Explanation
BACKGROUND: The Department of Finance and Management, Grants Management Section has received funds from the U.S. Department of Housing and Urban Development (HUD) through the Community Development Block Grant (CDBG) Entitlement Program. It is the goal of the CDBG program to develop viable urban communities by providing decent housing and a suitable living environment and expanding economic opportunities, principally for low- to moderate-income people.
The City solicited CDBG-eligible project proposals for the 2023 program year. Columbus Next Generation Corporation submitted a proposal for CDBG funding for 2023 to support a transitional housing rehabilitation project at 2918 E. 5th Avenue, Columbus, OH 43219 (Project) with local non-profit, Ours Brothers Keepers, LLC. The City entered into a Subrecipient Agreement with Columbus Next Generation Corporation, serving as Project Manager and Fiscal Administrator for the Project, pursuant to Ordinance Number 3360-2022. The Project is eligible for CDBG funding due to the outcome of transitional housing rehabilitated, qualifying under the HUD Low- to Moderate-Income Housing National Objective.
Project delays have required the City to modify the original Subrecipient Agreement twice to extend the agreement term. The original Subrecipient Agreement, as authorized by Ordinance 3360-2022 and modified by Ordinance 1501-2024 and 0803-2025, expired on July 31, 2025.
The City is still committed to accomplishing the Project for the outcome of providing transitional housing and space for administering services to at-risk youth. The City would like to enter into a new Subrecipient Agreement with Columbus Next Generation Corporation to ensure that the Project complies with a required HUD National Objective. There is $88,617.16 remaining on PO421338. This PO will be closed and the remaining balance of $88,617.16 will be put onto a new PO in connection with the new Subrecipient Agreement.
FISCAL IMPACT: This ordinance authorizes the appropriation and expenditure of up to $88,617.16 from funding awarded to the City by HUD from Fund 2248. There is no impact to the General Fund as a result of this legislation.
EMERGENCY DESIGNATION: An emergency exists in the usual daily operation of the Department of Finance and Management in that it is immediately necessary to authorize the Director of the Department of Finance and Management to enter into a new Subrecipient Agreement with Columbus Next Generation Corporation, in order for the project to comply with HUD’s requirement to meet a National Objective as there has been a lapse of the original agreement which expired July 31, 2025, and to keep the lapse period as short as possible to ensure compliance with HUD regulations, all for the immediate preservation of the public health, peace, property, safety and welfare.
Title
To authorize the Director of the Department of Finance and Management to enter into a Subrecipient Agreement with Columbus Next Generation Corporation in the amount of $88,617.16; to authorize the appropriation and the expenditure of $88,617.16; and to declare an emergency. ($88,617.16)
Body
WHEREAS, the City of Columbus is an entitlement community and a Participating Jurisdiction of the U.S. Department of Housing and Urban Development (HUD), and the City is a current recipient of Community Development Block Grant (CDBG) funds from HUD; and
WHEREAS, Ordinance Number 3360-2022 authorized the Director of Finance and Management to appropriate and expend $420,000.00 in CDBG funds and enter into a Subrecipient Agreement with Columbus Next Generation Corporation; and
WHEREAS, Ordinance Number 1501-2024 authorized the Director of Finance and Management to modify the Subrecipient Agreement to extend the period of performance through March 31, 2025, due to unforeseen project delays; and
WHEREAS, Ordinance Number 0803-2025 authorized the Director of Finance and Management to modify the Subrecipient Agreement to extend the period of performance through July 31, 2025, due to unforeseen project delays; and
WHEREAS, this Ordinance is necessary to authorize the Director of Finance and Management to enter into a new Subrecipient Agreement with Columbus Next Generation Corporation; and
WHEREAS, this Ordinance is necessary to appropriate and authorize the expenditure of up to $88,617.16 from Fund 2248; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Finance and Management in that it is immediately necessary to authorize the Director to enter into a new Subrecipient Agreement with Columbus Next Generation Corporation, in order for the project to comply with HUD’s requirement to meet a National Objective as there has been a lapse of the original agreement which expired July 31, 2025, and to keep the lapse period as short as possible to ensure compliance with HUD regulations, all for the immediate preservation of 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 the Director of the Department of Finance and Management is hereby authorized to enter into a Subrecipient Agreement with Columbus Next Generation Corporation, in an amount up to $88,617.16.
SECTION 2. That for the purpose stated in Section 1, the expenditure of up to $88,617.16 is hereby authorized in Fund 2248, per the accounting codes in the attachment to this ordinance.
SECTION 3. That from the unappropriated monies in Fund 2248 (CDBG) and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the grant period, the sum of $88,617.16 is appropriated in Fund 2248 (CDBG), Dept-Div 45-01, Object Class 03 (Contracts).
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 the City Auditor is authorized to make any accounting changes to revise the funding source for all modifications associated with this ordinance.
SECTION 6. That Council authorizes the reimbursement of expenses incurred prior to the issuance of a Purchase Order from and including August 1, 2025, for construction and administrative reimbursement requests from Columbus Next Generation Corporation.
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 passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.