Explanation
BACKGROUND: This ordinance authorizes the appropriation and expenditure of up to $75,000.00 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, and mortgage with Habitat for Humanity MidOhio for the construction of a single family home.
Habitat for Humanity MidOhio (HFHMO) proposes to build one new single-family home in the City of Columbus at 1344 E 15th Avenue. The home will be built to AWARE standards and is designed to blend in with the surrounding neighborhood. It will be a single story home with a front porch and no garage and built on vacant property purchased from COCIC.
The first-time homebuyer identified for this home is a single mother with two children. She earns below 80% of the Area Median Income.
HFHMO has a 34 year history of creating safe, decent, affordable homeownership opportunities for low-and very-low-income families. An affiliate of Habitat for Humanity International, HFHMO has built, repaired, or rehabilitated more than 600 homes throughout their service area of Franklin, Madison, and Licking Counties. Their homes are typically sold to first-time homebuyers earning 30%-60% of the Area Median Income who are willing to partner with them by completing a homeownership education course and up to 200 hours of sweat equity work on their own home, as well as other Habitat homes.
A unique aspect of the Habitat model is that they offer no-interest, no-profit mortgages to their buyers, making the homes affordable to families who would not qualify for traditional mortgages.
This legislation represents appropriation for a part of the HOME portion of the 2021 Action Plan, per Ordinance 2345-2020.
Emergency action is requested to allow for the developer to maintain the project schedule.
Contract Compliance: the vendor number is 004859 and expires 4/13/2023.
Fiscal Impact: $75,000.00 is available from the 2020 HOME grant (G451903).
Title
To authorize the appropriation and expenditure of up to $75,000.00 of 2020 HOME Investment Partnerships Program (HOME) grant from the U.S. Department of Housing and Urban Development; to authorize the Director of Development to enter into a commitment letter, loan agreement, promissory note, and mortgage with Habitat for Humanity MidOhio in an amount up to $75,000.00 for 1344 E 15th Avenue; and to declare an emergency. ($75,000.00)
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 2021 Action Plan, per Ordinance 2345-2020, as required by HUD; and
WHEREAS, the Department of Development desires to support Habitat for Humanity MidOhio with financial support for one single family home project at 1344 E 15th Avenue; 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 a commitment letter, loan agreement, promissory note, and mortgage with Habitat for Humanity MidOhio and 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, 2021, the sum of $75,000.00 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 $75,000.00 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, and mortgage with Habitat for Humanity MidOhio for 1344 E 15th Avenue.
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.