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Housing,Tx Cr Ap. Star & CommCITY OF DUBUQUE, IOWA MEMORANDUM May 17, 2001 TO: FROM: SUBJECT: The Honorable Mayor and City Council Members Michael C. Van Milligen, City Manager Affordable Housing Tax Credit Program Application from Star Development and Community Housing Initiatives The Iowa Finance Authority provides tax credits to assist with the financing of affordable housing projects. In the past, for a project to quality for the tax credits, they needed a proclamation of support from the City for their application. The City has provided those proclamations. The Iowa Finance Authority has changed their rules and they now require a 1% local contribution to the project for the project to qualify for the tax credits. This funding match may be obtained in a variety of ways, for instance, the local governmental entity may contribute in the form of tax abatement or from tax increment finance district proceeds, tax-exempt bond financing, a HOME program loan or donation of land or infrastructure costs. Absent public assistance, other means of satisfying the local contributing effort include private contributions, private loans at favorable terms, utility costs reductions, an equity contribution by the project sponsor or the value of an in-kind contribution by a tax-exempt organization. The City of Dubuque has received two requests for project assistance under the new Iowa Finance Authority rules. Star Development requests assistance to construct Raven Oaks Apartments, a 62-unit complex for senior citizens. It would be located on Raven Oaks Drive near JFK Road. Representatives have requested the City provide the required local match in the amount of $42,000. Community Housing Initiatives is requesting assistance for construction of the River Oaks Apartments, a 28-unit affordable housing complex for seniors. It is to be located on the Medical Associates campus. Representatives have requested the City provide the required match in the amount of $26,000. The Mayor and City Council have established owner-occupied affordable housing as one of this year's Council priorities. A task force has been formed to research this issue and report back to the City Council. These requests do no involve owner-occupied affordable housing. City staff has researched this question and has learned that we have been operating under the belief that the City policy was that the City does not provide financial assistance for new construction affordable housing projects. The only two exceptions that were found involved the removal of blighting conditions. In one case a Iow and moderate income single-room occupancy facility was built on Garfield Avenue, and on Eighth Street five units of affordable condominium homes were constructed. Iowa Finance Authority rules have changed, and for new construction affordable housing projects to receive housing tax credits, a local contribution equal to 1% of the project is required. Two firms have approached the City about providing this assistance to create affordable senior housing. I respectfully request Mayor and City Council policy direction on how to proceed with processing these requests. Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel David Harris, Housing and Community Development Director Post Office Box 521 Hales Corners, WI 53130 ~( Phone 414-427-9639 -)y- Fax 414-525-0725 April 25, 2001 Mr. David Harris City Housing Director City of Dubuque 1805 Central Avenue DubUque, 10wa 52001 Re: Raven Oaks Senior Apartments Dear Mr. Harris: The purpose of this letter is to provide you with information regarding Star Development, L.LC.'s ("Star") proposed Raven Oaks Senior Apartments and to request the City of Dubuque's support of the project. Star is proposing to construct 62 units of independent living for older adults age 55 and over in one building located on a 7.7-acre site on Raven Oaks Drive at John F. Kennedy Road. This three (3) story building will be of superior quality and consist of large one and two bedroom apartments with a broad array of affordable and market rate units. The project will include numerous architectural design features and amenities targeted to older adults including underground parking, a large community room with kitchen facilities, library/computer room, fitness center, an outdoor patio with a gazebo, and garden plots. Also, the building will have space avaTable for a local financial institution and beauty shop operator to provide services forresidents on-site. We are in the process of completing a proposed development plan for submission as part of a request to the Zoning Commission, which we will forward to you under separate cover