Explanation
BACKGROUND: This legislation authorizes the unplanned modification of a HOME Investment Partnerships loan package with Touchstone Field Place II, LLC, that utilizes HOME 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 into an amended and restated promissory note and a second amended and restated commitment letter, loan agreement, mortgage, restrictive covenant, if applicable, associated with the Touchstone Field Place II, LLC development to accurately reflect the actual amount of HOME-ARP funds expended to account for the unutilized balance of funds and to declare an emergency.
Original Agreement $1,050,000.00 Ord. 0736-2024 PO462083
Modification No. 1 $ 0.00 Ord. 2025-2025 PO462083
Modification No. 2 $ 0.00
Total $1,050,000.00
Ordinance 0736-2024 modified by 2025-2025, approved by City Council on March 27, 2024 and July 23, 2025, authorized the Director of Development to support the construction of six (6) out of forty-four (44) one-bedroom units of permanent supportive housing prioritized for individuals who meet the State of Ohio’s Permanent Supportive Housing Policy Framework. Specifically, all forty-four units will prioritize individuals who meet the HUD definition of chronic homelessness. Upon completion of the project, the full amount of HOME-ARP funding originally authorized in the loan package was not needed therefore causing the need to have documentation that reflects the reduction of the total amount from $1,050,000.00 to $945,000.00.
This legislation allows for the amendment and restating of the various loan package documents which include but are not limited to the promissory note, and the second amendment and restating of the commitment letter, loan agreement, mortgage, and restrictive covenant as needed to reflect the accurate amount of HOME-ARP funds used in the project.
Emergency Designation: An emergency exists as this unplanned modification is the result the project not needing the entire amount reflected in the original loan package and the City’s documentation must accurately reflect the amount of funding provided to the project. 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 048127 and expires 2/14/2026 vendor will be contract compliance prior to the passage of this ordinance.
Fiscal Impact: none
Title
To authorize the Director of the Department of Development to enter into an unplanned modification of the HOME-ARP loan package with Touchstone Field Place II, LLC; to authorize the amendment and restating of documents as needed to reflect the accurate amount of HOME-ARP funding expended which may include but are not limited to the commitment letter, loan agreement, promissory note, mortgage, restrictive covenant, if applicable; and to declare an 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 HOME Partnerships Program American Rescue Plan (HOME-ARP) funds from the U.S. Department of Housing and Urban Development; and
WHEREAS, the City of Columbus authorized the support of the construction of the Touchstone Field Place II permanent supportive housing project by Ordinance 0736-2024 and 2025-2025, approved by City Council on March 27, 2024 and July 23, 2025; and
WHEREAS, since then the Touchstone Field Place II project did not utilized the entire amount HOME-ARP funding reflected in the original loan package and this requires the City to amend and restate the documents with the developer to accurately reflect the amount of HOME-ARP funding expended thereby reducing the amount from $1,050,000.00 to $945,000.00; 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-ARP loan package to reflect the reduction of the original loan in the amount of $1,050,000.00 to now reflect $945,000.00 as the amount of funds needed/expended. 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 rules, 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 Development is hereby authorized to modify a Home-ARP Loan package and execute amended and restated documents as needed that are to reflect the accurate amount of HOME-ARP funds expended as being $945,000.00 rather than $1,050,000.00 which may include but are not limited to the commitment letter, loan agreement, promissory note, mortgage, and restrictive convent if applicable with Touchstone Field Place II, LLC., for the Touchstone II 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.