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Historic Pres Homeowner Grant PPlanning Sea'vices Departmextt City Hall 50 West 13th Street Dubuque, Iowa 520014864 (563) 5894210 office (563) 5894221 fax planrfing@cityofdubuqr~e.org July 6, 2001 The Honorable Mayor and City Council Members City Hall - 50 W. 13th St. Dubuque, IA 52001 SUBJECT: Historic Preservation Homeowner Grant Program Dear Mayor and City Council Members: On March 6, 2001 the City Council adopted a revised Historic Preservation Homeowner Grant Program for Iow to moderate income households, to increase the grant amount from $2,000 to $5,000, and remove the required match. The City Council approved the program's FY02 Budget of $30,000 in Community Development Block Grant (CDBG) funds. After reviewing the program with City staff, the Historic Preservation Commission is recommending the following guidelines. Recommendations The program guidelines presented to the City Council in January 2001 are found on attachment #1. Recommended changes are shown on attachment #2, with new language in italics and deleted language crossed out. Security: With CDBG funding, this program is restricted to low/moderate income households. For the households who would qualify for this grant program, a second mortgage position will be difficult to obtain in many cases. Consequently, the Historic Preservation Commission recommends that the secudty for these grants be expanded to include an amount up to 100% loan-to-value. The value will be based on assessed value, or appraised value after improvements, if the assessed value is not a good indicator or the property's value. (This is similar to requirements for housing programs administered by the Housing and Community Development Department.) Eli,qible Improvements: The Historic Preservation Commission recommends additional language regarding design standards that will be developed for the histodc districts. Project Rating: The Historic Preservation Commission recommends that highest priority be given to the restoration and use of original materials, such as wood siding; and that second pdority be given to preservation alternatives. Application Period: The Historic Preservation Commission recommends taking Service People Integrity Respor~ibility Innovation Teamwork Historic Preservation Homeowner Grant Program Page 2 applications until all $30,000 in program funds is committed. Review and Approval: The Historic Preservation Commission recommends that the grant applications be taken at the Housing and Community Development Department, which handles similar programs. Additional language about the processing of applications is shown. The process parallels other housing programs, and the Housing and Community Development Department has agreed to handle these grants. The Historic Preservation Commission recommends formation of a grant review committee consisting of three City staff, from the Housing and Community Development Department, Building Services Department and Planning Services Department. The committee would review, rather than rank, eligible applications after income is verified by Housing and Community Development Department staff. The committee would review the applications for compliance with City codes and the Section 106 federal review process, and then provide recommendations to the HPC for approval. Marketing: The Historic Preservation Commission discussed marketing the program to property owners in the histodc districts. W'~h information about the grant program in the July, 2001 edition of City Focus, we reached many of these property owners and staff has had many inquiries. If all grant funds are not committed, the Historic Preservation Commission will undertake additional marketing. Requested Action The Historic Preservation Commission respectfully requests that the City Council approve the recommended guidelines for the grant program. Sincerely, Terry Mozena, Chairperson Historic Preservation Commission Enclosures Michael Van Milligen, City Manager Laura Carstens, Planning Services Manager David Harris, Housing and Community Development Director Pam Myhre, Acting Economic Development Director Rich Russell, Building Services Manager Joleen Patterson, Rehabilitation Supervisor Jerelyn O'Connor, Neighborhood Development Specialist Wally Wemimont, Assistant Planner HISTORIC PRESERVATION HOMEOWNER GRANT PROGRAM Purpose: Preservation grants (in the form of a forgivable loan) are available on a competitive basis to income-qualifying owner-occupants in any local historic distdct for specific rehabilitation projects that preserve the odginal building materials and character-defining features of the home. These grants provide financial incentives to homeowners to maintain and improve their own neighborhood's historic building inventory. Applicant Eligibility Owner-occupant of single-family, duplex or 3-unit property. HUD income-eligible (80% of median family income -- see Participant Income Verification Report). Eligible Property Located in a Historic Preservation District and at least 50 years old. Grant Amount Up to $5,000 forgivable loan; fully forgiven after 5 years if applicant remains in the home. Security Eligible Improvements Review and Approval At least a 2nd mortgage position and promissory note Exterior work to repair or restore: porches, wood windows, wood doors, wood siding, character-defining features, and chimneys. Exterior painting and historic colors paint projects. Work must meet the Secretary of the Interior's Standards for Rehabilitation. A grant review committee of City staff will rank eligible applications. The Historic Preservation Commission will review the grant application, the proposed work, and the committee's recommendations. All applicable City review and permits must be completed; e.g., building permits. HISTORIC PRESERVATION HOMEOWNER GRANT PROGRAM Purpose: Preservation grants (in the form of a forgivable loan) are available on a competitive basis to income-qualifying owner-occupants in any local histodc district for specific rehabilitation projects that preserve the original building materials and character-defining features of the home. These grants provide financial incentives to homeowners to maintain and improve their own neighborhood's historic building invento[y. Applicant Eligibility Owner-occupant of single-family, duplex or 3-unit property. HUD income-eligible (80% of median family income -- see Participant Income Verification Report). Eligible Property Located in a Historic Preservation District and at least 50 years old (see map of histodc preservation districts). Grant Amount Up to $5,000 forgivable loan; fully forgiven after 5 years if applicant remains in the home. If the applicant moves within the five-year period, then 100% of the grant must be repaid. Security Preferably at least a 2nd mortgage position and promissory note, oran amount not to exceed 100% loan - to - value. The property value will be based on the assessed value, or on the appraised value after improvements, if the assessed value is not a good indicator. Eligible Improvements Exterior work to repair or restore: porches, wood windows, wood doors, wood siding, character-defining features, and chimneys. Exterior painting and historic colors paint projects. Work must meet the Secretary of the Interior's Standards and Guidelines for Rehabilitation and any specific design standards established for the pertinent Historic Preservation District. Highest priority will be given to projects that result in saving, restoring or reconstructing original building elements, using original mate#als that reflect the architectural character or significance of the property. HISTORIC PRESERVATION HOMEOWNER GRANT PROGRAM (continued) Second priority will be given to projects that use preservation alternatives, such as different materials, techniques or methods for rehabilitation of historic buildings. Application Period Applications will be accepted until all funds are committed. Review and Approval Applications will be accepted at the Housing and Community Development Department, 1805 Centre/Avenue, Dubuque, All applications must include required information on income, specific work proposed and at least two estimates received from full-time contractors licensed and insured by the State of lowa. Homeowners may do the work themselves; written quotes on costs of materials must be provided. Labor by homeowners is not covered. Incomplete applications will not be processed. Assistance with the design review portion of the application is available dudng regular business hours by appointment at the Planning Services Department, 50 W. 13~ Street, Dubuque (City Hall). A grant review committee of City staffwill r=.",h review eligible applications, and then make recommendations relative to compliance with City Housing, Building and Historic Preservation Codes, and with Section 106 of the Code of Federal Regulations. The Histodc Preservation Commission will review the grant application, the proposed work, and the committee's recommendations. The Histodc Preservation Commission must approve all ~ a Certificate of Appropriateness for all proposed work pdor to issuance of permits or award of grants. All applicable City review and permits must be completed; e.g., building permits, before any work begins. Work begun pdor to obtaining a required permit, review or approval will not be eligible for grant assistance.