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RES 2009-0175 - Grant funds for rehabilitation financing assistance • oFr,- F Planning Department �.! ,aw�+ Omaha/Douglas Civic Center ~� p 1819 Farnam Street,Suite 1100 �®. ,4 1!4 09 FEB 17 r J 12: 33 Omaha,Nebraska 68183 � (402)444-5150 ° �ro C i i'fir CLERK Telc fax(402)444-6140 -EDFE9" OMAHA, NEBRASit..�tt City of Omaha Steven N.Jensen,AI DirectorL Mike Fahey,Mayor February 24,2009 Honorable President and Members of the City Council, The attached Resolution authorizes the Mayor of the City of Omaha to apply for and accept $330,000.00 Nebraska Affordable Housing Trust Funds (NAHTF) to be used in conjunction with Omaha's Home Investment Partnerships (HOME) Program and Lead-based Paint Hazard Control Grant. The City will use NAHTF to provide rehabilitation financing assistance to investor owners of single-family(one to four units) rental properties in older neighborhoods east of 72"a Street and to the distressed multi-family complex at 4450 Redman Avenue. All of the houses will be rehabilitated as part of the City's Consolidated Plan previously approved by the City Council, and will be occupied by persons whose household incomes are at or below 80% of the Median Income by Family Size as established annually by the U.S. Depaiti lent of Housing and Urban Development. The use of the NAHTF award is estimated to help rehabilitate,24 investor-owned housing units(12 single-family housing units and 12 multi-family units). Total estimated cost for this rehabilitation program is $855,400.00 comprised of$330,000.00 in NAHTF, $127,700.00 in 2009 HOME Program Funds and/or Lead-based Paint Hazard Control funds and $379,700.00 in private funds. Your favorable consideration of this Resolution will be appreciated. Respectfully submitted, Referred to City Council for Consideration: 2 •tt.o5it 11010' Steven N. Jense P, LA Date Mayor's Office Date Planning Director Approved: • alc.-, (1)U- — ' 43).A • Carol A. Ebdon %p i Date Finance Director Plnlsfl 229-cover letter C1.: W W © CD CD p.. I° °• 0 0 0 0 °' * CII 0 © © © o r* 0 0 0 0 assigned to the project. He/she then invests private funds for rehabilitation costs first, after the City issues a Notice to Proceed. The City's matching funds are paid last. The developer submits all pay requests to the City prior to the expenditure of any funds. The Construction Specialist approves the work upon completion. After sale of the property to an eligible homebuyer, the City forgives its matching fund loan to the developer. Homebuyer Downpayment Assistance is a deferred payment loan, without interest, in an amount not to exceed 40% of the purchase price for properties located in the NRSA and 30% of the purchase price for properties located east of 72nd Street but outside the NRSA. The loan is available to any creditworthy and qualified homebuyer whose annual household income is 80% and below the HUD Median Income by Family Size. The principal amount the loan depreciates at the rate of 5% per year for 10 years. The remaining 50% balance of the principal is due upon sale or transfer of the property. Family Housing Advisory Service homebuyer education is required to qualify. 60 • .11I61 Buster Brown, City Clerk ASSISTANT CITY ATTORNEY •APPLICATION FOR DED USE ONLY NEBRASKA AFFORDABLE HOUSING PROGRAM 2008 Set Aside—Rental Rehab Application Tenant-occupied rehabilitation program and Purchase Rehabilitation Rental Number Nebraska Department of Economic Development (NDED) Date Received PART I. GENERAL INFORMATION TYPE OR PRINT ALL INFORMATION . ,1. APPLICANT IDENTIFICATION 2. PERSON PREPARING APPLICATION Applicant City of Omaha Name James R.Thele Contact James R.Thele Address 1819 Farnam Street,Suite 1111 Address 1819 Farnam Street,Suite 1 1 11 City/State/Zip Omaha,NE 68183 Telephone# (402)444-5206 City/State/Zip Omaha,NE 68183 Fax# (402)444-6140 Telephone# ( 402 ) 444-5206 Email Address jthele@ci.omaha.ne.us Fax Number ( 402 ) 444-6140 Application Preparer(check one) Federal Tax ID Number 47-6006304 0 Local Staff 0 Out-of-State Consultant ❑ In-State Consultant 0 Non-Profit Organization Email Address jthele@ci.omaha.ne.us ❑ Economic Development District 0 Other,Specify 3. Program Activities (check all that apply) ❑ Development subsidy on rehabilitated properties(the difference .4,SERVICE AREA between the cost to purchase and rehabilitate and the value of the property) Area to be