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HomeMy WebLinkAboutIowa Department of Economic Development-Grant Amendment-07.20.2024 I OWA changing August 12, 2009 The Honorable Timothy Hurley, Mayor City of Waterloo City Hall - 715 Mulberry St. Waterloo, IA 50703 SUBJECT: Contract Number 08-DRH-011 Dear Mayor Hurley: The Department of Economic Development recently amended the CDBG Disaster Recovery Housing Contract for City of Waterloo, in response to your request. Enclosed is your copy of the executed amendment. Changes made by this amendment are now in effect. Please file the amendment with your original contract document so that you will have current information on the status of your contract. If your amendment includes a budget change, be sure that is reflected in your next "Request for Payment/Activity Status Form." Please contact Julie Lunn at (515) 725-3082 if you have any questions. Sincerely yours, Alice Meyer RECEIVED AUG 17 2009 Contract Coordinator Enclosure cc: Rudy D. Jones, City of Waterloo fi l09 Chester J.Culver,Governor IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT Patty Judge,Lieutenant Governor Mike Tramontina,Director 200 East Grand Avenue,Des Moines,Iowa USA 50309 Phone:515.725.3000 Fax:515.725.3010 www.iowalifechanging.com • S / e:. , 44o, 'D a'3 - 7/3 DwA DEPT.OF ECONOMIC DEVELOPMEN 0 . Iowa Department of Economic Development JtJ i 2 9 2009 Community Development Block Grant(CDBG)Program Contract Amendment DIVISION OP GUMMUNl a`° DEVELOPMENT Recipient: City of City of Waterloo Contract Number: 08-DRH-011 I Contract Amendment Number: Four(4) , Amendment Effective Date: May 19,2009 The Iowa Department of Economic Development(IDED)hereby amends the above referenced Community Development Block Grant(CDBG)Program contract by amending Attachment E and increasing the Federal Budget adding new Activity and increasing 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 E,Requirements for Single-Family Housing Activities —CDBG(Disaster Recovery) Supplemental Funds,revised as of January 21, 2009"to"Attachment E,Requirements for Single-Family Housing Activities—CDBG(Disaster Recovery) Supplemental Funds,revised as of April 13,2009." • AMEND AWARD AMOUNT from$611,090 to$1,892,723. ` Except as otherwise revised above,the terms,provisions,and conditions of the Contract remain unchanged and are in full force and effect. RECIPIENT: City of City of Waterloo BY: TIMOTHY J. HURLEY Mayor,Cityif City of Waterloo IOWA 4': ': TT` NTOF t0 1 ICD; illigaLAIA IP ,iENT BY: 1 W.y R.i.de ,Divisio! Administrator CDBG Major Amendment Format Approved 1/2/02 IOWA -CDBG DISASTER RECOVERY HOUSING FUND PROGRAM DESCRIPTION & BUDGET ATTACHMENT A DATE: May 20,2009 ..... ..... ......... . ... . Tb:be fiIIez1.i.ri by lDED Name of Recipient: City of Waterloo Original Arnenctmertt# Fbur(4.) Contract Number: 08-DRH-011 Prof Mgr Signi jinl NAl IONAL: ACTIVITY DESGRIPTIO 1 PERFO RI; BUDGET OBJECTIVE' Activity 1: 971 Housing Repair/Rehabilitation for families<80%LMI 8 UNITS LMI $508,565 $60,000 per unit maximum Activity 2: 972 Housing Repair/Rehabilitation for families 80- 100% LMI 1 UNITS UN $60,000 $60,000 per unit maximum Activity 3: 981 Homebuyer Assistance for families<80%LMI 0 UNITS LMI $0 $60,000 per unit maximum Activity 4:982 Homebuyer Assistance for families 80-100%LMI 0 UNITS UN $0 $60,000 per unit maximum Activity 5:991 Interim Mortgage Assistance for families 0- 100%LMI, 9 HOUSEHOLDS UN $29,925 $3,000 per household maximum Activity 6: 872 Single Family Unit Production New Construction-Below 100%LMI 22 Units UN $1,256,000 Activity 7: $0 Activity 8: $0 Activity 9: $0 GENERAL ADMINISTRATION 181 $38,233 TOTAL BUDGET: $1,892,723 G:\BCF\Recipients\Disaster\2008 Disaster Relief Housing\Waterloo-011\AttachAWaterloo 08-DRH-011Amend4 Revised and Effective April 13, 2009 Attachment E Requirements for Single-Family Housing Activities - CDBG (Disaster Recovery) Supplemental Funds — Jump Start Federal • These requirements pertain to three single-family housing activities accomplished under the CDBG (Disaster Recovery) Supplemental funds. • Single-family housing activities under this guidance will be limited to the activities described in the IDED's Disaster Recovery Action Plan: 1) Housing Repair/ Rehabilitation; 2) Homebuyer Assistance; and 3) Interim Mortgage Assistance. • Housing Repair / Rehabilitation and Homebuyer Assistance activities are broken