MHGB
Communication

Office of the City Manager
 
 

Date

February 11, 2008

 

Agenda Item No.       MHGB5

Roll Call No.              08-

Communication No.  08-054

Submitted by:  Chris Johansen, Housing Services Director

 

 

AGENDA HEADING:

 

Authorizing Disposition Sale of 5117/5119, 5118/5120, 5123/5125, 5124/5126, 5128/5130 & 5129/5131 Bel Aire Road (Property) to Home Opportunities Made Easy, Inc.

 

 

SYNOPSIS:

 

Recommend authorization to sell Des Moines Municipal Housing Agency disposition property to Home Opportunities Made Easy, Inc. (HOME, Inc.)

 

 

FISCAL IMPACT:

 

Amount:  $465,000 from sale and a five (5) year restrictive covenant of affordability.

 

Funding Source:  FY 2007-08 Operating Budget, Housing Services, Public Housing, pg. 173, SP350 HSG020000

 

The proceeds from the sale will be used accordingly:                

  • Affordable Housing Endowment Fund (75%)
  • Physical Improvements to existing Manors (25%) 

 

 

ADDITIONAL INFORMATION:

 

On August 19, 2003, the Housing Services Department received approval for its application to dispose of 394 Public Housing units at fair market value via a public bid.  Where there are commensurate public benefits, according to federal regulations, sales can be negotiated with a specific buyer.

 

HOME, Inc., an Iowa nonprofit corporation has a long history of providing affordable housing in the City of Des Moines while meeting the requirements of federally funded housing programs. It has the ability to meet the requirements of DMMHA’s disposition plan.  HOME, Inc. intends to use the property for its lease/purchase model of homeownership for households below 80% of HUD median income guidelines.

 

DMMHA has received HUD approval for this negotiated sale.

 

 

PREVIOUS COUNCIL ACTION(S): NONE

 

 

BOARD/COMMISSION ACTION(S):

 

Date:  October 6, 2003 

 

Roll Call Number:  03-2267    

 

Action:   Authorizing implementation and approving procedures, notification and form of documents for disposition of scattered site units. (Council Communication No. 03-499). Moved by Vlassis to adopt. Motion Carried 5-3. 

 

Date:  November 4, 2002 

 

Roll Call Number:  02-2579    

 

Action:   Approving disposition application of 394 Public Housing Units for submittal to the U.S. Department of Housing and Urban Development. (Council Communication No. 02-559). Moved by Vlassis to approve. City Manager to provide Board with an implementation plan and timeline. Motion Carried 5-3. Absent: Daniels, McPherson and Clark.

 

 

ANTICIPATED ACTIONS AND FUTURE COMMITMENTS: NONE