Explanation
BACKGROUND: This legislation authorizes the Director of the Department of Development to execute modified loan documents between the City of Columbus, Department of Development, formerly known as the Department of Trade and Development (City) and Framingham Village, LLC as successor to Framingham Homes Limited Partnership (Borrower) to allow for an extended maturity date to December 31, 2044, a reduction of the interest rate to 0% and to modify the name of the borrower. The City made a HOME loan to the borrower of $602,000.00 on September 25, 1996 for the construction of 64 multifamily units and 22 single family units. The loan documents were amended in 2012 to clarify the number of HOME assisted units in the project. The loan documents were amended again in 2014 pursuant to Ord. 0823-2013 to permit a partial release of the mortgage and restrictive covenant that allowed the single-family homes to be sold to existing tenants. Since then, the property’s Low-Income Housing Tax Credit initial 15-year compliance period and the HOME 20-year compliance period have been met and the project has been transferred from the initial borrower to Framingham Village, LLC.
Emergency action is requested to allow Framingham Village, LLC to refinance their first mortgage loan which is scheduled to mature in December 2024.
Fiscal Impact: None
Title
To authorize the Director of the Department of Development to execute modified loan documents for Framingham Homes Limited Partnership to extend the maturity date of the loan to December 31, 2044, to reduce the interest rate on the loan to 0% and to change the name of the borrower to the current owner of the property, Framingham Village, LLC.; and declare an emergency. ($0.00)
Body
WHEREAS, the Department of Trade and Development, now known as the Department of Development made a loan to Framingham Homes Limited Partnership, an Ohio limited partnership, on September 25, 1996 for the purpose of funding a long-te...
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