Label
United North School Homes 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 School Homes LLC aka United North School Home I 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 2.00% interest rate for a 30-year term HOME Loan as gap financing for development of the 24-unit United North School Homes LLC scattered site affordable rental housing portfolio in October 2008.
Neighborhood Housing Services of Toledo, Inc., dba NeighborWorks Toledo Region (NTR) has requested forgiveness of the current balance of the United North School Homes LLC HOME Loan including original principal and all accrued interest.
In lieu of forgiveness of the United North School Homes 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 amend the terms and conditions of the United North School Homes LLC HOME Loan Agreements as follows:
A. Adjust the original interest rate on the each of the HOME Loans to 0% per annum as of the effective date of adoption of this ordinance;
B. Forgive fifty percent (50%) of the interest on the HOME Loan, accrued as of the date of adoption of this ordinance;
C. At the closing of the sale of each of the remaining homes in the United North School Homes LLC portfolio, NTR or Seller, will pay the city a “Release Payment”, an amount equal to any unpaid principal and remaining 50% accrued interest, prorated by the remaining number of homes in the portfolio.
D. At the closing of the sale of each remaining home in the United North School Homes LLC portfolio, upon payment of the Release Payment, the City shall partially release the Mortgage that secures the HOME Loan Note and unpaid remaining interest.
E. Units being sold by NTR or Seller must pass a HUD Housing Quality Standards inspection conducted by the Department of Housing and Community Development.
SECTION 2. That the Mayor is authorized to deliver and execute a HOME Loan Modification Agreement for the United North School Homes LLC HOME Loan pursuant to terms and conditions outlined in Section I.
SECTION 3. That 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 United North School Homes LLC portfolio; and, upon compliance with terms of the HOME Loan Modification Agreement for United North School Homes LLC.
SECTION 4. 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 11, nays 0.
Passed: September 23, 2025, as an emergency measure: yeas 11, nays 0.
Attest:
Julie A. Gibbons Carrie Hartman
Clerk of Council President of Council
Approved: September 23, 2025
Wade Kapszukiewicz
Mayor