down into sub-activities. There are sub-activities serving only low and moderate income (LMI) persons or households (at or below 80% of median family income), and sub-activities serving those above 80% up to 100% of median family income. • The Housing Repair/ Rehabilitation activity also provides for an emergency rehabilitation sub-activity (known as Jump Start Express) that provides for repair and rehabilitation costs at an amount not-to-exceed $24,999 in federal funds, and that does not require that property standards compliance be achieved on the property with these repairs / rehabilitation. • All activities undertaken must meet a CDBG National Objective. • For purposes of the CDBG Supplemental funds, all technical services related costs (also known as soft costs; carrying costs; direct administration costs) will be considered as "project delivery costs". Project delivery costs, although administrative in nature, must be considered as project costs attributable to the housing activity undertaken and accounted for in this manner. Overall, project delivery costs need to be reasonable and cannot exceed $10,000 per unit. • The lead COG will be considered as a sub-recipient of the lead county (i.e., an extension of that local government). Revised and Effective April 13, 2009 • CDBG Supplemental Funds dedicated to single-family housing will be limited to serving only persons or households whose incomes are at or below the median income limits (MFI) as established by HUD (i.e., 100% of HUD MFI, by county and by household size). • Use the HUD definition of "single-family" dwelling unit for these activities. • Applicants at the local level, in order to be eligible for assistance, must have applied for and received FEMA housing assistance. • No duplication of benefits will be allowed. Prior to assisting homeowners or homebuyers with CDBG Supplemental Funds, the IDED / recipient will need to determine and verify any monies received from any other federal or state financial resources providing disaster recovery funding and any insurance settlement payments provided to your homeowner or homebuyer, and adjust the CDBG Supplemental Funds amount and project scope accordingly. • Any Federal (NFIP) Flood Insurance settlement received by a homeowner or homebuyer seeking assistance must be deducted from any CDBG Supplemental Funds assistance provided as well. Again, no duplication of benefits will be allowed. • No rehabilitation benefits to structures located within the 100-year floodplain will be allowed, unless the activity meets all HUD environmental requirements, all applicable flood mitigation design standards, and the property is insured by Federal Flood Insurance. • No rehabilitation benefits will be allowed to structures located in designated or proposed buy-out areas. • No new construction for homebuyer assistance will be allowed in designated or proposed buy-out areas. • Activity specific requirements: Housing Repair / Rehabilitation • The maximum per unit assistance level (CDBG Supplemental funds) for Housing Repair / Rehabilitation is $60,000. The administrative entity will be Devised and Effective April 13, 2009 allowed actual project delivery costs not to exceed $10,000 per unit above this amount. • Recipients are allowed to conduct an "Emergency Repair/ Rehabilitation" activity known as Jumpstart Express. The maximum per unit assistance level (CDBG Supplemental funds) for Jump Start Express is $37,500, inclusive of all costs. The hard costs of federally funded rehabilitation under the Jumpstart Express activity cannot exceed $24,999. Under Jumpstart Express, assisted properties are not required to be brought into conformance with the applicable property standards, pre-disaster condition only. • It will be the homeowner's choice for the selection of either the Housing Repair / Rehabilitation activity or Jumpstart Express. • Beneficiaries of this activity must be the owner of record of the property to be assisted (ownership type is limited to fee simple title or 99-year leasehold ownership). Absolutely no land sales contracts. • Housing repair/ rehabilitation assistance will be allowed only on the beneficiary's primary residence. • Assistance to homeowners will be limited to forgivable loans. Forgivable loans under this activity must be a 5-year receding forgivable loan. Forgivable loans must be secured as a mortgage lien on the assisted property. Payback