Explanation
BACKGROUND
This legislation authorizes the expenditure of $5,000,000.00 from the Affordable Housing Fund under the Housing Development Agreement with the Central Ohio Community Land Trust Corporation.
Columbus City Council Ordinance 2382-2024, passed October 7, 2024, authorized the Director of the Department of Development to enter into a $20 million Housing Development Agreement (HDA) with the Central Ohio Community Land Trust Corporation (COCLT). As authorized, the Director of the Department of Development entered into a Housing Development Agreement with the COCLT in November, 2024.
The Department of Development now requests the first allocation of $5 million under this HDA. The COCLT is a successful tool to bring more affordable homeownership opportunities and reutilize Land Bank lots. This agreement will allow the continued expansion of the COCLT and continue ongoing projects. As of February 2025, the COCLT has developed and sold 138 affordable homeownership housing units throughout central Ohio, most of which are located in Columbus neighborhoods. Authorization is requested to reimburse expenses incurred prior to the execution of the purchase order, starting October 7, 2024.
Emergency action is requested to ensure completion of the units according to schedule and made available for occupancy.
FISCAL IMPACTS
Funding in the amount of $5,000,000.00 is available within Fund 7779, Affordable Housing Bond Fund within the Department of Development.
CONTRACT COMPLIANCE: the vendor number is 039810 and expires 02/09/26.
Title
To amend the 2024 Capital Improvement Budget; to authorize the City Auditor to transfer cash and appropriation between projects within the Affordable Housing Bonds Fund; to authorize the Director of the Department of Development to enter into a Funding Agreement with the Central Ohio Community Land Trust Corporation to develop affordable housing; and to authorize the expenditure of $5,000,000.00 within the Affordable Housing Bonds Fund; to authorize reimbursement of expenses incurred prior to the purchase order; and to declare an emergency. ($5,000,000.00)
Body
WHEREAS, in 2019, the City, Franklin County, and the Central Ohio Community Improvement Corporation (COCIC) created the Central Ohio Community Land Trust (COCLT), to develop and sell houses to families at or below 120% of the Area Median Income, and ensure the houses are kept affordable to future buyers; and
WHEREAS, through ordinances 0227-2019, 0872-2020, 1059-2021, 2522-2022, 3377-2023, and 2358-2024 , Columbus City Council has authorized the expenditure of $19m to develop affordable housing under the COCLT; and
WHEREAS, by Ordinance 2382-2024, Columbus City Council authorized the Director of Development to execute a Housing Development Agreement for $20,000,000; and
WHEREAS, the COCLT now request the first allocation of funds from the HDA, an amount of $5 million; and
WHEREAS, COCLT is proposing to develop additional affordable housing under the land trust model that will include retaining ownership of the underlying land to ensure the site remain permanently affordable; and
WHEREAS, the COCLT has been undertaken successful projects in the South Side, Near East, Franklinton, Weiland Park, Milo-Grogan, Hilltop, Far Southside, and Linden in partnership with various co-developers and will expand into additional Columbus neighborhoods and with additional partners; and
WHEREAS, it is necessary to authorize an amendment to the 2024 Capital Improvement Budget and a transfer of cash within the Development Taxable Bonds Fund for the purpose of providing sufficient spending authority for the aforementioned project expenditure; and
WHEREAS, to authorize an expenditure up to $5,000,000.00 from the Development Taxable Bond Fund; and
WHEREAS, it is necessary to authorize reimbursement of expenses incurred prior to the execution of a purchase order, starting October 7, 2024; and
WHEREAS, Authorization is requested to enter into an agreement and expend $5 million to help continue COCLT projects in Columbus neighborhoods on parcels owned by the Land Banks. The funds will be used to build the houses and reduce the purchase price of houses developed for the COCLT for qualified buyers; and;
WHEREAS, an emergency exists in the usual daily operation of the Department of Development, Land Redevelopment Division in that it is immediately necessary to authorize the Director to enter into this funding agreement to provide financial assistance for the construction of affordable housing without interruption, 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 Capital Improvements Budget authorized by ordinance 1907-2024 be amended as follows to establish sufficient authority for this project:
Fund / Project / Project Name / Current / Change /C.I.B. as Amended
7779/ P782012-100000 / Affordable Housing / $5,668,598.00/ ($5,000,000.00) / $668,598.00
7779 / P782025-100000 / Community Land Trust / $0.00 / $5,000,000.00 / $5,000,000.00
SECTION 2. That the Director of the Department of Development be and is hereby authorized to enter into a funding agreement, in an amount up to $5,000,000.00 on behalf of the City with the Central Ohio Community Land Trust, an Ohio Non-profit Corporation to construct affordable housing under a community land trust. This agreement will also allow for reimbursement of expenses incurred prior to the purchase order, beginning October 7, 2024.
SECTION 3. That the transfer of $5,000,000.00, or so much thereof as may be needed, is hereby authorized between projects within Fund 7779, Affordable Housing Bonds Fund per the account codes in the attachment to this ordinance.
SECTION 4. That the expenditure of $5,000,000.00 to the, or so much thereof as may be needed, is hereby authorized in Fund 7779 (Affordable Housing Bonds Fund) Dept-Div 4411 (Land Redevelopment), 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 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.