served(city,county,region,etc) ❑ Rehabilitation following homebuyer purchase as a support Douglas County,Omaha activity to direct homebuyer assistance Legislative District 5,7,8,9, 11, 13,20 ❑ Developer purchase of existing homes for rehabilitation and Congressional District 2 resale . • Rehabilitation during developer ownership 5..HOUSEHOLDS ❑ Development subsidy on developer purchased and rehabilitated # at or below 50%of the Area Median Family Income homes ❑ Capitalization of operating reserves(on units owned long-term u by the City of Omaha) #26 at or below 80/o of the Area Median Family Income ❑ Capitalization of replacement reserves (on units owned long- term by the City of Omaha) 6. TYPE OF APPLICANT ❑ Owner-occupied Rehabilitation X Local Government Rehabilitation of rental properties not owned by the City of Omaha 8. CERTIFYING OFFICIAL: To the best of my knowledge and belief,data and information in this application are true and correct,including any commitment of local or other resources.This application has been duly authorized by the governing body of the applicant. This applicant will comply with all Federal and state requirements governing the use of NAHP funds. Mike Fahey, Mayor FIQ � .0407 Signature in ink Typed Name and Title Date Vgned SUBMIT THE ORIGINAL AND FOUR COPIES OF THE ENTIRE APPLICATION TO: Nebraska Department of Economic Development Individuals who are hearing and/or speech Division of Community and Rural Development impaired and have a TDD.may contact the APPROVED AS TO PO Box 94666-301 Centennial Mall South Department through the Statewide Relay system C ` r Lincoln,NE 68509-4666 by calling(800) 52(TDD). The relay (402)471-3111 be ask(800)426-6505 Fax(402)471-8405 operator should be asked to call DED at(800) v1$lU!'' 426-6505 or 402-471-7999. ASSISTANT CI.Tv ATTC.pNEv • ATTEST: Wa/o y Buster Br wn, City Clerk ousing Advisory Service homebuyer education is required to qualify. 60 • .11I61 Buster Brown, City Clerk ASSISTANT CITY ATTORNEY • HOUSING CATEGORY PART II. FUNDING SUMMARY (Round amounts to the nearest hundred dollars..) Code Description NAHP Funds Other Funds Total Funds Source(s)of Other Funds 0523 Relocation' 541 Rehabilitation $230,000 $127,700/ $715,400 City HOME/ SF 1-4 Unit bldgs $357,700 Private 561 Rehabilitation $40,000 $40,000 Multi-family • .Subtotal $270,000 $485„400 ,,• $755,400 0580 Housing Management2 $30,000 $0 $30,000 0580a Hsg.Mgt.: Paint Testing/Risk Assessments/Clearance Testing3 581 Capitalization of Replacement Reserves for rental housing to be owned by the city of Omaha 582 Capitalization of Operating Reserves for rental housing to be owned by the City of Omaha • Subtotal . r ' $30,000 $0 $30,000_. • 0181 General Administration4 $30,000 $0 $30,000 • 1000 ' Total Project Costs $127,700/ • $330,000 • . $815,400 $357,700 • NOTE: Clarification for the above activities should be directed to DED. Part II. Funding Summary Instructions • Round all numbers to the nearest one hundred dollars • Enter the dollar amounts into the appropriate boxes in the funding summary table. • Describe ALL other funds,including funds provided by the homebuyer,lenders,builders,etc. • If you have any questions about Activity Codes direct them to NDED • Support activities are activities that are only allowed to be funded with NAHP in conjunction with primary activities. Support activities include,but are not limited to: infrastructure costs,relocation,demolition,homeowner rehabilitation. • The Part II Funding Summary should correlate with the Part III Project Budget&Financing. One Page Project Summary Instructions Include a one-page summary of the proposed project. • • Relocation is a support activity and must be done in conjunction with another activity. 2Pain testing,risk assessments,and clearance testing are limited to$1,000 per unit and supporting documentation must accompany the application. 