Community Housing Initiatives (CHI) Second Amendment to Agreement Copyrighted
January 22, 2019
City of Dubuque Consent Items # 13.
ITEM TITLE: Community Housing Initiative (CHI)Second Amendment to
Agreement
SUMMARY: City Manager recommending approval of the Seconded
Amendment to the Agreement between the City of
Dubuque and Community Housing Initiatives (CHI) to reflect
the increased amount of the City's contribution for the
remaining 16 units.
RESOLUTION Approving the Second Amendment to the
Agreement between the City of Dubuque, lowa
and Community Housing Initiatives
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt
Resolution(s)
ATTACHMENTS:
Description Type
Community Housing Initiative Second Amendment to City Manager Memo
Agreement-NNM Memo
Staff Memo Staff Memo
Second Amendment to Agreement Supporting Documentation
Agreement Supporting Documentation
AgreementAmendment#1 Supporting Documentation
Resolution Approving Amendment Resolutions
THE CITY OF Dubuque
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AIFA�erlwGh
UB E '�� III►
Masterpiece on the Mississippi Z°°'�w'2
7A13 2017
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Community Housing Initiatives Second Amendment to Agreement
DATE: January 14, 2019
On August 18th, 2014, City Council approved the partnership between Community
Housing Initiative (CHI), Dubuque Bank and Trust (DB&T) and the City Housing and
Community Development Department to restore approximately 40 units in the
Washington Neighborhood. CHI has purchased 30 properties, rehabilitated 24 and has
sold 24.
CHI has been actively working in the Washington Neighborhood by purchasing/
rehabilitating and reselling properties. City funds were used to assist in the
rehabilitation of these properties. As stated in the Agreement, the City has contributed
up to $25,000 per unit for the acquisition or rehabilitation portion of the project.
CHI has asked the City to provide the same contribution that is now provided to True
North for the rehabilitation of properties, which is $30,000 per unit, or an additional
$5,000 per unit.
Housing and Community Development Director Alexis Steger recommends City Council
approval of Amendment #2 to the agreement between the City of Dubuque and
Community Housing Initiatives to reflect the increased amount of the City's contribution
to $30,000 per unit for the remaining 16 units. This is an increase of$80,000 to the
original agreement. The funds are available from the Purchase/Rehab/Resell Capital
Improvement Project that are intended to further the CHANGE initiative. The funding
required CHI to sell rehabilitated units to homebuyers that make less than 80°k of the
area median income, and this requirement is part of Amendment #2 to the original
agreement.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
�� �� ���
Mic ael C. Van Milligen �� �
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Cori Burbach, Assistant City Manager
Alexis M. Steger, Housing and Community Development Director
David Harris, Community Housing Initiatives
2
�ubuque Housing and Community Development
TxE ciTY oF ��1 Assisted Housin Pro ram
AII�Americ�Ciry � g g
D�� � �����r � 350 W. 6�' Street, Suite 312
Dubuque, IA 52001
Masterpiece on the Mississippi 20°7�2°'� oaPORTUN'r"Y Office (563) 589-4230
wi��zoi,
TO: Michael C. Van Milligen, City Manager
FROM: Alexis M. Steger, Housing and Community Development Director
DATE: January 10, 2019
RE: Community Housing Initiatives Agreement, Second Amendment
BACKGROUND
On August 18t", 2014, City Council approved the partnership between Community Housing
Initiative (CHI), Dubuque Bank and Trust (DB&T) and the City Housing and Community
Development Department to restore approximately 40 units in the Washington Neighborhood.
CHI has purchased thirty (30) properties.
CHI has been actively working in the Washington Neighborhood by purchasing/rehabilitating
and reselling properties. City funds were used to assist in the rehabilitation of these properties.
As stated in the Agreement, the City has contributed up to $25,000 per unit for the acquisition
or rehabilitation portion of the project.
CHI has asked the City to provide the same contribution that is now provided to True North for
the rehabilitation of properties, which is $30,000 per unit, or an additional $5,000 per unit.
