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Authorization to File and Release Property Liens for Lead Hazard Control and Healthy Homes GrantCopyrighted November 6, 2017 City of Dubuque Consent Items # 9. ITEM TITLE: Authorization to File and Release Property Liens for Lead Hazard Control and Healthy Homes Grant SUMMARY: City Manager recommending authorization for the City Manager or the City Manager's Designee to file and release liens on properties that are participating in the Lead Hazard Control and Healthy Homes Program. RESOLUTION of the City of Dubuque approving an authorization of the City Manager or the City Manager's designee to file and release liens on properties participating in the Lead Hazard Control and Healthy Homes Grant SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s) ATTACHMENTS: Description Type Authorization to File and Release Liens on Lead Hazard City Manager Memo Control and Healthy Homes Grant -MVM Memo Staff Memo Staff Memo Resolution Resolutions THE CITY OF Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager Dubuque �.nw,.rnxirxz� �111F 2007.2012 2013.2017 SUBJECT: Authorization to File and Release Liens on Properties Participating in the Lead Hazard Control and Healthy Homes Grant DATE: November 1, 2017 Housing and Community Development Department Director Alvin Nash recommends City Council authorization for the City Manager or the City Manager's Designee to file and release liens on properties that are participating in the Lead Hazard Control and Healthy Homes Program. I concur with the recommendation and respectfully request Mayor and City Council approval. 171,dwi(' Micfiael C. Van Milligen' MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Teri Goodmann, Assistant City Manager Cori Burbach, Assistant City Manager Alvin Nash, Housing & Community Development Department Director Masterpiece on the Mississippi TO: Michael C Van Milligen, City Manager FROM: Alvin Nash, Housing & Community Development Director DATE: October 30, 2017 Dubuque bitind AII•America City NA110,1 ERIC LEX., iIip:1 2007.2012 2013.2017 RE: Authorization to File and Release Liens on Properties participating in the Lead Hazard Control and Healthy Homes Grant INTRODUCTION The purpose of this memo is to request City Council consider a recommendation from the Housing & Community Development Department Director to authorize the City Manager or the City Manager's Designee to file and release liens on properties that are participating in the Lead and Healthy Homes Program. BACKGROUND Since 1997 the City of Dubuque has received grant funding from the federal Housing and Urban Development Department (HUD) to assist in making residential housing units in the City of Dubuque healthier and lead safe. After property eligibility is determined, a lead inspection risk assessment completed, work specifications prepared, and lowest bid accepted, a closing is held with the property owner. Closing documents are signed that include a three-year forgivable promissory note in the dollar amount of the total agreed upon contract; less the owner contribution. A mortgage lien filing for this amount is placed on the property for the three-year period during which the forgivable loan is in place. Each year 33 1/3% of the loan is forgiven thus, after the three year period the mortgage filing is released. The Housing & Community Development Director is currently authorized to sign similar mortgages for the Housing Rehabilitation program, as well as release the lien or mortgage when the term and agreement has been fulfilled. DISCUSSION The forgivable promissory note is an integral piece of the program closing process. Each property that participates in the Program will have a forgivable promissory note signed and a mortgage lien filed on the property. This lien against the property helps ensure compliance of the Program requirements by the property owner. If the property owner does not stay in compliance the lien is not released. RECOMMENDATION I recommend the signatory authority for mortgages and releases for the Lead Hazard Control and Healthy Homes Program, funded by HUD be signed by the Housing & Community Development Director. REQUESTED ACTION I respectfully request the City Council approve and designate the City Manager or the City Manager's Designee to be authorized to sign interest in real estate mortgage liens as well as their associated releases on behalf of the City of Dubuque. cc: Crenna Brumwell, City Attorney Prepared by Kim Glaser, Lead & Healthy Homes Program Manager 2 RESOLUTION NO. 348-17 A RESOLUTION OF THE CITY OF DUBUQUE APPROVING AN AUTHORIZATION OF THE CITY MANAGER OR THE CITY MANAGER'S DESIGNEE TO FILE AND RELEASE LIENS ON PROPERTIES PARTICIPATING IN THE LEAD HAZARD CONTROL AND HEALTHY HOMES GRANT WHEREAS, THE CITY OF DUBUQUE, Iowa by and through its Housing & Community Development Department, executes property liens and mortgage instruments on behalf of the City; and WHEREAS, the various lien and mortgage instruments create an interest by the City in the various parcels of real estate which have been rehabilitated or repaired under the eligible activities provided through the federal Housing and Urban Development Department Lead and Healthy Homes Grant and other applicable standards; and WHEREAS, the City is frequently requested to dispose of its interest in said real estate after the property owner has fulfilled the financial and other obligations of their lien and /or mortgage instrument; and WHEREAS, it is impractical to have each such disposition approved by the City Council. NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. That the City Manager, or his designee, is authorized to release City of Dubuque interest in real estate which has been rehabilitated through the Lead Hazard Control and Healthy Homes Grant activity, if the owner fulfills all the terms and conditions of the lien and/or mortgage instrument involved. Section 2. That the City Council shall retain the authority to dispose of interest in any real estate upon which the original terms and conditions of the lien or mortgage instruments are not fulfilled. Section 3. That this authorization shall apply to all future dispositions, as well as to any here -to -fore disposed of by the Housing & Community Development Department HUD Lead Hazard Control and Healthy Homes Grant. Passed, approved, and adopted this 6th day of November, 201'4 . ATTEST: Kevin §. Firnstalil, City Clerk Roy D. Buol, Mayor