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”) executed by the Director of the Department of Development, from the City of Columbus (the “City”) to Community Housing Network, Inc., an Ohio nonprofit corporation (“Community Housing Network”), to Jefferson Avenue Apartments, LLC, an Ohio limited liability company (“Jefferson Avenue”) and from Community Housing Network to Jefferson Avenue.
The Jefferson Center for Learning and the Arts, an Ohio nonprofit corporation (“Jefferson Center”), was the original owner of the site that the development was constructed upon. Community Housing Network was the developer and managing member of Jefferson Avenue. It was agreed that upon completion of the 15-year low-income housing tax credit (“LIHTC”) compliance period, Community Housing Network would acquire the interests of the LIHTC investor and convey all of its interest, and cause its wholly owned subsidiary, Jefferson Avenue Apartments, Inc., an Ohio corporation (“JAA Inc.”), to convey all its interest in Jefferson Avenue to Jefferson Center or a related subsidiary. Jefferson Center has created a wholly owned subsidiary, Four Chimneys, LLC, an Ohio limited liability company (“Four Chimneys”), that wishes to acquire a 99.99% interest in Jefferson Avenue, and Sawmill Road Management, LLC, an Ohio limited liability company (“Sawmill”), will acquire a 0.01% interest in Jefferson Avenue as a partner of Jefferson Center. The HOME Loan documents require that the consent of the City be obtained prior to the transfer of any ownership interests of the project.
The HOME Loan to Jefferson Avenue was made on September 8, 2008, to Community Housing Network. Community Housing Network loaned the funds to Jefferson Avenue on th...
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