DISCUSSION
CHI has purchased thirty (30) properties, rehabilitated twenty-four (24) and has sold twenty-
four (24). They are currently rehabilitating six (6) additional properties. Of the thirty (30)
properties, twenty-one (21) of them were originally rental properties, and four (4) were
duplexes converted to single family homes.
Funding for the additional $5,000 per unit, for the remaining 16 units will be provided from
Housing TIF funds. These funds are available from the Purchase/Rehab/Resell Capital
Improvement Project that are intended to further the CHANGE initiative. This funding requires
CHI to sell rehabilitated units to homebuyers that make less than 80% of the area median
income. This requirement is part of Amendment #2 to the original agreement. The amendment
also shows the increased commitment by the City of Dubuque for an additional $80,000.
RECOMMENDATION
I respectfully request City Council approve Amendment #2 to the agreement between the City
of Dubuque and Community Housing Initiatives to reflect the increased amount of the city's
contribution to $30,000 per unit, for the remaining 16 units. This is an increase of $80,000 to
the original agreement.
Prepared by Alexis Steger, Housing & Community Devel., 350 W. 6th St. Suite 312, Telephone: 563-690-6072
Return to: Kevin Firnstahl, City Clerk Address: City Hall- 50 W. 13th St Telephone: 589-4121
RESOLUTION NO. 27-19
APPROVING THE SECOND AMENDMENT TO THE AGREEMENT BETWEEN THE
CITY OF DUBUQUE, IOWA AND COMMUNITY HOUSING INITIATIVES
Whereas, the City of Dubuque, Iowa (City) and Community Housing Initiatives (CHI)
entered into an Agreement dated for reference purposes on the 1st day of July, 2016;
and
Whereas, City and CHI amended the Agreement, First Amendment, on November
6th, 2017; and
Whereas, City and CHI desire to amend the Agreement as set forth in the attached
Second Amendment to the Agreement; and
Whereas, the City Council believes it is in the best interests of the City of Dubuque to
approve the Second Amendment to the Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. The City of Dubuque hereby approves the Second Amendment to the
Agreement between the City of Dubuque and Community Housing Initiatives, a copy of
which is attached hereto.
Section 2. The Mayor is authorized and directed to sign the Second Amendment to
the Agreement on behalf of the City of Dubuque.
Passed, approved, and adopted this 22nd day of January 201
Attest:
Kev4riS. Firnstahl, Cit Clerk
Roy D. Buol, Mayor
SECOND AMENDMENT TO THE
AGREEMENT BETWEEN
THE CITY OF DUBUQUE
AND
COMMUNITY HOUSING INITIATIVES, INC. -
WASHINGTON NEIGHBORHOOD HOUSING PARTNERSHIP
THIS SECOND AMENDMENT TO THE AGREEMENT (this "Second Amendment")
is made and entered into effective as of the 22nd day of January, 2019, by and between.
THE CITY OF DUBUQUE, IOWA ("City") and Community Housing Initiatives, Inc., an
Iowa non-profit organization ("CHI"). City and CHI sometimes referred to herein as the
"Parties".
RECITALS
A. City and CHI have entered into a certain Agreement with an effective date of July
1, 2016, a copy of which is attached hereto as Exhibit A (the "Agreement").
B. City and CHI amended the Agreement with an effective date of November 6th,
2017, a copy of which is attached hereto as Exhibit B (the "First Amendment")
C. City and CHI now desire to amend certain of the terms of the Agreement.
NOW, THEREFORE, for good and valuable consideration, the sufficiency of which
is hereby acknowledged, the Parties agree as follows:
1. Section 1 of the Agreement is amended as follows:
Section 1. Funding.
CHI agrees to provide a minimum of $800,000 and secure a construction loan from
Dubuque Bank and Trust ("DBT") in the amount of $500,000.
The City agrees to invest with CHI $830,000 for the purpose of the Project in
Dubuque's Washington Neighborhood as part of a comprehensive neighborhood
revitalization initiative. The City funding shall be in the form of payments toward
the rehabilitation costs of each unit up to, but not more than $30,000, and in no
event to exceed the total rehabilitation cost per unit.
