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Dubuque's True North Corporation Agreement Copyrighted April 2, 2018 City of Dubuque Action Items # 1. ITEM TITLE: Dubuque's True North Corporation Agreement SUMMARY: City Manager recommending approval of an agreement between the City of Dubuque and Dubuque's True North Corporation for the acquisition, rehabilitation and resale of 50 residential units located in the area defined as high- poverty census tracts within the Dubuque City limits and in such extensions to that area as mutually agreed by the parties. SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Approve ATTACHMENTS: Description Type True North Agreement-NNM Memo City Manager Memo True North Agreement Supporting Documentation THE CTTY OF Dubuque �" ui���eNe�ary DUB E 'il��i;' Masterpiece on the Mississippi Z°°' Z°'Z 2013 2017 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Agreement with Dubuque's True North Corporation DATE: March 21 , 2018 I respecffully recommend Mayor and City Council approval of an agreement between the City of Dubuque and Dubuque's True North Corporation for the acquisition, rehabilitation and resale of 50 residential units located in the area defined as high poverty census tracts within the Dubuque City limits and in such extensions to that area as mutually agreed by the parties. True North agrees to provide resources directly or through its partners to finance these projects above the committed City resources provided in this Agreement. True North agrees to actively identify and seek other funding sources and grants in furtherance of the goals of this Agreement. The City agrees to invest with True North $1,500,000 for the purpose of the Project in Dubuque's True North as part of a comprehensive neighborhood revitalization initiative. These funds were approved through the recent City budget process. The City funding shall be in the form of payments towards the acquisition and rehabilitation costs of each unit so that True North does not experience a loss. The City funding will be provided to True North over seven years and is subject to inclusion in the adopted City budget over the term of the Agreement. The City funding shall be in the form of payments towards acquisition and rehabilitation costs of each unit so that True North does not experience a loss. True North may begin accessing City funding upon acquisition of the properties. Funding requests to the City shall be in writing and include supporting documentation of the acquisition. The City shall pay True North ten percent (10%) or ten thousand dollars ($10,000) whichever is less per project at the time each property is sold for marketing, real estate commission fees and carrying costs. The number of homes completed per year is dependent on resources available from the City Housing Tax Increment Financing Districts and may be adjusted on an annual basis with six months' notice before the beginning of each fiscal year. Upon the sale of residential units completed for the Project under this Agreement, the sale proceeds received will be distributed to True North for the satisfaction of any related True North loans or obligations and to be used for the purchase, rehabilitation, and resale of additional residential units, used to create a contingency reserve or such other uses as approved by the True North Board of Directors and consistent with its mission. In the event a residential unit is anticipated to require more than $30,000 in City funds for acquisition and rehabilitation True North agrees to consult with the City on the proper disposition for the residential unit. Proper disposition shall be determined by the City and may include, but is not limited to, 1) City acquisition of residential unit from True North 2) Deconstruction of the residential unit and construction of a new residential unit 3) Deconstruction of the residential unit and sale of the lot for a new single-family residence to be built with a 21-year covenant 4) Deconstruction of the residential unit and re-platting of the lot for sale to abutting property owner(s) with a 21-year homeownership restrictive covenant, unless the covenant is waived by the City When Housing Tax Increment Financing funds are used on the acquisition, rehabilitation or sale of a residential unit there will be income restrictions with respect to buyers purchasing residential units rehabilitated through this Agreement requiring the benefit accrue to those that are at 80°k of area median income and below at the time of purchase. The properties will only be sold for homeownership with a recorded 21-year covenant requiring the property cannot become rental property during that 21-year period. The City agrees to loan income qualifying buyers 20°k for a down payment (not to exceed $25,000) as a second mortgage with a repayment schedule of zero payments at zero interest, with the balance due upon the borrower or borrower's heirs, successors, and assigns selling the property. I concur with the recommendation and respectfully request Mayor and City Council approval. 1�.1�t��'�+�1 �Gv►, /����t�ts�. Mic ael C. Van Milligen '� � 2 MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Teri Goodmann, Assistant City Manager Cori Burbach, Assistant City Manager 3 AGREEMENT BETWEEN THE CITY OF DUBUQUE AND DUBUQUE'S TRUE NORTH CORPORATION Effective Date: July 1, 2018 This Agreement is made by and between the City of Dubuque, Iowa ("City") and Dubuque's True North Corporation ("TN") and shall be effective beginning on the above effective date and remain in effect until June 30, 2025. This Agreement outlines the terms and conditions under which the City shall invest funding with TN to assist with the acquisition, rehabilitation and resale of residential units located in the area defined as high poverty census tracts within the Dubuque City limits and as shown in Exhibit A and in such extensions to that area as mutually agreed by the Parties. In consideration of the mutual representations and obligations hereunder, the City and TN agree as follows: Section 1. Funding TN agrees to provide resources directly or through its partners to finance these projects above the committed City resources provided in this Agreement. TN agrees to actively identify and seek other funding sources and grants in furtherance of the goals of this Agreement. The City agrees to invest with TN $1,500,000 for the purpose of the Project in Dubuque's True North as part of a comprehensive neighborhood revitalization initiative. The City funding shall be in the form of payments towards the acquisition and rehabilitation costs of each unit so that TN does not experience a loss. The City funding will be provided to TN over seven years as outlined in Exhibit B and is subject to inclusion in the adopted City budget over the term of the Agreement. TN may begin accessing City funding upon acquisition of the properties. Funding requests to the City shall be in writing and include supporting documentation of the acquisition. The City shall pay TN ten percent (10%) or ten thousand dollars ($10,000) whichever is less, per project, of the marketing, real estate commission fees and carrying costs at the time each property is sold for marketing, real estate commission fees and carrying costs. The number of homes completed per year is dependent on resources available from the City Housing Tax Increment Financing Districts and may be adjusted on an annual basis with six months' notice before the beginning of each fiscal year. -1- F:\USERS\Cbrumwel\Housing\True North Agreement_Final_3-28-18.docx Upon the sale of residential units completed for the Project under this Agreement, the sale proceeds received will be distributed to TN for the satisfaction of any related TN loans or obligations and to be used for the purchase, rehabilitation, and resale of additional residential units, used to create a contingency reserve or such other uses as approved by the TN Board of Directors and consistent with its mission. Section 2. Scope of Work TN Obligations: • Conditioned upon receipt of City funding TN agrees to acquire, rehabilitate and resell up to fifty (50) total residential units during the term of this Agreement (hereinafter the "Minimum Improvements"). The Minimum Improvements will be constructed in accordance with the City of Dubuque Rehabilitations Standards attached as Exhibit C unless an exception is approved, in writing, by the City of Dubuque Housing & Community Development Director or the Housing & Community Development Director's designee. • For purposes of this Agreement a residential unit can be a single-family structure or multi -unit structure as long as the intent is for the resale of the housing unit(s). Each unit within a multi -unit structure, such as a duplex, shall constitute a residential unit. Homes purchased by TN before the effective date of the Agreement are considered part of the Project and therefore are included toward the residential unit requirement under the Agreement. • Acquisition of up to fifty (50) total residential units shall be completed by the end date of this Agreement. The Minimum Improvements will be completed in accordance with all federal, state, and local laws and be finished within twelve (12) months after the expiration of this Agreement. • In the event a residential unit is anticipated to require more than $30,000 in City funds for acquisition and rehabilitation TN agrees to consult with the City on the proper disposition for the residential unit. Proper disposition shall be determined by the City and may include, but is not limited to, 1) City acquisition of residential unit from TN 2) Deconstruction of the residential unit and construction of a new residential unit 3) Deconstruction of the residential unit and sale of the lot for a new single- family residence to be built with a 21 -year covenant. 