Explanation
BACKGROUND: The Department of Finance and Management, Grants Management Section anticipates an annual entitlement funding award for the Community Development Block Grant (CDBG) program from the U.S. Department of Housing and Urban Development (HUD). This ordinance is needed to appropriate and authorize the expenditure of a portion of the CDBG award in order to post timely financial transactions for grant-funded programs. There will be subsequent ordinances submitted to appropriate the remaining grant funds, and authorize additional Subrecipient Agreements and expenditures for various CDBG activities.
The Community Development Block Grant (CDBG) Entitlement Program provides annual grants on a formula basis to cities and counties to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low-and moderate-income persons. All City CDBG expenditures must be consistent with the community needs, priorities, and strategies stated in the City’s 2020-2024 Consolidated Plan, as approved by HUD.
The appropriations requested in this ordinance align with the Draft FY 2023 Annual Action Plan and are contingent on approval of the Draft FY 2023 Annual Action Plan through Ordinance #3353-2022. Listed below are the programs and Subrecipient Agreements funded by the actions outlined in this Ordinance.
Department of Finance and Management - Grants Management Administration - $624,000.00
Department of Recreation and Parks - Capital Kids Program - $631,580.00
Department of Recreation and Parks - Fitness Camp - $91,860.00
Renew Homes Ohio - Home Maintenance and Repair - $300,000.00
Rebuilding Together Central Ohio D.B.A. Modcon Living - Tool Library - $86,500.00
Legal Aid Society of Columbus - Housing Conditions Assistance - $100,000.00
Franklinton Development Association - Life Skills Training - $130,000.00
Maroon Arts Group - Acquisition of Building - $1,500,000
Columbus Next Generation Corporation - Rehabilitation of Transitional Housing for Homeless - $420,000.00
FISCAL IMPACT: The CDBG program is primarily funded with entitlement awards by the U.S. Department of Housing and Urban Development. However, certain grant programs may generate revenue that must be spent on furthering CDBG programming as required by the grantor. The anticipated PY 2023 entitlement award is estimated at $7,500,000.00. This ordinance will authorize the appropriation and expenditure of $3,883,940.00 (Fund 2248).
Title
To authorize and direct the Director of Finance and Management to appropriate and authorize the expenditure of $3,883,940.00 in CDBG grant funds (Fund 2248) from the U.S. Department of Housing and Urban Development; to authorize the Director of Finance and Management to enter in Subrecipient Agreements with community-based partners to undertake eligible activities. ($3,883,940.00) (AMENDED BY ORD. 0234-2023 PASSED 2/6/2023) BA
Body
WHEREAS, the City of Columbus is an entitlement community and a Participating Jurisdiction of the U.S. Department of Housing and Urban Development, and the City is a current recipient of Community Development Block Grant funds from HUD; and
WHEREAS, $7,500,000.00 in entitlement grant funds are anticipated from the U.S. Department of Housing and Urban Development for the Community Development Block Grant program for Fiscal Year 2023; and
WHEREAS, it is necessary to appropriate and authorize the expenditure of $3,883,940.00 from Fund 2248 for the programs and Subrecipient Agreements as listed above; and
WHEREAS, under 24 CFR §570.500(c), the City of Columbus may select organizations as Subrecipients to undertake eligible Community Development Block Grant activities; and
WHEREAS, the City wishes to use these funds to support local community-based organizations whose work advances HUD’s National Objectives, the City’s Consolidated Plan goals, and the City’s Opportunity Rising aspirations; and
WHEREAS, the City held a competitive process inviting organizations to apply for CDBG funding support and received 50 CDBG funding proposals representing requests totaling more than $25 million;
WHEREAS, the City has selected the following programs and organizations to carry out various eligible activities as described in the Draft FY 2023 Annual Action Plan contingent on approval of Ordinance #3353-2022: Department of Finance and Management - Grants Management Administration - $624,000.00; Department of Recreation and Parks - Capital Kids Program - $631,580.00; Department of Recreation and Parks - Fitness Camp - $91,860.00; Renew Homes Ohio - Home Maintenance and Repair - $300,000; Rebuilding Together Central Ohio D.B.A. Modcon Living - Tool Library - $86,500.00; Legal Aid Society of Columbus - Housing Conditions Assistance - $100,000.00; Franklinton Development Association - Life Skills Training - $130,000.00; Maroon Arts Group - Acquisition of Building - $1,500,000; Columbus Next Generation Corporation - Rehabilitation of Transitional Housing for Homeless - $420,000.00; and
WHEREAS, it has become necessary in the usual daily operation of the Department of Finance and Management to authorize the Director to enter into Subrecipient Agreements with the organizations listed above; 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, 2023, the sum of $3,883,940.00 is appropriated in Fund 2248 Community Development Block Grant Fund per the account codes in the attachment to this ordinance.
