Explanation
BACKGROUND:
Hotel St. Clair is a thirty two unit affordable senior housing project located at 340-352 St. Clair Avenue on the near east side within the City of Columbus. In 2001, Hotel St. Clair obtained a loan of $226,000 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 6.75% and the current loan balance is approximately $603,443. The required federal compliance period for this loan is complete. The original development team of this project, G. Fred Schwab, LLC and Hotel St. Clair Housing Corporation exited the ownership of the project in 2005 and was replaced by Hotel St. Clair Partners, Inc. a subsidiary of Community Housing Network (CHN). At that time, CHN secured additional financing from the Federal Home Loan Bank of Cincinnati in the amount of $387,500, the HUD Supportive Housing Program McKinney Vento Grant (SHP) of $150,000 and a second forgivable loan from the City of Columbus for $95,000 and the project was converted to permanent supportive housing for seniors. The second City loan was forgiven in 2010. The project has never operated at a profit and Ohio Capital Corporation for Housing, the low income housing tax credit equity provider, has funded operating losses of over $738,981 during the 15 year period and will pay a tax credit recapture expense of $196,671. The completion of the 15 year compliance period for housing tax credits was December 31, 2016 although tenants were relocated prior to that time.
Due to the ongoing losses of the project, the owners would like to sell the building and have an interested buyer who would like to develop market rate housing at that location. All tenants of the building have been relocated to other CHN owned sites or have been provided with a Section 8 voucher housing following Uniform Relocation requirements. The City loan is senio...
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