Label
Oakwood Homes III Portfolio
Department of Housing and Community Development
Director Rosalyn Clemens (x3647)
Revised
Title
Authorizing the Mayor to execute the Modification and Amendment HOME Loan Agreement with TCCN Homes III Limited Partnership with respect to the sixteen (16) scattered single family housing units located within the Oakwood Homes III Project upon certain terms and conditions; 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 projects to sell tax credits to investors to provide the capital necessary to build a project. Locally, community development corporations have used LIHTC as a financing tool to build many units of affordable housing and promote homeownership in Toledo.
The 16-unit scatter site Oakwood III portfolio was developed by TCCN Homes III Corporation as General Partner and Limited Partner, Huntington Community Development Corporation. In 2005, the City of Toledo invested $360,000 of HOME Investment Partnerships (HOME) gap financing in the project at an interest rate of 4.84% per annum, compounded annually. To prevent failure of the project prior to the end of the 16-year LIHTC compliance period, Neighborworks Toledo Region ("NTR") was recruited by the City and the original investors to join the partnership and stabilize the portfolio. NTR continues to operate the Oakwood III portfolio; and through the Year 16 LIHTC Initiative, works to convert existing tenants to homeowners through the Financial Opportunity Center ("FOC"). NTR has refurbished or completed new construction of some units that were vacant or demolished. NTR has requested forgiveness of the HOME debt including outstanding accrued interest and principal to allow for the sale of the units and setting the interest on the HOME loan at 0%. NTR ...
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