Explanation
BACKGROUND: This ordinance authorizes the appropriation in an amount up to $420,147.73 the transfer between object classes in an amount up to $57,053.35 and expenditure in an amount up to $500,000.00 of grant funding from the U.S. Department of Housing and Urban Development (HUD), through the HOME Investment Partnerships Program grant (HOME) and authorizes the Director of Development to a commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant with Emerald Glen Homes Rehab, LLC for the Emerald Glen apartments project.
Emerald Glen is a 130-unit apartment complex for families on the far west side of Columbus encompassing 14.8 acres. Built in 1995 by Homeport and financed by Low Income Housing Tax Credits, the property is in need of a substantial rehabilitation. The property has not been substantially renovated since it was first built. Homeport proposes replacing interior finishes such as flooring, cabinets and countertops; replacement of lighting fixtures; replacement of plumbing fixtures and hot-water heaters; the addition of accessible units for disabled individuals and replacing the HVAC systems, which will improve units’ livability, energy efficiency, and residents’ comfort.
Emerald Glen offers a mix of housing types, including two- and three-bedroom flats and three- and four-bedroom townhomes. Although Emerald Glen feels secluded between Hall Road and the Camp Chase Bike Trail, it is located within three miles of many thousands of jobs clustered along the I-270 outer belt, between I-70 and Urbancrest, and it is within a mile of the Georgesville Square shopping center. As part of the renovation, the number of accessible units will be increased from two to fourteen, to meet OHFA’s requirement that the property provides double the minimum number of accessible units required by Section 504. There will be nine accessible two-bedroom flats, four three-bedroom lofts with an accessible first floor, and one four-bedroom townhouse with an accessible first floor. The three-and four-bedroom units meet OHFA’s Design and Architecture Standards for accessibility because these units are in addition to the minimum number of accessible units required by Section 504. Four additional units are designed for individuals with sensory-impairments, including horn-strobe notification tied to the unit’s doorbell and smoke-CO detector.
Homeport will place a new 30-year affordability covenant on the property, restricting units to households whose annual income is at or below 30%, 60% or 80% of Area Median Income. The property’s current affordability covenant is scheduled to expire in July 2025. This will preserve an important asset of affordable housing in Columbus.
This legislation represents appropriation for a part of the 2022 Annual Action plan per ordinance 2800-2021.
Contract Compliance: the vendor number is 052643 and expires on 05/21/2027
Fiscal Impact: $500,000.00 is available from and within the HOME grant.
Title
To authorize an appropriation in an amount up to $420,147.73; to authorize the transfer between object classes in an amount up to $57,053.35, and the expenditure of funds in an amount up to $500,000.00 of the 2022 HOME Investment Partnerships Program grant funds from the U.S. Department of Housing and Urban Development; and to authorize the Director of the Department of Development to enter into a commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant with Emerald Glen Homes Rehab LLC., in an amount up to $500,000.00 for the Emerald Glen apartments project. ($500,000.00)
Body
WHEREAS, the City of Columbus is a participating jurisdiction of the U.S. Department of Housing and Urban Development; and
WHEREAS, the Columbus City Council has approved the 2022 Action Plan per ordinance 2800-2021; and
WHEREAS, the appropriation in an amount up to $420,147.73 and expenditure in an amount up to $500,000.00 is necessary for this project; and
WHEREAS, the transfer of funding between object classes within the HOME grant in an amount up to $57,053.35 is necessary; and
WHEREAS, the Director of the Department desires to support the Emerald Glen project with HOME funds; 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 ending December 31, 2025, in an amount up to $420,147.73 is appropriated within Fund 2201 (HOME), from Dept-Div 44-10 (Housing), G442102 (HOME), object class 05 (Other Expenses) per the account codes in the attachment to this ordinance.
SECTION 2. That the transfer between object classes in an amount up to $57,053.35, or so much thereof as may be needed, is hereby authorized per the account codes in the attachment to this ordinance.
SECTION 3. That the expenditure in an amount up to $500,000.00, or so much thereof as may be needed, is hereby authorized in Fund 2201 (HOME), Dept-Div 4410 (Housing), object class 05 (Other Expenses) per the account codes in the attachment to this ordinance.
SECTION 4. That the Director of Development is hereby authorized to enter into a commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant with Emerald Glen Home Rehab LLC., for the Emerald Glen apartments project in an amount up to $500,000.00.
SECTION 5. 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 6. 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 7. 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 8. The commitment of funds through this legislation is conditioned on compliance with HUD’s environmental review requirements.
SECTION 9. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.