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Date
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February 25, 2008
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Agenda
Item No. 30 Roll
Call No. 08- Communication No. 08-080
Submitted by: Larry Hulse, Community Development Director |
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AGENDA HEADING:
Approval
of $460,000 grant request to the Federal Home Loan Bank of Des Moines
Affordable Housing Program by the City of
owner-occupied housing.
SYNOPSIS:
Recommend approval of $460,000 grant request to the Federal Home Loan Bank of Des Moines Affordable Housing Program. The grant funding would go directly into home repairs and lead remediation for low-income owner-occupants. The grant application is matched by $650,000 in Community Development Block Grant (CDBG) funds and $430,000 from the Polk County Housing Trust Fund (PCHTF). Funding for staff and administration would be provided by CDBG funds. If the grant application is successful, 140 low-income households will receive assistance with minor home repairs or lead remediation over an eighteen-month period.
FISCAL
IMPACT:
Amount: $460,000
(grant proceeds)
The grant
application is matched by $650,000 of CDBG funds.
Funding
Source: FY 2007-08 Operating Budget, SP020,
CDD049900, CDBG200714 NCS-Homeowner Rehab, pg 105
ADDITIONAL
INFORMATION:
The Federal Home Loan Bank of
In recent years, the City of
This grant request will augment existing City CDBG funding and PCHTF funding for
low-income families for two programs:
1) minor home repair for emergency conditions
for homeowners
2) remediation of lead paint hazards for
families with children with elevated blood lead levels.
Minor
Home Repair for Emergency Conditions
The Neighborhood Conservation Division
will assist 120 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 forgivable 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.
The City of
Lead
Paint Remediation
If this application is fully funded, the
Neighborhood Conservation Division will assist 20 low-income homeowners with
lead remediation and rehabilitation. The
household must contain a child under the age of 6 with elevated blood lead
levels to be eligible for the funding. The
average rehabilitation/lead remediation costs are between $30,000-$40,000,
depending on the extent of lead paint and condition of the house. Costs for the rehabilitation are split
between CDBG, PCHTF, and the proposed Federal Home Loan Bank funding. Staffing funds are provided through CDBG for
the Neighborhood Conservation Division, Community Development Department. The City of
The City of
The existing
Lead Remediation Program is funded through the City’s Community Development
Block Grant Program, two grants from the Polk County Housing Trust Fund, and a
2006 grant from the Federal Home Loan Bank.
The program includes monies for lead remediation and general
rehabilitation in a home. Kitchen cabinets painted with lead paint are replaced
with new cabinets and windows with lead paint may be replaced or repaired so
that lead dust does not contaminate the house as windows are raised and
lowered. There are instances, however,
when the particular item to be corrected does not involve lead hazards. For example, one family with lead poisoned
children did not have a working bathroom sink; another family had a very old,
inefficient furnace. These items are
also fixed or replaced as a part of the Lead Remediation Program.
PREVIOUS
COUNCIL ACTION(S):
Date: August 20, 2007
Roll Call
Number: 07-1614
Action: Grant
Application of $250,000 to Federal Home Loan Bank of
Date: November 6, 2006
Roll Call
Number: 06-2181 and
06-2182
Action: Form of Agreement with
Date: April
24, 2006
Roll Call
Number: 06-772
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 to provide rehabilitation
assistance in low-income owner-occupied housing that contains lead based paint. (Council
Communication No. 06-237) Moved by Hensley to adopt. Motion Carried 7-0.
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.
BOARD/COMMISSION
ACTION(S): NONE
ANTICIPATED
ACTIONS AND FUTURE COMMITMENTS:
If the grant application
is successful, future Council action will be needed to sign a grant agreement
with the Federal Home Loan Bank and