Explanation
BACKGROUND:
This legislation releases and forgives the unrecorded interest and letters of agreement of the City of Columbus on the Emergency Repair Program loans on properties listed on the attached document. These uncollectible loans were made through the Emergency Repair Program with Community Development Block Grant (CDBG) Funds through the City of Columbus, Department of Trade and Development, now known as the Department of Development. These loans were made to very low income (50% or below area median income) families for emergency services for the repair of the properties, with no mortgage, and only a letter of agreement requesting repayment. After years of attempting to collect on the unsecured loans, the Department of Development is requesting that they be considered uncollectible and forgiven. The loans have been removed from servicing in an attempt to save the City money. The cost of servicing was $8.50 per month per amortized loan. The total amount of this request is $126,563.06. The program has been changed to make this type of loan a grant as to eliminate this problem in the future.
FISCAL IMPACT:
No funding is required for this legislation. There will be a loss of $126,563.06 in accounts receivable for the Community Development Block Grant Fund.
Title
To authorize the Director of the Department of Development to release the unrecorded interest and letters of agreement of the City of Columbus on uncollectible loans made through the Emergency Repair Program with Community Development Block Grant (CDBG) Funds.
Body
WHEREAS, the Department of Development has outstanding loan balances totaling $126,563.06 to borrowers for emergency services for the repair of the properties listed on the attached documentation, located in Columbus, Ohio; and
WHEREAS, this legislation releases and forgives the unrecorded interest and letters of agreement of the City of Columbus in the Emergency Repair Program ...
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