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 department had sought authority to appropriate and expend the funds after the grant has been executed. Starting with the 2019 grant, the department has sought 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 amount after the grant amount is known (usually mid-year).
Additionally, the department will use general fund dollars to support the CHDO efforts due to timing constraints regarding the usage of grant funds. These changes are a result of changing accounting procedures for HUD grants.
This legislation authorizes the appropriation and expenditure of $215,000 of HOME funds and 2019 general fund dollars and authorizes the Director of Development to enter into two contracts with the Community Development Collaborative of Greater Columbus (Collaborative) to administer the City’s CHDO operating funds.
Under one contract ($45,000.00), the Collaborative will serve 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.
Under the other contract ($170,000.00), the Collaborative will distribute the funds to eligible CHDOs.
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 2020 HOME Investment & Partnership Grant to be awarded to the City of Columbus by HUD and by 2019 general fund dollars.
Funding of the $45,000.00 contract is as follows: $22,500.00 2019 general fund and $22,500.00 2020 HOME funds.
Funding of the $170,000 contract is as follows: $85,000.00 2019 general fund and $85,000.00 2020 HOME funds.
CONTRACT COMPLIANCE: The vendor’s contract compliance number is 311595197 and expires on 4/26/20.
Title
To authorize the Director of the Department of Development to enter into two contracts with the Community Development Collaborative of Greater Columbus to provide administrative and CHDO operating support; to authorize the appropriation and expenditure of $107,500.00 of 2020 HOME funds; to authorize the expenditure of $107,500.00 from the general fund; 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 2020 Action Plan, per Ordinance 2162-2019, as required by HUD; and
WHEREAS, the City desires to make a portion of the general fund and 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 two contracts with the Community Development Collaborative of Greater Columbus in order to administer the CHDO contracts; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development, Housing Division, in that it is immediately necessary to enter into contract 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 $107,500.00 is appropriated in Fund 2201 (HOME Investment Partnerships Program), Dept-Div 44-10 (Housing), Project G451903, Object Class 03 (Services), per the accounting codes in the attachment to this ordinance.
SECTION 2. That the expenditure of $107,500.00 or so much thereof as may be necessary, is hereby authorized in Fund 2201 (HOME Investment Partnerships Program), Dept-Div 44-10 (Housing), Project G451903, in object class 03 (Contractual Services) per the accounting codes in the attachment to this ordinance.
SECTION 3. The expenditure of $107,500.00 or so much thereof as may be necessary, is hereby authorized in Fund 1000 (General Fund), Dept-Div 44-10 (Housing), in object class 03 (Contractual Services) per the accounting codes in the attachment to this ordinance.
SECTION 4. 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 5. That the Director of the Department of Development is authorized to enter into two contracts 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 and to distribute the City’s CHDO funds.
SECTION 6. 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 7. At the end of the grant period, any repayment of unencumbered balances required by the grantor is hereby authorized and any unused City match monies may be transferred back to the City fund from which they originated in accordance with all applicable grant agreements.
SECTION 8. 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.