Explanation
Background: In response to the housing mortgage crisis, the city of Columbus has been awarded $22,845,495 of Neighborhood Stabilization Program (NSP) grant funds from the U.S. Department of Housing and Urban Development (HUD). The funds will provide for the purchase of foreclosed or abandoned properties, redevelopment, rehabilitation or demolition of these properties in order to stabilize neighborhoods and stem the decline of house values of neighboring homes.
This legislation will implement the acquisition portion of the NSP program by authorizing the Development Director to purchase properties in accordance with the program guidelines and to execute any and all documents for conveyance of title to such real property. Acquisitions of property under this legislation will follow the City's NSP Application, adopted by ordinance 1860-2008, and requirements established by HUD under the Program. Properties suitable for redevelopment and blighted properties proposed for demolition will be acquired under this legislation, as stated in the Application. The subsequent disposition will be in accordance with City and NSP program requirements.
Emergency action is requested to begin the purchase of properties as soon as possible in order to facilitate the rehabilitation, redevelopment or demolition of same.
Fiscal Impact: This legislation authorizes the expenditure of $3,000,000 in General Government Grant funds within the Department of Development. The Department's 2009 NSP budget includes funds for the acquisition of properties.
Title
To authorize and direct the Development Director, or his designee, to acquire properties for the NSP Program; to execute any and all documents necessary for conveyance of title; to authorize the expenditure of $3,000,000.00 from the General Government Grants Fund; and to declare an emergency. ($3,000,000.00)
Body
Whereas, ordinance 1860-2008 adopted the City's Neighborhood Stabilization Program, authorized the filing of the Neighborhood Stabilization Program application with HUD, and made a substantial amendment to the Consolidated Plan's 2008 Action Plan; and
Whereas, the City's NSP application specified the expenditure of funds to acquire properties that meet the program's requirements as established in Title III of the Housing and Economic Recovery Act of 2008; and
Whereas, it is necessary to authorize the Development Director, or his designee, to execute any and all documents necessary for conveyance of title in order to acquire properties under the NSP Program; and
Whereas, the matter herein constitutes an emergency in that it is immediately necessary to authorize the acquisition of properties and meet deadlines established by the NSP Program for the immediate preservation of 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 Development Director, or his designee, is authorized to execute any and all documents necessary for conveyance of title in order to acquire properties under the Neighborhood Stabilization Program.
Section 2. That the expenditure of $3,000,000, or so much thereof as may be necessary from the Department of Development, Division No. 44-01, General Government Grant Fund, Fund 220, Grant No. 440500, Object Level One 06, Object Level Three 6601, OCA Code 440502 for the aforesaid purpose is hereby authorized.
Section 3. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby 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.