Explanation
Background: This emergency legislation authorizes the Director of the Department of Development to execute an Assignment, Assumption, and Subordination Agreements-along with a modified HOME Loan Agreement, Promissory Note, and Mortgage-with the Columbus Metropolitan Housing Authority (CMHA) and/or POAH Walnut Grove II LLC for Walnut Grove Apartments.
This action facilitates the transfer and restructuring of financial instruments for Walnut Grove Apartments, a multi-unit apartment complex currently owned by Blacklick Apartments, LLC, which is owned by Preservation of Affordable Housing, Inc. (POAH).
Declaring this an emergency measure is necessary to ensure the timely drafting and execution of all essential closing documents before the anticipated financial closing date of September 30, 2026. Immediate passage prevents the incoming buyer from facing expensive project delays and guarantees uninterrupted access to the capital required to complete critical facility maintenance.
PROPERTY
Walnut Grove Apartments is a 176-unit mixed-income multifamily affordable housing community located in the Blacklick area of Columbus. The property serves vulnerable residents-including those utilizing Housing Choice and project-based vouchers-who would otherwise face homelessness.
LOAN TERMS
In 2003, the City partially funded the development with a $1,000,000.00 HOME Investment Partnerships Program loan. The current accrued interest on this loan is $1,148,805.88 at an annual rate of 5.09%.
The HOME loan requires repayment to the City based on cash flow as defined in the operating agreement.
Legislation Details
This action builds upon previous Council support:
Ordinance 3363-2021 passed authorized the Director of Development to modify a promissory note and mortgage for the purpose of reinvesting Cash flow payment to address routine maintenance and repair needs and writing off $67,025.00.
Ordinance 1766-2025 authorized the appropriation of $1,000,000.00 in bond funds to m...
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