Explanation
BACKGROUND: The City received HOME Investment Partnerships Program (HOME) funds from the United States Department of Housing and Urban Development (“HUD”). During a reconciliation effort it was determined that there were still funds available to draw within the 2016 Grant (G451600) that is set to expire September 30, 2024. In order to utilize this funding on a project an updated environmental review needed to be conducted and authorized by HUD. HUD authorized the updated funding source with the environmental review for the Poplar Fen Place Project which was originally authorized via ordinance numbers 0951-2023 and 2400-2023.
This ordinance will authorize the Director of Finance and Management to initiate a transaction to correct the funding of the Poplar Fen Place project which was funded with various grant years of HOME Investment Partnership Program (HOME) funding. The returning of previously drawn funds in an amount up to $106,721.57 from the 2022 G442102 HOME grant will allow the City to then do a corrected draw utilizing the 2016 HOME Grant G451600 funds which are set to expire and be returned to the Federal Government. The returning of the 2022 funding does not mean that the City loses that funding it simply is a returning of those funds and it will allow those returned funds to be drawn/utilized on another project at a later date. The City will correctly request funding from HUD for reimbursement for eligible expenditures from the 2016 HOME Grant G451600.
FISCAL IMPACT: This ordinance authorizes the expenditure of funds via a correction within the 2016 HOME Grant G451600 to utilize this old funding that is set to expire and would be subsequently returned to the Federal Government, and also authorizes the return of previously drawn funds in an amount up to $106,721.57 within G442102 the 2022 HOME Grant via wire transfer which will be able to be used at a later date on another project.
EMERGENCY DESIGNATION: Emergency action is requested to allow the financial transaction to be processed as soon as possible and to mitigate risk of potentially losing the older funding from the 2016 HOME Grant which would take away from a future project that could use the 2022 funding.
Title
To authorize the Director of Finance and Management to initiate a transaction to correct the funding for the HOME Investment Partnerships Program funded by the U.S. Department of Housing and Urban Development (HUD) in the amount of $106,721.57 to allow funds to be drawn from an earlier grant funding source that is set to expire; to authorize the expenditure corrections within the HOME Program Entitlement Fund; to authorize the expenditure for the return of funds in the amount of $106,721.57 from G442102; and to declare an emergency. ($106,721.57)
Body
WHEREAS, the City received funds from the United States Department of Housing and Community Development (“HUD”) for the HOME Investment Partnerships Program; and
WHEREAS, expenditures occurred and funds were drawn from HUD to reimburse the City from the 2022 grant year’s funding source, this ordinance is to correct and utilize the older funding from the 2016 HOME Grant that is set to expire. HUD requires a returning of the previously drawn funds via wire transfer before the City can draw from the older funding source; and
WHEREAS, internal City review identified unused 2016 HOME grant dollars were still available and set to expire. HUD approved an updated environmental review that would allow utilizing 2016, 2021, and 2022 HOME grant funding for the Poplar Fen Place Project; and
WHEREAS, the City is required to return those funds that were drawn from the 2022 funding source from HUD to then subsequently draw from the 2016 Home Grant funds; and
WHEREAS, HUD’s Instructions for Returning Funds to the Line of Credit and to U.S. Treasury guidance requires reimbursements to the HOME funds line of Credit to be made via wire transfer; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Finance and Management in that it is immediately necessary to authorize the Director to return $106,721.57 to U.S. Department of Housing and Urban Development (HUD) to mitigate risk of losing the older funds due to the expiration of the grant and to be able to use the 2022 funding for another HOME project 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 Director of the Department of Finance and Management is hereby authorized to initiate a transaction in the amount of $106,721.57 to return funds to U.S. Department of Housing and Urban Development (HUD) and then authorize the correction within our financial system to draw from the 2016 HOME Grant.
SECTION 2. That for the purpose stated in Section 1, the expenditure of $106,721.57 is hereby authorized in Fund 2201, per the accounting codes in the attachment to this ordinance.
SECTION 3. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated and the City Auditor shall establish such accounting codes as necessary.
SECTION 4. That the City Auditor is authorized to make any accounting changes to revise the funding source for all modifications associated with this ordinance.
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 passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.