HomeMy WebLinkAboutIDED Housing Fund General Application - 11/21/2005 e.a -;I.,. ams-ion 5
ID Number
HOUSINGIDED •
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Activity Type Other Applications Filed Applicant Organization Type
❑ Rental ❑ LIHTC ® Local Government
❑ Tenant Based Rental Assistance ❑ USDA/RD ❑ For-profit
® Homeownership Assistance ❑ IFA ❑ Non-profit
❑ Owner-Occupied Rehabilitation ❑ FHLB ❑ CHDO
❑ Housing EZ
¢� ❑ Other:
Applicant Name: City of Waterloo, Community Development Taxpayer ID#: 42-6005327
CEO Name: Timothy J. Hurley Title: _Ma oy r, City of Waterloo
CEO Signature: �J
Applicant Address: 715 Mulberry Street Waterloo Iowa 50703
Street City State Zip
ele
phone ( 319 1 4301 Fax 319) 291 4286 Emad mayor waterloo is orq
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Name: Nancy Gulick Title: Comm. Dev. Coordinator Agency:
Address: 620 Mulberry Street Waterloo Iowa 50703
(Street) City State Zip
Telephone: ( 319)291-4429 Fax(319) 291-4431 Cell
Email Address: nancy.gulicktcDwaterloo-ia.orq
Provide the name(s) of the person(s) who represented you (the applicant) at the Iowa Dept. of Economic
Development's Housing Funding Application workshop held on September 1, 2005:
.Nancy Gulick yµ�.
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Project or program location: Address or area served: City: County:
Consolidated Urban Revitalization Area (CURA) Waterloo Black Hawk
Total#of units: 20 Housing Fund assisted #of units: 20
Total Housing Fund Request: $ 200,000 Total Other Funds: $ 378,163
Housing Fund Grant Request: $ 200,000 Housing Fund Loan Request:$ 0
Rate: Term:
Housing Fund General Admin. $ 0 Total General Admin. $ 77,000
Are any proposed activities located in a 100-year floodplain? Yes ❑ No
PART E. ACTIVITY SUMMARYDESCRIPTION)
Community Development proposes to assist twenty first time home buyers by providing down payment assistance
of$10,000 per unit for new construction assisted with City of Waterloo HOME funds for owner occupied single
family units in the Consolidated Urban Revitalization Area (CURA).
2006 Housing Fund Page 9
IIDED HOUSING ' • CONTINUED
Budget Summa (Housing Fund Request)
Check one:
❑ Rental ❑TBRA General Housing Fund
Activity ® Homeownership ADDI
Administration Total
Assistance
❑ Owner-Occupied Rehab
#of Units 20 20
(Housing Fund Assisted
Housing Fund Grant $200,000 $0 $200,000
Requested Amount
Housing Fund Loan $
Request Amount
Totals $ $ $ $200,000
Other Funds Summary
Grant/Loan Contact
Source of Funds (If loan, provide Use Commitment
(list all) Amounts interest rate and Person Telephone Status
term) Name
Federal HOME 200,000 Forgivable loan Down N. Gulick 319-291- Committed
payment 4429 for FY06
assistance
Federal HOME 101,163 Grant CHDO Activity N. Gulick Same Committed
for FY06
Federal CDBG 77,000 Grant Administration N. Gulick Same Committed
for FY06
$
Total Other Funds $378,163
Total Project Budget $578,163
Required Attachments for IDED Housing Fund Applications
All Applicants Must Include: (Please indicate page number or attachment location)
❑ Federal Assurance Signature Page
❑ Disclosure/Update Form
❑ Map(s)of project or activity location
❑ Legal description (s) for all identified sites (rental projects only)
❑ 15 Year Cash Flow Pro-forma (multi-family projects only)
❑ USDA application (If USDA is a source of project funds)
❑ Market Study (If required by another funding source)
❑ Construction financing commitment
❑ Long-term financing commitment(s)
❑ Sources and Uses of Funds (Rental)
❑ Rent calculation worksheet on provided form (Rental projects only)
❑ Amortization schedules (Housing Fund Loan and all other loans)
❑ 15-year cash flow pro forma (Rental projects only)
Local Government Applicants Must Include: (Please indicate page number or attachment location)
❑ Public Hearing Notice and signed and dated Minutes of the Hearing (refer to page 3)
❑ Community Needs Assessment(refer to page 5)
❑ Resolution committing local funds
For-profit and Nonprofit Applicants Must Include: (Please indicate page number or attachment location)
❑ W/9 Vendor Form
❑ Evidence of site control (Copy of signed lease, warranty deed, or purchase agreement option)
❑ Approval of site location by the local government(Letter or copy of resolution)
9006 Housinc Fund Page 10
HOMEOWNERSHIP ASSISTANCE APPLICATION
CITY OF WATERLOO,IOWA
REQUESTED FUNDING-$200,000
A. Activity Description
The City of Waterloo,using the HUD definition of first time homebuyer for its programs, has
prioritized increased home ownership since 1999, and proposes to expand the supply of decent
and affordable housing for low to moderate-income households by allocating$10,000 per
housing unit for 20 households as down payment assistance. This project will enhance the City's
priority efforts to improve home ownership opportunities.
