWA Agreement) with Wells Fargo Bank, N.A. attached as Exhibit A.

Section 2. The Council declares that an emergency exists because delay in execution of the Subordination of Contract would interrupt TVHP’s ability to develop Villa Capri Apartments for Housing for Persons with HIV/AIDS; therefore, this ordinance shall be in force and effect from and after its passage by Council.

Passed by the Council, NOV 06 2002

GARY BLACKMER

Commissioner Erik Sten            Auditor of the City of Portland

Andy Miller                By /S/ Terry Reisz

October 31, 2002                Deputy

BACKING SHEET INFORMATION

AGENDA NO. 1347-2002

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 177044