Presentation on theme: "1 STOP SIX MODEL BLOCK PROGRAM By the Housing and Economic Development Department January 5, 2011."— Presentation transcript:
1 STOP SIX MODEL BLOCK PROGRAM By the Housing and Economic Development Department January 5, 2011
2 Purpose of the Presentation Review of the Stop Six Model Block Program Funding Review the spending options available –Continuation of Home Improvement Program –Existing Home Selection for Acquisition, Rehab, and Resale –Demolition of Selected Homes Timeline for Decision Making
3 Stop Six Model Block Budget and Expenditure Summary ActivityAppropriationSpentBalanceSource Minor Home Repair $50,310.22$23,285.22$27,025.00CDBG (2005) Acquisition /Rehab/Resale $563,614.670 CDBG HOME (2005)* Sign Markers$ 45,200.00$2,000.00$43.200.00CDBG (2005) Home Improvement Program $540,875.11$331,088.80$207,786.31HOME (2004- 2005) * UDAG Total$1,200,000.00$356,374.02$841,625.98 *HOME Funds must be spent by September 2011
5 Homeowner Improvement Program $207,786.31 Available Basic requirements as the program currently exists: –Total Household Income must be at 80% or less than the Area Median Income –There is a current maximum of $33,500 assistance per house –House must be Owner Occupied –Payback within 10 Years In order to accommodate some of the homes that need repairs in excess of those outlined in the Minor Home Repair program, the maximum amount of the loan may be increased over the current limit of $33,500 –However, this will likely increase the federal affordability requirement associated with the Home Improvement Program to greater than 15 years.
6 Home Improvement Program ActivityAppropriationSpentBalanceSource Home Improvement Program $461,116.21$333,088.80$128,207.41HOME Home Improvement Program $79,758.90$0$79,758.90UDAG Total$540,875.11$333,088.80$207,786.31
7 HIP Program Guidelines at 80% of AMI Max of $33,500 assistance Owner Occupied Payback within 10 Years Owner must maintain escrow account for insurance and taxes
8 HIP Program Ineligible Activities New construction, replacement, or the completion of unfinished spaces not required to meet Housing Quality Standards (HQS). Materials, fixtures, equipment or landscaping of a type of quality which exceeds that customarily used for surrounding properties of the same general type to be rehabilitated. Acquisition of land. Refinancing or repayment of existing debt against the property or the applicant.
9 HIP Program Ineligible Activities, continued Repairs to mobile homes or manufactured homes, if the property is not taxable as real estate of attached to a permanent foundation Cost of repairs incurred prior to the execution date of the assisted contract or not included in the signed contract. Additional items that are ineligible: Barbeque PitSidewalkPatioDeck FireplacesSprinkler Systems Swimming PoolStorage Sheds Flower BoxGreenhouseKennelOutdoor Fireplace ToolsWaterproofingSaunaSatellite Dish
10 Homeowner Improvement Program $207,786.31 Available Options (1) Increase Maximum Assistance If the current HIP Program maximum assistance level is adjusted to allow increased loan amounts of up to $50,000, up to 4 residences may be eligible assistance. increase affordability period Timing (2)Leave Maximum Assistance at $33,500 Timing (3)Move all available funding to a new activity
11 Acquisition, Rehab, and Resale $563,614.67 available funding Funds could also be used for the acquisition of lots. –Existing structures on these lots could then be rehabilitated –Vacant lots could be used for new construction of affordable houses –Existing structures on these lots could be demolished where needed. –Whether the houses are rehabilitated, demolished, or contain new construction, the lots may then be resold.
15 Acquisition, Rehab, and Resale $563,614.67 available funding –approximately $100,000- $120,000 per house for new construction –Rehab is limited to $40,000-$50,000 Options (1)Acquire lots and construct or rehab - approximately 4 or 5 new construction (2)Move funding to different activity
16 Demolition No specific funding identified, however can move CDBG funds to this activity Option –Demo all or some city owned vacant properties that cost more than $40,000 to rehab –Demo houses on city owned lots only for new construction
17 Acquisition, Rehab, and Resale and Demo Example 10 Houses identified for Demolition =Depending on the project, demolition could cost $8,000 per unit for a total of $80,000. This leaves $760K for new construction =About 6 new houses Total Houses Demolished= 10 Total New Houses Built= 6
18 Timeline Next Meeting on January 19 th –Make decision on activities to be funded and amount of funding Begin Federal Process to spend funds within time allowed
19 MODEL BLOCKS PROGRAM Housing and Economic Development Department January 5, 2011
20 Stop Six Minor Home Repair Program – ActivityAppropriationSpentBalanceSource Minor Home Repair $50,310.22$23,285.22$27,025.00CDBG (2005)
21 Stop Six Neighborhood Signs/Markers *Neighborhood Signs were ruled ineligible CDBG expenditures ActivityAppropriationSpentBalanceSource Sign Markers$ 45,200.00$2,000.00$43,200.00CDBG (2005)
22 Stop Six Acquisition /Rehab/Resale – 2005 HOME & CDBG Funds ActivityAppropriationSpentBalanceSource Acquisition /Rehab/Resale $332,689.780 CDBG (2005) Acquisition /Rehab/Resale $196,124.890 HOME (2005) Acquisition /Rehab/Resale $9,8000$9,800.00HOME (2004) Acquisition /Rehab/Resale $25,000.000 HOME (2004) Total$563,614.670