Explanation
BACKGROUND: This legislation authorizes the unplanned modification of a HOME Investment Partnerships loan package with New Canterbury Way LTD., that utilized funding from the U.S. Department of Housing and Urban Development (HUD) and authorizes the Director of the Department of Development enter into amended and restated documents that include but are not limited too these newly amended and restated documents will reflect that the reduction of the interest from 4.65% to 0% moving forward. The five-year federal affordability compliance period has been fully satisfied and there is a need to release the restrictive covenant as well as authorize the Director to forgive any remaining interest associated with the New Canterbury Way LTD HOME loan so the developer may secure additional Low-Income Housing Tax Credits (LIHTC) funding for a substantial property renovation and keep the property affordable.
On January 24, 2008, the City of Columbus issued a $500,000.00 HOME Investment Partnerships Loan to New Canterbury Way LTD (wholly owned by Fairfield Homes) to support the comprehensive rehabilitation of Canterbury Way Apartments. Located at 618 Canterbury Way, this 46-unit affordable housing community serves low-income families and consists of thirty 2-bedroom units and sixteen 3-bedroom units. Of the total units, 34 of the 46 units were HOME assisted with strict income limits: 27 units are reserved for households earning below 50% of the Area Median Income (AMI), and seven units are reserved for households below 30% AMI.
The Original loan carried a 4.65% interest rate with a maturity date of January 1, 2051. Because payments were structured as 25% of annual cash flow, interest has continuously accrued since 2010. The current balance is over $822,572.53, which includes $500,000.00 in principal and over $322,572.53 in accrued interest. The five-year federal affordability compliance period has been fully satisfied; the complex requires comprehensiv...
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