Explanation
BACKGROUND:
This legislation will allow the Director of the Department of Development to enter into a Housing Development Agreement (HDA) with NRE NFP Inc, also known as Nuveen Real Estate, for the purchase and development of three properties to provide high-quality affordable housing. This HDA will memorialize the City’s desired commitment to the projects, in an amount up to $25,000,000.00, pending City Council approval and future availability of funds. The subsequent grant agreement(s) with the City for the bond funding may be entered into with subsidiary entities.
Nuveen Global Investments LLC (“NGI”) is progressing towards the acquisition of the three properties identified in the Legislation: Sawyer Towers, 620 Norton Road, and Wedgewood Village. Nuveen is advancing these acquisitions as quickly as possible so that the process of developing and preserving high-quality affordable housing can begin in earnest. To move forward with closing on the acquisitions, however, NGI’s investment committee has communicated to the project team that it is highly preferable that the Legislation be adopted prior to acquisition closings, since the acquisitions will require major capital outlays from NGI. The first of these acquisitions, Sawyer Towers, is anticipated to occur in mid-June.
Nuveen Real Estate (“NRE”) is preparing to make a substantial investment in the creation and preservation of much-needed affordable housing in the City of Columbus. This effort will channel over $350 million of investment into Columbus and will create lasting affordability for 1,250 homes. These homes will be reserved for households earning no more than 60% of area median income.
Leveraging funds from the City and numerous other sources, NRE will create over 600 units of modern, high-quality affordable housing on two sites: The site of Sawyer Towers and 620 Norton Road. Not only will these new communities offer industry-leading affordable housing but will also offer a robust suite of amenities and wrap-around social services. Sustainability features will also be at the heart of these developments.
In addition to creating over 600 new units of affordable housing, Nuveen Real Estate will also undertake a major renovation of approximately 650 affordable housing units at Wedgewood Village. Plagued for years by disinvestment, the Wedgewood residents will finally receive the safe, modern, and dignified homes that they deserve. And in the process of doing so, Nuveen Real Estate will ensure that Wedgewood is preserved as housing for low-income Columbus families for decades to come.
Emergency action is requested in order to provide evidence of city funding for the property closing dates. The City’s funding commitment is critical for the closings to proceed and cannot wait 30 days after legislation passes.
FISCAL IMPACT: No funding is needed.
CONTRACT COMPLIANCE: the vendor number is 052645 and expires May 22, 2027.
Title
To authorize the Director of the Department of Development to enter into a Housing Development Agreement (HDA) with NRE NFP Inc. and declare an emergency. ($0.00)
Body
WHEREAS, the Director of Development seeks to enter into a Housing Development Agreement (HDA) with NRE NFP Inc; and
WHEREAS, the HDA would memorialize the City’s desired commitment to the projects, pending City Council approval and future availability of funds; and
WHEREAS, The Department of Development wishes to support this project by contributing $25,000,000.00 of bond funds upon availability from future Capital Budget Affordable Housing Bonds; and
WHEREAS, this legislation would authorize the Director of Development to first execute the HDA and pending the availability of funding from future Capital Budgets, Affordable Housing Bond the department will seek City Council’s approval to enter into a grant agreement; and
WHEREAS, subsequent grant agreement(s) with the City for the bond funding may be entered into with subsidiary entities; 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 of Development to enter into a Housing Development Agreement with NRE NFP Inc in order to provide evidence of city funding for property closings; the City’s funding commitment is critical for the closings to proceed and cannot wait 30 days after legislation passes, 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 Director of the Department of Development is authorized to enter into a Housing Development Agreement (HDA) with NRE NFP Inc.
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 its approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.