Explanation
BACKGROUND: This legislation authorizes the expenditure in an amount up to $1,200,000.00 of HOME Investment Partnerships Program (HOME) grant funds ($200,000.00 from the 2023 grant and $1,000,000.00 from the 2024 grant) from the U.S. Department of Housing and Urban Development and also authorizes the Director of the Department of Development to execute a commitment letter, loan agreement, promissory note, mortgage, and restrictive convent with Opportunity Pointe II Limited Partnership for the Opportunity Pointe II project in an amount up to $1,200,000.00
Opportunity Pointe II will include a strategic public-private partnership between Woda Cooper Companies, Inc. and its affiliates with Columbus State Community Partners (the development arm for Columbus State Community College) to increase housing density in the Discovery District of downtown Columbus. Columbus State, understanding the need for workforce housing options downtown, will lease 6 parcels along Cleveland Avenue and Long Street (PPN 010013262, 010007507, 010050806, 010054688, 010055721, 010042226) and Kelly Alley which was approved for transfer on March 2nd, 2026, by Columbus City Council to facilitate the construction of the development. Woda will have a 75% General Partner interest, and Columbus State or its affiliate will have a 25% General Partner interest.
Opportunity Pointe II is a new construction 5-story elevator building consisting of 84 affordable housing units targeting general occupancy. The project will be comprised of two (2) efficiency units, sixty-four (64) one-bedroom units, nine (9) two-bedroom units, and nine (9) three-bedroom units. The development will target 30% to 80% Area Median Income (AMI). Twenty (20) units will be rent restricted at or below 30% AMI, two (2) units will be rent restricted at or below 50% AMI, thirty-one (31) units will be rent restricted at or below 60% AMI, and thirty-one (31) units will be rent restricted at or below 80% AMI. Amenities include the following: on-site management office, community room with kitchenette, exercise room, outdoor playground area, outdoor patio area that is at least 50% covered and all units will have energy star certified washer and dryers as well as energy star certified dishwashers.
The community will be strategically located near numerous amenities and employment centers downtown which will allow for inclusion and equitable housing opportunities that would otherwise be unavailable as Columbus continues to grow. The development also helps meet a major goal of the 2022 Downtown Columbus Strategic Plan to bring more residents downtown as residents are the cornerstone of Downtown Columbus' growth. The plan hopes to increase the current downtown residential population from 12,000 to 40,000 by 2040.
This legislation represents expenditure for a part of the HOME portion of the 2023 Action Plan per ordinance 3353-2022 and the 2024 Action Plan per ordinance 2993-2023.
Contract Compliance: the vendor number is 054879 and expires 3/27/2028.
Fiscal Impact: $200,000.00 is available within the 2023 HOME grant (G442202) and $1,000,000.00 is available within the 2024 HOME grant (G442302). 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
This ordinance authorizes the expenditure in an amount up to $1,200,000.00 of HOME Investment Partnerships Program (HOME) grant funds ($200,000.00 from the 2023 grant and $1,000,000.00 from the 2024 grant) from the U.S. Department of Housing and Urban Development and also authorizes the Director of the Department of Development to execute a commitment letter, loan agreement, promissory note, mortgage, and restrictive convent with Opportunity Pointe II Limited Partnership for the Opportunity Pointe I project. ($1,200,000.00)
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 Columbus City Council has approved the 2023 Action Plan per ordinance 3353-2022 and the 2024 Action Plan per ordinance 2993-2023; and
WHEREAS, the Department of Development desires to support Opportunity Pointe II Limited Partnership with HOME funds, in an amount up to $1,200,000.00; and
WHEREAS, the expenditure in an amount up to $1,200,000.00 is necessary; and
WHEREAS, it is necessary in the usual and daily operation of the Department of Development to authorize the Director to execute a commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant with Opportunity Pointe I Limited Partnership for the Opportunity Pointe II project; and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Development is hereby authorized to execute a commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant with Opportunity Pointe II Limited Partnership, for the Opportunity Pointe II project in an amount up to $1,200,000.00.
SECTION 2. That the expenditure in an amount up to $1,200,000.00 or so much thereof as may be needed, is hereby authorized within Fund 2201 (HOME), Dept-Div 4410 (Housing), G442202 (2023 HOME) and G442302 (2024 HOME), object class 05 (Other Expenses) per the account codes in the attachment to this ordinance.
SECTION 3. 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. 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 6. 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 7. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.