Community Development has identified target areas in the City's Five-Year Consolidated Plan
for investment in home ownership for the next five years. Block Grant funds are used by the
Waterloo Housing Partnership (WHP)to teach Home Buyer Education classes and assist new
homebuyers in the process of obtaining conventional loans. In July 2005, the WHP position was
brought to the City so all operations are now under one roof. As a result of that transition,there
is an increased commitment to expand the supply of decent and affordable housing for low to
moderate-income individuals. The Consolidated Urban Revitalization Area(CURA)has been
established as the target area to assist new homebuyers with down payment assistance in
purchasing homes. The qualifications to obtain WHP down payment assistance are:
• Participating in the City's sponsored Home Buyer Education classes, which have served
over 1,735 clients to date,
• Purchasing a home in the targeted CURA. This area includes the Brownfields area and
portions of census tracts 1, 2, 3,4, 5, 7, 8, 17.01, 17.02, 18, and 19, with an increased
awareness and effort in the Brownfields area for homeownership and economic
development,
• Using personal funds of at least one percent of the purchase price towards the home
purchase,
• Meeting HUD income eligibility, and
• Obtaining a mortgage from one of the local full service financial institutions,namely,
Bank Iowa, Community National Bank, First Security Bank, John Deere Community
Credit Union, MidWest One Bank, Regions Bank,US Bank, and Wells Fargo Home
Mortgage.
Initially, all lenders used a 5/5 ARM; however, because the larger lenders could not offer that
portfolio loan product, a meeting was held with the lenders. It was agreed that they could use
any product that would be the most beneficial to the WHP borrower. Therefore, Fannie Mae,
Freddie Mac, VA, FHA and IFA loan products are now available. This decision was made in
September 2005. Since inception of the WHP program, over$18 million has been loaned from
the participating lenders.
With the increasing cost of affordable homes,the seven percent maximum the City uses for
down payment assistance is not meeting the needs of the targeted clientele. The Board of
Realtors most recent figures show the median purchase price for single-family housing in
Waterloo has grown from$106,000 last year to $115,000. Since the program began, the average
purchase price of the homes has grown from $33,525 to $64, 254. In FY2006,the average sales
price to date has been$67,000. There have only been five new construction homes purchased
with WHP assistance. We propose "layering" a five-year forgivable loan for down payment
assistance of$10,000 per unit, in conjunction with the City's HOME funded Down Payment
Assistance Program,to meet the needed funding for first time new construction homebuyers. In
addition, Black Hawk County allows for the abatement of real estate taxes for any home
improvements (adding a garage) within the CURA. This will be an added incentive to purchase
a new construction home.
We are using the federal recapture guidelines for HOME down payment funds, and will layer the
IDED funding to recapture any funds in the event of sale or default. The recorded mortgage
outlines the recapture provisions if the homeowner transfers or sells the property, and also
contains a statement that the mortgagor must occupy the property as their principal place of
residence. Homeowners are also required to sign a HOME Agreement that outlines the assistance
provided,the recapture provisions,property standards, and certification of principal residency.
(See attached documentation.) Contributing additional down payment assistance will allow our
participants to have a more affordable monthly mortgage payment, and by utilizing the State of
Iowa's Housing Fund, we can increase activity for this project by twenty(20) additional housing
units for first time homebuyers over the next two years.
