Explanation
BACKGROUND: This legislation will authorize funding for the first year of a two-year contract with AmeriNational Community Services, Inc. This contract will begin March 1, 2012 and expire on February 28, 2014. This contract provides servicing of housing and commercial loans for primarily the Community Development Block Grant (CDBG), Community Development Block Grant Recovery (CDBG-R) Programs, Home Investment Partnership Program (HOME), and the Neighborhood Stabilization Program (NSP) grants. Competitive bids were solicited for this service in 2011. The 2011 Mortgage Loan Servicing RFP provides for four two-year contract periods.
Contract Compliance Number is 41-1951655 and expires January 12, 2014.
FISCAL IMPACT: AmeriNational Community Services, Inc. receives a service fee based upon the loans serviced each month. The total amount to be authorized for the first year of this two year contract is $185,000. City council authorized the appropriation of Community Development Block Grant funds on January 23, 2012 (Ordinance #0007-2012), NSP-1 Grant funds were appropriated on January 26, 2009 (Ordinance #0007-2009), and NSP-2 Grant funds were appropriated on June 7, 2010 (Ordinance #0800-2010).
This legislation is submitted as an emergency measure to ensure uninterrupted servicing of the loan portfolios.
Title
To authorize the director of the Department of Finance and Management to expend $185,000.00 or so much thereof as may be necessary from the Community Development Block Grant (CDBG) and Neighborhood Stabilization Program (NSP) grants; to authorize a contract with AmeriNational Community Services, Inc. to fund the first year of a two contract for mortgage servicing of housing and commercial loans; and to declare an emergency. ($185,000.00)
Body
WHEREAS, it is desirous to provide the funds for the first year of a two year contract entered into with AmeriNational Community Services, Inc. for the servicing of housing and commercial loans under the Community Development Block Grant (CDBG), HOME Investment Partnerships Program grant, and Neighborhood Stabilization Program (NSP) grants; and
WHEREAS, the city will enter into a two year contract with the funding for the second year of the contract being contingent on the approval and appropriation of funds by City Council; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Finance and Management in that it is immediately necessary to entered into a contract with AmeriNational Community Services, Inc. to ensure uninterrupted servicing of loan portfolios, thereby preserving the public health, peace, property, safety, and welfare; Now, Therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Finance and Management is hereby authorized to enter into the first year of a two year contract with AmeriNational Community Services, Inc. for mortgage loan servicing;
SECTION 2. That for the purpose stated in Section 1, the Director of the Department of Finance and Management is hereby authorized to expend $185,000.00 from the following sources: Community Development Block Grant Fund: Fund 248; Subfund No. 001 and 002, the Neighborhood Stabilization Program (NSP1) Grant Fund: Fund 220; Grant No. 440500, the Neighborhood Stabilization Program (NSP2) Grant fund: Fund 220: Grant No. 451036, Department 45-01 as follows;
Fund 248: Object Object
Subfund Level 1 Level 3 OCA Amount
001 03 3336 451216 $135,000.00
002 03 3336 451217 $ 25,000.00
Fund 220:
Grant
440500 03 3336 450500 $ 15,000.00
451036 03 3336 451039 $ 10,000.00
Total $185,000.00
SECTION 3. That this contract is awarded in accordance with Section 329.14 of the Columbus City Codes, 1959;
SECTION 4. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.