Step by Step IDED AuditTHE CITY OF
DUB E
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Step by Step - IDED Audit
DATE: July 27, 2009
Dubuque
An-An~ica Cltlt
./•~
2007
Housing & Community Development Director David Harris has received the audit report
from the Iowa Department of Economic Development for the Step by Step Project giving
the City high marks for program compliance and performance.
Mi ael C. Van Milligen
MCVM:Iw
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David Harris, Housing & Community Development Director
THE CITY OF Dubuque
DUB E ""~'~'~~~"
1 1
Masterpiece on the Mississippi
2007
TO: Joleen Patt ~~ n; Rehab Programs Supervisor
FROM: David`lrris
SUBJECT: Step by Step -IDED audit
DATE: 24 July 09
The attached audit report, received from the Iowa Dept of Economic Development
(IDED) gives this project high marks for program compliance and performance. This
was a very difficult project to put together; you'll remember we initially submitted a
request to IDED for HOME funds in 2005. It took four years to bring this to completion.
You and your staff are to be congratulated for this accomplishment, as is Kevin and the
lead paint program. Congratulations!
cc:
Kevin Hirsch, Lead Program Supervisor
Bob Boge, Inspections Programs Supervisor
Janet Walker, Assisted Housing Program Supervisor
June 30, 2009
The Honorable Roy D. Buol, Mayor
City of Dubuque
350 West 6th Street, Suite 312
Dubuque, IA 52001
SUBJECT: Agreement Number 06-HM-198-29 (City of Dubuque)
Dear Mayor Buol:
This letter is a follow-upon the monitoring and site visit made May 13, 2009 at the project
(Step-by-Step) in Dubuque. I appreciate all the time and effort committed by David Harris
and Jolene Patterson and thank them for making my visit so productive.
The purpose of the visit was to review the status of the project, examine the records
associated with the use of HOME funds provided by IDED and to assure that those funds
were used in accordance with IDED and federal rules. As a result of the visit, the below
listed comments and observations are offered for your consideration.
GENERAL
The visit on May 13, 2009 involved a general review of the applicable HOME
Program requirements as documented among the projectfiles and as observed at the site
and newly completed building. The project is a very attractive rehabilitation of an existing
apartment building with unique amenities for persons with disabilities. The City of Dubuque
advanced IDED funds to Step-by-Step, Inc., acommunity-based non-profit corporation,
which developed and will own and operate the project. As of the date of my visit, the
project was completed. There have been two amendments to the IDED contract. Each
were for time extensions to December 31, 2008 and April 30, 2009 respectively.
PROGRAM PROGRESS
Activity 29: Acquisition with Rehab (Rental) greater than $40,000.
At the time of my visit, construction work at the project was complete and units were
available for occupancy. No households had been approved for occupancy.
Chester J. Culver,Govemor IOWA DEPARTMENT OF ECONOMIC DEVELOPMENT PattyJudge,LieutenantGovemor
Mike Tramontina, Director • 200 East Grand Avenue, Des Moines, Iowa USA 50309 • Phone: 515.2424700 • Fax 515.2424809 a wannr.iowalifechanging.com
NATIONAL OBJECTIVE OR PROGRAM GOALS
The City of Dubuque received a HOME award of $350,000 (a grant) from the
Housing Fund program year 2006. The project involved the rehabilitation of seven (7)
apartments at 759 Bluff Street in Dubuque, Iowa. All seven are one (1) bedroom units and
all are HOME assisted. Five of the units will be affordable to households at or below 60%
AMI and two units will be affordable at or below 50% AMI. The IDED Housing Fund
assistance was provided to the City of Dubuque who, in turn, provided it to Step-by-Step,
Inc. acommunity-based non-profit corporation and originally proposed for combination with
other financing included investment via State and Federal Historic Tax Credit Program
($537,701), State of Iowa Enterprise Zone Program ($121,684), Federal Home Loan Bank
Affordable Housing Program ($149,975), City of Dubuque ($264,600), Iowa Finance
Authority State Housing Trust Fund ($105,636), Deferred Developer Fee ($160,000) and a
Woodward Foundation Grant of ($5,000).
AREAS OF SATISFACTORY COMPLAINCE
Environmental
The environmental assessment, notices and files were properly completed as
required and were properly documented in project files. SHPO provided its clearance and
IDED released funds as of July 28, 2006. No negative comments were received and no
project activities were occurring in a floodplain.
Financial Management
At the time of the site visit, all of the $350,000 of the IDED HOME funds had been
requested, released and expended. It appears that HOME funds have been managed
properly and in accordance with IDED rules and the HOME Management Guide. A review
of documents associated with the expenditure of IDED HOME and other funds
demonstrated both adequate financial controls and the HOME/IDED program compliance
were being achieved. All eligible work was inspected, approved and accepted prior to the
authorization of payments to contractors. It was noted that there has been clear separation
of account duties, the approval of expenditures and the payment of claims. Please note
that financial records must be retained for a minimum of five years.
Labor Standards
Labor Standards did not apply to the project.
Procurement and Contract Management
The City of Dubuque does have an established procurement policy and a written
Code on Conduct. The IDED recipient, the City of Dubuque, provided the HOME
assistance to Step-by-Step, Inc. which is afor-profit entity.
Civil Rights and Fair Housinq
An affirmative marketing plan is in place and is followed by the City of Dubuque. It
appeared that Section 109 and Title VI requirements are being met. The project tenant
files were not available at the time of my visit but will record demographics of the
households benefitting from this project.
MBE/WBE -Section 3
Records and file documents available during the visit did not include information
regarding the involvement of MBE and WBE business. However, the project used inmates
for the Elm Street Correctional Facility which provided training. The time invested was a
donation of hours for community service. A final Section 3 report should be completed at
project closeout and submitted to IDED with other final documents.
Lead-Based Paint Regulations
Lead based paint was totally abated using a Lead Program Grant from the City of
Dubuque.
Affordability
No tenant files were available for review. These will be provided in the near future.
ISSUES TO BE RESOLVED
Provide a copy of one tenant file when rent-up begins.
Otherwise, my examination of the records associated with the project demonstrated
compliance with the requirements, laws and rules of the HOME Program and those
required by IDED. I enjoyed the opportunityto review this project. The projectwill become
a beautiful, very highlyfunctioning home to seven households for persons with disabilities.
If you have questions, or if I may offer any assistance, please feel free to contact me by
phone at (515) 725-3082 or by a-mail at Julie.Lunn@iowalifechanging.com.
Sincerely,
Julie M. Lunn
Project Manager
cc: David Harris, City of Dubuque
File (JL)