This summer the second new construction home was started in the Brownfields area, an area that
has not had active new construction in 80 years. One developer, Cedar Valley Restoration and
Development(CVRD), will build an additional three homes in this area using an allocation of the
City's Economic Development Initiative (EDI) funds as a development incentive. CVRD has
already purchased the lots in the Brownfields area to complete this project. Another developer,
W. C. Stokes,has secured lots to construct five homes in the CURA. Two of these homes will
be completed by December, and the additional three are planned for spring 2006. This past fiscal
year,the Community Development Board allocated an additional $180,000 of HOME funds to
developers for new infill construction in the CURA. This brings the total to twenty-seven(27)
homes that would be eligible for this funding. We received $100,000 from the Housing Trust
Fund in March 2005 and would like to assist the other seventeen homes and an additional three
with this funding. These new homes are estimated to sell for an average of$110,0004120,000
in accordance with the developers that are committed to building new homes, and the market
value for Waterloo. HUD's published median purchase price for Waterloo is $164,000. These
homes will be priced less than 95% of median or less than $155,800. These new construction
housing units all have their own financing from local lenders. No direct administration funds
will be needed on a per unit basis, and since this request is for funding on new construction,no
lead hazards or temporary relocation funding is necessary. These new construction homes will
all be infill construction, so adequate infrastructure and utilities are already available.
The participating lenders are aware of this application, and look forward to the additional
assistance that could be offered to their customers to realize the American Dream. The Home
Buyer Education participants are also being made aware of the new construction projects, and
are eager to buy these new homes. But without this additional financial help,these homes will
not be affordable.
Since this allocation will be used for down payment assistance,this project will be considered a
"Finding of Exemption"under 24 CFR Part 58.34 (a) (11). However, since the City's HOME
funds were used for a developer incentive, an Environmental Review will be completed before
construction begins. For example, the City completed Environmental Reviews on the CVRD
properties and the Stokes lots before construction began.
New construction homes will meet the City of Waterloo's building codes and zoning ordinances,
including the Model Energy Code. We anticipate this funding to be used within two years of the
award. Presently,twenty-seven(27) new construction homes are either undergoing construction,
or are in the design stage in the Brownfields area. This additional funding will enhance
incentives for developers to continue their efforts in this area.
B. Need,Impact and Feasibility
The CURA target area is comprised of the Brownfields area and portions of census tracts 1, 2, 3,
4, 5, 7, 8, 17.01, 17.02, 18 and 19. There are 3,339 out of a total of 3,917 households, or 85
percent,of households in these census tracts that meet the low to moderate-income guidelines.
The Waterloo Riverfront Renaissance, the Cedar Valley TechWorks mall, and a new gambling
license for Waterloo are three of the most recent major projects that will require the employment
of many low to moderate-income households,therefore the need for new construction housing in
this affordable range will increase in the next five years. Four private developers, Cedar Valley
Restoration and Development, Stokes Development, Select Homes, and Shelter Construction
have taken the initiative and are constructing new homes in the Brownfields/CURA area utilizing
HOME funds in conjunction with their private funding. Iowa Heartland Habitat for Humanity
receives HOME CHDO funds for acquisition and site preparation to increase new construction
projects. The funding from this grant award will help twenty (20) additional households to own
new homes within the next two years. Through the Home Buyer Education classes,potential
buyers are educated to understand the process to increase their chances for mortgage loan
approval. Because of this, very few loans through our program are denied, however, a lender
may deny for insufficient income, too much debt or a poor credit rating.
Homeowner assistance has been given priority in the Five-Year Consolidated Plan(see attached
excerpts). There are many homes showing need of assistance in the City of Waterloo, with 322
homes identified as substandard housing. According to the 2000 census, there are 5,624 housing
units that cost less than $50,000 in the City of Waterloo, and there are 8,116 units between
$50,000 and$99,999. These two ranges comprise over 80 percent of the homes in Waterloo.
Also, according to the 2000 census,there are only 181 vacant housing units in the City for sale.