upon its completion. However, we have included a site plan, building elevation and conceptual floor plans for Star's Northgate Senior Apartments project located in North Fond du Lac, Wisconsin. We anfidpate, the Raven Oaks Senior Apartments will look very similar to this project. Raven Oaks Senior Apartments will also have a comprehensive resident services program for its residents. The program takes a holisfic approach to providing a supportive environment, which encourages personal well being and happiness. Our emphasis on wellness in daily activities recognizes the beneficial interaction of good physical and mental health promoted by an active lifestyle. Residents will be offered a variety of social and recreational opportunities through a combination of personal and group activities. Activities will be coordinated with local supportive service providers to the extent possible. An outline of Raven Oaks Resident Sewices Program is also attached. Star intends to apply to the Iowa Finance Authority ("IFA") for an allocalion of tax credits in its current round of funding which has an application due date of June 11, 2001. As part of IFA's threshold requirements under its 2001 Qualified Allocation Plan, an applicant is required to document a local contributing effort with a value of at least one (1) percent of the projects hard construction costs. Star has estimated that the minimum amount of the local contributing effort for the Raven Oaks Senior Apartments will be approximately $ 40,000. The local contributing effort can be provided in a number of ways including but not limited to infrastructure costs such as costs associated with street and/or sewar and water extensions, TIF proceeds, Home grants or loans, tax abatement, and a below market rate loan from a local or regional public agency. There ara also two additional issues associated with IFA's 2001 Qualified Allocation Plan for its tax credit program, which involve the local municipality. One involves the Public Housing Authority (PHA) and the need to have a written agreement outlining the PHA's willingness to refer households on their waiting list to the project, which Star is most willing to do. The other issue involves the project receiving a Support Resolution from the City of Dubuque for the project. Both of these preceding issues are point scodng concerns with IFA. Clearly, obtaining the required documentation outlined is key for the project to competitively score within IFA's point-scedog system. Star has been involved with numerous multffamily affordable housing properties financed through USDA Rural Development, State Agencies and HUD for over 12 years through its Principals, Michael K. and Marylou Moore ("the Moores'). The Moores are also the Prindpals of Professional Property Management, LLC ("PPM"). PPM manages 198 multifamily housing projects including 6,429 units located throughout the Midwest including Iowa, with 98 of those projects tinanced through the allocation of affordable housing tax credits. Star believes the development of Raven Oaks Senior Apartments will result in an extremely positive asset to the City of Dubuque. There is considerable unrnet demand for quality affordable senior housing in the community as evidenced by waiting lists in existing projects. In addition, Raven Oaks overall design/services for seniors will be superior and unique in the marketplace. Our project concept will not only meet market demand but will do so in a complimentary fashion to existing projects. In sum, Star's recently decided through its own strategic planning efforts to make a long-term commitment to affordable housing in the State of Iowa. Star will be actively involved in the Raven Oaks Senior Apartments over the long run through its ownership and day to day management. We desire to work with the City of Dubuque in the development of Raven Oaks a true public-private partnership framework. Again, our needs for the purposes of the June 11th IFA application deadline, which we would like to work in partnership with the City of Dubuque, are: · Local Contributing Effort of at least one (1) percent. · PHA Agreement · Support Resolution Regarding the Support Resolution, we have included a draft Support Resolution for your considemlion. This Support Resolution is based upon an IFA sample resolution provided as part of their application. Star looks forward to working with you and the City of Dubuque in a collaborative fashion on this most worthwhile project. Please feel free to contact me with questions anytime at (414) 427-9639. Very Truly Yours, Perry G. Harenda Project Manager NISNDD$IA ~DV9 ~fl ~NOJ HI~DN SIN3HI~V~V ~DIN3S 31VgHI~ON -~'~ ±N3HdDq3A3~ ~±$ iO3~O~d I- 3A, NOL[.OA;iI.