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Date
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November 9,
2009
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Agenda
Item No. 29 Roll
Call No. 09- Communication No.
09-794 Submitted by:
Larry Hulse, Community Development Director |
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AGENDA
HEADING:
Approving
the template format of lien and mortgage documents to be used within the City
of Des Moines Jumpstart Housing Assistance Program.
SYNOPSIS:
On June 30, 2009, Council Authorized the Mayor to
sign Major Amendment #5 of the Community Development Block Grant (CDBG) Housing
Disaster Recovery Fund Contract with the Iowa Department of Economic
Development (IDED) (Contract Number 08-DHR-009) (Roll Call #09-1156). This contract amendment added the
funds for the construction of 13 Habitat for Humanity units into an existing
contract held between the City of Des Moines and IDED. Community Development Block Grant Disaster
Recovery (CDBG-DR) funds will be used to help subsidize the construction of
these units. The template document for
consideration will secure the funds in a lien, in the form of a five year forgivable
loan against the subsidized property.
The format for consideration is based off existing liens the
Neighborhood Conservation Services Division uses for similar projects
subsidized by Federal funds.
FISCAL
IMPACT:
Amount:
N/A
Funding
Sources: The funds for this program are already in
place and are under contract. The Iowa Department of Economic Development
is administering the Federal Community Development Block Grant (CDBG) Disaster
Recovery Funds per a statewide allocation plan approved by the Department of Housing
and Urban Development.
ADDITIONAL
INFORMATION:
Overview
of Funding and Program Guidelines
The State of Iowa published an action plan for
Disaster Recovery that describes the proposed use of U.S. Department of Housing
and Urban Development (HUD) CDBG funding.
This action plan outlines the recovery activities 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 during
the floods. IDED has initially allocated
$20 million statewide for this activity.
On April 20, 2009 Council authorized City Staff to
submit two applications (Roll Call #09646).
The first application was for the 2200 Block of Forest Avenue
Redevelopment Project. This application
has not been funded at this time. The
second project is the Habitat for Humanity Scattered Site Project. The City of Des Moines authorized receipt of
funds for this project through approval of Major Amendment #5 (Roll Call
#09-1165).
The
funded application consists of thirteen single-family Habitat
for Humanity homes scattered in neighborhoods throughout the City of Des Moines. Ten of these homes will be completed and
occupied by the end of 2009 with the other three being completed and occupied
by May of 2010. These houses will range
from three to five bedrooms.
The Community
Development Block Grant Disaster Recovery (CDBG-DR) funds provided from IDED
will be used to help subsidize the construction of these units and make them
affordable to low-income families. The
template document for consideration will secure the funds in a lien, in the
form of a five year receding forgivable loan with payback required if the
assisted homebuyer sells, vacates, rents, or abandons the purchased property at
any time for the five years. The format
is based off existing forms the Neighborhood Conservation Services Division
uses for similar projects. Once the
homes are completed the new homeowner will sign the attached document to secure
the subsidy (CDBG-DR) funds for a five year period. After the five years has expired the lien
will then be released.
PREVIOUS
COUNCIL ACTION(S):
Date: June 30, 2009
Roll
Call Number: 09-1165
Action: Authorizing the Mayor to sign Major
Amendment #5 of the Community Development Block Grant Housing Disaster Recovery
Fund Contract with Iowa Department of Economic Development (Contract Number
08-DHR-009). (Council Communication No. 09-438) Moved by Vlassis to approve. Motion Carried 5-2.
Date: April, 20, 2009
Roll
Call Number: 09-646
Action: Authorizing
submittal of two single-family new construction applications for Community
Development Block Grant (CDBG) funds to the Iowa Department of Economic
Development (IDED). (Council
Communication No. 09-250) Moved by Vlassis to adopt.
Motion Carried 7-0.
Date: October 13, 2008
Roll
Call Number: 08-1810
Action: Approving
CDBG Housing Disaster Recovery Fund Contract with Iowa Department of Economic
Development. Sponsor: Mahaffey. (Council
Communication No. 08-628) Moved by Mahaffey to adopt. Motion Carried
6-1. Absent: Cownie.
BOARD/COMMISSION
ACTION(S): NONE
ANTICIPATED
ACTIONS AND FUTURE COMMITMENTS: NONE
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,