Committee approves sending HOME‑loan forgiveness ordinance to full council after debate

The Federal Programs Committee voted by voice to send an ordinance to full council that would authorize the safety‑service director to forgive certain outstanding balances tied to the city's long‑running HOME homeowner‑rehab loan program.

The issue matters because the ordinance affects how the city treats decades‑old HOME loans (federal HOME Investment Partnership program funds), and it carries potential program‑income and budgetary implications: staff described options that include writing off loans on deceased borrowers and forgiving remaining interest on deferred loans to align older loans with the city’s updated program rules.

Matt Kuzner, director of Building, Housing and Planning, told the committee the city has administered HOME homeowner‑rehab loans since the early 1990s. He said the older loans typically consisted of a repayable portion and a deferred portion recorded as liens; the deferred portion became due on sale or transfer. Kuzner said, "All of the interest rates on these loans were typically below prime," and that the "most common monthly payment for a…