Explanation
BACKGROUND: This legislation authorizes an amendment to Ordinance No. 3326-2024 passed by Columbus City Council on December 09, 2024, to allow for the correction so that the loan repayment terms be revised within the loan documents and further clarify that the HOME loan repayment will be not be until the maturity date of the loan not based on a percentage of cash flow as the original loan documents state.
Ordinance No. 3326-2024, passed by Columbus City Council on December 09, 2024, authorized the Director of the Department of Development to forgive the principal and accrued interest on a HOME note and mortgage down to $2,000.00 and extend the maturity of the loan to December 31, 2099, as well as reduce the interest rate to 0% for Hilltop II Senior Village (Hilltop II) currently owned by Hilltop II Senior Housing Limited Partnership which is wholly owned by National Church Residences. It was recently discovered that the ordinance did not convey the revised loan repayment schedule to reflect that the repayment will not be based on a percentage of cash flow as the original loan documents state but will be at the maturity date of the loan. All other aspects of the ordinance remain the same.
Title
To amend Ordinance No. 3326-2024, to allow for the correction so that the HOME loan repayment terms be revised within the loan documents and further clarify that the HOME loan repayment will not be until the maturity date of the loan rather than on a percentage of cash flow as the original loan documents state. ($0.00)
Body
WHEREAS, Ordinance No. 3326-2024, passed by Columbus City Council on December 09, 2024, authorized the Director of the Department of Development to forgive $553,000.00 of principal and all the accrued interest totaling approximately $932,933.00 for the City HOME loan to Hilltop II Senior Housing Limited Partnership and reduce it to $2,000.00, reduce the interest rate to 0%, and extend the term of the HOME loan to mature on December 31, 2099, and
WHEREAS, it was recently discovered that a clerical error occurred in omitting the updated repayment terms of the HOME loan; and
WHEREAS, the Director of the Department of Development requests that Ordinance No. 3326-2024 be amended in order to reflect the updated repayment terms; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the title of Ordinance No. 3326-2024, be amended to read as follows:
To authorize the Director of the Department of Development to forgive the principal and accrued interest for Hilltop II Senior Village currently owned by Hilltop II Senior Housing Limited Partnership on a HOME loan due to the City of Columbus totaling over approximately $1,487,933.00; to reduce the HOME Loan to $2,000.00; to reduce the interest rate of the HOME loan to 0%; to amend the repayment terms to reflect that the repayment of the HOME loan will be upon its maturity date and not based on percentage of cash flow; and extend the term of the HOME loan to mature on December 31, 2099; and to declare an emergency.
SECTION 2. That the existing title of Ordinance No. 3326-2024 is hereby repealed.
SECTION 3. That SECTION 1 of Ordinance No 3326-2024 be amended as follows:
SECTION 1. That the Director of the Department of Development be and is hereby authorized to forgive $533,000.00 of principal and all the accrued interest totaling approximately $932,933.00 for the City HOME loan to Hilltop II Senior Housing Limited Partnership and reduce it to $2,000.00, reduce the interest rate to 0% , to amend the repayment terms to reflect that the repayment of the HOME loan will be upon its maturity date and not based on percentage of cash flow, and extend the term of the HOME loan to mature on December 31, 2099. There will be a loss of approximately $1,485,933.00 in principal and accrued interest receivable for the HOME Investment Partnerships program income.
SECTION 4. That existing SECTION 1 of Ordinance No. 3326-2024 is hereby repealed.
SECTION 5. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.