Program Summary for Building Owners

LYONS’ PRIDE

PROGRAM SUMMARY FOR BUILDING OWNERS

Lyons’ Pride is a collection of projects that a number of area agencies and community groups are undertaking to spur economic revitalization and community development in the downtown Lyons area. Agencies and community groups are applying for grant funding from a number of sources to fund the projects and coordinating our efforts to maximize the impact. Two of the proposals (if grant funding is awarded) would make funds available to building owners in the target area to renovate and improve their buildings. A summary of the two programs is provided below to assist you in understanding what may become available to you and what your responsibilities would be.

Main Street Program (Administered by the Lyons Main Street Program)

This program makes funds available to building owners in the target area (see attached map) to renovate and improve both residential (apartment) and commercial units.

Highlights:

·  Each building is eligible for up to $50,000, with an additional $10,000 per residential unit if they are being renovated. A grant cannot exceed $100,000.

·  The building owner will be required to contribute at least 35% of the total project cost. (Example: Total Project cost = $100,000; Main Street Grant of $65,000 and building owner match of $35,000).

·  Renovations must result in a completed space ready to be occupied. Funding may not be used for: non-permanent fixtures (including appliances, furnishings, electronics and business equipment), site work or ancillary activities on the property (including septic systems and laterals, grading, parking lots, sidewalks, landscaping, fences and free standing signs) and general maintenance.

·  Building owners that receive grants must agree to the following for a minimum of five years: maintain the property in good operating order and condition and make the residential housing units available and affordable to low income tenants. You will be required to sign and file a Property Maintenance Declaration with the county attesting to these requirements

·  This is a reimbursement program, you will not receive grant funds until the project is completed

·  Prior work cannot be reimbursed. Grant funds can only be given to a building owner for work that is completed after the Lyons Main Street Program is awarded funds, and the design committee has reviewed and approved your application

HOME Program (Administered by Community Action in Self Help, Inc.)

Please note that the information provided below is tentative. Specific grant requirements for this program have not yet been released. We are basing this information on past application requirements and believe that it is unlikely to change this year.

This program makes funds available to building owners in the Main Street Program’s target area (see attached map) and extends slightly further to include the entirety of each of the roads identified in the target area map. Funds can be used to renovate and improve only residential units, but may include both apartments and single family rental homes.

Highlights:

·  A building is eligible for up to $30,000 per rental unit in grant funds

·  The building owner will be required to contribute at least 35% of the total project cost

·  The completed project must meet all HUD Housing Quality Standards requirements and HUD lead based paint requirements, meaning that all health and safety issues must be corrected at the end of the rehabilitation project

·  All rehabilitated units must remain available and affordable to low-income tenants for the regulatory period. Low income is defined as 80% of the MFI and the majority must be below 60% MFI. Affordability is set by HUD, rent charged must be at or below levels set by HUD- adjusted for unit size.

·  The regularity period is as follows (average per unit subsidy):

o  Rehabilitation/acquisition less than $15,000: 5 years

o  Rehabilitation/acquisition between $15,000 -$40,000: 10 years

o  Rehabilitation/acquisition over $40,000: 15 years

·  Community Action in Self Help will be able to verify that a building owner is renting to a low-income tenant and meets the affordability requirements if they are renting to a tenant on Section 8. If they are not renting to a tenant on Section 8, the building owner will be required to submit verification of tenant’s income to CASH on an annual basis for the duration of the regulatory agreement

Applying for a Grant

To secure funding for the above programs, the Lyons Main Street Program and Community Action in Self Help must demonstrate that there is need, interest from building owners and that we will be ready to proceed if we are successful in receiving these grants. No specific projects can be chosen before the applications are submitted to the state. However, during the project selection phase preference will be given to building owners who demonstrated interest and readiness to proceed during this grant application phase. Completion of the Letter of Intent form available tonight will demonstrate interest. Readiness to proceed is demonstrated by a completed workscope and cost estimate, as well as documentation that a building owner has sufficient funds to meet their required match. This can be done by providing banks statements (with redacted account information) or a preliminary loan approval pending grant funds being awarded.