HomeMy WebLinkAboutIowa Economic Development-5/29/2012C,v
hi 1,9
Iowa Economic Development Authority
Community Development Block Grant (CDBG) Program
Contract Amendment
Recipient: City of Waterloo
Contract Number: 08-DRH-011
Contract Amendment Number: Fourteen (14)
Amendment Effective Date: April 19, 2012
The Iowa Economic Development Authority (IEDA) hereby amends the above referenced Community
Development Block Grant (CDBG) Program contract by Extending the Contract End Date; Amending in SFNP
Round 4 Guidance "N" and Amending in SFNP Round 4 Award.
•
The contract by and between the Iowa Economic Development Authority ("Department or IEDA") and City of
Waterloo ("Recipient") is amended as of the date shown above as follows:
AMEND each Article in the Contract that refers to "Attachment A, Program Description and Budget" to
"Attachment A, Program Description and Budget, as amended."
AMEND AWARD AMOUNT from $2,331,063 to $3,029,809. .
AMEND Contract End Date to: April 30, 2014
Except as otherwise revised above, the terms, provisions, and conditions of the Contract remain unchanged and
are in full force and effect.
RECIPIEN1 City of Waterloo
BY•
Mayor, City of Waterloo
IOWA ECONOMIC DEVELOPMENT AUTHORITY
BY:
Timothy R. Waddell, Division Administrator
IOWA CDBG DISASTER RECOVERY HOUSING FUND PROGRAM DESCRIPTION & BUDGET
ATTACHMENT A
DATE: April 19, 2012
Name of Recipient: City of Waterloo
Contract Number: 08-DRH-011 1
To be filled in by IDED '
Original
Amendment # Fourteen (14)
Proj Mgr Sign jml
ACTIVITY DESCRIPTION
PERFORMANCE TARGETS/MEASURE
NATIONAL
OBJECTIVE
BUDGET
Activity 1: 971 Housing Repair/Rehabilitation
for families <80% LMI
$60,000 per unit maximum
5 UNITS
LMI
$100,648
Activity 2: 972 Housing Repair/Rehabilitation
for families 80 - 100% UN
$60,000 per unit maximum
1 UNIT
UN
$25,952
Activity 3: 981 Homebuyer Assistance
for families <80% LMI
$60,000 per unit maximum
0 UNITS
LMI
$0
Activity 4: 982 Homebuyer Assistance
for families 80 - 100% UN
$60,000 per unit maximum
0 UNIT
UN
$0
Activity 5: 992 Interim Mortgage Assistance
for families 0 - 100% UN
0 UNIT
UN
$0
Activity 6: 975 Jumpstart Express
for families <80% LMI
20 UNITS
LMI
$537,000
Activity 7: 976 Jumpstart Express
for families - 80 - 100% UN
7 UNITS
UN
$150,000
Activity 8: 871 Single Family Unit Production
New Construction <80% LMI
27 UNITS
LMI
$1,827,460
Activity 9: 872 Single Family Unit Production
New Construction - 80 - 100% UN
15 UNITS
UN
$319,080
GENERAL ADMINISTRATION 181
$69,669
TOTAL BUDGET:
$3,029,809
G:\BCF\Recipients\Disaster\08DRH\Waterloo - 011\Attachment A\AttachAWaterloo 08-DRH-011Amend14.xlsx
Update Revisions — January 18, 2012 - Final
Attachment N
Single -Family Unit Production – New Construction – Round #4
• All participating CDBG Disaster Recovery Housing Recipients are being
provided funds for new construction/gut reconstruction of single-family
dwelling units within your jurisdictions. Funding for Round #4 of this
activity totals $25,000,000 and will be allocated to participating recipients
per the allocation formula attached. An amount "up to" these allocation
amounts will be amended into recipient contracts following receipt, review
and approval of recipient's development plans that will be prepared based
on the allocation formula amounts.
® For the expanded COG regions, this activity will only be allowed in
incorporated communities within your jurisdictions. The expanded COG
regions will. need to determine where best (within your jurisdictions) to
construct single-family housing. Consideration (even prioritization) should
be given to conducting this activity within communities that have acquired
Tots with FEMA and/or CDBG buyout funds.
