Explanation
Background: This legislation authorizes the Director of the Department of Development to enter into contracts with four non-profit organizations to provide HUD-Certified homebuyer education. 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, and the 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 Homebuyer Education portion of NSP which requires all NSP homebuyers to complete HUD Certified homebuyer education prior to buying an NSP funded home.
Fiscal Impact: This legislation authorizes the expenditure of $250,000 in General Government Grant funds within the Department of Development. The Department's 2009 NSP budget includes funds for homebuyer education.
Title
To authorize the Director of the Department of Development to enter into various contracts for the provision of homebuyer education services; and to authorize the expenditure of $250,000 from the General Government Grant Fund. ($250,000.00)
Body
WHEREAS, the Director of the Department of Development desires to enter into contracts with four non profit organizations for the provision of HUD-Certified homebuyer education services; and
WHEREAS, the City's NSP application specified the expenditure of funds to redevelop properties through renovation and new construction that meet the program's requirements as established in Title III of the Housing and Economic Recovery Act of 2008; and
WHEREAS, Columbus Housing Partnership, Columbus Urban League, Homes on the Hill CDC and Mid-Ohio Regional Planning Commission are non-profit organizations with the capacity to provide HUD-Certified homebuyer education; and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of the Department of Development is hereby authorized to enter into contracts with the Columbus Housing Partnership, Columbus Urban League, Homes on the Hill and Mid-Ohio Regional Planning Commission for the purpose of providing HUD-Certified homebuyer education.
Section 2. That for the purpose as stated in Section 1, the expenditure of $250,000 or so much thereof as may be necessary, is hereby authorized from the Department of Development, Housing Division, Department No. 44-10, Fund No. 220, Grant 440500, Object Level One 03, Object Level Three 3337, OCA 440509 as follow:
AGENCY AMOUNT
Columbus Housing Partnership $100,344
Columbus Urban League $58,081
Homes on the Hill $42,306
Mid-Ohio Regional Planning Commission $49,269
Total Allocation $250,000
Section 3. That these contracts are awarded pursuant to Section 329.15 of the Columbus City Codes, 1959 as amended.
Section 4. That expenditure of funds from this authorization will be in accordance with U.S. Department of Housing and Urban Development Regulations for the Neighborhood Stabilization Program as established under Title III of the Housing and Economic Recovery Act of 2008 (HERA).
Section 5. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.