Label
West Central Homes Portfolio
Department of Housing and Community Development
Director Rosalyn Clemens (x3647)
Title
Authorizing the Mayor to execute the Modification and Amendment HOME Loan Agreement ("Agreement") with West Central Homes LLC with respect to the thirty-two (32) scattered site, single family rental housing units located within the West Central Homes 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 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.
The 32-unit scatter site West Central Homes portfolio was developed by West Central Homes LLC. In 2005, the City of Toledo invested $320,000 of HOME Investment Partnerships (HOME) gap financing in the project at an interest rate of 5.58 % per annum, compounded semi-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 West Central Homes 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 is also offering a Key Bank financed mortgage product for pu...
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