4) Deconstruction of the residential unit and re -platting of the lot for sale to abutting property owner(s) with a 21 -year homeownership restrictive covenant, unless the covenant is waived by the City • TN agrees to work with City and City agrees to work with TN to develop the minimum improvements documents for rehabilitation including scope of work, -2- F:\USERS\Cbrumwel\Housing\True North Agreement_Final_3-28-18.docx drawings/specifications, bid packages, and contracts for the completion of the minimum improvements to the residential units for units one (1) through five (5). • TN agrees, for units six (6) through fifty (50) to develop the minimum improvements documents for rehabilitation including scope of work, drawings/specifications, bid packages, and contracts for the completion of the minimum improvements to the residential units consistent with the City of Dubuque Rehabilitation Standards attached as Exhibit C. • TN agrees to maintain the properties while they are the owner during the course of the Project including, but not limited to lawn care, snow removal, maintenance and making sure property remains clean during construction. • TN will maintain insurance in accordance with the provisions of this Agreement and as outlined in Section 4. • TN agrees to maintain accurate records that include detailed costs associated with the Project and Minimum Improvements as well as proceeds received from the sale of each residential unit. In addition, all cost and sales records will accompany all requests to draw from City funds. • TN will determine the selling price of residential units. Factors determining the selling price may include costs incurred and the appraised value of the rehabilitated residential units. • When Housing Tax Increment Financing funds are used on the acquisition, rehabilitation or sale of a residential unit there will be income restrictions with respect to buyers purchasing residential units rehabilitated through this Agreement requiring the benefit accrue to those that are at 80% of area median income and below at the time of purchase. • The properties will only be sold for homeownership with a recorded 21 -year covenant, Exhibit D, requiring the property cannot become rental property during that 21 -year period. City Obligations: • As requested by TN, assist TN with initial inspection of residential units being considered for purchase by TN as part of the Project. • For the first five (5) properties the City will support, assist, and train TN employees, agents, and contractors in developing the minimum improvements documents for rehabilitation including scope of work, drawings/specifications, bid packages, and contracts for the use and distribution by TN. -3- F:\USERS\Cbrumwel\Housing\True North Agreement_Final_3-28-18.docx • Assist TN with making certain Contractors keep property cleaned up through construction. • Rehabilitation Inspector and Supervisor will perform final inspections with TN to assure satisfactory work completed by the Contractor(s). • The City agrees to loan income qualifying buyers 20% of the purchase price for a down payment (not to exceed $25,000) as a second mortgage with a repayment schedule of zero payments at zero interest, with the balance due upon the borrower or borrower's heirs, successors, and assigns selling the property. Section 3. Indemnification TN shall indemnify, defend and hold harmless the City, its governing body, departments, officials, employees and agents from and against all liability, claims, actions, damages, losses and expenses arising out of the City's work in performing its obligations under this Agreement. Section 4. Insurance 1. Property Insurance. a. TN must provide and maintain or cause to be maintained at all times during the Project at its sole cost and expense builder's risk insurance, written on a Completed Value Form, in an amount equal to one hundred percent (100%) of the buildings replacement values, including improvements, when construction is completed. Coverage shall include the "special perils" form and TN shall furnish City with proof of insurance in the form of a certificate of insurance. b. Upon completion of the Project and up to the Termination Date, TN shall maintain, or cause to be maintained, at its cost and expense, property insurance against loss and/or damage to the buildings (including the Minimum Improvements) under an insurance policy written with the "special perils" form and in an amount not less than the full insurable replacement value of the buildings (including the Minimum Improvements). TN shall furnish to City proof of insurance in the form of a certificate of insurance. c. The term "replacement value" shall mean the actual replacement cost of the building with Minimum Improvements (excluding foundation and excavation costs and costs of underground flues, pipes, drains and other uninsurable items) and equipment, and shall be reasonably determined from time to time at the request of City, but not more frequently than once every three (3) years. -4- F:\USERS\Cbrumwel\Housing\True North Agreement_Final_3-28-18.docx d. TN shall notify City immediately in the case of damage exceeding $50,000 in amount to, or destruction of, the Minimum Improvements or any portion thereof resulting from fire or other casualty. Net proceeds of any such insurance (Net Proceeds), shall be paid directly to TN as its interests may appear, and TN shall forthwith repair, reconstruct and restore the Minimum Improvements to substantially the same or an improved condition or value as they existed prior to the event causing such damage and, to the extent necessary to accomplish such repair, reconstruction and restoration, TN shall apply the Net Proceeds of any insurance relating to such damage received by TN to the payment or reimbursement of the costs thereof, subject, however, to the terms of any mortgage encumbering title to the Property (as its interests may appear). TN shall complete the repair, reconstruction and restoration of Minimum Improvements whether or not the Net Proceeds of insurance received by TN for such purposes are sufficient. 2. Liability Insurance. TN must maintain a commercial general liability insurance policy with coverage and limits not less than the following: General Aggregate Limit Products -Completed Operations Aggregate Limit Personal and Advertising Injury Limit Each Occurrence Fire Damage Limit (any one occurrence) Medical Payments Section 5. Amendments $2,000,000 $1,000,000 $1,000,000 $1,000,000 $50,000 $5,000 This Agreement may be modified or amended only in writing by a duly authorized representative and executed by both TN and City. It may not be amended or modified by oral agreement or understanding between the parties unless the same shall be in writing, duly approved, and executed by both parties. Section 6. Parties Bound The covenants and conditions herein contained shall apply to and bind the legal representatives, successors, and assigns of all of the parties hereto, and all of the parties hereto shall be jointly and severally liable hereunder. Section 7. Notices All notices or demands to be given, made, or sent, or which may be given, made, or sent by one party to the other pursuant to this Agreement shall be deemed to have been given, made, or sent when made in writing, and deposited in the U.S. mail, certified and postage prepaid, addressed as follows: -5- F:\USERS\Cbrumwel\Housing\True North Agreement_Final_3-28-18.docx a. To City: City of Dubuque Housing & Community Development Attn: Alvin Nash, Housing Director 350 West 6th Street, Suite 312 Dubuque, IA 52003 b. To TN: Dubuque's True North Corporation Schmid Innovation Center Attn: Board Chair 900 Jackson Street, Suite 109 Dubuque, IA 52001 The address to which any notice, demand, or other writing may be given, made, or sent by any party as above provided may be changed by written notice given by such party as above provided. Section 8. Termination Either party may terminate the Agreement for any reason by providing sixty (60) days written notice. However, termination does not preclude TN's obligation to repay the City for its investment up to the date of termination for homes not completed under the Agreement, nor the City's obligation to reimburse TN for work completed through the date of termination by the City. Additionally, termination does not preclude the parties from meeting any other obligations under the Agreement for work started prior to the date of termination which must be completed. Section 9. Governing Law This Agreement will be governed by and construed in accordance with the laws of the State of Iowa. Section 10. Severability If any term, covenant, or condition of this Agreement is held by a court of competent jurisdiction to be invalid, or unenforceable, the rest of the Agreement will remain in full force and effect and will in no way be affected, impaired, or invalidated, unless such enforcement will frustrate the purpose of this Agreement. Section 11. Force Majeure In the event that either party hereto will be delayed or hindered in or prevented from the performance of any act required hereunder by reason of strikes, lockouts, labor troubles, unavailability or excessive price of fuel, power failure, riots, insurrection, war, terrorist activities, chemical explosions, hazardous conditions, fire, weather or acts of God, or by -6- F:\USERS\Cbrumwel\Housing\True North Agreement_Final_3-28-18.docx delayed in performing work or doing acts required under the terms of this Agreement, then performance of such act will be excused for the period of the delay and the period for the performance of any such act will be extended for a period equivalent to the period of such delay. Section 12. Paragraph Headings The titles to the paragraphs of this Agreement are solely for the convenience of the parties and will not be used to explain, modify, simplify, or aid in the interpretation of the provisions of this Agreement. Section 13. Entire Agreement This Agreement constitutes the entire agreement between the parties, and any prior understanding or representation of any kind preceding the date of this Agreement shall not be binding on either party except to the extent incorporated in this Agreement. IN WITNESS WHEREOF, the parties have executed these presents the day and year first above written. City of Dub4ue, Iowa Dubuque's Trl a North Corporation By: • ' -? By: Name: Roy D . Buol Name: WEI- t -6e6/ Title: Mayor Title: Chairperson Exhibit A Map Exhibit B Schedule of Estimated City Funding Exhibit C City of Dubuque Rehabilitation Standards Exhibit D 21 Year Covenant -7- F:\USERS\Cbrumwel\Housing\True North Agreement_Final_3-12-18.docx EXHIBIT A -8- F:\USERS\Cbrumwel\Housing\True North Agreement_Final_3-12-18.docx EXHIBIT B DEPARTMENT: 61 - Housing & Community Development STATE PROGRAM: 5C - Community & Economic Development PROJECT TITLE: True North Neighborhood Reinvestment Partnership YEAR FIRST FY 2019 SUBMITTED: ACTIVITY NO: 360 TOTAL PROJECT COST $1,500,000 2017 2018 EXPENSE BUDGET PROJECT BUDGET 2019 2020 2021 2022 2023 2024 A. EXPENDITURE ITEMS Construction $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ — $ — TOTAL $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 B. PROJECT FINANCING Housing TIF $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 S — $ — TOTAL $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 $ 300,000 PROJECT DESCRIPTION/JUSTIFICATION The Comprehensive Housing Activities for Neighborhood Growth and Enrichment, or C.H.A.N.G.E. Initiative is a holistic approach to sustainability that addresses ecological, environmental integrity, economic prosperity, and social/cultural vibrancy. C.H.A.N.G.E. is a campaign of neighborhood revitalization and an extension of sustainability to specifically address marginal properties, affordable housing and home -ownership. Under the umbrella of C.H.A.N.G.E., this initiative provides funding towards the City's strategy of revitalization for the downtown neighborhoods and centers on increasing home -ownership. The City administers a number of programs of federal- and state -provided financial assistance for low -moderate income households (earning less than 80% of area median income) to achieve this. To achieve the goal of promoting a broader income mix of downtown homeowners, programs are needed to assist households eaming more than 80% of median income, who earn too much to qualify for current financial subsidies. This Program also provides for acquisition activities where the City may purchase abandoned, derelict buildings and houses; or it may purchase housing subject to mortgage foreclosure actions in order to secure City funds previously loaned as part of rehabilitation activities or other housing to accomplish the goals. Certain improvements will be made to the properties In order to make them marketable for resale. In this