Explanation
This ordinance authorizes the appropriation and expenditure of up to $255,266.44 of 2024 U.S. Department of Housing and Urban Development (HUD) HOME Investment Partnerships Program (HOME) program
income and authorizes the Director of the Department of Development to enter into a HOME commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant with individual homebuyers who access the American Dream Downpayment Assistance (ADDI) program.
The City of Columbus provides down payment assistance of HOME funds to first time homebuyers whose household income is at or below 80% AMI for purchase of a home in the City of Columbus or Columbus City School District. The amount of assistance provided is the lesser of 6% of the purchase price or $14,999.00 and is provided as a forgivable loan. The household must remain in the home for a period of five years for the loan to be forgiven.
This funding will assist 17 low-moderate income first-time homebuyers purchase a home in the City of Columbus corporate limits. The agreement will address the need to assist buyer with purchasing affordable housing in the City of Columbus. Additional funds may be encumbered later in 2024 for this program.
This legislation represents a portion of the appropriation for the HOME portion of the Program Year 2024 HUD Annual Action Plan, per Ordinance 2993-2023.
Fiscal Impact: $255,266.44 is available in the 2024 HOME grant (G442302).
Title
To authorize the appropriation and expenditure of up to $255,266.44 from the 2024 HOME Investment Partnerships Program (HOME) grant; and to authorize the Director of the Department of Development to enter into a HOME commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant with individual homebuyers who access the American Dream Downpayment Assistance (ADDI) program. ($255,266.44)
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 2993-2024, as required by HUD; and
WHEREAS, it is necessary to appropriate and expend funds from the 2024 HOME grant for eligible expenses and American Dream Downpayment projects are eligible expense; 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, 2024, the sum of $255,266.44 is appropriated in Fund 2201 (HOME), from Dept-Div 44-10 (Housing), G442302 (2024 HOME), object class 05 (Other Expenses) per the account codes in the attachment to this ordinance.
SECTION 2. That the expenditure of $255,266.44 or so much thereof as may be needed, is hereby authorized in Fund 2201 (HOME), Dept-Div 4410 (Housing), G442302 (2024 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 HOME commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant with individual homebuyers who access the American Dream Downpayment Assistance (ADDI) program in an amount up to $255,266.44.
SECTION 6. 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.
SECTION7. 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 8. 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 9. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.