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File #: 2004-2017    Version: 1
Type: Ordinance Status: Passed
File created: 7/14/2017 In control: Economic Development Committee
On agenda: 7/31/2017 Final action: 8/3/2017
Title: To authorize the Director of the Department of Development to forgive the principal and accrued interest on an Investment Fund loan due to the City of Columbus totaling approximately $342,432.00; to authorize the Director to enter into contract with Columbus Housing Partnerhsip, dba Homeport, to allow the funds to be allocated to operating costs to the extent of $67,432.00 and to direct the remaining proceeds into an affordable senior housing project in the American Addition neighborhood of Columbus; and to declare an emergency.
Explanation
BACKGROUND: In 1992, Starr/High Limited Partnership obtained a loan of $275,000 in City Investment funds with a 1% interest rate from the City of Columbus for acquisition of the real property at 989-997 North High Street in the Short North Community within the City of Columbus. In 1993, Starr/High obtained a loan of $307,613 in City’s HOME funds with 0% interest for the rehabilitation of the project and it has been providing thirty-five units of affordable housing for eligible residents since that time. Per City Ordinance 0128-2017, Starr/High Limited Partnership (Starr-High), an affiliate of Columbus Housing Partnership dba (Homeport) has sold the building and wishes to reinvest the proceeds from the sale in a new senior housing development within the American Addition neighborhood. Conditions of sale of Starr High 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.

City Ordinance 0128-2017, which dealt with the HOME fund loan, stipulated that the loan of City Investment Funds would be repaid in full. In light of the urgent need to provide affordable senior housing in the North Central neighborhood and for minimizing the total costs related to site acquisition and project development, this legislation will allow Homeport to utilize the repayments that would otherwise come to the City’s Investment Fund, including the principal and accrued interests now in an escrow account, to be reinvested in the American Addition project.

Emergency action is requested so that disposition of the proceeds can be determined.

FISCAL IMPACT: There will be a loss of $275,000 original principal plus $67,432 in City’s CDBG receivable, totaling $342,432 as of June 30, 2017

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