Explanation
BACKGROUND
In 2016 and 2017, the City of Columbus (the “City”) commissioned a study from HR&A Advisors on the effectiveness of the City’s economic development incentives, including real property tax abatements in Community Reinvestment Areas (“CRAs”). Based on the results of the study, the City revised its policies concerning CRA abatements, and decided to encourage the development of affordable housing by conditioning the provision of CRA abatements, in certain circumstances, on the inclusion of affordable housing. Since then, Chapter 4565 of Columbus City Codes and the City’s CRAs have undergone multiple revisions to address the changing needs of housing development within the City. This code change will adopt certain administrative modifications to Chapter 4565.
Title
To amend specified sections of Chapter 4565 of the Columbus City Codes to enhance administrative efficiency in the Residential Tax Incentive Program by simplifying CRA agreements for select project types; designating the Director of Development as the Housing Officer; clarifying eligibility for purpose built student housing; and aligning fee schedules across designations. ($0.00)
Body
WHEREAS, in 2016 and 2017 the City of Columbus commissioned and received a study from HR&A on the effectiveness of its economic development incentives, including real property tax abatements in Community Reinvestment Areas; and
WHEREAS, in response to the study, the City developed a revised incentive policy to encourage the development of affordable housing in CRAs in stronger market areas within the City by requiring developers to construct affordable housing in consideration of the City granting the developer a tax abatement; and
WHEREAS, in July 2018, City Council passed Ordinance No. 2184-2018, amending Title 45 of the Columbus City Codes to add Chapter 4565 embodying the City’s new residential CRA incentive policy for Post-1994 CRAs; and
WHEREAS, Chapter 4565 of the Columbus City Codes empowers the Director of the Department of Development to assign each residential CRA or census tract within the City one of three housing Area Designations: Market Ready, Ready for Revitalization, or Ready for Opportunity; and
WHEREAS, in accordance with the foregoing, Chapter 4565 requires certain property owners in Market Ready, Ready for Revitalization, and Ready for Opportunity areas to satisfy certain affordable housing requirements to receive a CRA abatement; and
WHEREAS, Chapter 4565 requires the Director to reassess the Area Designations assigned to each post-1994 CRA every three years to evaluate current market conditions based on the criteria outlined in Chapter 4565; and
WHEREAS, Chapter 4565 was updated in 2022 with the passage of 1843-2022; and
WHEREAS, it is now necessary to amend Chapter 4565 in order to make certain administrative modifications; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That Sections 4565.01, 4565.02, 4565.03, 4565.04, 4565.05, 4565.06, 4565.07, 4565.08, 4565.09, and 4565.13 of the Columbus City Codes are hereby amended as identified and included in Exhibit A, attached hereto and incorporated as if fully rewritten herein.
SECTION 2. That existing Sections 4565.01, 4565.02, 4565.03, 4565.04, 4565.05, 4565.06, 4565.07, 4565.08, 4565.09, and 4565.13 of the Columbus City Codes are hereby repealed.
SECTION 3. That all sections of Chapter 4565 not amended and repealed herein remain in full force and effect.
SECTION 4. That this Ordinance shall take effect and be in force from and after the earliest date allowed by law.