• Based on the formula allocation budget amount, recipients are to prepare
and submit for our review and approval a detailed development plan for
this activity. Development plans shall minimally detail all of the following:
- Unit by unit specifics, including but not limited to: unit size (square
footage); style of unit (e.g., ranch, two-story; story and one half, etc.);
stick -built, manufactured housing or gut reconstruction; single-family
detached or condominium style descriptions; number of bedrooms,
number of bathrooms; full basements, crawl spaces or slab on grades;
other amenities; Iowa Green Streets Criteria compliance, as applicable
(green development plan and checklist); total development cost (which
needs to be the same as the sales price or the appraised fair market
value, whichever is less); identification of the CDBG-DR 25% subsidy
amount based on the total development cost; developer or builder
identification; location of the unit (address and/or legal description);
developers fee (up to 15% of the price of the house unless the lot is
provided by the city—if the city provides the lot, the developers fee will
be 15% of the cost of the house minus the value of the lot).
- A summary of the above, project by project / builder by builder /
location by location and a grand total summary depicting total project
costs;
- Project delivery costs. Define what this entails, cost, and by whom
project delivery costs will be performed and incurred (project delivery
costs cannot exceed $5,000 per unit);
Final total project development costs (for budget summary) depicting
the total CDBG-DR subsidy amounts requested for the units.to be
constructed; the total project delivery costs (all units); a calculation of
1
Update Revisions — January 18, 2012 - Final
the general administration funds amount based on the above; and a
grand total of CDBG-DR funds.
• Submission of development plans to the IEDA are due by no later than
-February 29; 2012; but may be submitted earlier. Development -plans need
to be complete and accurate. The IEDA will require a minimum of 30 days
for its review and approval of individual development plans. It is the
IEDA's goal to approve all development plans and have activity funds
amended into contracts ahead of the 2012 construction season.
• Recipients will have until March 15, 2013 to have all single-family dwelling
units funded under this activity under construction.
• Recipients need to determine the development team members that will be
involved in this activity (project by project, if more than one, within your
jurisdictions) prior to the recipient's development plan submission to the
IEDA. You will need to be able to convey within your development plans
all of the development team members and their respective roles and
responsibilities in the proposed projects. Development team members
may include, but are not limited to:
Program administrator / overseer;
Builder(s) or developer(s) of the single-family housing;
- Architectural / Engineering (A/E) or design services, as applicable;
Lender(s) and Loan Closer(s);
Energy Rater firm(s);
Realtor(s), if involved;
- Monitoring of assisted properties during the five year affordability
period;
Etc.
• This activity is limited to newly constructed or gut reconstruction of single-
family / single unit dwelling units. Manufactured single-family dwelling
units are permissible providing they are affixed to a permanent foundation
and will be taxed as real property upon completion. Condominium style
single-family projects for individual homeownership are also permissible.
• Gut reconstruction — regardless of year the house was built, gut rehab will
be "down to the studs renovation." All houses must be up to code
standards. If the woodwork is historic and salvageable, it may be retained
for reuse, but not drywall.
• Development plans will need to be specific project by project and include
all projects and units.
2
Update Revisions— January 18, 2012 - Final
• Houses built under this activity shall be made available for sale only to
persons or households whose incomes are at or below the median (80%)
income limits as established by HUD, by county and by household size.
There is a maximum per unit development cost cap of $150,000.
• If the above criteria cannot be achieved with funds allocated, recipients
will have one of two options:
o Propose an altemative(s) to newly constructed single-family
housing, such as newly constructed multi -family housing, such as
condos. Remember that this is a homeownership program, so
"rental" new construction is not allowed. Condominium style single-
family projects for individual homeownership are permissible.
o Any alternative housing activities proposed must, however,
meet the CDBG-DR requirements and limitations of those
activities. Funding for any alternative activity needs to come
from the funding amount allocated under this Single —Family
Unit Production — New Construction Round #4 formula
allocation. Development plans will have to clearly define all such
proposed alternatives; or
o Accept a twenty-five (25%) reduction to the formula allocation
amount provided, and subsequently reduce the total scope and
overall production unit numbers that can be achieved. The
reduced number of units within the reduced allocation amount
must still be held to a maximum per unit development cost cap
of $150,000, and must be made available for sale only to
persons or households whose incomes are at or below 80% of
the median family income limits as established by HUD, by
county and by household size. Funds from the reduced
allocation amount may be used for lot cost buydowns.
Development plans will need to clearly convey the details of
proposed lot buydowns.
® Infrastructure in support of single-family housing development or
redevelopment. The IEDA recognizes that lots on which to construct
single-family housing under this activity may not be readily available.
Some communities may need to develop building lots or develop, even
create, subdivisions with multiple lots. Some communities, those with
buyouts of 500 -year flood plains, are desirous of redeveloping areas or
neighborhoods.
Under this activity and within the formula allocation amount to be provided,
the IEDA will allow up to one-half of the allocated funds to be used for
infrastructure in support of housing. Details, restrictions, limitations and
guidance on the infrastructure in support of housing are placed at the end
of these guidelines.
