Explanation
BACKGROUND:
This legislation will allow the Director of the Department of Development to enter into a Housing Development Agreement (HDA) with National Church Residences for The Scarborough affordable senior housing community, which will ultimately be funded with $2,000,000.00 from the 2024 Capital Budget, Affordable Housing Bond. Once funds become available, an ordinance will be brought to Council to authorize a grant agreement. National Church Residences will enter into a grant agreement with the city for the bond funds as a pass-through entity. National Church Residences is the ownership entity of the pass-through entity, Scarborough Senior Housing Limited Partnership.
The Scarborough is a proposed new construction, affordable senior housing community designed to house low-income seniors aged 62+ within Central Ohio. The project consists of eighty-four (84) one and two-bedroom units of new construction in an elevator-served building located on the Near East Side of Columbus. National Church Residences & Trinity Baptist Church with Development Partner, Nix Development Company, have partnered together to build senior housing on the Trinity Baptist campus and serve the seniors who reside there holistically, allowing them to stay home for life.
National Church Residences received for the development costs through the HUD Section 202 Housing for the Elderly program, which will pair with 4% Low Income Housing Tax Credits. The HUD Section 202 Housing for the Elderly award will also include rental subsidy for approximately 45 one-bedroom apartments and will include an on-site Service Coordinator who will be funded out of project rents.
The Scarborough will consist of one building with eighty-four (84) one and two-bedroom apartment units. Each unit has a separate kitchen, bathroom, living area, and bedroom. A percentage of the residential units will be designed to be 100% accessible and will be consistent with Section 504, Uniform Federal Accessibility Standards, Fair Housing and ADAAG. This apartment community also includes dedicated staff office space, commons areas for social and wellness activities.
In addition, National Church Residences will incorporate building design features to enable residents to age in place including but not limited to accessible means of egress/ingress for each unit, 36” door widths, lever handles, and faucets, clear floor space of 30” x 50”, and accessible locations of lighting and environmental controls. The building will also incorporate sustainable design practices and methods in accordance with LEED for Homes standards. Safety features include smoke detectors, fire alarms, and sprinklers in all areas, and security cameras.
National Church Residences is due to close on their HUD loan in September, 2025 which will provide the Section 202 Housing for the Elderly (62 + years of age) funding. Emergency action is requested in order to maintain the project schedule and to avoid delays with the HUD Closing and incurring additional fees from lenders. Without emergency action, new affordable housing would be further delayed from a low-income community in urgent need of it.
Emergency action is requested in order to provide evidence of city funding by the closing date anticipated in September, 2025. The City’s funding commitment is critical for the closing to proceed, as this is this project also includes a loan from HUD, and cannot wait 30 days after legislation passes.
FISCAL IMPACT: No funding is needed.
CONTRACT COMPLIANCE: the vendor number is 032683 and expires August 12, 2026.
Title
To authorize the Director of the Department of Development to enter into a Housing Development Agreement (HDA) with National Church Residences for The Scarborough affordable senior housing community; and to declare an emergency. ($0.00)
Body
WHEREAS, the Director of Development seeks to enter into a Housing Development Agreement (HDA) with National Church Residences for The Scarborough affordable senior housing community; and
WHEREAS, the HDA would memorialize the City’s desired commitment to the project, pending City Council approval and future availability of funds; and
WHEREAS, the Department of Development wishes to support this project by contributing $2,000,000.00 of bond funds upon availability from the 2024 Capital Budget Affordable Housing Bond; and
WHEREAS, this legislation would authorize the Director of Development to first execute the HDA and pending the availability of funding from the 2024 Capital Budget, Affordable Housing Bond, the department will seek City Council’s approval to enter into a grant agreement; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to authorize the Director to enter into a Housing Development Agreement with National Church Residences in order to provide evidence of city funding by the closing date anticipated for late September 2025; the City’s funding commitment is critical for the closing to proceed and cannot wait 30 days after legislation passes, all for the immediate preservation of the public health, peace, property, safety and welfare; 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 a Housing Development Agreement with National Church Residences in an amount up to $2,000,000.00 upon availability of bond funds from the 2024 Capital Budget Affordable Housing Bond in support of the development of The Scarborough, an affordable senior housing community.
SECTION 2. 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.