Explanation
BACKGROUND
This ordinance authorizes the Director of the Department of Development to enter into a grant agreement with CHP Homeport Homes, LLC, for the development of 24 single family affordable homes in the American Addition neighborhood in an amount up to $2,500,000.00. The City’s total commitment to this project is $5,000,000.00 and legislation for the remaining $2,500,000.00 will be submitted at a later date.
The mission of CHP Homeport Homes, LLC is to create strong communities by developing quality, affordable homes on a cornerstone of dignity, security, and opportunity. CHP Homeport Homes, LLC has demonstrated this by their 38-year history of non-profit housing development in Central Ohio. During this time, they have been part of the development, sale, or preservation of more than 4,000 housing units. Within the American Addition neighborhood in particular, CHP Homeport Homes, LLC has developed and sold single family homes utilizing NSP, Bond, and HOME funds from the City of Columbus. They have been a longtime partner of the City of Columbus in developing safe, affordable housing and making it accessible to low-income residents. The homebuyers will be at or below 120% of the area median income and will be required to complete buyer and financial education courses.
The production of 24 single family homes in the American Addition neighborhood will address the need for affordable housing within the City of Columbus for low-to-moderate income families that are at or below 120% of the Area Median Income limits set by HUD. This project will be an addition to the decent, safe and sanitary housing already located within the American Addition neighborhood. This project will be a landmark, that will introduce the first Zero Energy Ready homes in a predominantly African American community. These Zero Energy Ready homes offer a range of long-term benefits for buyers, they are built to rigorous national standards that ensure exceptional energy efficiency, healthier indoor air quality, and long-lasting durability. Since they are designed to be solar-ready, homeowners can further reduce their utility costs over time. Zero Energy Ready homes support environmental sustainability by lowering carbon emissions. For families, these benefits translate into real savings, increased housing stability, and healthier living environments for generations to come.
The American Addition neighborhood is a growing residential community where Homeport has been actively investing in high-quality, affordable homeownership opportunities. Over the years, Homeport has successfully built and sold 40 homes in this development, offering a mix of two-story and ranch-style designs ranging from 1,200 to 1,400 square feet. Each home includes 3 bedrooms, 1.5 to 2 bathrooms, a full basement, and either a 2-car garage or a parking pad. Homes in this phase sold between $116,000 - $125,000, providing accessible, thoughtfully designed living spaces for families. Building on that success, Homeport is now launching the next phase of development with 24 additional homes. The production of these 24 additional single family homes within the American Addition neighborhood will address the need for affordable housing in the City of Columbus for low-to-moderate income families that are at or below 120% of the Area Median Income limits set by HUD. This phase of the project will be an addition to the decent, safe and sanitary housing already located within the American Addition neighborhood. This will be a landmark project, that will introduce the first Zero Energy Ready homes in a predominantly African American community. These Zero Energy Ready homes offer a range of long-term benefits for buyers, they are built to rigorous national standards that ensure exceptional energy efficiency, healthier indoor air quality, and long-lasting durability. Since they are designed to be solar-ready, homeowners can further reduce their utility costs over time. Zero Energy Ready homes support environmental sustainability by lowering carbon emissions. For families, these benefits translate into real savings, increased housing stability, and healthier living environments for generations to come.
The Louis Sway and Eartha Breeze model homes will be built to Zero Energy Ready Home standards, offering the latest in energy-efficient technology and sustainable building practices. The Louis Sway model is a 3- bedroom, 2-bath home with a full basement and a parking pad with a sales price of $239,000.00. The Eartha Breeze is a 3-bedroom, 1.5 bath home with a full basement and parking pad with a sales price of $219,000.00. Each unit will be built to City AWARE standards, and the energy savings features will include high-efficiency HVAC systems, high performance insulation, and energy-efficient windows and doors, ensuring long-term savings and comfort for homeowners.
There will be two phases for this development project and CHP Homeport Homes, LLC is requesting a total of $5,000,000 to fund both phases. Homeport will build the 24 homes utilizing Bond funding and private funding.
EMERGENCY DESIGNATION: Emergency action is requested to meet the project’s timeline and to ensure timely receipt of the grant agreement to allow the developer to close on their construction loan. Without emergency action, new affordable housing would be further delayed from a low-income community in urgent need of it.
FISCAL IMPACT: Funding in the amount of $2,500,000.00 is available in 2025 Capital Improvement Budget, Affordable Housing Bond fund. An amendment to the 2025 Capital Budget is required to establish sufficient budget authority for the project.
CONTRACT COMPLIANCE: the vendor number is 019329 and expired 01/13/2024 the vendor will be compliant prior to the passage of this ordinance.
Title
To amend the 2025 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 CHP Homeport Homes, LLC for development of a 24 single family affordable housing development in an amount up to $2,500,000.00 with a total commitment to the project of $5,000,000.00; to authorize the expenditure of up to $2,500,000.00 from the Affordable Housing Bond Fund; and declare an emergency. ($2,500,000.00)
Body
WHEREAS, the Director of Development seeks to enter into a grant agreement with CHP Homeport Homes, LLC for the development of a 24 single family affordable housing development in an amount up to $2,500,000.00 within the American Addition neighborhood; and
WHEREAS, the City’s total commitment to this project is $5,000,000.00 and legislation for the remaining $2,500,000.00 will be submitted at a later date; and
WHEREAS, CHP Homeport Homes, LLC is an affordable housing developer, focused on increasing the stock of high-quality housing options available to families earning at or below 120% of Area Median Income (AMI) in the American Addition neighborhood; and
WHEREAS, an amendment to the 2025 Capital Improvement Budget is needed to establish sufficient authority for this project; and
WHEREAS, to authorize the transfer and expenditure within the Affordable Housing Bond Fund in an amount up to $2,500,000.00; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development, in that it is immediately necessary that the Director enter into a grant agreement with CHP Homeport Homes, LLC for the development of a 24 single family home affordable housing development to maintain the project schedule and to meet deadlines for this project, all for the immediate preservation of 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 the Department of Development be and is hereby authorized to enter into a grant agreement with CHP Homeport Homes, LLC for the development of a 24 single family affordable housing development in an amount up to $2,500,000.00 with a total commitment to the project of $5,000,000.00.
SECTION 2. That the 2025 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 / P782050-100017/ Lofts on Long (Voted Carryover) /$1,978,000.00/($1,800,000.00)/ $178,000.00
7779 / P782050-100022/ Clover Glen II (Voted Carryover) /$3,000,000.00/($700,000.00)/ $2,300,000.00
7779 / P782050-100020 / American Edition (Voted Carryover) / $0/ $2,500,000.00 / $2,500,000.00
SECTION 3. That the transfer of $2,500,000.00 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 $2,500,000.00, or so much thereof as may be necessary, is hereby authorized in fund 7779 (Affordable Housing Bond fund), Project P782050-100020, 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 the City Auditor is hereby authorized to transfer the unencumbered balance in a project account to the unallocated balance account within the same fund upon receipt of certification by the Director of the Department administering said project that the project has been completed and the monies are no longer required for said project.
SECTION 8. 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 passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.