Explanation
BACKGROUND:
In 2009, Anthony McGrapth purchased 521 E. Stewart Avenue, Columbus, Ohio from Community Development for All People which was financed by a first mortgage loan from West Ohio Credit Union for $40,000.00, a second mortgage from Community Development for All People that was assigned to the Ohio Housing Finance Agency (OHFA) for $15,000, down payment assistance from the City of Columbus, Department of Development, Housing Division for $5,000, and a third mortgage from the City of Columbus, Department of Development, Housing Division for $25,000. The OHFA loan is being forgiven over 15 years and will be fully forgiven in 2024. The initial intent of the third mortgage was for it to amortize over a fifteen year period with 5% interest after the first mortgage had been paid in full, fifteen years after the purchase of the home. Anthony McGrapth has requested that the loan be converted from an amortizing loan to a loan that will be at 0% interest and due and payable when the property is sold, transferred, or ceases to be the principal residence of McGrapth and his wife. The McGrapths plan to retire and making mortgage payments on the loan will be a hardship.
The Housing Division is recommending that the loan be modified to add Anthony’s wife, Dawn DeFaye Glenn McGrapth, as a co-borrower of the loan and that the loan be converted to a 0% deferred non-amortizing loan that will be due in full when the property is sold, transferred, or ceases to be the principal residence of Anthony and Dawn DeFaye Glenn McGrapth and extend the term of the loan to 99 years.
Emergency action is requested so that the modification can occur without delay and allow the borrowers to continue the peaceful enjoyment of their home without hardship.
FISCAL IMPACT:
The passage of this ordinance will delay repayment of the loan and result in a loss of interest income. No funding is required for this legislation.
Title
To authorize the Director of the Departmen...
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