Explanation
BACKGROUND: This legislation authorizes the expenditure of $10,000,000.00 from the Affordable Housing Fund under the Housing Development Agreement with the Central Ohio Community Land Trust. Approval is also requested to advance funding per a pre-determined schedule to be included in the agreement and to allow for expenses incurred prior to purchase order creation, starting January 1, 2025. Prior expenses include affordability subsidies for closed projects.
Columbus City Council Ordinance 2382-2024, passed October 7, 2024, authorized the Director of the Department of Development to enter into a $20 million Housing Development Agreement (HDA) with the Central Ohio Community Land Trust (COCLT). As authorized, the Director of the Department of Development entered into a Housing Development Agreement with the COCLT in November 2024. By Ordinance 1213-2025, Columbus City Council authorized the first allocation of $5m under this HDA. This legislation authorizes an additional $10 million under the HDA for the COCLT to continue ongoing and future projects. COCLT is a successful tool to bring more affordable homeownership opportunities and reutilize Land Bank lots. This agreement will allow the continued expansion of the COCLT and continue ongoing projects. Recently, the COCLT celebrated its 150th unit sold and presently has multiple projects in construction and planning stage in Columbus neighborhoods.
EMERGENCY DESIGNATION: To ensure that there are no delays in the construction timeline emergency action is requested.
FISCAL IMPACTS: Funding in the amount of $10,000,000.00 is available in 2025 Capital Improvement Budget, Affordable Housing Bond fund.
CONTRACT COMPLIANCE: The vendor’s contract compliance number is 039810 and expires 2/9/26.
Title
To authorize the Director of Department of Development to execute a funding agreement in an amount up to $10,000,000.00 with the Central Ohio Community Land Trust to develop affordable housing; to authorize the expenditure of up to $10,000,000.00 from the Affordable Housing Bond Fund; to authorize advancement of funds on a predetermined schedule; to authorize reimbursement of expenses incurred prior to the purchase order; and to declare an emergency. ($10,000,000.00)
Body
WHEREAS, in 2019, the City, Franklin County, and the Central Ohio Community Improvement Corporation (COCIC) created the Central Ohio Community Land Trust (COCLT), to develop and sell houses to families at or below 120% of the Area Median Income, and ensure the houses are kept affordable to future buyers; and
WHEREAS, through ordinances 0227-2019, 0872-2020, 1059-2021, 2522-2022, 3377-2023, and 2358-2024 , Columbus City Council has authorized the expenditure of $19m to develop affordable housing under the COCLT; and
WHEREAS, by Ordinance 2382-2024, Columbus City Council authorized the Director of Development to execute a Housing Development Agreement for $20,000,000; and
WHEREAS, by Ordinance 1213-2025, Columbus City Council authorized the expenditure of $5 million in affordable housing bond funds under the HDA
WHEREAS, the COCLT now requests the second allocation of funds from the HDA, an amount of $10 million; and
WHEREAS, COCLT is proposing to develop additional affordable housing under the land trust model that will include retaining ownership of the underlying land to ensure the site remains permanently affordable; and
WHEREAS, funding advances will be made per a pre-determined schedule to be included in the agreement and reimbursement of expenses incurred prior to purchase order creation, starting January 1, 2025, is permitted; and
WHEREAS, the COCLT has been undertaken successful projects in the South Side, Near East, Franklinton, Weiland Park, Milo-Grogan, Hilltop, Far Southside, and Linden in partnership with various co-developers and will expand into additional Columbus neighborhoods and with additional partners; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development to authorize the Director to enter into a grant agreement with the Central Ohio Community Land Trust to ensure there are no delays in construction, 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. The Director of Development is authorized to enter into funding agreement with the Central Ohio Community Land Trust to develop affordable housing in an amount up to $10,000,000.00 and is authorized to advance funds on a pre-determined schedule and to allow for expenses incurred prior to purchase order creation, starting January 1, 2025.
SECTION 2. That the expenditure of $10,000,000.00 or so much thereof as may be needed, is hereby authorized in 7779 (Affordable Housing Bond Fund), Dept-Div 44-10 (Housing), Project P782050-100019 (COCLT), in object class 06 (Capital Outlay) per the account codes in the attachment to this ordinance.
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 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 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.