Adoption of Resolution to Authorize Rockville Housing Enterprises to acquire Fireside Park Apartments and undertake related actions necessary to complete the acquisition, including borrowing and accepting money to undertake a housing project, entering into a mortgage, and establishing a not-for-profit corporation to own Fireside Park Apartments.
Fireside Park Apartments is located at 701-747 Monroe Street and was put on the market for sale in April 2012. Rockville Housing Enterprises ("RHE") seeks to purchase the 236-unit complex to preserve it as mixed-income, high-quality rental housing that is affordable to a range of income levels.
Pursuant to RHE's Articles of Organization and the Amended and Restated Cooperation Agreement between RHE and the City, RHE is required to obtain an authorization resolution from the Mayor and Council before taking the following actions:
(a) Acquiring or disposing of any real property.
(b) Entering into new partnerships in housing projects or commercial enterprises.
(c) Borrowing or accepting money to undertake housing projects.
(d) Establishing not-for-profit corporations.
(e) Entering into mortgages, making mortgage loans and/or mortgage subsidy payments or purchasing mortgages.
(f) Developing and/or investing as a general partner or as a limited partner in housing projects; and
(g) Issuing any tax exempt bonds.
As such, RHE requires an authorization resolution from the Mayor and Council in order to move forward to purchase Fireside whether or not the City contributes funds to the project. This approval resolution is separate from RHE's request for City financial support for the transaction.
Attachment A is a draft approval resolution authorizing RHE to:
- Acquire Fireside Park Apartments.
- Borrow and accept money to undertake the Fireside acquisition.
- Enter into a mortgage on the Fireside property.
- Establish a not-for-profit corporation to own Fireside Park Apartments.
Mayor and Council History
RHE's potential purchase of Fireside Park Apartments was introduced to Mayor and Council on August 6, 2012. Mayor and Council unanimously approved RHE's effort to obtain the right of first refusal for the 236-unit property.
RHE's request for financial assistance to purchase Fireside Park Apartments has been on Mayor and Council agendas four times since August (September 10, September 24, October 8, and October 22). The agenda items for each meeting describe the need for a separate approval authorization from Mayor and Council to allow RHE to acquire the property and enter into a mortgage.
Attachment A - Resolution authorizing RHE to acquire Fireside Park Apartments.pdf
Susan Swift, Director of Community Planning and Development Services
Approved on: 10/31/2012
Barbara B. Matthews, City Manager
Approved on: 11/01/2012