manner, neighborhood conditions are improved, dwellings are resold to responsible owners and City dollars are returned to the revolving fund. Beginning in 2008, selective purchases have been made. Certain properties are targeted to be voluntarily acquired, for reason of poor maintenance and the inability or refusal of the owner to make improvements. These are then resold to qualifying owner -occupied households committed to restoration of the home. This is a ten year TIF which requires 38.1% of the income generated to be used for Low and Moderate Income residents any where in the City of Dubuque. The percentage to Low and Moderate Income residents can be higher than the required 38.1%. In FY 2019 the percentage is 63.65%; FY 2020 is 69.37%: FY 2021 is 73.14%; and FY 2022 is 55.38%. All other years are 38.1 %.It is anticipated that True North Development Corporation will acquire, renovate and sell for long-term home ownership 50 residential properties over the next 5-7 years with an estimated $30,000 construction subsidy per property. The City would ensure True North Development Corporation that they would not experience a loss upon sale of the property and through the Assistance for Home Ownership CIP the City would provide $25,000 in down payment assistance to qualified buyers of the rehabilitated property. True North Development Corporation would be seeking private financing and state and federal grants to eliminate the need in the future to generate project losses. RELATIONSHIP TO OTHER PROJECTS This project is related to Assistance for Home Ownership, Bee Branch Watershed HUD Resiliency Rehabilitation, and the Homeowner Rehab Program. -9- F:\USERS\Cbrumwel\Housing\True North Agreement_Final_3-12-18.docx OUTCOME Livable Neighborhoods and Housing: Increase the availability of affordable housing throughout the city, not in concentrated areas of poverty and low income housing FUNDING RESTRICTIONS This project may only be funded by Housing TIF. 2 F:\USERS\Cbrumwel\Housing\True North Agreement_Final_3-12-18.docx -10- THE CITY OF Dui Masterpiece an the Mississippi Dubuque katierclAlklinetta CPI EXHIBIT C EGU*I HOUSING OP'ORiUNIt'Y housing and Community Development Housing Rehabilitation Program 350 W. 6th Street, Suite 312 Dubuque, IA 52001 Office (563) 589-4239 CITY OF DUBUQUE HOUSING REHABILITATION STANDARDS r6 Created 2/18 by: Roger gent, Rehabilitation Programs Inspector and Kris Neyen, Rehabilitation Programs Supervisor. -11- F:\USERS\Cbrumwel\Housing\True North Agreement_Final_3-12-18.docx TABLE OF CONTENTS REHABILITATION STANDARDS 1. GENERAL Materials/Products Workmanship Manufacturers Warranties Qualified Staff, Inspectors, and Contractors 2. SITE WORK Landscaping 3. FOUNDATION Basements and Crawl Spaces, Moisture and Leaks 4. WOOD FRAMING Non -Formaldehyde Manufactured Wood Products Wall framing studs Wood Structural Components: Beams, Columns, Posts, Plywood Termite Treatment 5. EXTERIOR WALLS Exterior Sheathing Wall Insulation, Replacement Windows Exterior Doors Door & Window Sealing Low -Maintenance Vinyl Siding Exterior Trim Exterior Paint, Stain, Varnish Masonry and Veneer Fiber Cement Board Siding Stucco 6. ROOF Roof accessories, Roof Structure, Asphalt Shingles, Roof Sheathing Ice and water protection membrane Flashing Gutters and Downspouts Roof Repairs and Leaks 7. PLUMBING Plumbing Fixtures Water Heaters On Demand Water Heaters, Shower and Tub Drains 8. ELECTRICAL Outlets/Switches GFI Outlets Light Sockets 9. INTERIOR CLIMATE CONTROL/HVAC Furnaces, Thermostats Oil Storage Tanks Air Infiltration and Drafts 10. INTERIOR Interior Doors Kitchen. /Bath Cabinets Counter Tops Laminates Gypsum Wallboard Ceramic Tile Paint, Stain, and Varnish -12- F:\USERS\Cbrumwel\Housing\True North Agreement_Final_3-12-18.docx Non-toxic Paint Strippers Wallpaper and Vinyl Wall Coverings Lath and Plaster Interior Stairs 11. FLOOR FINISHES Subflooring, Carpeting, Wood Flooring Roll Vinyl and Resilient Tile Flooring Hard -surface Flooring 12. MISCELLANEOUS Driveways and Sidewalks Exterior Wood Porches/Decks/Stairs: Concrete Stoops and Steps 13. ENVIRONMENTAL/HAZARDOUS MATERIALS Lead-based Paint Asbestos Radon Others APPENDENCIES: A. List of State and Local Building Codes -13- F:\USERS\Cbrumwel\Housing\True North Agreement_Final_3-12-18.docx INTRODUCTION The following standards are required for all Rehabilitation Projects, unless otherwise noted in the Rehab Scope of Work: AU materials and fixtures used in Rehabilitation shall be of mid -line cost and quality. The Residential Rehabilitation Standards are not intended to reduce or circumvent the requirements of law and current applicable Building Codes/ IPMC code standards. All construction means, and methods shall be performed in compliance with Federal Occupational Safety and Health Agency (OSHA) regulations. Code violations, building & site defects that are health, safety and life threatening are priorities. -14- F:\USERS\Cbrumwel\Housing\True North Agreement_Final_3-12-18.docx RESIDENTIAL REHABILITATION STANDARDS Rehabilitation Standards Include: Federal Minimum Rehabilitation Standards: 24 CFR VIII, 882.109 Housing Quality Standards Written Trade, Manufacturer's Specifications, Standards, Recommendations and Installation Instructions All applicable Federal, State & Local code requirements. GENERAL Materials/Products shall be new, in good condition, and of the grade required by the work write-up or specifications unless otherwise agreed to in writing. Materials damaged in shipment or prior to owner's acceptance shall be replaced at the contractor's expense. Deliver, store and handle products using means and methods that will prevent damage and deterioration from moisture, rain, dirt and other harmful influences including loss and theft. Workmanship shall be in accordance with the trades standards. City Rehab staff shall ensure that the mechanical execution of the rehabilitation work is performed in a manner consistent with principles of quality workmanship, the material manufacturer's installation instructions, and all codes that apply. Manufacturers warranties shall be in addition to the General Contractor warranty and do not relieve the Contractor of stipulated obligations or requirements. All work must be performed, installed in accordance to warranty stipulations, and the requirements for coverage. Iowa Law requires that all Contractors warranty their work for 1 calendar year after the date of completion. Qualified Staff, Inspectors, and Contractors are the responsibility of The City of Dubuque Rehabilitation Staff. The City of Dubuque Rehabilitation Staff shall ensure that all persons involved in a rehabilitation project shall be qualified for their tasks. If the nature of the work requires personnel to be licensed or otherwise certified to perform the work, The City of Dubuque Rehabilitation Staff shall ensure that the personnel meet the requirements. All qualified Rehab Contractors shall be registered with Dunn and Bradstreet, and provide the registration number to Rehab Staff. Qualified Rehab Contractors MAY NOT be listed as under debarment on the SAM.GOV website. 2. EXTERIOR SITE WORK All proposed site work must keep water away from the building foundation. It must promote positive drainage away from the home and any neighboring structures. It must not create erosion, soil contamination or damage to the owner's property or neighboring properties. Any damage to the site or a neighboring site due to the performance of the specified site work must be repaired. Landscaping Plantings, trees, shrubs etc. that are a safety hazard shall be removed. Lawn areas affected by the removal shall be restored. -15- F:\USERS\Cbrumwel\Housing\True North Agreement_Final_3-12-18.docx 3, FOUNDATION Foundations must be stable. Footings shall be concrete, with waterproof concrete foundation walls and slabs, when required by state/local code for new construction, reconstruction and/or repair. Basements and Crawl Spaces Moisture and Leaks The source of water infiltration should be identified and corrected before repairs are completed. Roof water, clogged downspouts, landscape grading, insufficient foundation drainage, poor inadequate design etc. are all common causes of basement and crawl- space moisture. Repairs should improve health & safety in basement and crawl spaces. 4, WOOD FRAMING All existing structural components must be sound/stable and in serviceable condition for the expected useful life of the rehabilitation work to be performed (15 years). Unstable, cracked, leaning, buckling, and/or shifting exterior walls shall be restored as per code and are priorities. All wood studs, foundation posts, sills, girders and plates showing signs of rot, decay, and structural failure must be replaced. There should be no holes, separation, collapsing or severely deteriorating walls or siding materials. Non -Formaldehyde Manufactured Wood Products Due to concerns about post -installation formaldehyde emissions, wood products containing Urea Formaldehyde (UF) resin binders should not be used. Wall framing studs Interior and exterior - shall be installed on 12", 16" or 24" centers, or as required by structural conditions. Wood Structural Components: Beams, Columns, and Posts Check code requirements and use qualified professionals for documents and specifications for repairs, including replacements or adjustments to load bearing components. For major structural damage, a structural analysis must be completed by a licensed and insured structural engineer. Plywood Plywood shall be trademark stamped. Interior Always use interior grade plywood for interior work, as specified by manufacturers. Exterior Always use exterior grade plywood for exterior work as specified by manufacturers. Structural/Construction Always use construction grade plywood for structural work. Construction grade plywood is stamped C -D or CDX. Termite Treatment Infestation shall be eliminated by treating in accordance with the requirements of a certified exterminator. Refer to the Exterminator's warranty for service or further damages after treatment. 