The mortgage includes $900,000 to close the agency's existing line of credit, which has ranged from $700,000 to $900,000.
At the recommendation of the organization's auditing firm of BDO Seidman, UICA officials have been working for months to convert the line of credit into a mortgage so that payments go not just for debt service but to reduce the outstanding principal.
The building at 41 Sheldon Ave. SE in Grand Rapids, Michigan's second largest city, is appraised at $3 million.
The remaining $100,000 of the mortgage will go toward investment in revenue-generating projects.
Opened in 1998 at a cost of $2.75 million to buy and renovate, UICA's headquarters in downtown Grand Rapids turned out to be more expensive to operate than initially anticipated. The agency's operating budget rose rapidly from $170,000 the year prior to the move into the new building to $500,000 annually afterward.
Hampered by debt for several years, UICA dramatically scaled back its operations last fall, reducing its operating budget to $450,000 for the year. In August, the institution closed its doors for a month -- both cost-cutting moves.
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