Explanation
BACKGROUND
This ordinance authorizes the Director of the Department of Development to enter into a grant agreement with Franklinton Rising for a 4-unit affordable housing development in an amount up to $600,000.00. Approval is also requested for reimbursement of construction and soft cost expenses incurred prior to execution of the purchase order, starting March 1, 2025.
Franklinton Rising’s project will create four affordable housing units comprised of two duplex buildings built on two vacant lots, 157 and 175 Chicago Avenue, Columbus, Ohio, 43222. Simultaneously the developer will teach and train 15-25 apprentices, preparing them to launch careers in the building trades.
Each of the duplex buildings will have two, three-bedroom units, each with one large bathroom. The units will be built with nine-foot ceilings and extra energy efficiency. The first unit of each of the buildings will be at ground level and be handicap accessible. The second unit, directly above the first, will include a covered exterior stairway to the second floor. Each unit will have between 1100 and 1200 square feet of living space. The buildings will have installed solar panels, extra foam board exterior insulation, 2”x6” exterior wall studs with fiberglass insulation and 5/8” dry wall, all to ensure the least amount of electrical utility costs for each unit. Parking will be provided at the rear of the buildings, off the alley.
The established rents will target families with incomes of 50%-70% AMI. Franklinton Rising has partnered with various ministry programs in Franklinton including Lower Lights Adult Ministries and The Refuge, and staff members including Youth for Christ, to offer residency to their graduates. Such ministries desire for their graduates to remain in the area to help build a strong community and support others in the neighborhood. There are limited options, and this project provides quality, new units with fully furnished with appliances. The units are also near public transportation; with a COTA bus stop at the corner of Chicago Avenue and West Broad Street, less than two blocks from the units.
There are many low-income families with a disabled members and the handicap accessible units offer a unique, attractive, energy efficient, and affordable housing option. Each building will have a ramp from the rear of the lot to the entrance specifically designed for wheelchair use.
Franklinton is within close proximity to downtown Columbus and is therefore a very desirable area in which to live.
FISCAL IMPACT: Funding in the amount of $600,000.00 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 021767 and expires 05/01/2027.
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 Franklinton Rising for development of a 4-unit affordable housing project in an amount up to $600,000.00; authorize the expenditure of up to $600,000.00 from the Affordable Housing Bond Fund; and to authorize expenditures prior to execution of the Purchase Order. ($600,000.00)
Body
WHEREAS, Franklinton Rising’s development project will create four affordable housing units comprised of two duplex buildings built on two vacant lots at 157 and 175 Chicago Avenue; and
WHEREAS, each of the units will have three bedrooms, be energy efficient, be close to public transportation, and half of the units will be handicap-accessible; and
WHEREAS, the established rents will target families with incomes of 50%-70% AMI and Franklinton Rising will work with various ministry programs in the area to offer residency to their graduates, allowing them to remain in the area to help build a strong community and support others in the neighborhood; and
WHEREAS, an amendment to the 2025 Capital Improvement Budget is needed to establish sufficient authority for this project; and
WHEREAS, authorization is requested for the transfer and expenditure within the Affordable Housing Bond Fund in an amount up to $600,000.00; and
WHEREAS, approval is also requested for reimbursement of expenses incurred prior to execution of the purchase order, starting March 1, 2025; and
WHEREAS, in the usual daily operation of the Department of Development, the Director desires to enter into a grant agreement with Franklinton Rising for development of a 4-unit affordable housing project; 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 Franklinton Rising for development of a 4-unit affordable housing development in an amount up to $600,000.00 and to authorize expenses incurred prior to execution of the purchase order, starting March 1, 2025.
SECTION 2. That the 2025 Capital Improvements Budget be amended as follows to establish sufficient authority for this project:
Fund / Project / Project Name / C.I.B. / Change / C.I.B. as Amended
7779 / P782050-100017/ Lofts on Long (Voted Carryover) /$4,340,000.00/($600,000.00)/$3,740,000.00 7779 / P782046-100000 / Franklinton Rising (Voted Carryover) /$0.00/ $600,000.00/ $600,000.00
SECTION 3. That the transfer of $600,000.00 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 $600,000.00, or so much thereof as may be necessary, is hereby authorized in fund 7779 (Affordable Housing Bond fund), Project P782046-100000, 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 this ordinance shall take effect and be in force from and after the earliest period allowed by law.