Explanation
BACKGROUND: This legislation releases the recorded interest of the City of Columbus in the property at 905 Heyl Avenue that secures an outstanding balance of $10,229.82 and $8,350.00 on loans of $27,000.00 (amortizing) and $8,350.00 (deferred) made by the City's Department of Human Services now known as the Department of Development to borrower Merle F. Tomlinson on October 30, 1989 in the Rental Rehab Program. Mr. Tomlinson is deceased and the property has been vacant and is in foreclosure for past due tax liens and assessments. His heir, Betty Sue Tomlinson, would like to sell the property to Tim Lott, Lux Christi Investments, LLC. Lux Christi plans to renovate the property and sell it to a low-to-moderate income family for homeownership. Mr. Lott requested forgiveness of a portion of the deferred loan to the City of Columbus in the amount of $6,557.38. The Auditor's website shows the value of the land to be $62,400.00; however, sales comparables of three homes sold in January and February 2006 located in the neighborhood sold for $20,000, $22,000 and $23,000. The purpose for the release of the City's interests is to enable the transfer of the property to further the purposes of the providing descent safe affordable housing to low-to-moderate income families and to eliminate a vacant and abandoned property bringing it back into usefulness.
Emergency action is requested in order to expedite the sale of the property to Lux Christi Investments, LLC.
FISCAL IMPACT: No funding is required for this legislation. There will be a $6,557.38 loss in accounts receivable for the Community Development Block Grant Fund Rental Rehab Loan Program.
Title
To authorize the Director of the Department of Development to release the recorded interest of the City of Columbus in the property located at 905 Heyl Avenue that secures an outstanding balance on a loan made by the City's Department of Development to borrower Merle F. Tomlinson; and to declare an emergency.
Body
WHEREAS, The Department of Development has outstanding loan balances totaling $10,229.82 and $8,350.00 to borrower Merle F. Tomlinson, for the rehabilitation of the property located at 905 Heyl Avenue, Columbus, Ohio; and
WHEREAS, in response to a letter of request from Tim Lott, Lux Christi Investments, LLC, a for-profit developer who rehabs homes to sell to low-to-moderate income buyers and who has made an offer on the property for $26,800 that will pay off all tax and assessment liens and give the City the balance of $12,022.44. This pay all but $6,557.38 of the two outstanding loans; and
WHEREAS, the purpose for the release of the City's interests is to enable Lux Christi Investments to renovate the vacant and abandoned property to improve the house; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development, Housing Division, in that it is immediately necessary to authorize the Director of the Department of Development to release the recorded interest of the City of Columbus in 905 Heyl Avenue that secures outstanding loan balance totaling $18,579.82 ($10,229.82 and $8,350) made by the City's Department of Development to borrower Merle F. Tomlinson, all for the 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 the Department of Development be and is hereby authorized to release the recorded interest of the City of Columbus in the property located at 905 Heyl Avenue, Columbus, Ohio for a payment of $12,022.44 that secures outstanding loan balance totaling $18,579.82 made by the City's Department of Development to borrower Merle F. Tomlinson leaving $6,557.38 to be forgiven.
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 passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.