Sale of City-Owned Property at 1293 Walnut_Initiate Copyrighted
January 19, 2021
City of Dubuque Items to be set for Public Hearing # 2.
City Council Meeting
ITEM TITLE: Sale of City-Owned Property at 1293 Walnut
SUM MARY: City Manager recommending approval of a resolution declaring the City's
intent to dispose of property at 1293 Walnut Street and setting the date
for public hearing for February 1, 2021.
RESOLUTION Intent to dispose of an interest in City of Dubuque real
estate, setting a time and place for hearing and providing for the
publication of notice thereof
SUGGESTED Receive and File;Adopt Resolution(s), Set Public Hearing for February
DISPOSITION: 1, 2021. Suggested Disposition:
ATTACHMENTS:
Description Type
Set Public Hearing on 1293 Walnut Sale-MVM Memo City Manager Memo
Staff Memo Staff Memo
Resolution Setting Hearing Resolutions
Public Notice of Hearing Supporting Documentation
Purchase Agreement- Draft Supporting Documentation
Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Sale of City-Owned Property at 1293 Walnut
DATE: January 14, 2021
Housing and Community Development Director Alexis Steger recommends City Council
approval of a resolution declaring the City's intent to dispose of property at 1293 Walnut
Street and setting the date for public hearing for February 1, 2021.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Mic ael C. Van Milligen
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Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Alexis M. Steger, Housing and Community Development Director
Dubuque
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TO: Michael C. Van Milligen, City Manager
FROM: Alexis M. Steger, Housing and Community Development Director
SUBJECT: Sale of City-owned property at 1293 Walnut
DATE: January 14, 2021
Introduction
The purpose of this memorandum is to request the City Council to set a Public Hearing
for the purpose of disposing of City-owned real property located at 1293 Walnut Street.
Backqround
The property at 1293 Walnut Street has been a problem property for over a year. The
City took legal action by petitioning the courts for ownership, which was granted in
December 2020. Immediately after gaining ownership the porch collapsed; however, the
property is still viable for rehabilitation.
Discussion
An offer has been made by Affordable Housing Network to purchase the property at
1293 Walnut Street and the adjacent lot obtained through City petition.
This property was identified to have great potential to rehabilitate and sell it to an
income-qualifying household under 80% median income. The City strives to provide
affordable homeownership opportunities throughout the City of Dubuque. The
Affordable Housing Network, Inc has partnered with the city to further this goal.
Recommendation
I respectfully request the City Council approve the attached resolution, declaring the
City's intent to dispose of the property and set the date for the public hearing to receive
comments on the proposed sale.
Prepared by Alexis Steger, Housing & Community Devel 350 W 611 St Suite 312 (563) 690-6072
Return to Adrienne N. Breitfelder, City Clerk, 50 W. 13th St., Dubuque, IA 52001, (563) 589-4100
RESOLUTION NO. 16-21
INTENT TO DISPOSE OF AN INTEREST IN CITY OF DUBUQUE REAL ESTATE,
SETTING A TIME AND PLACE FOR HEARING AND PROVIDING FOR THE
PUBLICATION OF NOTICE THEREOF
WHEREAS, the City of Dubuque, Iowa (City) owns 1293 Walnut (the Property)
legally described as:
The Easterly 150 feet of Lot 5 of the Subdivision of Out Lot 740 in the City of
Dubuque, Iowa; and Lot 15 & the Northerly Y2 of Lot 14 in "F. E. Bissell's
Dubuque, being the South half of Out Lot 740" in the City of Dubuque, Iowa,
according to the recorded plats thereof; and
WHEREAS, the City acquired the Property by petition as an abandoned property for
the purpose of its restoration and re -sale for owner -occupied housing; and
WHEREAS, the City received an offer to purchase this property from Affordable
Housing Network, Inc; and
WHEREAS, by accepting the selected offer the City's objectives of providing
homeownership to an income qualified buyer and rehabilitation of a vacated home can be
realized and is consistent with the City goal of creating opportunities for affordable home
ownership.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section 1. That the City of Dubuque, Iowa, proposes to dispose of its interest in
the above described real estate to Affordable Housing Network, Inc for the sum of $1.
