Explanation
BACKGROUND
This ordinance authorizes the Director of the Department of Development to enter into a grant agreement with Healthy Linden Homes V LLC for development of a 23-unit affordable housing development in an amount up to $5,000,000.00. This agreement will also permit expenses incurred prior to the creation of the purchase order, starting January 1, 2024, for construction costs.
Healthy Homes is a non-profit affordable housing developer, affiliated with Community Development for All People and Nationwide Children’s Hospital. It is focused on increasing the stock of high-quality housing options available to families earning no more than 80% of Area Median Income (AMI) in Linden. Healthy Linden Homes V LLC seeks to further address Columbus’s housing affordability issues by developing 23 units of new construction rental housing in zip code 43211. These properties will consist of infill development, designed to replace residential structures that have been demolished.
The 23 rental units for which funding is sought will consist of 11 single family homes and 6 duplexes. Eleven of these properties will be built by Unibilt Industries-a modular home builder located in Dayton, Ohio. The modular units will be delivered approximately 75% complete and set on full foundations. Healthy Homes, the developer, has engaged General Contractors who will complete all site preparations, construct the foundations and manage the balance of work post-delivery. Once delivered, the units will require mechanical connections for electric, plumbing and HVAC. Porches will be constructed on site, and there will be some minor interior finishes to finalize. Lastly, the General Contractor will pour concrete parking pads and walkways, and each site will be fully landscaped with sod and a shade tree. The units that are not modular are traditional stick construction. Upon completion, these projects will blend with the existing fabric of the community, and there will be no visible evidence to suggest that they are modular in nature.
In addition to high-quality, affordable places to call home, the tenant families who will reside in these units will have access to a variety of supportive services and advocacy opportunities. Healthy Homes links residents to health/social service providers and Nationwide Children’s Healthy Neighborhoods Healthy Families (HNHF) programming. More specifically, tenants will have improved access to health, educational, workforce, and life skills development opportunities. Financial literacy, parenting classes, and mental health services will also be emphasized. Service engagement will not be required for Healthy Homes’ families, but it will be available to all households as needed.
Ordinance 3082-2024, passed on November 25, 2024, allowed for the establishment of a Housing Development Agreement to utilize Affordable Housing bond funds from the City’s Capital Budget in the amount of $5,000,000.00 for the project.
Emergency action is requested in order to maintain the project schedule and to meet deadlines for this project. Without emergency action, new affordable housing would be further delayed from a low-income community in urgent need of it.
FISCAL IMPACT: Funding in the amount of $5,000,000.00 is available in 2025 Capital Improvement Budget, Affordable Housing Bond fund. An amendment to the 2025 Capital Budget is required to establish sufficient budget authority for the project.
CONTRACT COMPLIANCE: the vendor number is 050785 and expires 10/30/2026.
Title
To amend the 2025 Capital Improvement Budget; to authorize the City Auditor to transfer funds within the Affordable Housing Bond Fund; to authorize the Director of Development to enter into a grant agreement with Healthy Linden Homes V LLC for development of a 23-unit affordable housing development in an amount up to $5,000,000.00; to authorize the expenditure of up to $5,000,000.00 from the Affordable Housing Bond Fund; to authorize expenses incurred prior to the creation of the purchase order; and to declare an emergency. ($5,000,000.00)
Body
WHEREAS, the Director of Development seeks to enter into a grant agreement with Healthy Linden Homes V LLC for development of a 23-unit affordable housing development in an amount up to $5,000,000.00; and
WHEREAS, Healthy Linden Homes V LLC is a non-profit affordable housing developer, affiliated with Community Development for All People and Nationwide Children’s Hospital, focused on increasing the stock of high-quality housing options available to families earning no more than 80% of Area Median Income (AMI) in Linden; and
WHEREAS, the 23 rental units for which funding is sought will consist of 11 single family homes and 6 duplexes. Eleven of these properties will be built by Unibilt Industries-a modular home builder located in Dayton, Ohio; and
WHEREAS, the remaining units will not be modular, but are traditional stick construction and these projects will blend with the existing fabric of the community; and
WHEREAS, the families who will reside in these units will have access to a variety of supportive services and advocacy opportunities including improved access to health, educational, workforce, and life skills development opportunities, financial literacy, parenting classes, and mental health services; and
WHEREAS, ordinance 3082-2024, passed on November 25, 2024, allowed for the establishment of a Housing Development Agreement to utilize Affordable Housing bond funds from the City’s Capital Budget in the amount of $5,000,000.00 for the project; and
WHEREAS, an amendment to the 2025 Capital Improvement Budget is needed to establish sufficient authority for this project; and
WHEREAS, to authorize the transfer and expenditure within the Affordable Housing Bond Fund in an amount up to $5,000,000.00; and
WHEREAS, to authorize expenses incurred prior to the creation of the purchase order, starting January 1, 2024; 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 Healthy Linden Homes V LLC in order to maintain the project schedule and meet deadlines for this project and without emergency action, new affordable housing would be further delayed from a low-income community in urgent need of it, all for the immediate 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 Healthy Linden Homes V LLC for development of a 23-unit affordable housing development in an amount up to $5,000,000.00 and to authorize expenses incurred prior to the creation of the purchase order, starting January 1, 2024.
SECTION 2. That the 2025 Capital Improvements Budget be amended as follows to establish sufficient authority for this this project:
Fund / Project / Project Name / C.I.B. / Change / C.I.B. as Amended
7779 / P782050-100020 / American Edition (Voted Carryover) / $5,000,000.00/ $5,000,000.00 / $0.00
7779 / P782050-100023 / Healthy Linden Homes V (Voted Carryover) /$0.00/ $5,000,000.00/ $5,000,000.00
SECTION 3. That the transfer of $5,000,000.00 or so much thereof as may be needed, is hereby authorized within Fund 7779 (Affordable Housing Bond fund), Dept-Div 44-10 (Housing) per the account codes in the attachment to this ordinance.
SECTION 4. 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 782050-100023, Dept. 44-10 (Housing), in Object Class 06 (Capital Outlay) per the accounting codes in the attachment to this ordinance.
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 make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 7. 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 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 passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.