HomeMy WebLinkAboutIowa Department of Economic Development-Grant Application-01.20.2009 : 1-av -)
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Iowa Department of Economic Development (IDED)
CDBG NSP 2008 Application Form
The information required for the application is based on the Monday October 6,2008,
Federal Register, Part III, Department of Housing and Urban Development Notice of
Allocations,Application Procedures,Regulatory Waivers Granted to and Alternative
Requirements for Emergency Assistance for Redevelopment of Abandoned and Foreclosed
Homes Grantees Under the Housing and Economic Recovery Act,2008.
Please submit the Checklist for Application Federal Compliance at Appendix B with your
application.
Part A. Please check all uses proposed:
Establish financing mechanisms for purchase and redevelopment of foreclosed
upon homes and residential properties, including such mechanisms as soft-
seconds, loan loss reserves, and shared-equity loans for low-and moderate-
income homebuyers.
X Purchase and rehabilitate homes and residential properties that have been
abandoned or foreclosed upon, in order to sell, rent or redevelop such homes
and properties.
Establish land banks for homes that have been foreclosed upon.
X Demolish blighted structures.
X Redevelop demolished or vacant properties.
New construction of housing to redevelop demolished or vacant properties.
X Public services for housing counseling for prospective purchasers or tenants of the
redeveloped properties
Part B. Applicant
City: WATERLOO Taxpayer ID# 42-6005327
CEO Name: Timothy Hurley, Mayor
CEO Signature:
City address: 715 Mulberr Street, W erloo IA 50703
Street ity State Zip
Telephone: 319-291-4301 FAX 319-291-4286 Email: Tim.hurley@waterloo-
ia.org
Part C. Contact Person
2
Name: Rudy D. Jones Title: Director
Entity Name: City of Waterloo Community Development
Address: 620 Mulberry Street, Waterloo IA 50703
Street City State Zip
Telephone: 319-291-4429 FAX 319-291-4431 Email rudy.jones@waterloo-ia.org
Cell 319-269-1187
Phone:
Part D. Project Description: Provide a short summary that identifies your proposed activities,
target area and number of units.
ACQUISITION- We plan to acquire vacant homes that have been abandoned or foreclosed
upon to sell to LMI eligible persons. The target area will be current NRSA (see map) area and
surrounding neighborhoods. Our goal is a minimum of 3 units acquired.
REHABILITATION-We plan to rehab homes previously and yet to be acquired for the purpose
of selling to LMI eligible persons. The primary target area is the existing NRSA, but will expand
area as necessary. Our goal is a minimum of 4 units rehabilitated.
DEMOLITION-We plan on demolishing homes that are blight on the neighborhood and either
leave the lot a green space or build a new unit on the lot. The primary target area will be the
existing NRSA and surrounding neighborhoods. Our goal is a minimum of 4 units demolished.
REDEVELOP DEMOLISHED OR VACANT PROPERTIES-We plan on constructing new
units for LMI eligible persons to purchase in the current NRSA and surrounding neighborhoods.
Our goal is to build a minimum of 4 new units.
HOUSING COUNSELING-We plan on soliciting the services by contracting with our local
HUD certified housing counselors to provide housing counseling for prospective purchasers. Our
goal is to provide services for 10-20 prospective LMI eligible applicants.
Part E. Budget
CDBG NSP Funds
Activity Number of units $ Amount
Financing mechanism
Acquisition 3 200,000
Rehabilitation 4 360,000
Land Banks
Demolition 4 40,000
Redevelopment 4 189,570
New Construction
Housing Counseling 10-20 persons 10,000
Administration 6% 51,000
Total CDBG NSP 850,570
Other Funds
Activity Source of funds Use of funds $ Amount
Financing mechanism
3
Acquisition
Rehabilitation
Land Banks
Demolition GO BONDS 25,000
Redevelopment
New Construction STATE ADDI 40,000
Housing Counseling CDBG 10,000
Administration
Total Other Funds
�� 75,000
Total Project funds: $ 925,570
Will any program income result from any activity(ies)? If so, describe and explain, including
approximate amounts and dates expected.