SECTION 2. That the Director of Finance and Management is hereby authorized and directed to enter into Subrecipient Agreements with the organizations listed below to carry out the work described in the Draft FY 2023 Annual Action Plan, contingent on approval of Ordinance #3353-2022:
Renew Homes Ohio - Home Maintenance and Repair - $300,000.00
Rebuilding Together Central Ohio D.B.A. Modcon Living - Tool Library - $86,500.00
Legal Aid Society of Columbus - Housing Conditions Assistance - $100,000.00
Franklinton Development Association - Life Skills Training - $130,000.00
Maroon Arts Group - Acquisition of Building - $1,500,000
Columbus Next Generation Corporation - Rehabilitation of Transitional Housing for Homeless - $420,000.00
SECTION 3. That the monies appropriated in the foregoing Section 1 shall be paid upon the order of the respective department directors or elected officials for which the appropriations are made, except that small claims in amounts not to exceed two-thousand five-hundred dollars ($2,500.00) may be paid as authorized by Chapter 335 of the Columbus City Code as amended; and except that payments or transfers between departments, divisions or funds of the City may be made by the City Auditor; and except that payments for premiums for official bonds, depository commissions, employees’ hospitalization, life insurance, pensions, dental insurance and prepaid legal services, shall be made on the order and approval of the Director of the Department of Finance and Management or City Auditor; and that no order shall be drawn or money paid except upon voucher, the form of which shall be approved by the City Auditor.
SECTION 4. That, except in the matter of payrolls providing for the payment of the salaries of officers and employees regularly employed by the City and extraordinary emergencies, no warrant shall be issued in liquidation of vouchers, unless the department contracting the expense shall have first obtained an order duly certified that there are sufficient funds appropriated to the credit of the proper funds from which the expenditure is to be made, which certificate must be obtained prior to the incurrence of the obligation, and the head of any department or division authorized to contract expenditures will be held personally responsible for any obligation incurred contrary to the provisions of this section. Except that such certificate shall not be issued for obligations pertaining to “Capital Outlay” in programs or activities funded by federal or state categorical grants without the prior approval of the Director of the Department of Finance and Management; such prior approval must be obtained before submission of any requisition for items coded as “Capital Outlay” to the Department of Finance and Management. The Director of the Department of Finance and Management will review such requests for conformity with the approved budget.
SECTION 5. That it is understood that this Council is not making specific appropriations for each item of every classification herein before contained but only for the classifications per the account codes in the attachment to this ordinance. The itemized classification shall, however, constitute limitations on the powers of the several department heads as granted in Section 3, and no such officer shall make any expenditure for any other purpose in any amount beyond that of the particular classification; provided, however, that transfers may be made from one Object Level 1 to another, within any one department or division. Transfers of sums exceeding $100,000 shall be authorized only by ordinance of Council. Transfers of sums of $100,000 or less shall be approved by letter with the signatures of the head of the department, the Director of the Department of Finance and Management, the City Auditor and the Chairman of the Finance Committee.
SECTION 6. That the Director of the Department of Finance and Management may be required to transfer funding from one subfund to another within the Fund 2248, Community Development Block Grant Fund due to the availability of funding based on federal requirements of grants based accounting and account coding will be provided to the City Auditor.
SECTION 7. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated and authorized for expenditure, 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 modification associated with this ordinance.
SECTION 9. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.