Explanation
BACKGROUND: This ordinance authorizes the Director of Development to modify a promissory note and mortgage held by Blacklick Apartments, LLC.
Waggoner Woods Limited Partnership received a $1,000,000.00 HOME loan from the City of Columbus in March 2003 to construct a 176 unit complex on the Far East side of Columbus. HOME loans made by the City generally require repayment based on cash flow as defined in the operating agreement. If there is positive cash flow, then a portion is returned to the City.
On July 18, 2019, the assets of Waggoner Woods Limited Partnership were acquired by Blacklick Apartments, LLC, which is an affiliate of Preservation of Affordable Housing, Inc. (POAH), a national non-profit organization, and the loan was assumed by Blacklick Apartments, LLC. In 2020, Blacklick Apartments, LLC had a higher than expected cash flow and has requested that the amount that would normally be repaid to the city be reinvested into the complex to address routine maintenance and repair needs. The estimated amount to be reinvested is $67,025.00. To memorialize this, a modification to the promissory note and mortgage are needed.
Emergency action is requested in order to maintain the project schedule for routine maintenance and repair.
Contract Compliance: The vendor number is pending.
Fiscal Impact: There will be a loss of up to $67,025.00 in HOME receivables.
Title
To authorize the Director of Development to modify a promissory note and mortgage with Blacklick Apartments, LLC for the purpose of reinvesting the funds to address routine maintenance and repair needs; and to declare an emergency.
Body
WHEREAS, in March 2003, Waggoner Woods Limited Partnership received a $1,000,000 HOME loans from the City of Columbus to construct a complex 176 units of affordable housing on the Far East side; and
WHEREAS, among the loan terms was a requirement to make payments on the loan to the City of Columbus based on cash flow from the operation of ...
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