Section 2. That the City Council shall conduct a public hearing on the proposed
disposition of real estate in the City Council Chambers at the Historic Federal Building, 350
W. 6th Street, Dubuque, Iowa on the 1st day of February 2021 beginning at 6:30 p.m.
Section 3. That the City Clerk be and is hereby authorized and directed to
publish notice of the public hearing in the form attached hereto, according to law.
Passed, approved and adopted this 19th day of January, 2021.
Roy D. B , Mayor
ATTEST:
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Adrienne Breitfelder, City Clerk
CITY OF DUBUQUE, IOWA
OFFICIAL NOTICE
PUBLIC NOTICE is hereby given that the City Council of the City of Dubuque, lowa, will
hold a public hearing on the 1St day of February 2021, at 6:30 p.m. in the Historic Federal
Building, 350 West Sixth Street, 2nd floor, Dubuque, lowa, at which meeting the City
Council proposes to dispose of an interest in the following described real property by sale
to Affordable Housing Network, Inc, an lowa non-profit corporation:
The Easterly 150 feet of Lot 5 of the Subdivision of Out Lot 740 in the City of
Dubuque, lowa; and Lot 15 & the Northerly '/2 of Lot 14 in "F. E. Bissell's Dubuque,
being the South half of Out Lot 740" in the City of Dubuque, lowa, according to the
recorded plats thereof; and
At the meeting, the City Council will receive oral and written comments from any resident
or property owner of said City to the above action. Written comments regarding the above
public hearing may be submitted to the City Clerk's Office, City Hall, 50 W. 13t" Street, on
or before said time of public hearing.
Copies of supporting documents for the public hearings are on file in the City Clerk's
Office, and may be viewed during normal working hours.
Any visual or hearing impaired persons needing special assistance or persons with
special accessibility needs should contact the City Clerk's Office at (563) 589-4100 or
TTY (563) 556-9948 at least 48 hours prior to the meeting.
Dated this day of , 2021
Adrienne Breitfelder
City Clerk
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c ? RESIDENTIAL PURCHASE AGREEMENT
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TO: City of Dubuque, a municipal corporation (SELLERS)
The undersigned BUYERS hereby offer to buy and the undersigned SELLERS by their acceptance
agree to sell the real property situated in Dubuque County , Iowa, locally known as
1293 Walnut Street
and legally described as:
The Easterly 150 feet of Lot 5 of the Subdivision of Out Lot 740 in the City of Dubuque, Iowa; and
Lot 15 &the Northerly '/z of Lot 14 in "F. E. Bissell's Dubuque,being the South half of Out Lot 740"
in the City of Dubuque, Iowa, according to the recorded plats thereof.
together with any easements and appurtenant servient estates, but subject to any reasonable easements
of record for public utilities or roads, any zoning restrictions, customary restrictive covenants and
mineral reservations of record, if any, herein referred to as the "Property," upon the following terms
and conditions provided BUYERS, on possession, are permitted to use the Property for residential
purposes:
1. PURCHASE PRICE. The Purchase Price shall be $ 1.00 and the method of
payment shall be as follows: $ 0.00 with this offer to be deposited upon
acceptance of this offer and held in trust by as earnest money to be
delivered to the SELLERS upon performance of SELLERS' obligations and satisfaction of
BUYERS' contingencies, if any; and the balance of the Purchase Price:
a) in cash at the time of closing with adjustment for closing costs to be added or deducted from
this amount. This Agreement is not contingent upon BUYERS obtaining such funds.
b)
2. REAL ESTATE TAXES.
A. SELLERS shall pay all real estate taxes that are due and payable as of the date of possession
and constitute a lien against the Property, including any unpaid real estate taxes for any
prior years.
