Explanation
BACKGROUND: This legislation authorizes the appropriation and expenditure in an amount up to $950,000.00 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 execute a commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant with Artem on Gay, L.P for the Artem on Gay project in an amount up to $950,000.00.
Ohio Community Development Finance Fund is proposing the Artem on Gay project. Artem on Gay is a proposed 71-unit multi-family affordable housing development located at 347 E Gay St. in Downtown Columbus. This project will be comprised of a six-story elevator building with various amenities including: on-site management office, community room, 21 onsite parking spaces, second-floor lounge and deck area, and a first-floor covered patio and more. Offering studio to three-bedroom units targeting households with incomes at 30% to 80% of area median gross income.
Artem on Gay is located adjacent to Vera on Broad, a middle-income development, and The Abigail, a market-rate project, creating a spectrum of affordability within a single block of downtown. This highly desirable location is also near luxury condos, multiple restaurants, coffee shops, a full-service grocery store, and falls within the services of the Discovery District SID. Artem on Gay is within walking distance of three higher education facilities, Grant Hospital, Columbus Museum of Art, major employment and government institutions, and numerous bus lines. Artem on Gay will activate a decades-long underutilized surface parking lot in a growing area while keeping rents highly discounted compared to its market rate neighbors.
This legislation represents appropriation for a part of the HOME portion of the 2023 Action Plan, per Ordinance 3353-2022.
Contract Compliance: the vendor number is 052024 and expires 03/17/2027.
Fiscal Impact: $950,000.00 is available from the 2023 HOME grant (G442202). The commitment of funds through this legislation is conditioned on compliance with HUD’s environmental review requirements. The funding from HOME Fund (2201) is only authorized if all HOME review and comment requirements have been met prior to any commitment of funds, as approved by the Responsible Entity Agency Official. An Authorization to Utilize Grant Funds will be received by the City from HUD in advance of the execution of documents for this project.
Title
This ordinance authorizes the appropriation and expenditure in an amount up to $950,000.00 of 2023 HOME Investment Partnerships Program (HOME) entitlement funds from the U.S. Department of Housing and Urban Development (HUD) and authorizes the Director of the Department of Development execute a commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant with Artem on Gay, L.P for the Artem on Gay project. ($950,000.00)
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 is the recipient of HOME Investment Partnerships funds from the U.S. Department of Housing and Urban Development; and
WHEREAS, the Columbus City Council has approved the 2023 Action Plans, per Ordinance 3353-2022, respectively, as required by HUD; and
WHEREAS, the Director of the Department desires to support the Artem on Gay project with HOME funds, in an amount up to $950,000.00; and
WHEREAS, the appropriation and an expenditure in an amount up to $950,000.00 is necessary; and
WHEREAS, the Director of the Department of Development is authorized to execute a commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant with Artem on Gay, L.P for the Artem on Gay project; and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That from the unappropriated monies 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, 2025, the sum of $950,000.00 is appropriated in Fund 2201 (HOME), from Dept-Div 44-10 (Housing), G442202 (2023 HOME), object class 05 (Other Expenses) per the account codes in the attachment to this ordinance.
SECTION 2. That the expenditure of $950,000.00 or so much thereof as may be needed, is hereby authorized in Fund 2201 (HOME), Dept-Div 4410 (Housing), G442202 (2023 HOME), object class 05 (Other Expenses) per the account codes in the attachment to this ordinance.
SECTION 3. That the Director of Development is hereby authorized to execute a commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant with Artem on Gay, L.P., for the Artem on Gay project in an amount up to $950,000.00.
SECTION 4. That 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 associated with this ordinance.
SECTION 6. That 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 the commitment of funds through this legislation is conditioned on compliance with HUD’s environmental review requirements. The funding from HOME Fund (2201) is only authorized if all HOME review and comment requirements have been met prior to any commitment of funds, as approved by the Responsible Entity Agency Official. An Authorization to Utilize Grant Funds will be received by the City from HUD in advance of the execution of documents for this project.
SECTION 8. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.