Washington Street Row House Project_Iowa Finance Authority LoanMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: IFA Loan for Washington Street Row House Project
DATE: April 27, 2010
Dubuque
bitill
All-AmdicaCity
11111 '
2007
Housing and Community Development Department Director David Harris recommends
City Council approval of a $250,000 loan application through the OurHome Construction
Loan Program from the Iowa Finance Authority to assist with the row house project at
1765 -1795 Washington Street.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
ichael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David Harris, Housing and Community Development Department Director
Masterpiece on the Mississippi
TO: Michae� n Milligen, City Manager
FROM: David Harris, Housing and Community Development Department
SUBJECT: IFA loan for Washington Street Row House Project
DATE: 21 April 10
Recommendation
Dubuque
ksilal
AMmeiicacitr
111 r
2007
Introduction
The purpose of this memorandum is to request the City Council's approval of an
application for a $250 000 loan from the Iowa Finance Authority to assist with the row
house project at 1765 -1795 Washington Street.
Background
The Housing Department closed on the final row house apartment in January. Dubuque
Bank and Trust owns four units; the City owns two. A request- for - proposals for a buyer -
developer was issued, in March, and one response was received from Doug Horsfall.
Currently, Housing staff are preparing bids for removal of all lead paint from the
building, to make it lead -safe' for work by students from the HEART Program.
Discussion
To assist with construction financing for this project, the Housing Department submitted
an application to the Iowa Finance Authority (IFA) for a $240 000 I -Jobs Affordable
Housing Grant, in December; this has been approved. Additional financing is now being
sought from IFA, through their OurHome Construction Loan Program.
Our proposal to IFA is for the City to borrow these funds and in turn loan them to the
purchaser /developer, Horsfall, Inc. IFA has offered this as a 10 -year, 3% annual
interest, unsecured loan, under the "single family" category, as the row house units will
be sold as owner - occupied town homes. The developer will return 80% of IFA funds
borrowed, prorated per -unit, to the City upon the sale of each completed townhouse,
within 30 days of sale. The balance of funds will be due when the last unit is sold. The
City then returns these funds to IFA.
Buyer incomes for the town homes may not exceed 80% of area median income. For a
2 person household, this is currently $40 000.
It is recommended that the Council approve this application. We previously were
approved by IFA for a $500 000 OurHome loan, for the White Street condominium
project; the remaining unused balance in that loan is $250 000. And we previously
contracted with Doug Horsfall for the reconstruction and conversion of the White Street
building, with the result being exemplary living units and five new owner - occupants for
the Washington Neighborhood. The requested construction loan will be repaid under
the same arrangement as with the White Street project. With this combination of
developer and financing, we expect an equally successful project.
Action Step
The action requested of the City Council is to authorize the Mayor's signature on the
attached certification to the Iowa Finance Authority, to borrow up to $250 000 OurHome
Program funds for financing for the project at 1765 -1795 Washington Street.
Att.
CERTIFICATION OF APPLICANT
All of the information contained in the Application including the Exhibits is true, complete and
accurate and the Iowa Finance Authority may rely on this information and representations.
Applicant will comply with all applicable federal, state and local laws and regulations in
completing and operating the program, including, without limitation, and if applicable, local
zoning laws and codes, fair housing laws and local housing plans.
Proceeds of Single Family Rehabilitation Loan Funds will be used by the Applicant only for
eligible costs of the program.
Applicant has the ability and capacity to implement the program.
The program can be completed with the Single Family Rehabilitation Loan Funds requested and
other available resources as set forth in this Application, according to the Homeownership
Timelines shown as Exhibit 3.
Applicant hereby gives permission to the Iowa Finance Authority to research Applicant's history,
make credit checks, contact Applicant's financial institution and perform other related activities
necessary for the reasonable evaluation of this Application. Applicant understands that
information submitted to the Iowa Finance Authority relating to this application may be public
information.
IN WITNESS WHEREOF, the Applicant has caused this document to be duly executed in its
name on
APPLICANT
By
Printed Name Roy D. Buol
Printed Title Mayor, City of Dubuque
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