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 Tussing Road Homes 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 Tussing Road Homes Limited Partnership to Pheasant Run Homes Rehab, LLC, an Ohio limited liability company. This legislation also authorizes the forgiveness of the HOME Loan’s existing interest at the time of assignment and assumption, in an amount up to $838,648.00
The City of Columbus in 1999 entered into a HOME agreement with Tussing Road Homes Limited Partnership, an Ohio limited partnership, to construct on a certain parcel of land located at 2680 Orono Pike, Reynoldsburg, Ohio and known as Pheasant Run Apartments to develop 136 units of affordable housing. The housing has remained affordable through the twenty-year period of affordability, with seven 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, as amended on November 2, 2006. The City’s HOME investment in 1999 was a $512,000 loan, together with an interest rate of 6.5% annum, as evidenced by a HOME Loan Agreement and Mortgage dated September 13, 1999, recorded on September 15, 1999, in Official Record Volume 104, page 222, in the Recorder's Office of Fairfield County, Ohio, and modified by the Amendment to the Open-End Mortgage by Tussing Road Homes Limited Partnership, an Ohi...
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