Little Rock board OKs legal pathway to finance Madison Heights but rejects short-term note

The Little Rock Board of Directors voted June 3 to approve a resolution that sets conditions the city wants met before it disburses funds to the Municipal Housing Alliance (MHA) to preserve Madison Heights, but the board rejected a separate ordinance that would have authorized a short-term promissory note to provide those funds.

The board approved Resolution 20 — described at the meeting as the legal “pathway” to make a city loan to MHA — by a 6-2 roll-call vote. The board also approved a $75,000 contract for bond counsel to support proposed financing by the same margin. A follow-up ordinance that would have authorized issuance of a promissory note to finance an acquisition of the property failed on a 5-3 roll call, so no short-term funds were authorized immediately.

Why it matters: Madison Heights houses low-income residents and includes a mix of subsidized and market-rate units. Supporters said a city loan could prevent displacement, while skeptical board members warned the city could become the operator or guarantor of an apartment complex and absorb significant financial risk if projections fall short.

Board action and votes - Item 20 (resolution establishing conditions for the city to provide funds to MHA): Passed, yes 6, no 2. Recorded yes: Director Lewis, Director Adcock, Director Miller, Director Webb, Director Peck, Director Hines. Recorded no: Director Campiris, Vice Mayor Warrick. - Item 21 (contract with Friday Eldridge & Clark LLP to serve as bond counsel, not to exceed $75,000): Passed, yes 6, no 2 (same roll call pattern). - Item 22 (ordinance authorizing…