Explanation
BACKGROUND: This ordinance authorizes the Director of Development to modify loan agreement documents with 1573 East Livingston Limited Partnership to allow for changes in lender information in the documents and to add an additional $100,000.00 of HOME funds to the loan agreement for The Livingston project.
The Director of Development entered in loan agreement documents with 1573 East Livingston Limited Partnership in November 2018 under the authority of ordinances 2423-2017 and 1276-2018. The Livingston project is a 45 unit senior housing project developed in conjunction with the low income housing tax credit program by Woda Cooper Development. Rents are affordable from 30% to 60% AMI. It has become necessary to modify the loan documents to allow a first mortgage by a new lender that is greater than what was initially planned and to provide $100,000.00 in additional funding.
Original Loan Agreement $360,000.00 Ord. 2423-2017 (PO146431)
Ord. 1276-2018 (PO146431)
Replacement Ord. 0541-2020 (PO221692)
Modification 1 $100,000.00
Total Loan Agreement Amount $460,000.00
This legislation represents appropriation for the HOME portion of the 2020 Action Plan, per Ordinance 2162-2019.
Emergency action is requested to allow for the developer to maintain the project schedule.
Contract Compliance: the vendor number is 027070 and contract compliance is being renewed.
Fiscal Impact: Funding is available on existing HOME ACPOs as follows:
$36,472.31 ACPO005219 2015 HOME grant
$53,670.47 ACPO005362 2016 HOME grant
$ 9,857.22 ACPO005228 2018 HOME grant
Title
To authorize the Director of Development to modify a loan agreement with 1573 East Livingston Limited Partnership to allow for changes in lender information in the documents and to add an additional $100,000.00 of HOME funds to the loan agreement for The Livingston project; and to declare an emergency. ($100,000.00)
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, City Council has approved the 2020 Action Plan, per Ordinance 2162-2019, as required by HUD; and
WHEREAS, the Director of Development entered in a loan agreement with 1573 East Livingston Limited Partnership in November 2018 under the authority of ordinances 2423-2017 and 1276-2018; and
WHEREAS, it is necessary to modify the loan to allow a first mortgage by a new lender that is greater than what was initially planned and to provide $100,000 in additional funding and the funding will come from existing ACPOs; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to modify the agreement with 1573 East Livingston Limited Partnership and appropriate and expend said funds to allow for the developer to maintain the project schedule, thereby preserving 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 loan agreement with 1573 East Livingston Limited Partnership to allow for changes in lender information in the documents and to add an additional $100,000.00 of HOME funds to the loan agreement for The Livingston project, funded from existing ACPOs.
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.