CHI may begin accessing City funding upon completion of at least 25% of the work
per unit as outlined in Section 2. The remaining funds may be requested upon
50% completion, 75% completion and upon final completion of each unit. Funding
requests to the City shall be in writing and include supporting documentation of
work completed.
Upon the sale of all residential units completed for the Project under this
Agreement, the aggregate sales proceeds received will be distributed in the
following order:
1) Dubuque Bank & Trust Loan
2) CHI Developer Fee and expenditures as outlined in Section 2
3) Any remaining funds (profit) must be used for the purchase,
rehabilitation, and resale of additional residential units, or such other use
that is approved by the City in writing.
2. Section 2 of the Agreement is amended as follows:
Section 2. Scope of Work
CHI obligations:
There will be income restrictions with respect to buyers purchasing
residential units rehabilitation through this agreement, for no less than
three residential units. Homebuyers for three residential units will be
required to be below 80% of median income guidelines, with a focus on
first-time homebuyers.
Section 3. Effect of Second Amendment. Except as specifically amended herein, all
of the terms and provisions of the Agreement are hereby ratified and affirmed to be in full
force and effect as of the date hereof. To the extent of any conflict between the
Agreement, the First Amendment and this Second Amendment, the terms and provisions
of this Second Amendment shall govern and control.
Section 4. Counterparts. This Second Amendment may be executed in one or more
counterparts, each of which shall be an original, but all of which when taken together shall
constitute one in the same instrument binding on all parties. Delivery of a signed
counterpart by facsimile transmission shall be effective as delivery of a manually signed
counterpart of this Second Amendment.
IN WITNESS WHEREOF, the parties have executed these presents the day and year
first above written.
City of Dubu ue, Iowa Community Housing Initiatives, Inc.
By:.4'ii67
By:
Name: Roy (Buol Name:
Title: Mayor Title:
Ata�EEME�IT � IEEN
THE CITY OF DIJ�lJQlJE
AND
CV' 1YILJB'tll� f-I�Vm7'1"iV� I�'1't11IY�ti7' 06i4. � �....
16'VASHIN��'flN NEI�H�ORM�t�D N(�IJS�INC PA�TNERSMIP
�if���ti�e pat�: �..� _..._�. ___.�._.._Ju�1..�.016.__._.__,� �m.�.
This Agreem�nt is made by �s�d between the Ci�y of D�buque, iowa ("City„) an� ��rrern�nity
Housing Initiatives, In�. ("CH!"} and shall b� effective beginnimg on th� above efFective date and
r�rnain in effect until June 30, 2D24, or for a period of f�ur (4) full ye�rs fr�am the �ffective date
�b�ve, w�ichever is 1a#er. '
"fhis Agreetn�nt outlines th� t�rms and c�ndi#ians under which the City shalE snvest funding with
Ch11 to ��sist with the �cquisiti�n, rehabili�ation and resale of residential units la�afied in the :
Washington �l�ighborhood (hereina�ter th� "Praj��t°').
F�r purposes of this Agr�em�n#the Washington �J�ighborhaad i� def�n�d to inelude:
Centr�! Avenue starting at E�st 22"d �tr�et South d�wn to East �11h Street, then East 19t" 5treet
East to Elm Stre�t, Elm 5treet Idarth until East 20t" Street & Rhomb�rg Av�nue, Rhomb�rg
Av�nu� East to Kr�iest Stree#, Kniest Stre�t N�rth tc► Eas�22"d 5tree�and back to Central Avenue. '
In co�sideration of the mutual representation� and obligatians hereunder, t�e City �nd GHI �gfee
as foll�ws:
�ectio� °1. �uncling '
CHl agrees to previde a minimum of �2,472,00� of ifis re�ouraes ��dlor from a canstruction loan
line �a�credit.
