Explanation
Background: This ordinance authorizes the expenditure of $6,882,700.00 of Neighborhood Stabilization Program 2 (NSP2) funds for the Department of Development. Funds will be invested in eligible NSP2 activities including acquisition, rehabilitation, redevelopment and demolition of foreclosed, abandoned and vacant properties in order to stabilize neighborhoods and stem the decline of housing values. Prior ordinance 0800-2010 appropriated $11,117,773.00 in various divisions and object levels of the General Government Grant Fund to provide funding for approved programs.
The City of Columbus has been awarded $23,200,773.00 of NSP2 grant funds under the American Reinvestment and Recovery Act of 2009 (Public Law 111-005) (Recovery Act) from the U.S. Department of Housing and Urban Development (HUD). Prior ordinance 0156-2010 authorized the Director of the Department of Development to enter into consortium funding agreements with members of the NSP2 Consortium and the appropriation and expenditure of $12,083,000.00.
The City of Columbus is the Lead Applicant of the NSP 2 Consortium working together to achieve a common goal: Creating vital, healthy neighborhoods by implementing strategies that build a stronger housing real-estate market in weak-market areas of Columbus and Franklin County. Members of the NSP2 Consortium include: The City of Columbus, Franklin County, Affordable Housing Trust of Columbus and Franklin County, Campus Partners, Columbus Housing Partnership, Community Development Collaborative of Greater Columbus, and Habitat for Humanity of Greater Columbus.
This legislation is presented as an emergency for the effective implementation of 2010 NSP2 activities to address the current vacant property crisis in our city.
Fiscal Impact: This legislation totals $6,882,700 for the 2010 NSP2 programs. Costs will be reimbursed to the city by HUD as expended.
Title
To authorize the expenditure of $6,882,700.00 from the General Government Grant Fund to provide funding for various approved activities within the Neighborhood Stabilization Program 2; and to declare an emergency ($6,882,700.00).
Body
WHEREAS, the city of Columbus has been awarded $23,200,773.00 from the U.S. Department of Housing and Urban Development for the implementation of the Neighborhood Stabilization Program to address the current vacant property crisis; and
WHEREAS, funds will be invested in eligible NSP2 activities including acquisition, rehabilitation, redevelopment and demolition of foreclosed, abandoned and vacant properties in order to stabilize neighborhoods and stem the decline of housing values; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development, in that it is immediately necessary to authorize the expenditure of the aforementioned funds to address the current vacant property crisis in our city, thereby preserving 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 Development Director, or his designee, is authorized assist for-profit and non-profit developers with grants and no or low interest loans for projects designed to reduce the number of vacant and abandoned properties, and to increase and preserve the local supply of decent, safe, sanitary, and affordable housing for low, moderate and middle income families.
Section 2. That the Development Director, or his designee, is hereby authorized to execute any and all documents necessary for conveyance of title in order to acquire properties and dispose of properties acquired under the Neighborhood Stabilization Program 2.
Section 3. That for the purpose as stated in Section 1, the expenditure of $6,882,700 or so much thereof as may be necessary, is hereby authorized from the Department of Development, General Government Grant Fund, Fund 220, Grant 451036 as follows:
Division / Program / Object Level One / Object Level Three / OCA / Amount
44-10 / NSP2 120% AMI Fund / 05 / 5528 / 441043 / $3,932,500
44-10 / NSP2 50% AMI Fund / 05 / 5528 / 441052 / $950,200
44-10 / Permanent Supportive Housing / 05 / 5528 / 441046 / $1,000,000
44-01 / Land Bank Acquisitions / 06 / 6601 / 441049 / $1,000,000
Total $6,882,700.00
Section 4. 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 2 as established under as established under the American Recovery and Reinvestment Act of 2009 (ARRA).
Section 5. 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.