Explanation
BACKGROUND: This legislation authorizes the appropriation and expenditure of up to $400,000.00 of 2023 HOME Investment Partnerships Program (HOME) grant funds from the U.S. Department of Housing and Urban Development (HUD) and authorizes the Director of the Department of Development execute a commitment letter and loan agreement with Juniper Crossing Limited Partnership for the Juniper Crossing project in an amount up to $400,000.00 and authorizes the city, through the Department of Development, to act as a lender and have a commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant executed by Juniper Crossing Limited Partnership for the project.
Woda Cooper Companies, Inc. (“WCCI”) is proposing the Juniper Crossing project. Juniper Crossing phase 1 is a proposed 44-unit senior 55+ affordable housing development located at 60 Obetz Road in the Far South neighborhood in Columbus, Ohio.
Juniper Crossing will target households with incomes at 30% to 70% of area median gross income. Juniper Crossing will offer fifteen (15) one-bedroom units and twenty-nine (29) two-bedroom units. The target population for Juniper Crossing will be seniors aged 55+. Juniper Crossing will include the construction of a three-story elevator building with various amenities including: on-site management office, community room with kitchenette, and more.
As a condition to accepting this funding, Borrower agrees that five (5) units affordable at 30% AMI will be offered first to households currently in the shelter system with incomes that would be sufficient to pay the 30% AMI rents and meet all other criteria in the Tenant Selection Plan with the exception of an eviction due to non-payment of rent. The project is within steps of COTA bus stops along South High Street and Obetz Road, multiple grocery stores providing access to fresh produce, several restaurants, adjacent to the Central Ohio Area Agency on Aging, and a half a mile from Scioto Southland Community Center.
The entire project will be designed and constructed to achieve the City of Columbus’ AWARE standards as well as obtain Leadership in Energy & Environmental Design (LEED) - silver or comparable energy efficiency certification. In addition, 10% of the dwelling units will be accessible for persons with mobility disabilities and an additional 2% of dwelling units will be accessible for persons with hearing or visual disabilities.
This legislation represents appropriation for a part of the HOME portion of the 2023 Action Plan, per Ordinance 3353-2022.
Emergency action is requested to allow the Director of Development to immediately execute a commitment letter and loan agreement with the developer in preparation for the project’s closing. The City’s funding source is a critical component of the project funding. A delay in execution of the city’s financial support documents may result in increased project costs and delayed closing.
Contract Compliance: the vendor number is 048849 and expires 04/18/2026.
Fiscal Impact: $400,000.00 is available from the 2023 HOME grant (G442202). The commitment of funds through this legislation is conditioned on compliance with HUD’s environmental review requirements. The funding from HOME Fund (2201) is only authorized if all HOME review and comment requirements have been met prior to any commitment of funds, as approved by the Responsible Entity Agency Official. An Authorization to Utilize Grant Funds will be received by the City from HUD in advance of the execution of documents for this project.
Title
To authorize the appropriation and expenditure of up to $400,000.00 of 2023 HOME Investment Partnerships Program (HOME) entitlement funds from the U.S. Department of Housing and Urban Development (HUD); to authorize the Director of the Department of Development to execute a commitment letter and loan agreement with Juniper Crossing Limited Partnership for the Juniper Crossing project in an amount up to $400,000.00; to authorize the city, through the Department of Development, to act as a lender and have a commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant executed by Juniper Crossing Limited Partnership for the project; and to declare an emergency. ($400,000.00).
Body
WHEREAS, the City of Columbus is a participating jurisdiction of the U.S. Department of Housing and Urban Development; and
WHEREAS, the City of Columbus is the recipient of HOME Investment Partnerships funds from the U.S. Department of Housing and Urban Development; and
WHEREAS, the Columbus City Council has approved the 2023 Action Plans, per Ordinance 3353-2022, respectively, as required by HUD; and
WHEREAS, the Director of the Department desires to support the Juniper Crossing project with HOME funds, in an amount up to $400,000.00; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is necessary to allow the Director of Development to immediately execute a commitment letter and loan agreement with the developer in preparation for the project’s closing as a delay in execution of the city’s financial support documents may result in increased project costs, 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 and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the fiscal year ended December 31, 2024, the sum of $400,000.00 is appropriated in Fund 2201 (HOME), from Dept-Div 44-10 (Housing), G442202 (2023 HOME), object class 05 (Other Expenses) per the account codes in the attachment to this ordinance.
SECTION 2. That the expenditure of $400,000.00 or so much thereof as may be needed, is hereby authorized in Fund 2201 (HOME), Dept-Div 4410 (Housing), G442202 (2023 HOME), object class 05 (Other Expenses) per the account codes in the attachment to this ordinance.
SECTION 3. That the Director of Development is hereby authorized to execute a commitment letter and loan agreement with Juniper Crossing Limited Partnership for the Juniper Crossing project in an amount up to $400,000.00 and authorizes the city, through the Department of Development, to act as a lender and have a promissory note, mortgage, and restrictive covenant executed by Juniper Crossing Limited Partnership for the project.
SECTION 4. That funds are hereby deemed appropriated and expenditures and transfers authorized to carry out the purposes of this ordinance and the City Auditor shall establish such accounting codes as necessary.
SECTION 5. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 6. That at the end of the grant period, any repayment of unencumbered balances required by the grantor is hereby authorized and any unused City match monies may be transferred back to the City fund from which they originated in accordance with all applicable grant agreements.
SECTION 7. That the commitment of funds through this legislation is conditioned on compliance with HUD’s environmental review requirements. The funding from HOME Fund (2201) is only authorized if all HOME review and comment requirements have been met prior to any commitment of funds, as approved by the Responsible Entity Agency Official. An Authorization to Utilize Grant Funds will be received by the City from HUD in advance of the execution of documents for this project.
SECTION 8. 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 approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.