3Paint testing,risk assessments,and clearance testing are limited to$1,000 per unit. 4 General Administration recommended maximum is 6%. correct,including any commitment of local or other resources.This application has been duly authorized by the governing body of the applicant. This applicant will comply with all Federal and state requirements governing the use of NAHP funds. Mike Fahey, Mayor FIQ � .0407 Signature in ink Typed Name and Title Date Vgned SUBMIT THE ORIGINAL AND FOUR COPIES OF THE ENTIRE APPLICATION TO: Nebraska Department of Economic Development Individuals who are hearing and/or speech Division of Community and Rural Development impaired and have a TDD.may contact the APPROVED AS TO PO Box 94666-301 Centennial Mall South Department through the Statewide Relay system C ` r Lincoln,NE 68509-4666 by calling(800) 52(TDD). The relay (402)471-3111 be ask(800)426-6505 Fax(402)471-8405 operator should be asked to call DED at(800) v1$lU!'' 426-6505 or 402-471-7999. ASSISTANT CI.Tv ATTC.pNEv • ATTEST: Wa/o y Buster Br wn, City Clerk ousing Advisory Service homebuyer education is required to qualify. 60 • .11I61 Buster Brown, City Clerk ASSISTANT CITY ATTORNEY Rental Rehabilitation Program The City of Omaha redevelops neighborhoods principally with homebuyer programs, owner- occupied rehabilitation programs and rental rehabilitation programs. Nebraska Affordable Housing Trust Fund (NAHTF) homebuyer and owner-occupied rehabilitation programs currently assist neighborhoods in older areas of the Omaha. A NAHTF Rental Rehabilitation Program targeted to these neighborhoods helps address the major remaining housing need. The Omaha Rental Rehabilitation Program (RRP) will rehabilitate 26 housing units, thereby preserving affordable housing, upgrading neighborhoods and supporting other NAHTF programs. All units will be affordable to households with incomes at or below 80% of the area Median Family Income. The overall cost to rehabilitate these housing units is projected at $815,400, including $330,000 in 2008 NAHTF funds. Rental property owners will invest a minimum of$357,700 in private funds in rehabilitating their properties. The City of Omaha will invest $127,700 in 2009 HOME Program funds and may provide HUD Lead-based Paint Hazard Control funds. The Omaha Rental Rehabilitation Program provides rehabilitation financing assistance to investor owners of single-family (one to four units) rental properties and to the distressed multi- family complex at 4450 Redman Avenue. The RRP program will rehabilitate 18 single-family housing units and 8 multi-family units. Investor owners of single-family houses are eligible for assistance if their property is located in older neighborhoods east of 72nd Street. Eligible property rehabilitation activities are limited to those necessary to correct substandard conditions, to make essential improvements and to repair major systems in danger of failure. City of Omaha Planning Department Construction Specialists will review and approve the proposed rehabilitation work and approve the work upon completion. The property must pass a lead-based paint risk assessment. Investors must own the property and match the RRP funds with private funds on a one-to-one basis. The minimum rental rehabilitation assistance required from the City is $1,000 per unit and the maximum per unit assistance from NAHTF and/or HOME sources does not exceed the lesser of$20,000 or the below limits: Unit Size Maximum Assistance Efficiency Unit $9,000 1 Bedroom Unit $10,000 2 Bedroom Unit $11,000 3 Bedroom Unit $12,000 4 Bedroom Unit and Larger 50%of Project Cost* Handicap Unit(including physically visitable and/or accessible) $2,000** Lead Based Paint Reduction $2,000** Property Located in NRSA $2,000** *Not to exceed$20,000 of NAHTF and/or HOME funds per unit. **Additional subsidy per unit;except four bedroom units and larger. The property owner must rent to low- and moderate-income households and is responsible for acquiring and maintaining documentation on tenant race/ethnicity, demographics and income, utility allowance and rent compliance during the affordability period. The contract rent plus utility allowance (established by the City) may not exceed the HOME rent limit. All units assisted under this program will meet full NDED Rehabilitation Standards and applicable City code. The owner must maintain these housing standards during the affordability period. The property must be affirmatively marketed. Assistance is in the form of a deferred payment loan, forgiven at the end of the applicable affordability period. • 0 0 0 0 0 H ?' o o o o 0 1 Vo tO t$ o o o rrItn o 0 O 1ry[� V v ER bin- GA EA 0 N , E • 0 0 0 0 0 +4 w -) o EA EA EAN. et MI .� N. > tI t� A, 4 > 0 c, oA sM�- �'cfi- w a� o o n-0 ` 5 v ;. W o N EA EA EA 0 V D 'G . y N N EA E to -0 •-- o p a) t �' 0 0 0 0 0 x a W 0 0 0 0 0 o 0 0 0 0 0 z �, N en en M r.., . 4; En bl4 .0 N c. a) : es H '4 .