HomeMy WebLinkAboutA001 - Council Action Form dated February 24, 2026ITEM #:13
DATE:02-24-26
DEPT:P&H
SUBJECT:THIRD AMENDMENT TO RESTRICTIVE COVENANTS DESIGNATING
AFFORDABLE AND MARKET RATE HOUSING LOTS FOR BAKER
SUBDIVISION
COUNCIL ACTION FORM
BACKGROUND:
In 2016, the City used its Community Development Block Grant (CDBG) funds to purchase a
10+ acre parcel of land now known as the Baker Subdivision. To develop the site for mixed-
income households rather than exclusively as low- and moderate-income housing, the City
sought and received approval from HUD to create the area as a Neighborhood Revitalization
Strategy Area (NRSA) designation. Under NRSA regulations, for any housing construction
activities that are undertaken, 51% of the housing units have to benefit households with
incomes at or below 80% of the Area Median Income Limits.
With the goal in mind of a mixed-income development, the intent of the Council was to provide
51% of the single-family home lots as low and moderate-income affordable housing sites and
for the remainder to be market-rate lots. The subdivision final plat created 26 single-family
home lots, and covenants were approved that identified which lots were restricted for
affordable housing and which lots were to be market-rate (see attachment of the identified
market-rate lots).
The approved covenants identified 15 affordable lots and 11 market-rate lots, which is
57% of the total lots as affordable. Staff recently identified a miscalculation for the
number of market rate lots; the calculation should have been 12, rather than 11. This
would change one designated affordable lot to a market-rate lot.
Staff would like to correct this number so that it is reflected in the subdivision covenants before
proceeding with selling any of the remaining lots in the subdivision. This change would also
align with how the project has been routinely described in City reports about the project,
including the Annual Action Plan and CAPER.
The City's legal department has prepared the attached Third Amendment to the Restrictive
Covenants for the Baker Subdivision to designate Lot 13 as a market-rate lot.
ALTERNATIVES:
1. Approve a Third Amendment to Restrictive Covenants for Baker Subdivision, Ames,
Iowa, to create one additional market-rate lot for a total of 12 and reduce the affordable
housing designated lots to 14.
2. Do not approve an amendment to Restrictive Covenants for Baker Subdivision, Ames,
Iowa, thereby keeping 15 affordable lots and 11 market-rate lots.
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CITY MANAGER'S RECOMMENDED ACTION:
Approving this action would allow the City to be consistent with the number of market-
rate lots of 12 that have been identified throughout the City CDBG reporting documents.
The remaining 14 affordable lots would still represent 54% of the total single-family
lots. It is therefore the recommendation of the City Manager that the City Council adopt
Alternative #1, as described above.
ATTACHMENT(S):
Highlighted Market Rate Lots Map Baker Sub.pdf
Third Amendment to Restrictive Covenants (Baker Subdivision).pdf
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Market-Rate
Lots
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S P A C E A B O V E R E S E R V E D F O R O F F I C I A L U S E
Return document to:
Document prepared by:
THIRD AMENDMENT TO RESTRICTIVE COVENANTS
FOR BAKER SUBDIVISION, AMES, IOWA
WHEREAS, the City of Ames, Iowa, (hereinafter “City”) adopted certain Restrictive Covenants,
filed January 6, 2022, as Instrument No. 2022-00200, which were amended by a document filed
May 9, 2024, as Instrument 2024-02923, and further amended by a document filed July 25, 2024,
as Instrument No. 2024-05233; and
WHEREAS, the City continues to be the titleholder and owner of multiple lots in Baker
Subdivision, Ames, Story County, Iowa, and in accordance with Paragraph 12 of the Restrictive
Covenants, retained the right to amend the Restrictive Covenants affecting all lots in the
subdivision without the consent of any other party until such time as the City no longer owns a Lot
(as that term is defined in the Restrictive Covenants) within the subdivision; and
WHEREAS, the City’s CDBG Action Plan required a minimum of 51%, or at least 14 of the
twenty-six lots in Baker Subdivision to be available to low- and moderate-income households, and
the current configuration identified in the Restrictive Covenants has 15 affordable rate lots (57%)
in excess of the minimum required; and
WHEREAS, the City has determined that it is appropriate to reduce the number of Affordable
Rate lots in the subdivision to the threshold number mandated by the Department of Housing and
Urban Development as set forth in the City’s CDBG Action plan; and
NOW THEREFORE, the City amends the Restrictive Covenants as follows:
1. The Restrictive Covenants are Amended in the following manner:
The property located at 232 South Wilmoth Avenue, Ames, Iowa, which is legally known
as Lot 13, Baker Subdivision, Ames, Iowa, shall no longer be designated an Affordable
Rate (AR) lot and shall hereafter be designated a Market Rate (MR) lot.
The Restrictive Covenants and all prior amendments thereto shall continue to have full force
and effect subject, however, to this Third Amendment.
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Passed and approved on ________________, 202_____, by Resolution No. 2___-_______ adopted by
the City Council of the City of Ames, Iowa.
CITY OF AMES, IOWA
By:
John A. Haila,
Attest:
Renee Hall,
STATE OF IOWA, COUNTY OF STORY, SS.:
This instrument was acknowledged before me on _________ ________, 202___, by John A.
Haila and Renee Hall, as Mayor and City Clerk, respectively, of the City of Ames, Iowa.
NOTARY PUBLIC
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