Explanation
BACKGROUND: Faith Village II Limited Partnership (Faith II) is a seventy four unit affordable housing project located at 3331 Imani Drive on the northeast sector within the City of Columbus. In 1996, Faith II obtained a loan of $281,500 in HOME funds from the City of Columbus for site acquisition and construction of the project which has been providing affordable housing for eligible residents since that time. The interest rate on the loan is 7.04%. The required federal compliance period for this loan is not yet complete and will not be complete until 2018. Housing Division staff will continue to monitor the property until the HOME compliance period is complete. Faith Village II anticipates that it will be awarded low income housing tax credits along with tax exempt bonds and gap funds from the Ohio Housing Finance Agency (OHFA) to recapitalize and modernize the project. In order to obtain the necessary financing to accomplish this much needed rehabilitation work, Faith Village is asking the City to forgive the outstanding accrued interest on this loan totaling up to $685,000 and convert the loan to 0% interest rate. With the new low income housing tax credit and OHFA gap funding being placed on the property, the same oversight for affordable rents and low and moderate income occupancy will be in place for a continued 15 year period.
Emergency action is requested so that Faith Village II can finance its rehabilitation activities for these sites and meet the timelines mandated by OHFA and the low income housing tax credit program to complete the rehabilitation work and place the sites into service.
FISCAL IMPACT: There will be a loss of up to $685,000 in HOME interest receivables.
Title
To authorize the Director of the Department of Development to forgive the accrued interest on a HOME loan made to Faith Village II Limited Partnership due to the City of Columbus totaling up to $685,000.00 and to modify the interest rate on the loan ...
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