Explanation
BACKGROUND: The Housing Division has operated programs focused on stabilizing low income homeowners since at least 1986. These programs provide critical and emergency home repairs such as roof replacements, water heater replacement, foundation stabilization, home modifications, connection to city water and sewer services. These services are a critical tool to ensure that residents are not faced with homelessness or additional financial hardship.
Historically, the programs have been funded by both local and federal funding sources, in the form of both grants and loans. Recognizing that there is a limited useful life of the home improvement and value for the City’s investment as well as the importance of ensuring that the City’s programs do not perpetuate inequitable outcomes or limit wealth building opportunities for those who have faced a legacy of systematic disinvestment; the Department of Development will implement a loan forgiveness policy for its homeownership services. All federally funded loans that will be considered for forgiveness will have met all required affordability periods of the federal funding source.
This legislation authorizes the Director of the Department of Development, to establish and implement the loan forgiveness policy associated with the Housing Division Homeowner Services programs on loans closed on behalf of the City of Columbus. The policy is guided by Sections 335.01 and 335.012 and will allow the Director to authorize the forgiveness of individual loans up to $2,500, the City Attorney to forgive individual loans up to $20,000, and loans over $20,000 will require City Council approval. The full policy to determine eligibility of qualifying loans is outlined in Exhibit A.
Emergency action is requested in order to immediately establish and implement the policy to allow for the immediate review of the loan portfolio and the forgiveness of eligible loans to remove the burden for qualifying homeowners to help support...
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