Explanation
Background: In response to the housing mortgage crisis, the city of Columbus has been awarded $22,845,495 of Neighborhood Stabilization Program (NSP) grant funds from the U.S. Department of Housing and Urban Development (HUD). The funds will provide for the purchase of foreclosed or abandoned properties, and the redevelopment, rehabilitation or demolition of these properties in order to stabilize neighborhoods and stem the decline of house values of neighboring homes.
This legislation will implement the housing redevelopment portion of NSP that will include both the renovation and new construction of housing for homeownership and rental. The NSP Redevelopment Fund and the NSP 50% AMI Fund will assist for-profit and non-profit developers with grants and no or low interest loans for projects designed to reduce the number of vacant and abandoned properties, and to increase and preserve the local supply of decent, safe, sanitary, and affordable housing for low, moderate and middle income families. The NSP 50% AMI Fund is established in accordance with HUD regulations for the NSP program which state that 25% of the City's allocation must be designated to benefit households at or below 50% of the Columbus' area median income (AMI).
Redevelopment under this legislation will follow the City's NSP Application adopted by ordinance 1860-2008 (including the establishment and implementation of green construction standards), adhere to requirements established by HUD under the Program, and be guided by the Neighborhood Redevelopment/Housing Market Study being conducted by VWB Research on behalf the City.
Emergency action is requested to begin the redevelopment of properties as soon as possible and to meet deadlines established by HUD for the NSP Program.
Fiscal Impact: This legislation authorizes the expenditure of $10,086,047 in General Government Grant funds within the Department of Development. The Department's 2009 NSP budget includes funds for the redevelopment of properties.
Title
To authorize the expenditure of $10,086,047 from the General Government Grant Fund to provide funding for the housing redevelopment portion of the Neighborhood Stabilization Program; and to declare an emergency. ($10,086,047)
Body
Whereas, ordinance 1860-2008 adopted the City's Neighborhood Stabilization Program, authorized the filing of the Neighborhood Stabilization Program application with HUD, and made a substantial amendment to the Consolidated Plan's 2008 Action Plan; and
Whereas, the City's NSP application specified the expenditure of funds to redevelop properties through renovation and new construction that meet the program's requirements as established in Title III of the Housing and Economic Recovery Act of 2008; and
Whereas, it is necessary to establish both the NSP Redevelopment Fund and NSP 50% AMI Fund; and
Whereas, it is necessary to authorize the Development Director, or his designee, to assist for-profit and non-profit developers with grants and no or low interest loans for projects under the NSP Program; and
Whereas, the matter herein constitutes an emergency in that it is immediately necessary to authorize the redevelopment of properties and meet deadlines established by the NSP Program, 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 Development Director, or his designee, is authorized to assist for-profit and non-profit developers with grants and no or low interest loans for projects designed to reduce the number of vacant and abandoned properties, and to increase and preserve the local supply of decent, safe, sanitary, and affordable housing for low, moderate and middle income families.
Section 2. That for the purpose as stated in Section 1, the expenditure of $10,086,047 or so much thereof as may be necessary, is hereby authorized from the Department of Development, Division No. 44-10, General Government Grant Fund, Fund 220, Grant 440500, Object Level One 05, Object Level Three 5528 as follows:
Program / OCA Code / Amount
NSP Redevelopment Fund / 440506 / $4,286,047
NSP 50% AMI Fund / 440510 / $750,000
(Homeownership)
NSP 50% AMI Fund / 440511 / $5,050,000
(Rental)
TOTAL $10,086,047
Section 3. That expenditure of funds from this authorization shall be in accordance with U.S. Department of Housing and Urban Development Regulations for the Neighborhood Stabilization Program as established under Title III of the Housing and Economic Recovery Act of 2008 (HERA).
Section 4. 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 passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.