Explanation
BACKGROUND
This legislation authorizes the Director of the Department of Development to enter into an agreement with Columbus Housing Partnerships to memorialize the release of escrow funds accumulated from prior federal Neighborhood Stabilization Program (NSP) funding received in support of housing projects.
Columbus Housing Partnership, dba Homeport, was a recipient of NSP funds awarded to the City by the U.S. Department of Housing and Urban Development (HUD) in 2008 and 2009. NSP funds had tight spending deadlines and the City provided construction financing of projects rather than just filling funding gaps so that projects could proceed more quickly.
Upon sale of each home, it was agreed that the developer would provide a breakdown to the City of total funds expended on each home including NSP funding and developer funds and what program income was to be returned to the City. Of the 39 homes developed by Homeport with NSP funds, 4 homes still have funds in escrow that have not been fully reconciled. Homeport has provided an estimate of the breakdown on funds that should be distributed to the City and funds that should be distributed to Homeport.
At this time, the title company holding the escrow funds insists that all funds be disbursed. The City and Homeport wish to enter into an agreement that would allow the funds to be disbursed based on the estimates with the understanding that if there are any adjustments made to the fund balances that there will be payment made from one party to the other. If there are any additional funds to be paid by the City, those payments will be brought to City Council for approval. A total of $367,132.43 remains in escrow with an estimate that $124,368.70 should go to Homeport and $242,763.73 should go to the City.
Emergency Action is requested to disburse the funds so they can be used for other projects.
FISCAL IMPACT: No funding is needed
CONTRACT COMPLIANCE: the vendor number is 004842 and exp...
Click here for full text