Resolution of Support for Proposed Low Income Housing Project - Gronen DevelopmentCity of Dubuque
City Council Meeting
Action Items # 02.
Copyrighted
April 17, 2023
ITEM TITLE: Resolution of Support for Proposed Low Income Housing Project—
Gronen Development
SUMMARY: City Manager recommending City Council approval of a resolution of
support for a proposed rehabilitation of low-income housing at the Henry
Stout Apartments, 125 W 9th Street by Gronen Development.
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 Gronen 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 —
Gronen Development
DATE: April 13, 2023
Housing & Community Development Director Alexis Steger is recommending City
Council approval of a resolution of support for a proposed rehabilitation of low-income
housing at the Henry Stout Apartments, 125 W 91" Street by Gronen Development.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
v
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 —
Gronen Development
Introduction
This memorandum requests approval of a resolution of support for a proposed
rehabilitation of low-income housing at the Henry Stout Apartments.
Background
A developer, Gronen Development intends to submit an application for 9% Low-
income housing tax credits to the Iowa Finance Authority for the rehabilitation of units
at 125 W 9t" Street, known as the Henry Stout Apartments.
The requested resolution of support, and Section 8 Project Based Voucher
Commitment will show strong local support for the project, which will bolster Gronen
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 Gronen 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.
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.
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. V St., Suite 312, (563) 690-6072
Return to Adrienne N. Breitfelder, City Clerk, 50 W. 13th St., Dubuque, IA 52001, (563) 589-4100
RESOLUTION NO. 120-23
PROVIDING A LETTER OF SUPPORT FOR A LOW-INCOME HOUSING TAX
CREDIT PROJECT PROPOSED BY GRONEN DEVELOPMENT
WHEREAS, Gronen 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.
BradIP6avanagh, Mayor
Attest: �?
Adrienne N. Breitfelder, City Clerk
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John Gronen
President
Gronen Development
900 Jackson St Ste. LL-2
Dubuque, IA 52001
Dear Mr. Gronen,
Dubuque
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2007-2012.2013
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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 rehabilitation of affordable housing proposed by
Gronen Development at 125 W 91" Street, locally known as the Henry Stout Apartments.
Gronen has committed to the submission of an application for the 9% Low Income Housing Tax Credit.
The city understands redevelopment of this historic property in downtown areas can be an expensive
venture. New construction on the outskirts of town may be a less expensive option, but the city believes
there are many benefits to revitalizing the downtown area. The Henry Stout Senior Apartments, originally
the Dubuque Young Men's Christian Association Building ("Dubuque YMCA Building", was once a piler
for recreation and culture in the downtown area. This project will ensure affordable housing is available in
one of the City's lowest -income census tract, encourage additional revitalization, utilize existing resources
to prohibit the destruction of the environment, and maintain a historical destination where citizens and
visitors can live, work, and play.
The City of Dubuque is committed to revitalizing the downtown and this project is a catalyst project to
continue the long-term process of transforming the area. The city has been a partner in discovering
financing mechanisms for these projects and is excited for the possibility of making downtown Dubuque a
greater place to live, work, and play.
Sincerely,
Alexis Steger
Housing & Community Development Director
City of Dubuque, Iowa
Service People Integrity Responsibility Innovation Teamwork
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April 13, 2023
John Gronen
President
Gronen Development
900 Jackson Street, Suite LL-2
Dubuque, IA 52001
Housing and Community Development
Assisted Housing Program
350 W. 6" Street, Suite 312
Dubuque, IA 52001
EQUAL HOUSING Office (563) 589-4230
OPPORTUNITY
Fax (563-589-4244
RE: Gronen Development, Henry Stout Apartments
Letter of Commitment — Project Based Vouchers
Dear Mr. Gronen:
This letter serves as a commitment from the City of Dubuque Public Housing Authority for Section 8 Project
Based Voucher rental assistance for 27 apartment units at 125 W 9t" Street, 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 believes there are many benefits to revitalizing the downtown area. The Henry Stout Senior
Apartments, originally the Dubuque Young Men's Christian Association Building (`Dubuque YMCA Building"),
was once a pillar for recreation and culture in the downtown area. This project will ensure affordable housing
is available in one of the City's lowest -income census tract, encourage additional revitalization, utilize existing
resources to prohibit the destruction of the environment, and maintain a historical destination where citizens
and visitors can live, work, and play.
The City of Dubuque is committed to revitalizing the downtown and this project is a catalyst project to
continue the long-term process of transforming the area. The city has been a partner in discovering financing
mechanisms for these projects and is excited for the possibility of making downtown Dubuque a greater
place to live, work, and play.
Sincerely,
Alexis Steger
Housing & Community Development Director
Service People Integrity Responsibility Innovation Teamwork