$NO3 ~0-~ 03SA ONI~V~IG ~i 7 :I NISNOD~IA 'OVq R~ ~N03 H±~DN S±N3N±~VdV ~DIN3$ 31VDH±~DN ~ ±N3H~Dq3A3~ ~±$ ±33F0~ O~SR 2]80i iON M31A3 qNI~33NIgN 3~nlO31INO~ ONI S3i¥lO0SS~ ~'2 .! d Housing Services Department 1805 Central Avenue Dubuque, Iowa 52001-3656 (319) 5894244 FAX (319) 5894239 7 May 01 To: Michael, Van Milligen, City Manager From: David Harris, Housing and Community Development Department Re: Affordable Housing Tax Credit Program application from Star Development Introduction The purpose of this rnemo~dm is to review the request from a private developer for City support o£an application to the Iowa Finance Authority for housing tax credits; and for financial assistance to subsidize costs of construction of new affordable and market rote senior citizen apartments to be located on Raven Oaks Drive. Background The Affordable Housing Tax Credit Program provides an equity financing mechanism for housing projects which in turn must provide rental units for low- and moderate-income tenants. It implements Section 42 of the Internal Revenue Service Code, returning tax credits to investors who build or renovate Iow income housing. In Iowa it is administered by the Iowa Finance Authority, which annually distributes approximately $4 million in tax credits State-wide, on a competitive application basis. In Dubuque, projects previously financed through this program include Heartland Housing Initiative's Loras Boulevard and Main Street apartments, the Apptewood complex on Pennsylvania Avenue and the Bishop's Block Apartments. The Iowa Inn project was also awarded tax credits last year and is scheduled to commence construction this smnmer. For this year's tax credit funding competition, the Finance Authority has revised its administrative rules. Now required of all applicants is commitment from a "public or private agency" of a "local contributing effort" with a value of not less than one percent of construction costs of the project. This is a threshold scoring requirement for the tax credit applicatiom This funding mmch may be obtained in a variety ofways. For instance, the local governmental entity may contribute in the form of tax abatement or from tax increment finance d/strict proceeds, tax-exempt bond financing, a HOME Program loan or donation of land or infrastructure costs. Service People Integrity Responsibility Innovation Teamwork Absent public assistance, other means of satisfying the local contributing effort include private conm'bufions, private loans at favorable terms, utility costs reductions, an equity contribution by the project sponsor or the value of an in-kind contribution by a tax- exempt organi?ation. As of this date, the City Council has not provided financial assistance to new housing construction projects built on undeveloped land. Instead, public funds have been used to assist rehabilitation of existing housing and for conversion of other, older buildings to residential uses - all in the older, developed sections of the City. This past year, for the first time, the City has participated in two new housing construction projects, as part of our neighborhood revitalization efforts. The first is a low-moderate income single-room occupancy facility now nearing completion on Garfield Avenue. The derelict former seminary building on the site was demolished, the Housing Department obtained a $200 000 grant from the Iowa Department of Economic Development and the Council approved a site-specific urban revitalization district for this project. The tax abatement resulting from this designation will total approximately $110 000 in direct City subsidy over the ten-year life oftbe district. Total project cost is estimated at $500 000. The other new construction project, now in final planning stages, also involved demolition, at a site on West Eighth Street. The owner demolished two derelict houses with the proceeds ora $30 000 City CDBG loan, the Housing Department again authored a successful grant application to Il)ED - this one for $100 000 - and a five-unit affordable condomlnhan homes development will be constructed. Other than pass- through of these Federal and state funds, no City financial assistance was provided. Total project cost is estimated at $405 000. However, because of the first-time requirement in the Iowa Finance Authority rules for local financial contribution, Star Development is requesting that the Council consider the merits of public participation in construction ofnew housing on undeveloped land in newer areas of the City. Note: The Council has designated owner-occupied affordable housing as a priority for this liscal year. However, the proposed project is for development of rental houshag