Label
South Toledo Homes II Ltd.
City of Toledo Home Investment Partnerships (HOME) Loan
Department of Housing and Community Development
Rosalyn Clemens (3647)
Revised
Title
Authorizing the Mayor to enter into a modified and amended HOME Loan Agreement for South Toledo Homes II Ltd. dba South East Toledo Home II scattered site affordable housing portfolio; and declaring an emergency.
Body
SUMMARY & BACKGROUND:
The Home Investment Partnerships Program (HOME) provides formula grants to the City of Toledo to fund a wide range of activities including building, buying, and/or rehabilitating affordable housing for rent or homeownership or providing direct rental assistance to low-income people. It is the largest Federal block grant to state and local governments designed exclusively to create affordable housing for low-income households.
In addition to annual HOME formula grants, the City recoups program income from the repayment of HOME loans to create affordable housing and support ongoing HOME eligible activities.
The City of Toledo provided a loan in the amount of $370,000.00 with 5.5% interest rate for a 20-year term HOME Loan as gap financing for development of the 25-unit South East Toledo Home II scattered site affordable rental housing portfolio in December 2007.
Neighborhood Housing Services of Toledo, Inc., dba NeighborWorks Toledo Region (NTR) has requested forgiveness of the current balance of the South East Toledo Home II HOME Loan including original principal and all accrued interest.
In lieu of forgiveness of the South East Toledo Home II HOME Loan current balance, the City will modify and amend the terms of HOME Loan Agreement in order to provide a measure of debt relief, as properties in the South East Toledo Home II portfolios are sold.
Summary
NOW THEREFORE Be it ordained by the Council of the City of Toledo:
SECTION 1. That the Mayor is authorized to enter into a modified and amended HOME Loan Agreement for South Toledo Homes II Ltd. dba South East Toledo Home II scattered site affordable housing portfolio containing substantially the following terms:
A. Adjust the original interest rate on the each of the HOME Loans to 0% per annum as of September 30, 2025;
B. Forgive fifty percent (50%) of the interest on the HOME Loan, accrued as of September 30, 2025.
C. At the closing of the sale of each of the remaining homes in the South East Toledo Home II portfolio, NTR or Seller, will pay the city a “Release Payment”, an amount equal to any unpaid principal and remaining 50% accrued interest in the amount of $233,639.40 as of September 30, 2025, prorated by the remaining number of homes in the portfolio.
D. At the closing of the sale of each remaining home in the South East Toledo Home II portfolio, upon payment of the Release Payment, the City shall partially release: the Mortgage that secures the HOME Loan Note; and unpaid remaining accrued interest.
E. Units being sold by NTR or Seller must pass a HUD National Standards for the Physical Inspection of Real Estate (NSPIRE) inspection conducted by the Department of Housing and Community Development.
F. That the HOME Loan 20-year term be extended to a 30-year term with a maturity date of 2038.
SECTION 2. That upon compliance with terms of the HOME Loan Modification Agreement for South Toledo Homes II Ltd., the Mayor is authorized to deliver, execute and record a Partial Release of Mortgage, at closing of the sale of each of the remaining housing units in the South East Toledo Home II portfolio.
SECTION 3. 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 fostering of homeownership and the immediate preservation of safety and wellbeing 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