Explanation
BACKGROUND: The Housing Division has operated programs that are funded by both local and federal funding sources, in the form of grants and loans that provide critical and emergency home repairs such as roof replacements, water heater replacement, foundation stabilization, and many more repairs/improvements that ensure that residents are not faced with homelessness or additional financial hardship since 1986. This Legislation is to seek the approval of the forgiveness of loans for this program that have been closed on behalf of the City of Columbus. City Council, based on Ordinance 0939-2023, which was passed on April 3, 2023, and the amended ordinance 3121-2025 allows for the Director of the Department of Development to request the approval by Columbus City Council to forgive these loans, which are over $20,000.00.
Recognizing that there is a limited useful life of the home improvement and value for the City’s investment as well as the importance of ensuring that the City’s programs do not perpetuate inequitable outcomes or limit wealth building opportunities for those who have faced a legacy of systematic disinvestment, the Department of Development has implemented a loan forgiveness policy which was authorized via Ordinance 0939-2023 for its homeownership services. All federally funded loans that will be considered for forgiveness have met the required affordability periods based on the federal funding source. All loans to be forgiven are as Exhibit A to this ordinance.
Columbus City Code Sections 335.01 and 335.012 guide the loan forgiveness policy, which allows the Director to authorize the forgiveness of individual loans up to $2,500, the City Attorney to forgive individual loans up to $20,000 and loans over $20,000 requires the approval by City Council.
This legislation is contingent upon the passage of the amendment to Ordinance 0939-2023, Ordinance 3125-2025 which was updated to include the transferring of properties to heirs.
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