Explanation
BACKGROUND: This legislation authorizes a modification to the various loan documents associated with Purchase Order PO455970 with Healthy Rental Homes VIII LLC, authorized by Ordinance No. 3499-2023 passed by Columbus City Council on January 22, 2024. This modification will allow for the correction of the total units funded within the loan package documents from two units to three units. This was a clerical error when drafting the documentation and must be corrected in order to process payment for the correct number of units and to be compliant with all required documents for Department of Housing and Urban Development as this project was funded with HOME Investment Partnerships Program (HOME) grant funding.
Ordinance No. 3499-2023, passed by Columbus City Council on January 22, 2024, authorized the Director of the Department of Development to enter into a commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant with Healthy Rental Homes VIII LLC. It was recently discovered that the loan package documents reflect that the total units authorized for payment of this project with HOME funding was listed as two within the documents when in actuality it was a total of three. This needs to be corrected via a modification of the documents in order to process the correct payment of the three units, all other aspects of the previous ordinance and documents will remain the same.
FISCAL IMPACT: No funding is needed.
Emergency Designation: That an emergency exists as the project has been constructed and it was during the reviewing of the final payment request that the discrepancy within the funded units was noticed and in order to process the final payment and close out the project the documents need to be amended. The delay in payment prevents the final closing of the project and not being compliant with HUD.
Title
To authorize the modification of the various loan documents associated with Healthy Rental Homes VIII LLC, which was authorized by Ordinance No. 3499-2023, to allow for the correction of a clerical error in the total funded units within the documents from two to three; and declare an emergency. ($0.00)
Body
WHEREAS, Ordinance No. 3499-2023, passed by Columbus City Council on January 22, 2024, authorized the Director of the Department of Development to enter into a commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant with Healthy Rental Homes VIII LLC for the construction of rental units; and
WHERAS, it was recently discovered that a clerical error occurred in total units being funded within the HOME loan package documents; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to authorize the Director modify the documents associated with PO455970 to reflect the correct units from two to three in order to be able to process the final payment to the developer, to close out the project, and assure all documents are in compliance with HUD, all 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 hereby authorized to amend the various loan documents associated with Purchase Order PO455970 with Healthy Rental Homes VIII LLC, authorized by Ordinance No. 3499-2023 passed by Columbus City Council on January 22, 2024. to reflect the total authorized units for payment be three instead of two that are listed within the documents due to a clerical error.
SECTION 2. That all other aspects of PO455970 will remain in effect
SECTION 3. 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.