Explanation
BACKGROUND: This legislation will authorize the Director of the Department of Development to enter into a contract with Columbus Neighborhood Housing Services (CNHS). The purpose of this contract is to ensure the orderly and proper dissolution of the corporation and liquidation and return of assets to original sources.
Columbus Neighborhood Housing Services has received Community Development Block Grant (CDBG) funds from the City of Columbus since at least 1982 for the purpose of operating a home improvement and down payment revolving loan fund (RLD). This year the Board of CNHS has evaluated the current and potential capacity of the organization and decided that it is in the best interests of the investors and borrowers from CNHS to dissolve, liquidate assets and transfer the loan portfolio to its respective investors to ensure adequate loan servicing.
City Auditor Dorrian has directed that an accurate accounting of funds and assets be done and that funds are best used to ensure an orderly process. Funds from this contract will be used for a consultant to assist in handling the day-to-day activities to assist outside auditors and manage the transition, to arrange loan serving agreements, to segregate the loan portfolio and transfer ownership of the loans to investors, to collect, review, index, store and/or dispose of aged or unneeded files, to liquidate fixed assets, to identify the source of all capital assets and to return the remainder to the source. Contract funds will also be used for office expense such as rent, telephone, copying, legal expenses, an outside audit and outstanding payables. This is expected to take six months.
FISCAL IMPACT: $90,000 has been allocated for this purpose from the CDBG fund. The funds are available through the cancellation of Auditors Certificate AC 020226.
Title
To authorize the Director of the Department of Development to enter into contract with Columbus Neighborhood Housing Services;...
Click here for full text