HomeMy WebLinkAboutDepartment of Housing and Urban Development-Loan Guarantee PtM�tiroF R-.0 OJE-. '8/
N P 1� °" U.S.DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
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OFFICE THE ASSISTANT SECRETARY FOR
COMMUNITY PLANNING AND DEVELOPMENTJUN 3 0 2008
Noel Anderson, Director
Community Planning&Development
715 Mulberry Street
Waterloo, IA 50703
Dear Mr. Anderson:
Subject: City of Waterloo, IA - Section 108 Loan Guarantee
B-03-MC-19-0008, $8,220,000 Commitment
Cedar Valley Riverfront Renaissance Project
Amendment to Contract
This responds to the March 25, 2008 email from Don Temeyer and follows up on previous
communications between and among representatives of the City and HUD, related to the deposit of
pledged funds into the Loan Repayment Account as described in the Contract for Loan Guarantee
Assistance under Section 108 (the "Contract"). In addition, this responds to a request made by the
City in a meeting on February 26, 2008 in connection with the date in paragraph 1 of the Contract.
Paragraph 6(a) of the Contract says that funds pledged pursuant to paragraphs 5(b), 5(c) and
5(d) are to be deposited into the Loan Repayment Account upon receipt. However, we understand
that the City would like to have these funds available for re-use, rather than have to deposit them
into the Loan Repayment Account.
Paragraph 1(a)of the Contract requires that temporary investments of Guaranteed Loan
Funds mature no later than May 1, 2007 and that Guaranteed Loan funds be withdrawn and
disbursed by May 1, 2007. The City has requested an extension of the date to December 31, 2009,
as the City needs more time to complete its Riverwalk and Business Loan Pool activities.
The requests from the City, along with other information provided by the City, have been
reviewed by my office and by our Office of General Counsel. Based on the information provided,
and in the interests of furthering the intended purposes of the transaction, we find the requested
changes to be acceptable to HUD and not inconsistent with the project as approved by HUD. Your
requests are approved as follows:
1. The Contract is amended to insert the following language as paragraph 15(1):
15(1) Notwithstanding anything else to the contrary in paragraph 6(a), so long as no
Default has occurred, amounts pledged pursuant to paragraph 5(b), 5(c), and 5(d)
shall not be required to be deposited into the Loan Repayment Account;
provided, however, such amounts shall be used in accordance with the
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regulations governing their use (including, without limitation, 24 CFR Part 570
and 24 CFR Part 92). Upon any Default, the Borrower shall immediately
deposit all cash derived from such pledged amounts (then on hand or thereafter
received)into the Loan Repayment Account.
2. The date in paragraph 1(a)is extended until December 31, 2009
This letter shall constitute the agreement of the U.S. Department of Housing and Urban
Development to the amendment requests and shall be attached to the original Contract and
constitute a First Amendment thereto.
Except for this addition of paragraph 15(1), related to the Loan Repayment Account, and
the extension of the date in paragraph 1(a), all other terms and conditions and obligations set
forth in the Contract remain unchanged.
If you accept the terms and conditions of this amendment as set forth above, please
acknowledge your acceptance by signing in the space below and return a fully executed copy to
Paul Webster,Director, Financial Management Division, 451 7th Street, S.W.,Room 7180,
Washington,DC 20410.
If you have any questions regarding the contract,please contact Paul Webster,Director of
the Financial Management Division, at 202.708.1871, extension 4563, or Jason Triplett at extension
4837.
Sincerely,
1111
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Nelson R. Bregon
General Deputy Assistant Secretary
Accepted:
City of loo,
By:
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Signature
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