According to the comprehensive 1997 Housing Needs Assessment, 74 percent of homes in
Waterloo were in good condition, 20 percent were deteriorated,4 percent were seriously
deteriorated, and 1 percent was dilapidated. The City's rehabilitation program is addressing the
deteriorated homes, but the dilapidated homes are set for demolition requiring new housing for
these homeowners. Since these new construction homes will all be infill construction, no new
infrastructure will be needed. Our current housing stock,which continues to age and suffer
neglect, will increase the need for new construction in the older neighborhoods.
Housing improvement activities include owner occupied rehabilitation,rental rehabilitation,
emergency roof repair, new construction, down payment assistance, and lead safe housing
activities. The City recently received a Lead Grant from HUD to target our Brownfields/CURA
area, in conjunction with our Rehabilitation program,to assist housing units with young children
in eradicating lead based paint from their homes.
This requested funding will be for new infill construction housing in the Brownfields and
CURA,therefore existing infrastructure is available and will promote compact development. A
rezoning effort is underway to develop the Brownfields area surrounding the new infill
construction to promote homeownership and new single-family home construction. The City's
CDBG and Lead Grant funding continue to improve housing conditions through the
Rehabilitation program. The City is also utilizing administrative funds from the Waterloo
Housing Authority for Rental Rehabilitation in the Brownfields area, and we are also using funds
from an Economic Development Initiative grant to repair roofs and demolish dilapidated
structures in this area. The downtown Riverfront Renaissance effort will enhance the quality of
life in the CURA with improved parks, streets, and a river walk. The new 18t'Street bridge
opened this summer and provides better transportation opportunities for homeowners in the
Brownfields area. Efforts are currently underway to improve economic development on the
City's east side with new retail and commercial opportunities, including a new super HyVee
store.
This new opportunity for down payment assistance will be promoted through local newspaper
articles,radio commercials on KBBG,Neighborhood Association meetings, and a newsletter that
reaches over 3,000 homes published by the City's Neighborhood Services Department. The
funding for these 20 additional new homes will be made available to any eligible homebuyer
through our developers, and for those participating in the monthly offered Home Buyer
Education course. In our Home Buyer Education classes alone, 250 participants could be made
aware of this program annually.
In the past five years, there have been thirty-six new businesses and thirty-eight business
expansions within the City. Last year, the CBE Group,Inc., received a new contract with the
United States Department of Education and will be hiring at least 200 persons over the next two
years. There has been significant progression in business growth and expansion throughout the
City with a reported annual median rate of$74 million in construction activity. This recent
activity includes the construction of a new Hy-Vee grocery store on the north side of the City, a
showroom addition for Rydell Chevrolet; an expansion for Pioneer Graphics in downtown
Waterloo, and an addition at the Iry Warren golf course pro shop. The Greater Cedar Valley
Alliance provides the leadership to create jobs in the region, and assists in new business
formation and the relocation of companies. The Alliance promotes the growth of commerce,
industry and agriculture; promotes integrity and equitable principles in business; and works
toward promoting the elimination of abuses negatively affecting the interests of the community.
The City of Waterloo will use their Entitlement City HOME funds for down payment assistance
and new construction developer incentives, and CDBG funds for administration of the down
payment assistance program. In addition to this, over$600,000 per year of CDBG funding is
used for single-family owner occupied rehabilitation, and $240,000 per year is allocated for lead
hazard reduction activities. A roof repair program, using Economic Development Initiative
funds, is focused in the Brownfields area to help stop the deterioration of housing units. The City
has established a Local Housing Assistance Program Trust Fund to use toward additional lead
safe activities and new construction. Additionally, $100,000 of bond funds has been allocated as
a local matching contribution to housing programs in the City's Capital Improvement Plan to
show the City's commitment to housing.
Awarding this grant to the City of Waterloo will help us provide assistance for twenty (20) first
time homebuyers within the next two years that might not have had the opportunity to purchase
their own home. This promotes positive growth within the City as it increases the tax base for
Waterloo, and becomes a win-win situation for the City and the homebuyers.
C. Administration
Administration of the grant funds will be by the City of Waterloo, Community Development
Board. Eligible clients will be able to utilize both of the programs to assist with down payment
costs and to lower their monthly mortgage payment. The Waterloo Housing Partnership
Coordinator, Donna Lesyshen, has been assisting new homebuyers for over three years. This
position was moved back"in house"to the Community Development office in July so there is
better coordination between the down payment assistance programs available in Waterloo.
