New London agrees to apply for housing rehabilitation grant

By KARYN SPORY

Mt. Pleasant News

NEW LONDON ? The City of New London is hoping to receive state funds to assist homeowners in rehabilitating their houses.

Dan Eberhardt, of Southeast Iowa Regional Planning Commission, spoke to the council during its meeting on Tuesday, Nov. 4 about the owner-occupied rehabilitation program as part of the community development block grant.

?This is a competitive grant proposal that cities put into the state each year,? Eberhardt said, adding the grant proposal is due on Dec. 8.

Eberhardt, who was on hand to sway the city to apply for the grant, said the state of Iowa has approximately $6 million dollars available to assist communities that are hoping to develop low to moderate income households.

?This has been a really good program for cities like New London,? Eberharrdt said, citing his past work in Keokuk, Burlington and Wayland.

Eberhardt said once a city is accepted into the program they can choose several houses?usually between six to eight?that fit the criteria to rehabilitate the home.

Eberhardt said homeowners apply to the city and once selected, they would receive up to $24,999 to bring their home up to Iowa Code. Eberhardt said the funds could be used for plumbing, electrical, heating, as well as new doors, windows, siding and roofing.

Homeowner requirements to participate in the program include occupying the residence for at least six months; living in the proposed target area, which has not been set in stone, but would probably encompass the area around the school; their annual income could not exceed 80 percent of the area?s median income; the home must be insured, property taxes paid and the homeowners must be in compliance of all city ordinances; and the homeowners must live in the home for five-years after completion of the renovations. Eberhardt said if the homeowner doesn?t fulfill the requirement to stay for five-years, then they would have to pay the mortgage back to the city because the city would have taken out the loan. Eberhardt noted money for this project never touches the homeowners? hands; it?s all taken care of by the city.

Eberhardt said an engineer goes through the home and finds the deficiencies and that is where the money is applied.

?25,000 bucks anymore, you can do a roof, siding and windows and that?s pretty much got it?it doesn?t go as far as it once did 15-years ago,? he said.

Eberhardt added that if the homeowner wished to complete more tasks than the $25,000 allots for, the homeowner would have to come up with the rest, but in his experience, banks are more generous with loans because the homeowner already has someone else putting $25,000 into the home.

Eberhardt said even though this is a state grant, the city would have to put up some of it?s own money for the project, usually about $1,500 a house. The project would take two years to complete and the funds for it could be spread out in the budget over the next two years, Eberhardt commented.

?This is a good thing,? said councilman Kirk Miller. ?I like the way it?s ran and the way you guys do it.?

With the board in agreement that this would be a great project for the city, Eberhardt said he would get started on the grant proposal and have something drawn up for the next city council meeting on Dec. 2.

In other business, the council:

? Adopted a new official zoning map

? Approved the pay estimate for Bi-State Contracting for improvements to the waste water treatment plant

? Approved Nov. 4, 2014, as the substantial completion date for improvements to the waste water treatment plant

? Approved the quote from Electric Pump for the replacement of stationary wear rings on pumps and floats for the waste water treatment plant

? Authorized the city sponsorship of the annual holiday stroll and a $500 donation