Explanation
BACKGROUND: This legislation releases the recorded interest of the City of Columbus in the property at 1641 East Hudson Street that secures an outstanding balance of $26,979.50 on a loan of $27,000.00 made by the City's Department of Development to borrower Richard W. Smith on July 27, 1992. The monies were used to renovate the property.
At this point, Mr. Smith has serious health problems, resides in a subacute nursing facility, and has no possibility of returning to the residence. Mr. Smith desires to be relieved of the property and its burden and is asking the City's help by eliminating the mortgage. Our mortgage is the only lien on the property. Mr. Smith has obtained a purchase contract from a third-party buyer who plans to renovate and use the property as affordable rental housing.
Emergency action is requested in order to expedite the sale of the property by a realtor hired by Mr. Smith.
FISCAL IMPACT: $15,000.00 will be collected against the $26,979.50 remaining on the mortgage and accepted as payment in full for this mortgage. There is a loss of $12,000.00 in accounts receivable to the City of Columbus.
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 1641 East Hudson Street; and to declare an emergency.
Body
WHEREAS, the Department of Development has an outstanding loan balance totaling $26,979.50 to borrower Richard W. Smith, for the rehabilitation of the property located at 1641 East Hudson Street, Columbus, Ohio; and
WHEREAS, in response to a written request from Richard W. Smith for relieved of the property through the sale to a third party; in which a final date for closing is set for March 24, 2004; and if the loan does not close the offer will be withdrawn; and
WHEREAS, the purpose for the release of the City's interests is to enable to sale of the property to a third-party buyer who will renovate the house and use it for affordable rental; and for the City to receive a portion of the funds owed from the sale of the house; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to release the City's interest in the aforementioned property in order to expedite the sale of the property and to protect the City's interest, 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 release the recorded interest of the City of Columbus in the property located at 1641 East Hudson Street, Columbus, Ohio that secures outstanding loan balance totaling $26,979.50 made by the City's Department of Development to borrower Richard W. Smith.
Section 2. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is 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.