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Annual Action Plan FY 06 Amend 3 CDBG i5'G~~E ~Yk.~ MEMORANDUM January 21, 2006 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Fiscal Year 2006 Annual Action Plan - Amendment 3 Historic Preservation Homeowner Grant Program Housing and Community Development Department Director David Harris is recommending City Council approval of changes in the City's Community Development Block Grant (CDBG) Fiscal Year 2006 Annual Action Plan. These changes provide for expanding the Historic Preservation Homeowner Grant Program to include non-profit organizations providing residential facilities to HUD income-eligible tenants. I concur with the recommendation and respectfully request Mayor and City Council approval. /lzJ tr~~ Micha'el C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager David Harris, Housing and Community Development Department Director <, __1"_0'/ '__J f)i;~~ ~~~ MEMORANDUM January 18, 2006 FROM: Michael Van Milligan, City Manager David ~~iS, Housing and Community Development Department TO: SUBJECT: FY 2006 Annual Action Plan - Amendment 3 Historic Preservation Homeowner Grant Program INTRODUCTION This memorandum presents for City Council consideration proposed changes in the City's Community Development Block Grant (CDBG) FY 2006 Annual Action Plan. These changes provide for expanding the Historic Preservation Homeowner Grant Program to include non-profit organizations providing residential facilities to HUD income-eligible tenants. SUBSTANTIAL AMENDMENT At the suggestion of Housing and Community Development Director David Harris, the Historic Preservation Commission has discussed expanding the Historic Preservation Homeowner Grant Program to include non-profit organizations providing residential facilities to HUD income-eligible tenants. This amendment would allow non-profit organizations to apply for a $5000 forgivable loan to rehab residential buildings in Historic Preservation Districts for low/moderate income tenants. The program is funded with Community Development Block Grant (CDBG) funds in the FY 2006 Annual Action Plan. As such, an amendment to the Plan was required. The Citizen Participation Plan defines this program change as a substantial amendment since it will change the beneficiaries and scope of an activity. Therefore, the required 30-day comment period was held, commencing with the publication of a notice in the Telegraph Herald on December 8,2005. The Community Development Advisory Commission held a public hearing on January 11, 2006. There were no public comments regarding the request. The Commission voted to approve the proposed amendment and recommend City Council approval of the amendment to the Historic Preservation Homeowner Grant Program. RECOMMENDATION I recommend that the City Council approve the above-described Amendment 3 to the City's FY 2006 (Program Year 2005) Annual Action Plan for the use of CDBG funds... ACTION STEP The Action Step is for the City Council to adopt the attached resolution. Prepared by Aggie Tauke, Community Development Specialist Cc: Historic Preservation Commission F:\Users\AT AUKE\CDBG\AnnualPlan\Amendments\HP Housing grant 06.mvm memo.doc . RESOLUTION NO. 36-2006 RESOLUTION APPROVING THE FISCAL YEAR 2006 (PROGRAM YEAR 2005) ANNUAL PLAN - AMENDMENT 3 FOR COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS. Whereas, the City of Dubuque prepared and filed a Fiscal Year 2006 Annual Action Plan; and Whereas, the City of Dubuque now desires to amend said FY 2006 Annual Action Plan by expanding the eligible applicants for the Historic Preservation Homeowner Grant Program, and Whereas, said amendment is a substantial amendment as provided in the City's Citizen Participation Plan and must therefore be approved by resolution of the City Council after a public hearing by the Community Development Advisory Commission; and Whereas, the City advertised the public comment period beginning December 8, 2005; and Whereas, the Community Development Advisory Commission reviewed the proposed amendment at a public hearing on January 11, 2006, and has voted to approve said amendment and to recommend approval by the City Council. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That said Fiscal Year 2006 (Program Year 2005) Annual Plan - Amendment 3 as shown in the attached Exhibit A is hereby approved. Section 2. That the City Manager is hereby authorized and directed to submit a copy of this resolution to the U. S. Department of Housing and Urban Development. Roy D. Buol, Mayor Attest: Jeanne F. Schneider, City Clerk Passed, approved and adopted this 6th day of Febru F:\Users\ATAUKE\CDBG\AnnuaIPlan\Amendments\HP Housing Grant 06amend3.res.doc Exhibit A FY 2006 Annual Action Plan Amendment 3 HISTORIC PRESERVATION HOUSING GRANT PROGRAM Purpose Preservation grants (in the form of a forgivable loan) are available on a competitive basis to income-qualifying owner-occupants and to qualified non-profit organizations in any local historic district or City-designated landmark for specific rehabilitation projects that preserve the original building materials and character-defining features of the home. These grants provide financial incentives to homeowners and non-profit organizations 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). Qualified non-profit organizations providing residential facilities to HUD income-eligible tenants. Eligible Property located in a Historic Preservation District or designated as a City landmark and at least 50 years old. Grant Amount Owner-Occupants: Up to $5,000 forgivable loan, fully forgiven after 5 years if applicant remains in the home. If applicant moves within the five-year period, then 100% of the grant must be re-paid. Non-Profit Organizations: Up to $5,000 forgivable loan, fully forgiven after 5 years if applicant continues to provide residential facilities to HUD income-eligible tenants. If applicant ceases to provide these services within the five-year period, then 100% of the grant must be re-paid. Limit one grant per property. Security Preferably at least a 2nd mortgage position and promissory note, or an 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. Terms Work must be initiated with three (3) months and completed with six (6) months from date of Historic Preservation Commission approval. The Commission may grant additional time, if needed. 