The City of Sioux City is proud and excited to announce a partnership with West Middle LLC, Dan Hiserote, Managing Member. This partnership will result in the construction of the Isabella Square development which includes 11 affordable single family owner-occupied homes to be located at 1200 and 1211 West 5th Street (former West Middle School location). Each home will have full basements, three bedrooms, one bath, and a one car garage. The homes will be approximately 1,200 square feet and will be constructed by December 31, 2025. In addition, utility improvements will be made in the area along with the dedication and construction of a new public park.
This project is being made possible with the use of funds from three grants. A total of $1.7M in federal HOME Investment Partnership (HOME) funds will be used to subsidize the construction cost of the homes. In addition, $700,000 in federal Coronavirus State and Local Fiscal Recovery Funds (SLFRF) funding will be used to complete the design, construction, and construction management of upgraded utilities in the area to support this development. Finally, federal Community Development Block Grant (CDBG) funds will be used to construct the new park.
Once the homes are constructed, the sales price will be determined by an appraisal. The buyers would each need to qualify for a conventional loan and meet annual income requirements (for example, a family of four could not make more than about $70,000 in taxable income per year). HOME funds will then be utilized to assist with down payment and closing costs to make the homes more affordable. For example, the homes on Center Street which were constructed using similar funding sources sold for between $140,000 – $145,000. The resulting monthly payments (including mortgage, taxes, insurance) for the buyers ranged from approximately $600 to $850.
As construction progresses more information will be shared regarding how to qualify to purchase the homes. Please contact Jill M. Wanderscheid at 712-224-5136 or jmwander@sioux-city.org with any questions.
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