Explanation
[enter background and fiscal BACKGROUND:
This ordinance authorizes the Director of Development to modify a grant agreement with Healthy Linden Homes II, LLC to allow for the reimbursement of costs incurred prior to the creation of the purchase order.
Original Agreement $2,000,000.00 Ord. 2095-2022 PO364888
Modification No. 1 $ 0.00
Total Agreement Amount $2,000,000.00
This legislation is to modify the existing Purchase Order PO364888 that was executed by Grant Agreement on December 5, 2022, authorized by ordinance 2095-2022 passed on July 25, 2022. This modification would allow for the costs incurred prior to the Purchase Order date to be eligible for reimbursement. Revisions of the grant agreement draft delayed the processing of the purchase order. To keep with the contractor's timeline and to hold construction pricing without an increase in construction costs, the developer commenced construction prior to purchase order finalization.
Healthy Linden Homes II, LLC seeks to further address the housing affordability issues that Columbus faces by developing up to 30 units of new construction rental housing in zip code 43211. These properties will consist of infill development, designed to replace residential structures that have been demolished. Additionally, the parcels that have been identified for redevelopment are being acquired exclusively from the City of Columbus and Franklin County Land Banks.
The up to 30 rental units for which we are seeking funding will consist of no more than 10 single family homes and 10 duplexes. All but nine of these properties will be built by Unibilt Industries-a modular home builder located in Dayton, Ohio. The modular units will be delivered approximately 75% complete and set on full foundations. Healthy Homes has engaged a General Contractor who will complete all site preparations, construct the foundations and manage the balance of work post-delivery. Once delivered, the units will require mechanical connections for electric, plumbing and HVAC. Porches will be constructed on site, and there will be some minor interior finishes to finalize. Lastly, the General Contractor will pour concrete parking pads and walk ways, and each site will be fully landscaped with sod, bushes and a shade tree. The nine units that are not modular are ranch style homes and will consist of traditional stick construction. Upon completion, these projects will blend with the existing fabric of the community, and there will be no visible evidence to suggest that they are modular in nature.
In addition to high-quality, affordable places to call home, the tenant families who will reside in these units will have access to a variety of supportive services and advocacy opportunities. Healthy Homes recently hired a full-time Tenant Services Coordinator to serve as a link between residents and health/social service providers and Nationwide Children’s Healthy Neighborhoods Healthy Families (HNHF) programming. The Tenant Services Coordinator will work to increase health knowledge and self-sufficiency of our tenant families through outreach, community education, and referrals to community resources, social supports, and advocacy. More specifically, tenants will have improved access to health, educational, workforce and life skills development opportunities. Financial literacy, parenting classes and mental health services will also be emphasized. Service engagement will not be a requirement for the families that Healthy Homes serves, but it will be available to all households as needed.
Emergency action is requested to allow payment to the developer for substantial costs incurred and allowing for construction of this and other projects, which benefit the City of Columbus to continue.
FISCAL IMPACT: None.
CONTRACT COMPLIANCE: the vendor number is 041861 and expires on 06/13/2024.
Title
To authorize the Director of the Department of Development to modify a grant agreement with Healthy Linden Homes II, LLC, a not-for-profit entity, to allow for the reimbursement of costs incurred prior to the creation of the purchase order; and to declare an emergency. ($0.00)
Body
WHEREAS, the Director of Development desires to modify a grant agreement with Healthy Linden Homes II, LLC to allow for the reimbursement of costs incurred prior to the creation of the purchase order; and
WHEREAS, to hold construction pricing without an increase in construction costs, the developer commenced construction prior to purchase order finalization; 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 modify this grant agreement, to allow payment to the developer for substantial costs incurred and allowing for construction of this and other projects, which benefit the City of Columbus to continue, in order to prevent interruption in services, 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. For the reasons set forth above, the Director of the Department of Development is authorized to modify a grant agreement with Healthy Linden Homes II, LLC, a not-for-profit entity, to allow for the reimbursement of costs incurred prior to the creation of the purchase order.
SECTION 2. 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.