Explanation
BACKGROUND: This legislation authorizes the assignment, assumption, and modification of a U.S. Department of Housing and Urban Development (HUD) HOME Investment Partnerships Program (HOME) funded loan package (inclusive of a loan agreement, promissory note, and mortgage, the HOME Loan) (the “HOME Loan Documents”) executed by the Director of the Department of Trade and Development now known as Department of Development, from the City of Columbus (the “City”) to George’s Creek Limited Partnership, an Ohio limited partnership. This legislation also authorizes the Director to execute subordination agreements and any other necessary agreements or instruments needed to assign, assume, and modify the HOME Loan Documents from George’s Creek Limited Partnership to George’s Creek Homes Rehab, LLC, an Ohio limited liability company and reduce the interest rate from 8.5% to 2.0%. This legislation also authorizes the forgiveness of the HOME Loan’s existing interest at the time of assignment and assumption, in an amount approximately up to $1,491,729.30.
The City of Columbus in 1995 entered into a HOME agreement with George’s Creek Limited Partnership, an Ohio limited partnership, to construct on a certain parcel of land located at 6300 George’s Creek Drive, Canal Winchester, Ohio and known as George’s Creek Apartments to develop 120 units of affordable housing. The housing has remained affordable through the twenty-year period of affordability, with 120 HOME assisted units leased and occupied to families with income at or below 50% of Area Median Income (AMI), in accordance with 24 CFR 92.252. The City’s HOME investment in 1995 was a $570,000 loan, together with an interest rate of 8.5% annum, as evidenced by a HOME Loan Agreement and Mortgage dated July 13, 1995, recorded on July 14, 1995.
Columbus Housing Partnership, Inc. (dba Homeport) received 2025 Low-Income Housing Tax Credit (“LIHTC”) funding from the Ohio Housing Finance Agency (OHFA) for the rehab...
Click here for full text