-, ") Y. - Yr CI 4- N ,=, N 0 0 o o 0 - o O s f- C r CL 44.. O 'CS i bA '4- 0 64 Q �+ i+ CCI C...)a CI 0 'b O O 0 ' i+ L :��+ as c. L ....'.� � .'..I Q �O Z a) cn 0 Q Cl "w- C a, 1.1 b b O ,� 3 c 00c 0 0 0 O .u..' 5 v) � in r-+ O U 0 3 ,-.1 on cw • U xi a) G-. 0 • z rz .." 7-1 -4 ; • ...- 0 •'" .. .--. o el cd 0 En y . O a 4) 0 •�' .4 --I N .� w a H 2 c w danger of failure. City of Omaha Planning Department Construction Specialists will review and approve the proposed rehabilitation work and approve the work upon completion. The property must pass a lead-based paint risk assessment. Investors must own the property and match the RRP funds with private funds on a one-to-one basis. The minimum rental rehabilitation assistance required from the City is $1,000 per unit and the maximum per unit assistance from NAHTF and/or HOME sources does not exceed the lesser of$20,000 or the below limits: Unit Size Maximum Assistance Efficiency Unit $9,000 1 Bedroom Unit $10,000 2 Bedroom Unit $11,000 3 Bedroom Unit $12,000 4 Bedroom Unit and Larger 50%of Project Cost* Handicap Unit(including physically visitable and/or accessible) $2,000** Lead Based Paint Reduction $2,000** Property Located in NRSA $2,000** *Not to exceed$20,000 of NAHTF and/or HOME funds per unit. **Additional subsidy per unit;except four bedroom units and larger. The property owner must rent to low- and moderate-income households and is responsible for acquiring and maintaining documentation on tenant race/ethnicity, demographics and income, utility allowance and rent compliance during the affordability period. The contract rent plus utility allowance (established by the City) may not exceed the HOME rent limit. All units assisted under this program will meet full NDED Rehabilitation Standards and applicable City code. The owner must maintain these housing standards during the affordability period. The property must be affirmatively marketed. Assistance is in the form of a deferred payment loan, forgiven at the end of the applicable affordability period. c a5A CITY OF OMAHA LEGISLATIVE CHAMBER Omaha,Nebraska RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA: WHEREAS, the City of Omaha, Nebraska is an eligible unit of general local government that receives annual Entitlements from the U.S. Department of Housing and Urban Development under the National Affordable Housing Act of 1990 and has received an Economic Development Initiative (EDI) Grant, pursuant to the Consolidated Appropriations Act of FY 2004 (PL 108-199); and, WHEREAS, the City of Omaha,Nebraska, has obtained its citizens' comirierits on housing and community development needs, and on February 5, 2009, conducted a,public hearing upon the proposed application and received favorable public comment respecting the application; and, WHEREAS, the rehabilitation of investor-owned single-family and multi-family housing units in targeted neighborhoods is a priority of the City's Consolidated Submission for Community Planning and Development Programs; and, WHEREAS, the City of Omaha currently administers programs in which NAHTF and lead-based paint hazards are a part, including the owner-occupied exterior rehabilitation program, the investor rental rehabilitation program, and the single-family rehabilitation resale program; and, WHEREAS, the NAHTF will provide rehabilitation financing assistance to investor-owners of single-family (one to four units) rental properties in older neighborhoods east of 72nd Street, and to the distressed multi-family complex at 4450 Redman Avenue; and, WHEREAS, the cost to rehabilitate 24 investor-owned housing units is estimated to be $855,400.00 comprised of $330,000.00 NAHTF, $127,700.00 in City HOME program funds and/or Lead-based Paint Hazard Control funds; and, By Councilmember Adopted City Clerk Approved Mayor rehabilitation work and approve the work upon completion. The property must pass a lead-based paint risk assessment. Investors must own the property and match the RRP funds with private funds on a one-to-one basis. The minimum rental rehabilitation assistance required from the City is $1,000 per unit and the maximum per unit assistance from NAHTF and/or HOME sources does not exceed the lesser of$20,000 or the below limits: Unit Size Maximum Assistance Efficiency Unit $9,000 1 Bedroom Unit $10,000 2 Bedroom Unit $11,000 3 Bedroom Unit $12,000 4 Bedroom Unit and Larger 50%of Project Cost* Handicap