Explanation
BACKGROUND: The City of Columbus maintains a cash balance for program income received through activities related to the Neighborhood Stabilization Program 1 and Neighborhood Stabilization Program 3 (NSP 1 and NSP 3) grant programs. The City intends to close out both the NSP 1 and NSP 3 grants with the U.S. Department of Housing and Urban Development (HUD) and transfer the remaining program income balance to the Community Development Block Grant (CDBG) program to fund CDBG Administration costs including costs associated with the Department of Finance and Management, Grants Management Section staff expenses. This ordinance is needed to authorize the appropriation and transfer of NSP 1 and NSP 3 Program Income to the 2024 CDBG fund and authorize the appropriation of $674,894.40 from the 2024 CDBG fund for the administration of HUD’s Annual Allocation grant programs in 2026.
The Department of Finance and Management, Grants Management Section, is responsible for the administration of HUD’s Annual Allocation grant programs and for performing the required transactions in the Disaster Recovery Grant Reporting (DRGR) system and the Integrated Disbursement and Information System (IDIS) to properly account for the transfer of program income between the Neighborhood Stabilization Program funds and the Community Development Block Grant program income. The available CDBG program income funds will be available for immediate use in IDIS upon HUD approval. The Grants Management Section will report the transferred program income within the available resources in the 2024 Annual Action Plan’s “2024 Grants Management Admin - CDBG” activity for the City’s administration of HUD’s Annual Allocation grant programs in 2026.
FISCAL IMPACT: This ordinance authorizes the appropriation and transfer of existing cash assets from the NSP 1 ($543,636.93) and NSP 3 ($7,257.27) grants (Fund 2220) to the City’s 2024 CDBG program (Fund 2248) and authorizes the appropriation and expenditure of $674,894.40 of 2024 CDBG funds for the eligible costs associated with the administration of the City’s U.S. Department of Housing and Urban Development annual allocation grants. ($674,894.40)
.Title
To authorize the appropriation and transfer of $550,894.20 of cash assets from the Neighborhood Stabilization Program 1 and Neighborhood Stabilization Program 3 to the 2024 Community Development Block Grant fund; to direct that any future Neighborhood Stabilization Program (NSP) program income be deposited into a CDBG fund; to authorize the appropriation and expenditure of $674,894.40; and to declare and emergency. ($674,894.40)
Body
WHEREAS, the City of Columbus is a recipient of Neighborhood Stabilization Program 1 and 3 (NSP 1 and NSP 3) grant funds from the U.S. Department of Housing and Urban Development (HUD); and
WHEREAS, the City of Columbus is an entitlement community and a Participating Jurisdiction of the U.S. Department of Housing and Urban Development, and the City is a current recipient of Community Development Block Grant funds from HUD; and
WHEREAS, the City has generated program income through carrying out activities related to the NSP 1 and NSP 3 grant programs; and
WHEREAS, the City intends to close out both the NSP 1 and NSP 3 grants with HUD and transfer the remaining program income to the 2024 CDBG program and any future program income resulting form original NSP projects be deposited into the CDBG Program fund in accordance with HUD rules and regulations; and
WHEREAS, it is necessary to authorize the appropriation and transfer of cash assets in the amount of $550,894.20 from the NSP 1 and NSP 3 grants to the 2024 CDBG program fund; and
WHEREAS, it is necessary to authorize the appropriation and expenditure of cash assets in the amount of $674,894.40 from the 2024 CDBG Program fund for eligible costs associated with the administration of the City’s U.S. Department of Housing and Urban Development annual allocation grants for the year of 2026;
WHEREAS, an emergency exists in the daily operations of the Department of Finance and Management in that it is immediately necessary to authorize the City Auditor to transfer funds, and make additional appropriations to allow departments and divisions to operate without interruption through the end of 2025, 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 Department of Finance and Management, Division of Grants Management, is authorized to transfer $543,636.93 of program income from the Neighborhood Stabilization Program 1 (NSP 1) G440500 in the General Government Grants fund 2220 to the Community Development Block Grant (CDBG) fund 2248, based on federal requirements for grants based accounting and according to the account coding attached to this ordinance.
SECTION 2. That the Department of Finance and Management, Division of Grants Management, is authorized to transfer $7,257.27 of program income from the Neighborhood Stabilization Program 3 (NSP 3) G441103 in the General Government Grants fund 2220 to the Community Development Block Grant (CDBG) fund 2248, based on federal requirements for grants based accounting and according to the account coding attached to this ordinance.
SECTION 3. That the City Auditor is hereby authorized and directed to appropriate and transfer $550,894.20 from the General Government Grants Fund, fund 2220, to the Community Development Block Grant, fund 2248, as needed for compliance with Federal laws, rules, and regulations per the accounting codes attached to this ordinance.
SECTION 4. That any future Neighborhood Stabilization Program (NSP) program income be deposited into CDBG funds as CDBG program income.
SECTION 5. That the City Auditor is hereby authorized and directed to appropriate $674,894.40 from the Community Development Block Grant, fund 2248, as needed for compliance with Federal laws, rules, and regulations per the accounting codes attached to this ordinance for the year 2026.
SECTION 6. That the expenditure of $674,894.40 is authorized within the CDBG Fund 2248 per the accounting codes in the attachment to this ordinance.
SECTION 7. That the City Auditor is authorized to make any accounting changes to revise the funding source for all actions authorized in this ordinance.
SECTION 8. 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.