RES 2004-0172 - NAHP grant for homebuyer assistance in Charles Place gAHA Aee
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RECEIVED Planning Department
te`.,a,i * Omaha/Douglas Civic Center
E�C�'` 011 FEB -2 PM 12: 21 1819 Farnam Street,Suite 1100
®i' f � Omaha,Nebraska 68183-0110
(402)444-550
o ° CITY + . i li (402)444-5150
47'fo FEBori• O M A H A, N . R Al S t(A Telefax(402)444-6140
City of Omaha Robert C.Peters
Mike Fahey,Mayor February 10, 2004 Director
Honorable President
And Members of the City Council,
The attached Resolution authorizes the Mayor of the City of Omaha to apply for and accept a
$416,000 Nebraska Affordable Housing Program (NAHP) grant to be used for homebuyer
assistance for eight single-family houses constructed in Charles Place (the western portion of the
Logan Fontenelle East Neighborhood Redevelopment Area) in north Omaha located on the east
side of 20t1i Street between Clark Street and Charles Street.
The application, known as the Charles Place Project, will have two goals: to make affordable
eight new single-family houses to low- and moderate-income households, and neighborhood
revitalization. The City is currently involved in efforts to revitalize the immediate vicinity of
Charles Place that includes commercial and housing development. This project will provide
additional funding to construct eight single-family houses in Charles Place for households with
80% of the area median family income to purchase.
Your favorable consideration of this Resolution will be appreciated.
Respectfully submitted, Referred to City Council for Consideration:
!/114t A /I/ t
Robert C. Peters Date Mayor's Office Date
Planning Director'
Approved as to Funding:
Stanley P. T. /kitipDate
Finance Director
P:\P1n 5\51.46s ap.d o c
APPLICATION FOR NEBRASKA AFFORDABLE HOUSING
DED USE ONLY
PROGRAM Application
HOMEBUYER PROGRAMS Number
Nebraska Department of Economic Development (DED)
PART I. GENERAL INFORMATION 04-HP-
Date Received
TYPE OR PRINT ALL INFORMATION
1. APPLICANT IDENTIFICATION 11 PERSON PREPARING APPLICATION
Applicant City of Omaha Name James Thele
Contact James Thele Address 1819 Farnam Street,Suite 1111
Address 1819 Farnam Street,Suite 1111 City/State/Zip Omaha,NE 68183
City/State/Zip Omaha,NE 68183 Telephone# (402)444-5206
Telephone# ( 402 ) 444-5206 Preparer's Tax ID#/SS# 479-56-8262
Fax Number ( (402) ) 444-6140 Email Address jthele@ci.omaha.ne.us
Application Preparer(check one)
Federal Tax ID Number 47-6006304 11 Local Staff 0 Out-of-State Consultant
Email Address jthele@ci.omaha.ne.us 0 In-State Consultant 0 Non-Profit Organization
0 Economic Development District 0 Other,Specify
3. Homebuyer Program Activities (check all that apply) 4. NAHTF Region Indicator(check all that apply)
Ej Construction costs for newly constructed homes 0 Northeast—Region 5(Northeast Investment Zone)
O Development subsidy on newly constructed homes ® Omaha—Region 7(Northeast Investment Zone)
® Direct Homebuyer Assistance for newly constructed homes
(gap subsidy,down-payment assistance,closing costs)
❑ Infrastructure development 5. HOUSEHOLDS (complete one option)
❑ Direct Homebuyer Assistance for previously existing homes =
(gap subsidy,down-payment assistance,closing costs) # at or below 50%of the Area Median Family Income
❑ Rehabilitation following homebuyer purchase as a support # 8 at or below 80%of the Area Median Family Income
activity to direct homebuyer assistance # at or below 100%of the Area Median Family Income
❑ Developer purchase of existing homes for rehabilitation and
resale
❑ Rehabilitation during developer ownership
❑ Development subsidy on developer purchased and rehabilitated
homes
O Direct Homebuyer Assistance for developer purchased and
rehabilitated homes
(gap subsidy,down-payment assistance,closing costs)
6. TYPE OF APPLICANT 7. PROJECT SERVICE AREA
X Unit of Local Government Local Housing Authority Area to be served(city,county,region,etc.Please list all communities)
Non-Profit 501(c)(3) Non-Profit 501(c)(4) City of Omaha
CHDO(State Designated) Other,specify
Legislative District(s) 11
Congressional District(s) 2
'8. CERTIFY'ING OFFICIAL:
To the best of my Iotowgedge 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.
