Explanation
BACKGROUND: Since the start of the City’s Vacant and Abandoned Properties Initiative, the City of Columbus Land Bank Program and the County’s Land Bank, the Central Ohio Community Improvement Corporation (COCIC), have worked in close partnership to identify and target vacant and abandon properties to remove blight from Columbus neighborhoods. In 2019, COCIC, the City, and Franklin County created a Community Land Trust, called the Central Ohio Community Land Trust (COCLT), to utilize acquired parcels to increase the supply of affordable housing. In 2019 and 2020, Council adopted Ordinances 0227-2019 and 0872-2020, which authorized the expenditure of $4,000,000 to construct COCLT houses which lead to the construction and sale of over 38 houses (with additional units being finished now). In 2020, Council authorized the Director of Development to enter into Housing Development Agreements to start COCLT projects for 2021, including projects in Franklinton, Weiland Park, Milo-Grogan, and other neighborhoods. This legislation authorizes the expenditure of $3,060,000 from the 2020 Capital Budget to fund the development of units under these agreements.
FISCAL IMPACT: $3,060,000 is available in the 2020 Capital Improvement Budget, Affordable Housing Taxable bond fund. An amendment to the 2020 Capital Budget is required to establish sufficient budget authority for the project
EMERGENCY JUSTIFICATION: Emergency action is requested in order to enter into agreements and transfer property for spring construction.
Title
To amend the 2020 Capital Improvement Budget; to authorize the City Auditor to transfer funds within the Affordable Housing Bond Fund; to authorize the Director of the Department of Development to execute any and all documents necessary for conveyance of title to Land Bank properties to the Central Ohio Community Land Trust; to authorize the Director of the Department of Development to enter into an agreement with the Central Ohio Community Land Trust to spend $3,060,000.00 to develop affordable housing; and declare an emergency. ($3,060,000.00)
Body
WHEREAS, since the establishment of Franklin County’s Land Reutilization Corporation, the Central Ohio Community Improvement Corporation (COCIC), the COCIC and the City’s Land Reutilization Program (Land Banks) have worked in close partnership to identify and target vacant and abandon properties to remove blight from Columbus neighborhoods; and
WHEREAS, the partnership has resulted in the reduction of vacant and abandoned properties in the City and the accumulation of hundreds of vacant lots located in neighborhoods ready for investment; and
WHEREAS, COCIC has created a not-for-profit subsidiary, the Central Ohio Community Land Trust (COCLT), to serve as a community land trust on the behalf of the City of Columbus and Franklin County; and
WHEREAS, by Ordinance 0227-2019, Columbus City Council authorized the Director of the Department of Development to enter into the agreement with the Central Ohio Community Improvement Corporation to establish a Community Land Trust and authorized the expenditure of $3,800,000; and
WHEREAS, by Ordinance 0872-2020, Columbus City Council authorized the expenditure of an additional $200,000 to fund additional trust projects; and
WHEREAS, by Ordinance 1237-2020, Columbus City Council authorized the Director of Development to enter into this Agreement for up to $1,000,000 to construct COCLT houses in Franklinton on and around the former Mt. Carmel Hospital site; and
WHEREAS, by Ordinance 2751-2020, Columbus City Council authorized the Director of Development to enter into this Agreement for up to $4,000,000 to construct COCLT houses in various Columbus neighborhoods; and
WHEREAS, it is necessary to request authorization to enter into an agreement and expend $3.06 million to fund COCLT projects for 2021. The funds will be used to reduce the purchase price of houses developed for the COCLT for qualified buyers; and
WHEREAS, it is necessary to amend the 2020 Capital Improvement Budget in order to provide sufficient authority; and
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 an agreement with COCLT so projects can start in spring 2021, 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 the 2020 Capital Improvements Budget authorized by ordinance 2521-2020 be amended as follows to establish sufficient authority for this this project:
Fund / Project / Project Name / C.I.B. / Change / C.I.B. as Amended
7779 / P782012-100000 / Affordable Housing Funds / $8,750,000.00 / ($3,060,000.00) / $5,690,000.00
7779 / P782025-100000 / Community Land Trust / $0.00 / $3,060,000.00 / $3,060,000.00
SECTION 2. That the transfer of $3,060,000.00 or so much thereof as may be needed, is hereby authorized within Fund 7779 (Affordable Housing Fund), Dept-Div 44-11 (Land Redevelopment) per the account codes in the attachment to this ordinance.
SECTION 3. That the Director of the Department of Development is hereby authorized to enter into an agreement with the Central Ohio Community Improvement Corporation or its subsidiary, the Central Ohio Community Land Trust, to establish a community land trust and develop affordable housing.
SECTION 4. The Director of the Department of Development, or his designee, is authorized to execute any and all documents necessary for conveyance of title to Land Bank properties to COCLT or COCIC, as approved by the City Attorney’s Office, Real Estate Division, to the Central Ohio Community Improvement Corporation, or its subsidiary, the Central Ohio Community Land Trust.
SECTION 5. That for the purpose as stated in Section 8, the expenditure of $3,060,000.00, or so much thereof as may be necessary, is hereby authorized in fund 7779 (Affordable Housing Fund), Project 782025-100000, Dept. 44-11 (Land Redevelopment), in Object Class 06 (Capital Outlay) per the accounting codes in the attachment to this ordinance.
SECTION 6. That the City Auditor is authorized to make any accounting changes to revise the funding source for any contract or contract modification associated with this ordinance.
SECTION 7. 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 8. That the City Auditor is hereby authorized to transfer the unencumbered balance in a project account to the unallocated balance account within the same fund upon receipt of certification by the Director of the Department administering said project that the project has been completed and the monies are no longer required for said project.
SECTION 9. 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 passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.