Explanation
BACKGROUND: This ordinance authorizes the Director of the Department of Development to enter into a grant agreement with Seton South Columbus Inc. for the renovation of Seton Square South & West a 108-unit affordable housing project in an amount up to $3,000,000.00. This ordinance represents $1,000,000.00 of the $3,000,000.00 commitment. Legislation will be put forth at a later time for the remaining $2,000,000.00. Seton South Columbus Inc. will enter into a grant agreement with the city for the bond funds as a pass-through entity to Seton Square South & West Limited Partnership. These are affiliated entities with common ownership and control. An amendment to the 2025 Capital Improvement Budget is also necessary to establish authority. Seton Square South & West will be a newly renovated multi-family residential development.
This multifamily affordable housing renovation project is aimed at revitalizing a community through substantial rehabilitation, while maintaining affordability for its residents. This project is 100% Project Rental Assistance Contracts (PRAC) subsidized, ensuring that the housing remains accessible to low-income individuals and families. The renovation is substantial in scope and will focus on enhancing both the interior and exterior of the properties to improve the quality of life for residents. This renovation will substantially improve the living conditions for residents while preserving the affordability. The renovations include but are not limited to updating critical systems, enhancing interior spaces, and improving exterior amenities. The project aims to create a safer, more comfortable, and more vibrant community for current and future residents.
The renovations are set to start the Summer of 2026 and will take approximately 18 months to complete. Seton Square South will come online first with 60 units July 2027 followed by Seton Square West with 48 units March of 2028. Relocation efforts have started and anticipate the first move-outs by July 2026. No resident will be permanently displaced, and the development will pay for all costs, including rent, for temporarily displaced residents.
EMERGENCY DESIGNATION: Emergency action is requested to meet the project’s timeline and to ensure timely receipt of the grant agreement to allow the developer to close on their construction loan. Without emergency action, new affordable housing would be further delayed from a low-income community in urgent need of it.
FISCAL IMPACT: Funding for this project will not be available to the Department of Development until the bonds are sold related to the 2025 Capital Improvement Budget, and are available at a future date, therefore it is necessary to certify the required funds, in an amount up to $1,000,000.00 against the General Fund 1000, Income Tax Set Aside Subfund 100099. The fund will be reimbursed upon receipt of the bonds. There is sufficient authority for this project.
CONTRACT COMPLIANCE: the vendor number is 055343 and expires 06/02/2028
Title
To authorize the Director of Development to enter into a grant agreement with Seton South Columbus Inc. in an amount up to $1,000,000.00 of a $3,000,000.00 commitment for Seton South Columbus Inc. to act as a passthrough entity with Seton Square South & West Limited Partnership in support of the renovation of 108-units of affordable apartment homes within the Seton Square South & West project; to authorize the amendment to the 2025 Capital Improvement Budget; to authorize the appropriation of funds within the Income Set Aside Subfund and the Affordable Housing Bond Fund; to authorize the transfer of cash between the Income Tax Set Aside Subfund and the Affordable Housing Bond Fund; to authorize the expenditure in an amount up to $1,000,000.00 within the Affordable Housing Bond Fund; and to declare an emergency. ($1,000,000.00)
Body
WHEREAS, the Director of the Department of Development seeks to enter into a grant agreement with Seton South Columbus Inc. which will act as a passthrough with Seton Square South & West Limited Partnership, for the renovation of 108-unit affordable housing project, called Seton Square South & West in an amount up to $3,000,000.00 of which only $1,000,000.00 is authorized with this ordinance; and
WHEREAS, these apartments are and will be for low-income individuals and families and are 100% Project Rental Assistance Contracts (PRAC) subsidized, ensuring that the housing remains accessible to low-income residents
WHEREAS, it is necessary to certify the required funds, in the amount up to $1,000,000.00 dollars against the General Fund 1000, Income Tax Set Aside Subfund 100099 and authorize the appropriation and transfer of the funds in the amount up to $1,000,000.00 from the Income Tax Set Aside Subfund to the Affordable Housing Bond Fund and authorize the appropriation within the Affordable Housing Bond Fund.
