HomeMy WebLinkAbout~Master - Amendment to Purchase Agreement for Baker Subdivision Lots 6, 7, and 8 with Habitat for Humanity of Central Iowa RESOLUTION NO. 24-266
RESOLUTION APPROVING AMENDMENT TO PURCHASE AGREEMENT WITH
HABITAT FOR HUMANITY OF CENTRAL IOWA
FOR THE CITY OF AMES,IOWA
WHEREAS, in 2015, as part of the City's Community Development Block Grant(CDBG)
Program, the City acquired a 10+ acre site located at 321 State Avenue (formerly the site of the
Old Ames Middle School). The site was purchased to develop a subdivision that will support the
affordable housing goals of the City as a mixed-income development, with a minimum of 51% of
the homes affordable to low- and moderate-income households. The subdivision would consist of
27 buildable lots, 26 single-family lots, and one (1) lot for low-income multi-family units; and,
WHEREAS, in order to support the goal to provide affordable housing to low- and
moderate-income households at 80% or below the Ames median income, the City reduced the lot
sale value from the appraised value of$60,000 to $50,000. This sale price was agreed upon for all
eight lots,providing an$80,000 incentive in total for the construction of affordable housing; and,
WHEREAS, the City received a request from the Director of Habitat for Humanity of
Central Iowa(Habitat)requesting additional financial assistance related to additional construction
costs. Habitat has asked for a one-time benefit of a total of$13,500 of additional assistance related
to the first three lots developed out of the total eight-lot project; and,
WHEREAS, staff reviewed the request for assistance and notes that the additional
assistance is comparable to the percentage (approximately 17%) of additional funding recently
allocated to the Hatch Development team for the Creekside Apartments.However,the City is using
all of the available HOME funds for the Creekside project,while there are no HOME funds utilized
for the Habitat project. A lot sale price reduction for Habitat would be reflected as a decrease in
program income to the City's CDBG program; and,
WHEREAS, additional up-front assistance for the first three lots as a one-time sale price
reduction will assist Habitat with its construction of homes on the remaining lots that are part of
the project. No future requests for assistance are expected for the remaining lots; and,
WHEREAS, the provision of affordable housing opportunities for low- and moderate-
income households in the community continues to be a priority and goal of the City's
CDBG/HOME Consolidated Plan and the partnership with Habitat for Humanity of Central Iowa
is important in addressing that goal. The reduced sale price is a reduction in program income to
the CDBG program and is not a direct expense to the CDBG program. The reduction in projected
program income from Lots 6, 7, and 8 will not materially impact the upcoming Annual Action
Plan budget for 2024-2025. The amount of this additional incentive for the eight lots is comparable
to the additional incentive offered to the Creekside project in recognition of the unexpected project
cost increases.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that amendment to purchase agreement with Habitat for Humanity of Central Iowa is hereby
approved.
ADOPTED THIS 14" day of May, 2024.
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Renee kall, City Clerk John A. Haila, Mayor
Introduced by: Rollins
Seconded by: Betcher
Voting aye: Beatty-Hansen, Betcher, Junck, Rollins
Voting nay: None Absent: Corrieri Abstaining: Gartin
Resolution declared adopted and signed by the Mayor this 141"day of May, 2024.