Explanation
BACKGROUND: The purpose of this ordinance is to appropriate and expend HOME Match funds returned to the City as a result of a mortgage payoff.
A project that was developed using HUD's Housing Development Action Grant (HODAG), has been sold. As a result of the payoff of the City's mortgage, the City received $664,727.19 from the original developer of HODAG miscellaneous income, which has been put into the HOME match account for program use.
The regulatory use of these repaid funds is that they are designated as "miscellaneous revenue" (as opposed to program income), and, as per the regulations "shall be used by the Grantee (City) to support the construction, rehabilitation or operation of real property to be used primarily for low and moderate income residential rental purposes."
This legislation is submitted as an emergency so these funds can be immediately reallocated for vital program services.
FISCAL IMPACT: The City received repayment of $664,727.19 of HOME Match funds. This ordinance contains an appropriation within the HOME Match Fund and authorizes expenditure for this purpose.
Title
To authorize the appropriation and expenditure of $664,727.19 of HOME Funds as match dollars for HOME Investment Partnerships for eligible housing projects; and to declare an emergency. ($664,727.19)
Body
WHEREAS, the purpose of this ordinance is to appropriate and expend HOME Match funds returned to the City as a result of a mortgage payoff; and
WHEREAS, A project developed using HUD's Housing Development Action Grant (HODAG), has been sold and as a result of the payoff of the City's mortgage, the City received $664,727.19 of HODAG miscellaneous income, which has been put into the HOME match account for program use; and
WHEREAS, the regulatory use of these repaid funds is that they are designated as "miscellaneous revenue" (as opposed to program income), and, as per the regulations "shall be used by the Grantee (City) to support the construction, rehabilitation or operation of real property to be used primarily for low and moderate income residential rental purposes."; and
WHEREAS, this legislation is submitted as an emergency so these funds can be immediately reallocated for vital program services; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to appropriate and expend said funds, all for the preservation of public health, peace, property, safety and welfare; NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the sum of $664,727.19 is hereby appropriated from the unappropriated balance of Fund 201, the HOME Fund, and from all monies estimated to come into said Fund from any and all sources and unappropriated for any purpose during the fiscal year ending December 31, 2014, to Department 44-10, Object Level One 05, Object Level Three 5528, OCA Code 440538, Grant 458004.
SECTION 2. That the monies appropriated in Section 1 shall be paid upon order of the Director of the Department of Development and that no order shall be drawn or money paid except as by voucher, the form of which shall be approved by the City Auditor.
SECTION 3. That the expenditure of $664,727.19 or so much thereof as may be necessary is hereby authorized from Fund 201, the HOME Fund, Department 44-10, Object Level One 05, Object Level Three 5528, OCA Code 440538, Grant No. 458004, as match dollars for HOME Investment Partnerships for eligible housing projects.
SECTION 4. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 5. That for reasons stated in the preamble hereto, which is hereby made a part hereof, the 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.