Explanation
BACKGROUND: This legislation authorizes the Director of the Department of Development to modify existing agreements executed between the City, the Affordable Housing Trust for Columbus and Franklin County (AHT) and the Whitney Young Collaborative (WYC) that will allow the sale of the Whitney Young Condominium project to the Columbus Metropolitan Housing Authority (CMHA) subject to the loans provided by the City. The City provided a $3,400,000 loan funded through the Housing Preservation Fund and the Whitney Young Housing Capital Fund. The City also provided funds to the project from the General Government Grant Fund under the HOME Investments Partnership Program. CMHA will complete construction of all 28 units in the project and offer them for sale and rent on a market rate basis with the exception of two affordable units supported by the HOME funds. Upon sale of the project to CMHA, AHT will be released from its obligations to the City for management of the project. The $3,400,000 loan provided by the City to the project will remain outstanding until each unit is completed and occupied by a renter or purchaser. Upon occupancy of each unit, a ratable share of the loan attributable to each unit will be released.
FISCAL IMPACT: No additional funding is required for this legislation. Release of AHT from its obligations to the City for the project, transfer of ownership of the project, provision to allow debt release for units successfully completed and occupied.
Title
To authorize and direct the Director of the Department of Development to modify existing agreements between the City, the Affordable Housing Trust for Columbus and Franklin County and the Whitney Young Collaborative.
Body
WHEREAS, the Department of Development, has entered into agreements with the Affordable Housing Trust for Columbus and Franklin County and the Whitney Young Collaborative to loan $3,400,000 in funds from the Housing Preservation Fund and Whitney Young Housing Capital Fund; and
WHEREAS, the Columbus Metropolitan Housing Authority has expressed an interest in acquiring the Whitney Young Condominium project so that it may complete all 28 units and market the units for sale and rent on a market rate basis, with the exception of two affordable units supported by the HOME funds, provided it may take ownership of the site subject to existing debts, including the City loans, of the project; and
WHEREAS, upon transfer of the project to Columbus Metropolitan Housing Authority, the duties of the Affordable Housing Trust for Columbus and Franklin County will be complete and no additional services will be required; and
WHEREAS, Columbus Metropolitan Housing Authority has requested that the City modify its $3,400,000 loan to allow for release of the debt on a ratable basis as each unit is completed and occupied;
WHEREAS, allowing this transfer to Columbus Metropolitan Housing Authority to occur subject to the existing debt by Columbus Metropolitan Housing Authority and providing for a restructure of the existing debt will allow for completion of the project and full occupancy of the units on a more timely basis; and 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 modify agreements with Affordable Housing Trust for Columbus and Franklin County and the Whitney Young Collaborative to allow for the sale of the Whitney Young Condominium Development to Columbus Metropolitan Housing Authority subject to the City loans.
Section 2. That the Director of the Department of Development be and is hereby authorized to modify the $3,400,000 City loan to allow for forgiveness of a ratable portion of the debt as each unit is completed and occupied.
Section 3. That the Director of the Department of Development be and is hereby authorized to modify the agreement with the Affordable Housing Trust for Columbus and Franklin County to provide that upon sale of the project to Columbus Metropolitan Housing Authority subject to the City loans no additional services are required from the Affordable Housing Trust for Columbus and Franklin County on this project.
Section 4. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.