Explanation
BACKGROUND: This legislation authorizes the Director of Development to execute partial release of mortgage(s) and partial release of restrictive covenant(s) between the City of Columbus, Department of Development and Framingham Homes Limited Partnership, an Ohio limited partnership, for the purposes of releasing single family units from the lien and restrictions that were beyond the scope of the City funding. The loan was made through the Rental Housing Preservation and Production Program with HOME Investment Partnerships (HOME) Funds received from the U. S. Department of Housing and Urban Development and loaned through the City of Columbus, Department of Trade and Development, now known as the Department of Development, and secured by a mortgage and restrictive covenant in accordance with HOME regulations. The loan was made to provide the development of nine rental units affordable at or below 50% of the area median income.
Emergency action is necessary to allow Framingham Homes Limited Partnership to sell its single family homes to existing tenants.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to execute a partial release of mortgage(s) and partial release of restrictive covenant(s) between the City of Columbus, Department of Development and Framingham Homes Limited Partnership for the purposes of releasing single family units from the lien and restrictions that were beyond the scope of the City funding; and to declare an emergency.
Body
WHEREAS, the Department of Trade and Development, now known as the Department of Development, made a loan to Framingham Homes Limited Partnership, an Ohio limited partnership, on September 25, 1996 for the purpose of funding a long term commitment of affordability for nine rental units; and
WHEREAS, this loan was made through the Rental Housing Production and Preservation Program with HOME Investment Partnership Program Funds received from the U. S. Department of Housing and Urban Development; and
WHEREAS, the mortgages and restrictive covenants executed by the parties inadvertently included units that were beyond of the scope of the funding provided; and
WHEREAS, the loan and restrictive covenants were previously amended; and
WHEREAS, the parties wish to now partially release the mortgages and restrictive covenants to allow for the lien and restrictions to apply only to those units for which funding was provided; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to execute a partial release of mortgage(s) and partial release of restrictive covenant(s) between the City of Columbus, Department of Development and Framingham Homes Limited Partnership to allow Framingham Homes Limited Partnership to sell its single family homes to existing tenants, all for the immediate preservation of the public health, peace, 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 be and is hereby authorized to partially release the mortgage and amended mortgage recorded in O.R. 33173, Pg. C20 and instrument number 201206080081660, respectively, of the Franklin County Recorder's Office; and to partially release the restrictive covenants and amended restrictive covenants recorded in O.R. 33173, Pg. D-10 and 201206080081663, respectively, of the Franklin County Recorder's Office, as approved by the Real Estate Division, City Attorney's Office, and any other necessary documents as needed, for the purpose of releasing the single family units from the mortgages and restrictions.
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.