2. Resolution 4676 - HOME GrantCity of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903-1997 -Telephone (406)758-7700 Fax(406)758-7758
The Honorable Mavor Kennedy and City Council
FROM: Susan Moyer, Community Development Manager
BACKGROUND:
The City of Kalispell has been awarded $400,000 of HOME Grant funds for the construction of a 40-unit
senior housing project on Second Avenue West. In addition, the City will receive $28,000 for the
administration of the grant during the construction and implementation phases of the project.
The Second Avenue West Senior Housing Project will be "on the tax roles" and is anticipated to generate
an estimated $47,000 in taxes annually.
The pass -through of $400,000 will result in a soft mortgage made to the private -sector developer so that
the City will receive the principal and interest back over a 15-year amortization period. The principal and
interest becomes Program Income and the City will be able to use this Program Income on behalf of other
housing activities to assist low -to -moderate income individuals and families. The City, as the grantee, will
remain responsible to insure that the senior housing project remains affordable for the 35-year period
pledged to the grantor as well as to the Montana Board of Housing. Annually, 7% of the Program Income
generated by this project may be used to cover the administrative costs to monitor this project.
These funds are not available for use until the City of Kalispell and the Montana Department of
Commerce enter into a formal contract. Resolution No. 4675 is one of the first steps in meeting the
criteria for grant administration.
RECOMMENDATION:
The City Council passes Resolution No. 467(c which will formally accept the award of the HOME Grant,
establish a budget within the City's Budgetary framework for the project, and adopt the Management Plan
and the Program Income Plan.
FISCAL EFFECT:
The $400,000 HOME funds will be loaned to the developer to assist in creating a $4.5 million
redevelopment activity within the core area of the City.
ALTERNATIVES:
Respectfully submitted,
As determined by council.
Susan Moyer, Director
Community Development Department
Date prepared: January 3, 2002
RESOLUTION NO. 4676
A RESOLUTION AUTHORIZING ACCEPTANCE OF MONTANA DEPARTMENT OF COMMERCE
HOME INVESTMENT PARTNERSHIP PROGRAM GRANT FUNDS IN THE AMOUNT OF $428,000
FOR THE SECOND AVENUE WEST SENIOR HOUSING PROJECT; ESTABLISHING A
$428,000 BUDGET TO BE FUNDED WITH THE AWARD; ADOPTION OF A MANAGEMENT
PLAN FOR THE PROJECT; ADOPTION OF A PROGRAM INCOME PLAN FOR THE PROJECT;
AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, the City of Kalispell has received a Montana Department of
Commerce HOME Investment Partnership Program Grant to provide
funds for the Second Avenue West Senior Housing project in the
amount of $428,000; and
WHEREAS, a contract between the Montana Department of Commerce and the
City is currently being drawn up by HOME Investment
Partnership staff and will need to be ratified after certain
other requirements are fulfilled; and
WHEREAS, implementation of the Grant requires that a budget must be
established for use of the Grant funds, and a Project
Management Plan and a Program Income Plan must be adopted; and
WHEREAS, funds from the Grant cannot be utilized until the contract is
ratified.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL AS FOLLOWS:
SECTION I. That the City of Kalispell agrees to accept the
grant award in the amount of $428,000 from HOME for
the Second Avenue West Senior Housing Project.
SECTION II. That a budget be established in the amount of
$428,000 for use of the Grant Funds.
SECTION III. That the Project Management Plan and Program Income
Plan, attached hereto, be officially adopted.
SECTION IV. This Resolution shall become effective immediately
upon its passage by the City Council.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR THIS 7TH
DAY OF JANUARY, 2002.
Pamela B. Kennedy
Mayor
ATTEST:
Theresa White
City Clerk