Explanation
BACKGROUND
This legislation authorizes the Director of the Department of Development to modify (Modification No. 1) a not-for-profit service contract with the Tony R. Wells Foundation, authorized by Ordinance 0645-2025 and passed March 24, 2025, in an amount up to $535,000.00 for the purpose of acting as fiscal manager of the American Dream Downpayment Initiative (ADDI) program. Funding will be advanced on a predetermined schedule.
Original Contract $321,000.00 Ord. 0645-2025 PO501705 Exp.12/31/25
Modification No. 1 $535,000.00
Total contract amount $856,000.00
The Housing Division adapted the ADDI program to use non-federal funds for the purpose of down payment assistance for homebuyers not in the Homeownership Development program. The funding will increase accessibility of the program to applicants up to 120% AMI and reduced the time to compile and review a file as specific HUD related required documents will not be required for this source of funds.
In 2024, the ADDI program supported 44 first-time homebuyers with down payment assistance to purchase their first home. As of June 2025, 37 additional applicants have been approved and have successfully closed on homes. An additional 13 applications are currently in process and are expected to close by the end of July. The additional funding will enable the ADDI program to continue supporting Columbus residents in purchasing new homes within the city limits.
The Wells Foundation, a non-profit organization, will act as a fiscal manager for the program. The additional funding provided by this modification will allocate $500,000.00 for downpayment assistance for low, moderate and middle income homebuyers and $35,000.00 (at 7% of the funds distributed) for administrative costs for the Wells Foundation. The contract is awarded in accordance with the relevant provisions of City Code Chapter 329 relating to not-for-profit service contracts. The funds will all be provided to the Wells Foundat...
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