Explanation
BACKGROUND: Housing Finance administers the Homeownership Development Program (HDP) to provide incentive for developers to build or rehab affordable housing within the Neighborhood Investment Districts.
Ellsworth Project, LLC, applied for subsidy to construct two homes at 1078 and 1082 Ellsworth Avenue, Columbus, Ohio through the HDP. The City committed CDBG Funds through the HDP to Ellsworth Project, an Ohio Limited Liability Company, to provide soft second mortgages in the amount of $30,000 to buyers of the two new 3-bedroom homes the Partnership is constructing on Ellsworth Avenue in Driving Park.
One home was in contract with Carolyn Davidson and monies were drawn for the $30,000 soft second mortgage. Ms. Davidson did not show up to the closing nor did she notify the lender, title company or Ellsworth that she had no intention of closing on the home. Ellsworth cancelled the purchase of the home after the City Auditor cut a check. Therefore, the $30,000 must be reappropriated in order to access these funds for a new homebuyer to complete the sale.
This legislation is presented as an emergency because the home at 1078 Ellsworth is again in contract and ready to be sold. The home is due to close soon.
FISCAL IMPACT: This legislation appropriates these funds to the Department of Development and authorizes their expenditure from the Community Development Block Grant Fund.
Title
To authorize the appropriation of $30,000.00 from the unappropriated balance of the Community Development Block Grant Fund; to authorize the expenditure of $30,000.00 from the Community Development Block Grant Fund for the provision of loans through the Homeownership Development Program; and to declare an emergency. ($30,000.00)
Body
WHEREAS, the Director of the Department of Development wishes to appropriate and expend $30,000.00 from the Community Development Block Grant Fund for the provision of loans through the Homeownership De...
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