Resolution of Support for Proposed Low Income Housing Project - Horizon DevelopmentCity of Dubuque
City Council Meeting
Action Items # 01.
Copyrighted
April 17, 2023
ITEM TITLE: Resolution of Support for Proposed Low Income Housing Project —
Horizon Development
SUMMARY: City Manager recommending City Council approval of a resolution of
support for a proposed 30-unit low-income housing project by Horizon
Development at 1301 Central Avenue.
SUGGESTED
DISPOSITION:
ATTACHMENTS:
Description
MVM Memo
Staff Memo
Resolution
Letter of Support
Letter of Intent PBV
RESOLUTION Providing a Letter of Support for a Low -I ncome Housing
Tax Credit Project proposed by Horizon Development
Suggested Disposition: Receive and File; Adopt Resolution(s)
Type
City Manager Memo
Staff Memo
Resolutions
Supporting Documentation
Supporting Documentation
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Resolution of Support for Proposed Low Income Housing Project —
Horizon Development
DATE: April 13, 2023
Housing & Community Development Director Alexis Steger is recommending City
Council approval of a resolution of support for a proposed 30-unit low-income housing
project by Horizon Development at 1301 Central Avenue.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Mic ael C. Van Milligen
MCVM:sv
Attachment
CC' Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Alexis Steger, Housing and Community Development Director
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TO: Michael C. Van Milligen, City Manager
FROM: Alexis M. Steger, Housing and Community Development Director
DATE: April 13, 2023
RE: Resolution of Support for Proposed Low Income Housing Project —
Horizon Development
Introduction
This memorandum requests approval of a resolution of support for a proposed 30-unit
low-income housing project.
Background
A developer, Horizon Development Group intends to submit an application for 9% Low-
income housing tax credits to the Iowa Finance Authority for a 30-unit low-income
housing project located at 1301 Central Avenue.
The rehabilitation for vacant building residential unit creation program, along with the
requested resolution of support will show strong local support for the project, which will
bolster Horizon Development's Low Income Housing Tax Credit (LIHTC) application to
the Iowa Finance Authority (IFA).
Discussion
The resolution affirms housing incentives previously approved by City Council. Prior to
the project moving forward, a development agreement would be required that would
outline specific incentives and requirements.
Consistency with City Council Goals & Priorities
The City of Dubuque reviews applications for city support to ensure the request is
consistent with the City Council Goals & Priorities. The proposed Horizon Development
project furthers City Council goals of having "Livable Neighborhoods and Housing:
Great Place to Live" and "Partnership for a Better Dubuque: Building our Community
that is Viable, Livable, and Equitable".
This project also furthers the "Management in Progress" efforts to support Low Income
Housing Tax Credits Program/Projects.
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. Prior
to project commencement Dubuque Housing Group will be required to enter into an
agreement with the City of Dubuque which would include the requirement to accept
housing choice vouchers.
Location
Affordable housing projects are given a priority for city support if they are located
outside an area of concentrated poverty based on the recommendations of the
Voluntary Compliance Agreement and U.S. Department of Housing and Urban
Development. This project is not outside the area of concentrated poverty.
Opportunity Areas
Iowa's LIHTC program calculated the "high" and "very high" opportunity areas as part of
the State of Iowa's Analysis of Impediments to Fair Housing Choice. IFA and the Iowa
Economic Development Authority are required to conduct such an analysis because
both agencies administer HUD funding. One of the components of the Analysis is to
identify Opportunity Areas.
HUD adapted the Communities of Opportunity model to calculate opportunity index
scores for each census block group on six separate dimensions: Prosperity, Labor
Market Engagement, Job Access, Mobility, School Proficiency, and Community Health.
Each dimension analyzed for Iowa's Analysis of Impediments to Fair Housing
Choice includes a collection of variables describing conditions for each census tract in
the State.
1301 Central Avenue is in a designated "high" opportunity area.
Community Input
All projects requesting city support are required to hold a community meeting, where at
a minimum, residents within a 200-foot radius of the project receive an invitation. No
concerns were raised at that meeting. Any site development would require review by
the Development review team and storm water management and erosion controls
would be required at that time.
Relocation
The proposed project is converting commerical construction; therefore, no persons,
families, business or others would be displaced for this project.
Recommendation
Staff recommends the City support these efforts to promote quality, affordable housing,
with attention to the needs of families.
Action Requested
I respectfully request the City Council approve the Resolution of Support.