Y Mayoro2/� t d
Mike Fahey, a d
Signature in ink Typed Name and Title Da SiSt led
SUBMIT THE ORIGINAL AND TWO COPIES(UNBOUND)OF THE ENTIRE APPLICATION TO:
•
ATTE 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
PO Box 94666-301 Centennial Mall South Department through the Statewide Relay system
9 _ by calling(800)833-7351(TDD). The relay
1 y operator should be asked to call DED at(800)
426-6505 or 402-471-7999.
APPROVED AS TO FORM C , Assistant City Attorney +).3.)ay
[HOUSING CATEGORY
PART II. FUNDING SUMMARY (Round amounts to the nearest hundred dollars.)
Code Description National NAHP Funds Other Funds Total Funds Source(s)of
Objective Other Funds
0501 Site Improvements LMH
0502 Streets LMH
0520 Direct Homebuyer LMH City-HOME
Assistance' 400,000 661,000 1,061,000 Private Funds
0521 Acquisition of Vacant LMH
Land
0522 Demolition2 LMH
0523 Relocation' LMH
0530 Housing LMH
Rehabilitation"
0541 Conversion LMH
0541 Reconstruction LMH
0542 SF New Construction LMH
Homebuyer5
0543 SF LMH
Purchase/Rehab/Resale
0580 Housing Management' LMH
0580a Hsg.Mgt.: Paint LMH
Testing/Risk
Assessments/
Clearance Testin 7
0180 Total Non- 400,000 661,000 1,061,000
Administration
0181 General 16,000 16,000
Administration8
1000 Total Project Costs - 416,000 661,000 1,077,000
NOTE: Clarification for the above activities should be directed to DED.
' Applies to Direct Homebuyer Assistance for previously owned homes and New Construction and includes down-payment assistance,
closing costs and gap subsidy(the difference between the appraised value and the sale price of the home).
2 Demolition is a support activity and must be done in conjunction with another activity.
3 Relocation is a support activity and must be done in conjunction with another activity.
4 Homeowner rehabilitation is a support activity to Acquisition of Property direct homebuyer assistance for previously owned homes
5 New Construction includes the hard costs for acquiring land,constructing homes and development subsidy(the difference between the
cost to develop and build the home and the appraised value of the home)
6 Housing Management/Project-related Soft Costs maximums are 8%for activities in which the applicant will own,sponsor or develop
housing. Other activities have a maximum of 7%. If homebuyer education classes are included in the program you may add 2%.
7 Paint testing,risk assessments,and clearance testing are not subject to the maximums but are limited to$1,000 per unit and supporting
documentation must accompany the application.
8 General Administration maximums are 4%. If a CHDO is awarded CHDO funds General Administration will be awarded in the form of
CHDO Operating.
Charles Place Homebuyer Project Summary
The Charles Place Homebuyer Project expands single-family new home ownership opportunities
in Near North Omaha, the area of the city most in need of redevelopment. Charles Place is
located on the east side of 20th Street between Clark Street and Charles Street. The City of
Omaha is requesting $416,000 in Nebraska Affordable Housing Program (NAHP) funds for
homebuyer assistance for eight single-family homes affordable to low- and moderate-income
households. The funds will be used to construct the homes and provide homebuyer financing to
ensure affordability for the target households.
Through a request for proposal process the City selected Holy Name Housing Corporation, an
experienced nonprofit developer, for the Charles Place homebuyer project. Nebraska Affordable
Housing Program funds will leverage other funds for eight single-family homes to begin the
implementation of the Logan Fontenelle East Redevelopment Plan that will create 50 new houses
in this target neighborhood over the next 5 years. Charles Place is adjacent to the new Concord
Square single-family subdivision that will be sold-out in 2004. Other developments underway
adjacent to Charles Place include eight units of Omaha Housing Authority lease-purchase single-
family homes planned for construction in 2004. Just to the north are the recently completed
Grace Plaza apartment complexes and the Hope Center recreation facility that will be completed
in late 2004. Other developments in the area include the North Omaha Business Park, the Long
School Marketplace shopping center and the 24th Street streetscape improvement project.
The City has already acquired building sites and is contributing the land to the project at no cost.
Affirmative marketing of the Charles Place houses and construction of a model home will begin
immediately upon execution of a NAHP grant agreement and release of funds. Completion of
the first four homes using 2004 NAHP funds will occur in 2005. All eight homes will be
completed by the end of 2006 and occupied by low- and moderate-income homebuyers in 2007.
The new houses will be of a split-level design to compliment the new homes constructed in the
Concord Square subdivision adjacent on the west side of 20th Street. The home designs require
minimum exterior maintenance and meet or exceed the International Building Code and
International Energy Conservation Code requirements. The market values of the houses are
projected to be $115,000 for a 975 square foot home and $118,000 for a 1,050 square foot home.
