Explanation
BACKGROUND: This legislation authorizes and directs the City Auditor to transfer $200,000.00 from the Special Income Tax Fund to the Housing Preservation Fund and authorizes the Director of the Department of Development to increase the existing universal term contracts with various contractors that provide emergency home repair services to low and moderate-income households in Columbus. These contracts are awarded as universal term contracts through the Purchasing Citywide bid process. The legislation authorizes the expenditure of $200,000 from the Housing Preservation Fund that was established to preserve the local supply of decent, safe, sanitary and affordable housing for low-income families. These services are needed to protect the health and safety of the citizens of Columbus. Emergency repair services will include heating, plumbing, electrical and other emergency home repairs.
The Housing Preservation Fund represents the City's commitment to the preservation of housing units affordable to very-low, low and moderate-income individuals. Funds are used to meet the housing needs identified in the Consolidated Plan to correct substandard and deteriorating conditions of homes owned by low and moderate- income households. The fund provides eligible homeowners with assistance for home repairs critical to preserving the housing stock and enabling homeowners to remain in their homes.
Emergency action is necessary to avoid an interruption in the delivery of vital program services.
FISCAL IMPACT: The Development Department received $3,500,000.00 in the 2008 Capital Improvement Budget for Housing Preservation projects. Bonds have yet to be sold; therefore, a transfer of cash from the Special Income Tax Fund is necessary. This ordinance authorizes the transfer of $200,000.00 from the Special Income Tax Fund to the Housing Preservation Fund and authorizes its expenditure.
Title
To amend the 2008 C.I.B.; to authorize and direct the City Auditor to transfer $200,000.00 from the Special Income Tax Fund to the Housing Preservation Fund; to authorize the Director of the Department of Development to increase the existing universal term contracts with various contractors to continue the provision of emergency home repair services to low and moderate-income households in Columbus; to authorize the expenditure of $200,000 from the Housing Preservation Fund; and to declare an emergency. ($200,000)
Body
WHEREAS, the Department of Development, Housing Division desires to administer a Housing Preservation Fund; and
WHEREAS, these monies will be used to provide emergency repair services necessary to preserve the supply of decent, safe, sanitary and affordable housing; and
WHEREAS, in order to carry out this responsibility, it is necessary to contract heating, plumbing, electrical and other emergency home repair services; and
WHEREAS, a transfer of funds from the Special Income Tax Fund is necessary to fund this project; and
WHEREAS, the City will sell notes or bonds to fund this project and will reimburse the Special Income Tax Fund the amount transferred, and
WHEREAS, the aggregate principal amount which the City will issue to finance this phase of the project is presently expected not to exceed $200,000.00; 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 project described in this ordinance (the "Project"); and
WHEREAS, emergency action is necessary to avoid an interruption in the delivery of vital program services; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development, Housing Division, in that it is immediately necessary to transfer and expend said funds 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 the 2008 Capital Improvements Budget established within ordinance 0690-2008 be and hereby is amended as follows:
Fund / Project Number / Project / Current CIB Amount / Amendment Amount / CIB Amount
782 / 782001-100000 / Housing Preservation / $3,500,000.00 / $200,000.00 / $3,300,000.00
782 / 782002-100000 / Hsng Pres - Home Safe & Sound / $0 / $200,000.00 / $200,000.00
Section 2. That the sum of $200,000.00 be and is hereby appropriated from the unappropriated balance of the Special Income Tax Fund, Fund 430, 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 ending December 31, 2008 to the City Auditor, Department 22-01, Object Level One 10, OCA Code 902023, Object Level Three 5502.
Section 3. That the City Auditor is hereby authorized to transfer said funds to the Housing Preservation Fund, Fund 782, at such time as is deemed necessary by the City Auditor, and to expend said funds, or so much thereof as may be necessary.
Section 4. That the amount of $200,000.00 is hereby transferred and appropriated to the Development Department, Housing Division 44-10, Housing Preservation Fund, Fund 782, Project 782002, Object Level One 06, Object Level Three 6617, OCA Code 782002.
Section 5. That the Director of the Department of Development is hereby authorized to increase the existing universal term contracts with the vendors listed below, in accordance with Columbus City Code, to continue to provide emergency home repair services to correct substandard and deteriorating conditions of homes owned by low and moderate- income households.
ABC Gas |
UL005666 |
UL005796 |
UL005838 |
|
Absolute Air/Heating |
UL005673 |
UL005798 |
|
|
Absolute Air/Plumbing |
UL005672 |
UL005797 |
UL005840 |
UL005846 |
Holt Mechanical |
UL005668 |
UL005800 |
|
|
James, Kenneth |
UL005671 |
UL005799 |
UL005839 |
|
Ohio Mechanical |
UL005669 |
UL005801 |
|
|
Ready Wire |
UL005662 |
UL005802 |
|
|
Union Electrical |
UL005670 |
UL005803 |
|
|
Section 6. That for the purpose as stated in Section 5, the expenditure of $200,000 from the Housing Preservation Fund or so much thereof as may be necessary, is hereby authorized from the Department of Development, Division 44-10, Fund 782, Project No. 782002, Object Level One 06, Object Level Three 6617, OCA Code 782002.
Section 7. That upon obtaining other funds for the Housing Preservation Project, the City Auditor is hereby authorized and directed to repay the Special Income Tax Fund the amount transferred under Section 3, above, and said funds are hereby deemed appropriated for such purpose.
Section 8. 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 9. 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 $200,000.00 (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 10. That expenditures of special income tax funds from this authorization will be in accordance with U. S. Department of Housing and Urban Development Regulations 24 CFR 570.200-206, CDBG Eligibility, to ensure consistency of housing programs and income eligibility for all programs as administered by the Housing Division.
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 its approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.