Explanation
BACKGROUND: This ordinance authorizes the appropriation and expenditure of up to $400,000.00 of the 2020 HOME Investment Partnerships Program (HOME) entitlement grant from the U.S. Department of Housing and Urban Development and to enter into a commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant with Gates Junction Senior Housing Limited Partnership for the Gates Junction Senior Housing project.
Gates Junction Senior Housing is a FHAct50 Building Opportunity Fund recipient of LIHTC with Ohio Housing Finance Agency. The lead entity in the project is the National Church Residences in partnership with Finance Fund and Model Group. The FHAct50 Building Opportunity fund provides access to a pool of $3 million in low income housing tax credits to further the creation of diverse and accessible communities within the boundaries of a Target Area Plan (TAP) identified by the City of Columbus. The approved TAP selected by the City is Franklinton on the west side of Columbus.
Gates Junction Senior Housing will be new construction of a sixty (60) unit building rental project to be located at 1137 West Broad Street. The current building is to be demolished and the new building will have a certified address of 1131 West Broad Street. The project consists of new construction of a 60 unit building with fifty (50) one-bedroom units and ten (10) two-bedroom units targeting senior households with a member age 55 or older.
The HOME assisted units in the project will be occupied by and affordable to senior households at or below 50% of the area median income. National Church Residences has also committed units that will be affordable at 30% of the area median income. There will be at least two HOME-assisted unit in the project.
This legislation represents appropriation for the HOME portion of the 2020 Action Plan, per Ordinance 2162-2019.
Emergency action is requested to allow for the developer to maintain the project schedule.
Contract Compliance: the vendor number is 033550 and expires 9/30/22.
Fiscal Impact: $400,000.00 is available from the 2020 HOME grant (G451903).
Title
This ordinance authorizes the appropriation and expenditure of up to $400,000.00 of 2020 HOME Investment Partnerships Program (HOME) grant from the U.S. Department of Housing and Urban Development; authorizes the Director of Development enter into a commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant with Gates Junction Senior Housing Limited Partnership in an amount up to $400,000.00; and to declare an emergency. ($400,000.00)
Body
WHEREAS, the City of Columbus is a participating jurisdiction of the U.S. Department of Housing and Urban Development; and
WHEREAS, the City of Columbus is the recipient of HOME Investment Partnerships funds from the 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, it is necessary to appropriate and expend funds from the 2020 HOME grant for eligible expenses and the Gates Junction Senior Housing project is an eligible expense; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to appropriate and expend said funds to allow for the developer to maintain the project schedule, 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 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 ended December 31, 2020, the sum of $400,000.00 is appropriated in Fund 2201 (HOME), from Dept-Div 44-10 (Housing), G451903 (2020 HOME), object class 05 (Other Expenses) per the account codes in the attachment to this ordinance.
SECTION 2. That the expenditure of $400,000.00 or so much thereof as may be needed, is hereby authorized in Fund 2201 (HOME), Dept-Div 4410 (Housing), G451903 (2020 HOME), object class 05 (Other Expenses) per the account codes in the attachment to this ordinance.
SECTION 3. That the Director of Development is hereby authorized to enter into a commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant with Gates Junction Senior Housing LP for the Gates Junction Senior Housing project.
SECTION 4. 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 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. 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 7. 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.