Explanation
BACKGROUND: This legislation authorizes the unplanned modification of a HOME Investment Partnerships loan package with Nelson Park Preservation Associates LLC, that utilizes the 2019, 2020, 2021, and 2022 HOME Investment Partnerships Program (HOME) entitlement grant funds and HOME Investment Partnerships Program American Rescue Plan (HOME-ARP) from the U.S. Department of Housing and Urban Development (HUD) and authorizes the Director of the Department of Development enter an amended and restated commitment letter, loan agreement, promissory note, mortgage, restrictive covenant, associated with the Nelson Park Apartments development to reflect that the HOME-ARP assisted units will be fixed units within the development versus the floating units that the documents state.
Original Agreement $1,500,000.00 Ord. 1156-2025
Modification No. 1 $ 0.00 Ord. 2471-2025 PO529841
Modification No. 2 $ 0.00
Total $1,500,000.00
Ordinance 1156-2025 modified by 2471-2025, approved by City Council on May 12, 2025 and September 29, 2025, authorized the Director of Development to support the acquisition and rehabilitation of an existing 177-unit affordable housing development in the Eastgate neighborhood on the near east side of the City of Columbus. The redevelopment plan reduced the footprint and population of the property and reduced the buildings from 47 residential buildings to 42 buildings. Theis reduction will cause a decrease in units from 177 to 140 units and this is due to the challenge in managing, operating, and maintaining this large of a property and assuring it remains affordable and that it remains a quality viable property for years to come.
The State of Ohio and the Ohio Housing Finance Authority also has funding within this development and has since required the developer to assign the HOME-ARP funded units to be fixed versus floating units and therefore our documentation with the builder must be reflective of the same. This legislation allows for the amendment and restating of the commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant as needed to restate the units be fixed rather than floating.
This legislation represents appropriation for a part of the HOME-ARP Allocation Plan portion of the City’s 2021 HUD Annual Action Plan which was amended, per Ordinance 0459-2023 as well as the 2019 Annual Action Plan per ordinance 2776-2018, the 2020 Annual Action Plan per ordinance 2162-2019, the 2021 Annual Action Plan per ordinance 2345-2020, and the 2022 Annual Action plan per ordinance 2800-2021.
Emergency Designation: An emergency exists as this unplanned modification is the result of the Ohio Housing Finance Authority requiring that the HOME-ARP assisted units that they are funding be reflective of being fixed units rather than floating units and the City’s documentation must state the same. Delaying the amendment and restating of the documentation will cause a delay in housing those individuals that meet the HOME-ARP requirements as well as impacting the long-term compliance of the property with the HUD.
Contract Compliance: the vendor number is 051189 and expires 12/09/2026
Fiscal Impact: none
Title
To authorize the Director of the Department of Development to enter into an unplanned modification of the HOME and HOME-ARP loan package with Nelson Park Preservation Associates LLC; to authorize the amendment and restating of documents as needed that are to reflect the change in HOME-ARP units being fixed rather than floating units which may include but are not limited to the commitment letter, loan agreement, promissory note, mortgage, restrictive covenant, if applicable; and declare emergency. ($0.00)
Body
WHEREAS, the City of Columbus is a participating jurisdiction of the U.S. Department of Housing and Urban Development; and
WHEREAS, the City of Columbus is the recipient of HOME Investment Partnerships funds from the U.S. Department of Housing and Urban Development; and
WHEREAS, the City of Columbus authorized the support of the acquisition and rehabilitation of the Nelson Park Apartments by Ordinance 1156-2025 and 2471-2025, approved by City Council on May 12, 2025 and September 29, 2025 ; and
WHEREAS, since then the State of Ohio has required the developer to assign the units that are funded with HOME-ARP dollars be assigned fixed units instead of floating and this requires the City to amend and restate the documents with the developer to do the same; 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 of the Department of Development to amend and restate the necessary documents of the HOME and HOME-ARP loan package with the HOME-ARP units being reflective of being fixed units rather than floating units. Any delay in doing this will cause those qualifying individuals that would have been assigned those units to not be housed and will also put the City at risk of not being compliant with HUD, doing so will thereby preserve the public, health, peace, property, safety, and welfare; and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Development is hereby authorized to modify a Home Loan package and execute amended and restated documents as needed that are to reflect the change in HOME-ARP units being fixed rather than floating units which may include but are not limited to the commitment letter, loan agreement, promissory note, mortgage, and restrictive convent if applicable with Nelson Park Preservation Associates LLC., for the Nelson Park Apartments project as required.
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 approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.