DMMHA Replacement Housing Proposal

Presentation on Proposed Replacement Housing Factor

Fund

October 25, 2010

History of 5h Homeownership Program

HUD approval of original 5h plan on 9/22/92 HUD approval of amendment (narrative revisions) to

5h plan on 6/22/95 HUD approval of amendment (programmatic

revisions) to 5h plan on 5/31/00. This is the plan the department currently operates off of

MHGB approval of current 5h plan on 2/21/00 by roll call 00-508

Definition of Replacement Housing Factor Funds

The Replacement Housing Factor (RHF) is a Public Housing development fund from U.S. Department of Housing and Urban Development (HUD) available as a result of the sale of the Des Moines Municipal Housing Agency (DMMHA) scattered site housing units

These funds can only be used to develop or acquire new public housing units or the funding must be returned to HUD. This is a fund separate from the Affordable Housing Development Fund.

Definition of Need

The Polk County Housing Continuum (PCHC), the City of Des Moines Consolidated Plan and Des Moines Municipal Housing Agency show that there is a need for:

Affordable Housing units Larger bedroom units within the Public

Housing inventory (3 and 4 bedrooms) Eliminating blighted Public Housing units

Proposed Plan Construction of ten (10) to twenty (20) single family homes to be

located on existing property owned by the Agency over 5 years. Demolish the most blighted Agency owned properties (5h and

Disposition) Construct new single family homes with two (2) to four (4)

bedrooms, one (1) to one and a half (1 ½) baths, unfinished basement and/or a single car garage.

These replacement houses shall complement the existing housing stock within their respective neighborhoods and be Energy Star rated.

The Agency will strive to have no more than two (2) Public Housing homes within a four block radius. (De-concentration)

Supportive Services Occupants would need to meet HUD and DMMHA Public Housing

admissions policies and guidelines. The intent of this supportive services portion of the proposal is to transition

families to self-sufficiency - Cannot require participation

Example of some supportive services offerings are: Daycare support to attend classes or job training courses Emergency financial support related to transportation needs (personal

vehicle repairs, bus vouchers, etc.) Dependents that need tutoring supportive services to be at or above grade

level Continuing education/Job training (GED, Associates Degree, Skilled Trade

training or similar professional development program) Personal financial management classes Home care/preventative maintenance classes Other supportive services based on individual needs of family

Proposed Demolition Properties

Address Zoning Structure Ward Neighborhood 1125 11th Street R-3 Single Family III Cheatom 430 Orchard St.* R1-60 Single Family I Riverbend 1333 Mondamin R1-60 Single Family I Mondamin 1431 Stewart St.* R-2A Single Family II MLK Park 1248 McCormick St. R-2A Single Family II MLK Park 3308/3310 Kinsey Ave R1-60 Duplex II Gray’s Woods 1817 Capitol Ave. R1-60 Single Family IV Capital East 314 Indiana Ave. R10-60 Single Family I River Bend 1423 17th St. R1-60 Single Family I King Irving 1525/1527 E. 33rd St.** R1-60 Duplex II Gray’s Woods 106 Astor* R1-60 Single Family IV Gray’s Woods

*DMMHA must apply to rescind the three (3) properties from the 5(h) program in order to apply for the demolition and development approvals from HUD.

**Staff has received interest from an adjacent property owner desiring to acquire this parcel which staff supports as long as the Fair Market Value of the land and demolition costs are recouped with the resale of this parcel.

1125 11th Street

430 Orchard St.

1333 Mondamin Ave.

1431 Stewart St.

1248 McCormick St

3308/3310 Kinsey Ave.

1817 Capitol Ave.

314 Indiana Ave.

1423 17th St.

1525/1527 E 33rd St.

106 Astor St.

Rescission from 5(h)

Staff is recommending that the following properties be rescinded from the 5(h) program and placed in Disposition:

1325 College Avenue Ward I 1533 Jefferson Avenue Ward II 2403 Payne Road Ward I 1513 Jefferson Avenue Ward II 1933 24th Street Ward I

Next StepsApprovals from HUD

In order to move forward the DMMHA must apply for and receive approval from HUD to:

Convert remaining properties from 5(h) to Disposition

Demolish blighted properties Begin development plan for construction Hold public hearings regarding the above

changes to the Agency Plan

Key DatesEstimated Timeline

November, 2010 Proposal review (Polk County Housing Continuum), MHGB approval, Site

Plan Pre- Application (Community Development.)

November, 2010 Public Meetings December, 2010 Public Meetings February, 2011 Finalize Development Plan, MHGB Approval

HUD Submittal – Development Plan July, 2011 RFP Issuance/approval (MHGB) April, 2012 Construction Commences January, 2013 Construction Completed/Accepted (MHGB),

Construction Accepted (HUD)

Replacement Housing Factor Funds

Questions ?