2-44-110 Participation by eligible persons in eligible programs.

   (a)   With respect to each Eligible Program (as defined in paragraph (b) below), Eligible Persons (as defined in paragraph (b) below) shall not be subject to the restrictions of Section 2-156-110, but only as that section pertains to the participation of said Eligible Persons under such Eligible Program.

   (b)   As used in this section:

      (i)   "Eligible Programs" shall mean: (1) programs administered by the Department (or by delegate agencies or other entities with funds provided, in whole or in part, by the Department) which provide various forms of economic assistance (including, but not limited to, land write-downs and financial assistance in the form of grants, loans, fee waivers and tax credits) directly to individuals who are tenants in residential buildings in the City or are owner-occupants of one- to four-unit residential buildings in the City (including individuals who are owner-occupants of a condominium unit in the City), or which provide for the rehabilitation of one- to four-unit residential buildings in the City (including one to four condominium units, without regard to the total number of condominium units in the building); and (2) rental subsidy assistance for very low-income households (as "very low-income" may be defined by United States Department of Housing and Urban Development), provided by the Department through The Chicago Low-Income Housing Trust Fund, an Illinois not-for-profit corporation, or through another entity selected by the Commissioner, and which is paid directly to owners of residential buildings in the City.

      (ii)   With respect to each Eligible Program, "Eligible Persons" shall mean employees and appointed officials of the City (other than those persons described in the next succeeding sentence) who meet the eligibility requirements to participate under such Eligible Program. With respect to each Eligible Program, the following employees and appointed officials of the City shall not constitute "Eligible Persons" for such Eligible Program: any employee or appointed official who, during his/her tenure of employment or appointment, respectively, by the City (1) exercises or has exercised any contract management authority with respect to such Eligible Program, (2) is or was in a position to participate in a decision-making process with respect to such Eligible Program, or with respect to a specific project entered into pursuant to such Eligible Program, or (3) gains or has gained confidential information with regard to such Eligible Program.

      (iii)   If an employee or appointed official of the City qualifies as an "Eligible Person" pursuant to paragraph (ii) above, the following shall also qualify as "Eligible Persons": (1) such employee’s or official’s spouse or domestic partner, and (2) any entity in which such employee or official has a "financial interest" (as defined in Section 2-156-010).

   (c)   The Commissioner is authorized to promulgate rules and prepare forms to effectuate the purposes of this section in conformity, to the extent applicable, with subsection (c) of Section 2-44-050.

(Added Coun. J. 11-14-18, p. 90308, Art. I, § 1)

2-44-120 Federally assisted housing preservation.

   (A)   Title. This section shall be referred to as the Affordable Housing Preservation Ordinance.

   (B)   Definitions. As used in this section:

   "Affordability preservation agreement" means an agreement between the owner and a purchaser: (i) in which the purchaser agrees to maintain the development in a manner that preserves the development’s existing affordability restrictions, or (ii) that would qualify the development as affordable housing as defined in the Illinois Affordable Housing Act, and (iii) in which the affordability restrictions set forth in the agreement are memorialized in covenants running with the land, in a form approved by the Commissioner, enforceable by the City as a third party beneficiary. The affordability restrictions in each affordability preservation agreement shall extend for a period as shall be agreed to by the owner and the purchaser and which shall be not less than ten (10) years from the date of the sale or disposition of the development.

   "Affordability restrictions" means limits on rents that owners may charge for occupancy of a rental unit in assisted housing and limits on tenant income for persons or families seeking to qualify as tenants in assisted housing.

   "Assisted housing" or "assisted housing development" or "development" means a rental housing development, or a mixed-use development that includes rental housing, that receives government assistance under any of the following programs:

      (1)   new construction, substantial rehabilitation, moderate rehabilitation, property disposition and loan management set-aside programs, or any other program providing project-based rental assistance, under Section 8 of the United States Housing Act of 1937, as amended;

      (2)   the Below-Market-Interest-Rate Program under Section 221(d)(3) of the National Housing Act;

      (3)   Section 236 of the National Housing Act;

      (4)   Section 202 of the National Housing Act;

      (5)   Programs for rent supplement assistance under Section 101 of the Housing and Urban Development Act of 1965, as amended;

      (6)   Programs under Section 514 or 515 of the Housing Act of 1949;

      (7)   Section 42 of the Internal Revenue Code.

