Explanation
BACKGROUND: This ordinance authorizes the Director of the Department of Development to enter into the second portion of a grant agreement with Habitat for Humanity-MidOhio for development of a 14-unit affordable housing development in an amount up to $1,000,000.00. The City’s total commitment to this project is $2,000,000.00 and this legislation is for the remaining $1,000,000.00.
The first portion of the commitment for the Devon’s Triangle neighborhood was authorized by Ordinance number 0552-2026 on March 24, 2026 and approved as a 30-day piece of legislation. This ordinance is for the second portion of the commitment to this project that is a small residential neighborhood in northeast Columbus, defined by its triangular shape formed by rail lines, Fifth Avenue, and I-670. This is a growing residential community where Habitat is actively investing in high-quality, affordable homeownership opportunities by developing its first multi-family project.
The Devon’s Triangle project will consist of four triplexes and one duplex for a total of fourteen individual units. The triplex model will consist of 3 to 4 bedrooms, 2 full bathrooms, ranging from 1,280 and 1,408 square feet. The duplex (Anna) model will consist of 3 bedrooms, 2 full bathrooms, ranging from 1,292 and 1,296 square feet. Each unit will be built to City AWARE standards. The energy features will include high-efficiency HVAC systems, high performance insulation, and energy-efficient windows and doors, ensuring long-term savings and comfort for homeowners.
The multi-dwelling units in the Devon’s Triangle neighborhood will address the need for affordable housing in the City of Columbus for low-to-moderate income families that are at or below 120% of the Area Median Income limits set by HUD. This project will be an addition of decent, safe and sanitary housing in the northeast quadrant of the City of Columbus. The project will also be a landmark, introducing multi-dwelling affordable townhome units to the Devon’s Triangle neighborhood. The project creates greater opportunities for affordable buyers to become homebuyers, while the multi-dwelling unit design addresses housing supply and density challenges.
Habitat for Humanity - MidOhio (HFHMO) is an affordable housing developer building new homes for qualified low-income families. Their efforts are in response to the lack of affordable housing options available to first-time, low-income homebuyers in the Columbus metro area. Using their cost- and energy-efficient house plans, volunteer labor, corporate sponsors and local government development gap funds, they keep costs at a minimum. Qualifying homebuyers must live in substandard housing and can earn between 30-60% AMI and are households who have been qualified by HFHMO for a zero-interest, no profit mortgage to purchase the homes. The homebuyers are required to complete buyer and financial education and have contributed up to 250 hours sweat equity on their own home ,that of other Habitat partner families, classes and community service activities. Habitat for Humanity-MidOhio has been serving the community of Central Ohio since 1987. With the mission and vision to provide decent, safe and affordable housing to low-income families, Habitat has developed strong partnerships with local businesses, churches and individuals to achieve this goal.
EMERGENCY DESIGNATION: Emergency action is requested to meet the project’s timeline and to ensure timely receipt of the grant agreement to allow the developer to close on their construction loan. Without emergency action, new affordable housing would be further delayed from a low-income community in urgent need of it.
FISCAL IMPACT: Funding for this project will not be available to the Department of Development until the bonds are sold related to the 2025 Capital Improvement Budget, and are available at a future date, therefore it is necessary to certify the required funds, in an amount up to $744,046.31 against the General Fund 1000, Income Tax Set Aside Subfund 100099. The fund will be reimbursed upon receipt of the bonds. There is sufficient authority for this project.
CONTRACT COMPLIANCE: the vendor number is 004859 and expires 01/27/2027.
Title
To authorize the Director of Development to enter into a grant agreement with Habitat for Humanity-MidOhio in an amount up to $1,000,000.00 for the development of a 14-unit affordable housing development for the final commitment to the Devon’s Triangle project for a total of $2,000,000.00; to authorize the amendment to the 2025 Capital Improvement Budget; to authorize the appropriation of funds within the Income Set Aside Subfund and the Affordable Housing Bond Fund; to authorize the transfer of cash between the Income Tax Set Aside Subfund and the Affordable Housing Bond Fund; to authorize the transfer of funds between projects within the Affordable Housing Bond Fund; to authorize the expenditure in an amount up to $1,000,000.00 within the Affordable Housing Bond Fund; and to declare an emergency. ($1,000,000.00)
Body
WHEREAS, Habitat for Humanity-MidOhio’s Devon’s Triangle project will consist of four triplexes and one duplex for a total of fourteen individual units; and
WHEREAS, the multi-dwelling units in the Devon’s Triangle neighborhood will address the need for affordable housing in the City of Columbus for low-to-moderate income families that are at or below 120% of the Area Median Income limits set by HUD; and
WHEREAS, the units will be built to City AWARE standards, including high-efficiency HVAC systems, high performance insulation, and energy-efficient windows and doors, ensuring long-term savings and comfort for homeowners; and
WHEREAS, Habitat for Humanity offers a zero percent interest mortgage and provides up to 58% of the funding to each deal with the use of donor dollars, the mortgage payments of other Habitat homeowners and in-kind donations of materials; and
WHEREAS, an amendment to the 2025 Capital Improvement Budget is needed to establish sufficient authority for this project; and
WHEREAS, it is necessary to certify the required funds, in the amount up to $744,046.31 dollars against the General Fund 1000, Income Tax Set Aside Subfund 100099 and authorize the appropriation and transfer of the funds in the amount up to $744,046.31 from the Income Tax Set Aside Subfund to the Affordable Housing Bond Fund and authorize the appropriation within the Affordable Housing Bond Fund.