5. EXTERIOR WALLS Exterior walls are to comply with all codes that apply. They need to be weather -tight, structurally sound, energy efficient and shall not permit entry of insects, water, snow or wind into the interior. -16- F:\USERS\Cbrumwel\Housing\True North Agreement_Final_3-12-18.docx Exterior Sheathing Sheathing shall be a nail -able wood product, with a minimum thickness of W. Air infiltration barriers, such as building paper, or house wrap designed to protect the wall from water moving past the exterior siding. shall be used at the exterior of the wall sheathing. (See 4 Plywood) Wall Insulation Installation of all insulation shall be performed with the utmost care, with the highest standard of professional workmanship, in strict compliance with manufacturer's specifications and installation instructions. Example: kraft -paper faced insulation shall be stapled as required, covering all gaps and penetrations in the wall cavity. Use plastic vapor barrier when required by code. Replacement Windows Use energy star rated, Low E -glass replacement windows that conform to all Building Code requirements, including those for safety glazing and emergency egress. The window installation and installers must also be as indicated by the manufacturer. Select replacement windows with a 10 -year minimum warranty. When possible, use new construction windows with same rating. Exterior Doors Remove and replace doors and frames that are warped, bowed or otherwise damaged. Manufacturer's warrantee must be a minimum of 5 years. Use energy star labeled door. Thresholds shall be sealed to the subfloor. Sides and tops of doors shall be provided with weather -stripping. All hardware shall be installed with the required screws, bolts, and fasteners as provided by the manufacturer and packaged with the hardware. Select only steel doors for exteriors. Always install exterior storm doors for additional thermal and moisture protection. All new unpainted entry doors must be painted with 2 coats, or to cover, whichever is required to complete the painting in a workmanlike manner. Door & Window Sealing The shim space between the framing for windows or doors (including attic access), rough openings, and the installed doors and windows shall be sealed with non -expanding spray foam sealant, closed cell foam backer rod, spray applied insulation, or other suitable insulations. Cellulose, fiberglass or rock wool batt insulation is not acceptable as an insulation, but can be used as a backing for a sealant (such as caulk). Thresholds for exterior doors shall be sealed to the subfloor. Low -Maintenance Vinyl Siding The City of Dubuque Rehabilitation Department requires use of "triple -3" vinyl siding unless otherwise specified in the scope of work. The City of Dubuque Rehabilitation Department Always uses SHPO (State Historical Preservation Office) guidance on deciding the profile shape of replacement vinyl siding. The System must accommodate positive drainage to exterior for moisture entering the panel system, or condensation within the panel system. Comply with manufacturers written installation instructions. There shall be a 20 Year material and labor warranty from the date of completion. Existing Vinyl Siding Repairs: Always check for hazardous materials. Locate and repair the cause of the siding damage. Repair in accordance with manufacturers standards, Check for warranty coverage. -17- F:\USERS\Cbrumwel\Housing\True North Agreement_Final_3-12-18.docx Exterior Trim Low -maintenance trim materials such as vinyl, cellular PVC, or pre -finished cement boards may be used. All exterior wood trim shall be solid wood free from knots, defects and warping. Exterior Paint, Stain, Varnish Low-VOC (Volatile Organic Compounds) paints, stains and varnishes use water as a carrier instead of petroleum- based solvents. As such, the levels of harmful emissions are lower than solvent -borne surface coatings. These certified coatings also contain no (or very low levels of) heavy metals and formaldehyde. Paint shall be delivered to the site in original containers labeled by the manufacturer, with seals unbroken. If the exterior is stained wood, the finish shall be a solid -body stain, not the transparent or semitransparent type. Exterior Siding: Apply 2 coats of solid -body stain over pre -primed siding. Exterior Trim: Apply lcoat of primer, and 2 coats semi -gloss paint. Masonry and Veneer Repair, repaint, and clean all masonry and stone in compliance with Masonry Trade Standards and Brick Industry Association recommendations. Fiber Cement Board Siding For existing Fiber Cement siding, test for asbestos before repairs. (See appendix G Asbestos) Locate and repair cause of siding damage. Repair in accordance with manufacturer's instructions. Check for warranty coverage. Warranties can be up to 50 years. The City of Dubuque Rehabilitation Department Always uses SHPO (State Historical Preservation Office) guidance on deciding the profile shape of replacement siding. Stucco For Historic homes, use SHPO guidelines for repair. Locate and repair the cause of stucco damage. Use an experienced professional stucco repair person. Please note that there is Portland cement, as well as lime -based stucco. Repairs should be in accordance with stucco type. 6, ROOF - DO NOT USE metal roofing Problems such as evidence of severe deterioration (e.g. curled/cracked asphalt shingles, severely corroded metal or moss growth), missing, loose, ineffective, or inappropriate materials shall be corrected. Provide materials complying with governing regulations. Replace all roofing that is older than 15 years of age. Comply with published recommendations of shingle manufacturer details and Recommendations of NRCA Roofing Manual for installation of underlayment and shingles, using the correct number of nails and courses of shingles, in accordance with manufacturer's standards. Roof accessories Including valley flashing and flashing against walls, chimneys, stacks and pipes shall be watertight, durable, and free from excessive wear, obvious defects in materials, and workmanship. -18- F:\USERS\Cbrumwel\Housing\True North Agreement_Final_3-12-18.docx Roof Structure (see #4 Wood Framing) Asphalt Shingles Provide asphalt fiberglass shingles on sloped roofs Install Architectural, multi -tab, mineral surfaced, self-sealing, fiberglass asphalt shingles with a 30 -year warranty. Install according to manufacturer's written instructions. If there are 2 or more layers of shingles, remove all before roofing again. Roof Sheathing (see #4 Structural Plywood) As per manufacturers specifications. Ice and water protection membrane Where roof slopes are less than a 4/12 pitch, and at all valleys, roof penetrations, eaves, intersections of walls and roofs, hips, and wherever else required by job conditions as per manufacturers recommendations. Flashing Provide pre -finished aluminum drip edge flashing at roof eaves and rakes, roof to Chimney/walVskylight connections, and other horizontal roof material transitions, fastened with appropriate nails. Gutters and Downspouts Rain from the roof gutter system shall be directed via downspouts in a way that water is discharged away from the foundation. The minimum thickness for aluminum gutters shall be 0.032", and 0.027" for aluminum flashing material. Roof Repairs and Leaks Check all roof affected components including eaves and roof penetrations. Repairs should match existing roof surfaces and finishes. Locate and repair any interior damages caused by leaking roofs. 7. PLUMBING All service, distribution, return pipes, connectors, and accessories for fixtures, and heating systems shall function properly, shall not leak, and shall be properly insulated. Systems including sewers shall operate free of fouling and clogging, and not have cross connections, or back siphoning between fixtures. Waste lines shall be tied -in to an approved sewer system. Any part of the dwelling which must be changed or replaced shall be left in a safe structural condition in accordance with applicable codes. Plumbing Fixtures Equipment and material shall comply with and be installed in accordance with current plumbing code, manufacturers & trade specifications, standards. All vents protruding through the roof shall be properly flashed. Valves shall be provided at each fixture or each piece of equipment. Unions shall be provided to permit removal of equipment without cutting pipe Water Heaters Shall meet requirements of the State Code and have an Energy Star label_ The type (gas or electric) and capacity will be given on the work write-up, or replacement will be with size and type required by number of bedrooms and baths. A 10- year minimum warranty is required. Water -heaters older than 10 years of age will be replaced with a minimum 40- gallon unit. Tankless/On Demand Water Heaters Use Energy Star -qualified tank -less water heaters to conserve heating time and energy use if -19- F:\USERS\Cbrumwel\Housing\True North Agreement_Final_3-12-18.docx practical. The device should have a variable -set thermostat and be appropriately sized. Shower and Tub Drain Plumbing penetrations shall be blocked with air -impermeable insulation and sealed at the edges with proper sealant. Rockwool, or equivalent products, shall not be used. 8. ELECTRICAL All electrical connections, service entrance, interior/exterior service/breaker boxes, shall be assessed prior to proposed electrical work. All nonfunctional outlets, light fixtures and switches must be inspected, corrected and or replaced. All potential fire and safety hazards must be addressed. Existing electrical wiring, fixtures and receptacles that are hazardous shall be repaired/replaced. Condition of existing wiring and equipment: Existing wiring and equipment shall be in proper operating condition; free of taped splices, loose connections, missing insulation, short circuits or unapproved grounds. Service conductors shall not be frayed, worn or bare. The changes being made to the house during rehabilitation must be considered when sizing the electrical system for upgrade/code compliance. Outlets/ Switches Cover plates must completely cover the hole in the wall and be of a matching style and color. Receptacles and switches must be flush with the cover plate and secured in the junction box. All 3 -prong outlets shall have an attached ground wire that is connected at the ground buss in the electrical panel. GFCI Outlets All outlets near water sources must be GFCI (Ground Fault Circuit Interrupting) outlets. Electric outlets that are not in compliance with code requirements must be replaced. All GFCI outlets must be correctly wired per the Electrical Code and the manufacturers specifications. Light Sockets Replace all damaged, loose, improperly functioning light sockets. Inspect existing wiring and replace all damaged or frayed wiring. The socket trim and trim- ring, or escutcheon, must completely cover the hole. 9. INTERIOR CLIMATE CONTROL t HVAC All furnaces 15 years or older will be replaced. Inspect for leaks, thermostat function, filters, structural soundness, deterioration, clearances, ventilation, corrosion etc. Check all boilers for safety devices. The distribution system shall be appropriate for the type of heating equipment to which it is connected. Install in accordance with manufacturer's printed installation instructions. The replacement heating equipment shall be a proper fit in size to any other existing portions of the system, i.e. fuel lines carrying the appropriate quantity, type, and pressure of fuel; air distribution and return systems carrying the appropriate cfm's to each location; air conditioning equipment rated to match the furnace; properly sized electrical circuits and equipment, etc. Where the other equipment is improperly sized to fit the new equipment, it shall also be replaced or modified so that there is a proper fit. -20- F:\USERS\Cbrumwel\Housing\True North Agreement_Final_3-12-18.docx Furnaces All furnaces must be rated at 90% or higher efficiency. All central air equipment attached to a furnace shall have a SEER rating (Seasonal Energy Efficiency Ratio) of no less than 14.5. Energy Star qualified furnaces shall have variable -speed blowers and programmable thermostats. All furnaces shall bear all applicable UL- listed and AGA- certified labels. For hot water systems, provide Energy Star certified boilers. Minimum furnace warranty must be 15 years under normal use and maintenance, all other components shall carry a 5 -year warranty. Thermostats Provide all heating/cooling systems with Energy Star qualified programmable thermostats. Dwelling thermostats shall be placed on an interior wall, at 48" above the finished floor, away from the direct flow of forced air and drafts. Oil Storage Tanks If a heating system is being replaced or repaired, then the oil tanks must be inspected for proper operation, and to ensure that there are no leaks. Contact a licensed HVAC expert. Air Infiltration and Drafts Heating work, and new system/furnace installation for homes must include weatherization, draft, and heat loss improvements. 