1`h+� Ci�jr agr�es ta inve�t with CHI �60p,C?Q� f�r the purpase af the Project 'sn C�ubuque's
Washington N�ighbarh�od as p�rt of a comprehensive neigh�orhr�od r�vitalizatian initiative. The
City funding ��all �e in the form af paym�nts toward the aaqui�ition and/ar r�habi6i�ati�n costs of
each unit up to, but not more th�n $25,000, and in na event to �xce�d the total rehabiEifatir�n cast
per unif. The City funding will b� provided to CH) over four years, in an annu�) amount not to
exc�ed $225,oaa in ye�r one and $125,UOU plus unused funds from year on� in years two
through fottr and is subject to inclUsian in the adapted City budg�t over the term af the
Agreement.
CH) may begin accessing City funding upon completion of at least �5°l0 of the work p�r unit as
autlined in Section 2. The remaining funds may be requested upan 50% camplefiian, 75%
completion and upon �nal cornpletion af eac�r unit. �unding reques#s ta the City shall be in
writing and include suppar#ing dacumentation of work completed.
Upon the sale of al1 residenfiial units completed for the Project under this Agreem�nt, th�
aggregate sales proceeds received wilt be dis#ributed in the following order:
1) Dubuque Bank &Trust l�aan
2) CMI Devel�per Fee �nd expenditures as ou#lined in Section 2
3) Any rerr�aining fund� (profit) must be used for the purchase, rehabilitati�n, and resale afi
addi#ional residential units, or such ather use that is ap�roved by the City in writing.
��ct[on 2. Sc�p� of 1ti�ork
CHi C3bliqations:
. + CHI agre�s t� acquire, rehabilita#e and resell a minimum of twenty-faur (24) total
resident�al units during the #e�m �f this Agreement (hereinafter the "Minimum
Improvements"}. A resid+�ntial unit can be a single-family structure or multi�unit structure
as lon� as the intent is for th� resale of the �ousing uni�{s). Each unit within a multi-unit
structure, such as a dupl�x, shall constitute a residenti�l unit. Homes purchased by CHI
before the effective date af the Agreement are c�nsid�red part af the Project and therefore
are included t�wa�rd th� 2� residenti�i unit requirement ur�der t��Agr�erxaent. '
� Acqui�ition of at I�ast tw�nty-four {24) t�tai re�idential unit� sh�ll be �ompi�t�d by th� +�nd
date of this Agre�ment. The Minimum Impravements wiil be completed in accardanc� with
all federal, �taf�, �nd fo��l l�ws and be fintsh�d w�thin six {6) manths after th� expiratio� ofi '
this Agreemenfi. :
m Exhibit A outlines the �stim�t�� budg�t fior c�mpBetion of the �alinimum Improv�ments
thraugh a detailed Sc�pe of Work.
� CHI agrees to rn�6ntain th� properties during the cours� af the Praject including, b�t n�t ,
limi#�d ta lawn car�, snaw remar�al, mainten�nce and making sur� prr�perrtyy remains clean
during constru�tian.
� CHI will maintain insurance in accardanc� with the pr�visians of this Agreement and �s
autlined in Se�tion 5.
• CHi agrees tc� maintain accurate rac�rd� that include de�ailed costs associated with th�
Pr�ject and Minimum Improvements as well �s proceeds r�c�ived fram the sale �f each
resid�ntial unit. in addition, all cost and sales records will accompany ail r�quests to draw
from City funds.
• CHI wi1{ d�termine the selling priae of residenti�l units. Factars d�termining the seiling
priee m�y include casts incurred and the appraised value of th� rehabilitated residential '
units.
• Ther� will b� n�a income restrictions with respect to buyers purcha�ing residential units
rehabilitated through this Agreernent. ,
Citv dbli a#i+ans:
• Assist CHI with initia! inspectian of residentiai units to be purc4�ased by CHI as part of'the
Project.
• D�velop minimum improvements documents for r�habifita#ion inciuding scope of work,
drawingslspecifications and bid packages fc�r CN1 to distribut� to contractars. City will also
prepare contract� for ali cantr��tors and send once sign�d fio �HI.
� Assist CHI with making c�rt�in C�ntractars kesp prop�rty cleaned up through construction.
