Explanation
BACKGROUND: This legislation authorizes the appropriation and expenditure of up to $600,000.00 of HOME Investment Partnerships Program (HOME) entitlement grants ($100,000.00 from the 2022 grant and $500,000.00 from the 2023 grant) from the U.S. Department of Housing and Urban Development and authorizes the Director of the Department of Development to enter into a commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant with Habitat for Humanity-MidOhio to construct six single family homes. Each address would have its own set of loan documents.
Habitat for Humanity is a global nonprofit housing organization working in local communities across all 50 states in the U.S. and in approximately 70 countries. Habitat’s vision is of a world where everyone has a decent place to live. Habitat works toward the City’s vision by building strength, stability, and self-reliance in partnership with families in need of decent and affordable housing. Habitat homeowners help build their own homes alongside volunteers and pay an affordable mortgage.
Habitat has a well planned construction schedule that must take into account timing of public and private funding availability, volunteer labor, and subcontractor schedules. Habitat for Humanity is the only developer building homeownership units with HOME funds for qualified homebuyers who earn between 30-60 % AMI and every home on the list is one purchased or optioned from/with the Land Bank of Columbus and Franklin County.
Habitat offers a zero percent interest mortgage and also brings 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 for materials. These six units are part of the eleven in Columbus that Habitat plans to build in the 2023-2024 construction season and funded, in part, with City of Columbus HOME funds:
1362 Aberdeen Avenue (010 059520) (HOME 2022) - A two adult, two children partner family has selected this lot to build their two-story, four-bedroom home.
1501 Genessee Avenue (010-059900) (HOME 2023) - A two-parent, two children family has selected this lot to build their two-story, four-bedroom home.
1910 Genessee Avenue (010-069458) (HOME 2023) - A partner family consisting of one head of household, two adults, and 2 children family has selected this lot to build their two-story, five-bedroom home.
1936 Genessee Avenue (010-069430) (HOME 2023) - A single adult, one child family has selected this lot to build their two-story, three-bedroom home.
1315 Minnesota (010-059110) (HOME 2023) - A two-parent, three children family has selected this lot to build their two-story, four-bedroom home.
1330 Minnesota (010-059280) (HOME 2023) - A single adult, two children family has selected this lot to build their two-story, three-bedroom home.
This legislation represents appropriation for a part of the HOME portion of the 2022 Annual Action Plan per ordinance 2800-2021 and the 2023 Annual Action Plan per ordinance 3353-2022.
Emergency action is requested as the need for housing in the community is great and we are vastly approaching the fall and winter months where construction of these units will be impacted by the elements. The sooner the construction is able to start on these projects the better as the elements will impact the ability of the units to be finished which further add a strain to our already existing housing crisis as such immediate action is necessary.
Contract Compliance: the vendor number is 004859 and expires 3/20/2025.
Fiscal Impact: $100,000.00 is available from the 2022 HOME grant (G442102) and $500,000.00 is available from the 2023 HOME grant (442202). The commitment of funds through this legislation is conditioned on compliance with HUD’s environmental review requirements. The funding from HOME Fund (2201) 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 execution of documents for this project.
Title
To authorize appropriation and expenditure of up to $600,000.00 of HOME Investment Partnerships Program (HOME) entitlement grants ($100,000.00 from the 2022 grant and $500,000.00 from the 2023 grant) from the U.S. Department of Housing and Urban Development and to authorize the Director of the Department of Development enter into a commitment letter, loan agreement, promissory note, mortgage, and restrictive convent with Habitat for Humanity-MidOhio to construct six single family homes with each address having its own set of loan documents; and to declare an emergency. ($600,000.00)
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 Columbus City Council has approved the 2022 Action Plan per ordinance 2800-2021 and the 2023 Action Plan per ordinance 3353-2022; and
WHEREAS, the Department of Development desires to support Habitat for Humanity-MidOhio with financial support for six 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 to enter into a commitment letter, loan agreement, promissory note, mortgage and restrictive covenant with Habitat for Humanity-MidOhio as the need for housing in the community is great and the fall and winter months are approaching where construction of these units will be impacted by the elements, the sooner the construction is able to commence on these projects the better as the elements will impact the ability of the units to be finished which further add a strain to our already existing housing crisis, all for the immediate preservation of 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, 2023, the sum of $100,000.00 is appropriated in Fund 2201 (HOME), from Dept-Div 44-10 (Housing), G442102 (2022 HOME grant), object class 05 (Other Expenses) per the account codes in the attachment to this ordinance.
SECTION 2. That the expenditure of $100,000.00 or so much thereof as may be needed, is hereby authorized in Fund 2201 (HOME), from Dept-Div 44-10 (Housing), G442102 (2022 HOME grant), object class 05 (Other Expenses) per the account codes in the attachment to this ordinance.
SECTION 3. 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, 2023, the sum of $500,000.00 is appropriated in Fund 2201 (HOME), from Dept-Div 44-10 (Housing), G442202 (2023 HOME grant), object class 05 (Other Expenses) per the account codes in the attachment to this ordinance.
SECTION 4. That the expenditure of $500,000.00 or so much thereof as may be needed, is hereby authorized in Fund 2201 (HOME), from Dept-Div 44-10 (Housing), G442202 (2023 HOME grant), object class 05 (Other Expenses) per the account codes in the attachment to this ordinance.
SECTION 5. That the commitment of funds through this legislation is conditioned on compliance with HUD’s environmental review requirements. The funding from HOME Fund (2201) 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 execution of documents for this project.
SECTION 6. That the Director of Development is hereby authorized to enter into a commitment letter, loan agreement, promissory note, mortgage, and restrictive convent with Habitat for Humanity-Mid Ohio to construct six single family homes with each address having its own set of loan documents
SECTION 7. 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 8. 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 9. 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 10. 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.