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File #: O-455-19    Version: Name:
Type: Ordinance Status: Approved
File created: 9/19/2019 In control: Neighborhoods Department
On agenda: 11/12/2019 Final action: 11/12/2019
Title: Authorizing the Mayor to execute a loan modification agreement on the Low-Income Housing Tax Credit Project for 48 scattered site, single family rental housing units called Autumn Wood I that provides for the partial release of twelve (12) single family unit mortgages in an amount not to exceed Twenty Five Thousand Dollars ($25,000.00), as well as providing those purchasers of the twelve (12) single unit family homes down payment assistance in the amount of the partial release so that their mortgage is no greater than Fifty Thousand Dollars ($50,000.00); in addition agreement shall also forgive accrued interest and set interest rate at 0% on the original Three Hundred Thousand ($300,000.00) HOME loan and also provide that city shall monitor compliance with terms of agreement by reviewing and approving closing statements for initial twelve (12) home sales; and declaring an emergency.
Attachments: 1. Audio: Agenda Review 9/24/2019, 2. Audio: City Council 10/1/2019, 3. Closing Statement - AW I, 4. Closing Statement - AW II, 5. Audio: Agenda Review 10/8/2019, 6. Audio: City Council October 15, 2019, 7. Audio: Agenda Review 10/22/2019, 8. Audio: City Council October 29, 2019, 9. Audio: City Council November 12, 2019
Label
Autumn Wood I Portfolio
Department of Neighborhood and Business Development
Amy Sackman Odum (x3647) Veronica Burkhardt (2605)

Title
Authorizing the Mayor to execute a loan modification agreement on the Low-Income Housing Tax Credit Project for 48 scattered site, single family rental housing units called Autumn Wood I that provides for the partial release of twelve (12) single family unit mortgages in an amount not to exceed Twenty Five Thousand Dollars ($25,000.00), as well as providing those purchasers of the twelve (12) single unit family homes down payment assistance in the amount of the partial release so that their mortgage is no greater than Fifty Thousand Dollars ($50,000.00); in addition agreement shall also forgive accrued interest and set interest rate at 0% on the original Three Hundred Thousand ($300,000.00) HOME loan and also provide that city shall monitor compliance with terms of agreement by reviewing and approving closing statements for initial twelve (12) home sales; 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.

Autumn Wood I originated as a portfolio with 48 single-family housing units under the auspices of Preferred Properties, Inc., identified as Autumn Wood Limited Partnership. An investment of $300,000 of HOME Investment Partnerships (HOME) funds was made to this project. This project, while close to 100% occupancy, has a high debt ratio. The request is for a loan modification agreement ("Agreement") that provides forgiveness of the $300,000 HOME loan but in a...

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