RES 2004-29 KCCHA LOAN FOR SERENITY HOUSE PROPERTY7.Y�71[iy 1�[�7\f�C��►�IZIT.�►3�
A RESOLUTION of the City of Bainbridge Island, Washington,
to Guarantee 25% of a Loan from Enterprise Housing Financial
Services, Inc., to Kitsap County Consolidated Housing Authority
for the Acquisition of the Serenity House Property.
WHEREAS, Chapter 35.83 RCW authorizes the City to enter into
cooperative undertakings to carry out low-income housing projects, and to take abroad
range of actions to assist in development or rehabilitation of housing projects, including
the authority to lend or donate money to the Housing Authority; and
WHEREAS. RCW 35.21.685 authorizes the City to assist in the development or
preservation of publicly or privately owned low-income housing by providing loans or
grants of general municipal funds to the owner or developer to finance the cost of
construction, reconstruction, acquisition, or rehabilitation of the low-income housing; and
WHEREAS, the Kitsap County Consolidated Housing Authority (KCCHA) has
requested that Enterprise Housing Financial Services, Inc. (EHFS) make a loan to KCCHA
in the amount of One Million Three Hundred Thousand Dollars ($1,300,000) (the "Loan")
to be used to acquire the Serenity House property located at 4500 Pleasant Beach Drive on
Bainbridge Island, Washington (the "Project"); and
WHEREAS, as a condition of making the Loan, and as security therefore, EHFS is
requiring an unconditional guarantee of repayment twenty-five percent (25%) of the Loan
plus interest and fees and costs, if any, from the City of Bainbridge Island in favor of EHFS
(the "Guarantee");
WHEREAS, the City Council supports the Project and has determined that the City
of Bainbridge Island should provide the Guarantee, and
WHEREAS, the Serenity House is a facility that currently provides housing
opportunities for low-income residents in the City, and the City and Kitsap County
Consolidated Housing Authority desire to preserve Serenity House as a facility providing
low-income senior and/or disabled persons with housing and residential care; and
THEREFORE, BE IT RESOLVED, that Darlene Kordonowy, Mayor of the City
of Bainbridge Island, be and is hereby authorized and directed, to execute, attest, seal and
deliver any and all guarantee agreements, loan documents, certificates, instruments and
writings necessary for the City Bainbridge Island to provide the Guarantee for the Loan, and
to take all other actions, as may be necessary or appropriate to effect and consummate the
Loan and to secure the guarantee obligations of the City of Bainbridge Island as guarantor
there under; and
BE IT FURTHER RESOLVED, that the Mayor of the City of Bainbridge Island
be and is hereby authorized and directed to take all necessary action to assure performance
of the obligations of the City of Bainbridge Island as guarantor under the Loan.
PASSED by the City Council this 8�h day of September, 2004.
APPROVED by the Mayor this 9"' day of September, 2004.
Darlene Kordonowy, Mayor
ATTEST/AUTHENTICATE:
Susan P. Kasper, City Clerk
FILED WITH THE CITY CLERK: August 31, 2004
PASSED BY THE CITY COUNCIL: September 8, 2004
RESOLUTION NO.: 2004-29