Explanation
Background: This legislation authorizes the Director of the Department of Development to enter into a contract with Mid-Ohio Regional Planning Commission (MORPC) to provide HUD Certified homebuyer education. In response to the housing mortgage crisis, the city of Columbus has been awarded $23,200,773 of Neighborhood Stabilization Program 2 (NSP2) grant funds from the U.S. Department of Housing and Urban Development (HUD). The funds will provide for the purchase of foreclosed or abandoned properties, and the redevelopment, rehabilitation or demolition of these properties in order to stabilize neighborhoods and stem the decline of house values of neighboring homes.
This legislation will implement the Homebuyer Education portion of NSP2 which requires all NSP2 homebuyers to complete HUD Certified homebuyer education prior to buying an NSP2 funded home. The Mid-Ohio Regional Planning Commission (MORPC) is one of four HUD-certified homebuyer education receiving NSP2 funds for homebuyer education. The other agencies include Columbus Housing Partnership, Columbus Urban League, and Homes on the Hill CDC.
Emergency action is requested to begin homebuyer education classes as soon as possible and in order to meet HUD's regulations for implementing the NSP2 within the designated time period required by the grant agreement.
Fiscal Impact: This legislation authorizes the expenditure of $80,659 in General Government Grant funds within the Department of Development. The Department's 2010 NSP2 budget includes funds for homebuyer education.
Title
To authorize the Director of the Department of Development to enter into a contract with Mid-Ohio Regional Planning Commission (MORPC) for the provision of homebuyer education services; to authorize the expenditure of $80,659 from the General Government Grant Fund; and to declare an emergency. ($80,659.00)
Body
WHEREAS, the Director of the Department of Development desires to enter into contract with the Mid-Ohio Regional Planning Commission (MORPC) for the provision of HUD Certified homebuyer education services; and
WHEREAS, the City's NSP2 application specified the expenditure of funds to redevelop properties through renovation and new construction that meet the program's requirements as established in Title III of the Housing and Economic Recovery Act of 2008; and
WHEREAS, the Mid-Ohio Regional Planning Commission is a non-profit organization with the capacity to provide HUD Certified homebuyer education; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development, Housing Division, in that it is immediately necessary to enter into a contract with Mid-Ohio Regional Planning Commission in order to implement the NSP2 program in a timely manner as required by the grant agreement with HUD, all for the preservation of the public peace, health, safety, and welfare; and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of the Department of Development is hereby authorized to enter into contract with the Mid-Ohio Regional Planning Commission for the purpose of providing HUD Certified homebuyer education.
Section 2. That for the purpose as stated in Section 1, the expenditure of $80,659 or so much thereof as may be necessary, is hereby authorized from the Department of Development, Housing Division, Department No. 44-10, Fund No. 220, Grant 451036, Object Level One 03, Object Level Three 3336, OCA 441040.
Section 3. That expenditure of funds from this authorization will be in accordance with U.S. Department of Housing and Urban Development Regulations for the Neighborhood Stabilization Program as established under 2 as established under the American Recovery and Reinvestment Act of 2009 (ARRA).
Section 4. 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 passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.