of CDBG funds will be required if the assisted property owner sells, vacates, rents or abandons the property any time within the 5 year period. • Only the actual CDBG Supplemental Funds-funded rehabilitation costs incurred and/or the lead hazard abatement costs (as applicable) incurred need to be secured with the forgivable loan. Project delivery costs incurred need not be included in, or secured by, the mortgage lien. Lead hazard reduction costs incurred (structures rehabilitated with CDBG Supplemental funds at or less than $24,999) need not be included in, or secured by, the mortgage lien. • All units to be repaired or rehabilitated must be both financially and structurally feasible to rehabilitate. Recipients need to establish parameters for making this determination. Revised and Effective April 13, 2009 • Except for Jumpstart Express, all units to be repaired or rehabilitated must meet all applicable property standards upon completion. The CDBG Entitlement Cities and communities with populations at or greater than 15,000, need to comply with your own locally adopted and enforced codes, standards and ordinances. For the remainder of the State, in the absence of any locally adopted and enforced codes or standards, the requirements of Iowa's Minimum Housing Rehabilitation Standards apply. • It is the IDED's goal to utilize the CDBG Supplemental Funds in a manner that results in green-built, sustainable single-family structures. For those communities conducting single-family rehabilitation activities that are subject to Iowa's Minimum Housing Rehabilitation Standards, the applicable "green" requirements are contained therein. For all communities not subject to Iowa's Minimum Housing Rehabilitation Standards, the IDED asks that you incorporate the "green" design requirements of Iowa's Minimum Housing Rehabilitation Standards into your individual project specifications / work write-ups, all assisted units. • The CDBG Supplemental funds are subject to the requirements of the Federal Lead Safe Housing regulations, impacting all single-family dwelling units that were constructed prior to January 1, 1978. The approach needing to be taken with regard to lead safe housing is dictated based on the amount of CDBG Supplemental funds used for rehabilitation costs. Homebuyer Assistance • Homebuyer Assistance is limited to persons or households whose primary residence was destroyed and determined to be infeasible to rehabilitate. • Types of Homebuyer Assistance activities that may be undertaken with the CDBG Supplemental Funds are: 1) Rehabilitation in Support of Homeownership (existing structures), not-to-exceed $24,999 in CDBG Supplemental funds; 2) Acquisition Assistance (either existing or newly constructed structures), including: downpayment assistance, buyer's side closing costs, mortgage buy-down (principal reduction), combinations of the above; and Revised and Effective April 13, 2009 3) Combinations of both rehabilitation and acquisition assistance. • Expanding on #2 above, 100% of the downpayment required by the principal lender may be paid for with CDBG Supplemental Funds, however, the lender's downpayment requirement cannot exceed 25% of the purchase price or the appraised Fair Market Value (FMV), whichever is less. • Purchased properties under this activity must result in ownership in the form of fee simple title or 99-year leasehold. Absolutely no land sales contracts. • Homebuyer Assistance must be provided as a 5-year receding forgivable loan secured by a mortgage lien on the assisted (purchased) property. Payback of CDBG funds will be required if the assisted homebuyer sells, vacates, rents or abandons their purchased property any time within the 5 year period. • Any equity derived from a future buy-out of the assisted homebuyer's destroyed dwelling unit is subject to a recapture of CDBG funds. • Only the actual CDBG Supplemental Funds-funded rehabilitation costs and/or acquisition subsidy provided needs to be secured with the forgivable loan. Project delivery costs and lead hazard reduction costs incurred need not be included in, or secured by, the mortgage lien. • Recipients shall require the beneficiaries of their homebuyer assistance activities to use a principal loan product that meets all of the following criteria: 1) With the exception of a Habitat for Humanity loan product, the principal mortgage loan must be the only repayable loan in all individual homebuyer assistance projects. 