   "Bona fide offer" means an offer evidenced by a purchase contract reflecting a sales price and an earnest money deposit equal to at least 5 percent of the sales price identified in the purchase contract.

   "Federally Assisted Housing Preservation Act" or "Act" or "State Act" means the Federally Assisted Housing Preservation Act, codified at 310 ILCS 60/1, et seq., as amended.

   "H.U.D." means the United States Department of Housing and Urban Development.

   "Just cause eviction" means any eviction for serious or repeated violations of the terms and conditions of a lease or occupancy agreement, or for violation of applicable federal, state or local laws or for other good cause.

   "Non-qualified entity" means any person or entity that is not a qualified entity.

   "Owner(s)" means the person, partnership, corporation, limited liability company or other legal entity that holds title to an assisted housing development.

   "Prepay" or "prepay the mortgage" or "prepayment" means the payment in full or refinancing of the federally insured or federally held mortgage indebtedness prior to its original maturity date, or the voluntary cancellation of mortgage insurance, on an assisted housing development described in paragraph (2), (3) or (4) of the definition of "assisted housing" set forth in this subsection, that would have the effect of removing the affordability restrictions applicable to the assisted housing development under the programs described in paragraph (2), (3) or (4) of the definition of "assisted housing" set forth in this subsection.

   "Qualified entity" means any person or entity deemed to be a qualified entity by the Commissioner pursuant to subsection (I) of this section.

   "Substantial deviation" means any substitution of parties to a contingent sales agreement; any change in sales price of greater than 2 percent; any change in the terms of any owner financing; any change in the allocation of escrow or other fees or costs amongst the parties to the agreement; or any other substantive change to the terms of sale that alters the relative financial position of the parties to the agreement.

   "Terminate" or "terminate participation in the federal program" or "termination" means:

      (1)   the expiration or early termination of an assisted housing development’s participation in a federal subsidy program for assisted housing described in paragraph (1) of the definition of "assisted housing" set forth in this subsection; or

      (2)   the expiration or early termination of an assisted housing development’s affordability restrictions described in Section 42(g) of the Internal Revenue Code for assisted housing described in paragraph (7) of the definition of "assisted housing" set forth in this subsection, when that event results in an increase in tenant rents, a change in the form of subsidy from project-based to tenant-based, or a change in the use of the assisted housing development to a use other than rental housing.

   (C)   Notification to Department – Required when. If the owner of an assisted housing development intends to prepay the mortgage, or to terminate participation in the federal program, or to sell or otherwise dispose of an assisted housing development, such owner shall so notify the Department. Such notification shall be given to the Department on the same date that the owner provides or is required to provide such notification to all tenants of the development under the Federally Assisted Housing Preservation Act. Provided, however, that if an owner is not required under Section 8 of the Act to provide notice to tenants of the owner’s intent to prepay the mortgage, or to terminate participation in the federal program or to sell or otherwise dispose of the development, the owner shall provide notice to the Department in accordance with the requirements of subsection (F) of this section.

   The notice required by this subsection shall be delivered in person or mailed to the Commissioner by certified mail, return receipt requested, on a form provided by the Department, and shall contain the following information: (1) the name, address and telephone number of each owner of the development; (2) the address of the development; (3) the nature of the subsidy maintaining the affordability of the development; (4) whether the owner is exempt under Section 8 of the Federally Assisted Housing Preservation Act from providing a notice of intent to tenants, and if exempt, the basis for the exemption; (5) a description of the development, including the number of units comprising the development and the number of bedrooms within each unit; (6) the date on which the owner intends to prepay, terminate, sell or otherwise dispose of the development; (7) a complete and detailed list of all existing affordability restrictions applicable to the development and the units to which these restrictions apply; (8) the development’s current rent roll, including each unit number and the monthly rent charged for each unit; (9) the number and location of vacant units in the development; (10) a statement of the development’s vacancy rate during the preceding 12 months; (11) a statement of the development’s current income and operating expenses; (12) itemized lists of the development’s capital expenditures in each of the two preceding calendar years; (13) the amount of project reserves; (14) copies of all financial and physical inspection reports filed with federal, state or local agencies; (15) if the owner intends to sell or otherwise dispose of the development, the owner’s asking price for the development; (16) a complete and detailed list of all affordability restrictions, if any, applicable to the planned disposition of the development; and (17) any other information that the Commissioner may require.