3
Update Revisions — January 18, 2012 - Final
• There is a maximum per unit CDBG-DR downpayment or mortgage
buydown cap of 25% of the sales price or appraised fair market value
(whichever is less) to the homebuyer.
Assistance -under this activity is provided as downpayment or mortgage-- -
buy -down at the assisted homebuyer's individual principal loan closing.
Assistance under this activity will not be allowed to be combined with
Federal Jumpstart Homebuyer Assistance or State Jumpstart
Downpayment Assistance or Single Family Unit Production — New
Construction from the other rounds of funding on the same dwelling unit or
to the same person / household (homebuyer) served.
• Effectively, the CDBG-DR funds are used to buy -down the cost -to -
construct, including the land on which it is constructed, to an affordable
sales price and an affordable loan amount for income eligible
homebuyers.
• Recipients will be allowed to use CDBG-DR funds for reasonable, usual
and customary buyer's side closing costs in an amount not to exceed 3%
of the unit purchase price. Buyer's side closing costs, if locally allowed,
shall be deducted from the 25% subsidy limitation, subsequently reducing
the subsidy amount down to as low as 22% of the per unit development
cost cap. Development plans will need to address whether or not buyer's
side closing costs will be allowed to be paid for with CDBG-DR funds, and
will need to describe what will be considered as allowable buyer's side
closing costs.
• Newly constructed/gut reconstruction single-family dwelling units under
this activity shall not be constructed in a 100 -year flood plain or within buy-
out areas, known or proposed. The exception to the buyout area limitation
is that the IEDA will allow units to be constructed in buyout areas located
in the 500 -year flood plain that are specifically being bought out for the
designated purpose of redevelopment and approved for such in the
CDBG-DR funded buyouts.
• All newly constructed single-family units shall be designed and
constructed in accordance with all locally adopted and enforced building
codes and standards. In the absence of any locally adopted and enforced
building codes or standards, the requirements of the Iowa State Building
Code shall apply.
• It is the IEDA's goal to utilize the CDBG-DR funds in a manner that results
in green -built, sustainable single-family structures.
For -all available in -fill lots and all available (currently existing) sub -division
lots for single-family construction under this activity, all newly constructed
4
Update Revisions — January 18, 2012 - Final
single-family housing should, to the extent possible, meet the
requirements of the Iowa Green Streets Criteria (particularly structure
design considerations, not necessarily site related aspects).
For newly created sub -division lots (including approved redevelopment
areas) created specifically for this activity and made available for single-
family construction under this activity, meeting the Iowa Greens Streets
Criteria is required (unit design considerations and site related
considerations). The Iowa Green Streets Criteria "green development plan
and checklist" shall be submitted for all such units within respective
development plan submissions.
• Lots (land), on which to construct the single-family housing proposed,
need to be identified and conveyed within development plan submissions
(addresses and/or legal descriptions, all individual lots). Where possible
site control needs to be obtained by the builders or developers of this
single-family housing prior to development plan submission.
Where a new sub -division or newly created lots are proposed within
development plan submissions, all details will also need to be submitted,
including but not limited to: land acquisition costs; ownership of the
development site(s); site preparation needs; infrastructure needs; zoning;
timing; etc.
Redevelopment areas (bought out 500 -year floodplain areas) will also
need to address the above -stated details within development plans. In this
scenario, the community where the buyout has occurred or will occur will
be the owner of such lots for single-family construction. Details need to be
provided depicting the transferring of acquired lots to builders / developers
of single-family housing under this activity.
In the case of gut reconstruction, site control is required either by the
developer or the city.
• Recipients will be allowed general administrative funds not -to -exceed two
percent (2%) of the activity allocation amount (calculatedby considering
the total of all project -related costs as ninety-eight percent of the total
amount).
• Recipients will be allowed "project delivery costs" in an amount not -to -
exceed $5,000 per unit. Per unit project delivery costs may be included on
top of (in excess of) individual project development costs. Project delivery
costs include, but are not limited to:
Marketing of the activity and individual newly constructed units (if not
the individual builder's or developer's responsibility);
Oversight / coordination of the development team members and their
roles and responsibilities, unit by unit and project by project;
Homebuyer application intake;
Income eligibility determination and verification;
5
Update Revisions — January 18, 2012 - Final
- Pre -qualification or pre -approval of homebuyers if you chose to do so;
- Construction oversight and coordination, as applicable;
- Participation in individual mortgage loan closings;
- Etc.
NOTE: Since the IEDA is allowing -a builder -/-developer fee of up to ---
15% of the price of the house ; design costs, energy rating costs and
seller's side real estate commission fees should be compensated for
(built into) the builder's / developer's fee rather than the project delivery
costs that are capped at $5,000 per unit.
