Council amends and refers proposed ordinance to forgive certain home loans to Federal Programs Committee

Lorain City Council considered an ordinance introduced by Councilwoman Carter that would authorize the safety/service director to forgive certain outstanding home loans. Council members amended the ordinance by substitute and then voted to send the matter to the Federal Programs Committee for further consideration.

Councilwoman Carter moved the initial ordinance and later moved the amendment by substitution for the ordinance and exhibits A through E. The council voted to adopt the substitute amendment; the vote on the substitute passed with two members recorded as voting against the substitution. After the substitution passed, Councilwoman Carter moved to refer the amended measure to the Federal Programs Committee; the referral motion carried unanimously.

Why it matters: The ordinance, as drafted and amended, would change the status of specific city loan receivables if ultimately approved. Council members and at least one public commenter noted fiscal concerns about writing off outstanding balances while the city faces tight budgets.

Procedure and next steps: The ordinance will be considered within the Federal Programs Committee, which the council recommended for more detailed review of individual loan cases, possible legal implications and options for recovering funds. No final forgiveness or discharge was enacted at the meeting; council action was limited to amendment and committee referral.