Council Communication Office of the City Manager	Date	April 20, 2009
	Agenda Item No. 31 Roll Call No. 09- Communication No. 09-250 Submitted by: Larry Hulse, Community Development Department Director

AGENDA HEADING:

Authorizing submittal of two Single-family New Construction applications for Community Development Block Grant (CDBG) funds to the Iowa Department of Economic Development (IDED).

SYNOPSIS:

Recommend authorizing the submittal of two applications for supplemental CDBG disaster funds for the construction of 27 new housing units to replace the units destroyed in the flooding of 2008. The City of Des Moines has targeted properties for “buyout” or acquisition/demolition relocation in the Birdland area and the Four Mile Creek area. These targeted properties were completely destroyed by the flood and have sellers that are willing to relocate. These new units will replace the units lost and ownership would be targeted at families that fall at or below 100% Area Median Income.

FISCAL IMPACT:

Amount: Application 1: 2200 Block of Forest Avenue Redevelopment Project (14 Units--$842,857)

Application 2: Habitat for Humanity Scattered Site Project (13 Units--$503,061)

Funding Sources: The Iowa Department of Economic Development is administering the Community Development Block Grant (CDBG) Disaster Recovery Funds per a statewide allocation plan approved by Housing and Urban Development.

ADDITIONAL INFORMATION:

Overview of Funding and Program Guidelines:

The State of Iowa published an Action Plan for Disaster Recovery (Action Plan) that describes the proposed use of U.S. Department of Housing and Urban Development (HUD) CDBG funding associated with the Supplemental Appropriations Act, 2008 (Public Law 110-252, approved June 30, 2008) for disaster relief of unmet needs resulting from tornadoes and flooding in the state.

This Action Plan outlines the recovery activities that are taking place across the state such as Jumpstart, Infrastructure Repair, and Small Business Assistance. One additional proposed activity is the construction of new housing units to replace the units lost in the floods. IDED has initially allocated $20 million statewide for this activity. Additionally the Action Plan outlines a strategy for allocation and/or application of funds which divides the state up into 11 eligible entities (6 Super Council of Governments or COG areas and 5 entitlement cities). Des Moines is one of those entitlement cities and is applying for funds to construct a total of 27 new units to replace the 29 units targeted for “buyout” or acquisition/demolition in the Four Mile Creek and Birdland areas.

Application 1: 2200 Block of Forest Avenue Redevelopment Project ($826,000)

This project is proposed for the site located at 23^rd and Forest in the Drake Neighborhood. The land is owned by the City of Des Moines and was primarily acquired through the Urban Renewal process. The site used to be the home to a blighted gas station. The gas station has recently been razed and the site is being prepared for redevelopment.

Preliminary concept drawings done by RDG, propose, four urban, rowhouse-style structures that are two-stories in height. Each structure contains three units, for a total of twelve units fronting on Forest Avenue. Rowhouse units will include three or four bedrooms and two bathrooms, with up to 1,860 square feet of living area with an attached garage stall in the rear.

Additionally, two single-family infill homes will be constructed on two vacant lots on 22^nd Street. Each infill home contains three or four bedrooms with a minimum of two bathrooms. The homes will be two-stories with approximately 1,600 square feet to match the size and scale of the adjacent homes. Detached garages may be constructed in the rear yard matching the character of the surrounding neighborhood.

Preliminary steps are being undertaken to solicit developer interest in the project. Developer letters of interest are due by the end of May, 2009. Developer selection and conveyance of land is targeted for the end of August with the ultimate goal of having development complete by the end of 2010.

Application 2: Habitat for Humanity Scattered Site Project

This application consists of thirteen single-family Habitat for Humanity homes scattered in neighborhoods throughout the city of Des Moines. Ten of these homes would be completed and occupied by the end of 2009 with the other three being completed and occupied by May of 2010. These houses would range from three to five bedrooms with the majority being four bedroom homes.

PREVIOUS COUNCIL ACTION(S): NONE

BOARD/COMMISSION ACTION(S): NONE

ANTICIPATED ACTIONS AND FUTURE COMMITMENTS:

Selection of developer and conveyance of Forest Avenue site will be brought back to Council for approval.

For more information on this and other agenda items, please call the City Clerk’s Office at 515-283-4209 or visit the Clerk’s Office on the second floor of City Hall, 400 Robert D. Ray Drive. Council agendas are available to the public at the City Clerk’s Office on Thursday afternoon preceding Monday’s Council meeting. Citizens can also request to receive meeting notices and agendas by email by calling the Clerk’s Office or sending their request via email to cityclerk@dmgov.org.