Explanation
BACKGROUND:
This legislation authorizes the Director of the Department of Development to forgive the principal on a loan to Commons at Grant and to terminate a land lease between The Commons at Grant Limited Partnership and the City of Columbus. The Commons at Grant was the first property of significant size (100 units) to serve as permanent supportive housing in Ohio. It was developed at 398 S. Grant Ave., Columbus, Ohio 43215. City support included acquiring the site and leasing to the project rent free for 99 years and providing a $900,000 interest free loan both of which were authorized by Ord 1298-01. In addition, a HOME loan of $1,500,000 was made which was forgiven in 2023 pursuant to Ord 2773-2023. The property has completed its 20-year compliance period under the HOME requirements and has been approved by the Ohio Housing Finance Agency for a recapitalization which is expected to close in 2025. Any loans retained in the new ownership entity (which will be managed by original and existing developer National Church Residences) must be able to demonstrate that they can be repaid. Due to the population served (those who are homeless or at risk of homelessness) and the extensive supportive services that are provided to the tenants, it is unlikely that the new owner will be able to repay the existing loan. The 99-year land lease had provided for a buy-out option that required a payment of $740,000 plus adjustment for the consumer price index over time. Because the property is intended to remain as affordable housing for at least the next 30 years, the developer has requested that title to the land be transferred to the new owner at no cost. As part of the recapitalization, the City of Columbus plans to provide a HOME ARP loan of $2,000,000.00 and a grant for supportive services from HOME ARP for $144,462.00. Both awards are subject to completion of the Environmental Review and City Council approval.
FISCAL IMPACT: There will be a loss of...
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