Explanation
BACKGROUND: The City is a participating jurisdiction receiving federal funds under the HOME Investment Partnerships Program (HOME) of the U.S. Department of Housing and Urban Development (HUD). The regulations of the program provide that up to five percent of the annual allocation may be granted to Community Housing Development Organizations (CHDOs) to pay operating costs of the agencies. CHDOs are nonprofit organizations that work in neighborhoods to develop affordable housing through rehabilitation of existing housing stock and new in-fill construction.
Historically, the City’s CHDO operating budget has been greater than $170,000 annually (the amount fluctuates each year) and the City has sought authority to appropriate and expend the funds after the grant has been executed. Starting with the 2019 grant, the department seeks approval to appropriate and expend a portion of the grant before the grant agreement is executed and then execute a planned, contract modification for the remaining fund amount after the grant amount is known (usually mid-year). This change is a result of changing accounting procedures for HUD grants.
This legislation authorizes the appropriation and expenditure of $215,000 of HOME Funds and authorizes the Director of Development to enter into contract with the Community Development Collaborative of Greater Columbus (Collaborative) to administer the City’s CHDO operating funds. The Collaborative serves in the role as a funding intermediary, facilitator of training, and builder of organizational capacity. These funds leverage additional public and private funds for operating support of CHDOs. The City and the Collaborative have collectively developed a process for distribution of the funds.
The contract with the Collaborative will be for $215,000, broken down as follows:
Collaborative, for administering the City’s CHDO operating funds $45,000
Subcontract with Contract with Community Development for all People $56,100
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