Purchase of Property_1699 Washington StreetTHE CITY OF Dubuque
a~aam
DUB E
1 i
Masterpiece on the Mississippi
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Purchase of Property at 1699 Washington Street
DATE: September 29, 2009
Housing and Community Development Department Director David Harris recommends
City Council approval to purchase a foreclosed home located at 1699 Washington
Street for a purchase price of $35,220.
This home was targeted for purchase in 2005, having burned and been left abandoned
for many months previously. At the request of the Housing Department, Dubuque Bank
and Trust, acting through its subsidiary development corporation, acquired it in February
2006. The property was gutted and thoroughly rehabilitated and sold to a first-time
buyer family in July 2007. Subsequently the buyer family moved from Dubuque and let
the property go into mortgage default.
The home was vacated in good condition and the Housing Department has received
indications of interest in purchase from other neighborhood families.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
"~.._-~.
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David Harris, Housing and Community Development Department Director
THE CITY OF
DUB E
Masterpiece an the Mississippi
TO: Michael Van Milligen, City Manager
Dubuque
~~~
~ -
2007
FROM: David Harris, Housing and Community Development Department
SUBJECT: Purchase of Property at 1699 Washington Street
DATE: 25 September 09
Introduction
The purpose of this memorandum is to request the City Council's approval of the
attached resolution, authorizing purchase of a foreclosed home located at 1699
Washington Street.
Background
This home was targeted for purchase in 2005, having burned and been left abandoned
for many months previously. At the request of the Housing Department, Dubuque Bank
and Trust, acting through its subsidiary development corporation, acquired it in February
06. The property was gutted and thoroughly rehabilitated and sold to a first-time buyer
family in July 07. Subsequently, however, the buyer family moved from Dubuque and
let the property go into mortgage default.
Discussion
The Housing Department received a $444 000 Neighborhood Stabilization Program
(NSP) grant from IDED this year, to be used for purchase of vacant and/or foreclosed
properties. These will be rehabilitated and re-sold to income-qualifying families. The
subject home is the first proposed to be acquired under this program.
DB&T's mortgage is $35 220; the City's program of forgivable, deferred and low-interest
purchase and rehab financing on the home -offered as an incentive to buyers of
properties in the Washington Neighborhood -totals approximately $68 000. The City's
loans are assigned to the new buyer at sale, as a package of secondary mortgages.
Total indebtedness on the property is $103 200. Appraised value of the home is
$102 000. Any loan loss at sale will be recouped from the NSP grant.
Action Step
The action requested of the City Council is to approve purchase of this single family
home, located at 1699 Washington Street. The home was vacated in good condition
and the Housing Department has received indications of interest in purchase from other
neighborhood families. We anticipate a resale without difficulty.
RESOLUTION NO. 384-09
A RESOLUTION APPROVING THE ACQUISTION OF REAL ESTATE
LOCATED AT 1699 WASHINGTON STREET, IN THE CITY OF DUBUQUE
WHEREAS, certain properties have been targeted for acquisition, rehabilitation
and resale in the Washington Neighborhood as part of the Revitalize Dubuque:
Washington Initiative; and
WHEREAS, the property at 1699 Washington Street, previously jointly-financed
through loans from Dubuque Bank & Trust, and the City of Dubuque, has been
foreclosed; and
WHEREAS, an essential part of the revitalization strategy for the neighborhood is
to quickly address vacant properties, deter speculation and absentee ownership, and
promote homeownership.
N®W, THEREF®RE, E IT RES®LVE® BY T'HE CITY C®UIVCIL ®F `THE CITY
®F ®UBUUE, I®WA:
Section 1. That the City of Dubuque hereby approves the acquisition of the
following legally-described property:
Lot Two (2) of Lot Eighty-Six (86) in East Dubuque Addition in the City of
Dubuque, County of Dubuque, Iowa, according to the recorded plat thereof,
at the cost of Thirty-Five Thousand Two Hundred-Twenty dollars ($35 220.)
Section 2. That the City of Dubuque is hereby authorized to accept a Quit Claim
deed from the owner, conveying the owner's interest to the City of Dubuque, Iowa, for
the herein described-real estate.
Section 3. That the City Clerk be and she is hereby authorized and directed to
cause said Quit Claim Deed to be recorded in the office of the Dubuque County
Recorder, together with certified copy of the Resolution.
Section 4. That the City Clerk be and she is hereby directed to forward a copy of
this Resolution to the Dubuque County Assessor and the Dubuque County Auditor.
PASSE®, APPR®VE® AN® A®®PTE® this5tn day of October~00~.
a ~.
Attest: Roy D i~ol, Mayor
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Leanne Schneider, CMC, City Clerk