COMMERCE GARDENS INC

COMMERCE GARDENS INC COMMERCE GARDENS, INC., IS A KANSAS NOT-FOR-PROFIT CORPORATION FORMED IN MAY 1970. COMMERCE GARDENS, INC. OWNS AND OPERATES A 102-UNIT LOW-INCOME APARTMENT PROJECT IN HUTCHINSON, KANSAS. COMMERCE GARDENS, INC. IS SPONSORED BY THE HUTCHINSON CHAMBER OF COMMERCE. THE PROJECT, CONSTRUCTED IN 1970, WAS ORIGINALLY FINANCED BY THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) UNDER SECTION 236. THE PROJECT IS SUBJECT TO A SECTION 8 HOUSING ASSISTANCE PAYMENTS (HAP) CONTRACT WITH HUD FOR 70 OF THE UNITS, FROM WHICH A PORTION OF THE PROJECT'S RENTAL INCOME IS RECEIVED. THE PROJECT MAY NOT INCREASE RENTS WITHOUT HUD APPROVAL ON THESE SEVENTY UNITS. THE HAP CONTRACT RUNS THROUGH JUNE 2018 AND IS A NON-MAJOR PROGRAM. THE REMAINING 32 UNITS WERE PREVIOUSLY RENT RESTRICTED AS A RESULT OF THE ORIGINAL SECTION 236 LOAN WHICH WAS PAID OFF IN APRIL 2012 AT THE END OF ITS 40 YEAR LOAN. THESE UNITS ARE CURRENTLY NOT RENT RESTRICTED OR SUBJECT TO TENANT INCOME ELIGIBILITY.