units. Discussion Star Development's request is for assistance for construction of the Raven Oaks Apartments, a 62 unit complex for seniors. It is to be located on Raven Oaks Drive, near JFK Road. Representatives have requested the City to provide the requlred match, in the amount of $42 000. The form of assistance has not been specified, although discussions have taken place regarding the appropriateness of tax abatement or subsidy of site infrastructure costs. For purposes of the application, a resolution of support and conditional financial match commitment must be obtained at this time; the deadline for submi~qsion to the Finance Authority is 1 June. Materials provided by Star are attached, including floor plans, building elevation and a conceptual site plan. Recommendation The developer's request is presented to the Council without recommendatiom Action Step The action requested of the City Council is to consider Star Development's request for support of a seniors residential complex on Raven Oaks Drive. Specifically, the request is for authorization of the Mayor's signature on the two attached resolutions, supporting the application for tax credits to the Iowa Finance Authority; and conditionally com- mitting $42 000 in unspecified City financial assistance toward costs of development. Preparer: Jean Noel Address: 1805 Central Telephone: (563)589-4239 RESOLUTION NO. - 01 A RESOLUTION OF SUPPORT FOR THE DEVELOPMENT OF AN AFFORDABLE HOUSING PROJECT TO BE KNOWNAS RAVEN OAKS SENIOR APARTMENTS WHEREAS, the City of Dubuque, Iowa has been informed by Star Development L.L;C., a Delaware Limited Liability Company ("Star") that a low income homing tax credit application will be filed with the Iowa Finance Authority for the development of a sixty-two (62) unit senior mixed affordable and market rate rental housing project to he known as the Raven Oaks Senior Apartments ("Raven Oaks") to he located on approximately 7.7 acres at Raven Oaks and Crissy Drives, Dubuque, Iowa ("Property"); WHEREAS, the Property is legally described as follows: Lots 1, 2, 3, 4, 5 and 6 of Block 1; Lots 1, 2, 3, 4, 5 and 6 Block 2; Lots 1, 2, 3, 4, 5 and 6 of Block 3; Lots 1, 2, 3, 4, 5 and 6 of Block 4; Lots 1, 2, 3, 4, 5 and 6 of Block 5; Lots 1, 2, 3, 4, 5 and 6 of Block 6; Lots 1, 2, 3, 4, 5, and 6 of Block 7; all in "Oak Brook Townhouses" in the City of Dubuque, Iowa, according to the recorded Plat thereof; and Lots 7, 7a, 8, Sa, 9, 10, 10a, 11, 12, 13, 14 and Lot 1 of Lot 15 in "Oakbrook Development" in the City of Dubuque, Iowa, according to the recorded Plat thereof consisting of approximately 7.7 acres located in Dubuque County, Dubuque, Iowa. WHEREAS, Raven Oaks will he a three story brick and sided building containing a combined total of 62 one-bedroom and two-bedroom units, including a full time manager's unit; WHEREAS, Raven Oaks units will be targeted to older adults 55 years of age and older; WHEREAS, Raven Oaks will he a new consmmtion project built on a vacant parcel of land; WHEREAS, Raven Oaks will have the following amenities: · Community Room with Kitchen Facilities · Library/Computer Room · Sittiag Area · Underground Parking · Heat Included in Rent · Air Conditioning · Appliances Included (Range, Refrigerator, Dishwasher and Disposal) · Additional Storage Space · Laundry Facilities on Every Floor · Patios or Balconies · Fitness Center · CraR Room · Movie Room · Outdoor Patio with Gazebo, Furniture and Grill(s) · Vegetable Garden Plots · Space Ava'flable for a local financial institution · Space Available for a local beauty shop operator · Emergency Call System · 24-Hour Security · Wellness Monitoring Clinic · Optional Meal Program · Optional Housekeeping · Planned Social & Recreational Activities NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF TItE CITY OF DUBUQUE, IOWA: Section 1. The City supports the application of Raven Oaks Senior Apartments for Low-Income Housing Tax Credits, subject to necessary public hearings, ordinances and building permits. Section 2. This resold'ion shall remain effective until 1 November 2001. In the event that any of the above-Yxsted characteristics of Raven Oaks should materially change prior to the issuance of a building permit, this resolution shall be null and void. Passed, approved and adopted this day of May, 2001. Attest: Terrance M. Duggan, Mayor Jeanne F. Schneider, CIVIC City Clerk Preparer: JeanNoel Address: 1805 Central Telephone: (563)589-42349 RESOLUTION NO. -01 A RESOLUTION OF LOCAL CONTRIBUTlNG EFFORT FOR THE DEVELOPMENT OF AN AFFORDABLE HOUSING PROJECT TO BE KNOWN AS RAVEN OAKS SENIOR APARTMENTS WHEREAS, the City of Dubuque, Iowa, has been informed by Star Development, L.L.C., a