Label
United North School Homes II LLC
City of Toledo Home Investment Partnerships (HOME) Loans
Toledo City Council
Councilwoman William
Amended
Title
Authorizing the Mayor to modify and amend the HOME Loan Agreements for United North Schools Homes II LLC scattered site affordable housing portfolio; execute and implement the respective Modifications and Amendments to the HOME Loan Agreements, upon certain terms and conditions; 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 4.11% interest rate for a 30-year term HOME Loan as gap financing for development of the 24-unit United North School Homes II LLC scattered site affordable rental housing portfolio in January 2010.
Neighborhood Housing Services of Toledo, Inc., dba NeighborWorks Toledo Region (NTR) has requested forgiveness of the current balance of the United North Schools II LLC HOME Loan including original principal and all accrued interest.
In lieu of forgiveness of the United North Schools II LLC HOME Loan current balance, the City will modify and amend the terms of HOME Loan Agreements in order to provide a measure of debt relief, as properties in the 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 modify and amen...
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