Would any proposed activity result in a profit? If so,describe the proposed disposition of those funds; i.e.
return to IDED or request permission to retain and re-use.
Part F.
Complete separate narratives for each of your proposed activities identified in Part A of this application.
Include the following information in each narrative:
1. PURCHASE & REHAB TO SELL-24 CFR 570.201 We will purchase and rehabilitate
abandoned and/foreclosed homes to sell to eligible persons. The National Objective is to benefit
L/M Income Persons-Housing. It is anticipated to start once feasible units are identified. The start
date is August 2009 with completion by October 2010. All prospective purchasers will be
required to go through the necessary HUD certified minimum 8 hour housing counseling
provided by one or more of the local providers yet to be determined. We will be soliciting
services from local certified agencies. Of the minimum 4 units 2 households will be above 30%
and at or below 50%AMI and the other 2 will be above 80%and at or below 120%AMI. If any
profit is obtained from the sale of structures we will be requesting permission from IDED to
utilize funds for the purpose of eligible housing activities to continue addressing housing stock.
The time and terms of affordability will be part of each agreement as one of the conditions of
purchase based on the amount of funds put into the project. The appropriate lien information will
be include in the contract and recorded accordingly. This activity will take place in our HUD
approved NRSA and surrounding neighborhoods.This activity is needed to further develop
affordable housing for eligible along with existing housing related programs
2. DEMOLISH BLIGHT STRUCTURES—24 CFR 570.201(d) We will demolish structures to
make lots available for new construction or remove from neighborhoods that the unit is detriment
in.The National Objective would be to Address Slums or Blight on a Spot Basis—Clearance. It is
anticipated that the start date would be July 2009 once structures and locations are identified and
completed by December 2009. This activity will take place in our HUD approved NRSA and
surrounding neighborhoods. This activity is needed to provide lot to consider for potential new
construction of affordable unit.
3. REDEVELOP DEMOLISHED OR VACANT PROPERTIES—24 CFR 570.201 We will
take vacant lots and seek to build new structures to sell to eligible persons. The National
Objective is to benefit L/M Income Persons-Housing. It is anticipated to utilize our current NRSA
and surrounding neighborhoods as primary locations of new construction with anticipated
construction start dates of Summer 2009 and completed by late Fall 2009. All prospective
purchasers will be required to go through the necessary HUD certified minimum 8 hour housing
counseling provided by one or more of our local providers yet to be determined. We will be
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soliciting services from local certified agencies. Of the 4 units to be constructed at least 1
households will be at or below 50%AMI and 3 households will be above 80%and at or below
120%AMI. The final determination will be decided in conjunction with the activity of acquiring
and rehabilitating structures as identified in the first activity or a combination of these two
activities to meet the minimum 26%of funds overall NSP benefit to individuals whose income do
not exceed 50%of area median income. The time and terms of affordability will be part of each
agreement as one of the conditions of purchase based on the amount of funds put into the project.
The appropriate lien information will be include in the contract and recorded accordingly. This
activity will take place in our HUD approved NRSA and surrounding neighborhoods. This
activity is needed to further develop affordable housing for eligible along with existing housing
related programs
4. PUBLIC SERVICES FOR HOUSING COUNSELING—24 CFR 570.201 We will be
soliciting the services of our local HUD certified housing counselors to provide training for
eligible prospective purchasers to meet the minimum 8 hours of housing counseling. We will
consider the available options of training formats, but will be encouraging one on one counseling
verses a classroom setting format. This is to provide better opportunity to have prospective
purchaser retain more from the training. We will also seek some sort of pre and post training
evaluation. Solicitation for services will be conducted in the spring of 2009 and completed over
the course of the distribution of funds or until we meet our minimum commitment of 3 units are
meet. This activity is needed to meet HUD requirements and educate prospective purchasers to
better prepare them to meet the necessary obligations of being a homeowner.
PART G.
Complete Part G only if the project includes demolition or conversion of low-and moderate-
income dwelling units.
Low-and moderate-income dwelling units are units that if operated as rentals, the rents combined
with utility costs do not exceed 30% of gross annual income of households at or below 80% of
the AMI per HUD guidelines.
