Explanation
BACKGROUND
This ordinance authorizes the Director of the Department of Development to enter into a grant agreement with the Tivoli Apartments, LLC for the acquisition of property in the Harrison West neighborhood of Columbus in an amount up to $2,250,000.00. Approval is also requested for reimbursement of property acquisition expenses incurred prior to execution of the purchase order, starting January 1, 2023.
The Tivoli Apartments, located in the Harrison West neighborhood adjacent to downtown Columbus, consists of 88 apartment units originally developed as part of the Goodale Urban Renewal Project.
The project involves acquisition and redevelopment with a commitment to restrict rents to no more than 60% of the Area Median Income (AMI), significantly contributing to housing affordability in a neighborhood where construction costs have increasingly posed challenges to affordable housing development.
Market analysis indicates a strong demand for affordable housing options in the vicinity of downtown Columbus, where average market rents can significantly exceed the financial capacity of lower-income residents. Recent market data show a census tract average of $1,642 for one-bedroom apartments and $1,703 for two-bedroom apartments, underscoring the critical need for dedicated affordable housing within this rapidly developing neighborhood.
Redevelopment plans emphasize affordability, quality, and sustainability. Exterior improvements will address deferred maintenance, including roof repair, asphalt paving, sidewalk rehabilitation, landscaping, and building systems. Interiors will undergo strategic renovations, primarily focused on modernizing flooring, fixtures, kitchens, bathrooms, and energy efficiency improvements.
The Tivoli Apartments project not only provides essential housing affordability but also contributes to the ongoing revitalization and sustainability of the Harrison West neighborhood. Its strategic location offers residents convenient walkability to downtown Columbus, employment centers, and access to public transit, ensuring continuity for residents who call this community home.
FISCAL IMPACT: Funding in the amount of $2,250,000.00 is available in 2024 Capital Improvement Budget, Affordable Housing Bond fund. An amendment to the 2024 Capital Budget is required to establish sufficient budget authority for the project.
CONTRACT COMPLIANCE: the vendor number is 052053 and expires 03/20/2027.
Title
To amend the 2024 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 with Tivoli Apartments, LLC in an amount up to $2,250,000.00; to authorize the expenditure of up to $2,250,000.00 from the Affordable Housing Bond Fund; and to authorize the reimbursement of expenditures incurred prior to the establishment of a purchase order. ($2,250,000.00)
Body
WHEREAS, the Director of the Department of Development seeks to enter into a grant agreement with the Tivoli Apartments, LLC for the acquisition of property in the Harrison West neighborhood of Columbus in an amount up to $2,250,000.00; and
WHEREAS, the project involves acquisition and redevelopment with a commitment to restrict rents to no more than 60% of the Area Median Income (AMI), significantly contributing to housing affordability in a neighborhood where construction costs have increasingly posed challenges to affordable housing development; and
WHEREAS, the Tivoli Apartments project not only provides essential housing affordability but also contributes to the ongoing revitalization and sustainability of the Harrison West neighborhood; and
WHEREAS, an amendment to the 2024 Capital Improvement Budget is needed to establish sufficient authority for this project; and
WHEREAS, the transfer and expenditure within the Affordable Housing Bond Fund in an amount up to $2,250,000.00 is authorized; and
WHEREAS, it is necessary to authorize reimbursement of expenses incurred prior to the execution of a purchase order, starting January 1, 2023; now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Development be and is hereby authorized to enter into a grant agreement with the Tivoli Apartments, LLC for the acquisition of property in the Harrison West neighborhood of Columbus in an amount up to $2,250,000.00 and to authorize the reimbursement of expenditures incurred prior to the establishment of a purchase order, beginning January 1, 2023.
SECTION 2. That the 2024 Capital Improvements Budget 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 / P782001-100000 / Housing Preservation (Voted Carryover) / $1,900,000.00/ ($1,900,000.00) / $0.00
7779 / P782030-100000 / Lockbourne Greene (Voted Carryover) / $3,875.00/ ($3,875.00) / $0.00
7779 / P782012-100000 / Affordable Housing (Voted Carryover) / $586,679.00/ ($346,125.00) / $240,554.00
7779 / P782050-100012 / Tivoli Apartments (Voted Carryover) / $0 / $2,250,000.00/ $2,250,000.00
SECTION 3. That the transfer of $2,250,000.00 or so much thereof as may be needed, is hereby authorized within Fund 7779 (Affordable Housing Bond fund), Dept-Div 44-10 (Housing) per the account codes in the attachment to this ordinance.
SECTION 4. That for the purpose as stated in Section 1, the expenditure of $2,250,000.00, or so much thereof as may be necessary, is hereby authorized in fund 7779 (Affordable Housing Bond fund), Project P782050-100012, Dept. 44-10 (Housing), in Object Class 06 (Capital Outlay) per the accounting codes in the attachment to this ordinance.
SECTION 5. 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 6. 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 7. That this contract is awarded pursuant to the relevant provisions of Chapter 329 of City Code relating to the process for awarding grant agreements.
SECTION 8. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.