Explanation
BACKGROUND: This ordinance authorizes the appropriation and expenditure of up to $200,000.00 of the 2022 HOME Investment Partnerships Program (HOME) entitlement grant from the U.S. Department of Housing and Urban Development and to enter into a commitment letter, loan agreement, promissory note, and mortgage with Habitat for Humanity MidOhio to construct two single family homes.
Habitat for Humanity MidOhio has purchased from the City Land Bank two lots on Genessee Avenue in the Linden neighborhood on which they plan to develop two single family homes for low income families earning between 30-60% AMI.
Per Habitat's mission, the lots have been selected by pre-approved partner families who are currently working on their required sweat equity, which includes an extensive home owner education program that encompasses long term home maintenance and repair, personal financial management, and building their own home as well as the homes of other Habitat partner families.
1280 Genessee Avenue will be the location of a three bedroom new build, energy efficient home that will be purchased by a single head of household female who will share the home with her two children.
1262 Genessee Avenue will be the location of a four bedroom new build, efficient home that will be purchased by a single head of household female who will share the home with her three children.
Habitat for Humanity Has requested from the City $100,000.00 per unit and will provide leverage from donations and the Fund for Humanity, funds generated by the mortgage payments of Habitat homeowners.
This legislation represents appropriation for a part of the HOME portion of the 2022 Action Plan, per Ordinance 2800-2021.
Emergency action is requested to allow for the developer to maintain the project schedule.
Contract Compliance: the vendor number is 004859 and expires 4/13/2023.
Fiscal Impact: $200,000.00 is available from the 2022 HOME grant (G442102). The commitment of funds through this legislation is conditioned on compliance with HUD’s environmental review requirements. The contracts execution committing $200,000.00 from HOME Fund (2201) for Habitat of Humanity MidOhio is only authorized if all HOME review and comment requirements have been met prior to any commitment of funds, as approved by the Responsible Entity Agency Official. An Authorization to Utilize Grant Funds will be received by the City from HUD in advance of the contract execution for this project.
Title
To authorize the appropriation and expenditure of up to $200,000.00 of 2022 HOME Investment Partnerships Program (HOME) grant from the U.S. Department of Housing and Urban Development; to authorize the Director of Development to enter into a commitment letter, loan agreement, promissory note, and mortgage with Habitat for Humanity MidOhio in an amount up to $200,000.00 to construct two single family homes; and to declare an emergency. ($200,000.00).
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 2022 Action Plan has been approved by Ordinance 2800-2021, as required by HUD; and
WHEREAS, the Department of Development desires to support Habitat for Humanity MidOHio to construct two single family homes; 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 of Development to enter into a commitment letter, loan agreement, promissory note, and mortgage with Habitat for Humanity MidOhio in an amount up to $200,000.00 to construct two single family homes in order to appropriate and expend said funds to allow for the developer to maintain the project schedule, thereby preserving 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 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 ended December 31, 2022, the sum of $200,000.00 is appropriated in Fund 2201 (HOME), from Dept-Div 44-10 (Housing), G442102 (2022 HOME), object class 05 (Other Expenses) per the account codes in the attachment to this ordinance.
SECTION 2. That the expenditure of $200,000.00 or so much thereof as may be needed, is hereby authorized in Fund 2201 (HOME), Dept-Div 4410 (Housing), G442102 (2022 HOME), object class 05 (Other Expenses) per the account codes in the attachment to this ordinance.
SECTION 3. That the Director of Development is hereby authorized to enter into a commitment letter, loan agreement, promissory note, and mortgage with Habitat for Humanity MidOhio in an amount up to $200,000.00 to construct two single family homes.
SECTION 4. 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 5. 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 6. 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 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.