Housing Authority

The Lake Park Housing Authority was established in 2013 to assist with low and moderate income housing in Lake Park. 

The Dickinson County Board of Supervisors voted on January 2, 2013, to release funding to the Lake Park Housing Authority - about $414,000 in revenue has been generated through Tax Increment Financing through a pair of housing development projects between 2001 and 2003.

The first development was Silver Shores First Addition, a 69-lot subdivision with lakeshore, second tier and commercial lots. Lake Park developers started West Bay Estates, a 67-lot, 33-acre subdivision to the west of Silver Shores.

In exchange for TIF considerations, a fund for low and moderate housing had to be established.

"By the supervisors approving the resolution, it allows the Lake Park Housing Authority to request funding that's been set aside by the county for LMI projects within the city limits of the city of Lake Park," said Lake Park Housing Authority Board member Lance Heikens. "It allows us to administer those funds and to receive application for those funds -- whether it be for a low-interest loan, a grant, some sort of revolving funding and it's going to allow us to help with possible assisted living. It will allow us to possibly do some multi-family dwellings for low income residents. It will allow us to do some rehab for homes, whether it be windows, siding or insulation of the older homes. That will allow younger families to make purchases. We'll be getting together in the very near future because the supervisors did approve this." (Quote taken from the Dickinson County News)

The board action allowed the Housing Authority to establish formal guidelines for the application process and the funding, which are as follows:

Goals and Objectives

The primary goals and objectives of the Lake Park Housing Authority, Inc. are:

  • To preserve and/or stabilize the community’s housing stock that is affordable to low and moderate income persons;
  • To ensure safe, decent, and sanitary housing for the community’s residents who do not have the financial wherewithal to make repairs to their own dwellings;
  • To improve the general aesthetics and attractiveness of the community’s housing stock;
  • To maintain or increase the community’s residential tax base;
  • To assist in the promotion and attraction of economic and community development opportunities; and
  • To increase owner occupied housing.

The lifetime maximum amount to be given per property is $25,000

Types of Assistance & Eligibility

Residential Rehabilitation Assistance

Program funds are intended to be used to cover the hard cost of rehabilitation (i.e. material, labor, and contractor’s overhead and profit) and the administrative costs associated with the rehabilitation of residential dwellings within the city limits of Lake Park, Iowa. If the nature of the project is such that the owner cannot occupy the home during the rehabilitation, the LPHA can provide temporary relocation assistance as well.

Rehabilitation costs are considered eligible when they improve the appearance of the property and where the result of such expenditures is the provision of safe, decent, and sanitary housing. All construction work is expected to be of good quality and reasonably priced. Applications for rehabilitation are not to exceed $24,999.

The State of Iowa’s Minimum Housing Rehabilitation Standards shall apply.

Eligibility Requirements

An applicant must meet the following eligibility requirements to be considered for Residential Rehabilitation Assistance.

  1. The structure must be owner occupied and the principal place of residence. Ownership means holding fee simple title to the property or maintaining a 99-year leasehold interest in the property.
  2. The applicant’s annual gross household income must not exceed eighty percent (80%) of Dickinson County’s median household income, based on the applicant’s household size, as established by the U.S. Department of Housing and Urban Development (HUD).
  3. The property must be located within the city limits of Lake Park, Iowa and must not be located within a flood plain.
  4. The applicant must be current on their mortgage payments for the structure.
  5. The applicant must be current on their property taxes.
  6. The applicant must be current on their utility payments including water, sanitary sewer, gas, electric, and trash. (Telephone, cable, and internet are excluded)
  7. Property insurance must be current and of an amount equal to or greater than the current assessed value of the property.
  8. The property must be used as a residence only; home businesses are not eligible to receive assistance.
  9. The property must be free of code violations including but not limited to garbage, debris, junk vehicles, and refuse and must also be free of all local nuisance ordinances. The dwelling must be reasonably clean and uncluttered.
  10. Manufactured homes must have been constructed in 1995 or after and must be permanently affixed to the foundation. Tongues, axles, breaks, wheels, lights, and any other parts of the chassis that operate for the purpose of transportation must be removed.

Form of Assistance

Residential Rehabilitation Assistance is provided as a five-year receding forgivable loan. For the loan to be fully forgiven the property must remain the loan recipient’s principal place of residence for the five-year period following the completion and acceptance date of the rehabilitation project.

