Explanation
BACKGROUND: This ordinance authorizes the Director of Development to enter into grant agreements with recipients of the Department of Development, Division of Housing’s Critical Home Repair Program and to make payments directly to the contractor who performed the work. The Department desires to encumber $1,000,000.00 of bond funds for this program and will enter into multiple agreements under the authority of this ordinance.
The Critical Home Repair Program is open to households up to 80% AMI with the exception of participants in the Better Municipal Care for Veterans Program which may go up to 120% AMI. Households apply and if the application is approved, then City staff write the specifications for the project and publicly advertise through Bid Express. The homeowner makes a selection from the bids received that are within 15% of the estimate prepared by the City. The City then enters into a grant agreement with the homeowner, the homeowner signs the contract with the contractor, but the City pays the contractor directly.
Critical Home Repair projects include things like roofs, windows (as necessary for security purposes) and doors, and mechanical repairs for emergency situations (i.e., faulty/dangerous electric, no heat, clogged sewer mains). As the program has evolved, the department has learned that some critical home repair projects are more involved than originally expected, resulting in additional costs unanticipated by the homeowner, City, and the contractor. As such, the Director is also seeking authority to modify Critical Home Repair contracts as issues are discovered, up to the amount of funds remaining on the ACPO. This will allow the department to immediately authorize the additional work needed without stopping work to seek Council approval for a contract modification.
This is a long standing program provided by the Division of Housing and approval will be requested, as needed, to continue funding the program.
Emergency action is requested to provide needed funding to prevent disruption in the Critical Home Repair Program and to continue performing critical repairs for residents most in need.
Fiscal Impact: $1,000,000.00 is available in the 2023 Capital Improvement Budget, Taxable bond fund. An amendment to the 2023 Capital Budget is required to establish sufficient budget authority for the project.
Title
To amend the 2023 Capital Improvement Budget; to authorize the City Auditor to transfer funds within the Taxable Bond Fund; to authorize the expenditure of $1,000,000.00 from the Taxable Bond Fund; to authorize the Director of Development to enter into multiple grant agreements with recipients of the Department of Development, Division of Housing’s Critical Home Repair Program and to make payments directly to the contractor who performed the work; to modify grant agreements funded from this ordinance as necessary to complete the project; and to declare an emergency. ($1,000,000.00)
Body
WHEREAS, the Director of the Department of Development desires to encumber $1,000,000.00 of bond funds for the Division of Housing’s Critical Home Repair Program; and
WHEREAS, under the Critical Home Repair Program, the City enters into a grant agreement with the homeowner, the homeowner signs the contract with the contractor, but the City pays the contractor directly; and
WHEREAS, Critical Home Repair projects include things like roofs, windows (as necessary for security purposes) and doors, and mechanical repairs for emergency situations (i.e., faulty/dangerous electric, no heat, clogged sewer mains); and
WHEREAS, the Director is also seeking authority to modify Critical Home Repair grant agreements as issues are discovered, up to the amount remaining on the ACPO. This will allow the Department to immediately authorize the additional work needed without stopping work to seek Council approval for a grant agreement modification; and
WHEREAS, funds are currently available in the Development Taxable Bonds Fund; and
WHEREAS, it is necessary to amend the 2023 Capital Improvement Budget to establish authority within the correct project; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to prevent disruption in the Critical Home Repair Program for eligible residence repairs for items such as roofs, windows (as necessary for security purposes) and doors, and mechanical repairs for emergency situations (i.e., faulty/dangerous electric, no heat, clogged sewer mains), thereby preserving the public health, peace, property, and safety; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the 2023 Capital Improvements Budget authorized by ordinance 1711-2023 be amended as follows to establish sufficient authority for this project:
Fund / Project / Project Name / C.I.B. / Change / C.I.B. as Amended
7739 / P782001-100000 / Housing Preservation / $1,735,014.00 / ($1,000,000.00) / $735,014.00
7739 / P782023-100000 / Critical Home Repair / $132,125.00 / $1,000,000.00 / $1,132,125.00
SECTION 2. That the transfer of $1,000,000.00 or so much thereof as may be needed, is hereby authorized within Fund 7739 (Development - Taxable), from Dept-Div 44-10 (Housing) to Dept-Div 44-10 (Housing) per the account codes in the attachment to this ordinance.
SECTION 3. That for the purpose as stated in Section 4, the expenditure of $1,000,000.00, or so much thereof as may be necessary, is hereby authorized in Fund 7739 (Housing Preservation), Project 782023-100000, Dept. 44-10 (Housing), in Object Class 06 (Capital Outlay) per the accounting codes in the attachment to this ordinance.
SECTION 4. That the Director of the Department of Development be and is hereby authorized to enter into multiple grant agreements with recipients of the Department of Development, Division of Housing’s Critical Home Repair Program, to make payments directly to the contractor who performed the work, and to modify grant agreements and purchase orders with the contractor, funded from this ordinance as necessary to complete the project, up to the amount remaining on this ACPO.
SECTION 5. That the City Auditor is hereby authorized to transfer the unencumbered balance in a project account to the unallocated balance account within the same fund upon receipt of certification by the Director of the Department administering said project that the project has been completed and the monies are no longer required for said project.
SECTION 6. That 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 7. 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 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 approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.