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
Subcontract with Franklinton Urban Empowerment Lab $56,100
Subcontract with Homes on the Hill CDC $22,100
Subcontract with Gertrude Wood Community Foundation $35,700
Total $215,000
Emergency action is requested to avoid disruptions in program services.
FISCAL IMPACT: Funding for this agreement in the amount of $215,000.00 is supported by the anticipated 2019 HOME Investment & Partnership Grant to be awarded to the City of Columbus by HUD.
Title
To authorize the appropriation and expenditure of $215,000.00 of 2019 HOME funds; to authorize the Director of the Department of Development to enter into a contract with the Community Development Collaborative of Greater Columbus to provide CHDO operating support; and to declare an emergency. ($215,000.00)
Body
WHEREAS, the City of Columbus expects to continue as a participating jurisdiction of the of U.S. Department of Housing and Urban Development; and
WHEREAS, the Columbus City Council has approved the 2019 Action Plan, per Ordinance 2776-2018, as required by HUD; and
WHEREAS, the City desires to make a portion of the HOME funds available to Community Housing Development Organizations (CHDOs) to pay a portion of their operating costs to stimulate the development of affordable housing for low income households in their neighborhoods; and
WHEREAS, support for CHDOs can foster the revitalization of Columbus neighborhoods; and
WHEREAS, the City desires to enter into a contract with the Community Development Collaborative of Greater Columbus in order to administer the CHDO contracts; and
WHEREAS, emergency action is required to avoid disruptions in program services; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development, Housing Division, in that it is immediately necessary to authorize the Director to enter into contract with the Community Development Collaborative of Greater Columbus to allow for continuation of services without interruption, thereby preserving 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 from the unappropriated monies in Fund 2201 (HOME Investment Partnerships Program) and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the grant period, the sum of $215,000 is appropriated upon receipt of an executed grant agreement in Fund 2201 (HOME Investment Partnerships Program), Dept-Div 44-10 (Housing), Project G451901, Object Class 03 (Services), per the accounting codes in the attachment to this ordinance.
SECTION 2. The expenditure of $215,000 or so much thereof as may be necessary, is hereby authorized in Fund 2201 (HOME Investment Partnerships Program), Dept-Div 44-10 (Housing), Project G451901, in object class 03 (Contractual Services) per the account codes in the attachment to this ordinance.
SECTION 3. That the 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 4. That the Director of the Department of Development is authorized to enter into a contract with the Community Development Collaborative of Greater Columbus to serve in the role as a funding intermediary, facilitator of training, and builder of organizational capacity for Community Housing Development Organizations (CHDOs).
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, for the reasons stated in the Preamble hereto, which is hereby made a part hereof, this ordinance is hereby delcared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.