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Sustainable Community Initiative
The Sustainable Community Initiative is
intended to replace rental units lost as a result of the
2008 flood with high quality, sustainable workforce rental
housing. Units built through the program will exhibit
high quality design standards, incorporate innovative "green
building" techniques and sustainable practices that reduce
the operating costs to owners and renters, and employ high
quality management practices. The end result will be
high quality rental units that positively impact
neighborhood livability and help foster strong, diverse
neighborhoods with a range of housing options. Up to
$60,000 per unit may be available to qualified developers
for the construction of qualifying units.
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Application Process |
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Prospective developers will submit a compete
application packet to the Department of Community
Development at 3851 River Ridge Drive NE no later than 12:00
PM on Friday, July 24, 2009.
Applications submitted by the deadline will
be reviewed by a panel consisting of 5 City staff members
and a representative from the local landlord community.
Locally approved applications will be submitted to the Iowa
Department of Economic Development by July 31, 2009 for
final approval.
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Developer Criteria |
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Developers must be
willing to participate in the program and abide by
ongoing requirements associated with receipt of
federal funding.
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Developers must be able
to obtain their own construction financing and
provide a letter of commitment from their financial
institution.
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Developers must have an
ongoing management plan for the newly constructed
units that reflect sound tenant selection criteria,
an ongoing maintenance plan, and a commitment to
neighborhood livability through participation in the
Crime Free Multi-Family Housing Program.
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Developers must have
prior experience in development and/or management of
workforce housing of quality comparable to the
guidelines established by this program.
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Developers must
demonstrate the ability to fund the ongoing
operational expenses of the property during the
fifteen-year (15 year) retention period, as
evidenced by an operating pro forma and
appropriately funded maintenance reserves.
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Developers proposals
will be scored competitively based upon factors
including experience with affordable housing,
management capacity, sustainability and green
building, and high quality design.
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Developers will be
allowed a reasonable developer's fee, not to exceed
twelve percent (12%) of the final cost of
construction, which shall be included in the cost to
construct and subject to the per unit cost
limitations.
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Building and Unit Criteria |
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Units constructed must
fulfill a demonstrated market need based upon the
City's market analysis.
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Units must be
reasonably expected to complete construction within
18 months of funding approval.
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Building design and
scale will be compatible with the surrounding
neighborhood character.
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Building design must be
consistent with the City's design standards for the
area as adopted through the Neighborhood Planning
Process. Projects will be rated based upon the
compatibility as well as elements of visual interest
(use of materials, architectural features, etc.)
that enhance neighborhood character.
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Building and units will
meet the mandatory building requirements of the
program. Additional bonus points are awarded
for incorporating optional building requirements.
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Projects will be scored
using the City's Smart Growth Score Card in
conjunction with a project review matrix.
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Developments will
comply with applicable city building and zoning code
requirements, and shall meet the standards of all
other local codes.
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Subsidy from the
program shall be limited to $60,000 per unit.
Actual subsidy amount will be determined through
underwriting and subsidy layering analysis. Overall
development costs cannot exceed the HUD 221(d)(3)
limits (see below development costs).
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At least 51% of
assisted units (rounded up to the nearest whole unit
number) must be rented to households with incomes
that do not exceed 80% of the Area Median Income for
Cedar Rapids, adjusted for household size (see below
income limits).
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Rents plus utility
allowances for any tenant-paid utilities may not
exceed the HUD Fair Market rents for the area (see
current rent limits chart).
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Affordability
restrictions apply for the entire 15-year retention
period.
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Owners of assisted
properties must annually certify compliance to the
City and provide tenant income and household
characteristics data.
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HUD 221(d)(3) Limits |
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Bedroom Size |
Development Cost Limit |
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0 |
$103,752 |
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1 |
$118,932 |
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2 |
$144,622 |
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3 |
$187,092 |
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4 |
$205,371 |
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Income Limits per Household Size |
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Family Size |
Annual Gross Income |
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1 |
$37,850 |
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2 |
$43,300 |
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3 |
$48,700 |
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4 |
$54,100 |
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5 |
$58,450 |
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6 |
$62,750 |
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7 |
$67,100 |
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8+ |
$71,400 |
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HUD Fair Market Rent Limits |
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Bedroom Size |
Rent Limits |
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0 |
$423 |
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1 |
$493 |
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2 |
$649 |
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3 |
$920 |
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4 |
$1046 |
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5 |
$1203 |
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6 |
$1360 |
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Property and Occupancy Standards |
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Property must meet all
applicable local building and housing codes at
project completion (i.e. before the final assistance
payment is made).
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Property must continue
to comply with local housing codes throughout the
retention period, and must undergo annual
inspections by the City to demonstrate compliance.
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Owner must adopt
reasonable, non-discriminatory tenant selection
criteria and employ reasonable methods of tenant
oversight, including a protocol for conducting
background checks and use of the City's Crime Free
Lease Addendum.
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Owner must utilize a
lease that, at a minimum, conforms to Iowa Uniform
Landlord and Tenant Law.
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Other Federal Requirements |
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Each project must
undergo an environmental review.
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Projects must meet ADA
and federal accessibility requirements.
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Owners must comply with
Fair Housing and Equal Opportunity Requirements.
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Properties of eight (8)
or more units will be subject to Davis Bacon and
Related Acts.
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Contacts |
Marty Hoeger
(319) 286-5864
m.hoeger@cedar-rapids.org
Caleb Mason
(319) 286-5188
c.mason@cedar-rapids.org
Paula Hinzman Mitchell
(319) 286-5852
p.mitchell@cedar-rapids.org
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