Explanation
BACKGROUND: This legislation authorizes the unplanned modification of a HOME Investment Partnerships loan package with Homes on the Hill CDC, in an amount up to $5,650.00 of the 2023 HOME Investment Partnerships Program (HOME) entitlement grant funds from the U.S. Department of Housing and Urban Development (HUD) and authorizes the Director of the Department of Development enter an amended and restated commitment letter, loan agreement, promissory note, mortgage, restrictive covenant, associated with the development at 120 N. Eureka Ave.
Original Agreement $ 270,201.00 Ord. 1564-2024
Modification No. 1 $ 21,126.00 Ord. 0744-2025 PO521781
Modification No. 2 $ 5,650.00
Total $ 296,977.00
Ordinance 1564-2024, approved by City Council on July 5, 2024, authorized the Director of Development to support the development of the single housing unit at 120 N. Eureka Avenue in an amount of up to $270,201.00. Prior to the execution of the loan package, it was determined that additional funding would be needed within this project due to the post construction appraisal was valued higher than anticipated and created a larger affordability gap in and resulted in Ordinance 0744-2025 to be necessary and was approved by City Council on April 11, 2025. This legislation represents an additional request for funding in amount up to $5,650.00 for the construction of a sidewalk that was not included in the original budget submitted by the developer and contractor but has since been required by the City in order to finalize the project.
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 Hilltop Neighborhood, located in the Greater Hilltop Area 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.
We are funding this project with the Homes on the Hill Community Development Corporation, who is a Community Housing Development Organization (CHDO) in partnership with the City of Columbus. Homes on the Hill will use HOME CHDO set-aside funds to develop the 120 N. Eureka Avenue project on land purchased from the Land Bank.
Homes on the Hill Community Development Organization was founded in 1993 with the mission to be the exemplary housing counseling and development organization in Central Ohio.
With the construction of a new, single-family home at 120 N. Eureka Avenue, the Homes on the Hill Community Development Organization is investing in and providing affordable housing to the Hilltop neighborhood. The two-story, single family home will consist of three bedrooms, two and a half bathrooms, a basement, 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 2023 Action Plan per ordinance 3353-2022.
Emergency Designation: An emergency exists as this unplanned modification is the result of the developer and contractor missing a sidewalk on a portion of this property that the City required in the initial approved plans for this development therefore there is a funding gap. Delaying the additional funding will result in the future homeowner being able to close on their home as well as possibly causing an undue hardship upon them with financing.
Contract Compliance: the vendor number is 005144 and expires 08/01/2026
Fiscal Impact: $5,650.00 is available within the 2023 HOME grant (G442202)
Title
To authorize the Director of the Department of Development to enter into an unplanned modification of the HOME loan package with Homes on the Hill CDC; to authorize the additional expenditure in an amount up to $5,650.00 of 2023 HOME Investment Partnerships Program (HOME) entitlement grant funds from the U.S. Department of Housing and Urban Development; and to authorize the Director of the Department of Development to enter into an amended and revised commitment letter, loan agreement, promissory note, mortgage, restrictive covenant, with the Homes on the Hill CDC to construct a single family home; and declare emergency. ($5,650.00)
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
WHEREAS, the Department of Development desires to support the Homes on the Hill CDC with financial support for a single family home at 120 N Eureka Avenue; and
WHEREAS, the post construction appraisal created a larger gap in affordability where additional funding was needed for this project in an amount up to $10,401.00 bringing the overall total for this project to be in an amount up to $291,327.00 and was authorized by ordinances 1564-2024 and 0744-2025 ; and
WHEREAS, during the inspection of the property it was discovered that a sidewalk was not included within the original budget by the developer and contractor, and it is needed for this project to pass inspection and will add and additional cost to the project in an amount up to $5,650.00 bringing the overall total to be in an amount up to $296,327.00; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that this home is ready to be available for the new homebuyer however the site will not pass inspection due to the missing sidewalk. The developer and contractor missed this within their original budget, and it is a required element by the City. The delay in further funding this development and the final inspection of the home will delay the homeowner from being able to close and could possibly impact their financing. Thereby allowing this as an emergency prevents any undue hardships on the future homeowner thereby preserving 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 Director of Development is hereby authorized to modify an Home Loan package and execute an amended and restated commitment letter, loan agreement, promissory note, mortgage, and restrictive convent executed for this project with Homes on the Hill CDC to for the single family home development located at 120 N. Eureka Avenue in a total amount for this project in an amount up to $296,327.00.
SECTION 2. That the additional expenditure in an amount up to $5,650.00 or so much thereof as may be needed, is hereby authorized within Fund 2201 (HOME), from Dept-Div 44-10 (Housing), G442202 (2023 HOME grant), 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 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.