Purchase of Property_1925 Washington StreetTO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Purchase of Property at 1925 Washington Street
DATE: October 12, 2009
Housing and Community Development Department Director David Harris recommends
City Council approval to purchase a foreclosed home located at 1925 Washington
Street for a purchase price of $68,001.07.
The home was vacated in average condition and will need some improvements. 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.
Mi 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 Dubuque
DUB E "''~
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Masterpiece on the Mississippi
2007
TO: Micha n Milligen, City Manager
FROM: David s Housin and Communit Develo ment De artment
9 Y p p
SUBJECT: Purchase of Property at 1925 Washington Street
DATE: 12 October 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 1925
Washington Street.
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 second proposed to be acquired under this program.
DB&T's mortgage is $68 001.07; 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 $16 068. The City's loans are
assigned to the new buyer at sale, as a package of secondary mortgages. Total
indebtedness on the property is $84 069.07. Appraised value of the home was $77 000
in 2007. 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 1925 Washington Street. The home was vacated in average condition
and will need some improvements. The Housing Department has received indications
of interest in purchase from other neighborhood families. We anticipate a resale without
difficulty.
RESOLUTION NO. 415-09
A RESOLUTION APPROVING THE ACQUISITION OF REAL ESTATE
LOCATED AT 1925 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
~IHEREAS, the property at 1925 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, BE IT RES®LVE® Y °f FIE CITY C®UNCIL ®F THE CITY
®F ®IJtJQIJE, I®11VA:
Section 1. That the City of Dubuque hereby approves the acquisition of the
following legally-described property:
Lot 6 of Mineral Lot 100 in the City of Dubuque, County of Dubuque, Iowa,
according to the recorded plat thereof,
at the cost of Sixty-eight Thousand, one dollar and seven cents ($68 001.07)
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® this
Attest:
Jeanne Schneider, CMC, City Clerk
19t" day of Octobe ~~009.
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Roy ,~; uol, Mayor
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