Authorization to File and Release Mortgages and Property Liens, Etc., for Housing Program Properties Copyrighted
August 17, 2020
City of Dubuque Action Items # 2.
City Council Meeting
ITEM TITLE: Authorization to File and Release Mortgages and Property Liens for
Housing Programs
SUM MARY: City Manager recommending authorization for the City Manager or the
City Manager's Designee to file, modify and release mortgages, liens or
other financial instruments for properties that are participating in Housing
Programs.
RESOLUTION of the City of Dubuque approving authorization for the
City Manager or the City Manager's designee to file and release liens on
properties participating in housing programs.
SUGGESTED Suggested Disposition: Receive and File;Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
Description Type
Authorizatons re Financial Instruments on Properties City Manager Memo
Participating in Housing Programs-MVM Memo
Staff Memo Staff Memo
Resolution Resolutions
Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Authorization to File, Modify and Release Mortgages, Liens and Other
Financial instruments on Properties Participating in Housing Programs
DATE: August 12, 2020
Housing and Community Development Director Alexis Steger recommends City
Council authorizations for the City Manager or the City Manager's Designee to file,
modify and release mortgages, liens or other financial instruments for properties
that are participating in Housing Programs.
The Housing and Community Development Department maintains a loan portfolio of
over 500 loans, and administers programs requiring the filing of 50-100 liens for
forgivable loans that are not part of the portfolio, per year. The burden reviewing
these loans and liens already resides with the Housing and Community
Development Director and Housing employees. Requiring the City Council approve
each disposition of these liens is impractical, and in some situations, getting items
on a Council agenda has delayed a transaction which could have easily been
handled if staff had the ability to approve. The Housing Programs are highly
regulated and audited on a regular basis for compliance with regulations. The City
Manager is provided with summaries and updates on the program and all outcomes
of those programs annually at a minimum.
The City Manager and Housing and Community Development Director are currently
authorized to enter into similar loan agreements for the Lead & Healthy Homes
Program and the Bee Branch Healthy Homes Program, as well as release the lien
or mortgage when the term and agreement has been fulfilled. However, HUD
continues to grant funding for new programs in the City of Dubuque that require
similar City interest in real estate. Therefore, it is prudent to consider authorization
for all such real estate interests and instruments be provided for all such programs.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Michael 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
2
Dubuque
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TO: Michael C. Van Milligen, City Manager
FROM: Alexis M. Steger, Housing and Community Development Director
DATE: August 11, 2020
RE: Authorization to File, Modify and Release Mortgages, Liens and other
Financial Instruments on Properties participating in Housing Programs
INTRODUCTION
The purpose of this memo is to request City Council consider authorizing the City
Manager or the City Manager's Designee to file, modify and release mortgages,
liens or other financial instruments for properties that are participating in Housing
Programs.
BACKGROUND
For over twenty years the City of Dubuque has received grant funding from the U.S.
Housing and Urban Development Department (HUD) and the lowa Finance
Authority to assist in making residential housing units in the City of Dubuque safer,
healthier and lead safe. These programs help first-time homebuyers with down
payments, rehabilitate homes, and remediate lead hazards for low to moderate
income residents. These programs require the City of Dubuque to enter into loan
agreements with residents, file liens, and enter into contracts for construction on a
private home.
DISCUSSION
The Housing & Community Development Department maintains a loan portfolio of
over 500 loans, and administers programs requiring the filing of 50-100 liens for
forgivable loans that are not part of the portfolio, per year. The burden reviewing
these loans and liens already resides with the Housing & Community Development
Director and Housing employees. Requiring the City Council approve each
disposition of these liens is impractical and in some situations getting items on a
Council agenda has delayed a transaction which could have easily been handled is
staff had the ability to approve. The Housing Programs are highly regulated and
audited on a regular basis for compliance with regulations. The City Manager is
provided with summaries and updates on the program and all outcomes of those
programs annually at a minimum.
1
The City Manager and Housing & Community Development Director are currently
authorized to enter into similar loan agreements for the Lead & Healthy Homes
Program and the Bee Branch Healthy Homes Program, as well as release the lien
or mortgage when the term and agreement has been fulfilled. However, HUD
continues to grant funding for new programs in the City of Dubuque that require
similar City interest in real estate. Therefore, it is prudent to consider authorization
for all such real estate interests and instruments be provided for all such programs.
RECOMMENDATION
I respectfully request City Council authorize the City Manager, or his designee,
to enter into and release City of Dubuque interest in real estate which has
participated in grant funded housing programs.
cc: Crenna Brumwell, City Attorney
2
Prepared by Alexis Steqer.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:(563)589-4100
RESOLUTION NO.261-20
A RESOLUTION OF THE CITY OF DUBUQUE APPROVING AUTHORIZATION FOR
THE CITY MANAGER OR THE CITY MANAGER'S DESIGNEE TO FILE AND
RELEASE LIENS ON PROPERTIES PARTICIPATING IN HOUSING PROGRAMS is8
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WHEREAS,THE CITY OF DUBUQUE,Iowa by and through its Housing &Community
Development Department,executes property liens and mortgage instruments on behalf
of the City;and
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WHEREAS,the various lien and mortgage instruments create an interest by the City
in the various parcels of real estate which have been rehabilitated or repaired under the
eligible activities and other applicable standards in grant funded housing programs;and
WHEREAS,the City is frequently requested to modify or dispose of its interest in said
real estate after the property owner has fulfilled the financial and other obligations of their
lien and /or mortgage instrument;and
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:3WHEREAS,it is impractical to have each such modifications and dispositions
approved by the City Council.;
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NOW,THEREFORE ,BE IT RESOLVED.BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE,IOWA THAT:
Section 1.The City Manager,or his designee,is authorized to modify or release the
City of Dubuque’s interest in real estate which has participated in grant funded housing
programs.
Section 2.The authorization shall apply to all future modifications,dispositions,and
releases as well as to any here-to -fore disposed of by the Housing &Community
Development Department as part of all grant funded housing programs.
Passed,approved,and adopted this 17th day of August 2020.
±1fj~Roy D.Buol,Mayor
Attest:
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Kevin S.Firnstahl,Cfity Clerk