COUNCIL ACTION FORM

URBAN RENEWAL JOINT AGREEMENT WITH STORY COUNTY BOARD OF SUPERVISORS

At the July 28, 2026, City Council meeting, the City Council authorized staff to submit an application for funding through Story County's Urban Renewal Area Program (URAP), which will provide the City with funds to accelerate implementation of its 2026-27 HOME New Construction Single-Family Affordable Housing Program in the Baker Subdivision.

The requested funds would be eligible to count as local match dollars, as required by the HOME Program, and would allow the City to continue addressing its Affordable Housing goals in completing the Baker Subdivision. A Joint Agreement is required by Story County to comply with Urban Renewal law for consent of the County to provide funding for activities with the City of Ames.

The program, entitled LAUNCH Homeownership Project Initiative, is designed to construct three single-family homes on six remaining affordable housing lots in Baker Subdivision. The proposed project budget is approximately $1,125,735, of which $895,735 would be from the City HOME funds and $230,000 from County URAP funding. This URAP funding would count toward the 25% match requirement under the HOME program.  On October 16, 2026, the City was notified that it had been awarded the $230,000. Staff will proceed with having the Mayor sign the required contract documents.

The City was notified that, in addition to the City's request, a new project that will be added to the URA Plan is the "Manufactured Housing Repair Program." This program would fund weatherization-related repairs to manufactured homes, assisting with repair or replacement of windows, doors, and skirting for eligible homeowners. The Story County Housing Trust will manage the program entirely, with no city staff time or program administration required. 

Because Ames contains manufactured homes that may qualify for this program, the County requests that the City enter into a joint agreement regarding the exercise of urban renewal powers. This would enable the inclusion of these properties within Ames in the County's Urban Renewal Area.

For the City Council's review and approval, the draft "Urban Renewal Joint Agreement," is attached. This joint agreement also incorporates the properties for which the City applied through the LMI Housing Support Program for the above LAUNCH Homeownership Initiative Project.

1. Approve the Urban Renewal Joint Agreement (URJA) to implement a Manufactured Housing Repair Program for owners residing within the City limits of Ames that will be solely administered by the Story County Housing Trust Fund. This joint agreement also includes funding for the City's HOME LAUNCH Homeownership Project Initiative. 
   
   
2. Approve the Urban Renewal Joint Agreement (URJA) with modifications.
   
   
3. Do not approve the Urban Renewal Joint Agreement (URJA).

The opportunity to receive funding that meets the local match requirements of the City's HOME program not only advances the City Council's goals of increasing affordable housing. It also marks another milestone toward completing the Baker Subdivision. The additional mobile home repair program will be administered solely by the Story County Housing Trust and may be beneficial to residents of Ames. Therefore, it is the recommendation of the City Manager that the City Council adopt Alternative No. 1, as described above.