The estimated project cost of each design is $130,000 and $137,000, respectively.
The Charles Place homebuyer project will leverage $554,600 in private funds and $86,500 in
City HOME Program funds to match this $416,000 Nebraska Affordable Housing Program
grant. The City is proposing the use of state HOME Program funds to assist the homebuyer with
a $50,000 second mortgage. The NAHP funds will initially provide $50,000 per house for a zero
percent construction loan to the developer that will be returned to the City upon sale for use as
the homebuyer second mortgage.
Charles Place Homebuyer Project Summary
The Charles Place Homebuyer Project expands single-family new home ownership opportunities
in Near North Omaha, the area of the city most in need of redevelopment. Charles Place is
located on the east side of 20th Street between Clark Street and Charles Street. The City of
Omaha is requesting $416,000 in Nebraska Affordable Housing Program (NAHP) funds for
homebuyer assistance for eight single-family homes affordable to low- and moderate-income
households. The funds will be used to construct the homes and provide homebuyer financing to
ensure affordability for the target households.
Through a request for proposal process the City selected Holy Name Housing Corporation, an
experienced nonprofit developer, for the Charles Place homebuyer project. Nebraska Affordable
Housing Program funds will leverage other funds for eight single-family homes to begin the
implementation of the Logan Fontenelle East Redevelopment Plan that will create 50 new houses
in this target neighborhood over the next 5 years. Charles Place is adjacent to the new Concord
Square single-family subdivision that will be sold-out in 2004. Other developments underway
adjacent to Charles Place include eight units of Omaha Housing Authority lease-purchase single-
family homes planned for construction in 2004. Just to the north are the recently completed
Grace Plaza apartment complexes and the Hope Center recreation facility that will be completed
in late 2004. Other developments in the area include the North Omaha Business Park, the Long
School Marketplace shopping center and the 24th Street streetscape improvement project.
The City has already acquired building sites and is contributing the land to the project at no cost.
Affirmative marketing of the Charles Place houses and construction of a model home will begin
immediately upon execution of a NAHP grant agreement and release of funds. Completion of
the first four homes using 2004 NAHP funds will occur in 2005. All eight homes will be
completed by the end of 2006 and occupied by low- and moderate-income homebuyers in 2007.
The new houses will be of a split-level design to compliment the new homes constructed in the
Concord Square subdivision adjacent on the west side of 20th Street. The home designs require
minimum exterior maintenance and meet or exceed the International Building Code and
International Energy Conservation Code requirements. The market values of the houses are
projected to be $115,000 for a 975 square foot home and $118,000 for a 1,050 square foot home.
The estimated project cost of each design is $124,500 and $151,000, respectively.
The Charles Place homebuyer project will leverage $553,750 in private funds and $86,500 in
City HOME Program funds to match this $416,000 Nebraska Affordable Housing Program
grant. The City is proposing the use of state HOME Program funds to assist the homebuyer with
a$50,000 second mortgage. The NAHP funds will initially provide $50,000 per house for a zero
percent construction loan to the developer that will be returned to the City upon sale for use as
the homebuyer second mortgage.
c 25A 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
government that receives annual Entitlements from the U.S. Department of Housing and Urban
Development under the Housing and Community Development Act of 1974, as amended, and
the National Affordable Housing Act of 1990; and
WHEREAS, the City of Omaha, Nebraska has obtained its citizens' comments on
housing and community development needs, and on conducted public hearings upon the
proposed application and received favorable public comment respecting the application; and,
WHEREAS, the creation of affordable housing for ownership by low- and
moderate income households and the revitalization of distressed neighborhoods are priorities of
the City's Consolidated Submission for Community Planning and Development Programs; and,
WHEREAS, the City of Omaha is currently involved in affordable housing
development and neighborhood revitalization efforts within distressed neighborhoods; and,
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 accept the Nebraska Housing Affordable Housing
Program grant in the amount of $416,000 to used to construct eight single-family houses and
make them affordable to low- and moderate-income households in Charles Place;
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 with
the State of Nebraska Department of Economic Development to secure a Nebraska Affordable
Housing Program grant in the amount of Four Hundred Sixteen Thousand and No/100 Dollars
($416,000) to be used to construct eight single-family houses and make them affordable to low-
and moderate-income households in Charles Place located on the east side of 20th Street between
Clark Street and Charles Street.
P:\P1n5\5147sap.doc APPROVED AS TO FORM:
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By
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Adopted FEB. 0 2004 " " 7 — 0
- City Clerk
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