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Date
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November 6, 2006
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Agenda
Item No. 22B Roll
Call No. 06- Communication No. 06-687
Submitted by: Larry Hulse, Community Development Director |
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AGENDA HEADING:
Approving the form of agreement among the City of Des Moines, West Bank, and the Federal Home Loan Bank of Des Moines to implement the Affordable Housing Program Grant for minor home repairs.
SYNOPSIS:
Recommend approval of the form of agreement among the City of Des Moines, West Bank, and the Federal Home Loan Bank of Des Moines for minor home repairs. The City made application for, and subsequently received, this grant in April of 2006. This action approves the form of agreement for execution of the grant award. The grant proceeds will go directly into minor home repairs for low-income owner-occupants. Approximately 84 loans will be provided for low-income households over a two-year period.
FISCAL
IMPACT:
Amount:
The grant award is $250,000 The grant is matched by $250,000 of
Community Development Block Grant (CDBG) Dollars and $250,000 of Polk County
Housing Trust Fund dollars that were previously received. Money for staff and administration is
provided by CDBG dollars.
Funding
Source: Fiscal
Year 2006-07 Operating Budget,
NCS-Owner Occupied Program, SP020 CDD049900 CDBG200514, Page 354.
ADDITIONAL
INFORMATION:
The Federal Home Loan Bank of Des Moines
provides grant funds for member banks through a grant program called the
Affordable Housing Program. A member
bank may sponsor a non-profit or government organization to make application to
administer a program that preserves affordable housing for low-income
residents. Applications for funds are
held annually and are very competitive.
In 2000, 2001, and 2004, the City of Des
Moines worked with West Bank to make application for and receive funds to
supplement the City’s Emergency Repair Loan Program for low-income
owner-occupied structures. Only Member
Institutions of the Federal Home Loan Bank are able to make application for the
funds. West Bank is one of the few
banks in the Des Moines area with this designation. West Des Moines State Bank
is headquartered at 1601 22nd Street in West Des Moines. Vince McNace is the
Executive Vice President of West Des Moines State Bank with signature
privileges from the Federal Home Loan Bank of Des Moines.
The Neighborhood Conservation Division
will assist 84 low-income homeowners with emergency repairs on their
homes. Minor home repairs include such
system failures as a broken water line or collapsed roof. A minor home repair is limited to a total of
$9,000 per loan. The Federal Home Loan Bank funds would provide up to $3,000 in
additional home repair per structure, the Polk County Housing Trust Fund
dollars provide an additional $3,000 and CDBG funds the final $3,000. Staffing funds are provided through CDBG for
the Neighborhood Conservation Division, Community Development Department.
PREVIOUS
COUNCIL ACTION(S):
Date: April 24, 2006
Roll
Call Number: 06-771
Action:
$250,000
Grant Request to Federal Home Loan Bank of Des Moines Affordable Housing
Program by the City and West Des Moines State Bank for minor home repairs for
low-income owner-occupants. (Council
Communication No. 06-238) Moved by Hensley to adopt. Motion Carried 7-0.
Date:
November 21, 2005
Roll Call
Number: 05-2792
Action: A $250,000 grant request to the Polk County
Housing Trust Fund for the City of Des Moines Emergency Repair Loan
Program. (Council
Communication No. 05-655) Moved by
Hensley to adopt. Motion Carried 7-0.
Date:
September 27, 2004
Roll Call
Number: 04-2046
Action:
$250,000 Grant request from the City and West Des Moines State Bank, to
the Federal Home Loan Bank of Des Moines Affordable Housing Program, to fund
emergency repairs for low-income owner-occupants. (Council
Communication No. 04-463) Moved by Hensley to adopt. Motion Carried 7-0.
BOARD/COMMISSION
ACTION(S): NONE
ANTICIPATED
ACTIONS AND FUTURE COMMITMENTS:
A future action
will be needed to sign an agreement between the City of Des Moines and West
Bank.