Explanation
BACKGROUND: By Ordinance 0167-2024, passed on January 22, 2024, Columbus City Council authorized the sale of 897 E. Mound Street to Community Housing Network (CHN) to develop a multifamily, permanent supportive housing project. The project received an allocation of tax credits and is scheduled to start construction in 2025. A portion of the site was acquired from the United States Department of Urban Development (HUD) after the foreclosure and demolition of the Regal Court Apartments. The property was conveyed to the City for a nominal amount, but contained a deed restriction regarding the future use of the site. This legislation will allow the Director of the Department of Development, or his designee, to execute an Amendment and Restatement and Partial Release of Restrictive Covenants (Release), pay approximately $50,950 of a $148,005 Equity Participation Fee (Release Fee) required by HUD, and amend the legal description. The Release will also amend the restrictions on the remainder of the site that is not a part of the sale and currently used as a community garden. The Release fee will be paid by the proceeds of sale to CHN.
FISCAL IMPACT: The $50,950.00 payment to HUD will be made at closing through the proceeds of sale.
EMERGENCY JUSTIFICATION: Emergency action is requested to enable the City to immediately agree to the Release and schedule the sale of the property as soon as possible.
Title
To authorize the Director of the Department of Development, or his designee, to execute an Amendment and Restatement and Partial Release of Restrictive Covenants with the United States Department of Urban Development (HUD), to authorize the payment of $50,950 to HUD from the proceeds of sale of 879 E. Mound Street, reauthorize the sale of the property to Community Housing Network, or a subsidiary, with an amended legal description, and to declare an emergency.
Body
WHEREAS, by Ordinance 0167-2024, Council approved the sale of 879 E. Mound Str...
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