10. INTERIOR Smoke Detectors All residential dwellings must have smoke detectors properly placed and installed. Use only new Dual -Sensor smoke alarms. Install per the directions of the included handout on smoke alarm placement. Interior Doors Repairs can be attempted on minor cracks and punctures only; otherwise, new pre -hung doors will be installed. Door finish to match existing dwelling doors. Kitchen/ Bath Cabinets Unsafe, unsanitary, or nonfunctioning cabinetry shall be replaced. Verify access and clearance required for the installation of each cabinet. At all cabinet locations, coordinate the installation of convenience outlets, equipment, lighting fixtures, plumbing, and HVAC vents, etc. Installation must be plumb, level and true. Install any required blocking in the walls to receive fasteners. Field verify all dimensions and clearances and minimize filler pieces at the ends of cabinet runs. Install materials in accordance with manufacturer's instructions and approved submittals. Install materials in proper relation with adjacent construction and with uniform appearance. Anchor securely in place, and coordinate with countertop installation. Adjust and lubricate hardware. Restore damaged finishes and test for proper operation. Always install knobs and pull on all drawers and cabinet doors unless these fixtures have them built in. Counter Tops Countertops shoving evidence of wear, water damage, uplifting surface materials etc. should be replaced. Counter tops shall not have sharp exposed corners, Corners protruding more than 1-1/2" shall be rounded or chamfered. Use only high-definition laminate countertops. -21- F:\USERS\Cbrumwel\Housing\True North Agreement_Final_3-12-18.docx Laminates Shelf, cabinet and countertop substrate material for plastic laminate shall be exterior- type, hardwood -faced plywood, or other material approved by the manufacturer of the plastic laminate. Cut-out edges shall be sealed prior to the installation of sinks. Protect walls with back and side splashes: 4" minimum at bathroom vanity tops and 6" minimum at kitchen countertops. Use only high-definition laminate countertops. Gypsum Wallboard (Drywall) The cause of warped, damaged, discolored (water) or deteriorating ceilings and walls must be determined before the wall or ceiling is repaired. The problem that caused the wall or ceiling damage must be repaired to ensure the problem doesn't reoccur in the same area or causes problems in another area of the wall, ceiling or dwelling. Gypsum board panels should be manufactured in the United States and labeled "made in the U.S.A." with the manufacturers name and manufacturing site location, shall be provided. Ceiling Use 1/2" (min) gypsum wall board or manufacturer's recommendations shall be followed in specifying ceiling drywall adequate for supporting the weight of specified attic insulation. Interior Partitions Use 1/2" (min.) gypsum wall board on all interior partitions unless otherwise required Wet/Moisture areas Use 1/2" (min.) mold -resistant gypsum wall board, at bathrooms, kitchens, and wherever wall tile is indicated (except within tub or shower enclosures). Exterior Walls Use 1/2" (min.) gypsum sheathing board panels at exterior walls and ceilings where required, surfaced with water -repellant paper on front, back, and long edges. Ceramic Tile Repairs to ceramic tile on wall and floor finish comply with manufacturer's instructions and recommendations. Paint, Stain, and Varnish Low-VOC water-based paints, stains, varnishes, and other wood finishes use water as a carrier instead of petroleum-based solvents. As such, the levels of harmful emissions are lower than solvent -borne surface coatings. These certified coatings also contain no heavy metals or formaldehyde Paint shall be delivered to the site in original containers, labeled by the manufacturer, with seals unbroken. Interior Partitions & Walls Apply lcoat primer, and 2 coats satin or eggshell latex paint. Interior Ceilings Apply lcoat primer, and 2 coats flat latex paint. Interior Trim/Painted Woodwork Apply 1 coat primer, and 2 coats semi -gloss latex paint. -22- F:\USERS\Cbrumwel\Housing\True North Agreement_Final_3-12-18.docx Lathe and Plaster Locate and repair the cause of the damage. Repairs should be done by a contractor with lathe and plaster experience. Interior Stairs See #4 Wood Framing 11. FLOOR FINISHES Damaged, or deteriorating floors shall be repaired or replaced. Subflooring Shall be according to finish flooring manufacturers specifications. interior floor sheathing shall be 1/8" (min.) thick. (See #4 Plywood) Carpeting Do not install carpets in basements, entryways, laundry rooms, bathrooms or kitchens. All carpet and pad shall be shall be certified low-VOC. Wood Flooring Floors with splits, cracks, holes, deterioration, warped planks shall be replaced. Replacement planks to match existing as closely as possible. Any holes in wood floors that are being refinished must be filled with matching wood. Roll Vinyl and Resilient Tile Flooring Resilient flooring or vinyl tile is acceptable for use in kitchens, bathrooms, laundry areas (except in basements) and storage rooms. Resilient flooring shall have a minimum thickness of 10 mils. Wall base trim shall be used in all habitable spaces. Hard Surface Flooring (ceramic tile, etc.) All repairs are to be in accordance with industry trade standards. All products must be mid -grade in cost and quality. 12. MISCELLANEOUS Driveways and Sidewalks Drives, walks shall comply with local Planning and Zoning requirements, state code. Paved surfaces adjacent to the foundation shall not slope towards the structure. Repair of paved surfaces shall be minimal in cost and incidental to the rehabilitation of the dwelling. Exterior wood Porches/Decks/Stairs All unsafe or unsound porches and stairs should be replaced with treated wood and treated/painted/ with a finish coat to protect from deterioration by weather. Concrete Stoops and Steps Repair damaged, deteriorating, broken, chipped stoops and stairs. For removal & repair, follow industry standards and guidelines. New stairs and stoops shall be in compliance with building codes. Provide all applicable handrails and railings. Doorbells Install doorbells on all Rehab jobs. Address numbers Install address number plates on the house prior to completion of rehab work. Must be highly visible from the street per fire code. Mailboxes Install a U.S. Mail Service -approved Mailbox in a highly visible area on the exterior of the house prior to completion of rehab work. -23- F:\USERS\Cbrumwel\Housing\True North Agreement_Final_3-12-18.docx 13. ENVIRONMENTAL/HAZARDOUS MATERIALS The Housing Rehabilitation Program, must comply with federal environmental review regulations [24 CFR Part 58 - Environmental Review Procedures for Entities Assuming HUD Environmental Responsibilities] established by the National Environmental Policy Act of 1969 (NEPA). Lead-based Paint (See attached lead paint pamphlet) Current Federal, State & Local Laws & Regulations shall be adhered to in dealing with Lead Based Paint. Asbestos Current Federal, State & Local Laws & Regulations shall be adhered to, Including: U.S. Environmental Protection Agency regulations & forms 2. State of Iowa (IOSH) Services Regulations Standards For Asbestos Abatement Radon If property is in a radon prone area test and comply with all current U.S. Environmental Protection Agency guidelines. Radon testing will be required on all Rehabilitation projects. All Radon reading results in excess of 4 picocuries per liter (pCi/L) are considered to be a high level for Radon Gas and must be dealt with using a Radon mitigation system. A Radon mitigation system will be included in the Rehab scope of work if the results of testing exceed 4 pCifL. -24- F:\USERS\Cbrumwel\Housing\True North Agreement_Final_3-12-18.docx Residential Rehabilitation Standards Appendix A Current Codes and Conditions Current Adopted Codes - Copies are available for viewing at the Carnegie -Stout Public Library ,360 W 11th St, Dubuque, IA 52001, 563-589-4225 - 2015 International Property Maintenance Code (IPMC) - 2015 International Residential Code (IRC) - 2015 International Existing Building Code (IEBC) - 2017 International Plumbing Code (IPC) -2017 International Mechanical Code (IMC) -2015 International Fuel Gas Code (IFGC) -2017 National Electrical Code (NEC) -25- F:\USERS\Cbrumwel\Housing\True North Agreement_Final_3-12-18.docx EXHIBIT D RESTRICTIVE COVENANTS FOR RESIDENTIAL REAL ESTATE KNOW ALL PERSONS BY THERE PRESENT that (PROPERTY OWNER NAMES) (Owner), the owners of the following premises situated in the City of Dubuque, Iowa: (INSERT LEGAL DESCRIPTION OF PROPERTY) (Real Estate) does hereby establish and place the following restrictive covenants on the Real Estate: 1. The Real Estate shall be known and described as residential Real Estate, and may not be improved, used or occupied for other than one (1) private single-family residential use, The Real Estate and any part thereof must be owner occupied. Rental of the Real Estate is not allowed. No portion of the Real Estate can be rented. 2. The Owner has the right to enforce, by any proceedings in law or in equity, all restrictions, conditions and covenants now or hereafter imposed by the provisions of these restrictive covenants. 3. These covenants shall be filed for record in the office of the Dubuque County Recorder and all covenants, agreements, promises and representations herein stated shall be deemed to be covenants running with the Real Estate and shall endure and be binding on the parties hereto, their mortgagees, Iienholders, successors and assigns, for a period of twenty-one (21) years from the date of the recording of these covenants. The property owner has the right to renew these covenants for successive twenty-one (21) year periods. 4. Invalidation of any of these covenants by judgment or court order shall in no way affect any of the other provisions, which shall remain in full force and effect. 5. The waiver of any violation or failure to enforce any such restrictions, easements, and covenants shall not in any event operate as a waiver, impairment or abrogation of same, or the right to enforce the same in the event of any future or other breach of the same of any other restriction, easement, rule or covenant, by the same or any other person. 