Explanation
BACKGROUND:
This legislation authorizes the Director of the Department of Development to forgive the principal and interest accrued at the property located at 398 S Grant Ave., Columbus, Ohio 43215 which was originally developed by National Church Residences as The Commons at Grant Limited Partnership and was the first property of significant size (100 units) to serve as permanent supportive housing in Ohio. A HOME loan was made on January 17, 2002 in the amount of $1,500,000.00 from the City of Columbus for site acquisition and construction of the project which has been providing affordable housing for eligible residents since that time. The interest rate on the loan is 5.46% and the current balance of the loan exceeds $4,374,025.00. The required federal compliance period for this loan is complete and the restrictive covenant can be released. The project has not had sufficient cash flow for most of its existence due to the population served and the cost of wrap around services. The completion of the 20 year HOME affordability period has passed and the property remains as a permanent supportive housing provider for those who were homeless or at risk of homelessness.
The City HOME loan matured on June 27, 2023 and because of limited rental income and higher operating costs that include extensive supportive services to assist the tenant population, the development is not able to repay the debt. The property owner has requested and the Development Department supports the request to forgive the loan.
Emergency action is requested so that The Commons at Grant Limited Partnership can remove the debt from its financial statements since the 20 year HOME affordability period is completed and the development is not able to repay the debt although the property remains as a permanent supportive housing provider for those who were homeless or at risk of homelessness.
FISCAL IMPACT: There will be a loss of about $4,372,025.00 in fully reserved HOME receiv...
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