   (D)   Unlawful act – Exceptions. If, after an owner notifies or is required to notify under the Federally Assisted Housing Preservation Act the tenants of an assisted housing development of the owner’s intent to prepay the mortgage, or to terminate participation in the federal program or to sell or otherwise dispose of the development, and the tenants of such development (1) do not exercise their right under the Act to form a tenant association, or (2) fail to provide notice to the owner pursuant to Sections 4 or 6 of the Act, or (3) fail to meet any of the requirements of Section 7 of the Act, then it shall be unlawful for the owner to sell or otherwise dispose of the development to any qualified entity or non-qualified entity except in conformity with the requirements of subsection (E) of this section. Provided, however, that this prohibition on the sale or disposal of the development to a non-qualified entity shall not apply if the owner enters into an affordability preservation agreement, as defined in subsection (B) of this section, with a non-qualified entity.

   (E)   Contingent sales agreement – Right of first refusal – Required when. An owner may negotiate with any non-qualified entity that is interested in purchasing an assisted housing development. Provided, however, that any agreement of sale executed between the owner and such non-qualified entity shall be contingent upon the right of first refusal of a qualified entity, unless the owner enters into an affordability preservation agreement, as defined in subsection (B) of this section, with a non-qualified entity.

   The contingent sales agreement required by this subsection shall contain the essential terms of the sale, including, at a minimum, the right of first refusal of a qualified entity; the sales price; the terms of seller financing, if any, including the amount, the interest rate and the amortization rate thereof; the terms of assumable financing, if any, including the amount, the interest rate and the amortization rate thereof; and, if applicable, any proposed improvements to the property to be made by the owner in connection with the sale.

   Upon execution of such contingent sales agreement, the owner shall provide the Commissioner with a copy of the agreement, which shall be a public record. Upon receipt of the contingent sales agreement, the Commissioner shall immediately make a copy of such agreement available to all qualified entities for their review and consideration. Such qualified entities shall have a period of 120 days, measured from the date of receipt by the Commissioner of a contingent sales agreement meeting the requirements of this subsection, to make a bona fide offer to the owner to purchase the affordable housing development from the owner on terms that are economically substantially identical to the terms of the contingent sales agreement submitted by the owner pursuant to the requirements of this subsection.

   If, within the 120-day period provided for in this subsection, a qualified entity makes a bona fide offer to the owner to purchase the affordable housing development from the owner on terms that are economically substantially identical to the terms of the contingent sales agreement and agrees to close on the sale within 120 days from the date the parties sign the contract to purchase the development, the owner shall sell the affordable housing development to the qualified entity upon those terms. If more than one qualified entity submits an offer to purchase the affordable housing development, the owner shall select from among such offers and shall sell the development pursuant to the terms of the selected offer. The owner shall enter into an affordability preservation agreement with the qualified entity purchasing the affordable housing development. Nothing in this subsection shall be construed to require any owner to extend any form of owner financing to a qualified entity.

   If, within the 120-day period provided for in this subsection, a qualified entity fails to make a bona fide offer to the owner to purchase the affordable housing development from the owner on terms that are economically substantially identical to the terms of the contingent sales agreement, or fails to agree to close on the sale within 120 days from the date the parties sign the contract to purchase the development, or fails to close on the sale within 120 days of such date, the owner may sell the development to the non-qualified entity identified in the contingent sales agreement submitted by the owner in accordance with the requirements of this subsection. Provided, however, that any substantial deviation in the terms of sale from those set forth in such contingent sales agreement or the failure of the non-qualified entity identified in such contingent sales agreement to close on the sale of the development shall require the owner to resubmit any new terms of sale to the Commissioner for distribution to all qualified entities in conformity with the requirements of this subsection.

