Friday, July 7, 2017
Notice to the Public
SUMMARY OF PROPOSED CITY OF NEWPORT 2017 CDBG APPLICATION
The City of Newportproposes to seek up to $1,000,000 in Community Development Block Grant (CDBG) funds to facilitate rehabilitation of four (4) existing single family properties and construction of one (1) new single family home. Properties proposed for rehabilitation are 224 West 10th Street,712 Columbia Street,910 Columbia Street and934 Columbia Street. The new home would be located at925 Columbia Street. The project would be developed in two phases, with three (3) units being completed and sold and the sale proceeds from these units being used to compete the last two (2) properties.
If successful in securing a CDBG award for this project, the City will enter into a development agreement with Newport Millennium Housing Corporation (NMHC) an IRS-certified 501(c) (3) non-profit corporation, who will use CDBG funds, its resources and proceeds from sale of proposed units to execute a two phase project to develop five (5) single family homes. Phase I will complete three (3) single family homes and upon sale of these homes, work will begin the final two (2) homes to be developed by this project. All five (5) homes will be sold to credit worthy low-to-moderate income owner-occupants, made affordable by purchase price subsidies and $30,000 non-amortizing, no interest, forgivable down payment second mortgage loans for each homebuyer. However, without CDBG funds to subsidize construction and financing, these units will not be affordable to LMI owner-occupants.
The model to be implemented in development and sale of the five (5) proposed homes and the team to implement this model have a strong track record. NMHC staff have assisted more than 100 LMI households buy homes, with a foreclosure rate of < 5%. NMHC staff will screen applicants for conflict of interest, certify applicant income and assist applicants secure private 30 year fixed rate first mortgage financing. Buyers must complete homeownership training and have no felony, violent crime or drug-related criminal history. Homebuyers must have been on their current jobs for a minimum of one year and must occupy and maintain their homes in compliance with local codes. Each year buyers meet these requirements, 20% of their $30,000 CDBG-funded down payment assistance will be forgiven. Households not meeting these requirements must repay a pro rata share of assistance received and recaptured funds will go into a previously established DLG-approved Revolving Fund used to further Newport LMI homeownership. The City’s CDBG Program Administrator has more than 30 years experience and is an award-winning developer of affordable housing. Project architects have designed and overseen construction/rehabilitation of 75+ affordable homes in Newport.