Label
Toledo City Council
Councilwoman Williams
Title
Authorizing the Mayor to execute and deliver needed instruments to forgive the loan balance and release the mortgage and security interests with respect to the 24 scattered site single family rental housing Low-Income Housing Tax Credit Project known as United North School Homes LLC; and declaring an emergency.
Body
SUMMARY & BACKGROUND:
The Low-Income Housing Tax Credits program (LIHTC) is a public tool used to provide funding for the development of affordable housing. The federal government allows developers of particular affordable-housing project to sell tax credits to investors to provide the capital necessary to build the project. Locally, community development corporations have used LIHTC as a financing tool to build many units of affordable housing and promote homeownership in Toledo.
United North School Homes II LLC originated as 24 single-family housing units under the auspices of United North Corporation. An investment of $370,000 of HOME Investment Partnerships funds was made to this project. United North Corporation is the sole member and general partner of United North Homes Schools II LLC. United North Corporation is a strategic alliance between North River Development Corporation and Lagrange Development Corporation. This project has not achieved the success intended under the LIHTC. This request is to deliver a Release of Mortgage through forgiveness of the note and move the portfolio into the hands of a stable entity.
The City of Toledo, have been instrumental in working toward securing the portfolio toward a local partner, Neighborworks Toledo Home Region, that will work with tenants to move them toward homeownership, along with homebuyer counseling, financial literacy, home maintenance and education opportunities.
Summary
NOW THEREFORE Be it ordained by the Council of the City of Toledo:
SECTION 1. That the Mayor is authorized to execute and deliver a release of the United North Homes Schools II LLC Mortgage and related security interests and forgiveness of the loan in the amount of $370,000.
SECTION 2. That this ordinance is declared to be an emergency measure and shall be in force and effect from and after its passage. The reason for the emergency lies in the fact that same is necessary for the immediate preservation of safety and well-being of current tenants.
Vote on emergency clause: yeas _____, nays _____.
Passed: _________________, as an emergency measure: yeas _____, nays _____.
Attest: ________________________ __________________________________
Clerk of Council President of Council
Approved: _____________________ __________________________________
Mayor
I hereby certify that the above is a true and correct copy of an Ordinance passed by Council ________________________.
Attest: ________________________
Clerk of Council