• Development plans shall identify, for participation in this activity, at least
three regulated lenders and obtain from them a commitment of their
.willingness to participate. There needs to be adequate lender choice
opportunities available to assisted homebuyers. Individual principal
mortgage loans may then be tailored around the participating lender's
underwriting criteria and the loan products offered by these lender(s).
• Participating lenders shall offer principal loan products that minimally meet
the following criteria:
Loan interest rates cannot be higher than four percentage points above
the federal prime interest rate at the time of loan commitment;
Loan -to -value ratios (LVRs) at 75% (as the CDBG-DR funds will be
used to subsidize 25% of the per unit development. cost);
No Tess than a 15 -year, fully amortized, fixed-rate mortgage may be
used (early pay-off provisions must be allowed); and
No adjustable rate mortgages or balloon payment types of mortgages
will be allowed.
• The participating builder(s) of the single-family housing under this activity
shall obtain their own construction financing for all dwelling units they
construct.
• Builders will be allowed a builders fee (overhead and profit) not -to -exceed
fifteen percent of the cost of construction, of each individual dwelling unit.
Builder's fees shall be included within the sales price or appraised fair
market value.
• All assisted persons or households (homebuyers) must be able to support
a mortgage (at or greater than the bought -down / subsidized purchase
price), documented with a firm loan commitment prior to committing to the
CDBG-DR funds subsidy.
• The assisted home must be the primary residence of the assisted persons
or households (homebuyers).
6
Update Revisions — January 18, 2012 - Final
• Homebuyer purchased properties under this activity must result in
ownership in the form of fee simple title or 99 -year leasehold.
Condominium single-family structures shall have deed restrictions or
covenants in place prior to sale regarding this type of ownership.
• The CDBG-DR funds subsidy amounts provided to assisted homebuyers
(not including project delivery costs or general administration) must be
secured as a mortgage lien on the assisted homebuyer's purchased
property behind (recorded in junior position) the principal lender's
mortgage loan. The assistance (subsidy) shall be provided as a five-year
receding forgivable loan. Payback of funds will be required if the assisted
homebuyer sells, vacates, rents or abandons their purchased property any
time within the five year period.
• With the exception of a Habitat for Humanity principal loan product (where
there are typically two principal mortgages involved), the principal
mortgage loan must be the only repayable loan in all individual homebuyer
assistance projects under these proposals.
• The CDBG-DR funds forgivable loan may be recorded in junior position to
the principal loan, but must be recorded in senior position to any and all
other funding in all projects (with the exception of a Habitat for Humanity
loan). Additionally, recipients must maintain their assistance security
agreements in the above -stated recording position throughout the five-
year period, and will not be allowed to subordinate the required recording
position to any other forms of assistance, such as refinancing or home
equity loans for the five-year period.
• Refinancing, to lower the mortgage interest rate, will be allowed during the
5 -year affordability period. However, no less than a 5 -year, fully
amortized, fixed-rate mortgage will be accepted. No refinancing will be
allowed during the 5 -year affordability period where funds/equity is
withdrawn.
Infrastructure in support of Housing — New Housing,
Production (Single -Family)
• This activity will include the construction of certain infrastructure to support
new single family construction. This will include streets, sewer and water
extensions to serve the area(s) to be developed.
• The required development plan must include a detailed cost for the new
infrastructure and a map of the proposed area to be developed. The
development plan must also include commitments for the construction of
7
Update Revisions — January 18, 2012 - Final
all other utilities (e.g., gas, electricity, telephone, cable, etc.) These
utilities are not considered as eligible activities under the infrastructure in
support of housing.
• The local government, in which the infrastructure in support of new
housing is proposed, will be the applicant for these funds. Applicants
seeking infrastructure in support of housing will be required to justify the
need for the infrastructure and provide appropriate documentation to
support the need.
• In the expanded COG regions, awards for infrastructure in support of
housing will be made to the local government where the housing
development will be located, and a separate contract between the IEDA
and the local government will be required for the infrastructure component.
Awards to the cities of Cedar Falls, Cedar Rapids, Des Moines, Iowa City
and Waterloo that are direct applicants will receive a single contract and
the infrastructure will be included in the housing development activity.
• For newly developed areas such as new subdivisions that will yield
multiple lots for single family unit development, the infrastructure
extensions and expansions must be "specific" only to the lots/area being
developed for the Single -Family Unit Production — New Construction —
Round # 4 activity. The infrastructure must also be designed and sized
appropriately only to those Tots/areas being developed for the activity to
avoid over -building or building for future development.
8