Explanation
BACKGROUND: This legislation releases the recorded interest of the City of Columbus in the property at 363 Clarendon Avenue that secures an outstanding balance of $22,500.00 on a deferred loan made by the City's Department of Trade and Development, now known as the Department of Development, to borrowers Herbert L. and Burnice S. Newman on July 8, 1996 in the Rental Rehab Program. Mr. and Mrs. Newman have moved into a condo unit to relieve them of the burden of taking care of a home in their retirement years. They would like to sell the property to a low-to-moderate income family for homeownership. They have requested forgiveness of a portion of the deferred loan to the City of Columbus in the amount of $14,625.00 or 65% of the original loan amount. The Auditor's website shows the value of the property to be $46,900.00 and it is assumed that they would receive approximately that amount. They have no other mortgages or liens on the property however they are on a fixed income.
FISCAL IMPACT: No funding is required for this legislation. There will be a loss of $14,625.00 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 65% of the recorded interest of the City of Columbus in the property located at 363 Clarendon Avenue that secures an outstanding balance on a loan made by the Department of Development to borrower Herbert L. and Burnice S. Newman; and to declare an emergency.
Body
WHEREAS, The Department of Development has outstanding loan balances totaling $22,500.00 to borrowers Herbert L. and Burnice S. Newman for the rehabilitation of the property located at 363 Clarendon Avenue, Columbus, Ohio; and
WHEREAS, in response to a letter of request from Mr. and Mrs. Newman requesting to be relieved of sixty-five percent (65%) of the debt as the household is on a fixed income; and
WHEREAS, the Dep...
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