Explanation
BACKGROUND: This ordinance authorizes the appropriation and expenditure of up to $825,000.00 of the 2020 and 2021 HOME Investment Partnerships Program (HOME) entitlement grant funds 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 Harriet’s Hope LLC for a 52-unit apartment project.
Columbus Metropolitan Housing Authority and its partners Beacon 360 Management and Finance Fund are partnering on a development/Supervised Recovery Home that will serve female human trafficking survivors pursuing recovery from drugs, alcohol, or other dependencies, known as Harriet’s Hope. Harriet’s Hope will help residents who are early in their recovery journey, subsequently requiring formal treatment and supportive social services that increase stabilization.
Harriet’s Hope will be located at 1567 W. Broad Street behind Carol Stewart Village. The proposed building will be new construction with a total of 52 units, 47 one-bedrooms, and five two-bedrooms. The project's income target will be at or lower than 30% AMI. A total of two individuals can occupy one-bedroom and four in a two-bedroom. It is estimated that there will be approximately 20 children living in the community, mainly in two bedroom units. One-bedroom units may house single parents with one child. Harriet’s Hope will offer a flexible community space for on-site social service rendering, meeting rooms, group activities, and on-site amenities, including a computer room, green space, and a laundry room.
Beacon 360 Management is currently working to establish partnerships with a variety of local organizations to offer wraparound services to clients such as case management, substance abuse treatment, trauma informed therapy, vocational services, financial management healthcare services and peer support. Currently, Beacon 360 Management has signed agreements with The Salvation Army, Integrated Services for Behavioral Health, Alvis Inc., Columbus Works, Fit to Navigate and Freedom a La Carte to provide services to residents of Harriet’s Hope.
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 035861 and expires 5/25/2023.
Fiscal Impact: $143,407.61 is available from the 2020 HOME grant (G451903) and $681,592.39 is available from the 2021 HOME grant (G452000). The commitment of funds through this legislation is conditioned on compliance with HUD’s environmental review requirements. The contract execution committing $825,000.00 from HOME Fund (2201) for Harriet’s Hope LLC is only authorized if all HOME review and comment requirements have been met prior to any commitment of funds, as approved by the Responsible Entity Agency Official. An Authorization to Utilize Grant Funds will be received by the City from HUD in advance of the contract execution for this project.
Title
To authorize the appropriation and expenditure of up to $825,000.00 of the 2020 and 2021 HOME Investment Partnerships Program (HOME) entitlement grant funds from the U.S. Department of Housing and Urban Development; to enter into a commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant with Harriet’s Hope LLC for a 52-unit apartment project; and to declare an emergency. ($825,000.00).
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 Harriet’s Hope LLC’s 52-unit apartment project; 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, 2022, the sum of $143,407.61is appropriated in Fund 2201 (2020 HOME), from Dept-Div 44-10 (Housing), G451903, object class 05 (Other Expenses) per the account codes in the attachment to this ordinance.
SECTION 2. 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, 2022, the sum of $681,592.39 is appropriated in Fund 2201 (2021 HOME), from Dept-Div 44-10 (Housing), G452000, object class 05 (Other Expenses) per the account codes in the attachment to this ordinance.
SECTION 3. That the expenditure of $143,407.61or 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 4. That the expenditure of $681,592.39 or so much thereof as may be needed, is hereby authorized in Fund 2201 (HOME), Dept-Div 4410 (Housing), G452000 (2021 HOME), object class 05 (Other Expenses) per the account codes in the attachment to this ordinance.
SECTION 5. That the Director of Development is hereby authorized to enter into a commitment letter, loan agreement, promissory note, mortgage, and restrictive covenant with Harriet’s Hope LLC for a 52-unit apartment project in an amount up to $825,000.00.
SECTION 6. 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 7. 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 8. 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 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 its approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.