Cc: Wally Wernimont, City Planner
Crenna Brumwell, City Attorney
3
Prepared by Alexis Steger, Housing & Community Devel. 350 W. 611 St., Suite 312, (563) 690-6072
Return to Adrienne N. Breitfeider, City Clerk, 50 W. 13=h St., Dubuque, IA 52001, (563) 589-4100
RESOLUTION NO. 119-23
PROVIDING A LETTER OF SUPPORT FOR A LOW-INCOME HOUSING TAX
CREDIT PROJECT PROPOSED BY HORIZON DEVELOPMENT
WHEREAS, Horizon Development ("Developer"), is proposing to submit an
application for 9% LIHTC to the Iowa Finance Authority ("IFA") for a proposed
affordable housing project on the Property; and
WHEREAS, IFA requires, as part of an application by the Developer,
documentation from the City enumerating project -specific support which is not
more than 180 days old on or as of the date the application is submitted; and
WHEREAS, the City Council desires to affirm the project provision of a
public benefit by creating new affordable housing units in the community and
further desires to affirm support of an application of LIHTC for the Project and
conditional approval of certain financial assistance.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA, as follows:
1. The City Council affirms and authorizes its support of the proposed
Project by the Developer to IFA for the competitive 9% LIHTC funding in the 2023
application round.
2. The City Council provides conditional financial support for the Project
through established housing creation incentives, subject to approval by IFA of the
Project for 9% LIHTC Funds in the 2023 application round, and an executed
development agreement,
Passed, approved and adopted this 17th day of April, 2023.
Attest:
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Adrienne N. Breitfelder, City Clerk
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Mr. Derek Folden, Tax Credit Director
Iowa Finance Authority
1963 Bell Avenue, Suite 200
Des Moines, Iowa 50315
Dubuque
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RE: Support letter
JB Lofts — 1301 Central Avenue, Dubuque, IA
Dear Mr. Folden,
Housing & Community Development
Department
350 West 6" Street, Suite 312
Dubuque, Iowa 52001
Office (563) 589-4230
Fax (563) 690-6693
The City of Dubuque continues to face increased challenges in the need for quality, affordable housing.
Increasing safe and affordable housing opportunities is a primary focus of the City's FY 2021-2025
Consolidated Plan, and we are pleased to support the 30-unit affordable housing community proposed
by Horizon Development Group, Inc. to be located at 1301 Central Avenue.
Advancing this project would mean additional quality housing options for qualifying households at or
below 60% of area median income, including (3) permanent supportive housing units that will assist
most vulnerable populations in our community. Additionally, we understand the project is applying for
HOME program assistance. The project not only aims to repurpose an iconic, vacant building in the
City's downtown but simultaneously addresses the community -wide need for affordable housing. The
City of Dubuque has worked with Horizon Development Group, Inc. on past affordable housing projects
and strongly supports the effort to move the project forward.
If I can provide any other information or perspective, please feel free to contact me.
Sincerely,
Alexis Steger
Housing & Community Development Director
City of Dubuque, Iowa
(563) 589-4230
Service People Integrity Responsibility Innovation Teamwork
Dubuque Housing and Community DevelopmentggTHE CITY DF Assisted Housin Pro ram
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April 13, 2023
Scott Kwiecinski
Development Manager
Horizon Development Group, Inc
5201 E. Terrace Dr., Suite 300
Madison, WI 53718
RE: Horizon Development Group, Inc
Letter of Commitment — Project Based Vouchers
Dear Mr. Kwiecinski:
This letter serves as a commitment from the City of Dubuque Public Housing Authority for Section 8 Project
Based Voucher rental assistance for 3 apartment units at 1301 Central Avenue, Dubuque, IA 52001.
The City of Dubuque Public Housing Authority can pay up to 110% of the Small Area Fair Market Rent
(SAFMR) per month. We are committing to provide subsidy for a minimum duration of 10-years subject to the
following:
1. The project must receive an allocation of tax credits in the 2023 allocation cycle.
2. The project must receive approval from the U.S. Department of Housing and Urban
Development (HUD) following a Subsidy Layering Review.
3. Funds are subject to HUD's annual appropriation and program funding availability.
4. The owner of the project must enter into a final agreement for the rental assistance which is
acceptable to the City of Dubuque Public Housing Authority.
The City of Dubuque is enthusiastic about the rehabilitation of a historic, centralized building to create new
affordable housing units. If we can provide any further assistance with this application, please do not hesitate
to contact me.
Sincerely,
Alexis Steger
Housing & Community Development Director
City of Dubuque Housing & CD Dept
Phone: 563-690-6072
asteger@cityofdubuque.org
Service People Integrity Responsibility Innovation Teamwork