Title
Resolution to Approve Housing Rehabilitation Agreement with Erna Nielsen at 2082 Champagne ($29,332.00 HOME Funds)
Memorandum
Attached for your review and approval is a resolution to approve a Housing Rehabilitation Agreement with Erna Nielsen to complete rehabilitation assistance to her home at 2082 Champagne.
This income-eligible applicant initially contacted Community Development in February, 2009 for assistance with exterior and interior repairs to the property including the bathroom, kitchen, siding, attic and crawlspace insulation. The application for assistance was processed and approved by Community Development in April, 2009. The City will address the following housing rehabilitation work on this property: wrap home with new vinyl siding, install an Energy-Star rated aluminum storm door, demolition of outbuilding to remediate lead hazard, replace outbuilding with storage shed, remove and dispose of deteriorated sidewalks, form and pour new sidewalks, rebuild front porch to code, rewire electric service to code, install a new 40 gallon water heater, and insulate attic and crawlspace.
On June 4, 2009, the Office of Community Development received three (3) bids for the housing rehabilitation project. The lowest bid amount was submitted by Qualified Construction Company with a base bid of $26,665.00 to which a 10% contingency of $2,667 was added, bringing the total amount to $29,332.00. The $29,332.00 in HOME funds will be provided in the form of a 0% interest, deferred payment loan to be repaid in full after 30 years or at the time the property changes ownership either by sale, gift, mortgage, land contract, conversion to rental property, inheritance or change of the use of the property from a single-family residence.
Community Development staff recommend that City Council approve the Housing Rehabilitation Agreement for the rehabilitation work with Erna Nielsen in the amount of $29,332.00 in HOME funds as a 0% interest, deferred payment loan...
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