Delaware Limited Liability Company ("Staff') that it will file a low income housing tax credit application with the Iowa Finance Authority for the development ora sixty-two (62) unit senior mixed at~brdable and market rate rental housing project to be known as Raven Oaks Sen/or Apartmems ("Raven Oaks"); WHEREAS, Raven Oaks is to be located on approximately 7.7 acres of vacant property at Raven Oaks and Crissy Drives in Dubuque ("Property"); WHEREAS, Raven Oaks will be targeted to older adults 55 years of age and older; WHEREAS, Star Development has requested that the City of Dubuque, as part of a local contributing effort to the development, provide $42 000 in fulfillment of the one percent (1%) matching requirement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The City shall conm'bute to the development of Raven Oaks Senior Apartments, in the mount of $42 000. Passed, approved and adopted this day of May, 2001. Attest: Terrance M. Duggan, Mayor Jeanne F. Schneider, CMC City Clerk Post Office Box 521 ~ Hales Corners, ~ 53130 ~ Phone 414-42%9639 Fax 414-525-0725 April 25, 2001 Mr. David Hards City Housing Director City of Dubuque 1805 Central Avenue Dubuque, Iowa 52001 Re: Raven Oaks Senior Apartments Dear Mr. Harris: The purpose of this letter is to provide you with information regarding Star Development, LLC.'s ("Star") proposed Raven Oaks Senior Apartments and to request the City of Dubuque's support of the project. Star is proposing to construct 62 units of independent living for older adults age 55 and over in one building located on a 7.7-acre s'~ on Raven Oaks Ddve at John F. Kennedy Road. This three (3) story building will be of superior quality and consist of large one and two bedroom apartments with a broad array of affordable and market rate units. The project will include numerous architectural design features and amenities targeted to older adults including underground parking, a large community room with kitchen facilities, library/computer room, fitness center, an outdoor patio with a gazebo, and garden plots. Also, the building will have space available for a local financial inslitution and beauty shop operator to provide services for residents on-site. We are in the process of completing a proposed development plan for submission as part of a request to the Zoning Commission, which wa will forward to you under separate cover upon its completion. However, we have included a site plan, building eleva~on and conceptual floor plans for Star's Northgate Senior Apartments project located in North Fond du Lac, VVisconsin. We anticipate the Raven Oaks Senior Apartments will look very similar to this project. Raven Oaks Senior Apartments will also have a comprehensive resident services program for its residents. The program takes a holistic approach to providing a supportive environment, which encourages personal well being and happiness. Our emphasis on wellness in daily activities recognizes the beneficial interaction of good physical and mental health promoted by an active lifestyle. Residents will be offered a variety of social and recreational opportunities through a combination of personal and group activities. Activities will be coordinated with local supportive service providers to the extent possible. An outline of Raven Oaks Resident Services Program is also attached. Star intends to apply to the Iowa Finance Authority ("IFA") for an allocaUon of tax credits in its current round of funding which has an application due date of June 11, 2001. As part of IFA's threshold requirements under its 2001 Qualified Allocation Plan, an applicant is required to document a local contributing effort with a value of at least one (1) percent of the project's hard construction costs. Star has estimated that the minimum amount of the local contributing effort for the Raven Oaks Senior ApadJ-nents will be approximately $ 40,000. The local contributing effort can be provided in a number of ways including but not limited to infrastructure costs such as cos'cs associated with street and/or sewer and water extensions, TIF proceeds, Home grants or loans, tax abatement, and a below market rate loan from a local or regional public agency. There are also two additional issues associated with IFA's 2001 Qualified Allocation Plan for its tax credit program, which involve the local municipality. One involves the Public Housing Authority (PHA) and the need to have a written agreement outlining the PHA's willingness to refer households on their waiting list to the project, which Star is most willing to do. The other issue involves the project receiving a Support Resolution from the City of Dubuque for the project. Both of these preceding issues