In the Neighborhood Stabilization Program HUD substitutes an alternative requirement of
reporting information pertaining to low-and moderate-income dwelling units for the 104d one-
for-one replacement requirements set forth in 42 U.S.C. 5304(d)(2) and implemented by 24 CFR
42.375. The following estimates are for reporting data that will be required during the project.
1. The number of low- and moderate-income dwelling units reasonably expected to be
demolished as a direct result of NSP-assisted activities.
# 4
2. The number of low-and moderate-income dwelling units reasonably expected to be
converted into another use as a direct result of NSP-assisted activities.
# 4
Describe the proposed alternate use of the converted units.
Offer to eligible LMI first time homebuyers as outlined in first activity.
3. The number of NSP affordable housing units made available to low-, moderate-, and
middle-income households (equal to or less than 120% of the AMI)—reasonably
expected to be produced by the project activity:
5
# 0 at or below 30%AMI
# 4 above 30%AMI and at or below 50%AMI
# 2 above 50%AMI and at or below 80%AMI
# 2 above 80%AMI and at or below 120%AMI
# 8 sum of units at or below 120%AMI
Appendix A
NSP Eligible Use and Eligible Activity
Federal RegisterNol. 73,No. 194/Monday,October 6, 2008/Notices
Page 58338
NSP-eligible uses Correlated eligible activities from the CDBG
entitlement regulations
(A)Establish financing mechanisms for • As part of an activity delivery cost for
purchase and redevelopment of an eligible activity as defined in 24
foreclosed upon homes and residential CFR 570.206.
properties, including such mechanisms • Also,the eligible activities listed below
as soft-seconds, loan loss reserves, and to the extent financing mechanisms are
shared-equity loans for low-and used to carry them out.
moderate-income homebuyers.
(B) Purchase and rehabilitate homes and • 24 CFR 570.201
residential properties that have been (a)Acquisition
abandoned or foreclosed upon, in order (b)Disposition,
to sell,rent, or redevelop such homes (i)Relocation, and
and properties. (n)Direct homeownership assistance
570.202 eligible rehabilitation and preservation
activities for homes and other residential
properties(HUD notes that rehabilitation may
include counseling for those seeking to take
part in this activity).
(A)Establish land banks for homes that • 24 CFR 570.201
have been foreclosed upon (a)Acquisitions
(b)Disposition.
(C)Demolish blighted structures • 24 CFR 570.201.(d)Clearance for
blighted structures only.
(D)Redevelop demolished or vacant • 24 CFR570.201
properties (a)Acquisition,
(b)Disposition,
(c)Public facilities and improvements,
(e)Housing Counseling Public Services,
limited to prospective purchasers or tenants of
the redeveloped properties,
(i)Relocation,
(HERA Notice I. Allocations H3c.)New
construction, and
(n)Direct homeownership assistance
• 570.204 activities by Community
Based Development Organizations
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Appendix B
Checklist for Application Federal Compliance
• eligible use of funds under NSP
yes x no Found on page 4 & 5
• areas of greatest need addressed by the activity or activities
yes x no Found on page 4
• expected benefit to income-qualified persons or households or areas
yes x no Found on page 4 & 5
• number of units to be assisted grouped by income levels
yes x no Found on page 4 & 5
• name, location and contact information for the entity that will carry out the
activity
yes X no Found on page 3
• expected start and end dates of the activity
yes x no Found on page 4 & 5
• if the activity includes financing mechanisms, the range of interest rates, not to
exceed 8 percent
yes no x Found on page
• if the activity includes acquisition of foreclosed upon homes or residential
properties, the discount from the current appraised value(at least 15%) required
yes no X Found on page .
• if the activity includes assistance to prospective purchasers or tenants of the
redeveloped properties, provision of 8 hours housing counseling with a HUD
approved agency
yes X no Found on page 5
• if the activity provides housing, how continued affordability is ensured
yes X no Found on page 4 & 5
• at least 26% of funds received by the city will be used to benefit individual
households whose incomes do not exceed 50% of AMI
yes x no Found on pages 4& 5
Application questions should be directed to Mike Miller at 515.242.4807 or his
email address of Mike.Miller@iowalifechanging.com
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