Explanation
This legislation authorizes the Director of the Department of Development to enter into a not-for-profit service contract with the Tony R. Wells Foundation in an amount up to $321,000.00 to act as fiscal manager of the American Dream Downpayment Initiative (ADDI) program for one year with an option to extend an additional year.
The Housing Division uses non-federal funds for the purpose of down payment assistance for homebuyers not in the Homeownership Development program. This funding will increase accessibility of the program to applicants up to 120% AMI and is projected to reduce the time to compile and review a file as specific HUD related required documents will not be required for this source of funds.
The Tony R. Wells Foundation, a non-profit corporation, will act as a fiscal manager for the program. The agreement will allocate $300,000.00 for downpayment assistance for low, moderate and middle income homebuyers and $21,000.00 (at 7% of the funds distributed) for administrative costs for the Wells Foundation. The contract is awarded in accordance with the relevant provisions of City Code Chapter 329 relating to not-for-profit service contracts. The funds will all be provided to the Wells Foundation up front with ongoing reporting on disbursements.
The services included in this not-for-profit service contract cannot be provided by existing city employees because these services are beyond the City’s current staffing capacity to provide.
Emergency action is requested to prevent disruption of the ADDI program that provides down payment assistance for homebuyers.
FISCAL IMPACT: Funding is available in the Department of Development’s 2025 General Fund budget, but will require a transfer between divisions.
CONTRACT COMPLIANCE: the vendor number is 038668 and expires 06/22/2025.
Title
To authorize the Director of the Department of Development to enter into a not-for-profit service contract with the Tony R. Wells Foundation in an amount up to $321,000.00 to act as fiscal manager of the American Dream Downpayment Initiative (ADDI) program; to authorize the transfer and expenditure of up to $321,000.00 from the 2025 General Fund Budget; to advance funding per a predetermined schedule; and to declare an emergency. ($321,000.00)
Body
WHEREAS, the Housing Division uses non-federal funds for the purpose of down payment assistance for homebuyers not in the Homeownership Development program; and
WHEREAS, this funding will increase accessibility of the program to applicants up to 120% AMI and is projected to reduce the time to compile and review a file as specific HUD related required documents will not be required for this source of funds; and
WHEREAS, the Director of the Department of Development wishes to enter into a not-for-profit service contract with the Tony R. Wells Foundation in an amount up to $321,000.00 to act as fiscal manager of the ADDI program for one year with an option to extend an additional year; and
WHEREAS, the funding will be allocated $300,000.00 for downpayment assistance for low, moderate and middle income homebuyers and $21,000.00 for administrative costs for the Wells Foundation.
WHEREAS, this ordinance authorizes the transfer and expenditure of up to $321,000.00 from the 2025 General Fund Budget; and
WHEREAS, funding will be advanced to the agency on a predetermined schedule; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that this not-for-profit service contract should be authorized immediately to prevent disruption of the ADDI program to provide down payment assistance for homebuyers, for the immediate preservation of the public health, peace, property, and safety; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Development to enter into a not-for-profit service contract with the Tony R. Wells Foundation in an amount up to $321,000.00 to act as fiscal manager of the American Dream Downpayment Initiative (ADDI) program for one year with an option to extend an additional year and is authorized to advance funds per a schedule to be included in the agreement.
SECTION 2. That the transfer of $321,000.00 or so much thereof as may be needed, is hereby authorized within Fund 1000 (General Fund), from Dept-Div 44-06 (Planning Division), Object class 03 (Services) to Dept-Div 44-10 (Housing Division), Object Class 03 (Services) per the account codes in the attachment to this ordinance.
SECTION 3. That for the purpose as stated in Section 1, the expenditure of $321,000.00 or so much thereof as may be needed is hereby authorized in Fund 1000 (General Fund), Dept-Div 44-10 (Housing Division), in object class 03 (Services) per the accounting codes in the attachment to this ordinance.
SECTION 4. That this contract is awarded in accordance with the relevant provisions of City Code Chapter 329 relating to not-for-profit service contracts.
SECTION 5. 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 6. That the City Auditor is authorized to establish such accounting codes as necessary, to make any accounting changes to revise the funding source for all agreements, contracts, or modifications associated with this ordinance.
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.