   (F)   Duties of owners exempt from compliance with the State Act. Except as otherwise provided in subsection (G) of this section, if an owner is not required under Section 8 of the Federally Assisted Housing Preservation Act to provide notice to tenants of the owner’s intent to prepay the mortgage, or to terminate participation in the federal program, or to sell or otherwise dispose of the assisted housing development, such owner shall provide such notice to the Department, not less than 12 months before the prepayment, termination, sale or disposal occurs, in conformity with the applicable requirements of subsection (C) of this section. It shall be unlawful for such owner to sell an affordable housing development to any qualified entity or non-qualified entity except in accordance with the requirements of subsection (E) of this section. Provided, however, that this prohibition on the sale or disposal of the development to a non-qualified entity shall not apply if the owner enters into an affordability preservation agreement, as defined in subsection (B) of this section, with a non-qualified entity.

   (G)   Exceptions. Notwithstanding any other provision of this section, the requirements of this section shall not apply to: (1) any sale or other disposition of assisted housing in a manner pursuant to which the development, after the sale or other disposition, continues to be assisted housing as defined in subsection (B) of this section; or (2) any government taking of an assisted housing development by eminent domain or negotiated purchase; or (3) any forced sale of a development to an entity not affiliated with the owner pursuant to a foreclosure; or (4) any other involuntary sale, transfer or other disposition of assisted housing which occurs without the consent (whether direct, indirect, express or implied) of the owner of such assisted housing.

   (H)   Duties of owner relative to existing tenancies. To the extent allowed by H.U.D., an owner shall: (1) maintain in good standing any available H.U.D. Section 8 contract, executed pursuant to the United States Housing Act of 1937, as amended, during the notice period set forth in subsection (C) of this section and during both of the 120-day periods identified in subsection (E) of this section; and (2) refrain from taking any action, other than notifying H.U.D. of the owner’s intention to prepay the mortgage, or to terminate participation in the federal program or to sell or otherwise dispose of the development, that would preclude a qualified entity or other potential purchaser of the development from succeeding to the contract or negotiating with the owner for purchase of the development during the time periods set forth in item (1) of this subsection. No owner shall disturb any tenancy, other than for a just cause eviction, during the time periods set forth in item (1) of this subsection.

   (I)   Duties of the Commissioner – Qualified entities – Eligibility criteria. The Commissioner shall establish and maintain a list of qualified entities who are interested in and capable of maintaining an assisted housing development in a manner that preserves the development’s existing affordability restrictions or qualifies the housing development as affordable housing within the meaning of the Illinois Affordable Housing Act. No entity shall be deemed to be a qualified entity by the Commissioner, unless such entity is capable of demonstrating compliance with the following eligibility criteria:

      (1)   a history of providing safe and sanitary affordable housing services;

      (2)   sufficient capacity to provide additional affordable housing services in the City, demonstrated through the adequacy of current fiscal and administrative resources;

      (3)   a history of encouraging and facilitating resident participation while providing affordable housing services;

      (4)   a history of sound fiscal management of affordable housing services; and

      (5)   adoption of, and compliance with, standards of financial accountability that conform to applicable state and/or federal law.

   The Commissioner shall: (i) ensure that all notices and contingent sales agreements received by the Department from owners pursuant to the requirements of this section are posted on the City of Chicago website without delay; (ii) periodically notify owners of assisted housing developments of the owner’s duties and obligations under this section; and (iii) remove from the list of qualified entities any entity that fails to continue to meet the eligibility criteria set forth in items (1) through (5) of this subsection.

   (J)   Rules. The Commissioner shall have the authority to promulgate rules necessary to implement the requirements of this section.

