Explanation
BACKGROUND: This ordinance authorizes the Director of Development to enter into grant agreements with recipients of the Department of Development, Division of Housing’s Homeownership Development Program for purpose of providing development and affordability assistance to non-profit organizations constructing or rehabilitating affordable housing. The Department desires to encumber $770,000.00 of bond funds for this program and will enter into multiple agreements under the authority of this ordinance.
The Homeownership Development Program (HDP) is designed to redevelop residential homes and residential properties either for sale as homeownership opportunities or for short term lease purchase (up to 36 months) within the city of Columbus. The program provides development and affordability gap financing based on need but not to exceed a total of $60,000.00 per unit in the form of a deferred forgivable loan. The City may consider larger gap financing amounts only if there are extraordinary circumstances and other financing sources cannot address the full gap.
The Homeownership Development Program (HDP) provides an incentive for non-profit and for-profit developers and/or builders to rehabilitate or construct quality homes to AWARE standards available for sale at an affordable price for income qualified homebuyers. As the program has evolved, the department has learned that some HDP projects are more involved than originally expected, resulting in additional costs unanticipated by the Developer and the City. As such, the Director is also seeking authority to modify HDP contracts as issues are discovered, up to the amount of funds remaining on the ACPO. This will allow the department to immediately authorize the additional work needed without stopping work to seek Council approval for a contract modification.
Emergency action is requested to prevent disruption in the Homeownership Development Program.
Fiscal Impact: $770,000.00 is available in the 2020...
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