Explanation
BACKGROUND: Columbus Housing Partnership, doing business as Homeport (Homeport), is a Columbus based Ohio non-profit organization that provides affordable housing opportunities for individuals and families. In 1995, Homeport obtained a total of $1,060,000 in funding from the City of Columbus for the acquisition and rehabilitation of Stoddart Block Apartments located 260 S. Front Street in Columbus which has been providing affordable housing for eligible Homeport residents since that time. $760,000 of the funds were from HOME funds granted to the City by the Department of Housing and Urban Development and $300,000 of the funds were from HOME funds granted to the City by the Ohio Department of Development. The City’s agreement with the Ohio Department of Development provides that any cash flow from the project be shared equally between the City and the Ohio Department of Development with the Ohio Department of Development’s share not to exceed $300,000.
Homeport has fulfilled all the federally mandated affordability requirements associated with this loan. The Ohio Department of Development program that awarded the funds to the City for this project is now in the care of the Ohio Housing Finance Agency (OHFA). The Stoddart Block partnership interests that were owned and controlled by Homeport were sold on May 9, 2013. Net proceeds of $729,334.19 have been deposited in escrow. Homeport has requested forgiveness of the Stoddart Block loans from the City and OHFA.
The City’s portion of the debt that could be repaid from the net proceeds is $429,334.19. In support of the request for forgiveness of the City portion of the debt, Homeport has requested reimbursement for lost developer fees on its NSP 2 projects which is equal to at least $336,721. In addition, it has requested funding of $65,156 to pay off deferred developer fees in their Fairview Homes project and $65,818 to pay deferred developer fees in Southside Homes. Both projects are located in...
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