   (K)   Penalties. Any person who violates this section shall be fined not less than $200.00 nor more than $1,500.00 for each offense. Each day that a violation continues shall constitute a separate and distinct offense to which a separate fine shall apply.

   (L)   Private right of action. Any aggrieved person, including but not limited to any tenant or tenant association, may enforce the provisions of this section by means of a civil action in which the court may provide injunctive relief or award treble damages and the plaintiffs court costs and reasonable attorney fees.

   (M)   Remedies cumulative. The penalties and remedies provided in this section shall be in addition to any other penalty or remedy provided by law.

(Added Coun. J. 11-14-18, p. 90308, Art. I, § 1)

2-44-130 Condominium conversion of subsidized rental property.

   (A)   If the owner of a property containing subsidized housing records a declaration pursuant to the requirements of the Condominium Property Act, codified at 765 ILCS 605/1, et seq., as amended, such owner shall so notify the Department. Such notification shall be given to the Department on the same date that the owner records or is required to record the declaration. The notice required by this section shall be delivered in person or mailed to the Commissioner by certified mail, return receipt requested, on a form provided by the Department, and shall contain the following information: (1) whether the property owner has notified the tenants of the property identified in the declaration that a declaration has been filed, and, if so, the date the tenants were so notified; (2) the estimated time frame of conversion; (3) whether the owner has a relocation plan for tenants, and, if so, the nature of the plan; and (4) whether federal funds are being used for the conversion, and, if so, the nature of the federal funds, including any affordability restrictions on the use of such funds. Upon receipt of the notice, the Commissioner shall immediately make a copy of such notice available to any entity designated as a qualified entity pursuant to Section 2-44-120 of this Code. Any person who violates this section shall be fined not less than $500.00 nor more than $1,500.00 for each offense. Each day that a violation continues shall constitute a separate and distinct offense.

   (B)   As used in this section:

   "Declaration" means the declaration referred to in the Condominium Property Act.

   "Subsidized housing" means any housing or unit of housing subject to a Section 8 contract with the United States Department of Housing and Urban Development entered into pursuant to Section 8 of the United States Housing Act of 1937, as amended.

(Added Coun. J. 11-14-18, p. 90308, Art. I, § 1)

2-44-135 Demolition permit surcharge ordinance.

   (a)   Title. This section shall be known as the Demolition Permit Surcharge Ordinance. The surcharge imposed by this section shall be known as the Demolition Permit Surcharge and is imposed in addition to all other fees, surcharges and taxes imposed by the City of Chicago, the State of Illinois, or any other municipal corporation or political subdivision of the State of Illinois.

   (b)   Definitions. As used in this section:

   "Area Median Income" has the meaning ascribed to that term in Section 2-44-080(B).

   "Building" has the meaning ascribed to that term in Section 17-17-0223.

   "CCLT" means the Chicago Community Land Trust, as defined in Section 2-44-080(B).

   "Coach house" has the meaning ascribed to that term in Section 17-17-0234.6.

   "Demolition" means any activity requiring a permit pursuant to Section 14A-4-407.

   "Demolition Permit Surcharge" or "surcharge" means the Demolition Permit Surcharge established under subsection (c) of this section.

   "Detached house" has the meaning ascribed to that term in Section 17-17-0246.

   "Dwelling unit" has the meaning ascribed to that term in Section 17-17-0248.

   "Multi-unit residential" has the meaning ascribed to that term in Section 17-17-0299.

   "Permit" has the meaning ascribed to that term in Section 14A-2-202.

   "Pilot area" means:

      A.   All parcels located in the boundaries identified in Section 17-7-0580; and

      B.   All parcels located in the boundaries identified in Section 17-7-0590.

   "Townhouse" has the meaning ascribed to that term in Section 17-17-02179.

   "Two-flat" has the meaning ascribed to that term in Section 17-17-02184.

   (c)   Demolition permit surcharge imposed. Pursuant to 65 ILCS 5/11-42-1, the following Demolition Permit Surcharge is hereby imposed on the issuance of any permit for demolition that includes one or more dwelling units located in either of the pilot areas, except as otherwise provided in subsection (e):

      (1)   $60,000 for the demolition of a detached house, townhouse, or two-flat; and

      (2)   $20,000 per dwelling unit for the demolition of a coach house or multi-unit residential building.

