Explanation
BACKGROUND: This ordinance authorizes the appropriation in an amount up to $1,173,587.48 the transfer between object classes within fund 2201 and various HOME Grants in an amount up to $126,639.13 and expenditure in an amount up to $1,500,000.00 of grant funding from the U.S. Department of Housing and Urban Development (HUD), through the HOME Investment Partnerships Program grant (HOME) and the HOME Investment Partnerships Program American Rescue Plan (HOME-ARP) and authorizes the Director of Development to execute separate commitment letters, loan agreements, promissory notes, mortgages, and restrictive covenants with Nelson Park Preservation Association LLC for the Nelson Park Apartments project based on their funding sources.
Total City funding for the project utilizing grant funding is $1,875,000.00. Of this amount $1,500,000.00 is found within this ordinance and establishes HOME and HOME -ARP funding for the Nelson Park Apartments project. A subsequent ordinance will be put forth to City Council in an amount up to $375,000.00 for the remaining HOME-ARP funding of this project to provide supportive services for residents at this location over the course of four years. There will be an additional ordinance for the bond eligible portion of this project in an amount up to $4,800,000.00.
Nelson Park Apartments involves the acquisition and rehabilitation of an existing 177-unit affordable housing development in the Eastgate neighborhood on the near east side of the City of Columbus. The property was originally constructed in 1958 and has been identified by the Ohio Historic Preservation Office and the National Park Service (NPS) as a historically significant asset as it was one of the first housing developments in the United States that was developed using financial assistance from the Section 221 program and has been listed on the National Historic Register. The property has not received a substantial rehabilitation since 1980 when it was brought into HUD’s Section 8 sub-rehab program. The project currently includes 47 residential buildings with one, two, and three-bedroom townhomes serving both families and seniors which are covered 100% by a HUD Section 8 Housing Assistance Payment contract. Preservation of this community is critically important as rents and home values continue to increase all the while affordability continues to decline.
The current owner of Nelson Park Apartments, The Orlean Company, along with its development partners Renewal Housing Associates, and the Columbus Metropolitan Housing Authority have prepared a comprehensive, multifaceted redevelopment plan not only to ensure the long-term viability and affordability of Nelson Park Apartments, but also to ensure that the housing provided on this site better serves the residents and the surrounding community.
Due to existing restrictions on the property Nelson Park has limited financial resources to address the current issues in a meaningful and lasting way making the redevelopment plan necessary and urgent. This location has faced challenges due to its size, building obsolescence, and residential mix that it has been a challenge to manage, operate, and maintain effectively. This does not also speak to the numerous instances of violence and crime at this location. Therefore, as part of the redevelopment plan the overall footprint and population of the property will be reduced from 47 residential buildings to 42 residential buildings and the units will decrease from 177 to 140 units. Post-rehab there will be 14 elderly buildings with four (4) 1-BR units in each and 28 family buildings with two (2) 2-BR units and one (1) 3-BR units in each.
The condensing of the property will allow the property to be more easily managed, maintained, and allow the residents to access a new community building, management office, and other amenities that will be provided. New lighting and enhanced security systems, along with a reduction in the number of curb cuts and ingress/egress points on the property will further improve the safety and security of the residents and surrounding area. This property currently serves many extremely low-income households that include families and seniors but as part of the redevelopment plan the property will also serve homeless and formerly homeless individuals referred by the Community Shelter Board (CSB). This property will provide services to residents that seek to improve their health and wellness, education, and workforce outcomes. The property will continue to benefit from a Central Ohio Transit Authority (COTA) bus stop as well as Nelson Park which is a City of Columbus Recreation and Parks Department facility. All existing residents at the property will remain at the property and during the rehab, temporary relocation services will occur and be provided for to minimize the disruption of the lives of the residents.
This legislation represents appropriation for a part of the HOME-ARP Allocation Plan portion of the City’s 2021 HUD Annual Action Plan which was amended, per Ordinance 0459-2023 as well as the 2019 Annual Action Plan per ordinance 2776-2018, the 2020 Annual Action Plan per ordinance 2162-2019, the 2021 Annual Action Plan per ordinance 2345-2020, and the 2022 Annual Action plan per ordinance 2800-2021.
Contract Compliance: the vendor number is 051189 and expires on 12/09/2026
Emergency Designation: An emergency exists as there are time restrictions and deadlines for this project that are set forth by HUD and therefore require this ordinance to be that of an emergency nature.
