Explanation
1. BACKGROUND
This legislation authorizes the Director of the Department of Development to enter into a grant agreement with Erie Ohio Capital CDFI Fund LLC for The Columbus Renaissance Housing development.
The Columbus Renaissance Housing development is intended to be structured as a partnership organized strategically to pair a local place-based neighborhood nonprofit entities, Community Development for All People (“CD4AP”) with Woda Cooper Companies, Inc. ("Woda"), a highly experienced nationwide developer who will serve as general contractor and property manager.
Columbus Renaissance Housing is located at 33 West Morrill Avenue in Merion Village. The project is a single-phase development to occur on multi parcel former industrial manufacturing site that is bounded by existing housing on two adjacent sides, a church, and the Salvation Army, and is just a short distance outside of the central downtown core.
The property will feature affordable workforce housing with all units at 60% AMI. The project will be geared toward a variety of residents: young professionals, single-parent households, small families and even seniors. The combined project will foster services to support families, aging-in-place, and workforce housing concepts. Amenities on-site will include management offices, a health and wellness center, community rooms, and more. The project is within steps of COTA bus stops, the Berliner Sports Park, several restaurants, houses of worship, Salvation Army, and the highly-rated Southwood Elementary School.
In addition to the myriad of supportive services and programming opportunities directly offered through Community Development For All People, the development will also engage with other local partners to expand future programming to be offered to all family households, single parents, seniors or anyone residing at the Columbus Renaissance Housing.
The building will include nine (12) one-bedroom units, twenty-eight (28) two bedroom units and six (6) three-bedroom units. All apartments will have at least one (1) full bathroom; the three-bedroom units may have 1.5 bathrooms, pending final project design and budgeting. Over 10% of the project units will be fully accessible and at least three (3) additional units for hearing/vision impaired residents. All of the units will be “Visit-Able” with a zero-step entrance and widths/clearances acceptable to accommodating residents and visitors with wheelchairs, walkers and other mobility-assisting devices, as well as feature elements of Universal Design promoting “aging in place.”
The original ordinance 2049-2022 passed on July 25, 2022 allowed for the establishment of a Housing Development Agreement to utilize Affordable Housing bond funds coming from the City’s 2022 Capital Budget in the amount of $1,400,000.00. This ordinance will allow for the establishment of $1,900,000.00 from the City’s 2022 Capital Budget through a bond agreement funded temporarily with the Special Income Tax Fund until bonds are issued, with a Housing Development Agreement no longer needed.
Emergency action is requested to maintain the permit and closing schedule of the project and to mitigate construction cost increases.
2. FISCAL IMPACTS
This ordinance authorizes an expenditure of $1,900,000.00 in the Affordable Housing Bond Fund. It is necessary to certify the requisite funds in the amount of $1,900,000.00 against the Special Income Tax Fund. An amendment to the 2022 Capital Improvement Budget is required to establish sufficient budget authority within the proper project.
CONTRACT COMPLIANCE: the vendor number is 033062 and expires 06/24/24.
Title
To amend the 2022 Capital Budget; to authorize the City Auditor to appropriate and transfer funds from the Special Income Tax to the Affordable Housing Taxable Bond Fund; to authorize the Director of the Department of Development to enter into a grant agreement in an amount up to $1,900,000.00 with Erie Ohio Capital CDFI Fund LLC for The Columbus Renaissance Housing development; to authorize the appropriation and expenditure of $1,900,000.00 within the Affordable Housing Taxable Bond Fund; and to declare an emergency. ($1,900,000.00) (AMENDED BY ORD. 0251-2023 PASSED 1/30/2023) BA
Body
WHEREAS, the Director of the Department of Development desires to enter into a grant agreement with Erie Ohio Capital CDFI Fund LLC for The Columbus Renaissance Housing development; and
WHEREAS, the Columbus Renaissance Housing development is intended to be structured as a partnership organized strategically to pair a local place-based neighborhood nonprofit entities, Community Development for All People (“CD4AP”) with Woda Cooper Companies, Inc. ("Woda"); and
WHEREAS, Columbus Renaissance Housing is located at 33 West Morrill Avenue in Merion Village. The project is a single-phase development to occur on multi parcel former industrial manufacturing site; and
WHEREAS, the property will feature affordable workforce housing with all units at 60% AMI. The project will be geared toward a variety of residents: young professionals, single-parent households, small families and even seniors. The combined project will foster services to support families, aging-in-place, and workforce housing concepts; and
