Explanation
This ordinance authorizes the expenditure in an amount up to $164,989.00 of U.S. Department of Housing and Urban Development (HUD) HOME Investment Partnerships Program (HOME) program Funds, authorizes the Director of the Department of Development to enter into a HOME commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant with individual homebuyers who access the American Dream Downpayment Assistance (ADDI) program and authorizes the expenditures in amounts up to $12,060.00 of 2021 HOME funds and $152,929.00 of 2023 HOME funds.
The City of Columbus provides down payment assistance of HOME funds to first time homebuyers whose household income is at or below 80% AMI for purchase of a home in the City of Columbus or Columbus City School District. The amount of assistance provided is the lesser of 6% of the purchase price or $14,999.00 and is provided as a forgivable loan. The household must remain in the home for a period of five years for the loan to be forgiven.
This funding will assist 11 low-moderate income first-time homebuyers purchase a home in the City of Columbus corporate limits. The agreement will address the need to assist buyer with purchasing affordable housing in the City of Columbus. Additional funds may be encumbered later in 2026 for this program.
This legislation represents a portion of the appropriation for the HOME portion of the Program Year 2021 HUD Annual Action Plan, per Ordinance 2345-2020 and a portion of the appropriation for the HOME portion of the Program Year 2023 HUD Annual Action Plan per Ordinance 3353-2022.
Fiscal Impact: $12,060.00 is available within the 2021 HOME grant (G452000) and $152,929.00 is available within the 2023 HOME grant (G442202).
Title
To authorize expenditures in an amount up to $12,060.00 within the 2021 HOME Investment Partnerships Program (HOME) grant and $152,929.00 within the 2023 HOME grant; and authorizes the Director of the Department of Development to enter into a HOME commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant with individual homebuyers who access the American Dream Downpayment Assistance (ADDI) program. ($164,989.00)
Body
WHEREAS, the City of Columbus is a participating jurisdiction of the U.S. Department of Housing and Urban Development; and
WHEREAS, the City of Columbus is the recipient of HOME Investment Partnerships funds from the U.S. Department of Housing and Urban Development; and
WHEREAS, the Columbus City Council has approved the 2021 Action Plan, per Ordinance 2345-2020 and the 2023 Action Plan, per Ordinance 3353-2022, as required by HUD; and
WHEREAS, it has become necessary in the usual daily operation to expend funds from the 2021 and 2023 HOME grants for the American Dream Downpayment Assistance program as these are deemed eligible expenses per HUD guidelines; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the expenditure of an amount up to $164,989.00 or so much thereof as may be needed, is hereby authorized within Fund 2201 (HOME), Dept-Div 4410 (Housing), G452000 (2021 HOME) and G442202 (2023 HOME), object class 05 (Other Expenses) per the account codes in the attachment to this ordinance.
SECTION 2. That the Director of Development is hereby authorized to enter into a HOME commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant with individual homebuyers who access the American Dream Downpayment Assistance (ADDI) program in an amount up to $164,989.00.
SECTION 3. That funds are hereby deemed appropriated and expenditures and transfers authorized to carry out the purposes of this ordinance and the City Auditor shall establish such accounting codes as necessary.
SECTION 4. 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 5. That at the end of the grant period, any repayment of unencumbered balances required by the grantor is hereby authorized and any unused City match monies may be transferred back to the City fund from which they originated in accordance with all applicable grant agreements.
SECTION 6. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.