Explanation
BACKGROUND
This legislation authorizes the Director of the Department of Development to enter into a Grant Agreement, in an amount up to $250,000.00, with Iroquois Capital CDFI LLC to provide a loan to Jenkins Street Lofts Limited Partnership in support of the redevelopment of property located at 27 West Jenkins Street, in the South Side Neighborhood of Columbus (“Project”).
Ordinance 1169-2020, passed by City Council on June 1, 2020, authorized the Director of the Department of Development to enter into a Housing Development Agreement (HDA) for the Project. The HDA stated that the city would provide up to $500,000.00 through two installment payments of $250,000.00 each. This Grant Agreement is the first payment for the Project. Future legislation will be submitted to provide the second payment for the Project.
The Project is an approximately 60 multi-family residential unit, low income housing tax credit rental project consisting of 15 one bedroom units, 30 two bedroom units, and 15 three bedroom units (subject to final design and requite approvals). All of the units will be occupied by and affordable to households in affordable tiers of 30%, 50%, 60%, and 70%, but not exceeding 80% of the area median income. Other developers involved in the Project include Woda-Cooper Development and Community Development for All People and the project is anticipated to be completed by December 31, 2021.
Emergency action is requested in order to maintain the project schedule.
FISCAL IMPACT: Funding is available in 2020 Capital Improvement Budget. An amendment to the 2020 Capital Budget is required to establish sufficient budget authority for the project.
CONTRACT COMPLIANCE: the vendor number is 033062 and expires 7/15/2022.
Title
To amend the 2020 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 in an amount up to $250,000.00 with Iroquois Capital CDFI LLC to provide a loan to Jenkins Street Lofts Limited Partnership in support of the redevelopment of property located at 27 West Jenkins Street; and to declare an emergency. ($250,000.00) (AMENDED BY ORD. 1278-2021; PASSED 6/7/2021)
Body
WHEREAS, Ordinance 1169-2020, passed by City Council on June 1, 2020, authorized the Director of the Department of Development to enter into a Housing Development Agreement (HDA) with Iroquois Capital CDFI LLC to provide a loan to Jenkins Street Lofts Limited Partnership in support of the redevelopment of property located at 27 West Jenkins Street; and
WHEREAS, the HDA stated that the city would provide up to $500,000.00 through two installment payments of $250,000.00 each and this Grant Agreement is the first payment for the Project; and
WHEREAS, the Project is an approximately 60 multi-family residential unit, low income housing tax credit rental project consisting of 15 one bedroom units, 30 two bedroom units, and 15 three bedroom units (subject to final design and requite approvals); all of the units will be occupied by and affordable to households in affordable tiers of 30%, 50%, 60%, and 70%, but not exceeding 80% of the area median income; and the Project is anticipated to be completed by December 31, 2021; 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 Iroquois Capital CDFI, LLC in order to maintain the project schedule, thereby preserving 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 2020 Capital Improvements Budget authorized by ordinance 2521-2020 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 / P782012-100000/ Affordable Housing Funds / $10,500,000.00 / ($250,000.00) / $10,250,000.00
7779 / P782020-100000 / Jenkins Street Lofts / $0.00 / $250,000.00 / $250,000.00
SECTION 2. That the transfer of $250,000.00 or so much thereof as may be needed, is hereby authorized within Fund 7779 (Affordable Housing Fund), Dept-Div 44-10 (Housing) per the account codes in the attachment to this ordinance.
SECTION 3. That for the purpose as stated in Section 4, the expenditure of $250,000.00, or so much thereof as may be necessary, is hereby authorized in fund 7779 (Affordable Housing Fund), Project 782020-100000, Dept. 44-10 (Housing), in Object Class 06 (Capital Outlay) per the accounting codes in the attachment to this ordinance.
SECTION 4. That the Director of Development be and is hereby authorized to enter into a Grant Agreement, in an amount up to $250,000.00, with Iroquois Capital CDFI LLC to provide a loan to Jenkins Street Lofts Limited Partnership in support of the redevelopment of property located at 27 West Jenkins Street.
SECTION 5. 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 6. 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 7. 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 8. 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.