B. SELLERS shall pay their prorated share, based upon the date of possession, of the real
estate taxes for the fiscal year in which possession is given (ending June 30, 2021 ) due
and payable in the subsequent fiscal year(commencing July 1, 2021 ).
BUYERS shall be given a credit for such proration at closing (unless this agreement is
for an installment contract) based upon the last known actual net real estate taxes payable
accarding to public record. However, if such taxes are based upon a partial assessment of the
present property improvements or a changed tax classification as of the date of possession, such
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proration shall be based on the current millage rate, the assessed value, legislative tax rollbacks
and real estate tax exemptions that will actually be applicable as shown by the Assessor's
Records on the date of possession.
C. BUYERS shall pay all subsequent real estate taxes.
3. SPECIAL ASSESSMENTS.
A. SELLERS shall pay in full all special assessments which are a lien on the Property as of the
date of acceptance January 18, 2021
B. If"A" is stricken, then SELLERS shall pay all installments of special assessments which are
a lien on the Property and, if not paid, would become delinquent during the calendar year
this offer is accepted, and all prior installments thereof.
C. All charges for solid waste removal, sewage and maintenance that are attributable to
SELLERS' possession, including those for which assessments arise after closing, shall be
paid by SELLERS.
D. Any preliminary or deficiency assessment which cannot be discharged by payment shall be
paid by SELLERS through an escrow account with sufficient funds to pay such liens when
payable, with any unused funds returned to SELLERS.
E. BUYERS shall pay all other special assessments.
4. RISK OF LOSS AND INSURANCE. SELLERS shall bear the risk of loss or damage to the
Property prior to closing or possession, whichever first occurs. SELLERS agree to maintain
existing insurance and BUYERS may purchase additional insurance. In the event of substantial
damage or destruction prior to closing, this Agreement shall be null and void; provided, however,
BUYERS shall have the option to complete the closing and receive insurance proceeds regardless
of the extent of damages. The property shall be deemed substantially damaged or destroyed if it
cannot be restored to its present condition on or before the closing date.
5. POSSESSION AND CLOSING. If BUYERS timely perform all obligations, possession of the
Property shall be delivered to BUYERS on February 15, 2021 , and any adjustments of
rent, insurance, taxes, interest and all charges attributable to the SELLERS' possession shall be
made as of the date of possession. Closing shall occur after approval of title by buyers' attorney and
vacation of the Property by SELLERS, but prior to possession by BUYERS. SELLERS agree to
permit BUYERS to inspect the Property within 0 hours prior to closing to assure that the
premises are in the condition required by this Agreement. If possession is given on a day other than
closing, the parties shall make a separate agreement with adjustments as of the date of possession.
This transaction shall be considered closed (upon the filing of title transfer documents) {�e�rt�e—
and receipt of all funds then due at closing
from BUYERS under the Agreement.
6. FIXTURES. Included with the Property shall be all fixtures that integrally belong to, are
specifically adapted to or are a part of the real estate, whether attached or detached, such as:
attached wall-to-wall carpeting, built-in appliances, light fixtures (including light bulbs), water
softeners (except rentals), shutters, shades, rods, blinds, venetian blinds, awnings, storm windows,
storm doors, screens, television antennas (including satellite dishes), air conditioning equipment
(except window type), door chimes, automatic garage door openers, electrical service cables,
attached mirrors, fencing, gates, attached shelving, bushes, trees, shrubs and plants. Also included
shall be the following:
All currently present at the property
The following items shall not be included:
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7. CONDITION OF PROPERTY.
A. The property as of the date of this Agreement including buildings, grounds, and all
improvements will be preserved by the SELLERS in its present condition until possession,
ordinary wear and tear excepted.
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C. If "B" is deleted, BUYERS acknowledge that they have made a satisfactory inspection of
the Property and are purchasing the Property in its existing condition.
