Explanation
BACKGROUND:
To authorize the Director of the Department of Development to forgive the principal and accrued interest on a HOME note and mortgage loan down to $2,000.00 and reduce the interest rate to 0% with Hilltop Senior Village II (Hilltop II) currently owned by Hilltop II Senior Housing Limited Partnership which is wholly owned by National Church Residences and is Phase II of the Hilltop Senior Village Project. The property located at 300 Overstreet Way, Columbus, Ohio 43228 was originally developed by Hilltop II Senior Housing Limited Partnership for low-income senior housing. A HOME loan was made on August 4, 2003 in the amount of $555,000.00 from the City of Columbus for construction of the project which has been providing affordable senior housing for eligible residents since that time. The interest rate on the loan is 4.36% with a maturity date of August 4, 2033 which has resulted in approximately $932,933 in interest. The current balance of the loan with interest exceeds $1,487,933.00. The ground lease with the City of Columbus matures in 2097 and will remain in place. The required federal compliance period for this loan is complete and the restrictive covenant can be released. The completion of the 20-year HOME affordability period has passed and the owner would like to recapitalize soon.
Hilltop Senior Village II is located within the Hilltop neighborhood. It was built in partnership with the City of Columbus in two phases in 2000 and 2004. Hilltop Senior Village (I and II) totals 200 units offering a wide range of one and two bedroom, midrise and cottage style apartments to senior residents age (55+ years old) and of various income levels. Phase two (Hilltop Senior Village II) of the project has 85 Low Income Housing Tax Credit (LIHTC) units and 15 market-rate units. The 85 units are rent and income restricted to residents as follows: 40 units at 60% of Area Median Income (AMI) 33 units at 50% AMI and 12 units at 40% AMI.
In addit...
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