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Letter of Support for Certifying the Greater Dubuque Housing Trust FundCity of Dubuque City Council CONSENT ITEMS # 10. Copyrighted August 18, 2025 ITEM TITLE: Letter of Support for Certifying the Greater Dubuque Housing Trust Fund SUMMARY: A letter of support is provided from Mayor Brad Cavanagh to the Iowa Finance Authority Board of Directors in support of the transition of governance for the Local Housing Trust Fund serving the City of Dubuque from the City to the new nonprofit, Greater Dubuque Housing Trust Fund. SUGGUESTED Receive and File; Approve DISPOSITION: ATTACHMENTS: IFA - GDHTF Jurisdictional Acknowledgement Page 270 of 579 Dubuque THE CITY OF DUTBQTE JDAoeMa City Masterpiece on the Mississippi 2007-2012.20132017*2019 TO: Iowa Finance Authority Board of Directors FROM: Brad Cavanagh, Mayor SUBJECT: Jurisdictional Support for Certifying the Greater Dubuque Housing Trust Fund DATE: July 30, 2025 The City of Dubuque established a Local Housing Trust Fund (LHTF) over 30 years ago to address affordable housing and meet the needs of the city's low- and moderate - income residents. The primary role of the Local Housing Trust Fund has been to increase affordable housing, assist first-time homebuyers with down payments and closing costs, rehabilitate affordable housing, and invest in neighborhood revitalization. Although the City of Dubuque Local Housing Trust Fund has been in existence for several decades, the structure of the LHTF does not fit within IFA's current certification requirements. The City acknowledges that it is best practice for LHTFs to be a certified nonprofit entity and must have a standalone Board of Directors that makes funding decisions. This Board must be comprised of no more than 50% of individuals from local government/public officials. The current governance structure does not align with this, so the City approached community partners to discuss transitioning the governance structure to a nonprofit in September 2024. One of the greatest benefits LHTFs bring to their communities is the ability to fundraise as a nonprofit entity, and to leverage multiple funding sources to address affordable housing issues in their communities. With the current governance structure under the City of Dubuque, it creates complexities with fundraising and potentially limits the impact of the LHTF. In partnership with the Community Foundation of Greater Dubuque, the Greater Dubuque Housing Trust Fund (GDHTF) was created, and two members of the City's Local Housing Trust Fund Advisory Committee are on the Board of Directors of this new nonprofit. While the GDHTF applies for their charitable organization status through the IRS, the City of Dubuque will remain the grantee for LHTF funds.. Page 271 of 579 Staff from the City of Dubuque's Housing Department have managed the IFA LHTF grants for many years, investing millions of dollars into housing creation and stabilization. To continue operations and spend the IFA grants in a timely manner, the GDHTF and City of Dubuque have proposed to enter a Contract for Services. Housing staff will continue to operate programs funded through LHTF dollars, although the grantee will now be the GDHTF. The City of Dubuque fully supports the transition of governance for the Local Housing Trust Fund serving the city of Dubuque from the City to the new nonprofit, Greater Dubuque Housing Trust Fund. Respectfully, l Brad Cavanagh Mayor Page 272 of 579