Explanation
BACKGROUND: On December 10, 2001, Council passed Ordinance No. 2174-01 authorizing the Director of the Department of Development to expend $120,000.00 from the General Government Grant Fund for the provision of loans through the Homeownership Development Program. This legislation authorizes the reappropriation and expenditure of $30,000 from the General Government Grant Fund.
The Columbus Metropolitan Housing Authority is working in conjunction with the City's Homeownership Development Program to create homeownership opportunities in the Linden area for first-time homebuyers. The City has committed CDBG Funds through the Homeownership Development Program to Greater Linden LLC, An Ohio Limited Liability Company, to provide soft second mortgages to buyers of the 7 new 3-bedroom homes the Partnership is constructing on Chittenden Avenue at Four Corners. In addition to the City's soft second mortgage for each buyer, CMHA is providing an additional $15,000 soft second mortgage to buyers. These mortgages will be forgiven after six years as long as the buyer remains in the home. Two potential homebuyers, who were under contract to close on two homes using the $15,000 soft second from CMHA, exercised the right of rescission to cancel the purchase of the homes after the City Auditor had already cut checks. Therefore, the $30,000 must be reappropriated in order to access CMHA grant funds for new homebuyers and complete the sale of all seven homes.
This legislation is presented as an emergency because the remaining two unsold homes are under contract and due to close soon.
FISCAL IMPACT: This legislation appropriates these funds to the Department of Development and authorizes their expenditure from the General Government Grant Fund.
Title
To authorize the appropriation of $30,000 from the unappropriated balance of the General Government Grant Fund to the Department of Development; to authorize the Director of the Department of Development to expend $30,000 from the General Government Grant Fund for the provision of loans through the Homeownership Development Program; and to declare an emergency. ($30,000.00)
Body
WHEREAS, the Director of the Department of Development wishes to appropriate and expend $30,000.00 from the General Government Grant Fund for the provision of loans through the Homeownership Development Program; and
WHEREAS, these monies will create homeownership opportunities in the Linden area for first-time homebuyers, and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development, Housing Division, in that it is immediately necessary to appropriate and expend the aforementioned funds thereby preserving the public health, peace, property, safety and welfare and, NOW, THEREFORE:
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That from the unappropriated monies in the fund known as the General Government Grant Fund, and from any and all sources unappropriated for any other purpose during the fiscal year ending December 31, 2003, the sum of $30,000.00 be and is hereby appropriated to the Department of Development, Housing Division, Department No. 44-10, Fund 220, Grant No. 441008 Object Level One 05, Object Level Three 5528, OCA Code 447008.
Section 2. That the Director of the Department of Development is hereby authorized to expend General Government Grant Funds for the provision of loans through the Homeownership Development Program.
Section 3. That for the purpose stated in Section 2 hereof, the expenditure of $30,000.00, or so much thereof as may be necessary, is hereby authorized as follows: Department Number 44-10, Fund 220, Grant Number 441008, Object Level One 05, Object Level Three 5528, OCA Code 447008.
Section 4. That for the reasons stated in the preamble hereto, which is hereby made a part thereof, 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.