Toledo Discusses NeighborWorks Loan Forgiveness and Housing Program Impacts

The Toledo Housing & Community Development Committee convened on August 28, 2025, to discuss critical issues surrounding housing development and community support, particularly focusing on the United Way ALICE/211 report and the potential forgiveness of HOME loans.

The meeting began with a statement from a community member who emphasized the importance of open dialogue regarding tax credit homes and the city’s past practices of forgiving loans associated with these properties. The speaker highlighted the significant role of NeighborWorks in revitalizing North Toledo, a historically disinvested area, and expressed gratitude for the opportunity to discuss these matters.

Colleen Ali, Deputy Director of the Department of Housing and Community Development, presented a request to relieve mortgage debt obligations for NeighborWorks, funded through HOME investment funds. She outlined the purpose of HOME funds, which are federal block grants aimed at supporting affordable housing initiatives for low-income individuals. Ali noted that the city has utilized these funds for various programs, including down payment assistance and housing rehabilitation.

Ali reported a concerning trend in federal funding, revealing a reduction in HOME allocations from $2 million in previous years to $1.8 million for 2024, with a proposed allocation of $0 for 2026. This decline poses a significant challenge for ongoing housing programs, which rely heavily on federal support.

The discussion then shifted to the importance of loan repayments, which serve as a critical source of program income for the city. Ali highlighted that from 2022 to 2025, the city collected over $1.2 million in home loans, emphasizing the necessity of these funds for sustaining housing initiatives.

Ali also addressed misconceptions regarding loan forgiveness, clarifying that while some loans had modified terms, they were not outright forgiven. She provided detailed analyses of potential revenues from property sales associated with NeighborWorks, suggesting that both the city and NeighborWorks could benefit financially from loan repayments.

The meeting concluded with a call for collaboration to ensure that housing programs continue to meet community needs, particularly in light of the anticipated funding challenges. The committee members expressed their commitment to exploring solutions that would support both the city’s housing initiatives and the financial viability of NeighborWorks.