Explanation
BACKGROUND: This legislation authorizes the consent to the assignment and assumption of a loan of HOME funds by Columbus Housing Partnership from Emerald Glen Housing Limited Partnership to Emerald Glen Housing Rehab, LLC. The City made a HOME loan to Columbus Housing Partnership in April 1994 (“1994 HOME Loan”). Columbus Housing Partnership in turn made a loan to Emerald Glen Housing Limited Partnership and assigned its rights under the loan to the City. This loan is to be assigned to and assumed by Emerald Glen Homes Rehab, LLC. This legislation also authorizes this transfer to occur at the time of closing, and that the existing loan’s maturity date be re-set at 30 years from the date of transfer to align with the term of the new HOME loan authorized by ordinance 1684-2025.
Under Ordinance 1684-2025, approved by Columbus City Council on July 14, 2025, the Director of the Department of Development is authorized to enter into a commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant with Emerald Glen Homes Rehab LLC., in an amount up to $500,000.00 for the Emerald Glen apartments rehab project.
The Columbus Housing Partnership would like to assign the loan package authorized previously to Emerald Glen Homes Rehab, LLC which will assume the liability and responsibilities under the loan.
Emergency Designation: An emergency action is needed in order for the assignment of the property’s HOME loan from the City to Columbus Housing Partnership to Emerald Glen Housing Limited Partnership to Emerald Glen Homes Rehab, LLC to occur at the time of closing, and that the existing loan’s maturity date be re-set at 30 years from the date of transfer to align with the term of the new HOME loan authorized by ordinance 1684-2025.
Contract Compliance: the vendor number is 052643 and expires on 05/21/2027
Title
To authorize the Director of Development to consent to the assignment and assumption of a loan of HOME funds by Columbus Housing Partnership from Emerald Glen Housing Limited Partnership to Emerald Glen Housing Rehab, LLC; to authorize the re-setting of the loan maturity date to 30 years from the date of the property transfer from Emerald Glen Housing Limited Partnership to Emerald Glen Housing Rehab, LLC to align with the term of the new HOME loan authorized by Ordinance No. 1684-2025; and to declare an emergency. ($0.00)
Body
WHEREAS, the Director of Development executed a loan package with Columbus Housing Partnership which then made a loan to Emerald Glen Housing Limited Partnership and assigned the loan to the City; and
WHEREAS, Columbus Housing Partnership would like to assign the existing loan package from Emerald Glen Housing Limited Partnership to Emerald Glen Homes Rehab LLC and City approval is required; and
WHEREAS, Ordinance No. 1684-2025 approved by Columbus City Council on July 14, 2025 authorized the Director of the Department of Development to enter into a commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant with Emerald Glen Homes Rehab LLC., in an amount up to $500,000.00 for the Emerald Glen apartments rehab project.
WHEREAS, an emergency exists in the usual and daily operation of the Department of Development in that it is immediately necessary to assign the documents in order for the assignment to occur at closing and all documents be in alignment to assure the property remains affordable, for the immediate preservation of the public health, peace, property, safety, and welfare; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Development is authorized to execute any documents necessary to consent to the assignment and assumption of the loan by Columbus Housing Partnership to Emerald Glen Housing Limited Partnership to Emerald Glen Homes Rehab, LLC for the redevelopment of the Emerald Glen rental project in Columbus, and to consent to the re-setting of the 1994 HOME Loan maturity date to 30 years from the date of closing on the transfer of property from Emerald Glen Housing Limited Partnership to Emerald Glen Homes Rehab, LLC, to better align with the maturity date of the HOME Loan authorized by Ordinance No. 1684-2025.
SECTION 2. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.