I-Jobs Affordble Housing Program AssistanceTHE CITY OF Dubuque
-.
DUB E AN-AmP~icaCity
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Masterpiece on the Mississippi
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: I-Jobs Affordable Housing Assistance Program Grant for Historic
Washington Rowhouses Project
DATE: December 17, 2009
David Harris, Housing and Community Development Department Director recommends
City Council approval of an application to the Iowa Finance Authority for I-Jobs
Affordable Housing Assistance program funds in the amount of $240,000 for renovation
of the rowhouses located at 1765-1796 Washington Street.
concur with the recommendation and respectfully request Mayor and City Council
approval.
~~
Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David Harris, Housing and Community Development Department
Dubuque
THE CITY OF
D~~ E
i I
Masterpiece on the Mississippi
2007
TO: Michael Van Milligen, City Manager
FROM: David arras, Housing and Community Development Department
SUBJECT: I-Jobs Affordable Housing Assistance Program Grant for Historic
Washington Rowhouses Project
DATE: 16 December 09
INTRODUCTION
This memorandum presents for City Council approval an I-Jobs Affordable Housing Assistance
Program grant application for the renovation of the rowhouses located at 1765-1795 Washington
Street. The City Council is requested to adopt the attached resolution approving the application.
BACKGROUND
Recently, the State of Iowa established the I-Jobs program which is a state stimulus package to
advance construction projects within the state. IFA has received funding to provide grants for
housing for certain elderly, disabled, and low-income persons and public servants in professions
meeting critical skill shortages in the state, to assist communities in providing safe and
affordable housing for the general welfare and security of the citizens of the state.
The `rowhouse' apartments in the 1700 block of Washington Street, located across from the
Washington Court/Health Center complex, are seven connected units, constructed circa 1890 in a
masonry style mimicking the Dubuque Casket Factory building. They are two-story apartments,
each with approximately 1650 square feet of living area, with full basements. One currently is
owner-occupied and will not be purchased. In November 08, one unit had a serious fire and has
remained vacant since that time. It was purchased by DB&T's community development
corporation. HEART Program students gutted the burned interior and all new windows have
been installed.
DB&T also purchased three other units, and the City, using General Funds, has acquired the
remaining two rentals.
DISCUSSION
The project concept is to acquire and rehab all six rental units, then re-sell them as owner-
occupied town homes. We intend to achieve a unified exterior treatment of the building, with
similar windows, entry doors and stoops, lighting and landscaping, including a rear fenced
courtyard. Excepting the fire-damaged unit, we expect to complete interior rehab work in the
$35 000 range. Units have all been acquired at $36-38 000, excepting the burned unit, which
DB&T purchased for $12 000. Completed homes will be sold at $80 000 each. While no yard
or off-street parking is available, this is a handsome, historic building, with generously-sized
units. In this price range, we intend to market to singles or small families. Coupled with the
preferred financing available to Washington Neighborhood residents -including 10-year tax
abatements - we think it will be marketable as owner-occupied residences at this price. Total
mortgage, tax and insurance payments will be under $400 per month.
I-Jobs Funding
The I-Jobs program gives us the opportunity to fill the gap between the cost of acquiring and
rehabbing the units, at $110 000; and their estimated market value at completion. This gap is
projected at $30-40 000/unit. The application to IFA will request $240 000, or $40 000/unit,
which will initially be used as construction financing; at sale of the homes to individual buyers,
the I-Jobs funds will be passed through as secondary financing, as $40 000, 5-year forgivable
loans.
The City's Washington Neighborhood financing package will offer $40 000/unit, as a
combination of forgivable, deferred-payment and 0-interest loans.
Additional construction financing will be provided from the remaining $250 000 balance in the
IFA OurHome account for the recently-completed White Street condominium project. These
funds had initially been loaned by IFA to the City in the amount of $500 000; however, only half
that was needed by the developer.
With this combination of assistance, the income-qualifying buyers of the Washington rowhouses
-required to earn less than 80% of area median income -will need only to obtain private lender
mortgage financing in the amount of $40 000.
RECOMMENDATION
It is recommended that the Council approve the attached resolution, authorizing an application to
the Iowa Finance Authority for I-Jobs Affordable Housing Assistance Program funds in the
amount of $240 000. With this assistance, we can achieve objectives as stated in the Washington
Neighborhood Plan, including historic preservation, promotion of home ownership and
affordable housing benefit.
ACTION STEP
The action step for the Council is to adopt the attached resolution.
att
RESOLUTION N0. 477-09
RESOLUTION APPROVING A I-JOBS AFFORDABLE HOUSING PROGRAM
ASSISTANCE GRANT APPLICATION TO THE IOWA FINANCE AUTHORITY FOR THE
HISTORIC WASHINGTON ROWHOUSES PROJECT
Whereas, the State of Iowa has established a Housing Assistance Grant Program to
assist in the development of housing in the State of Iowa; and
Whereas, the City of Dubuque has initiated a Washington Neighborhood
Revitalization Project, beginning in 2005, committing resources for renewal of a depressed
downtown neighborhood; and
Whereas, the Washington Neighborhood Plan completed in 2009 supports
promotion of homeownership, historic preservation and provision of affordable housing;
and
Whereas, the City Council finds that the proposed application is acceptable and
necessary for the support of these initiatives.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. The City of Dubuque agrees to sponsor an Affordable Housing
Assistance Grant Program Application to the Iowa Finance Authority
for the Historic Washington Rowhouses project.
Section 2. That the Mayor is hereby authorized and directed to execute this
Resolution and application on behalf of the City of Dubuque- and
forward the executed copy to the Iowa Finance Authority.
Passed,
Atte t:
~.
Jdeanne Schneider, CMC, City Clerk
approved and adopted this 21St day of December, 2009.
Roy D. Buol, Mayor