WHEREAS, the original ordinance 2049-2022 passed on July 25, 2022 allowed for the establishment of a Housing Development Agreement to utilize Affordable Housing bond funds coming from the City’s 2022 Capital Budget in the amount of $1,400,000.00; and
WHEREAS, this ordinance will allow for the establishment of $1,900,000.00 from the City’s 2022 Capital Budget through a bond agreement funded temporarily with the Special Income Tax Fund until bonds are issued, with a Housing Development Agreement no longer needed; and
WHEREAS, the City’s obligation to provide financial assistance as set forth herein is contingent upon the subsequent adoption of appropriate legislation by Columbus City Council authorizing such assistance; and
WHEREAS, it is necessary to amend the 2022 Capital Improvement Budget to establish authority within the correct project; and
WHEREAS, it is necessary to transfer funds from the Special Income Tax Fund to fund this project; and
WHEREAS, the City will reimburse the Special Income Tax Fund; and
WHEREAS, this transfer should be considered as a temporary funding method; and
WHEREAS, the aggregated principal amount of obligations which the City will issue to finance this project is presently expected not to exceed $1,900,000.00; and
WHEREAS, the City anticipates incurring Original Expenditures (as defined in Section 1.150-2(c) of the Treasury Regulations (the “Treasury Regulations”) promulgated pursuant to the Internal Revenue Code of 1986, as amended) with respect to the project described in this ordinance (the “Project”); and
WHEREAS, the City's agreement to provide financial assistance as set forth herein is contingent upon authorization pursuant to subsequent passage of appropriate legislation by Columbus City Council;
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 grant agreement with Erie Ohio Capital CDFI Fund LLC to maintain the permit and closing schedule of the project and to mitigate construction cost increases; now therefore; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the 2022 Capital Improvements Budget authorized by ordinance 1896-2022 be amended as follows to establish sufficient authority for this project:
Fund / Project / Project Name / Current / Change /C.I.B. as Amended
7779 / P782012-100000 / Affordable Housing Funds (Voted 2019 SIT Supported) / $12,620,000 / ($1,900,000.00) / $10,720,000.00
7779 / P782040-100000/ Columbus Renaissance Housing/ $0.00 / $1,900,000.00 / $1,900,000.00
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 $1,900,000.00 is appropriated in Fund 4430 (Special Income Tax), Dept-Div 2201 (City Auditor) in Object Class 10 (Transfer Out Operating) and in Fund 7779 (Affordable Housing Taxable Bond Fund), Dept-Div 44-10 (Housing Division), Project P782040-100000 (Columbus Renaissance Housing), in Object Class 06 (Capital Outlay) per the account codes in the attachment to this ordinance.
SECTION 3. That the transfer of $1,900,000.00, or so much thereof as may be needed, is hereby authorized from Fund 4430 (Special Income Tax Fund), Dept-Div 2201 (City Auditor) to Fund 7779 (Affordable Housing Taxable Bond Fund), Dept-Div 44-10 (Housing Division) per the account codes in the attachment to this ordinance.
SECTION 4. That the Director of the Department of Development be and is hereby authorized to enter into a grant agreement for up to $1,900,000.00 on behalf of the City with the Erie Ohio Capital CDFI Fund LLC for The Columbus Renaissance Housing development.
SECTION 5. That the expenditure of $1,900,000.00 to the Erie Ohio Capital CDFI Fund LLC, or so much thereof as may be needed, is hereby authorized in Fund 7779 (Affordable Housing Taxable Bond Fund), Dept-Div 44-10 (Housing Division), in object class 06 (Capital Outlay) per the accounting codes in the attachment to this ordinance.
SECTION 6. That upon obtaining other funds for this project for the Department of Development, the City Auditor is hereby authorized and directed to repay the Special Income Tax Fund the amount transferred under Section 3.
SECTION 7. That the City intends that this ordinance constitute an “official intent” for purposes of Section 1.150-2(e) of the Treasury Regulations, and that the City reasonably expects to reimburse itself for certain Original Expenditures incurred with respect to the Project from the proceeds of obligations to be issued by the City in a principal amount currently estimated to be $1,900,000.00 (the “Obligations”).
The City intends to make a reimbursement allocation on its books for the Original Expenditures not later than eighteen months following the later to occur of the date of the Original Expenditure to be reimbursed or the date the Project for which such Original Expenditures were made is “placed in service” within the meaning of Treasury Regulations Section 1.150-2(c). Upon the issuance of the Obligations, the proceeds of such Obligations shall be used to reimburse the fund from which the advance for costs of the Project will be made.
SECTION 8. 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 9. 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 10. 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.