Explanation
BACKGROUND: This ordinance authorizes the appropriation and expenditure of up to $30,350.00 of the 2020 HOME Investment Partnerships Program (HOME) entitlement grant from the U.S. Department of Housing and Urban Development and authorizes the Director of the Department of Development to enter into a HOME commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant and a bond funded agreement with Healthy Rental Homes IV, LLC (HRH) for the rehabilitation of 12 units of substandard, rental housing units in zip codes 43205 and 43206.
HRH is an affordable housing developer focused on increasing the stock of high-quality housing options available to families earning no more than 80% of Area Median Income (AMI) on Columbus’ South Side. HRH seeks to further its mission of addressing the housing affordability issues that Columbus faces by rehabbing 12 units of substandard, rental housing in zip codes 43205 and 43206. This portfolio consists of 6 duplexes (12 units) all of which are currently vacant and sources of blight in the community. Several of these properties have been acquired from the City and County Land Banks as a result of our long-standing partnership with these entities. To date, HRH has completed the rehabilitation of 33 affordable rental units and six additional units are currently in construction.
HRH is seeking a total of $273,950.00 in funding from the City for these 12 units: $149,950.00 in HOME Funds and $124,000.00 in bond funds to support the substantial rehabilitation of these 12 units. HRH has engaged a General Contractor who will ensure that all aspects of these rehabs are completed in accordance with local building codes and the City of Columbus’ AWARE Manual. While the individual scopes of work do vary from property to property, each unit will generally receive the following treatment: new roofing, siding, windows and entry doors; all new mechanicals, including plumbing, complete electrical systems and high efficiency HVAC equipment. Each property will also be thoroughly insulated and all of the interior surfaces will either be replaced or reconditioned. More specifically, the existing kitchens and bathrooms will be fully gutted and rebuilt and new appliances will be provided as well. Lastly, front and rear porches will be constructed and/or repaired, off-street parking pads and walkways will be poured, and new landscaping will be installed. The total project budget is $1,849,756.00 and, upon completion, these properties will blend with the existing fabric of the community.
Because of the different funding sources, the Director shall execute two separate agreements for this project: one agreement funded by bond funds in an amount up to $124,000.00 and one set of agreements funded by HOME funds in an amount up to $149,950.00.
This legislation represents appropriation for the HOME portion of the 2020 Action Plan, per Ordinance 2162-2019.
Emergency action is requested to allow for the developer to maintain the project schedule.
Contract Compliance: the vendor number is 033451 and expires 11/30/22.
Fiscal Impact: $124,000.00 in bond funds is available on ACPO004519 line 20 (ordinance 1723-2019); $119,600.00 in HOME funds is available from the 2018 HOME grant (G451801) on ACPO005097 (ordinance 2014-2018); and $30,350.00 is available in the 2020 HOME grant (G451903) to be appropriated for this project.
Title
To authorize the appropriation and expenditure of up to $30,350.00 of 2020 HOME Investment Partnerships Program (HOME) grant from the U.S. Department of Housing and Urban Development; to authorize the Director of Development to enter into a HOME commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant in an amount up to $149,950.00 and a bond funded agreement in an amount up to $124,000.00 with Healthy Rental Homes IV, LLC for the rehabilitation of 12 units of substandard, rental housing units in zip codes 43205 and 43206; and to declare an emergency. ($30,350.00)
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 2020 Action Plan, per Ordinance 2162-2019, as required by HUD; and
WHEREAS, it is necessary to appropriate and expend funds from the 2020 HOME grant for eligible expenses related to the rehabilitation of 12 units of substandard, rental units in zip codes 43205 and 43206; and
WHEREAS, the Director shall execute two separate agreements for this project: one agreement funded by bond funds in an amount up to $124,000.00 and one set of agreements funded by HOME funds in an amount up to $149,950.00; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to authorize the appropriation and expenditure of said funds to allow for the developer to maintain the project schedule, 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, 2020, the sum of $30,350.00 is appropriated in Fund 2201 (HOME), from Dept-Div 44-10 (Housing), G451903 (2020 HOME), object class 05 (Other Expenses) per the account codes in the attachment to this ordinance.
SECTION 2. That the expenditure of $30,350.00 or so much thereof as may be needed, is hereby authorized in Fund 2201 (HOME), Dept-Div 4410 (Housing), G451903 (2020 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 enter into a HOME commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant in an amount up to $149,950.00 and a bond funded agreement in an amount up to $124,000.00 with Healthy Rental Homes IV, LLC for the rehabilitation of 12 unites of substandard, rental units in zip codes 43205 and 43206.
SECTION 4. 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. 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 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.