Explanation
BACKGROUND: This legislation authorizes the expenditure in an amount up to $279,500.00 of the 2024 HOME Investment Partnerships Program (HOME) entitlement grant funds from the U.S. Department of Housing and Urban Development (HUD) and also authorizes the Director of the Department of Development enter into a commitment letter, loan agreement, promissory note, mortgage, restrictive covenant, and authorizes the city to act as a lender for this project with the Gertrude Wood Community Foundation. The project is to develop and construct a single housing unit at 955 Miller Avenue that was recently purchased from the City of Columbus Land Bank.
The funding of this project will address the need for affordable housing in the City of Columbus for low-income families that are at or below 80% of the Area Median Income limits set by HUD. This project will add decent, safe and sanitary housing to the Near Southside/Livingston Avenue Neighborhood, located on the Southside of Columbus. The increased availability of safe and stable housing in Columbus promotes the health and well-being of the neighborhood and the citizens living in the neighborhood and surrounding areas.
We are funding this project with the Gertrude Wood Community Foundation, who is a Community Housing Development Organization (CHDO) in partnership with the City of Columbus. Gertrude Wood Community Foundation will use HOME CHDO set-a-side and entitlement funds to develop the 955 Miller Avenue project on land purchased from the Land Bank.
Gertrude Wood Community Foundation was founded in 2005 with the mission to empower the Driving Park area by bringing new housing opportunities to the neighborhood, as well as other supportive services that promote a safer and healthier neighborhood for the residents.
With the construction of a new, single-family home at 955 Miller Avenue, the Gertrude Wood Community Foundation is investing in and providing affordable housing to the Near Southside neighborhood. The single-family home will consist of three bedrooms, two bathrooms, and a garage, and will be built to City AWARE standards. The home will be sold to a first-time homebuyer earning at or below 80% of the Area Median Income as defined by HUD.
This legislation represents appropriation for a part of the HOME portion of the 2024 Action Plan per ordinance 2993-2023.
Contract Compliance: the vendor number is 008062 and expires 8/25/2027.
Fiscal Impact: $279,500.00 is available from the 2024 HOME grant (G442302) funds.
Title
To authorize the expenditure of up to $279,500.00 of HOME Investment Partnerships Program (HOME) entitlement 2024 grant funds from the U.S. Department of Housing and Urban Development; to authorize the Director of the Department of Development to enter into a commitment letter, loan agreement, promissory note, mortgage, restrictive covenant; and to authorize the City, through the Department of Development, to act as a lender for this project with the Gertrude Wood Community Foundation to construct a single family home located at 955 Miller Avenue. ($279,500.00)
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 2024 Action Plan per ordinance 2993-2023; and
WHEREAS, the expenditure in an amount up to $279,500.00 is needed; and
WHEREAS, it has become necessary in the usual and daily operation of the Department of Development to authorize the Director enter into a commitment letter, loan agreement, promissory note, mortgage, restrictive covenant, and authorizes the city to act as a lender for this project with the Gertrude Wood Community Foundation to construct a single family home located at 955 Miller Avenue; 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 and loan agreement, promissory note, mortgage, restrictive covenant, and authorizes the city to act as a lender for this project with the Gertrude Wood Community Foundation to construct a single family home located at 955 Miller Avenue in a total amount up to $279,500.00.
SECTION 2. That the expenditure in an amount up to $279,500.00 or so much thereof as may be needed, is hereby authorized in Fund 2201 (HOME), from Dept-Div 44-10 (Housing), G442302 (2024 HOME grant), object class 05 (Other Expenses) per the account codes in the attachment to this ordinance.
SECTION 4. 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 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. That 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. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.