Explanation
BACKGROUND: This legislation releases and forgives the recorded interest of the City of Columbus on the property located at 905 East Livingston Avenue, Columbus, Ohio 43205. 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. The loan was at 0% interest and was due upon sale or transfer of the property. The work completed on the property owned by Laura Williams, was completed in 2014 at a cost of $4,486.00. Ms. Williams had a loan from 1999 for $10,100.00 that she paid off in full but she requested to payoff that the 2014 loan be forgiven. She was able to sell her Livingston Avenue home and her real estate agent agreed to escrow a portion of her commission on the sale so that she could sell her home and reinvest the proceeds in a one story home that would better serve her health needs.
Emergency action is requested so that Ms. Williams can complete payment of the real estate commission for the sale of her home.
FISCAL IMPACT: No funding is required for this legislation. There will be a loss of $4,486.00 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 905 E Livingston Avenue, Columbus, Ohio 43205 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 $4,486.00 to Ms. Laura Williams, 905 East Livingston 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. Laura Williams has requested that the loan be released on the property, and
WHEREAS, this legislation would release and forgive $4,486.00 of the loan, 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 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, the homeowner has paid another loan from the City on the property for $10,100.00, and
WHEREAS, no funding is required by this legislation but there will be a loss of $4,486.00 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 905 East Livingston Avenue, Columbus, Ohio 43205 to allow the homeowner to fully pay the real estate commission to her realtor for the sale of the home, 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 payable to the City of Columbus and forgive the loan balance of $4,486.00. There will be a loss of $4,486.00 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.