City to apply for housing rehabilitation grant
RED OAK — After a unanimous vote from the Red Oak City Council, the city will be applying for a Community Development Block Grant for assistance in a housing rehabilitation program.
The grant would allow for the rehabilitation of 12 owner-occupied, single-family housing units in the downtown area. The city is applying for $449,000 and will provide a $24,000 local match from the city’s Low and Moderate Income fund.
During a public hearing on the matter, SWIPCO Representative Jeremy Middents said funding will come through the form of a five-year forgivable loan to the homeowners in which a secondary mortgage will be placed on the home until the completion of the project. As long as the owners continue to live in the home, the loan will be forgiven after a five-year period.
As deemed a priority by the city, the project would help to retain decent and affordable housing for low-income residents. Middents said the goal in this plan is to bring area homes up to minimum Iowa housing living standards. The grant could go toward a variety of projects including foundation, plumbing, electrical, siding and window work.
The CDBG application will be made on or before Dec. 12.
Also at last Monday’s Council meeting, Alley-Poyner Macchietto Architecture was hired in a 4-1 vote to research and create downtown Red Oak into a National Register Historic District.
In order to get the city on the National Register, a recognition that has the potential to lead to future funding through the state and could create a federal Historic Preservation Tax Credit program for contributing buildings, a two-part process is required. First, a site inventory form, in which the Montgomery County History Center will be assisting, that can be up to 20 pages long for every building in the district, is required by the state Historical Society. Second, a nomination costing up to $10,000 is needed to be considered for the National Register.
Aside from the $10,000, which Alley-Poyner Macchietto architect Daric O’Neal said will likely be funded through available grants, the firm has a not to exceed fee of $40,000 for the project, an amount that unnerved Councilmember Fred Pilecki enough not to vote in favor of hiring Alley-Poyner Macchietto.
City Administrator Brad Wright said $27,000 of the $40,000 fee would be paid through the city’s Taxing and Refinancing fund while the other $13,000 would come out of reserve money.
“I’m opposed to using money out of reserves,” Pilecki said. “It’s just that simple. Maybe in next year’s budgeting process that could be a possibility, but I’m just not comfortable moving in that direction at this time.”
Wright mentioned the Downtown Urban Renewable Board might be willing to help offset some of the city’s costs, and DURB member Darrell Steven Carlyle agreed but couldn’t answer for sure without discussing it with the board.
Pilecki made a motion, which was seconded by Councilmember Tom Pratt, to table the discussion until hearing what the DURB was willing to contribute.
“I personally think it’s a mistake to wait,” Councilmember Jeanice Lester said. “This is one of those things we need to move forward on. I know we shouldn’t be using reserves, but on the same token … $13,000 is minor in comparison to what we will be gaining in the long run.”
In a 4-1 vote, Pilecki being the only voting in favor, his motion to table the conversation failed. The Council then hired Alley-Poyner Macchietto in a 4-1 vote.
Carlyle said the DURB will meet in a special session to discuss if they will be able to contribute to the fee set forth by Alley-Poyner Macchietto.
“We feel it is important,” Carlyle said. “The contract is a not to exceed figure, and we are very optimistic the figure will come in with lower than the $40,000, especially when we can partner with the history center, partner with community and partner with the volunteers in community.”