WHEREAS, it is necessary to authorize the expenditure within the Affordable Housing Bond Fund in an amount up to $1,000,000.00; and
WHEREAS, the City anticipates incurring certain Original Expenditures (as defined in Section 1.150-2(c) of the Treasury Regulations (the "Treasury Regulations") promulgated pursuant to the Internal Revenue Code of 1986, as amended) with respect to the construction of the project described in this ordinance (the "Project"); and
WHEREAS, the City will reimburse the General Fund 1000, Income Tax Set Aside Subfund 100099; and
WHEREAS, this transfer should be considered as a temporary funding method; and
WHEREAS, the aggregated principal amount of obligations which the City will issue to finance this project is presently expected not to exceed $1,000,000.00; and
WHEREAS, it is necessary to authorize the amendment to the 2025 Capital Improvement Budget 1790-2025 in order to provide sufficient budget authority for this project; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to authorize the Director to enter into a grant agreement with the Seton South Columbus Inc. in order to maintain the project schedule and to meet deadlines for this project, all for the immediate preservation of the public health, peace, property, safety, and welfare; NOW,THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Development be and is hereby authorized to enter into a grant agreement with Seton South Columbus Inc. which will act as a passthrough with Seton Square South & West Limited Partnership in an amount up to $3,000,000.00 of which only $1,000,000.00 is authorized at this time for the Seton Square South & West project.
SECTION 2. That from the unappropriated monies and from all monies estimated to come into said funds from any and all sources and unappropriated for any other purpose during the fiscal year ending December 31, 2026, the sum of $1,000,000.00 is appropriated within General Fund 1000, Income Tax Set Aside Subfund 100099, in Object Class 10 Transfer Out Operating, and into the Affordable Housing Bond fund No. 7779, in Object Class 06 Capital Outlay per the account codes in the attachment to this ordinance.
SECTION 3. That the transfer of $1,000,000.00 or so much thereof as may be needed, is hereby authorized between the General Fund 1000, Income Tax Set Aside Subfund 100099, and the Affordable Housing Bond fund No. 7779, per the account codes in the attachment to this ordinance.
SECTION 4. That the 2025 Capital Improvement Budget authorized by ordinance 1790-2025 be amended as follows to establish sufficient authority for this project:
Fund / Project / Project Name / C.I.B. / Change / C.I.B. as Amended
7779/P782012-1000000 Affordable Housing Funds (Voted 2022 ITSA Supported) $44,200,000.00/($1,000,000.00)/$43,200,000.00
7779 / P782050-100029 Seton Square South & West (Voted 2022 ITSA Supported)/ $0 / $1,000,000.00/ $1,000,000.00
SECTION 5. That for the purpose as stated in Section 1, the expenditure of $1,000,000.00, or so much thereof as may be necessary, is hereby authorized in fund 7779 (Affordable Housing Bond fund), Project P782050-100029, Dept. 44-10 (Housing), in Object Class 06 (Capital Outlay) per the accounting codes in the attachment to this ordinance.
SECTION 6. That upon obtaining other funds, the City Auditor is hereby authorized and directed to repay the General Fund 1000, Income Tax Set Aside Subfund 100099 the amount transferred under Section 3.
SECTION 7. That the City intends that this ordinance constitute an "official intent" for purposes of Section 1.150 2(e) of the Treasury Regulations, and that the City reasonably expects to reimburse itself for certain Original Expenditures incurred with respect to the Project from the proceeds of obligations to be issued by the City in a principal amount currently estimated to be $1,000,000.00 (the "Obligations").
The City intends to make a reimbursement allocation on its books for the Original Expenditures not later than eighteen months following the later to occur of the date of the Original Expenditure to be reimbursed or the date the Project for which such Original Expenditures were made is "placed in service" within the meaning of Treasury Regulations Section 1.150 2(c). Upon the issuance of the Obligations, the proceeds of such Obligations shall be used to reimburse the fund from which the advance for costs of the Project will be made.
SECTION 8. 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 9. 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 10. That the City Auditor is hereby authorized to transfer the unencumbered balance in a project account to the unallocated balance account within the same fund upon receipt of certification by the Director of the Department administering said project that the project has been completed and the monies are no longer required for said project.
SECTION 11. 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 passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.