are point scodng concerns with IFA. Clearly, obtaining the required documentation outlined is key for the project to competitively score within IFA's point-scoring system. Star has been involved with numerous multifamity affordable housing properties financed through USDA Rural Development, State Agencies and HUD for over 12 years through its Principals, Michael K. and Marylou Moore ("the Moores"). The Moores are also the Principals of Professional Property Management, LLC ("PPM"). PPM manages 198 mulflfamily housing projects including 6,429 units located throughout the Midwest includ'~ng Iowa, with 98 of those projects financed through the allocation of affordable housing tax credits. Star believes the development of Raven Oaks Senior Apartments will result in an extremely positive asset to the City of Dubuque. There is considerable unmet demand for quality affordable senior housing in the community as evidenced by waiting lists in existing projects. In addition, Raven Oaks overall design/services for seniors will be superior and unique in the marketplace. Our project concept will not only meet market demand but will do so in a complimentary fashion to existing projects. In sum, Star's recently decided through its own strategic planning efforts to make a long-term commitment to affordable housing in the State of Iowa. Star will be actively involved in the Raven Oaks Senior Apartments over the long run through its ownership and day to day management. We desire to work with the City of Dubuque in the development of Raven Oaks a true public-private partnership framework. Again, our needs for the purposes of the June 11th IFA application deadline, which we would like to work in partnemhip with the City of Dubuque, are: · Local Contributing Effort of at least one (1) percent. · PHA Agreement · Support Resolution Regarding the Support Resolution, we have included a dm~t Support Resolution for your consideration. This Support Resolution is based upon an IFA sample resolution provided as part of their application. Star looks forward to working with you and the City of Dubuque in a collaborative fashion on this most worthwhile project. Please feel free to contact me with questions anytime at (414) 427-9639. VerY Truly Yours, Perry G. Harenda Project Manager CITY OF DUBUQUE, IOWA MEMORANDUM 15 May 01 To: Michael Van Milligen, City Manager From: David Harris, Housing and Community Development Department Re: Affordable Housing Tax Credit Program application fi.om Community Housing Initiatives Introduction The purpose of this memorandum is to review the request fi.om a private developer for City support of an application to the Iowa Finance Authority for housing tax credits; and for financial assistance to subsidize costs of construction of new affordable senior citizen apartments to be located on the Medical Associates campus. Background The Affordable Housing Tax Credit Program provides an equity financing mechanism for housing projects which in mm must provide rental units for low- and moderate-income tenants. It implements Section 42 of the Internal Revenue Service Code, remruiug tax credits to investors who build or renovate low income housing. In Iowa it is administered by the Iowa Finance Authority, which annually distributes approximately $4 million in tax credits State-wide, on a competitive application basis. In Dubuque, projects previously financed through this program include Heartland Housing Initiative's Loras Boulevard and Main Street apartments, the Applewood complex on Pennsylvania Avenue and the Bishop's Block Apartments. The Iowa Inn project was also awarded tax credits last year and is scheduled to commence construction this summer. For this year's tax credit funding competition, the Finance Authority has revised its administrative rules. Now required of all applicants is commitment firom a "public or private agency" of a "local contributing effort" with a value of not less than one percent of construction costs of the project. This is a threshold scoring requirement for the tax credit application. This funding match may be obta'med in a variety of ways. For instance, the local governmental entity may contribute in the form of tax abatement or fi.om tax increment finance district proceeds, tax-exempt bond financing a HOM3E Program loan or donation of land or infi~astructure costs. Absent public assistance, other means of satisfying the local contributing effort include private contributions, private loans at favorable terms, utility costs reductions, an equity contribution by the project sponsor or the value of an in-kind contribution by a tax-exempt organization. As of this date, the City Council has not provided