WHEREAS, the City anticipates incurring certain Original Expenditures (as defined in Section 1.150-2(c) of the Treasury Regulations (the "Treasury Regulations") promulgated pursuant to the Internal Revenue Code of 1986, as amended) with respect to the construction of the project described in this ordinance (the "Project"); and
WHEREAS, the City will reimburse the General Fund 1000, Income Tax Set Aside Subfund 100099; and
WHEREAS, this transfer should be considered as a temporary funding method; and
WHEREAS, the aggregated principal amount of obligations which the City will issue to finance this project is presently expected not to exceed $744,046.31 and
WHEREAS, to authorize the transfer and expenditure within the Affordable Housing Bond Fund in an amount up to $1,000,000.00; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to authorize the Director to enter into a grant agreement with the Habitat for Humanity-MidOhio in order to maintain the project schedule and to meet deadlines for this project, 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 Director of the Department of Development be and is hereby authorized to enter into a grant agreement with Habitat for Humanity-MidOhio for development of a 14-unit affordable housing development in an amount up to $1,000,000.00 with a total commitment to the project of $2,000,000.00.
SECTION 2. That from the unappropriated monies and from all monies estimated to come into said funds from any and all sources and unappropriated for any other purpose during the fiscal year ending December 31, 2026, the sum of $744,046.31 is appropriated within General Fund 1000, Income Tax Set Aside Subfund 100099, in Object Class 10 Transfer Out Operating, and into the Affordable Housing Bond fund No. 7779, in Object Class 06 Capital Outlay per the account codes in the attachment to this ordinance.
SECTION 3. That the transfer of $744,064.31 or so much thereof as may be needed, is hereby authorized between the General Fund 1000, Income Tax Set Aside Subfund 100099, and the Affordable Housing Bond fund No. 7779, per the account codes in the attachment to this ordinance.
SECTION 4. That the 2025 Capital Improvements Budget be amended as follows to establish sufficient authority for this this project:
Fund / Project / Project Name / C.I.B. / Change / C.I.B. as Amended
7779/P782025-100000/Community Land Trust (Voted Carryover)/$948.00/833.00/ $1,781.00 to match cash
7779/P782025-100000/Community Land Trust (Voted Carryover)/$1,781.00/($1,781.00)/ $0.00
7779/P782012-100000/Affordable Housing (Voted Carryover)/$240,555.00/($240,555.00)/ $0.00
7779/P782012-100000/Affordable Housing (Voted 2022 ITSA Supported)/$44,200,000/($744,047)/ $43,455,953.00
7779/P782001-100000/Housing Preservation (Voted Carryover)/$0.00/$13,619.00/ $13,619.00 to match cash
7779/P782001-100000/Housing Preservation (Voted Carryover)/$13,619.00/($13,619.00)/ $0.00
7779 / P782050-100026 / Devon’s Triangle (Voted Carryover) /$0.00/ $255,955/ $1,000,000.00
7779 / P782050-100026 / Devon’s Triangle (Voted 2022 ITSA Supported) /$0.00/ $744,045/ $744,045
SECTION 5. That the transfer of $255,953.69 or so much thereof as may be needed, is hereby authorized between projects within Fund 7779 (Affordable Housing Bond fund), Dept-Div 44-10 (Housing) per the account codes in the attachment to this ordinance.
SECTION 6. That for the purpose as stated in Section 1, the expenditure of $1,000,000.00, or so much
thereof as may be necessary, is hereby authorized in fund 7779 (Affordable Housing Bond fund), Project
P782050-100026, Dept. 44-10 (Housing), in Object Class 06 (Capital Outlay) per the accounting codes in the attachment to this ordinance.
SECTION 7. That upon obtaining other funds, the City Auditor is hereby authorized and directed to repay the General Fund 1000, Income Tax Set Aside Subfund 100099 the amount transferred under Section 3.
SECTION 8. That the City intends that this ordinance constitute an "official intent" for purposes of Section 1.150 2(e) of the Treasury Regulations, and that the City reasonably expects to reimburse itself for certain Original Expenditures incurred with respect to the Project from the proceeds of obligations to be issued by the City in a principal amount currently estimated to be $$744,064.31 (the "Obligations").
The City intends to make a reimbursement allocation on its books for the Original Expenditures not later than eighteen months following the later to occur of the date of the Original Expenditure to be reimbursed or the date the Project for which such Original Expenditures were made is "placed in service" within the meaning of Treasury Regulations Section 1.150 2(c). Upon the issuance of the Obligations, the proceeds of such Obligations shall be used to reimburse the fund from which the advance for costs of the Project will be made.
SECTION 9. 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 10. 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 11. 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 12. 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 passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.