Explanation
Background: In response to the housing mortgage crisis, the city of Columbus has been awarded $4,843,460 of Neighborhood Stabilization Program 3 (NSP3) grant funds from the U.S. Department of Housing and Urban Development (HUD). The funds will provide for the purchase of foreclosed or abandoned properties, and the redevelopment, rehabilitation or demolition of these properties in order to stabilize neighborhoods and stem the decline of house values of neighboring homes.
This legislation will implement NSP3 activities including the purchase of foreclosed or abandoned properties, and the redevelopment, rehabilitation or demolition of foreclosed or abandoned properties in order to stabilize neighborhoods and stem the decline of house values of neighboring homes. The NSP3 Redevelopment Fund and the NSP3 50% AMI Fund will assist for-profit and non-profit developers with grants and no or low interest loans for projects designed to reduce the number of vacant and abandoned properties, and to increase and preserve the local supply of decent, safe, sanitary, and affordable housing for low, moderate and middle income families. The NSP 50% AMI Fund is established in accordance with HUD regulations for the NSP program which state that 25% of the City's allocation must be designated to benefit households at or below 50% of the Columbus' area median income (AMI).
Redevelopment under this legislation will follow the City's NSP3 Application adopted by ordinance 0162-2011 (including the AWARE green construction standards), adhere to requirements established by HUD under the Program, and be guided by the Neighborhood Redevelopment/Housing Market Study completed by VWB Research on behalf the City under the NSP1 grant.
Emergency action is requested to begin the redevelopment of properties as soon as possible and to meet deadlines established by HUD for the NSP3 Program.
Fiscal Impact: This legislation authorizes the expenditure of $3,282,460 from the $4,843,460 NSP3 grant. The Department's 2011 NSP3 budget includes funds for the redevelopment of properties. Companion ordinance 0782-2011 authorizes the appropriation of these funds.
Title
To authorize and direct the Development Director, or his designee, to acquire properties for the NSP3 Program and to execute any and all documents necessary for conveyance of title; to authorize the expenditure of $3,282,460.00 from the General Government Grant Fund to provide funding for approved 2011 programs; and to declare an emergency. ($3,282,460.00)
Body
Whereas, ordinance 0162-2011 adopted the City's Neighborhood Stabilization Program, authorized the filing of the Neighborhood Stabilization Program application with HUD, and made a substantial amendment to the Consolidated Plan's 2010 Action Plan; and
Whereas, the City's NSP3 application specified the expenditure of funds to acquire and redevelop properties through renovation and new construction: and
Whereas, it is necessary to authorize the Development Director, or his designee, to assist for-profit and non-profit developers with grants and no or low interest loans for projects under the NSP Program; and
Whereas, the City's NSP3 application specified the expenditure of funds to acquire properties; and
Whereas, it is necessary to authorize the Development Director, or his designee, to execute any and all documents necessary for conveyance of title in order to acquire properties under the NSP3 Program; and
Whereas, the matter herein constitutes an emergency in that it is immediately necessary to authorize the redevelopment of properties and meet deadlines established by the NSP3 Program, 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 Development Director, or his designee, is authorized to execute any and all documents necessary for conveyance of title in order to acquire properties under the Neighborhood Stabilization Program 3 (NSP3), and to assist for-profit and non-profit developers with grants and no or low interest loans for projects designed to reduce the number of vacant and abandoned properties, and to increase and preserve the local supply of decent, safe, sanitary, and affordable housing for low, moderate and middle income families.
Section 2. That for the purpose as stated in Section 1, the expenditure of $3,282,460 or so much thereof as may be necessary, is hereby authorized from the Department of Development, General Government Grant Fund, Fund 220, Grant No. 441103, as follows:
Department / OCA / OL1 / OL3 / Amount
44-01 / 441105 / 06 / 6603 / $126,595
44-10 / 441110 / 05 / 5528 / $1,945,000
44-10 / 441111 / 05 / 5528 / $1,210,865
Total $3,282,460
Section 3. That expenditure of funds from this authorization will be in accordance with U.S. Department of Housing and Urban Development Regulations for the Neighborhood Stabilization Program.
Section 4. 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 passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.