Fiscal Impact: $1,500,000.00 is available from and within the HOME and the HOME-ARP grants.
Title
This ordinance authorizes the appropriation in an amount up to $1,173,587.48, the transfer between object classes in an amount up to $126,639.13, and the expenditure of funds in an amount up to $1,500,000.00 of the 2019, 2020, 2021, and 2022 HOME Investment Partnerships Program, and the HOME Investment Partnerships ARP Program (HOME-ARP) funds from the U.S. Department of Housing and Urban Development; authorizes the Director of the Department of Development to enter into separate commitment letters, loan agreements, promissory notes, mortgages, and restrictive covenants with Nelson Park Preservation Association LLC, in an amount up to $1,500,000.00 for the Nelson Park Apartments project based on their funding sources; and to authorize an emergency. ($1,500,000.00)
Body
WHEREAS, the City of Columbus is a participating jurisdiction of the U.S. Department of Housing and Urban Development; and
WHEREAS, the City of Columbus is the recipient of a one-time grant of $16,433,138.00 from the U.S. Department of Housing Urban Development (HUD) through the American Rescue Plan Act and the HOME Investment Partnerships Program (HOME-ARP); and
WHEREAS, the Columbus City Council has approved the amendment to the 2021 Action Plan, per Ordinance 0459-2023, as required by HUD for the authorization of the HOME-ARP Allocation Plan, the 2019 Action Plan per ordinance 2776-2018, the 2020 Action Plan per ordinance 2162-2019, the 2021 Action Plan per ordinance 2345-2020, and the 2022 Action Plan per ordinance 2800-2021; and
WHEREAS, the appropriation in an amount up to $1,173,587.48 and expenditure in an amount up to $1,500,000.00 is necessary for this project; and
WHEREAS, the transfer of funding between object classes within fund 2201 and the various HOME grants in an amount up to $126,639.13 is necessary; and
WHEREAS, the Director of the Department desires to support the Nelson Park Apartments project with HOME and HOME-ARP funds; and
WHEREAS, an emergency exists due to the time restrictions and deadlines set forth by HUD regarding this property an emergency exists in the usual daily operations of the Department of Development to obtain approval from the City and begin construction to avoid any undue hardships and any potential issues that would arise for the developer if the City delays the approval in the financing of this project. This will also assure the timeliness of the rehabilitation and will further maintain the overall costs of the development and will assure that the residents will not be impacted due to delays in the rehab, 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 from the unappropriated monies and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the fiscal year ending December 31, 2025, in an amount up to $1,000,000.00 is appropriated within Fund 2201 (HOME-ARP), from Dept-Div 44-10 (Housing), G442101 (HOME-ARP), object class 05 (Other Expenses) per the account codes in the attachment to this ordinance.
SECTION 2. That the expenditure in an amount up to $1,000,000.00, or so much thereof as may be needed, is hereby authorized in Fund 2201 (HOME-ARP), Dept-Div 4410 (Housing), G442101 (HOME-ARP), object class 05 (Other Expenses) per the account codes in the attachment to this ordinance.
SECTION 3. That from the unappropriated monies and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the fiscal year ending December 31, 2025, in an amount up to $173,587.48 is appropriated within Fund 2201, from Dept-Div 44-10 (Housing), object class 05 (Other Expenses) per the account codes in the attachment to this ordinance.
SECTION 4. That the transfer between object classes in an amount up to $126,639.13, or so much thereof as may be needed, is hereby authorized per the account codes in the attachment to this ordinance.
SECTION 5. That the expenditure in an amount up to $500,000.00, or so much thereof as may be needed, is hereby authorized in Fund 2201 (HOME), Dept-Div 4410 (Housing), object class 05 (Other Expenses) per the account codes in the attachment to this ordinance.
SECTION 6. That the Director of Development is hereby authorized to enter into separate commitment letters, loan agreements, promissory notes, mortgages, and restrictive covenants with Nelson Park Preservation Association LLC., based on their funding sources for the Nelson Park Apartments project in an amount up to $1,500,000.00.
SECTION 7. 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 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. At the end of the grant period, any repayment of unencumbered balances required by the grantor is hereby authorized and any unused City match monies may be transferred back to the City fund from which they originated in accordance with all applicable grant agreements.
SECTION 10. The commitment of funds through this legislation is conditioned on compliance with HUD’s environmental review requirements.
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 its approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.