Explanation
BACKGROUND: This legislation authorizes the appropriation and expenditure of up to $30,000.00 of 2023 HOME Investment Partnerships Program (HOME) grant funds from the U.S. Department of Housing and Urban Development (HUD) and authorizes the Director of the Department of Development to enter into a Subaward Not-for-Profit Service contract with the Community Development Collaborative of Greater Columbus (Collaborative) in an amount up to $200,000.00 ($170,000.00 from Ordinance 3345-2022 and $30,000.00 from this ordinance) to administer the distribution of funds for operating costs and monitor CHDO activities on behalf of the City.
The city is a participating jurisdiction receiving federal funds under the HOME Investment Partnerships Program (HOME) of the U.S. Department of Housing and Urban Development (HUD). The regulations of the program provide that up to five percent of the annual allocation may be granted to Community Housing Development Organizations (CHDOs) to pay operating costs of the agencies. CHDO’s are non-profit organizations that work in neighborhoods to develop affordable housing through rehabilitation of existing housing stock and new in-fill construction.
Ordinance 3345-2022, approved by City Council on December 12, 2022, authorized the Director of the Department of Development to enter into Subaward Not-for-Profit Service Contracts with Community Development Collaborative of Greater Columbus (Collaborative) in an amount up to $215,000.00. Of this $215,000.00 two contacts were to be established. The first Subaward Not-for-Profit Service Contract was to be in the amount of $45,000.00 where the Collaborative would serve in the role as a funding intermediary, facilitator of training, and builder of organizational capacity. These funds leverage additional public and private funding for operating support of CHDO’s. The City and the Collaborative have collectively developed a process for distribution of the funds to eligible CHDO’s, and as such the Collaborative will distribute the funds for operating costs and monitor CHDO activity on behalf of the City. The second Subaward Not-for-Profit Service Contract with Community Development Collaborative was to be in an amount up to $170,000.00 for the distribution of funds for operating costs and to monitor CHDO activities on behalf of the City.
Historically, the City’s CHDO operating budget has been greater than $170,000.00 annually and the department has sought authority to appropriate and expend the funds after the HOME grant has been executed.
The amount of the additional funds to be expended under the modification is $30,000.00.
The need for additional goods or services could not be foreseen at the time the contract was initially awarded was because the requirements of the grant program mandate that an organization cannot receive more than 50% of its total operating budget from the operating grant program. We are able to offer one organization (Gertrude Wood Community Foundation) additional funding because it was able to meet its 50% match requirement.
It is in the city's best interests to not have the additional contract requirements awarded through other procurement processes specified in CCC 329 because this program is limited to organizations that qualify as Community Housing Development Organizations (see 42 USC Ch. 130, Subchapter II, part B, Section 12771 and 24 CFR 92.300 and 92.208). The Community Development Collaborative did do a procurement process and Gertrude Wood Community Foundation was deemed eligible and awarded funding. What is being done here is to increase the funding based on the organization meeting a larger match requirement.
The modification price was determined by 24 CFR 92.300 (f) which limits the award to 50% of operating costs or $50,000 whichever is less.
This legislation represents appropriation for a part of the HOME portion of the 2023 HUD Annual Action Plan, per ordinance 3353-2022.
Emergency action is needed to avoid disruption in program services as they relate to the housing crisis assuring that the CHDO’s operations of the organizations are not harmed or interrupted.
FISCAL IMPACT: Funding for this modification is available within the 2023 HOME Investment & Partnership Grant (G442202).
CONTRACT COMPLIANCE: the vendor number is 005635 and expires 03/15/2025.
Title
To authorize the appropriation and expenditure of up to $30,000.00 of 2023 HOME grant funds; to authorize the Director of the Department of Development to modify the Subaward Not-for-Profit Service contract with the Community Development Collaborative of Greater Columbus to provide CHDO operating support; and to declare an emergency. ($30,000.00)
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 has approved the 2023 Annual Action Plan, per Ordinance 3353-2022, as required by HUD; and
WHEREAS, the city has a need to modify the Subaward Not-for-Profit Service contract with Community Development Collaborative of Greater Columbus to increase funding by $30,000.00 to provide continued CHDO operating support; 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 modify a Subaward Not-for-Profit Service Contract to avoid disruption in the program services as they relate to the housing crisis assuring that the CHDO's operations of the organizations are not harmed or interrupted by providing continued operating support, 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 modify and enter into a Subaward Not-for-Profit Service contract with Community Development Collaborative of Greater Columbus to increase funding in an amount up to $200,000.00 ($170,000.00 from Ordinance 3345-2022 and $30,000.00 from this ordinance) to continue to provide CHDO operating support.
SECTION 2. That from the unappropriated monies in Fund 2201 (HOME Investment Partnerships Program) 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, 2023, the sum of $30,000.00 is appropriated within Fund 2201 (HOME Investment Partnership Program), Dept-Div 44-10 (Housing), Project G442202 (2023 HOME grant), Object Class 03 (Services), per the accounting codes in the attachment to this ordinance.
SECTION 3. That the expenditure of up to $30,000.00 or so much there of as may be necessary, is hereby authorized per the accounting codes in the attachment to this ordinance.
SECTION 4. 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 5. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications with this ordinance.
SECTION 6. 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 7. 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.