   (d)   Payment. Prior to the issuance of any permit for demolition of any building subject to the Demolition Permit Surcharge, the applicant, who shall be a demolition contractor, shall pay to the Department of Finance an amount equal to the surcharge required under subsection (c) of this section. No permit for demolition of any building subject to such surcharge shall be issued by the Department of Buildings until: (i) the applicant for such permit provides the Department of Housing with a copy of the receipt of payment issued by the Department of Finance showing that the surcharge has been paid; and (ii) the Department of Housing provides written notification of such fact to the Department of Buildings.

   (e)   Exemptions. The surcharge required under this section shall not apply if:

      (1)   At least 50 percent of the dwelling units in any building replacing the building subject to subsection (c) will be restricted to households earning up to 60 percent of the Area Median Income, as evidenced by documentation required by the Department of Housing; or

      (2)   The demolition of the building is determined to be necessary to remedy conditions imminently dangerous to life, health or property, as evidenced by a written order issued by the Department of Buildings, the Department of Public Health, the Fire Department or a court of competent jurisdiction.

   (f)   Deposit and use of revenue. The revenue generated by the surcharge shall be deposited in the Affordable Housing Opportunity Fund described in Section 2-44-085(I) unless such revenue is required to be deposited into another fund pursuant to federal or state law. Such revenue shall be reserved and utilized to pay the administrative costs and expenses of implementing this section and, after subtracting such costs and expenses, transferred to the Department of Housing and allocated to the CCLT. The CCLT shall apply such revenue toward the construction, rehabilitation, or preservation of affordable housing in direct proportion to the revenue collected in each pilot area.

   (g)   Duration. The surcharge required under this section shall be in effect through December 31, 2029. At least 150 days prior to such date, the Department of Housing shall submit to the City Council Committee on Housing and Real Estate a written report identifying the amount of revenue generated under this section; its observed effect on development activity in the applicable pilot area; and any other information that the Committee may require.

   (h)   Rules. The Commissioner is authorized to promulgate rules necessary or appropriate to implement this section.

   (i)   Application of uniform revenue procedures ordinance. Whenever not inconsistent with the provisions of this section or whenever this section is silent, the provisions of the Uniform Revenue Procedures Ordinance, Chapter 3-4 of this Code shall apply and supplement this section.

(Added Coun. J. 3-24-21, p. 28494, § 2; Amend Coun. J. 3-23-22, p. 45493, § 3; Amend Coun. J. 3-20-24, p. 10236, § 3; Amend Coun. J. 9-18-24, p. 16736, § 1)

Editor's note – Coun. J. 3-24-21, p. 28494, § 3, as amended by Coun. J. 3-23-22, p. 45493, § 2, and Coun. J. 3-20-24, p. 10236, § 2, provides: “This ordinance shall take full force and effect on April 1, 2021 and shall expire and be repealed of its own accord, without further action by the City Council, on December 31, 2024. This ordinance shall apply to permits applied for, on and after the effective date as well as permits applied for before the effective date, but which have not been issued by such date.”

2-44-140 Debt waiver.

   Notwithstanding any other inconsistent or contrary provision of this Code, following consultation with the Commissioner of Buildings, the Commissioner of Housing is authorized to waive any debt and release associated liens for any residential or mixed-use building that is included in a Department of Housing initiative or program that supports neighborhood revitalization efforts and is subject to an abatement proceeding under Section 14A-3-313. The Comptroller and Corporation Counsel shall coordinate with the Commissioner of Housing to ensure that the approved waiver is executed.

   Approval by the Commissioner of Housing for the removal of City debt shall take into consideration whether the waiver will: (i) promote the redevelopment and re-occupancy of a specific vacant or abandoned building; (ii) support neighborhood development and stabilization efforts; (iii) improve the health, safety, and welfare of the surrounding community; and (iv) encourage City revitalization.