Unit(including physically visitable and/or accessible) $2,000** Lead Based Paint Reduction $2,000** Property Located in NRSA $2,000** *Not to exceed$20,000 of NAHTF and/or HOME funds per unit. **Additional subsidy per unit;except four bedroom units and larger. The property owner must rent to low- and moderate-income households and is responsible for acquiring and maintaining documentation on tenant race/ethnicity, demographics and income, utility allowance and rent compliance during the affordability period. The contract rent plus utility allowance (established by the City) may not exceed the HOME rent limit. All units assisted under this program will meet full NDED Rehabilitation Standards and applicable City code. The owner must maintain these housing standards during the affordability period. The property must be affirmatively marketed. Assistance is in the form of a deferred payment loan, forgiven at the end of the applicable affordability period. C-25A CITY OF OMAHA LEGISLATIVE CHAMBER Omaha,Nebraska Page 2 WHEREAS, it is in the best interests of the citizens of the City of Omaha for the • Mayor of the City of Omaha to apply for and to accept the Nebraska Housing Assistance Trust Funds in the amount of$330,000.00 to be used for a Rental Rehabilitation Program'for investor- owned housing units in older neighborhoods east of 72nd Street. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA: THAT, the Mayor is hereby authorized to execute all necessary documents and amendments with the State of Nebraska Department of Economic Development to secure Nebraska Affordable Housing Trust Funds in the amount of Three Hundred Thirty Thousand Dollars and no/100 Dollars ($330,000.00) to be used to rehabilitate twelve (12) investor-owned single-family housing units in older neighborhoods east of 72nd Street and the distressed multi- family complex at 4450 Redman Avenue. All units will be affordable to households With incomes at or below 80% of the area Median Family Income. PLNLSF 1229-res APPROVED AS TO FORM: <-----4----- 7' ' •S",-----‘--Z.C7._ 2.(1R104( 445 1 CITY ATTORNEY DATE BY /040140111" .4%.4)' IAA- Ado - _ Councilmember pted= : 1- 8-2 4 2009 a-® City ClerkaVeg Approved` '�4. cloe44/.../.1 rental properties in older neighborhoods east of 72nd Street, and to the distressed multi-family complex at 4450 Redman Avenue; and, WHEREAS, the cost to rehabilitate 24 investor-owned housing units is estimated to be $855,400.00 comprised of $330,000.00 NAHTF, $127,700.00 in City HOME program funds and/or Lead-based Paint Hazard Control funds; and, By Councilmember Adopted City Clerk Approved Mayor rehabilitation work and approve the work upon completion. The property must pass a lead-based paint risk assessment. Investors must own the property and match the RRP funds with private funds on a one-to-one basis. The minimum rental rehabilitation assistance required from the City is $1,000 per unit and the maximum per unit assistance from NAHTF and/or HOME sources does not exceed the lesser of$20,000 or the below limits: Unit Size Maximum Assistance Efficiency Unit $9,000 1 Bedroom Unit $10,000 2 Bedroom Unit $11,000 3 Bedroom Unit $12,000 4 Bedroom Unit and Larger 50%of Project Cost* Handicap Unit(including physically visitable and/or accessible) $2,000** Lead Based Paint Reduction $2,000** Property Located in NRSA $2,000** *Not to exceed$20,000 of NAHTF and/or HOME funds per unit. **Additional subsidy per unit;except four bedroom units and larger. The property owner must rent to low- and moderate-income households and is responsible for acquiring and maintaining documentation on tenant race/ethnicity, demographics and income, utility allowance and rent compliance during the affordability period. The contract rent plus utility allowance (established by the City) may not exceed the HOME rent limit. All units assisted under this program will meet full NDED Rehabilitation Standards and applicable City code. The owner must maintain these housing standards during the affordability period. The property must be affirmatively marketed. Assistance is in the form of a deferred payment loan, forgiven at the end of the applicable affordability period. r%' ° 5. 8 N o g d z o CD I U1'iiUi1L C o a' •A AD a. O CD p- O N a .-..O 1 O . O 1'1 0 M il ! 1 `�IL !: O gx4 * '-':. cP ,„i-) • C-1\ \ o p, N p c4 p w P O 0 _ B.r1i ! LHdIa c4 ao ,::3cam, g o 'C En ‘C ; co O co co o co • I . r, i