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City updates council on CDBG‑DR funded for‑sale and multifamily new‑construction projects

3046637 · March 25, 2025
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Summary

Community Development staff gave the federally required mid‑project update on two CDBG‑DR projects: a 14‑home Artesia Belt Drive for‑sale development (Roots program) and a four‑unit multifamily project on 0 Avenue NW; both projects are underway with timelines delayed by weather and material constraints.

Community Development staff Sarah Buck and Crystal Cole reported March 25 on the status of two Community Development Block Grant — Disaster Recovery (CDBG‑DR) funded projects: a 14‑unit single‑family new‑construction development on Artesia Bell Drive SW (the Roots program) and a four‑unit multifamily project on 0 Avenue NW.

Buck and Cole said the Artesia Bell Drive project has completed four homes and sold them; the total project budget is $4,100,000 with about $1.7 million from CDBG‑DR for construction. To date, roughly $890,000 in CDBG‑DR funds have been spent; four additional units are under construction and six more remain to be built and sold. For the 0 Avenue NW multifamily project (by JPAC LLC), staff reported foundations and underground utilities are complete, framing and fortified roof certification are complete, and the project budget is $1,100,000 with $360,000 from CDBG‑DR; roughly $100,000 of CDBG‑DR funds have been spent to date.

Buck explained the Roots program eligibility and price points: houses that might otherwise sell for about $300,000 are offered to qualified households (at or below 80% of area median income) at roughly $175,000; an additional down‑payment assistance of up to $35,000 may be available. Buck said 76 units have been made available through the program, with seven closed and nine under purchase agreement at the time of the update. Councilmember Tyler Olson asked about affordability periods and penalties; Buck said there is a 15‑year affordability period tied to the construction subsidy and a five‑year lien for down‑payment assistance, both of which run concurrently and gradually forgive over time. Councilmember Hager noted the program encourages nontraditional, energy‑efficient construction techniques and thanked the building department for working with developers on those methods.

Staff said there were no substantial scope changes to either project; schedule adjustments reflect weather and material constraints. There was no council action required on the update.