Little Rock board asks staff to prepare ordinance for up to $7.5 million loan to housing authority to avert Madison Heights foreclosure

The Little Rock Board of Directors on May 13 instructed city staff to prepare an ordinance that would authorize a loan of up to $7.5 million to the Metropolitan Housing Alliance (MHA) as one of two options to address debts tied to Madison Heights 1 and 2 and to avert a foreclosure expected this summer.

A city staff member told the board that the city’s options include a direct loan of up to $7.5 million or a short-term note for roughly $2.5 million to acquire MHA’s corporate office at 100 Bruce T. Moore Way. “We can loan up to 7 and a half million dollars to MHA. We can issue a short term note for up to 2,500,000 to acquire the property at 100 Bruce T. Moore Way,” the staff member said.

The matter drew extended discussion because the city has roughly 90 days from a recent foreclosure hearing to produce a formal financing plan. Mayor Frank Scott Jr. asked staff to prepare the ordinance and related materials for a board vote. “Mr. Sarpe, if you will prepare orders for the $7,500,000 and we'll add that as a modification,” Mayor Scott said.

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