Explanation
BACKGROUND: This ordinance authorizes the appropriation and expenditure of $605,286.60 of the 2019 HOME CHDO Set-a-Side monies and $595,225.45 of 2020 HOME CHDO Set-a-Side monies within the HOME Investment Partnerships Program and to authorize the Director of the Department of Development to enter into contract with the Franklinton Development Association for the Town Square Station project in an amount up to $1,300,000.00.
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). Fifteen percent of the HOME fund allocation each year is set aside for Community Housing Development Organizations (CHDOs). The regulations of the program provide that funds may be used to assist first time homebuyers, for-profit and non-profit organizations with grants and no or low interest loans for projects designed to increase and preserve the local supply of decent, safe, sanitary, and affordable housing for low and moderate income families. This legislation represents appropriation for the HOME portion of the 2020 Action Plan, per Ordinance 2162-2019.
Town Square Station is a 10 unit, new construction rental development located at 931-937 W. Town Street, 202-204 Hawkes Avenue, and 936 W. Rich Street. The majority of the site is currently owned by the City Land Bank. Prior to development, the site will be conveyed to the Central Ohio Community Land Trust with the improvements being owned by Franklinton Development Association as affordable rental property. All units will be affordable to households at or below 50% of the area median income.
The estimated project cost is $2,135,000.00 and the City is contributing a total of $1,300,000.00 of HOME funds to this project. Project funding is also coming from OHFA’s Housing Development Gap Financing program in an amount of $500,000.00 and the developer will receive a loan from the Affordable Housing Trust of Columbus and Franklin County for $280,000.00.
Emergency legislation is requested in order to meet the developer’s project schedule.
FISCAL IMPACT: Funding for this agreement will come from three different years of HOME CHDO Set-a-Side funds, of which funds are already appropriated for one year (2018), but appropriation is needed for the other two (2019 and 2020):
• 2018 $ 99,487.95 funded from ACPO005097, Ord. 2014-2018
• 2019 $ 605,286.60 to be appropriated with this ordinance
• 2020 $ 595,225.45 to be appropriated with this ordinance
$1,300,000.00 total contribution
$1,200,512.05 to be appropriated in this ordinance
2019 funding is currently available to be appropriated as the City has received the grant agreement from HUD. 2020 funding is currently not available for this project as it is not a ‘pre-award cost’ and the City has not yet received the grant agreement from HUD. The department is requesting legislation approval before Council break in August in the event that the grant agreement is received during Council break. This would allow the department to execute this agreement after the agreement from HUD is received. It is understood by the department that the ACPO for the appropriation will be held until the Auditor’s Office receives a copy of the 2020 HOME grant agreement.
CONTRACT COMPLIANCE: The vendor’s number is 005222 and expires 4/9/21.
Title
To authorize the appropriation and expenditure of $605,286.60 of the 2019 HOME Investment Partnerships Program, CHDO Set-a-Side from the U.S. Department of Housing and Urban Development; to authorize the appropriation and expenditure of $595,225.45 of the 2020 HOME Investment Partnerships Program, CHDO Set-a-Side from the U.S. Department of Housing and Urban Development; to authorize the Director of Development to enter into contract with Franklinton Development Association for the Town Square Station project in an amount up to $1,300,000.00, including $99,487.95 from an existing Auditor’s Certificate; and to declare an emergency. ($1,200,512.05)
Body
WHEREAS, the City of Columbus is and expects to continue as a participating jurisdiction of the U.S. Department of Housing and Urban Development for 2020; and
WHEREAS, the City is the recipient of HOME Investment Partnerships Program Grant funds from HUD; and
WHEREAS, it is necessary to appropriate and expend funds from the unappropriated balance of the 2019 and 2020 HOME grants, CHDO Set-a-Side; and
WHEREAS, the Director of Development desires to enter into contract with the Franklinton Development Association for the Town Square Station project as an affordable rental property where all units will be affordable to households at or below 50% of the area median income; and
WHEREAS, these programs have effectively and efficiently enabled our community to fund projects designed to increase and preserve the local supply of decent, safe, sanitary, and affordable housing for low and moderate income families.
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to authorize the Director to enter into contract with Franklinton Development Association in order to meet the developer’s project schedule, all for the preservation of 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 and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the fiscal year ending December 31, 2020, the sum of $605,286.60 is appropriated in Fund 2201 (HOME Investment Partnerships Program), Dept-Div 44-10 (Housing), Project G451901, in Object Class 05 (Other Expenses) per the accounting codes in the attachment to this ordinance.
SECTION 2. That the expenditure of $605,286.60 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 05 (Other Expenses) per the accounting codes in the attachment to this ordinance.
SECTION 3. 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 $595,225.45 is appropriated upon receipt of an executed grant agreement in Fund 2201 (HOME Investment Partnerships Program), Dept-Div 44-10 (Housing), Project G451903, in Object Class 05 (Other Expenses) per the accounting codes in the attachment to this ordinance
SECTION 4. That the expenditure of $595,225.45 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 05 (Other Expenses) per the accounting codes in the attachment to this ordinance upon receipt of an executed grant agreement.
SECTION 5. 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 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. That the Director of the Department of Development is hereby authorized to enter into a contract with the Franklinton Development Association for the Town Square Station project in an amount up to $1,300,000.00 with funding in the amount of $99,487.95 from ACPO005097 and $1,200,512.05 appropriated in this ordinance.
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.