   For purposes of this subsection only, "debt" means a sum of money owed to the City, including, but not limited to, (i) any water or sewer assessment, or (ii) any obligation or payment of a sum of money owed to the City pursuant to a court order or an order of the Department of Administrative Hearings. Provided, however, the term "debt" shall not include property tax debt.

(Added Coun. J. 12-14-22, p. 58278, Art. VII, § 2)

2-44-145 Loan and grant restructuring.

   (a)   The Commissioner is authorized to restructure the terms and conditions of the City’s loans and grants executed by the Commissioner, subject to compliance with all applicable federal laws and regulations, including, but not limited to: (i) loan payment deferment; (ii) loan modification; (iii) loan forbearance; (iv) forgiveness of default interest, overdue interest and fees; (v) conversion of a loan to a grant in compliance subsection (h) of this section; (vi) subordination of the City’s lien to a lien securing new financing that is senior to the City’s loan or grant; (vii) amendments and/or subordination agreements requested by the United States Department of Housing and Urban Development; and (viii) consent to a change of the general partner or managing member of a borrower or grantee, as applicable, when the Commissioner makes a written finding that a restructuring as described in the foregoing (a)(i) – (viii) is likely to: (1) improve the City’s financial position in connection with the applicable development; (2) preserve or otherwise promote affordable housing; or (3) result in significant improvement in the physical conditions of the affordable housing in connection with the applicable development.

   (b)   Upon making a written finding, the Commissioner shall notify the aldermen of the affected wards of such finding.

   (c)   The Commissioner is authorized, subject to the approval by the Corporation Counsel as to form and legality, to enter into and execute such agreements and instruments, and perform any and all acts as shall be necessary or advisable in connection with the restructuring of any City loan or grant, subject to the requirements of subsection (a) of this section.

   (d)   In connection with a loan or grant restructuring, the Commissioner is authorized:

      (1)   to purchase on behalf of the City, for a price to be determined by the Commissioner to be in the best interests of the City, any interest of any other lender in connection with the financing of any development, subject to appropriation and availability of funds; and

      (2)   to transfer, either without payment or for a price to be determined by the Commissioner to be in the best interests of the City, any City loan or grant, as well as the related lien and regulatory agreement, in connection with the development.

   (e)   If any action in connection with a restructuring generates revenue for the City, such revenue is hereby appropriated and the Commissioner is authorized to expend such revenue for any purpose, subject to applicable federal, state or local laws and regulations governing such funds, which promotes affordable housing, as determined by the Commissioner.

   (f)   The Commissioner shall submit information on each loan or grant restructuring which is completed under this section as part of the Department’s quarterly report to the Mayor and the City Council.

   (g)   Notwithstanding anything to the contrary contained in the Code or any other ordinance or mayoral executive order, in connection with a City loan or grant restructuring pursuant to this section, no parties shall be required to provide to the City the document commonly known as the “Economic Disclosure Statement and Affidavit” (or any successor to such document), except for the borrower or grantee, as applicable, as of the date following the closing date of any such restructuring, all legal entities who constitute the direct or indirect controlling parties of such borrower or grantee (as determined by the Corporation Counsel), and any legal entities which are direct owners in excess of 7.5 percent of such borrower or grantee which changed in connection with the restructuring.

   (h)   For any conversion of a loan to a grant pursuant to subsection (a)(v) of this section, the Commissioner is only authorized to restructure the loan if the following requirements are met:

      (1)   The amount of the loan must not exceed $500,000.

      (2)   The borrower must have no outstanding compliance issues.

      (3)   The borrower must fulfill all regulatory obligations.

(Added Coun. J. 9-18-24, p. 16501, § 1)

2-44-150 Authority to modify loan terms.

   The Commissioner is authorized to make modifications to loan terms when changes to such terms occur before the execution of the loan agreement and within 120 days of the effective date of an ordinance that approved such terms. Loan term modifications authorized under this section shall be limited to changes to interest rates, maturity dates, or increases in loan amounts up to $75,000.

(Added Coun. J. 9-18-24, p. 16501, § 2)