§ 4565.08. Required terms for incentive agreements in ready for revitalization areas.

The provisions of this section state terms required for the agreements required for Ready for Revitalization Areas by division (A) of Section 4565.06. They are not self-executing terms for abatement.

(A)

A development projects containing four (4) or more housing units in a Ready for Revitalization Area shall be eligible for the incentive specified in division (B) of this Section if, for the duration of the incentive, ten percent (10%) of the housing units in the development are affordable housing units rented or sold to occupants with up to eighty percent (80%) AMI, and an additional ten percent (10%) of the housing units in the development are affordable housing units rented or sold to occupants with up to one hundred percent (100%) AMI.

1.

The project sponsor may receive credits equal to one (1) affordable housing unit for each of the following:

a.

For every one million dollars ($1,000,000.00) of environmental remediation expenses associated with the project;

b.

For every twenty-five thousand (25,000) square feet of Class A office space constructed as part of an affiliated commercial development or rehabilitation within the area. The Director may establish rules defining what is an affiliated commercial development or rehabilitation.

c.

For a one-time payment of five thousand dollars ($5,000.00) to a local CDC to support affordable housing in the city of Columbus.

i.

The project sponsor shall provide the Director with proof of remitting the payments required by this section within ten (10) days of tendering the payment.

ii.

If the project sponsor fails to remit the payment required by this section by the date set forth in the project sponsor's agreement with the City, the project sponsor shall be in default under the agreement. The Director shall have cause to take such action as necessary to cause the abatement to cease and return the property to fully taxable status. If the Director permits late payment to be made, the Director may impose a penalty of five hundred dollars ($500.00) for each month or portion of a month that the payment is late. The penalty shall be paid to the Affordable Housing Trust.

2.

If the project is a rehabilitation of a property listed on the Columbus Register of Historic Properties, then the affordable housing unit requirements shall not apply and no agreement under Section 4565.06 shall be required.

3.

If the project is being completed in partnership with a local CDC or the Columbus Next Generation Corporation, then the affordable housing units requirement shall not apply. The Director shall formulate criteria to evaluate whether an arrangement between the project sponsor and the CDC or Columbus Next Generation Corporation is a qualifying partnership under this division.

(B)

Development projects providing the affordable housing units required under division (A) of this section, or receiving credits or paying a fee in lieu of providing such units as provided in division (A) of this section, shall be eligible for an abatement of property tax on one hundred percent (100%) of the increase in assessed value of the structure for a period of fifteen (15) years from the date of the project's receipt of its certificate of occupancy (or an earlier date, if elected by the project sponsor with the City's consent).

(C)

Default on Affordable Housing Unit Requirement.

1.

If the number of affordable housing units rented or owned by persons whose household income is up to eighty percent (80%) AMI or one hundred percent (100%) AMI falls below the proportions prescribed by division (A) for a period of ninety (90) days, the owner must provide written notice of the shortfall to the Director within ten (10) business days.

2.

If the number of affordable housing units rented or owned by persons whose household income is up to eighty percent (80%) AMI or one hundred percent (100%) AMI remains below that prescribed in division (A) of this Section for a period of one hundred eighty (180) days, the project sponsor shall be responsible for making payment to the Affordable Housing Trust, in an amount determined by reference to the following table:

Affordable Housing Shortfall (by % below required number of units)	Required Payment to Affordable Housing Trust (by % of annual real property tax abated)
Up to 25%	20%
>25% up to 50%	40%
>50% up to 75%	65%
>75%	90%

 

3.

If the number of affordable housing units rented or owned by persons whose household income is up to eighty percent (80%) AMI or one hundred percent (100%) AMI remains below fifty percent (50%) of that prescribed in division (A) of this Section for a period of two consecutive years, the Director shall have cause to take such action as necessary to cause the abatement to cease and return the property to fully taxable status. In the alternative, the project sponsor and the City may execute an addendum to the agreement by which the project sponsor agrees to pay an annual fee in-lieu for the affordable housing shortfall for the remaining duration of the abatement, calculated as provided in Section 4565.07(A)(3), except that the annual fee-in-lieu shall equal not less than one hundred seventy-five percent (175%) of the difference between the annual market-rate rent charged for the least-expensive units comprising one-fifth of the total market-rate units within the development, and the annual rents that would have been collected on those units if they were affordable housing units.

4.

The remedies provided for default herein are not intended, and shall not be so construed, to limit the City's other remedies at law or in equity for breach of the agreement.

(Ord. No. 2184-2018 , § 1, 7-30-2018)