Explanation
BACKGROUND: This ordinance authorizes the appropriation and expenditure of $90,000.00 of the 2020 HOME Investment Partnerships Program (HOME) entitlement grant from the U.S. Department of Housing and Urban Development and authorizes the Director of the Department of Development to add $90,000.00 to the yet-to-be executed contract authorized under ordinance 1787-2020. The contract with the developer will be comprised of five documents: a commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant.
Ordinance 1787-2020 authorized the Director of Development to enter into contract with Franklinton Development Association for the Town Square Station project. 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 has increased by $90,000.00 due to increases in lumber and other construction material prices, to $2,225,000.00, and the City is contributing a total of $1,390,000.00 of HOME funds to this project. Other major 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.
This legislation represents appropriation for a part of the HOME portion of the 2021 Action Plan, per Ordinance 2345-2020.
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 grants, but a...
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