Explanation
BACKGROUND
This legislation authorizes the Director of the Department of Development to enter into a Housing Development Agreement (HDA) and a Grant Agreement with Easton Loop Apartments II, LLC for the Easton Place Homes Phase II project.
The HDA would memorialize the City’s desired commitment to the project, pending City Council approval and current and future availability of funds. The Department of Development wishes to support this project by contributing $4,800,000.00 of bond funds over two years, $2,250,000.00 from the 2021 Capital Budget and $2,550,000.00 from the 2022 Capital Budget. This legislation would authorize the Director of Development to first execute the HDA and then a Grant Agreement in the amount $2,250,000.00 funded from the 2021 Capital Budget. Pending the availability of funding in the 2022 Capital Budget, the department will seek City Council’s approval for a planned agreement modification.
Easton Place Homes Phase II is a proposed 100-unit apartment development for families located at Easton Square Place and Charter Oak Way in Columbus, Ohio. The 4.65-acre parcel will be split to create lots on which approximately 200 units of affordable housing will be developed in three phases. Easton Place Homes Phase II is located directly south of the market rate townhomes facing Easton Way, which is the southern boundary of the premier retail/restaurant/entertainment district in Columbus. Major employers, such as JPMorgan Chase and Huntington Bank, employ thousands within walking distance-census data from 2018 indicates 24,000 jobs within a mile of the site-making this an extremely convenient location in all respects.
The property will consist of four 3-story apartment buildings with a combination of townhomes and stacked flats. Easton Place Phase II will offer a mix of 24 one-bedroom, 59 two-bedroom, and 17 three-bedroom apartments. Community space includes a community room with kitchenette, fitness room and management office. Easton Place will serve a mix of income levels from 30% AMI to 60% AMI. Depending on final utility allowances, net rents for the different unit sizes are estimated at $360-830 for one-bedroom, $430-995 for two-bedroom and $485-1135 for three-bedroom apartments.
Easton Place Homes Phase II has secured Low Income Housing Tax Credits and OHFA HDAP funds, along with additional private loans and City HOME funds to fund this Phase’s Total Development Cost of $14,992,121. In addition to the City’s Capital funds, Phase 2 has also secured 4% tax credits from OHFA in 2021, along with OHFA HDAP, and County HOME funds and other private loans. Phase 3 is still in the process of getting State resources.
Emergency action is requested in order to maintain the project schedule.
FISCAL IMPACT: Funding is available in 2021 Capital Improvement Budget. An amendment to the 2021 Capital Budget is required to establish sufficient budget authority for the project.
CONTRACT COMPLIANCE: the vendor number is 042042 and expires 6/14/2024.
Title
To amend the 2021 Capital Improvement Budget; to authorize the City Auditor to transfer funds within the Housing Preservation Fund; to authorize the Director of Development to enter into a Housing Development Agreement and a Grant Agreement in an amount up to $2,250,000.00 with Easton Loop Apartments II, LLC for the Easton Place Homes Phase II project; to authorize the expenditure of up to $2,250,000.00 from the Housing Preservation Fund; and to declare an emergency. ($2,250,000.00) (AMENDED BY ORD. 2484-2022 PASSED 09/19/2022) BA
Body
WHEREAS, the Director of Development seeks to enter into a Housing Development Agreement (HDA) and a Grant Agreement with Easton Loop Apartments II, LLC for the Easton Place Homes Phase II project; and
WHEREAS, the HDA would memorialize the City’s desired commitment to the project, pending City Council approval and current and future availability of funds; and
WHEREAS, The Department of Development wishes to support this project by contributing $4,800,000.00 of bond funds over two years, $2,250,000.00 from the 2021 Capital Budget and $2,550,000.00 from the 2022 Capital Budget; and
WHEREAS, this legislation would authorize the Director of Development to first execute the HDA and then a Grant Agreement in the amount $2,250,000.00 funded from the 2021 Capital Budget. Pending the availability of funding in the 2022 Capital Budget, the department will seek City Council’s approval for a planned agreement modification; 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 agreements with Easton Loop Apartments II, LLC for the Easton Place Homes Phase II in order to maintain the project schedule, thereby preserving the public health, peace, property, safety and welfare; now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the 2021 Capital Improvements Budget authorized by ordinance 2707-2021 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 (Voted 2019) / $9,000,000.00 / ($1,808,733.00) / $7,191,267.00
7779 / P782012-100000 / Affordable Housing Funds (Voted Carryover) / $441,267.00 / ($441,267.00) / $0.00
7779 / P782035-100000 / Easton Place Homes/ $0.00 / $1,808,733.00 / $1,808,733.00
7779 / P782035-100000 / Easton Place Homes/ $0.00 / $441,267.00 / $441,267.00
SECTION 2. That the transfer of $2,250,000.00 or so much thereof as may be needed, is hereby authorized within Fund 7779 (Housing Preservation), Dept-Div 44-10 (Housing) per the account codes in the attachment to this ordinance.
SECTION 3. That for the purpose as stated in Section 4, the expenditure of $2,250,000.00, or so much thereof as may be necessary, is hereby authorized in fund 7779 (Housing Preservation Fund), Project P782035-100000, Dept. 44-10 (Housing), in Object Class 06 (Capital Outlay) per the accounting codes in the attachment to this ordinance.
SECTION 4. That the Director of Development be and is hereby authorized to first enter into a Housing Development Agreement and then a Grant Agreement, in an amount up to $2,250,000.00, with Easton Loop Apartments II, LLC for the Easton Place Homes Phase II project.
SECTION 5. 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 6. 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 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. 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.