Authorization to File and Release Property Liens for CDBG-NDR GrantCopyrighted
November 6, 2017
City of Dubuque Consent Items # 10.
ITEM TITLE:
SUMMARY:
Authorization to File and Release Property Liens for
Community Development Block Grant, National Disaster
Resilience (CDBG-NDR) Grant
City Manager recommending authorization for the City
Manager or the City Manager's Designee to sign forgivable
loan documents for the Community Development Block
Grant National Disaster Resilience Grant, locally known as
the Bee Branch 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 Community Development Block Grant,
National Disaster Resilience (CDBG-NDR) Grant
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt
Resolution(s)
ATTACHMENTS:
Description Type
Authorization to File and Release Liens on Properties in City Manager Memo
CDBG-NDR Grant -MVM Memo
Staff memo Resolutions
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
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',TUNA VA,
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2007.2012
2013.2017
SUBJECT: Authorization to File and Release Liens on Properties Participating in the
Community Development Block Grant, National Disaster Resilience
(CDBG-NDR) 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 sign
forgivable loan documents for the Community Development Block Grant National
Disaster Resilience Grant, locally known as the Bee Branch Healthy Homes program.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
YVGv� v t�v�,
Mic ael 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
THE CITY OF
DU1Ui
Masterpiece on the Mississippi
TO: Michael C Van Milligen, City Manager
FROM: Alvin Nash, Housing & Community Development Director
DATE: October 30, 2017
RE:
Dubuque
bland
111•A.eri i City
2007.2012
2013.2017
Authorization to File and Release Liens on Properties participating in the
Community Development Block Grant, National Disaster Resilience
(CDBG-NDR) 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 sign forgivable loan documents for the
CDBG-NDR Grant, locally known as the Bee Branch Healthy Homes (BBHH) program.
BACKGROUND
In January of 2017, the City contracted with Iowa Economic Development Authority
(IEDA) to make flood -resilient improvements to residential housing units in the City of
Dubuque. The BBHH program has been working with families since January to improve
their home's resilience. As part of the agreement with the property owner, a (5) year
receding forgivable loan must be placed on the property in the total dollar amount of
repairs, of which, 20% is forgiven each year following the construction project activities.
In order for an assisted property owner to receive a five-year receding forgivable loan,
he or she must sign a promissory note and mortgage lien to secure the full amount of
the five-year receding forgivable loan.
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 loan is an integral piece of the program agreement and required by the
BBHH program administrative plan. Each property that participates will need to have a
forgivable loan signed and a mortgage lien filed against the property. Hundreds of
properties will participate in the program before the end of June 2021, and need a
designated signatory from the City. It is imperative that as soon as a project is
completed, the mortgage lien document is filed. This allows for the project to be closed
out in various capacities including the contractual reporting and financial sides of the
project.
RECOMMENDATION
I recommend the signatory authority for property liens, mortgages and releases for the
Bee Branch Healthy Homes program, funded by the CDBG-NDR grant be signed by the
Housing & Community Development Director. This will result in a more efficient process
given the volume of properties that will complete the program.
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 certain real estate liens
and/or mortgage instruments, as well as their associated releases on behalf of the City
of Dubuque.
cc: Mark Schneider, ECIA
Crenna Brumwell, City Attorney
Prepared Sharon Gaul, Resiliency Coordinator
2
RESOLUTION NO. 349-17
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 COMMUNITY DEVELOPMENT
BLOCK GRANT, NATIONAL DISASTER RESILIENCE (CDBG-NDR) 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 Iowa Economic Development Authority Community
Development Block Grant National Disaster Resiliency Grant (Contract #13-NDRH-001) 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 Community
Development Block Grant National Disaster Resiliency 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 as part of the
Community Development Block Grant, National Disaster Resilience Grant.
Passed, approved, and adopted this 6th day of November, 2017.
ATTEST:
Kev`n S. Firnstahl, City Clerk
D. Buol, Mayor