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Date
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June 30,
2009
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Agenda
Item No. 6 Roll
Call No. 09-
Communication No.
09-440 Submitted by:
Larry Hulse, Community Development Director |
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AGENDA
HEADING:
Authorizing submittal of Disaster Damage Housing
Assistance Grant Fund (Jumpstart State 3) Application to the Iowa Finance
Authority (IFA).
SYNOPSIS:
Recommend
authorization of City Staff to submit an application, attached as Exhibit A, to the Iowa Finance Authority for additional
state funding to assist with the recovery efforts from the heavy rains and
flooding of 2008. These new funds were
made available for localities to apply for under Senate File 376. Funds will be used to assist homeowners
through the Jumpstart Housing Assistance Program.
FISCAL
IMPACT:
Amount:
$500,000
Funding
Sources: The Iowa Finance Authority is providing the
funding for the Jumpstart Housing Assistance Program through the Disaster
Damage Housing Assistance Grant Program.
ADDITIONAL
INFORMATION:
On September 30, 2008, by Roll Call 08-1711, Council
approved the Jumpstart Housing Assistance Program Grant Agreement with the Iowa
Finance Authority which provided funding for three housing programs to assist
residents impacted by the flooding events of early last summer. The programs
which were created will allow Des Moines residents impacted by last summer’s
events to access assistance for down payment assistance, housing
repair/rehabilitation, and interim mortgage assistance. This program is for owner-occupied households
that have been approved by FEMA for housing assistance.
The City
of Des Moines was allocated $658,711.43 for the State Jumpstart Housing
Assistance Program through a grant agreement with IFA. An additional $790,453.71 was provided for
this program through the First Amendment to the Grant Agreement (approved by
Council February 9, 2009 by Roll Call 09-236).
The
primary focus of these funds will be to assist Jumpstart applicants that were unable
to get assistance due to their income or the assessed value of their
homes. We currently have one applicant
who is over income and six applicants who are in the situation where the low
assessed value of their structure prevents needed repairs. In many of these cases, expensive foundation
work is needed on houses that are only assessed between $20,000 and $30,000. This new funding will allow needed repairs to
be made, to stabilize the structures and to keep families in their homes.
The City
of Des Moines continues to have State 2 and Federal CDBG Jumpstart funds available. These new funds would be used in conjunction
with the existing funds to complete needed repairs. For example, if an applicant is eligible, the
first $24,999 of the project will be funded by Federal CDBG funds. Additional funding would be provided by State
2 (up to 60% of assessed value) and the remaining funds needed would be awarded
through State 3. While these cases are few
and far between, there are several cases where the only option for the family
(due to inability to finance a replacement home) is to repair the home, even
though the cost of repairs may meet or exceed the assessed value of the home.
No other
funding source exists for applicants who are over 150% Area Median Income. There is one applicant who is over income,
but may otherwise be eligible for assistance.
If this funding is awarded, other applicants who thought they previously
didn't qualify may come forward for assistance.
PREVIOUS
COUNCIL ACTION(S):
Date:
February 9, 2009
Roll
Call Number: 09-236
Action: Approving First
Amendment to Jumpstart Housing Assistance Program Grant Agreement with the Iowa
Finance Authority (IFA) for financial assistance to eligible residents for home
repairs due to heavy rains and flooding during 2008. Sponsor: Mayor Cownie. (Council
Communication No. 09-073) Moved by Kiernan to approve. Motion Carried 6-1. Absent: Cownie.
Date: September 30, 2008
Roll
Call Number: 08-1711
Action: Approving Jumpstart Housing Assistance Program Grant Agreement and Application for Jumpstart Small Business Assistance and CDBG Supplemental Funds to assist with recovery efforts due to flooding. Sponsor: Mahaffey. (Council Communication No.
08-589) Moved by Mahaffey to refer to the City Manager to review energy efficiency and elevation of the homes and businesses. Motion Carried 6-1.BOARD/COMMISSION
ACTION(S): NONE