Explanation
BACKGROUND
This ordinance authorizes the Director of the Department of Development to enter into a grant agreement with Columbus-Franklin County Finance Authority for the new construction of Barthman Family Homes a 150-unit affordable apartment project in an amount up to $5,000,000.00. Columbus-Franklin County Finance Authority will enter into a grant agreement with the city for the bond funds as a pass-through entity to Barthman Family Homes LLC. Barthman Family Homes LLC is the ownership entity of the project and The NRP Group is the developer. Authorization is also requested for the reimbursement of expenditures prior to the issuance of the purchase order, beginning January 1, 2024. An amendment to the 2025 Capital Improvement Budget is also necessary to establish authority.
Barthman Family Homes presents a critical opportunity to ensure that as the South Side of Columbus continues to grow and attract new development, families are not left behind. This project will help preserve access to high-quality, safe, and affordable housing for those who need it most. Executed by The NRP Group (NRP), one of the nation’s leading housing developers, the proposed development aims to transform a long-troubled site into a vibrant, family-oriented community.
Barthman Family Homes will consist of 150 unit affordable apartment home project that ranges from one-bedroom to four-bedroom apartments units. These homes will serve individuals and families earning 60% of the Area Median Income. Residents will benefit from amenities such as a fitness center, business center, playground, leasing office, and package concierge along with convenient access to public transit on South High Street, connecting them to groceries, healthcare, schools, parks, and more.
As the City is aware, market-rate development has been steadily advancing down South High Street, including the planned luxury units at Steelton Village just down South High Street just south of the Barthman site. In light of this momentum, it is more important than ever to invest in affordable housing to protect long-term affordability for families who already call this neighborhood home.
NRP is proud to build homes that reflect dignity and quality, regardless of income. With this project NRP is committed to raising the standard for affordable housing in Columbus and recognize the urgency of the City’s affordable housing crisis. Barthman Family Homes is designed to respond to that urgency-creating density, revitalizing a problem property, and delivering homes for 150 families.
EMERGENCY DESIGNATION: Emergency action is requested to meet the project’s timeline and to ensure timely receipt of the grant agreement to allow the developer to close on their construction loan. Without emergency action, new affordable housing would be further delayed from a low-income community in urgent need of it.
FISCAL IMPACT: Funding for this project will not be available to the Department of Development until the bonds are sold related to the 2025 Capital Improvement Budget, and are available at a future date, therefore it is necessary to certify the required funds, in an amount up to $5,000,000.00 against the General Fund 1000, Income Tax Set Aside Subfund 100099. The fund will be reimbursed upon receipt of the bonds. There is sufficient authority for this project.
CONTRACT COMPLIANCE: the vendor number is 009436 and expires 01/06/2028.
Title
To authorize the Director of Development to enter into a grant agreement with Columbus-Franklin County Finance Authority in an amount up to $5,000,000.00 who will act as a passthrough entity with Barthman Family Homes LLC in support of the development of 150 units of new affordable apartment homes with the Barthman Family Homes project; to authorize the amendment to the 2025 Capital Improvement Budget; 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 in an amount up to $5,000,000.00 within the Affordable Housing Bond Fund; to authorize the reimbursement of expenditures incurred prior to the establishment of a purchase order January 1, 2024; and to declare an emergency. ($5,000,000.00)
Body
WHEREAS, the Director of the Department of Development seeks to enter into a grant agreement with Columbus-Franklin County Finance Authority which will act as a passthrough with Barthman Family Homes LLC., for the development of 150 apartments, to be called Barthman Family Homes, in an amount up to $5,000,000.00; and
WHEREAS, these apartments will income levels from 60% AMI; and
WHEREAS, Barthman Family Homes will offer a mix of one-bedroom to four-bedroom apartments; and
WHEREAS, the site is located in the South Side of Columbus, that area is experiencing growth, and attracting new developments; and
WHEREAS, it is necessary to certify the required funds, in the amount up to $5,000,000.00 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 $5,000,000.00 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 $5,000,000.00; 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 $5,000,000.00; and
WHEREAS, it is necessary to authorize reimbursement of expenses incurred prior to the execution of a purchase order, starting January 1, 2024; and
WHEREAS, it is necessary to authorize the amendment to the 2025 Capital Improvement Budget 1790-2025 in order to provide sufficient budget authority for this project; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to authorize the Director to enter into a grant agreement with the Columbus-Franklin County Finance Authority in order to maintain the project schedule and to meet deadlines for this project, all for the immediate preservation of the public health, peace, property, safety, and welfare; and; 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-Franklin County Finance Authority who in turn will act as a passthrough entity with Barthman Family Homes LLC in an amount up to $5,000,000.00; to allow for the reimbursement of expenses prior to the issuance of a purchase order, beginning January 1, 2024 for the Barthman Family Homes project.
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, 2026, the sum of $5,000,000.00 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 $5,000,000.00 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 the 2025 Capital Improvement Budget authorized by ordinance 1790-2025 be amended as follows to establish sufficient authority for this project:
Fund / Project / Project Name / C.I.B. / Change / C.I.B. as Amended
7779 / P782012-100000 Affordable Housing Funds (Voted Carryover (2024) / $5,180,000.00/ ($5,000,000.00)/ $180,000.00
7779 / P782050-100028 Barthman Family Homes (Voted Carryover 2024)/ $0 / $5,000,000.00/ $5,000,000.00
SECTION 5. That for the purpose as stated in Section 1, the expenditure of $5,000,000.00, or so much thereof as may be necessary, is hereby authorized in fund 7779 (Affordable Housing Bond fund), Project P782050-100028, Dept. 44-10 (Housing), in Object Class 06 (Capital Outlay) per the accounting codes in the attachment to this ordinance.
SECTION 6. 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 7. 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 $5,000,000.00 (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 8. 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 9. 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 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. 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 passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.