Explanation
BACKGROUND
This ordinance authorizes the Director of the Department of Development to enter into a grant agreement with Columbus Housing Partnership, Inc. (dba Homeport) for development of 60 apartments in an amount up to $400,000.00. Columbus Housing Partnership, Inc. will enter into a grant agreement with the city for the bond funds as a pass-through entity. Hamilton Place Homes, LLC is the ownership entity of the project and Hamilton Place Housing, Inc, the managing member of Hamilton Place Homes, LLC, is wholly owned by Columbus Housing Partnership, Inc. Approval is also requested for reimbursement of construction expenses incurred prior to execution of the purchase order, starting January 1, 2023.
The Northam is a proposed 60-unit apartment development for families located at 5430 North Hamilton Road in Columbus. The site is located along a major retail corridor that is experiencing significant growth, with several retailers located within the immediate neighborhood.
The property will consist of a four-story interior elevator apartment building with flat unit designs. The Northam will offer a mix of 25 one-bedroom, 28 two-bedroom, and 7 three-bedroom apartments. Community space includes a community room with kitchenette, fitness room and management office. The Northam will serve a mix of income levels from 30% AMI to 70% AMI.
Financing will be secured from public and private sources fulfilling the estimated development cost of $21.1 million.
Homeport, whose subsidiary will serve as Managing Member of the project, will provide supportive services coordination for project residents. Typically, Homeport is able to assist residents on an as-needed basis with referrals to a wide range of community services, such as financial and material assistance, educational and employment assistance, medical care, etc.
FISCAL IMPACT: Funding for this project will not be available to the Department of Development until the bonds are sold related to the 2024 Capital Improvement Budget and are available at a future date, therefore it is necessary to certify the required funds, in the amount up to $400,000.00, against the General Fund 1000, Income Tax Set Aside Subfund 100099. The fund will be reimbursed upon receipt of the bonds. There is sufficient budgetary authority for this project.
CONTRACT COMPLIANCE: the vendor number is 008972 and expires 05/17/2026.
Title
To authorize the Director of Development to enter into a grant agreement with Columbus Housing Partnership, Inc. in an amount up to $400,000.00 in support of the development of 60 units of new apartments; to authorize the appropriation of funds within the Income Set Aside Subfund and the Affordable Housing Bond Fund; to authorize the transfer of cash between the Income Tax Set Aside Subfund and the Affordable Housing Bond Fund; to authorize the expenditure of up to $400,000.00 within the Affordable Housing Bond Fund; and to authorize the reimbursement of expenditures incurred prior to the establishment of a purchase order. ($400,000.00)
Body
WHEREAS, the Director of the Department of Development seeks to enter into a grant agreement with Columbus Housing Partnership, Inc. (dba Homeport) for development of 60 apartments, to be called The Northam, in an amount up to $400,000.00; and
WHEREAS, these apartments will serve a mix of income levels from 30% AMI to 70% AMI; and
WHEREAS, The Northam will offer a mix of 25 one-bedroom, 28 two-bedroom, and 7 three-bedroom apartments; and
WHEREAS, the site is located along the major retail corridor of North Hamilton Road, that is experiencing significant growth, with several retailers located within the immediate neighborhood; and
WHEREAS, it is necessary to certify the required funds, in the amount up to $400,000.00 dollars against the General Fund 1000, Income Tax Set Aside Subfund 100099 and authorize the appropriation and transfer of the funds in the amount up to $400,000.00 from the Income Tax Set Aside Subfund to the Affordable Housing Bond Fund and authorize the appropriation within the Affordable Housing Bond Fund.
WHEREAS, it is necessary to authorize the expenditure within the Affordable Housing Bond Fund in an amount up to $400,000.00; 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 construction of the project described in this ordinance (the "Project"); and
WHEREAS, the City will reimburse the General Fund 1000, Income Tax Set Aside Subfund 100099; and
WHEREAS, this transfer should be considered as a temporary funding method; and
WHEREAS, the aggregated principal amount of obligations which the City will issue to finance this project is presently expected not to exceed $400,000.00; and
WHEREAS, it is necessary to authorize reimbursement of expenses incurred prior to the execution of a purchase order, starting January 1, 2023; and
WHEREAS, in the usual daily operation of the Department of Development it is necessary to authorize the Director enter into a grant agreement with Columbus Housing Partnership, Inc. all for the 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 Director of the Department of Development be and is hereby authorized to enter into a grant agreement with Columbus Housing Partnership, Inc. (dba Homeport) in an amount up to $400,000.00 and to allow for the reimbursement of expenses incurred prior to the establishment of a purchase order, beginning January 1, 2023.
SECTION 2. That from the unappropriated monies and from all monies estimated to come into said funds from any and all sources and unappropriated for any other purpose during the fiscal year ending December 31, 2025, the sum of $400,000.00 is appropriated within General Fund 1000, Income Tax Set Aside Subfund 100099, in Object Class 10 Transfer Out Operating, and into the Affordable Housing Bond fund No. 7779, in Object Class 06 Capital Outlay per the account codes in the attachment to this ordinance.
SECTION 3. That the transfer of $400,000.00 or so much thereof as may be needed, is hereby authorized between the General Fund 1000, Income Tax Set Aside Subfund 100099, and the Affordable Housing Bond fund No. 7779, per the account codes in the attachment to this ordinance.
SECTION 4. That for the purpose as stated in Section 1, the expenditure of $400,000.00, or so much thereof as may be necessary, is hereby authorized in fund 7779 (Affordable Housing Bond fund), Project P782050-100013, Dept. 44-10 (Housing), in Object Class 06 (Capital Outlay) per the accounting codes in the attachment to this ordinance.
SECTION 5. That upon obtaining other funds, the City Auditor is hereby authorized and directed to repay the General Fund 1000, Income Tax Set Aside Subfund 100099 the amount transferred under Section 3.
SECTION 6. 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 $400,000.00 (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 7. 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 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 this contract is awarded pursuant to the relevant provisions of Chapter 329 of City Code relating to the process for awarding grant agreements.
SECTION 10. 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 11. This ordinance shall take effect and be in force from and after the earliest date permitted by law.