Explanation
BACKGROUND: This legislation releases and forgives a portion of the recorded interest of the City of Columbus on the property located at 1949 Floral Avenue, Columbus, Ohio 43223. The loan was made through the Housing Assistance Program with Community Development Block Grant (CDBG) Funds through the City of Columbus, Department of Trade and Development, now known as the Department of Development. This loan was made to a low-to-moderate income (80% or below area median income) family for the repair of the property and, at the time of the loan, oversight of this repair was under the direction of Greater Hilltop Community Development Corporation. The loan was at 0% interest and was due upon sale or transfer of the property. The work completed on the property owned by Amelia Butler, was completed in 1997 at a cost of $6,002.00. Recently Ms. Butler requested to payoff the loan so that she could refinance her mortgage to allow for repairs to be made to her home. She is only able to pay $1,700.00. After inspection of the home by City staff, it was determined that the repairs are necessary for the home and Ms. Butler's financial condition is such that the offer of $1,700.00 is believed to be fair and reasonable.
Emergency action is requested so that Ms. Butler can refinance her home and do necessary repairs during the construction season.
FISCAL IMPACT: No funding is required for this legislation. There will be a loss of $4,302.00 in accounts receivable for the Community Development Block Grant Fund.
Title
To authorize the Director of the Department of Development to release the recorded interest of the City of Columbus on the property located at 1949 Floral Avenue, Columbus, Ohio 43223 on a loan made through the Housing Assistance Program with Community Development Block Grant (CDBG) Funds through the City of Columbus; and to declare an emergency.
Body
WHEREAS, the Department of Development has an outstanding loan balance totaling $6,002.00 to Ms. Amelia Butler, 1969 Floral Avenue, Columbus, Ohio for the repair of her property through the Housing Assistance Program with Community Development Block Grant (CDBG) Funds; and
WHEREAS, the owner, Ms. Amelia Butler has requested a short pay of $1,700.00 and release of the lien on the property, and
WHEREAS, this legislation would release and forgive $4,302.00 of the loan upon payment of the $1,700.00, and
WHEREAS, this loan was made through the Housing Assistance Program with Community Development Block Grant (CDBG) Funds through the City of Columbus, Department of Trade and Development, now known as the Department of Development; and
WHEREAS, this loan was made to a low-to-moderate income (80% or below area median income) family for home repairs on the properties with a mortgage and terms that the loan would be repaid upon sale or transfer of the property, and
WHEREAS, City staff has inspected the home and found the requested repairs to be warranted and Ms. Butler's financial condition is such that payment of $1,700 is believed to be fair and reasonable, and
WHEREAS, the homeowner has agreed to pay $1,700.00 toward the $6,002.00 loan leaving $4,302.00 to be forgiven, and
WHEREAS, no funding is required by this legislation but there will be a loss of $4,302.00 in accounts receivable for the Community Development Block Grant Fund; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development, Housing Division, in that it is immediately necessary to authorize the Director of the Department of Development to release the recorded interest of the City of Columbus on the property located at 1949 Floral Avenue, Columbus, Ohio 43223 to allow the homeowner to refinance her home and do necessary repairs during the construction season, all for the 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 be and is hereby authorized to release the recorded interest for the sum if $1,700.00 payable to the City of Columbus and forgiveness of the remaining loan balance of $4,302.00. There will be a loss of $4,302.00 in accounts receivable for the Community Development Block Grant Fund.
Section 2. That for the reasons stated in the preamble thereto, which is hereby made a part hereof, this Ordinance is 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.