D. NEW CONSTRUCTION: If the improvements on the subject property are under
construction or are to be constructed, this Agreement shall be subject to approval of plans
and specifications by the parties within days of acceptance of this Agreement.
New construction shall have the warranties implied by law, those specifically made by
suppliers of materials/appliances, and those specifically tendered by the contractor.
8. ABSTRACT AND TITLE. SELLERS, at their expense, shall promptly obtain an abstract of title to
the Property continued through the date of acceptance of this Agreement,
January 18, 2021 , and deliver it to BUYERS' attorney for examination. It shall show
merchantable title in SELLERS in conformity with this Agreement, Iowa law, and Title Standards
of the Iowa State Bar Association. The SELLERS shall make every reasonable effort to promptly
perfect title. If closing is delayed due to SELLERS' inability to provide marketable title, this
Agreement shall continue in force and effect until either party rescinds the Agreement after giving
ten days written notice to the other party. The abstract shall become the property of BUYERS when
the purchase price is paid in full. SELLERS shall pay the costs of any additional abstracting and
title work due to any act or omission of SELLERS, including transfers by or the death of SELLERS
or their assignees.
9. SURVEY. BUYERS may, at BUYERS' expense prior to closing, have the property surveyed and
certified by a Registered Land Surveyor. If the survey shows any encroachment on the Property or
if any improvements located on the Property encroach on lands of others, the encroachments shall
be treated as a title defect. If the survey is required under Chapter 354, SELLERS shall pay the cost
thereof.
10. ENVIRONMENTAL MATTERS.
a) SELLERS warrant to the best of their knowledge and belief that there are no abandoned
wells, solid waste disposal sites, hazardous wastes or substances, or underground storage
tanks located on the Property, the Property does not contain levels of radon gas, asbestos or
urea-formaldehyde foam insulation which require remediation under current governmental
standards, and SELLERS have done nothing to contaminate the Property with hazardous
wastes or substances. SELLERS warrant that the Property is not subject to any local, state,
ar federal judicial or administrative action, investigation ar order, as the case may be,
regarding wells, solid waste disposal sites, hazardous wastes or substances, or underground
storage tanks. SELLERS shall also provide BUYERS with a properly executed
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GROLTNDWATER HAZARD STATEMENT showing no wells, private burial sites, solid
waste disposal sites, private sewage disposal system, hazardous waste and underground
storage tanks on the Property unless disclosed here: None
b) BUYERS may at their expense, within days after the date of acceptance, obtain a
report from a qualified engineer or other person qualified to analyze the existence or nature
of any hazardous materials, substances, conditions or wastes located on the Property. In the
event any hazardous materials, substances, conditions or wastes are discovered on the
Property, BUYERS' obligation hereunder shall be contingent upon the removal of such
materials, substances, conditions or wastes or other resolution of the matter reasonably
satisfactory to BUYERS. However, in the event SELLERS are required to eXpend any sum
in excess of $ to remove any hazardous materials, substances,
conditions or wastes, SELLERS shall have the option to cancel this transaction and refund
to BUYER all Earnest Money paid and declare this Agreement null and void. The expense
of any inspection shall be paid by BUYERS. The expense of any action necessary to
remove or otherwise make safe any hazardous material, substance, conditions or waste shall
be paid by SELLERS, subject to SELLERS' right to cancel this transaction as provided
above.
ll. DEED. Upon payment of the purchase price, SELLERS shall convey the Property to BUYERS by
Special Warranty deed, free and clear of all liens, restrictions, and
encumbrances except as provided in this Agreement. General warranties of title shall extend to the
time of delivery of the deed excepting liens or encumbrances suffered or permitted by BUYERS.
