Explanation
BACKGROUND: This legislation will allow the Director of the Department of Development to enter into a Housing Development Agreement (HDA) with Columbus Housing Partnership Inc., for the rehabilitation of George’s Creek apartments, which will ultimately be funded with $4,800,000.00 from future Affordable Housing Bond funds. Once funds become available, an ordinance will be brought to Council to authorize a grant agreement. Columbus Housing Partnership Inc. will enter into a grant agreement with the city for the bond funds as a pass-through entity. Columbus Housing Partnership Inc. is the majority ownership entity of the pass-through entity, George’s Creek Homes Rehab LLC.
George’s Creek is a 120-unit apartment complex for families in southeast Columbus. The property consists of 21, one and two-story residential buildings and a community building on a 12 acre site. The property was constructed in 1995 by Homeport and financed by Low Income Housing Tax Credits (LIHTC), the property has not been extensively renovated since it was first built. George’s Creek offers a mix of housing types, including two and three-bedroom flats and townhomes and four-bedroom flats. On-site amenities consist of a children’s playground, community room, after-school program and social services.
The community currently operates under LIHTC program with 40% and 50% of Area Median Income (AMI) rents, and the current affordability covenant will expire in 2029. The proposed rehabilitation of George’s Creek Apartments using LIHTC financing will offer units at 50% and 60% of AMI, including 26 units with project-based vouchers (PBV), to expand the range of eligible households to include those with extremely low incomes who are in particular need of quality, affordable housing. In 2025, George’s Creek project received a 4% LIHTC award with bond-gap financing. As part of the rehab project there will be a new restrictive covenant that extends the affordability period by another 30 years once construction is complete. The renovations will start in 2026 and last 24 months on a rolling basis to minimize tenant displacement. Community Housing Partnership Inc. aka Homeport is the majority general partner in the property’s current ownership structure. Homeport will be the sole developer of the property’s rehab and remain the majority owner of the general partner.
FISCAL IMPACT: No funding is needed at this time.
CONTRACT COMPLIANCE: the vendor number is 004842 and expires March 5, 2028.
Title
To authorize the Director of the Department of Development to enter into a Housing Development Agreement (HDA) with Columbus Housing Partnership Inc., for the George’s Creek apartment community. ($0.00)
Body
WHEREAS, the Director of Development seeks to enter into a Housing Development Agreement (HDA) with Columbus Housing Partnership Inc., for the George’s Creek apartment community; and
WHEREAS, the HDA would memorialize the City’s desired commitment to the project, pending City Council approval and future availability of funds; and
WHEREAS, the Department of Development wishes to support this project by contributing $4,800,000.00 of bond funds upon availability from the Affordable Housing Bond funds; and
WHEREAS, this legislation would authorize the Director of Development to first execute the HDA and pending the availability of funding from the Affordable Housing Bond the department will seek City Council’s approval to enter into a grant agreement; and
WHEREAS, it is necessary in the usual daily operation of the Department of Development to authorize the Director to enter into a Housing Development Agreement with Columbus Housing Partnership Inc., in order to provide evidence of city funding; the City’s funding commitment is critical for the closing to proceed; 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 a Housing Development Agreement with Columbus Housing Partnership Inc., in support of the rehabilitation of George’s Creek apartments, an affordable housing community; and
SECTION 2. That this ordinance shall take and be in force from and after the earliest period allowed by law.