financial assistance to new housing construction projects built on undeveloped land. Instead, public funds have been used to assist rehabilitation of existing housing and for conversion of other, older buildings to residential uses - all in the older, developed sections of the City. This past year, for the first time, the City has participated in two new housing construction projects, as part of our neighborhood revitalization efforts. The first is a low-moderate income single-room occupancy facility now nearing completion on Garfield Avenue. The derelict former seminary building on the site was demolished, the Housing Department obtained a $200 000 grant from the Iowa Department of Economic Development and the Council approved a site-specific urban revitalization district for this project. The tax abatement resulting from this designation will total approximately $110 000 in direct City subsidy over the ten-year life of the district. Total project cost is estimated at $500 000. The other new construction project, now in final planning stages, also involved demolition, at a site on West Eighth Street. The owner demolished two derelict houses with the proceeds of a $30 000 City CDBG loan, the Housing Department again authored a successful grant application to IDED - this one for $100 000 - and a fly,unit affordable condomim'um homes development will be constructed. Other than pass-through of these Federal and state funds, no City financial assistance was provided. Total project cost is estimated at $405 000. However, because of the first-time requirement in the Iowa Finance Authority rules for local financial contribution, Community Housing Initiatives (CHI) is requesting that the Council consider the merits of public participation in construction of new housing on undeveloped land in a newer area of the City. Note: The Council has designated owner-occupied affordable housing as a priority for tiffs fiscal year. However, the proposed project is for development of rental homing units. Discussion Community Housing Initiative's request is for assistance for construction of the River Oaks Apartments, a 28 unit complex for seniors. It is to be located on the Medical Associates campus. Representatives have requested the City to provide the required match, in the amount of $26 000. The form of assistance has not been specified, although discussions have taken place regarding the appropriateness of tax abatement. For purposes ofthe application, a resolution of support and conditio~ financial match commitment must be obtained at this time; the deadline for submission to the Finance Authority is 1 June. Materials provided by CHI are attached, including floor plans and a conceptual site plan. Recommendation The developer's request is presented to the Council without recommendation. Action Step The action requested of the City Council is to consider Community Housing Initiative's request for support of a seniors residential complex on the Medical Associates campus.. Specifically, the request is for authorization of the Mayor's signature on the two attached resolutions, supporting the application for tax credits to the Iowa Finance Authority; and conditionally committing $26 000 in unspecified City financial assistance toward costs of development. cb 17122821192 P, 08/~3 // [~¥-16-01 !~ED 0I:38 PH OOi~IUNIT¥ HOUSING FA× NO, 17122621192 P. 11/13 1BR ~BR IlBR 1BR [~1' I I i i. I 'UOMMUNI.TY ~Y-i6-01 ~ED 01:38 PM OOi~UNITY HOUSING FAX NO, 17122621192 P. 09/13 Two .B.edroom / One Bath Preparer: Jean Noel Address: 1805 Central Telephone: (563)589-4239 RESOLUTION NO. - 01 A RESOLUTION OF SUPPORT FOR THE DEVELOPMENT OF AN AFFORDABLE HOUSING PROJECT TO BE KNOWN AS RIVER OAKS SENIOR APARTMENTS WHEREAS, the City of Dubuque, Iowa has been informed by Community Housing Initiatives Inc that a Iow income housing tax credit application will be filed with the Iowa Finance Authority for the development of a twenty-eight (28) unit senior affordable rental housing project to be known as the River Oaks Senior Apartments ("River Oaks") to be located on approximately 2 acres at the Medical Associates campus in Dubuque, Iowa ("Property"); WHEREAS, the Property is legally described as follows: Up to 2 acres of the North-east corner of Lot Ten (10), Medical Associates, Subdivision Number Two (2), in the City of Dubuque, County of Dubuque, Iowa, according to the recorded Plat thereof. WHEREAS, River Oaks units will be targeted to older adults 55 years of age and older; WHEREAS, River Oaks will be a new construction project built on a vacant parcel of land; WHEREAS, River Oaks will have the following amenities: Community Room In-unit Washer and Dryer Basement Stall Parking