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HomeMy WebLinkAboutIowa Department of Economic Development-6/28/2010Iowa Department of Economic Development Community Development Block Grant (CDBG) Program Contract Amendment Recipient: City of Waterloo Contract Number: 08-DRH-211 Contract Amendment Number: Two (2) Amendment Effective Date: April 30, 2010 The Iowa Department of Economic Development (IDED) hereby amends the above referenced Community Development Block Grant (CDBG) Program contract by increasing the budget and changing the performance targets. The contract by and between the Iowa Department of Economic Development ("Department or IDED") 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 $1,047,583 to $$2,094,683. AMEND Attachment J Single -Family Unit Production — New Construction with Infrastructure in Support of Housing (Round 2) into the contract. Except as otherwise revised above, the terms, provisions, and conditions of the Contract remain unchanged and are in full force and effect. RECIPIE: City of Waterlo BY: Mayor, City of Waterloo (01Agilpo IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT BY: Timothy R. Waddell, Division Administrator IOWA CDBG DISASTER RECOVERY HOUSING FUND PROGRAM DESCRIPTION & BUDGET ATTACHMENT A Name of Recipient: City of Waterloo Contract Number: 08-DRH-211 ESCRIPTION ................................ ••••••••••••••••••••••••-• •••••••••••••••••••••••••••••• NMONAL OBJETIVE DATE: April 30, 2010 Disaster Recovery Housing Activities: Jumpstart Express Homeowner Repair/Rehabilitation Program Homeowner Repair/Rehabilitation Program Rental Rehabilitation (Small, 7 units and under) Program Interim Mortgage Assistance Program Rental Rehabiilitation (Large, 8 or more units) Program $1,025,983 Activity 2: 871 New Production — Owner Single Family 10 Units LMI $515,300 Activity 3: 872 New Production — Owner Single Family 10 Units UN $515,300 GENERAL ADMINISTRATION 181 $38,100 TOTAL BUDGET: $2,094,683 G:\BCF\Recipients\Disaster\O8DRH\Waterloo - 211\AttachAAmendTwo.xlsx Final February 8, 2010 Attachment J Single -Family Unit Production — New Construction With Infrastructure in Support of Housing (Round 2) • Round 2 of Single -Family Unit Product — New Construction with Infrastructure in Support of Housing will be limited to an overall amount of $30,000,000. • Instead of entertaining individual applications from our eleven recipients, a formula allocation of these funds to all eleven recipients (attached). • In lieu of individual proposals or applications we will be looking at more of a "development plan" approach.. Development plans will need to be prepared by each of you based on the formula allocation dollar amount. The IDED will review and approve your development plans. • Submit your proposals to the IDED by no later than May 1, 2010. • For the most part, this round of funding, in terms of requirements, will be very similar to the guidance found in Attachment H — Single - Family Unit Production — New Construction of your existing contracts with the IDED, with the following exceptions: - The acquisition subsidy level will be reduced to 25% of the purchase price / fair market value; One-half of all single-family units produced under this round of this activity must be held to a total unit production cost (purchase price) of $150,000 per unit; 50% of all units constructed must be sold to persons or households whose incomes are at or below 80% median family income, and the development plan must specify your method of achieving this requirement; - Development plans may address and compensate for other indentified housing activities (other than newly constructed single-family) should the $150,000 per unit limit on one-half of the units be a problem (e.g., newly constructed multi- family). Any other housing activities proposed must meet the requirements of those activities and the cost of such housing would need to be included within the formula allocation amount provided; The Iowa Green Streets Criteria will apply to all units produced, including all site considerations; and Final February 8, 2010 - All building Tots will need to be identified and site control must be obtained (option or purchase agreement). • Other than the differences pointed out above, all other Attachment H requirements apply Newly constructed units can only be built in incorporated communities - Development teams need to be determined up front Single-family, single unit dwellings. Manufactured housing and condominium style single-family housing is permissible - Other than the new target of the units to LMI (80% MFI), all other units may go as high as 100% of MFI The CDBG assistance is to be provided as acquisition assistance at principal loan closing - Cannot combine this assistance with Federal Homebuyer Assistance or State Downpayment Assistance - Other than the target of of the units at or below $150,000, all other units are capped at a$180,000 - No new construction in the 100 -year flood plain or within buyout areas will be allowed - Must meet all applicable building codes, standards and ordinances - General administration is limited to 2% of the total CDBG funds allocated for this activity - Project delivery costs are limited to $5,000 per unit - For the principal loans in these deals, only regulated lenders may be used. Several local lenders should be identified and committed to participating Minimum loan parameters: a) no higher than 4% above federal prime rate; b) 75% loan -to -value ratios; c) no less than a 15 year, fully amortized, fixed rate mortgage; d) no adjustable rate or balloon payment types of mortgages allowed - Builders will need to obtain their own construction financing Up to 15% builders fee allowed per unit - Assisted homebuyers must obtain a principal loan commitment Ownership must be in the form of fee simple title or 99 -year leasehold - The CDBG acquisition subsidy will be provided in the form of a 5 -year receding forgivable loan, recorded and maintained in second position to the principal loan Final February 8, 2010 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 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. • Awards for infrastructure in support of housing will be made to the local governmental entity, and a separate contract between the IDED and the recipient community will be required for the infrastructure component. • For newly developed areas such as new subdivisions the will yield multiple lot for single family unit development, the infrastructure extensions and expansions must be "specific" only to those Tots/area being developed. The infrastructure must also be designed and sized appropriately only to those lots/areas being developed to avoid over -building or building for future development. • The new construction must meet the CDBG National objective of primarily benefiting low and moderate income persons which means that 51% of those benefiting must be at or below 80% of the median family income.