The recipient must sign a promissory note and mortgage lien to secure the full amount of the five-year receding forgivable loan. The mortgage lien will be recorded at the Dickinson County Courthouse following the completion of the rehabilitation project. The five-year receding forgivable loan bears no interest.

The term of the promissory note and mortgage lien is five years, remaining at one-hundred percent (100%) of the loan amount for the first full year and decreasing twenty percent (20%) each year thereafter. The anniversary date of the promissory note and mortgage lien is the project completion and acceptance date. 

At the fifth anniversary date the entire note and lien is forgiven. If the property is sold, transferred, rented, vacated, abandoned, or no longer the principal place of residency prior to the fifth anniversary of the project completion and acceptance date, collection of the promissory note and mortgage lien (if necessary) will be accomplished according to the following schedule:

  • If prior to the first anniversary date one-hundred percent (100%)
  • If after the first but prior to the second anniversary date eighty percent (80%)
  • If after the second but prior to the third anniversary date sixty percent (60%)
  • If after the third but prior to the fourth anniversary date forty percent (40%)
  • If after the fourth but prior to the fifth anniversary date twenty percent (20%)

The LPHA may, at its discretion, release or reduce the lien and note against the assisted property when it is determined there are extenuating circumstances that warrant and justify the decision regardless of the age of the loan. These decisions are handled on a case-by-case basis with consideration given to individual circumstances.

The LPHA forgivable loan will assume a junior security position to other existing liens, mortgages, or security interests. The LPHA may, at its discretion, subordinate its mortgage lien to any future liens, mortgages, or other security interests.

Down Payment Assistance

In order to encourage new owner occupied structures in the City of Lake Park, the LPHA may provide down payment assistance to prospective home owners. Down payment assistance shall not exceed $20,000 total. Down payment assistance shall not exceed 10% for existing housing and 20% for a new house.

Eligibility Requirements

An applicant must meet the following eligibility requirements to be considered for Down Payment Assistance.

  1. The structure being purchased must be intended to be owner occupied and the principal place of residence. Ownership means holding fee simple title to the property or maintaining a 99-year leasehold interest in the property.
  2. The applicant’s annual gross household income must not exceed eighty percent (80%) of Dickinson County’s median household income, based on the applicant’s household size, as established by the U.S. Department of Housing and Urban Development (HUD).
  3. The structure must be located within the city limits of Lake Park, Iowa and must not be located within a flood plain.
  4. The applicant must be current on their mortgage payments for any residence owned at the time of application.
  5. The applicant must be current on property taxes for any residence owned at the time of application.
  6. The applicant must be current on utility payments with the City of Lake Park, if applicable, including water, sanitary sewer, gas, electric, and trash. Telephone, cable, and internet are excluded.
  7. Manufactured homes must have been constructed in 1995 or after and must be permanently affixed to the foundation. Tongues, axles, breaks, wheels, lights, and any other parts of the chassis that operate for the purpose of transportation must be removed.

Form of Assistance

Down Payment Assistance is provided as a five-year receding forgivable loan. These five-year forgivable loans will be administered as described under the Residential Rehabilitation Assistance section.

Evaluation and Prioritization of Applications

The LPHA does not necessarily award assistance on a first come first serve basis. Priority and awarded amounts are at the discretion of LPHA based on need (i.e. where the applicant falls on the income spectrum) and the nature of the assistance requested. Priority is typically extended to external improvements that benefit the community as a whole vs. interior improvements as well as projects that address a significant safety or sanitation issue.

Marketing

Program marketing is to be determined by the LPHA marketing committee.

Applicant Eligibility Determination and Verification Process

All applicants are subject to an occupancy verification process (when applicable) and income and asset verification process.

Cost Estimate

The applicant will prepare an itemized cost estimate of the work to be accomplished providing a minimum of two (2) bids. The applicant and the LPHA are not bound to accept the lowest bid.

Final Bill

Within 15 days of successful completion and inspection of project, LPHA shall be given copies of final invoices for review and comparison to estimates. LPHA shall issue payments to applicant and payees “in-common” within 15 days of acceptance. LPHA may, but will not guarantee payment in excess of estimates.

Work Performed

LPHA will only fund work performed by an insured contractor.

Financial Information

Financial information available upon request at City Hall.

To Apply

Stop at City Hall and meet with the City Administrator to discuss your project and get an application form.


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