Explanation
BACKGROUND:
Starr/High is a thirty five unit affordable housing project located at 989-997 North High Street in the Short North Community within the City of Columbus. In 1992, Starr/High obtained a loan of $275,000 in City Investment funds with a 1% interest rate from the City of Columbus for site acquisition. In 1993, Starr/High obtained a loan of $307,613 in HOME funds with 0% interest for the rehabilitation of the project which has been providing affordable housing for eligible residents since that time. The loan of City Investment funds will be repaid in full. The required federal compliance period for the HOME loan is complete as is the required compliance period for the low income housing tax credits. The project has not generated sufficient cash flow to permit any payments on the loan. An affiliate of Enterprise Community Partners was the low income housing tax credit provider and has exited the project. With all compliance periods complete, the project owner, an affiliate of Columbus Housing Partnership doing business as Homeport (Homeport) has sold the building with proceeds of sale being deposited into escrow. Conditions of sale include allowing all existing residents to remain in the homes for at least 24 months and continuing to allow the existing management company, Wallick, to remain as the project manager for at least 12 months. In addition, Homeport will be setting aside funds to assist any tenants remaining after the 24 month period who do not remain in the property.
The City of Columbus Policy for Requests for Debt Forgiveness for Multifamily Rental Projects allows non-profit owners to request that HOME and NSP loan repayments be provided to the non-profit owner with up to 10% being used for non-profit operating costs and the remaining 90% of the funds be deposited into a non-interest bearing escrow account for up to 5 years and be accessed by the owner to fund otherwise eligible HOME development costs that are approved ...
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