Housing Tax Cr. ARC Kennedy PtDecember 9, 2002
TO:The Honorable Mayor and City Council Members
FROM:Michael C. Van Milligen, City Manager
SUBJECT:Affordable Housing Tax Credit Program Application from Area Residential
Care/Kennedy Point Partnership
The Affordable Housing Tax Credit Program provides an equity financing mechanism
for housing projects that in turn provide rental housing for Iow- and moderate-income
tenants. It implements Section 42 of the Internal Revenue Service Code, returning tax
credits to investors who build or renovate Iow-income housing. In Iowa it is
administered by the Iowa Finance Authority, which annually distributes approximately
$5 million in tax credits, on a competitive application basis.
A partnership between the Area Residential Care Foundation and Iowa City-based
Burns and Burns Architects has applied for tax credits for a 16-unit facility for residents
from the ARC group homes. This will be a new building, to be located on Kennedy
Circle. The project will offer independent living to the residents, with 24-hour on-site
care provided by ARC staff.
Housing and Community Development Department Director David Harris recommends
City Council authorization to support the application for equity financing assistance for
the Kennedy Point Limited Partnership project. This is a separate issue from their
previous request for urban revitalization assistance.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
David Harris, Housing and Community Development Department Director
5 December 02
To: Mike Van Milligen, City Manager
From: David Harris, Housing and Community Development Department
Re: Affordable Housing Tax Credit Program Application from Area Residential
Care/Kennedy Point Partnership.
Introduction
The purpose of this memorandum is to respond to a notification from the Iowa
Finance Authority (IFA) for comment regarding a project proposed to be
financed in part through the Authority's Affordable Housing Tax Credit Program.
Background
The Affordable Housing Tax Credit Program provides an equity financing
mechanism for housing projects which in turn provide rental housing for Iow- and
moderate-income tenants. It implements Section 42 of the Internal Revenue
Service code, returning tax credits to investors who build or renovate Iow income
housing. In Iowa it is administered by the Iowa Finance Authority, which annually
distributes approximately $5 million in tax credits, on a competitive application
basis.
In Dubuque, projects previously financed through this program include Mercy
Housing's Loras Boulevard and Main Street apartments, the Applewood complex
on Pennsylvania Avenue, the Bishop's Block Apartments and the Iowa Inn/Henry
Stout Place. The Raven Oaks/Arbor Glen apartments project was approved by
IFA last year and is expected to commence construction in the coming months.
Discussion
In the current funding cycle, a partnership between the Area Residential Care
Foundation and Iowa City-based Burns and Burns Architects has applied for tax
credits, for a 16-unit facility for residents from the ARC group homes. This will be
a new building, to be located on Kennedy Circle. The project will offer
independent living to the residents, with 24-hour on-site care provided by ARC
staff.
Action Step
The action requested of the City Council is to authorize the Mayor's execution of
the attached resolution, supporting the application for equity financing assistance
for the Kennedy Point Limited Partnership project.
RESOLUTION NO. 655-02
RESOLUTION AUTHORIZING THE CITY COUNCIL TO ENDORSE AN
APPLICATION FROM AREA .RESIDENTIAL CARE/KENNEDY POINT
PARTNERSHIP FOR FEDERAL ASSISTANCE FOR DEVELOPMENT
OF NEW RENTAL HOUSING ON KENNEDY CIRCLE
Whereas, the federal govemment, through Section 42 of the Internal
Revenue Code, offer incentives for construction of affordable rental housing
which is made available to Iow- and moderate-income households; and
Whereas, Area Residential Care and Burns and Burns Amhitects, dba
Kennedy Point Partnership, has submitted an application for affordable housing
tax credits in connection with a proposed project to construct a 16-unit apartment
facility for special needs persons in the City of Dubuque; and
Whereas, indication of City support for the requested federal assistance is
favorable to the Iowa Finance Authority's consideration of the application.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
DUBUQUE, IOWA:
Section 1. The City of Dubuque endorses and supports the application
from Kennedy Point Partnership for tax credits to the Iowa Finance Authority, for
the intended project located on Kennedy Circle.
Section 2. The City Manager is hereby authorized and directed to forward
this resolution to the Finance Authority.
Terrance M. Duggan, Mayor
Attest:
Karen M. Chesterman, Deputy City Clerk
Iowa Finance Authority
INVESTING IN HOME AND COMMUNITY
December 2, 2003
Honorable Terrance Duggan
Mayor, City of Dubuque
50W. I3th Steet
Dubuque, IA, 52001
Dear Mayor-Duggan:
Section 42(m)(1)(A)(ii) of the Internal Revenue Code of 1986, as amended, requires that the
Iowa Finance Authority notify the chief executive officer (or the equivalent) of the local
jurisdiction when an Affordable Housing Tax Credit application has been submitted for a
project in that local jurisdiction and to provide reasonable opportunity for comment of. the
project. This letter serves as notification to you that the following application has been filed
with the Iowa Finance Authority under the Affordable Housing Tax Credit Program,
. Comments are not required by the local jurisdiction, this is merely a required notice to the
jurisdiction. Any. comments must be submitted in writing to the address shown below.
include the Project Number on any correspondence.
project Number: 03-35
Project Name: Kennedy Point
Project City: Dubuque
Comments concerning these projects should be addressed to:
Low-Income Housing Tax Credit Program
Iowa Finance Authority
100 E. Grand Avenue, Suite 250
Des Moines, IA 50309
The Authority should receive any comments concerning these projects by 4:30 p.m.,
December 13, 2002 for consideration prior to any action taken by the Authority on those
projects that ranked high enough in the review process to receive a reservation of LOw-Income
Housing Tax Credit.
If you have any questions, please feel free to contact our office.
Main Office
Section 8 Office
100 E. Grand Ave., Suite 250
500 S.W. 7th St., Suite 104
Des Moines, IA 50309 515-242-4990.
Des Moines, IA 50309 515-242-0259
800-432-7230
877-428-0634
515-242-4864 t~
515-242-0219 tty
515-2424957 fax
515-242:02t7 fax