Explanation
BACKGROUND: This legislation authorizes the expenditure in an amount up to $2,000,000.00 of funding from the U.S. Department of Housing and Urban Development (HUD), through the HOME Investment Partnerships Program (HOME) program income funds and authorizes the Director of Development to execute a commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant with Aspire Columbus LLC for the construction of the Aspire Columbus project.
Total funding for the project is $2,000,000.00 is found within program income generated from the HOME Program. Aspire Columbus is an innovative, mixed income project that will set a new standard for inclusive excellence in downtown development. The 82-unit project will be developed by Columbus Metropolitan Housing Authority (CMHA) and designed by Moody Nolan Architects. When complete, the 82 units will serve some of the most at-risk households in our community, with 25% of the units affordable for households making less than 50% of the area median income, eleven units will be for households making less than 30% of the area median income and those units will be subsidized with HUD Section 811 Project Rental Assistance Program Funds, and 12 of the units will be market rate. Aspire Columbus consists of mixed income multi-family units that will range from studio units to 3-bedroom units. Aspire Columbus will provide the residents access to free wi-fi, an exercise room, and an outdoor space. The location of Aspire Columbus will provide the residents access to a full service grocery store and pharmacy, medical clinic, childcare, the main public library, as well as places like Columbus Commons.
Aspire Columbus puts community, opportunity, and affordability at its core and is committed to those principles for decades to come. The fundamental goal of Aspire Columbus is to provide quality, sustainable, and affordable housing in the heart of downtown that offers a pathway to greater financial stability for residents across the income spectrum as well as access to services and programming that meet each resident’s needs. CMHA’s Resident Initiatives department will help residents with economic empowerment, educational advancement, health and wellness, character and leadership, as well as housing stability services. The residents will have access to two Resident Initiatives Coordinators, one-two social work interns, as well as two AmeriCorps VISTA Members. This team will be able to receive requests for service referrals directly from the residents and property management. Some examples of the services that residents will have access to that are intended to enhance and improve quality of life, are included but not limited to:
• Credit and budget counseling
• Job search assistance
• Workforce development services
• Continuing adult education
• Out of school time programs for youth
• Scholarship programs
• Access to health Insurance and healthcare resources
• Parenting resources
• Emergency financial assistance
• Emergency utility assistance
• Applying for public assistance
In addition to the program listed above the residents will have access to CMHA’s Family-Self-Sufficiency Program which helps residents take the next steps to find and maintain stable employment and establish savings accounts that will lead to self-sufficiency.
This legislation represents appropriation for a part of the City’s 2025 HUD Annual Action Plan per Ordinance 2968-2024.
Emergency Designation: An emergency exists in that that this project requires full financial and construction reviews within two departments of HUD, the local field office and the Office of General Counsel in Washington, DC. Both offices expect to finish their review in late September, and the closing of this project will need to take place soon thereafter in order to secure all funding sources as well as the project timeline.
Contract Compliance: the vendor number is 053246 and expires on 08/11/2027
Fiscal Impact: $2,000,000.00 is available from and within the 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 $2,000,000.00 of HOME Investment Partnerships Program (HOME) program income funds from the U.S. Department of Housing and Urban Development; authorizes the Director of the Department of Development to enter into a commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant with Aspire Columbus LLC in an amount up to $2,000,000.00 of program income for the Aspire Columbus project; and to declare an emergency. ($2,000,000.00)
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 City's Draft 2025 HUD Annual Action Plan, per Ordinance 2968-2024, respectively, as required by HUD; and
WHEREAS, the Director of the Department of Development desires to support the Aspire Columbus project with HOME funds, in an amount up to $2,000,000.00; and
WHEREAS, the expenditure in an amount up to $2,000,000.00 is necessary for this project; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is necessary to allow the Director of Development to immediately execute a commitment letter and loan agreement with the developer in preparation for the project’s closing as a delay in execution of the city’s financial support documents may result in increased project costs, 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 the expenditure in an amount up to $2,000,000.00, or so much thereof as may be needed, is hereby authorized in Fund 2201 (HOME), Dept-Div 4410 (Housing), G442302 (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, mortgage, and restrictive covenant with Aspire Columbus LLC for the Aspire Columbus project in an amount up to $2,000,000.00.
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. 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 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.