Heat Included in Rent Air Conditioning Appliances Included, (Range, Refrigerator, Dishwasher, Disposal) Patio/Balcony Security System Optional Supportive Services (monthly wellness checks, noon Meals, transportation coordination, home health referral) NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The City supports the application of River Oaks Senior Apartments For Low-Income Housing Tax Credits, subject to necessary public hearings, ordinances and building permits. Section 2. This resolution shall remain effective until 1 November 2001. In the event that any of the above-listed characteristics of River Oaks should materially change pdor to the issuance of a building permit, this resolution shall be null and void. Passed, approved and adopted this day of May, 2001. Attest: Termnce M. Duggan, Mayor Jeanne F. Schneider, CMC City Clerk Preparer: Jean Noel Address: t805 Central Telephone: (563) 589-42349 RESOLUTION NO. -01 A RESOLUTION OF LOCAL CONTRIBUTING EFFORT FOR THE DEVELOPMENT OF AN AFFORDABLE HOUSING PROJECT TO BE KNOWN AS RIVER OAKS SENIOR APARTMENTS WHEREAS, the City of Dubuque, Iowa, has been informed by Community Housing Initiatives Inc that it will file a Iow income housing tax credit application with the Iowa Finance Authority for the development of a twenty-eight (28) unit senior affordable rental housing project to be known as River Oaks Senior Apartments ("River Oaks"); WHEREAS, River Oaks is to be located on approximately 2 acres of vacant property at the Medical Associates campus in Dubuque ("Property"); WHEREAS, River Oaks will be targeted to older adults 55 years of age and older; WHEREAS, Community Housing Initiatives has requested that the City of Dubuque, as part of a local contributing effort to the development, provide $26 000 in fulfillment of the one percent (1%) matching requirement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The City shall contribute to the development of River Oaks Senior Apartments, in the amount of $26 000. Passed, approved and adopted this day of May, 2001. Attest: Terrance M. Duggan, Mayor Jeanne F. Schneider, CMC City Clerk COMMUNITY HOUSING Ffl× NO. IY1Z2621192 ?, 02/07 May 17, 2001 Mr. DavM Cky of Dnbuqn¢ Housing and Commlmity De~e,,' lopment Department Dabuquo, IA 52001-3656 : Re: River Oaks APartments - 2001 Low Income Housing Tax Credit Proposal Mx. Hanis: On behalf of Com~uni;y Hous~g Initiatives, ~c. (CHI), I ~ ~t~g to ~k ~ the CiW Co,oil of Dubuq~ sup~ ~ ~v~ O~ A~en~ ~oj~ a 28-~t ~opos~ to ~e Io;~ F~cc Au~o~ for ~ a~ of 200] Low Income Houshg T~ C~B (LIHTC). S~ifi~ly, C~ is ~ ~ ~e Co--il ~s a resol~on ~t bo~ sup~ ~e project ~d ~ ~ ~vi~ $26,000 ~ ~sis~ee ~ ~fis~ ~e one ~ent loe~ p~dpafion ~mmenm of ~e 2001 L~TC ~o~. Commanity Homing Initiatives, Inc. ia a nonprofit homing and development orgaN~,atlon that has worked throughout Iowa on projects similar to River Oaks. Om organization will participate a~ developer and property manager Of the project. Attached is some information about CHI. Additional infommfion and photo* of CHI projects can be found on our website at www.ehihoming, eolm. River Oaks will be located at the South end of Aggic Street. Major streets nero the site include Permsylvauia Argue attd Northwest Arterial. The project will be tesuicted to seniors ~ged 55 and older and will consist of 10 one-bedroom apmlments and lg two-bedroom apartments~ Amenities and features of River Oaks include the following: In-Un/t: Range Refrigerator mshwasher Disposal Washer and Dryer Air Conditioning · Window Coverings. Patio/Deck Common Area/Other: Basement stall parldng'for tenant, ax}fl surfac~ pm:king for visitors Furnished community rOOm with kitchene~e and television Secured entry Optional mpportive services includ/ng: . Noon meals Wethaes$ cheeks Transportation ceordirmtion. Home l~alth referral 14We~t 21~t Street, Saite 3 · PO Itc~ 473 ° Spencer, IOWa 51~)1 · [712) 262-5965 .o Fax (712) 262-1192 · I~OE Homing D~d~ment & Cort~tlng Group H~Y-17-01THU 12:42 ?H OONMUNITY HOUSING F~ NO. 17122621192 P. 03/07 River Oaks ~nll be targete, d to semors at or below 60'~ of the area median income for Dubuque. Speci~caIly, 17 of the units.will be occupied by tenants at or below 60% of the area median, five units at or b~low 50% mediar~ and six units at or b~low 40% median. Projected r~nts am $308-$364 for ono-b~d.room units and $363-$455 for two-bedroom units. I have provided preliminary plans and othor infonnafiom If we can answer any questions, don't hesitate to contact me or Sam Edckson at 712262.5965. We are excited about th~ oppo~turdty to work in Dubuque and are hopeful that the Council approves to support River Oaks for an award of Low Income Housing Tax Credits.