DISCLAIMER

 

PLANNING AND ECONOMIC DEVELOPMENT COMMITTEE


08–0324R


RESOLUTION AUTHORIZING TRANSFER OF $45,000 IN CDBG FUNDS AND $122,391 IN HOME FUNDS AND AMENDMENTS TO THE 2006 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM NORTHERN COMMUNITIES LAND TRUST (NCLT) DECONSTRUCTION – RECONSTRUCTION PROJECT AGREEMENT AND THE 2006 HOME HOUSING DEVELOPMENT PROJECTS NCLT CITY HOMES PHASE V AGREEMENT; INCREASING THE FUNDING AND EXTENDING THE TERMS OF THESE AGREEMENTS.

CITY PROPOSAL:

     RESOLVED, that the proper city officials are hereby authorized to enter into an amendment to CDBG Agreement 20139 with NCLT, substantially in the form of that on file in the office of the city clerk as Public Document No. ___________ extending the term of the agreement to December 31, 2008, and increasing the amount payable thereunder from $180,000 to $225,000, payable from 262 CD06CD - HOUS 2270, said funding being received from the 2007 contingency account; and

     BE IT FURTHER RESOLVED, that the proper city officials are hereby authorized to enter into an amendment to HOME Agreement 20137 with NCLT, substantially in the form of that on file in the office of the city clerk as Public Document No. _________ extending the term of the agreement to December 31, 2008, and increasing the amount payable thereunder from $192,460 to $314,851 payable from 260 020-5434, CD06HM CH06-2271, said funding being received from the 2008 HOME Home Owner Development Project and from the HOME program income account.

Project

Project Name

Budget

New
Amount

Amount of
Change

2006 HOUS 2270

NCLT Deconstruction-reconstruction

$180,000

$225,000

$45,000

2007 ADMC-AD04

Contingency

$45,969

$969

-$45,000

CH06-2271

NCLT City Homes Phase V

$192,460

$314,851

$122,391

CD08-HM

Homeowner development

$113,299

0

-$113,299

2220

Deferred revenue

$9,092

0

-$9,092


COMMUNITY DEVELOPMENT DIV


STATEMENT OF PURPOSE:  The purpose of this resolution is to increase the project funding as indicated and extend the term for each of these contract agreements until December 31, 2008.

 

NCLT has requested assistance to overcome some challenges in the current neighborhood revitalization efforts and affordable housing activities NCLT has undertaken. The additional funding support would help NCLT address current market conditions and challenging deconstruction projects and building sites.

 

The $45,000 (CDBG funds) will address unforeseen challenges associated with the deconstruction of a condemned property and the reconstruction of two single family homes located at 2901 and 2905 North 52nd Avenue East. The issues include increased costs for lead and asbestos abatement during deconstruction, the requirement for additional utility laterals which were thought to already exist, and the need to purchase additional property due to permit issues in order to build both units.

 

The $122,391 (HOME funds) will address unforeseen site specific issues at 315 West Third Street; 1728 and 1730 New Street; and 302 and 306 South 71st Avenue West. The increased costs at 315 West Third Street were due to increased costs for asbestos abatement and debris removal from squatters during demolition; and due to ledgerock that necessitated an engineered and pinned foundation. There is also a need for new retaining walls because the existing walls can not be repaired. The sites on New Street will need asphalt driveways due to the significant slope of the lots. For the sites at South 71st Avenue West, the neighbor had been using a portion of the property for parking for the past 20 years, believing they owned the property. The resolution of this issue required an unforeseen and costly legal process whereby an easement was created to allow the neighbor to continue to use a portion of the property.

 

Other unforeseen costs for these properties includes higher than expected property taxes, legal fees; and holding costs that have far exceeded the original budget due to the recent softening of the housing market. The additional HOME funds will allow NCLT to address these issues while still being able to offer the homes to income-qualified buyers and to keep the homes forever affordable through the land trust model.