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 materials that reflect the architectural character or significance of the property. 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 during regular business hours at the Housing and Community Development Department, 1805 Central Avenue, Dubuque, Iowa. All applications must include required information on income, specified work proposed and at least two estimates received from full-time contractors licensed and insured by the State of Iowa. 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 during regular business hours by appointment at the Planning Services Department, 50 W. 13th Street, Dubuque (City Hall). A grant review committee of City staff will 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 Historic Preservation Commission will review the grant applications, the proposed work, and the committee's recommendations. The Historic Preservation Commission must approve a Certificate of Appropriateness for all proposed work prior to issuance of permits or awards of grants. All applicable City review and permits must be completed; e.g., building permits, before any work begins. Work begun prior to obtaining a required permit, review or approval will not be eligible for grant assistance. F:\Users\ATAUKE\CDBG\AnnuaIPlan\Amendments\HP Housing Grant ExhA.06.doc -ji , , {'ij f- ~,_J ,'< Planning Services Department City Hall 50 West 13th Street Dubuque, Iowa 52001 ~4864 (563) 589-4210 office (563) 589-4221 fax (563) 690-6678 TDD planning@cityofdubuque.org ~<-k~ January 20, 2006 The Honorable Mayor and City Council City of Dubuque 50 W. 13th Street Dubuque, IA 52001 RE: Recommended Changes -- Historic Preservation Homeowner Grant Program Dear Mayor and City Council Members: The Historic Preservation Commission has discussed expanding the Historic Preservation Homeowner Grant Program to include non-profit organizations providing residential facilities to U.S. Department of Housing and Urban Development (HUD) income-eligible tenants in the City's historic districts. The funding for this grant program is from the federal Community Development Block Grant (CDBG) program. The Historic Preservation Commission supports the creation of a Historic Preservation Housing Grant Program, as recommended by the Community Development Advisory Commission and Housing and Community Development Director David Harris. The recommended changes are shown on the enclosed program guidelines. The current program has been a great resource for low- and moderate-income homeowners in the City's historic districts. Extending this rehabilitation incentive to non-profit providers of housing for HUD income-eligible tenants further supports the City's goals for neighborhood revitalization, affordable housing, and historic preservation. By a vote of 5 to 0, the Historic Preservation Commission recommends that the City Council approve the proposed changes to create the Historic Preservation Housing Grant Program. '1 Sincerely, ~)~& ~~+ ~ David Stuart, Chairperson Historic Preservation Commission Enclosure . ; ) cc David Harris, Housing and Community Development Director Service People Integrity Responsibility Innovation Teamwork HISTORIC PRESERVATION HOMIiiO'.~NER ~ GRANT PROGRAM .............,.u...._....... Purpose Preservation grants (in the form of a forgivable I~t,~~~~}},=~==~ig . basis to income-qualifying owner-occupants and !iii;g~1!\;!ii;'WMm;~_m;;_~ In any local historic district or City-designated Landmark for specific rehabilitation projects that preserve the original building materials and character-definingfeaturesofthe 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). _~~il.~j;".)lJft:'.iljern'~illllflR;I,:II~;~ Eligible Property Located in a Historic Preservation District or designated as a City Landmark 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. If applicant moves within the five-year period, then 100% of the grant must be re-paid. ......-.. "iEllmlllw:tJ!:::l'iiglll\j Security Preferably at least a 2nd mortgage position and promissory note, or an 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. Terms Work must be initiated with three (3) months and completed with six (6) months from date of Historic Preservation Commission approval. The Commission may grant additional time, if needed. 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 materials that reflect the architectural character or significance of the property. 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 during regular business hours at the Housing and Community Development Department, 1805 Central Avenue, Dubuque, Iowa. All applications must include required information on income, specified work proposed and at least two estimates received from full-time contractors licensed and insured by the State of Iowa. 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 during regular business hours by appointment at the Planning Services Department, 50 W. 13th Street, Dubuque (City Hall). A grant review committee of City staff will 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 Historic Preservation Commission will review the grant applications, the proposed work, and the committee's recommendations. The Historic Preservation Commission must approve a Certificate of Appropriateness for all proposed work prior to issuance of permits or awards of grants. All applicable City review and permits must be completed; e.g., building permits, before any work begins. Work begun prior to obtaining a required permit, review or approval will not be eligible for grant assistance.