• Rehabilitation Inspe�tor and Supervisor will p�rf'�rm �nal insp+�ctians with CHI #a assure
satisfactvey wc�rk c�mpleted by th� Cantractor(s}.
��cti�n 3. roject ��dget
Exhi�it A heret� represen�s a �cope of lN�rk budget estEmat� fgr the Minimum Irnprovement�
required for cornpY�tion of the Project. '
��ctica� &. ir�derr�na�c�tiar�
CHt sh�11 ind�mnify, defend and hold h�rmless the City, it� gover�ing bady, d�partm�nt�,
officials, employees and ag�nts from and again�t all Siability, claims, actions, damages, losses
and expenses arising out of the Ci�y'�work in perF�rming it� o��igations under fi�is Agreernent.
S�ctior� 5. I��ur��ce
1. Pro e�rty Insuran�e.
a. �Fil must provid� and maintain or caus� t� be maintained at all times during
the Project at its sole cost and expense btai(d�r's risk snsurance, vuritten on a
Comple#ed Value �orm in an amount �qual to one hundred percent (100°!�j
of th� buildings replacem�nt vaiue�, inciuding improvements, when
canstructian is c�mpleted. Coverage sh�il include the "special perils" f�rm
�nd CHI shall furnish City with praofi o� insurance in the farm of a certificate
of insurance,
b. Upon camp(etion ofi the Project and up tc� the Termination Date, CHI shall
m�intain, or cause tQ be maintained, at its c�st and exp�nse property :
insurance against loss andlor damage to the buildings {inciuding the
Minimum lmprovements} under �n insurance policy writken with the "speciaS
p�rils" form and in an amount not less than the fuil insurable replacernent
value of the buildings {including th� Minimum Improvements). CHI shall
furnish ta City praof of insurance in th�form of a certificate of insurance. '
c. Th� term "r�placement value" shall rnean the actual r�placement cost af th� :
buildir�g with Minimum Improvements �excluding foundatian and excavation
�osts and costs of undergr�und fluss, pipes, drains �nd oth�r unins�arabie :
items) and equipment, and shall be r�as+anably determined from #ime to time
at the request af City, but not mar� frequently than �nce every three (3)
years.
d. CH! shall notify City immediately in #he case af damac�e exc��ding $50,00�
�n amc�unt to, ar destruction of, the Minimum Irnpravements c�r any partion
thereof resulting from �re or other c�suaity. N�t proceeds of any suct�
insurance {N�t Proceeds}, shail b� paid dir�ctly ta CHI as its int�rests may
�ppear, and CWI shall f�rthwith repair, recanstrucf �nd restare the Minsmum
Improver��nts to substantially th� sam� ar an improved conditivn ar vafu� as .
they �xisted pri�r to the ev�nt causing such damage and, ta the �xtent ;
nece�s�ry �o accamplish such repair, rec�nstruction and r�storation, CHI
shall apply the Net Pro���ds of any insuranc� r�lating to such damage ,
rec�ived by CH! ta th� payr��nt or reimbursement of the co�ts thereof,
subject, however, t� the #erms of �rty mc�rkgage encumbering title to the
F'r�perty {as its int�rests may �ppear). CF11 shall c�mplet� the repair,
r�constructian and restaratican �f Minimum Improv�m�nfs whether or nat the
Net Proceeds of insurance received by CH! f�r such purposes ar� suffici�nt.
2. Liability fnsurar�ce. CHI rnust m�intain a �ommercial general liability insuran�e
p�li�y wit� coverage and limits not I�ss than th�fall��ving:
G�r�eral Aggregat� Lirni# �2,OOQ,000
Pr�ducts-Completed operations Aggregate l.imit �1,040,000
P�rs�n�� �nd Adverti�ing In�ury Limit $1,00O,OOD
Each �ccurr�nc� $1,000,000
Fere Damag� Limit (any one ��currence) $50,000
M�dic�l Payments $�,t�0{� ;
�e�ti�� �. �rrn�ndrro+���
This Agreement may be modsfied nr amer�ded only ir� writing by a duly authorized representative
and ex�cuted by bofih CHI and City. It may nofi be amended or modified by or�l agreement or
understanding b�tween the p�rties unless th� same shall be in writing, duly approved, and
�x�cuted by both parties.