Donna is responsible for documentation of the long-term affordability and recapture provisions.
Ms. Lesyshen also teaches the Home Buyer Education classes to create an atmosphere of trust
and continuity for clients. The City of Waterloo Financial Department will perform payments
and bookkeeping duties. Community Development Coordinator,Nancy Gulick, will monitor
administration as well as complete any environmental requirements. She has been performing
environmental reviews on new construction projects for the past three years. General
administration will be done utilizing CDBG funds already allocated to the Down Payment
Assistance Program. For fiscal year 2006, $77,000 has been earmarked for salary, benefits,
operating expenditures for the program and materials needed for the Home Buyer Education
classes. A survey is being conducted in November to our successful homebuyers to collect data
on what type of home they would purchase in the future. This information will be shared with
our developers. No HOME funds will be used for direct administration of the project, and no
Housing Funds are being applied toward administration of this project. Any recaptured funds
will be placed back into the program and used for other clients and all down payment assistance
will be secured by a recorded mortgage to assure long-term affordability and recapture
provisions.
D. Prior Funding
The City received$100,000 of HOME American Dream Down payment Initiative(ADDI) funds
from the Iowa Department of Economic Development(IDED) in March 2005. To date, these
funds have not been expended. However, the first four homes that are eligible for theses funds
will be completed in December.
The City of Waterloo received$247,000 in 1997 HOME funds from the State of Iowa for a
rental rehabilitation project. This highly successful project supplied rehabilitation assistance to
seven property addresses using a fifty percent match from the landlord, and provided thirty-four
safe and sanitary housing units to low to moderate-income households. At present,there is
neither a revolving fund in the area for projects.
STATE OF IOWA
DEPARTMENT OF NATURAL RESOURCES
HENRY A.WALLACE BUILDING
DES MOINES,IOWA 50319
CONSTRUCTION PERMIT
Isle of Capri Casinos Inc PERMIT NO.:2006-0346-S
Attn:Mr.Bill Weiland FILE: City of Waterloo-Sewage
1800 Isle Parkway RE: Isle of Capri Casino
Bettendorf,IA 52722 PROJECT NO: S2006-0324
In accordance with the provisions of Section 455B.173.3 and 455B.174.4, Code of Iowa, and Rule
567--64.2(455B) or Rule 567--65.6(455B), or Rule 567-43.3(455B) of the Iowa Administrative Code, the
Director of the Department of Natural Resources does hereby issue a permit for the construction of
244 linear feet of 8-inch, 1850 linear feet of 12-inch,and 1207 linear feet of 15-inch Trunk
and interceptor sewer manholes,and all related appurtenances necessary to complete the
project in accordance with the approved plans and specifications.
The construction of the project shall be initiated within one year of issuance of this permit or this permit is
no longer valid. Within thirty days after completion of construction, the permit holder shall submit a
certification by a licensed professional engineer that the project was completed in accordance with the
approved project documents.
No construction activities shall be initiated unless an Iowa NPDES General Permit No. 2 for "Storm
water associated with construction activities" is obtained from the department if the site disturbance and
preparation equals to or exceeds one(1)acre."
The issuance of this permit in no way relieves the permittee of the responsibility for complying with any
other local, state,and federal laws,ordinances,regulations or other requirements applicable to this facility.
Pursuant to Section 455B.174.4, Code of Iowa, you have the right to appeal any condition of this permit by
filing with the Director of the Department of Natural Resources a notice of appeal and request for
administrative hearing within thirty days of receipt of this permit.
Contact Satya Chennupati,P.E. at 515-281-8995 with any questions or comments.
FOR THE DEPARTMENT OF NATURAL RESOURCES
JEFFREY R. VONK,DIRECTOR
By
ENV ONMENTAL SE CES DIVISION
Date: January 26,2006
cc: IDNR Field Office#1
IDNR Sewage File 6-07-90-0-01
Stanley Consultants,Inch iLl �-�^^c
City of Waterloo-City Clerk
Plan Distribution
[1] Applicant; [& Engineer; [] City of ;,N DNR File; [] Field Office
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