Housing Tax Cr Gronen Up Main SMEMORANDUM
December 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 Gronen
Properties
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.
Gronen Properties has made application for tax credits for a 30-unit project located in
four buildings in the Upper Main area. The majority of these units have remained
vacant for ten or more years. In addition, the planned historic rehabilitation will restore
13 storefronts on the street level of these buildings. Total project cost is projected at
approximately $5 million.
Housing and Community Development Department Director David Harris recommends
City Council authorization to support the application for equity financing assistance for
the Gronen Upper Main Revitalization Project.
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 Directo~
CITY OF DUBUQUE, IOWA
MEMORANDUM
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 Gronen Properties
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 currant funding cycle, Gronen Properties has made application for tax
credits, for a 30-unit project located in four buildings in the Upper Main area. The
majority of these units have remained vacant for ten or more years. In addition,
the planned historic rehabilitation will restore 13 storefronts on the street level of
these buildings. Total project cost is projected at approximately $5 million.
Action Step
The action requested of the City Council is to authorize the Mayor's execution of
the attached resolution, supporting the application for equityfinancing assistance
for the Gronen Upper Main Revitalization Project.
RESOLUTION NO. 640-02
RESOLUTION AUTHORIZING THE CITY COUNCIL TO ENDORSE THE
GRONEN PROPERTIES' APPLICATION FOR FEDERAL ASSISTANCE
FOR A RENTAL HOUSING REHABILITATION PROJECT ON UPPER
MAIN STREET
Whereas, the federal government, through Section 42 of the Internal
Revenue Code, offer incentives for rehabilitation of affordable rental housing
which is made available to Iow- and moderate-income households; and
Whereas, Gronen Properties has submitted an application for affordable
housing tax credits in connection with a proposed project to rehabilitate 30 rental
units, located at 1042, 1066, 1069, 1086 and 1091 Main Street; and at 248 West
11th Street 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 Gmnen Properties for tax credits to the Iowa Finance ^uthority, for the
intended project located on Main Street.
Section 2. The City Manager is hereby authorized and directed to forward
this resolution to the Finance Authority.
Passed, approved and adopted this 16th day of December, 2002.
Terrance M. Duggan, Mayor
Attest:
Karen M.' Chesterman, .Deputy City Clerk
Iowa Finance Authority
INVESTING IN HONE AN 3 CO k~ M O NiT¥
2'norms J. Wtlsack,
Governor
Sally J. Pederson,
Lt Governor
Michael L. Tramontirm,
Executive Director
December 2, 2003
Honorable Terrance Duggan
Mayor, City of Dubuque
50 W. 13th Street
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: 03-20
Project Name: Upper Main Revitalization Project
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.
Tim Waddell
Tax Credit Manager
Main Office 100 E. Grand Ave., Suite 250
Secti0n 8 Office 500 S.W. 7th St., Suite 104
Des Moines, IA 50309 515-2424990
Des Moines, IA 50309 515-242-0259
800-432-7230 515-242-4864 try 515-2424957 flax
877-428-0634 515.242-0219 try 515-242-0217 fax