6. These restrictions, easements, rules and covenants shall be construed under and in accordance with the laws of the State of Iowa. The foregoing provisions encumber the Real Estate described as: (INSERT LEGAL DESCRIPTION OF PROPERTY) -26- F:\USERS\Cbrumwel\Housing\True North Agreement_Final_3-12-18.docx Executed by the respective signatories effective the date first above written. PROPERTY OWNER 1 PROPERTY OWNER 2 ATTEST: On this _ day of , 201_, before me, a Notary Public in and for said state, personally appeared (PROPERTY OWNER NAMES) known to me to be the person(s) named in and who executed the foregoing instrument, and acknowledged that they executed the same as their voluntary act and deed. Notary Public in the State of Iowa My Commission expires 2 -27- F:\USERS\Cbrumwel\Housing\True North Agreement_Final_3-12-18.docx The CHANGE Initiative is a campaign of neighborhood revitalization and an extension of sustainability to specifically address marginal properties, affordable housing, and homeownership. MISSION: Building community enrichment through a collective/collaborative impact of programs, partnerships, and services designed to provide neighborhood economic and social resiliency. TARGET OUTCOMES: Increased flood protection; increased home ownership; deconcentration of low-income housing; reduction in number of households in poverty; reduction in number of blighted properties; stabilization and increase of property values; increase in quality, affordable housing stock; reduction in lead hazards; greater landlord and tenant responsibility; and an increase in first-time homeowners. PARTNERS: • Community Foundation of Greater Dubuque • Community Housing Initiatives, Inc. • Dubuque Initiatives • Dubuque Main Street • East Central Intergovernmental Assoc. • Four Mounds HEART Program • Greater Dubuque Development Corporation THE CITY OF Dui Masterpiece on the Mississippi • Habitat for Humanity, Inc. • Iowa Department of Transportation • Northeast Iowa Community College (NICC) • Opportunity Dubuque • Private developers & general contractors • True North Development Corporation • Visiting Nurses Association Marginal Property Acquisition: $5.04 million, 120 housing units (13 units completed to date) Lead & Healthy Homes: $3.2 million, 129 housing units (83 units completed to date) Bee Branch Healthy Homes Resiliency Program: $8.4 million, 277 units (6 units completed to date) Housing Rehabilitation & Home Ownership: $3.93 million, 200 units (65 units completed to date) 2016-2022 Total: $20.6 million to leverage tens of millions of dollars in private investments to improve 725 housing units Housing & Community Development Department 563.589.4239 www.cityofdubuque.org/DBQChange EQUAL HOUSING OPPORTUNITY CHANGE Initiative Goals Beyond Housing Units SUPPORT training and education programs for residents job opportunities ,CREATE RESILIENCY PLAN for iff500 individuals and family members to sustain themselves and their housing structures PROPERTY MAINTENANCE A new International Property Maintenance Code (IPMC) went into effect in 2016 and, through increased enforcement and higher standards for safety and maintenance, is improving the quality of rental housing stock in Dubuque. The new property maintenance code applies to all property types and is primarily used by the City's Housing and Community Development Department for routinely scheduled rental licensing inspections and housing complaint inspections. The City's Building Services Department also utilizes the code for vacant and abandoned property inspections. The code provides a standard for property maintenance and establishes minimum requirements for light, ventilation, and occupancy limitations; plumbing facilities and fixture requirements; mechanical and electrical requirements; and fire safety requirements in existing structures and properties. For more information on the IPMC, visit www.cityofdubuque.org/ipmc. In 2018, the Housing and Community Development Department will implement a new three -tiered inspection policy based on categories of operation or management of rental properties. The new policy will enable inspectors to focus on problem and nuisance properties in a more timely and efficient manner. A fifth Rental Housing Inspector position will be added to City staff. BEE BRANCH HEALTHY HOMES RESILIENCY PROGRAM This program supports the significant progress made on the $219 million Bee Branch Watershed Flood Mitigation Project: • Includes $8.4 million* in the form of forgivable loans TO IMPROVE 277 HOUSING UNITS, including owner - occupied homes, single -unit rentals, and small, multi -family residential units. • Funds will be awarded to properties where low- to moderate -income residents reside and used to make repairs and implement on-site stormwater management principles to decrease environmental health and safety issues from flooding. • Many of these properties will abut the new pervious paver alleys (green alleys.) *In 2016, Dubuque was awarded $31.5 million in HUD disaster resiliency funds for the Bee Branch Healthy Homes Resiliency Program and stormwater infrastructure improvements. BEE BRANCH HEALTHY HOMES HEALTHY HOME ADVOCATE to help individuals and families • Collaborates with individuals and families to facilitate developing a resiliency plan that will assist them in recovering from the effects of flood -related problems and prevent future issues. • Can assist residents with developing a Personal Resiliency Plan. • May help identify training opportunities and community resources for improving future personal development, employment, and developing family goals, as well as connecting them with agencies and not -for -profits that provide assistance. • Will assist each individual or family with a strategy to prevent, prepare for, and cope with natural disasters. For more information on the Bee Branch Healthy Homes Resiliency Program: 563.690.6168 I bbhh@cityofdubuque.org I www.cityofdubuque.org/bbhh • HOUSING REHABILITATION & HOME OWNERSHIP PROGRAMS 2010-2015: $2.8 million invested to improve 203 properties in the Washington Neighborhood and Bee Branch Project Corridor 2016-2022: An additional $3.93 million invested to improve 200 properties • Accessibility Rehabilitation Program • Home Repair Loan • HOME (Home Ownership Made Easy) Workshop • Homebuyer Programs • Homeowner Rehabilitation Loan Programs • Housing Choice Voucher Home Ownership Program • OATH (Officer at Home) Incentive Program LEAD & HEALTHY HOMES PROGRAM The lead poisoning rate in Dubuque is more than double the national average. Dubuque's Lead Hazard Control & Healthy Homes Program utilizes federal funds to provide financial assistance in the form of forgivable loans to low- and moderate -income homeowners and rental property owners to reduce lead-based paint hazards and other health and safety issues in homes with young children. C D BG Community Development Block Grant These funds are used for eligible activities in the areas of housing, economic development, neighborhood and public services, public facilities, and planning/administration. Lead remediation will be performed on 129 homes between 2016 and 2018. MARGINAL PROPERTY ACQUISITION One hundred twenty properties will be acquired over the next six years and renovated and sold, mainly for single-family home ownership. This will decrease neighborhood density and remove blighted conditions. At the same time, the City will be seeking partners to develop affordable, quality rental units throughout the community. DOWNTOWN HOUSING INCENTIVE PROGRAM The City of Dubuque Economic Development Department offers incentives for projects that assist in the creation of new, market -rate downtown rental and/or owner -occupied residential units within the Greater Downtown Urban Renewal District. This program, which is limited to rehabilitations of existing structures that create at least two new housing units, can provide up to $10,000 in assistance per residential unit. Preference is given to projects that also utilize federal and/or state historic tax credits. For additional information, call 563.589.4393 or visit www.cityofdubuque.org/econdev. CENTRAL AVENUE CORRIDOR PARTNERS FOR PLACES The City of Dubuque has entered into a collaborative relationship with Iowa State University Extension and Outreach (ISUEO) to assist the City in the economic revitalization of the Central Avenue Corridor (CAC) through community engagement, educational outreach, and CAC community - informed storefront and streetscape design. This multi- phase, multi-year project began in early 2016. Participants include CAC stakeholders (business owners, employees, patrons, residents, landlords, social service agencies, community leaders), the City of Dubuque, and its partners. • • • In the summer of 2017, the City of Dubuque and Community Foundation of Greater Dubuque received a Partners for Places Equity Grant from The Funders Network for Smart Growth and Livable Communities and the Urban Sustainability Directors Network. The purpose of the grant is to build the skills, knowledge, and capacity of City departments and non-profit organizations located in the Washington Neighborhood so they can better engage with traditionally unengaged and underrepresented populations in our community. Next steps for the group will include development and completion of projects and events that will build connections in the neighborhood, additional trainings for staff regarding outreach and facilitation strategies, and development of City department plans to improve equitable delivery of services. HOUSING TAX INCREMENT FINANCING (TIF) Dubuque's four new Housing TIF Districts are required to dedicate 38.1% of revenues to affordable housing. From 2016-2022, these Housing TIF districts are projected to generate $3.9 million supporting the CHANGE program and other initiatives. DUBUQUE'S NEW COMPREHENSIVE PLAN IMAGINE DUBUQUE • • VIABLE • LIVABLE • EQUITABLE 2037: A CALL TO ACTION Just as the Imagine Dubuque Comprehensive Plan was built on community participation, partnerships and collaboration will be the key to implementing the plan recommendations. Measuring successful plan implementation must focus on outcomes to make Dubuque a more viable, livable, and equitable community. Full recommendations and the complete plan are available to view and download at: www.cityofdubuque.org/ImagineDubuque FINDING DUBUQUE'S TRUE NORTH Greater Dubuque Development Corporation focuses on six pillars of its mission: business retention and expansion, workforce solutions, national marketing, sustainable innovations, StartUp Dubuque, and Dubuque's True North. Just announced in July as part of the Greater Dubuque 2022 Campaign Goals, Finding Dubuque's True North was added by Greater Dubuque to bring transformative change, in partnership with the True North Development Corporation, to Dubuque's vibrant, historic neighborhoods on the city's North End. It will be a collaborative partnership of public and private _. entities that will continue to bring new energy to the area. The program goals include removal of slum and blight, fostering of single-family home ownership, redevelopment of Central Avenue, and brownfields redevelopment for new businesses. For more information on this initiative, visit www.greaterdubuque.org or call 563.557.9049. D U B U Q U E'S TRUE NORTH Rev. 1/18/18 Kevin Firnstahl From:Randy Gehl Sent:Friday, March 30, 2018 11:08 AM To:Kevin Firnstahl Subject:FW: Materials Related to Action Item #1: Dubuque's True North Corporation Agreement Attachments:CHI Report - Feb 2018.pdf; Opportunity Dubuque FY18 - December 2017 Final (26jan18).pdf; True North Related CIPs.pdf In case you need this. From: Randy Gehl Sent: Friday, March 30, 2018 11:07 AM To: Brett Shaw <bshaw@cityofdubuque.org>; Crenna Brumwell <Cbrumwel@cityofdubuque.org>; David T. Resnick <dresnick@cityofdubuque.org>; Jake A. Rios <jrios@cityofdubuque.org>; Kate Larson <kmlarson@cityofdubuque.org>; Luis