City support for Gronen's application to Iowa Finance Authority for Low-Income Housing Tax CreditsCopyrighted
April 18, 2022
City of Dubuque Consent Items # 19.
City Council Meeting
ITEM TITLE: City support for Gronen's application to Iowa Finance Authority for Low -
Income Housing Tax Credits
SUMMARY: City Manager recommending City Council approve a resolution
supporting the Low -I ncome Housing Tax Credit program application to
the Iowa Finance Authority by Gronen for the rehabilitation of 125 W 9th
Street.
RESOLUTION Supporting Gronen application for Low -Income Housing
Tax Credit for Dubuque Area Revitalization Area Housing Development
SUGGESTED Suggested Disposition: Receive and File; Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
Description Type
Support for Rehabilitation Project-MVM Memo City Manager Memo
Staff Memo Staff Memo
Resolution of Support Resolutions
THE C
Dubuque
DUjIBQTE
WAWca 914
Masterpiece on the Mississippi
YP pp
aoo�•o 13
zai7*20*�oi9
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: City support for Gronen's application to Iowa Finance Authority for Low -
Income Housing Tax Credits
DATE: April 14, 2022
Housing & Community Development Director Alexis Steger is recommending City
Council approve a resolution supporting the Low -Income Housing Tax Credit program
application to the Iowa Finance Authority by Gronen for the rehabilitation of 125 W 9'
Street.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mic ael C. Van Milligen
MCVM:sv
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Alexis Steger, Housing & Community Development Director
THE CITY OF
DUB E
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Alexis M. Steger, Housing & Community Development Director
DATE: April 13, 2022
Dubuque
All -America My
II II
2007 • 2012 • 2013
RE: City support for Gronen's application to Iowa Finance Authority for Low -
Income Housing Tax Credits
Introduction
This memorandum requests City Council support the Low Income Housing Tax Credit
(LIHTC) application to be submitted to the Iowa Finance Authority (IFA) by Gronen for the
development of mixed -income, with affordable, housing at 125 W 9th Street.
Background
The City of Dubuque is committed to providing quality, affordable housing. One of the
tools used to create this affordable housing is the Urban Revitalization Chapter 404 of the
Iowa Code (Urban Revitalization Act) that authorizes cities to designate areas as urban
revitalization areas. Improvements to qualified real estate within these designated areas
may receive a total or partial exemption from property taxes for a specified number of
years. The exemptions are intended to stimulate private investment by reducing tax
increases that usually accompany property improvements. This additional private
investment provides a long-term increase or stabilization in the area's tax base,
enhances the visibility of revitalization areas and supports important city objectives such
as historic preservation, economic development and affordable housing development.
The proposed project is in the Dubuque Urban Revitalization Area and meets the
requirements for Tax Abatement in the Dubuque Urban Revitalization Plan.
Discussion
Gronen is requesting City support for the 2022 LIHTC application to rehabilitate 17
affordable family housing units at 125 W 9th Street. This application is consistent with the
adopted Urban Revitalization plan.
The City of Dubuque has supported similar projects using the Urban Revitalization Tax
Exemption (URTE) to provide a ten year 100% tax abatement of the value added to the
property by the improvements. URTE is a tool designed to encourage the development
and re -development in the interest of public safety, health, and well-being. City support
for this project ensures the project is financially feasible and demonstrates to the State of
Iowa the community is supportive of the project.
Source of Income Committee
In December 2014, the City Council approved formation of a Source of Income Committee
to conduct a two-year study examining the HCV program and its relationship to fair
housing, with a goal of identifying ways to enhance fair housing in Dubuque (see
Attachment C).
In February 2017, the Source of Income Committee ultimately recommended a collective
impact approach to adopt and implement a mix of educational, outreach, and financial
programs to increase housing provider participation in the HCV program. These
recommendations are found in the Comprehensive Plan:
Adopt and implement a mix of educational / outreach programs to increase
participation in HCV program.
Adopt and implement a mix of financial incentives / policies for creation of HCV
units throughout community.
Based on the Source of Income Committee recommendations, the City now requires
housing developers to accept HCV participants in conjunction with approval of an
affordable housing development agreement related to an urban revitalization plan.
Recommendation
I respectfully recommend that the City Council approve the attached resolution
supporting the Low -Income Housing Tax Credit program application to the Iowa
Finance Authority by Gronen for the rehabilitation of 125 W 9t" Street.
Cc: Jill Connors, Economic Development Director
Wally Wernimont, City Planner
Prepared by Alexis Steger Housing & Community Devel., 350 W. 61" St. Suite 312 (563) 690-6072
Return to Adrienne N. Breitfelder, City Clerk, 50 W. 13t" St., Dubuque, IA 52001, (563) 589-4100
RESOLUTION NO. 133-22
SUPPORTING GRONEN APPLICATION FOR LOW-INCOME HOUSING TAX CREDIT
FOR DUBUQUE AREA REVITALIZATION AREA HOUSING DEVELOPMENT
Whereas, the Developer Gronen requested City support for the Tax Credit application
to the State of Iowa to rehabilitate and stabilize a 33 unit mixed -income at 125 W 9th
Street, and;
Whereas, the Low -Income Housing Tax Credit Application by Gronen to the State of
Iowa is consistent with the development and rehabilitation of affordable, housing
described in the Dubuque Area Revitalization Plan.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. The City Council supports the rehabilitation of mixed income housing, with
affordable housing, located at 125 W 9tb Street.
Section 2. The proposed rehabilitation for 125 W 9th Street is located within the
Dubuque Urban Revitalization Area and eligible for a 10-year 100% tax abatement from
the value added by the improvements.
Section 3. The City Manager or his designee, may execute an agreement for the use
of Urban Revitalization Tax Credits and exhibits required to show City Support for the
project for an application to the Iowa Finance Authority for Low-income Housing Tax
Credits.
Passed, approved and adopted this 18th day of April, 2022.
Brad M. Cava agh, Mayor
Attest:
Adrienne N. Breitfelder, City Clerk