2) The CDBG Supplemental funds may be recorded in junior position to the principal loan, but must be recorded in senior position to all other funding in all homebuyer assistance projects (with the exception of a Habitat for Humanity principal loan). Additionally, recipients of CDBG Supplemental homebuyer assistance activities must maintain their assistance security agreements in the above-stated recording position throughout the 5-year period, and will not be allowed Revised and Effective April 13, 2009 to subordinate the required recording position to any other forms of assistance, such as home equity loans. 3) Any mortgage lending entity's (a regulated lender's) principal mortgage loan products may be used provided they meet all of the following minimum requirements: a) Loan interest rates cannot be higher than four percentage points above the federal prime interest rate at the time of loan commitment; b) Loan terms will include a 75% or higher Loan-to-Value ratio (LVR); c) No less than a 15-year, fully amortized, fixed-rate mortgage may be used (early pay-off provisions must be allowed); and d) No adjustable rate mortgages or balloon payment types of mortgages will be allowed. • The maximum per unit assistance level (CDBG Supplemental funds) for Homebuyer Assistance is $60,000. The administrative entity will be allowed actual project delivery costs above this amount, not to exceed $10,000. • The Homebuyer Assistance is to be provided by the recipient jurisdiction where the assisted homebuyer is purchasing a replacement dwelling unit, not from the recipient jurisdiction where the homebuyer's destroyed dwelling unit is located. The exception to this provision would be if an assisted homebuyer purchases a dwelling unit in any of the counties that are not declared disaster area counties. These homebuyers would apply for and obtain Homebuyer Assistance from the recipient jurisdiction where their destroyed dwelling unit is located. • All existing units to be purchased in need of rehabilitation must be both structurally and financially feasible to rehabilitate. • All existing units to be purchased in need of rehabilitation must meet all applicable property standards upon completion. The CDBG Entitlement Cities and communities with populations at or greater than 15,000 need to comply with your own locally adopted and enforced codes, standards and ordinances. Revised and Effective April 13, 2009 For the remainder of the State, in the absence of any locally adopted and enforced codes or standards, the requirements of Iowa's Minimum Housing Rehabilitation Standards apply. • It is the IDED's goal to utilize the CDBG Supplemental Funds in a manner that results in green-built, sustainable single-family structures. For those communities conducting single-family rehabilitation activities in support of homeownership that are subject to Iowa's Minimum Housing Rehabilitation Standards, the applicable "green" requirements are contained therein. For all communities not subject to Iowa's Minimum Housing Rehabilitation Standards, the IDED asks that you incorporate the "green" design requirements of Iowa's Minimum Housing Rehabilitation Standards into your individual project specifications /work write-ups, all assisted units. • All replacement housing purchased with CDBG Supplemental funds needs to be located outside of the 100-year flood plain and outside of a designated or proposed buy-out area. • The CDBG Supplemental funds are subject to the requirements of the Federal Lead Safe Housing regulations, impacting all single-family dwelling units to be purchased that were constructed prior to January 1, 1978. Interim Mortgage Assistance • Interim Mortgage Assistance is available only to applicants whose destroyed dwelling unit is located in a designated or proposed buy-out area. Applicants for Interim Mortgage Assistance are also eligible for Homebuyer Assistance, but not Housing Repair / Rehabilitation. • Interim mortgage assistance may be used to maintain mortgages (payment of principal, interest, property taxes and hazard insurance). • The maximum interim mortgage assistance allowable per assisted person or household will be $1,000 per month for a period not to exceed 3 months, starting on the date the Interim Mortgage Assistance is awarded. • Interim mortgage assistance may be provided as a grant. OcN C.) %-*\