Del Toro <ldeltoro@cityofdubuque.org>; Mike Van Milligen <ctymgr@cityofdubuque.org>; Ric W. Jones <rjones@cityofdubuque.org>; Roy D. Buol <rdbuol@cityofdubuque.org> Subject: Materials Related to Action Item #1: Dubuque's True North Corporation Agreement Mayor Buol and City council Members, Mike Van Milligen was interviewed this morning by TH reporter Tom Barton about the Dubuque’s True North Agreement item on Monday night’s meeting agenda. Mike asked me to send you the three attached documents, which will also be provided to Tom Barton. The attachments are:  A February update from David Harris on Community Housing Initiatives (CHI) activities;  A January update from Kristin Dietzel with GDDC on Opportunity Dubuque activities; and  Two CIPs related to Dubuque’s True North activities. Thanks, Randy Randy Gehl Public Information Officer City of Dubuque th 50 West 13 Street Dubuque, Iowa 52001 O: 563.589.4151 M: 563.599.2448 www.cityofdubuque.org Follow the City on Twitter & Facebook: @CityOfDubuque 1 17 February 2018 To: Mike Van Milligen, City Manager From: David Harris, Community Housing Initiatives Re: Status Report – Washington Neighborhood Homeownership Program CHI purchased its first property in March 2013. Since that time, 29 properties have been acquired, with rehabilitation completed on 20. This includes construction of a new home on a lot donated to CHI by the City. 18 homes have been sold to-date, with two currently for sale. Construction is under way on nine properties, with three of those already pre-sold to waiting buyers. Total CHI expenditures to-date exceed $2 200 000. Using data on homes sold through calendar year 2017, we have averaged about $30 000 in purchase costs and $84 000 in rehab costs on each home. Average sale price on our completed homes is $96 000. The City’s $25 000/house subsidy – totaling $375 000 to-date – helps to reduce those losses. Adding realtor commissions, taxes, utilities, insurance and administrative costs results in a per-home deficit of about $11 000. In our September 2015 report to the Council, we reported average per-home costs of $107 000 and sale prices at $91 000. Comparison up-dated figures are $124 000 and $96 000, respectively, with the significant difference being an increase in rehab costs. As noted, we are selling homes before completing construction. This results in part from referrals from previous CHI buyers, who are recruiting their friends to live in the Washington Neighborhood. All recent (since 2015) buyers are younger people, both singles and couples. A sense of community is being established, as more people realize the benefits of home ownership in a walkable, historic urban neighborhood, close to new amenities developing in the area. These include restaurants, coffee shops, brew pubs and the “vibe” coming from the adjacent Millwork District. CHI is developing partnerships with several community-based organizations working to improve conditions in the Washington Neighborhood. The Community Foundation’s new community engagement project will be providing volunteers to do landscaping improvements on CHI properties, in conjunction with ISU-Extension’s master gardener program. CHI will co-sponsor, in partnership with the Old House Enthusiasts, a tour of our homes in the Washington Neighborhood in May. Our relationship with the HEART Program continues, with five homes completed to-date with student labor. A possible partnership with Heritage Works is now in discussion. And a CHI property now in construction is being considered for an historic preservation award from the Dubuque County Preservation Commission. I again wish to express CHI’s appreciation to the City Manager’s office, the Housing and Community Development Department and the Council for the continued support of our efforts to promote homeownership in the Washington Neighborhood. cc: Doug LaBounty, CEO, Community Housing Initiatives Opportunity Dubuque - Fiscal Year 2018 Halftime Report N:\BCS\Operations\Student Tracking\Report files\Opportunity Dubuque Report\FY 18\Opportunity Dubuque FY18 25jan18.docx Jan 2018 Page 1 This report includes students who enroll in an Opportunity Dubuque career pathway certificate program and participate in the program’s 5-step process in the Success Model Student Database (SMST). The report captures all Certificate Programs in the Opportunity Dubuque model, independent of funding and will be produced by Jan 31. Unless otherwise noted, timeframes are covered in 2 groupings: • 1st Half Fiscal Year (FY), running from July 1,2017 to December 31, 2017 . • All-Time Total, running from SMST establishment June 2012 to December 31, 2017. Various Student Groups by Program and Enrollment, Status, or Gender - Table 1 Region Programs All-Time Enrolled All-Time Successfully Completed [2] Enrolled (1st Half) FY18 Completed (1st Half) FY18 [5] Scheduled or Training (1st Half) FY18 All-Time Enrolled Female All-Time Enrolled Male Building Construction 2 2 0 0 0 1 1 CDL (Class A CDL) 36 30 8 5 2 5 31 Certified Nurse Aide [1] 101 76 3 2 1 91 10 Certified Production Technician 11 7 0 0 0 5 6 CNC 144 122 9 5 3 11 133 Construction Equipment Operator 18 16 0 0 0 1 17 Culinary [1] 17 13 5 4 1 8 9 Electromechanical Technician [6] 21 16 0 0 0 2 19 Emergency Medical Technician 7 4 1 0 1 5 2 Exec Administrative Professional [1] 9 6 1 0 0 8 1 Industrial Sewing 19 15 0 0 0 8 11 Information Technology Programs 92 83 0 0 0 0 0 Mainframe, Middleware, Storage 8 7 0 0 0 3 5 MSSC & Modern Manufacturing 10 8 0 0 0 4 6 Pharmacy Technician [1] 5 2 0 0 0 5 0 Phlebotomy 24 20 2 2 0 20 4 Restoration Academy 2 2 0 0 0 2 0 Welding 117 97 17 15 4 13 104 Apprenticeship – CNC 9 1 0 0 8 1 8 Apprenticeship - Tool & Die 3 0 0 0 3 0 3 Total 655 527 46 33 23 193 370 Additional Information • Gender, Ethnicity, and Race information is volunteered; therefore subtotals will not always match overall totals. • Students completing more than one program are counted for each program completed. [1] Not funded by Opportunity Dubuque, but offered at the Peosta or Dubuque campuses and are in the SMST . [2] ‘Successfully Completed’ measures only students that passed the program. [5] Completion numbers are based on only the completion dates, they do not consider enrollment dates. [6] Formerly Mechatronics Opportunity Dubuque - Fiscal Year 2018 Halftime Report N:\BCS\Operations\Student Tracking\Report files\Opportunity Dubuque Report\FY 18\Opportunity Dubuque FY18 25jan18.docx Jan 2018 Page 2 All-Time Student Completers [2] by Program and Employment Status, 6 months after completion- Table 2 Region Programs Continuing Education Employed (New) Employed (Retained) Unemployed Unable to Contact Total Contacted [3] % Employed or Cont. Ed [4] Building Construction 0 1 0 0 1 1 100% CDL (Class A CDL) 0 13 7 3 7 23 87% Certified Nurse Aide [1] 2 38 24 5 7 69 93% Certified Production Technician 2 2 2 1 0 7 86% CNC 4 81 27 2 8 114 98% Construction Equipment Operator 1 10 4 0 1 15 100% Culinary [1] 0 6 5 0 2 11 100% Electromechanical Technician 2 1 6 1 6 10 90% Emergency Medical Technician 0 1 1 1 1 3 67% Exec Administrative Professional [1] 1 0 5 0 0 6 100% Industrial Sewing 3 6 3 2 1 14 86% Information Technology Programs 0 0 83 0 0 83 100% Mainframe, Middleware, Storage 0 6 0 0 1 6 100% MSSC & Modern Manufacturing 2 4 0 0 2 6 100% Pharmacy Technician [1] 0 1 0 0 1 1 100% Phlebotomy 0 8 9 0 3 17 100% Restoration Academy 0 1 0 0 1 1 100% Welding 5 49 20 3 20 77 96% Total 22 228 196 18 62 464 96% Additional Information • Students completing more than one program are counted for each program completed. • All employment and employers are considered in ‘New’ and ‘Retained’ groups. [1] Not funded by Opportunity Dubuque, but offered at the Peosta or Dubuque campuses and are in the SMST [2] Successfully Completed measures only those who passed the program. [3] Does not include those students NICC was unable to contact during multiple attempts within a one year period after completion. If contact is made during any of the three attempts the most recent successful attempt is the one used in the calculation. [4] % employed or continuing education determined by the following: (𝑐𝑛𝑛𝑡𝑖𝑛𝑡𝑖𝑛𝑔+𝑛𝑐𝑤|𝑟𝑐𝑡𝑎𝑖𝑛𝑐𝑐) 𝑡𝑜𝑡𝑎𝑙 Opportunity Dubuque - Fiscal Year 2018 Halftime Report N:\BCS\Operations\Student Tracking\Report files\Opportunity Dubuque Report\FY 18\Opportunity Dubuque FY18 25jan18.docx Jan 2018 Page 3 Primer on Ethnicity and Race This year ethnicity and race reporting has been modified to match other NICC publications, based on reporting method outlined in hierarchy by Federal Register (72 Fed Reg 59267) as follows: • Hispanic (of any race) o If not Hispanic – ▪ American Indian or Alaska Native ▪ African American or Black ▪ Asian ▪ Pacific Islander or Native Hawaiian ▪ White ▪ Two or More Races (Multiple) • Unknown or Not Reported Previously reported groupings have been transitioned to this model. For example, a person identifying as Filipino would now be categorized as Asian**. Entering students are categorized under this new method, prior students were transitioned using available data. Comparability to previous versions of the report should not be done ad hoc. If more information on these changes is required, please contact your NICC representative. All-Time Students Enrolled by Program and Ethnicity/Race - Table 3 Region Programs Hispanic Black Asian Pacific Islander White Multiple Unknown Total Building Construction 0 0 0 0 2 0 0 2 CDL (Class A CDL) 2 6 0 0 26 0 2 36 Certified Nurse Aide [1] 5 39 1 0 50 3 3 101 Certified Production Technician 0 2 0 0 6 1 2 11 CNC 2 5 0 1 59 1 76 144 Construction Equipment Operator 0 13 0 0 5 0 0 18 Culinary [1] 0 13 0 0 4 0 0 17 Electromechanical Technician 2 0 0 0 16 0 3 21 Emergency Medical Technician 0 4 0 0 3 0 0 7 Exec Administrative Professional [1] 0 2 0 0 6 0 1 9 Industrial Sewing 0 7 0 1 10 1 0 19 Information Technology Programs 0 0 0 0 0 0 92 92 Mainframe, Middleware, Storage 0 0 1 0 1 0 6 8 MSSC & Modern Manufacturing 0 3 0 0 6 0 1 10 Pharmacy Technician [1] 0 0 0 0 0 0 5 5 Phlebotomy 0 8 0 0 15 0 1 24 Restoration Academy 0 0 0 0 2 0 0 2 Welding 5 16 0 1 59 1 35 117 Apprenticeship – CNC 1 0 0 0 5 0 3 9 Apprenticeship - Tool & Die 0 0 0 0 1 0 2 3 Total 17 118 2 3 276 7 223 655 Additional Information • Gender, Ethnicity, and Race information is volunteered; therefore subtotals will not always match overall totals. • Unlisted categories are not included because of no students in the respective category. • Students completing more than one program are counted for each program completed. [1] Not funded by Opportunity Dubuque, but offered at the Peosta or Dubuque campuses and are in the SMST * Further info found @ https://www2.ed.gov/policy/rschstat/guid/raceethnicity/questions.html ** per Census Bureau Statement CB15-RTQ.26 Opportunity Dubuque - Fiscal Year 2018 Halftime Report N:\BCS\Operations\Student Tracking\Report files\Opportunity Dubuque Report\FY 18\Opportunity Dubuque FY18 25jan18.docx Jan 2018 Page 4 All-Time Student Completions [2] by Employment Status and Race/Ethnicity - Table 4 Region Status Hispanic Black Asian Pacific Islander White Multiple Unknown Total Continuing Education 2 5 0 1 10 1 1 20 Employed (New) 2 38 0 0 85 2 92 219 Employed (Retained) 4 20 1 0 66 0 19 110 Unemployed 1 1 0 0 12 1 1 16 Unable to Contact 2 7 1 0 40 2 7 59 Total 11 71 2 1 213 6 120 424 Additional Information • Note= Total will not include all completers because not all completers will have been contacted by time of report, and 83 early IT graduates were not enrolled in the system to track post-completion data. • Gender, Ethnicity, and Race information is volunteered; therefore subtotals will not always match overall totals. • Unlisted categories are not included because of no students in the respective category. • Students completing more than one program are counted for each program completed. All-Time Student Completers [2] by Program and Entering Fiscal Year - Table 5 Region Programs 2012 2013 2014 2015 2016 2017 2018 (1st Half) Total Building Construction 0 0 0 0 0 2 0 2 CDL (Class A CDL) 0 0 3 9 4 9 5 30 Certified Nurse Aide [1] 1 4 22 22 14 11 2 76 Certified Production Technician 0 0 7 0 0 0 0 7 CNC 19 52 17 15 11 3 5 122 Construction Equipment Operator 0 0 0 0 9 7 0 16 Culinary [1] 0 0 0 0 5 4 4 13 Electromechanical Technician 0 0 3 6 6 1 0 16 Emergency Medical Technician 0 0 0 0 0 4 0 4 Executive Administrative Professional [1] 0 0 0 0 4 2 0 6 Industrial Sewing 0 0 0 3 10 2 0 15 Information Technology Programs 0 83 0 0 0 0 0 83 Mainframe, Middleware, Storage 0 0 7 0 0 0 0 7 MSSC & Intro to Modern Manufacturing 0 1 1 2 4 0 0 8 Pharmacy Technician [1] 0 1 1 0 0 0 0 2 Phlebotomy 0 0 0 0 14 4 2 20 Restoration Academy 0 0 0 0 2 0 0 2 Welding 0 36 11 15 15 9 11 97 Total 20 177 72 72 98 58 29 526 Additional Information • Students completing more than one program are counted for each program completed. • Note = This is based on “Entering Fiscal Year” rather than “Completion Fiscal Year” so totals will not necessarily match other tables [1] Not funded by Opportunity Dubuque, but offered at the Peosta or Dubuque campuses and are in the SMST [2] Successfully Completed measures only those who passed the program. Opportunity Dubuque - Fiscal Year 2018 Halftime Report N:\BCS\Operations\Student Tracking\Report files\Opportunity Dubuque Report\FY 18\Opportunity Dubuque FY18 25jan18.docx Jan 2018 Page 5 Student Completers During FY18 [2] by Program and Employment Status, 6 months after completion – Table 6 Region Programs Continuing Education Employed (New) Employed (Retained) Unemployed Unable to Contact Total Contacted [3] % Employed or Cont. Ed [4] CDL (Class A CDL) 0 1 0 0 4 1 100% Certified Nurse Aide [1] 0 0 2 0 0 2 100% CNC 0 2 0 0 3 2 100% Culinary [1] 0 1 1 0 2 4 100% Welding 0 2 1 0 12 12 100% Total 0 6 4 0 21 21 100% Additional Information • Students completing more than one program are counted for each program completed. • All employment and employers are considered in ‘New’ and ‘Retained’ groups. [1] Not funded by Opportunity Dubuque, but offered at the Peosta or Dubuque campuses and are in the SMST [2] Successfully Completed measures only those who passed the program between July 1, 2016 and June 30, 2017 [3] Does not include those students NICC was unable to contact during multiple attempts within a one year period after completion. If contact is made during any of the three attempts the most recent successful attempt is the one used in the calculation. [4] % employed or continuing education determined by the following: (𝑐𝑛𝑛𝑡𝑖𝑛𝑡𝑖𝑛𝑔+𝑛𝑐𝑤|𝑟𝑐𝑡𝑎𝑖𝑛𝑐𝑐) 𝑡𝑜𝑡𝑎𝑙 291 DEPARTMENT:STATE PROGRAM:PROJECT TITLE:YEAR FIRST SUBMITTED:FY 2017 TOTAL PROJECT COST 61 - Housing & Community Development 5C - Community & Economic Development Assistance for Homeownership ACTIVITY NO:360-1595 101-1595 $5,040,981 2017 EXPENSE 2018 BUDGET PROJECT BUDGET 2019 2020 2021 2022 2023 2024 A. EXPENDITURE ITEMS $5,600 $85,655 Loans $—$—$—$—$—$— $—$4,279 Property Maintenance $3,047 $7,782 $6,252 $7,782 $7,782 $7,782 $39,639 $304,420 Construction $202,529 $227,437 $264,000 $483,938 $612,872 $593,289 $847 $354,153 Property Acquisition $157,523 $200,000 $417,897 $434,000 $529,540 $738,000 $17,403 $146,354 Grants $87,500 $87,500 $87,000 $113,000 $145,250 $200,000 $—$—$—$—$—$—$—$— $63,489 $894,861 TOTAL $450,599 $522,719 $775,149 $1,038,720 $1,295,444 $1,539,071 B. PROJECT FINANCING $—$312,534 Housing TIF $349,599 $420,719 $617,149 $832,720 $1,025,244 $1,168,871 $546 $9,200 Loan Repayments $1,000 $2,000 $3,000 $6,000 $10,200 $10,200 $—$156,079 Sales Proceeds $100,000 $100,000 $155,000 $200,000 $260,000 $360,000 $5,600 $58,116 General Fund $—$—$—$—$—$— $57,343 $358,932 Greater Downtown TIF $—$—$—$—$—$— $63,489 $894,861 TOTAL $450,599 $522,719 $775,149 $1,038,720 $1,295,444 $1,539,071 PROJECT DESCRIPTION/JUSTIFICATION The Comprehensive Housing Activities for Neighborhood Growth and Enrichment, or C.H.A.N.G.E. Initiative is a holistic approach to sustainability that addresses ecological, environmental integrity, economic prosperity, and social/cultural vibrancy. C.H.A.N.G.E. is a campaign of neighborhood revitalization and an extension of sustainability to specifically address marginal properties, affordable housing and home-ownership. Under the umbrella of C.H.A.N.G.E., this initiative provides funding towards the City's strategy of revitalization for the downtown neighborhoods and centers on increasing home-ownership. The City administers a number of programs of federal- and state-provided financial assistance for low-moderate income households (earning less than 80% of area median income) to achieve this. To achieve the goal of promoting a broader income mix of downtown homeowners, programs are needed to assist households earning more than 80% of median income, who earn too much to qualify for current financial subsidies. This Program also provides for acquisition activities where the City may purchase abandoned, derelict buildings and houses; or it may purchase housing subject to mortgage foreclosure actions in order to secure City funds previously loaned as part of rehabilitation activities or other housing to accomplish the goals. Certain improvements will be made to the properties in order to make them marketable for resale. In this manner, neighborhood conditions are improved, dwellings are resold to responsible owners and City dollars are returned to the revolving fund. The program offers loans up to $25,000 for down payments and closing costs and approximately $30,000 to subsidize rehabilitation. 292 DEPARTMENT:STATE PROGRAM:PROJECT TITLE:YEAR FIRST SUBMITTED:FY 2017 TOTAL PROJECT COST 61 - Housing & Community Development 5C - Community & Economic Development Assistance for Homeownership ACTIVITY NO:360-1595 101-1595 $5,040,981 PROJECT DESCRIPTION/JUSTIFICATION (Continued) This Program is offered to households above and below 80% of median income, as an incentive to purchase and improve homeowner properties in sections of Census Tracts 1 and 5 as part of the Washington Neighborhood revitalization strategy. The loan repayment funds can be used for over 80% median. The other sources of funds can be used anywhere within the City of Dubuque limits. Consideration will be given to increasing the amounts for purchase of rental properties converted to owner occupied. Beginning in 2008, selective purchases have been made. Certain properties are targeted to be voluntarily acquired, for reason of poor maintenance and the inability or refusal of the owner to make improvements. These are then resold to qualifying owner-occupied households committed to restoration of the home. This Program can help to expand the Four Mounds HEART program partnership. This CIP will also significantly enhance GHHI. This is a ten year TIF which requires 38.1% of the income generated to be used for Low and Moderate Income residents any where in the City of Dubuque. The percentage to Low and Moderate Income residents can be higher than the required 38.1%. In FY 2019 the percentage is 63.65%; FY 2020 is 69.37%; FY 2021 is 73.14%; and FY 2022 is 55.38%. All other years are 38.1%. This Housing TIF revenue can be used for City initiatives other than Homeownership Grants in Targeted Neighborhoods & Purchase/Rehab/Resale and can be used outside the Greater Downtown TIF Urban Renewal area. RELATIONSHIP TO OTHER PROJECTS This project supports the True North Neighborhood Reinvestment Partnership capital improvement project. OUTCOME Livable Neighborhoods and Housing: Increase the availability of affordable housing throughout the city, not in concentrated areas of poverty and low income housing FUNDING RESTRICTIONS This project may only be funded by TIF and General Fund loan repayments 293 DEPARTMENT:STATE PROGRAM:PROJECT TITLE:YEAR FIRST SUBMITTED:FY 2019 TOTAL PROJECT COST 61 - Housing & Community Development 5C - Community & Economic Development True North Neighborhood Reinvestment Partnership ACTIVITY NO:360-2766 $1,500,000 2017 EXPENSE 2018 BUDGET PROJECT BUDGET 2019 2020 2021 2022 2023 2024 A. EXPENDITURE ITEMS Construction $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $—$—TOTAL $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 B. PROJECT FINANCING Housing TIF $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $—$—TOTAL $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 PROJECT DESCRIPTION/JUSTIFICATION This project provides funding to achieve the goal of promoting a broader income mix of downtown homeowners. This Program also provides for acquisition activities where True North Development Corporation may purchase abandoned, derelict buildings and houses to accomplish the goals. Certain improvements will be made to the properties in order to make them marketable for resale. In this manner, neighborhood conditions are improved and dwellings are resold to responsible owners. Certain properties are targeted to be voluntarily acquired, for reason of poor maintenance and the inability or refusal of the owner to make improvements. These are then rehabilitated and resold to qualifying owner-occupied households. This is a ten year TIF which state law requires a minimum of 38.1% of the income generated to be used for Low and Moderate Income residents any where in the City of Dubuque. The percentage benefiting Low and Moderate Income residents can be higher than the required 38.1%. In FY 2019 the percentage is 51.1%. It is anticipated that True North Development Corporation will acquire, renovate and sell for long-term home ownership 50 residential properties over the next 5-7 years with an estimated $30,000 construction subsidy per property. The City would ensure True North Development Corporation that they would not experience a loss upon sale of the property and through the Assistance for Home Ownership CIP the City would provide $25,000 in down payment assistance to qualified buyers of the rehabilitated property from Assistance for Homeownership (page 292). True North Development Corporation would be seeking private financing and state and federal grants to eliminate the need in the future to generate project losses. RELATIONSHIP TO OTHER PROJECTS This project is related to Assistance for Home Ownership, Bee Branch Watershed HUD Resiliency Rehabilitation, and the Homeowner Rehab Program. 294 DEPARTMENT:STATE PROGRAM:PROJECT TITLE:YEAR FIRST SUBMITTED:FY 2019 TOTAL PROJECT COST 61 - Housing & Community Development 5C - Community & Economic Development True North Neighborhood Reinvestment Partnership ACTIVITY NO:360-2766 $1,500,000 OUTCOME Livable Neighborhoods and Housing: Increase the availability of affordable housing throughout the city, not in concentrated areas of poverty and low income housing FUNDING RESTRICTIONS This project may only be funded by Housing TIF.