�Secti�n 7. Parties I�oua�d
The covenan�s and conditions herein cantained shall app4y to and bind the lega! representatives,
successors, �nd �ssigns ofi all c�f the parties hereto, and all c�f the parkies heret� shall b� jointly
�nd severally li�ble €�ereunder.
Secfiion �. Noti�es
P►!I notices ar demands t� be given, made, or sent, or whicli may be giv�n, made, ar s�nt by on�
party to the other �nursuant to this Agr�em�nf sha11 be deem�d to have been given, made, or sent
wh�n rnade in writing, �nd deposit�d in the U.�. mail, certified and postage pr�paid, �ddressed
as fa�llows:
a. Ta City: City of D�bt�que
Housing & Community Devefapment '
Attn: Alvin t�ash, Housing Dir�ctar
350 W�st 6t" Street, �uit� 312 :
Dubuque, lA 52003
b. To CNt: CHI
D�u� La�aunty "
3�� East Gourt Avenue
D�s Moin�s, IA �0309 :
The addr�ss ta which any natice, d�rnand, or o#l��r writing may be giv�n, rnade, ar sent by a�y ���"'
p�r#y a� �bav� provided may be chan�ed by writt�n notice given by such party as above
pr�vid�d. ;
���tion 9.'Termi�ati�r�
�ith�r par#y may #erminate the Agreement for any rea�an by providing sixij+ {60) d�ys written
notice. Howev�r, termin�tion daes nat pr�ciude �HI'� �bligation to repay th� City f�r its
inv�stm�nt up to th� dafe of terminati+�n f�r ham�� not comp6eted under the Agreement, nQr the
�i�y's abligation ta reirinburse CHI f�r w�rk completed througl� the date c�f terminatian by the City.
Addifiional�y, #errninatian do�s �o# preclude the parties frarn me�ting any o#her obligatiae�s under
th+�A�re�ment far work started pric�r to the d�te of t�rmi��ti�n which mu�t be c�mpleted.
���tion �p. ��u�rr�ir�g �aw
This Agr��ment will be gav�rned by �nd constru�d ir� accordanc� wi#h the laws of the 5tate �f
low�.
S+��fiion 11. Severability
If any t�rm, covenant, or condi#ic�n c�f this Agre�m�nt is held by a caurt of competer�t jurisdiction to
be invalid, or unenforc�abl�, th� rest of th� Agreement will remain in �fuil for�e and efFect and will
in no way be affected, impaired, or invalidated, uni��s such enforcement will frustrate the purpose
of this Agr�ement,
�e�tion 12. Force lVlajeure
tn fhe event that either party hereto wiH be delay�d ar hindered in �r prev�nted from the
performance of any act requir�d hereunder by reason �f strikes, lockouts, labor troubles,
unavailabili�y or excessi�e price af fuel, pr�wer fiaiture, riots, insurrec#ian, war, t�rrorist �ctiuities,
chemic�l �xplosions, hazardous cor�diti�r��, �re, w�ather or acts of Uad, ar by reason of a�y
oth�r ca�se beyond #h� excfusive and reasonabie cc�ntrol of th� party delayed in perfarming work
or doing �cts r�quired und�r the t�rms af this Agr�ement, th�n perfarm�nc� �f such act will be
excused for the peric�d of #i�� del�y and the period f�r th� p�rfarrn�n�� of any such act will be ,
�xt�nd�d for a peri�d equivalent t�th� period a��uch d�lay.
����i�� 13. �ar��rap1� Nead6r���
TF�e titl�� to th� p�r�gr�phs of this Agr�em�nt are sc�lsly �f�r th� canvenience af th� p�r4me� �nd
wiil na# b� used to �xplain, modify, �implify, or �id in the interpret�tian of the pr�visio�s c�f this
Agreern�nt.
