Explanation
BACKGROUND: This legislation authorizes the Director of the Department of Development to execute a HOME Agreement, Subordination Agreement of a HOME Agreement, Assignment and Assumption Agreement, and/or amend an existing restrictive covenant with North Central Owner, LLC, which is the intended buyer of North Central Village, a multi-unit apartment complex currently owned by Columbus Elderly II, LLC.
In 2009, the City, through the Department of Development, financially supported the construction of North Central Village, a 74-unit apartment complex, using HOME Investment Partnerships Program (HOME) funds. The City and Columbus Elderly II, LLC executed a loan agreement in the amount of $500,000.00, and a Mortgage, Note, and Restrictive Covenant were also executed by Columbus Elderly II, LLC. The HOME Period of Affordability (PoA) is for 20 years, through June 2030. The project was also supported by the Ohio Housing Finance Authority (OHFA) through LIHTC and other means. The LIHTC PoA is through 2040.
Columbus Elderly II, LLC desires to sell the property to North Central Owner, LLC. North Central Owner, LLC, through agreements with OHFA and Fannie Mae, will retain the current affordability requirements for, at least, another 15 years. This covers the City’s remaining affordability period requirement of four and one-half years.
Because the property is being sold during the HOME PoA, the City and North Central Owner, LLC need to execute a HOME Agreement that memorializes applicable HOME requirements during the PoA. No funding will be included in the agreement. In 2026, North Central Owner, LLC anticipates converting the apartments to condominiums, while keeping them as affordable rental units. If this conversion were to occur, the existing Restrictive Covenant on the property may need to be amended to list all the parcels for which the restrictions apply in order to maintain the HOME PoA. The current plan is for Columbus Elderly II, LLC to ...
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