HomeMy WebLinkAboutA029 - October 28, 2025, Regular Meeting of the Ames City CouncilTo:Mayor and City Council Members
From:Vanessa Baker-Latimer, Housing Coordinator
Date:October 28, 2025
Subject:Acknowledgement of Covenants in conjunction with the Townhomes of
Creekside, LLP, to receive its LIHTC Award for the construction of 38
units in the Baker Subdivision as part of the City HOME program.
Item No.
MEMO
In May 2024, the City of Ames signed Loan Documents, including a Mortgage,
with Townhomes of Creekside, LLLP, to construct thirty-eight (38) Low-Income
Housing Tax Credit (LIHTC) multifamily housing units on Lot 27 in the Baker
Subdivision.
The City of Ames committed approximately $2.1 million of its HOME funds to
receive approximately eight (8) City HOME Assisted Units, and four (4) Section 8
units (non-HOME Assisted Units). The project also received $500,000 of State
HOME funds for two (2) HOME-Assisted units. Construction of the 38 units
began in July 2024, and leasing started in September 2025.
Staff received a request from Townhomes of Creekside LLP that, in conjunction
with their LIHTC award from the Iowa Finance Authority (IFA), they must submit
their final 8609 application to receive the project's tax credits. The application is
due on November 1, 2025. As part of this application, IFA requires that all
mortgage holders (City of Ames) record an “Acknowledgment of
Covenants” that references the Land Use Restrictive Agreement (LURA).
The LURA acknowledges that the property has a Land Use Restrictive
Agreement that is a part of the LIHTC Program. The LURA was amended
once, so IFA requires two Acknowledgments of Covenants for the City to sign.
Our Legal Department has reviewed the LURA and has determined that it does
not affect the City’s signed and recorded loan documents with Townhomes of
Creekside. LLC. In fact the LURAs provide that the “Mortgage Holder, which
is the holder of the above-described Mortgage, for itself and its successors
and assigns, does hereby agree (a) that the restrictive covenants described
in the LURA run with the land as provided in the LURA and (b) that certain
restrictive covenants, as set forth in Section 4 of the LURA, will remain in
place for a period of three years after any foreclosure or deed in lieu of
foreclosure”.
City Clerk's Office 515.239.5105 main
515.239.5142 fax
515 Clark Ave. P.O. Box 811
Ames, IA 50010
www.CityofAmes.org
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Therefore, the City Manager is recommending that the City Council approve
a motion for the Mayor to sign both LURAs (see attachments) in order for
Townhomes of Creekside, LLL, to receive its LIHTC funding.
ATTACHMENT(S):
1-STORY-23-10-12F - Acknowledgment of Covenants - City of Ames #1.pdf
2-STORY-23-10-12F - Acknowledgment of Covenants -City of Ames #2.pdf
City Clerk's Office 515.239.5105 main
515.239.5142 fax
515 Clark Ave. P.O. Box 811
Ames, IA 50010
www.CityofAmes.org
2
Document: ACKNOWLEDGMENT OF COVENANTS
Preparer Information:
(Individual’s Name, Street Address, City, Zip, Phone)
Return Document To:
Tax Credit Allocation Division, Iowa Finance Authority, 1963 Bell Avenue, Suite 200, Des
Moines, IA 50315
Grantors: City of Ames Grantee: Iowa Finance Authority
Legal Description: Exhibit A
Reference Number: 2024-07174
Project Number & Name: 23-10 Townhomes at Creekside,
LLLP
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ACKNOWLEDGMENT OF COVENANTS
RE: 23-10 Townhomes at Creekside, LLLP
WHEREAS, Townhomes at Creekside, LLLP (the “Owner”) is the owner of a 38
unit rental housing development located in the City of Ames, County of Story, State of Iowa, on
the real property described above, known as Townhomes at Creekside, LLLP (the "Project");
and
WHEREAS, the Iowa Finance Authority (the “Authority”) has been designated by Iowa
Code Section 16.35 as the housing credit agency for the State of Iowa for the allocation of low-
income housing tax credits under Section 42 of the Internal Revenue Code of 1986, as amended,
and the Treasury Regulations thereunder (the "Code"); and
WHEREAS, in connection with an allocation of tax credits for the Project, the Owner has
executed a Land Use Restrictive Covenants Agreement for Low-Income Housing Tax Credit
Program (the “LURA”), as amended from time to time, dated 9/16/2024 , and recorded in the
STORY County Recorder’s Office on 10/2/2024 at 2024-07174 .
WHEREAS, the LURA creates covenants running with the land for the purpose of
enforcing certain requirements of Section 42 of the Code and certain additional undertakings of
the Owner in connection with its Application (as defined in the LURA) by regulating and restricting
the use and occupancy of the Project as set forth therein; and
WHEREAS, to satisfy section 2(k) of the LURA the Owner has requested that City of Ames
(the “Mortgage Holder”), as the holder of a mortgage from the Owner dated as of June 14, 2024
(the “Mortgage”), and recorded in the Story County Recorder’s Office on June 19, 2024 at 2024-
04154, execute this Acknowledgment of Covenants to acknowledge the Mortgage Holder’s
consent to the LURA;
NOW THEREFORE, in consideration of and to induce the Authority to allocate tax credits
to the Project, Mortgage Holder hereby agrees as follows:
1. Mortgage Holder, which is the holder of the above-described Mortgage, for itself and its
successors and assigns, does hereby agree (a) that the restrictive covenants described in the
LURA run with the land as provided in the LURA and (b) that certain restrictive covenants, as
set forth in Section 4 of the LURA, will remain in place for a period of three years after any
foreclosure or deed in lieu of foreclosure.