����ic�n ��4. Entir�Agr�� ent
Ths� Agr��m�nt cansti#ut�s #he ent�re ,�gre�ment between the p�rties, and �ny pcier
und�rstar�di�g o� repr�s�n#a#ion �f �ny kind preceding the d�#e of this Agr�em�nt sh�i! n�t b�
binding o� �it��r party �xce�t tc�th�ext�nt incorpor�t�d in thi�Agreem�nt.
IIV W67NE�S W�6E��QF, th� partie� h�v� ex�c�t�d tl�ese pr��ents #h� ��y �nd y�ar�irst ab�v�
wri�ten.
�i� of��a�u��� w� ��r�mu�ii.y �! F i�tiv��, �n�.
� �.��.��
,
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�y�m�: Roy . auo t N�rne: �c�u E.a��un ,
T`�tl�: Mayor Title: Presiden#
_�_�8/15/16 �.-..__.____.�. ._.__�.._
_.._�...�.�.� _�.._._..__�_�..�__�_ ._..�.e_��.���,�..,._...�n����.
� �
FIRST AMENDMENT TO THE i
AGREEMENT BETWEEN
,
THE CITY OF DUBUQUE �
AND
COMMUNITY HOUSING INITIATIVES, INC. -
WASHINGTON NEIGHBORHOOD NOUSING PARTNERSHIP
(
THIS FIRST AMENDMENT TO THE, AGREEMENT (this "First Amendment") is
made and entered into effective as of the��day of , 2017, by
and between THE CITY OF DUBUQUE, IOWA ("City") and Community Housing
Initiatives, Inc., an lowa non-profit organization ("CHI"). City and CHI sometimes referred
to herein as the "Parties".
RECITALS
A. City and CHI have entered into a certain Agreement with an effective date of July '
1, 2016, a copy of which is attached hereto as Exhibit A (the "Agreement"). I�'
��
i
B. City and CHI now desire to amend certain of the terrns of the Agreement. ,
NOW, THEREFORE, for good and valuable consideration, the sufficiency of which �j
is hereby acknowledged, the Parties agree as follows; "
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1. Section 1 of the Agreement is amended as follows: li
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Section 1. Funding. '
CHI agrees to provide a minimum of$800,000 and secure a construction loan from !
Dubuque Bank and Trust ("DBT") in the amount of$500,000.
The City agrees to invest with CHI $750,000 for the purpose of the Project in ;
Dubuque's Washington Neighborhood as part of a comprehen�ive neighborhood
revitalization initiative. The City funding shall be in the form of payments toward i
the rehabilitation costs of each unit up to, but not more than $25,000, and in no �
event to exceed the total rehabilitation cost per unit.
CHI may begin accessing City funding upon completion of at least 25% of the work
per unit as outlined in Section 2. The remaining funds may be requested upon
50% completion, 75% completion and upon final completion of each unit. Funding
requests to the City shall be in writing and include supporting documentation of
work completed.
Upon the sale of all residential units completed for the Project under this
Agreement, the aggregate sales proceeds received will be distributed in the
following order:
1) Dubuque Bank & Trust Loan ,
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2) CHI Developer Fee and expenditures as outlined in Section 2 �
3) Any remaining funds (profit) must be used for the purchase,
rehabilitation, and resale of additional residential units, or such other use
that is approved by the City in writing. �
2. Section 2 of the Agreement is amended as follows: �
Section 2. Scope of Work ���
CHI Obliqations: !'
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• CHI agrees to acquire, rehabilitate and resell a minimum of twenty (20) ;
residential units during the term of this Agreement (hereinafter the `'
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"Minimum Improvements"). A residential unit can be a single-family �
structure or multi-unit structure as long as the intent is for the resale of the ;�
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housing unit(s). Each unit within a multi-unit structure, such as a duplex,
: shall constitute a residential unit. ;�
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Acquisition of at least twenty-four (24) residential units shall be completed ��
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by the end date of this Agreement. The Minimum Improvements will be 'j
completed in accordance with all federal, state, and local laws and be '',
finished within six (6) months after the expiration of this Agreement. ��
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• Exhibit A outlines the estimated budget for completion of the Minimum jI
Improvements through a detailed Scope of Work. ;;
• CHI a rees to maintain the ro erties durin the course of the Pro'ect �'
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including, but not limited to lawn care, snow removal, and maintenance. ��,
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• CHI will maintain insurance in accordance with the provisions of this I
Agreement and as outlined in Section 5. b
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• CHI 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. Costs can include �
any reasonably allocable cost, including, but not limited to purchase cost, �
rehabilitation, interim maintenance costs such as grounds maintenance, �
property taxes, relocation, insurance, legal, real estate commissions and
marketing. CHI staff time cannot be allocated to residential units' costs.
However CHI may retain a developer fee of$2,500 per residential unit. CHI
agrees to provide the City access to its records upon request. In addition,
all cost and sales records will accompany all requests to draw from City
funds. �
• CHI 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. �
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• Follow all CDBG requirements (ex: environmental reviews; SHPO approval
and rehabilitation according to City of Dubuque Rehab Program Standards.
• Make sure all permits are taken ouf prior to work beginning and have
finalized when that particular work is completed. (Ex. new furnace, roof, �
etc.) �
• There will be no income restrictions with respect to buyers purchasing �
residential units rehabilitated through this Agreement, however the main ,
focus of homebuyers will be first-time low/moderate income buyers below
80% of inedian income guidelines. i�
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Citv Obligations
• Assist CHI with initial inspection of residential units to be purchased by CHI i
as part of the Project. ;
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• Develop Minimum Improvements documents for rehabilitation including !
scope of work, drawings/specifications and bid packages for CHI to I'
distribute to contractors, after reviewed by Rehabilitation Supervisor. City �
will also prepare contacts for all contractors once signed to CHI. �
• Will perform Environmental Reviews and prepare paperwork for SHPO �
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• Assist CHI with making certain Contractors keep property cleaned up l;
through construction. p
• Rehabilitation Inspector and Supervisor will perForm final inspections with
CHI to assure satisfa�tory work completed by the Contractor(s).
Section 3. Effect of First Amendment. Except as specifically amended herein, all of
the terms and provisions of the Agreement of June 1, 2016 are hereby ratified and
affirmed to be in full force and effect as of the date hereof. To the extent of any conflict
between the Agreement and this First Amendment, the terms and provisions of this Firs
Amendment shall govern and controL
Section 4. Counterparts. This First Amendment may be executed in one or more
counterparts, each of which shall be an original, but all of which when taken together shall
constitute one in the same instrument binding on all parties. Delivery of a signed
counterpart by facsimile transmission shall be effective as delivery of a manually signed
� counterpart of this First Amendment.
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IN WITNESS WHEREOF, the parties have executed these presents the day and year �
first above written.
City of Dubu e, lowa Community Housing Initiatives, Inc.
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Name: Roy� D. auol Name: �
Title: Mavor Title:
11/6/2017 I
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RESOLUTION NO. -19
APPROVING THE SECOND AMENDMENT TO THE AGREEMENT BETWEEN THE
CITY OF DUBUQUE, IOWA AND COMMUNITY HOUSING INITIATIVES
Whereas, the City of Dubuque, lowa (City) and Community Housing Initiatives (CHI)
entered into an Agreement dated for reference purposes on the 1 S� day of July, 2016;
and
Whereas, City and CHI amended the Agreement, First Amendment, on November
6�h, 2017; and
Whereas, City and CHI desire to amend the Agreement as set forth in the attached
Second Amendment to the Agreement; and
Whereas, the City Council believes it is in the best interests of the City of Dubuque to
approve the Second Amendment to the Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1 . The City of Dubuque hereby approves the Second Amendment to the
Agreement between the City of Dubuque and Community Housing Initiatives, a copy of
which is attached hereto.
Section 2. The Mayor is authorized and directed to sign the Second Amendment to
the Agreement on behalf of the City of Dubuque.
Passed, approved and adopted this 22"d Day of January, 2019.
Roy D. Buol, Mayor
Attest:
Kevin F. Firnstahl, City Clerk