2. Mortgage Holder acknowledges (a) that, before its execution of this Agreement, it has
reviewed or had the opportunity to review the LURA, (b) that it consents to the Owner’s
execution of the LURA, and (c) that the LURA imposes substantial restrictions on the use of
the property comprising the Project.
-Remainder of Page Intentionally Blank –
[Signature Page Follows]
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DATED this day of October, 2025.
City of Ames, as Mortgage Holder
By:
___________________________________________________
Printed Name:
Its:
, as
By:
___________________________________________________
Printed Name:
Its:
STATE OF :
: ss.
COUNTY OF :
This record was acknowledged before me this day of , , by as
of .
__________________________________________________
Signature of Notary Public
STATE OF :
: ss.
COUNTY OF :
This record was acknowledged before me this day of , , by as
of .
__________________________________________________
Signature of Notary Public
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Exhibit A – Legal Description
Parcel 1: Lot Twenty-Seven (27), Baker Subdivision, Ames, Story County, Iowa. Parcel 2:
Nonexclusive Easements for the benefit of Parcel 1 as created by that certain Easement
Reservation (Storm Sewer Drainage) dated April 9, 2024, filed April 15, 2024, as Instrument
No. 24 02290, for private storm sewer drainage to a Public stormwater basin upon a portion
of Outlot Z, Baker Subdivision, Ames, Story County, Iowa, as more particularly described in
said document.
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Document: ACKNOWLEDGMENT OF COVENANTS
Preparer Information:
(Individual’s Name, Street Address, City, Zip, Phone)
Return Document To:
Tax Credit Allocation Division, Iowa Finance Authority, 1963 Bell Avenue, Suite 200, Des
Moines, IA 50315
Grantors: City of Ames Grantee: Iowa Finance Authority
Legal Description: Exhibit A
Reference Number: 2024-08480
Project Number & Name: 23-10 Townhomes at Creekside,
LLLP
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ACKNOWLEDGMENT OF COVENANTS
RE: 23-10 Townhomes at Creekside, LLLP
WHEREAS, Townhomes at Creekside, LLLP (the “Owner”) is the owner of a 38
unit rental housing development located in the City of Ames, County of Story, State of Iowa, on
the real property described above, known as Townhomes at Creekside, LLLP (the "Project");
and
WHEREAS, the Iowa Finance Authority (the “Authority”) has been designated by Iowa
Code Section 16.35 as the housing credit agency for the State of Iowa for the allocation of low-
income housing tax credits under Section 42 of the Internal Revenue Code of 1986, as amended,
and the Treasury Regulations thereunder (the "Code"); and
WHEREAS, in connection with an allocation of tax credits for the Project, the Owner has
executed a Land Use Restrictive Covenants Agreement for Low-Income Housing Tax Credit
Program (the “LURA”), as amended from time to time, dated 10/30/2024 , and recorded in
the STORY County Recorder’s Office on 11/18/2024 at 2024-08480 .
WHEREAS, the LURA creates covenants running with the land for the purpose of
enforcing certain requirements of Section 42 of the Code and certain additional undertakings of
the Owner in connection with its Application (as defined in the LURA) by regulating and restricting
the use and occupancy of the Project as set forth therein; and
WHEREAS, to satisfy section 2(k) of the LURA the Owner has requested that City of Ames
(the “Mortgage Holder”), as the holder of a mortgage from the Owner dated as of June 14, 2025
(the “Mortgage”), and recorded in the Story County Recorder’s Office on June 19, 2025 at 2024-
04154, execute this Acknowledgment of Covenants to acknowledge the Mortgage Holder’s
consent to the LURA;
NOW THEREFORE, in consideration of and to induce the Authority to allocate tax credits
to the Project, Mortgage Holder hereby agrees as follows:
1. Mortgage Holder, which is the holder of the above-described Mortgage, for itself and its
successors and assigns, does hereby agree (a) that the restrictive covenants described in the
LURA run with the land as provided in the LURA and (b) that certain restrictive covenants, as
set forth in Section 4 of the LURA, will remain in place for a period of three years after any
foreclosure or deed in lieu of foreclosure.
2. Mortgage Holder acknowledges (a) that, before its execution of this Agreement, it has
reviewed or had the opportunity to review the LURA, (b) that it consents to the Owner’s
execution of the LURA, and (c) that the LURA imposes substantial restrictions on the use of
the property comprising the Project.
-Remainder of Page Intentionally Blank –
[Signature Page Follows]
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DATED this day of October, 2025.
City of Ames, as Mortgage Holder
By:
___________________________________________________
Printed Name:
Its:
, as
By:
___________________________________________________
Printed Name:
Its:
STATE OF :
: ss.
COUNTY OF :
This record was acknowledged before me this day of , , by as
of .
__________________________________________________
Signature of Notary Public
STATE OF :
: ss.
COUNTY OF :
This record was acknowledged before me this day of , , by as
of .
__________________________________________________
Signature of Notary Public
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Exhibit A – Legal Description
Parcel 1: Lot Twenty-Seven (27), Baker Subdivision, Ames, Story County, Iowa. Parcel 2:
Nonexclusive Easements for the benefit of Parcel 1 as created by that certain Easement
Reservation (Storm Sewer Drainage) dated April 9, 2024, filed April 15, 2024, as Instrument
No. 24 02290, for private storm sewer drainage to a Public stormwater basin upon a portion
of Outlot Z, Baker Subdivision, Ames, Story County, Iowa, as more particularly described in
said document.
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