12. JOINT TENANCY IN PROCEEDS AND IN REAL ESTATE. If SELLERS, immediately
preceding acceptance of the offer, hold title to the Property in joint tenancy with full right of
survivorship, and the joint tenancy is not later destroyed by operation of law or by acts of the
SELLERS, then the proceeds of this sale, and any continuing or recaptured rights of SELLERS in
the Property, shall belong to SELLERS as joint tenants with full rights of survivorship and not as
tenants in common; and BUYERS in the event of the death of any SELLER, agree to pay any
balance of the price due SELLERS under this contract to the surviving SELLERS and to accept a
deed from the suroiving SELLERS consistent with Paragraph 15.
13. JOINDER BY SELLER'S SPOUSE. SELLER'S spouse, if not a title holder immediately preceding
acceptance, executes this agreement only for the purpose of relinquishing all rights of dower,
homestead and distributive share ar in compliance with Section 561.13 of the Code of Iowa and
agrees to execute the deed or real estate contract for this purpose.
14. STATEMENT AS TO LIENS. If BUYERS intend to assume or take subject to a lien on the
Property, SELLERS shall furnish BUYERS with a written statement prior to closing from the
holder of such lien, showing the correct balance due.
15. USE OF PURCHASE PRICE. At time of settlement, funds of the purchase price may be used to
pay taxes and other liens and to acquire outstanding interests, if any, of others.
16. APPROVAL OF COURT. If the Property is an asset of an estate, trust or conservatorship, this
Agreement is contingent upon Court approval unless declared unnecessary by BUYERS' attorney.
If the sale of the Property is subject to court approval, the fiduciary shall promptly submit this
Agreement for such approval. If this Agreement is not so approved by
either party may declare this Agreement null and void, and all
payments made hereunder shall be returned to BUYERS.
17. REMEDIES OF THE PARTIES.
A. If BUYERS fail to timely perform this Agreement, SELLERS may forfeit it as provided in
the Iowa Code (Chapter 656), and all payments made shall be forfeited; or, at SELLERS'
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option, upon thirty days written notice of intention to accelerate the payment of the entire
balance because of BUYERS' default (during which thirty days the default is not corrected),
SELLERS may declare the entire balance immediately due and payable. Thereafter this
agreement may be foreclosed in equity and the Court may appoint a receiver.
B. If SELLERS fail to timely perform this Agreement, BUYERS have the right to have all
payments made returned to them.
C. BUYERS and SELLERS are also entitled to utilize any and all other remedies or actions at
law or in equity available to them and shall be entitled to obtain judgment for costs and
attorney fees as permitted by law.
18. NOTICE. Any notice under this Agreement shall be in writing and be deemed served when it is
delivered by personal delivery or by certified mail return receipt requested, addressed to the parties
at the address given below.
19. CERTIFICATION. Buyers and Sellers each certify that they are not acting, directly or indirectly,
for or on behalf of any person, group, entity or nation named by any Executive Order or the United
States Treasury Department as a terrorist, "Specially Designated National and Blocked Person" or
any other banned or blocked person, entity, nation or transaction pursuant to any law, order, rule or
regulation that is enforced or administered by the Office of Foreign Assets Control; and are not
engaged in this transaction, directly or indirectly on behalf of, any such person, group, entity or
nation. Each party hereby agrees to defend, indemnify and hold harmless the other party from and
against any and all claims, damages, losses, risks, liabilities and expenses (including attorney's fees
and costs) arising from or related to my breach of the foregoing certification.
20. GENERAL PROVISIONS. In the performance of each part of this Agreement, time shall be of the
essence. Failure to promptly assert rights herein shall not, however, be a waiver of such rights or a
waiver of any existing or subsequent default. This Agreement shall apply to and bind the successors
in interest of the parties. This Agreement shall survive the closing. Paragraph headings are for
convenience of reference and shall not limit or affect the meaning of this Agreement. Words and
phrases herein shall be construed as in the singular or plural number, and as masculine, feminine or
neuter gender according to the context.
21. INSPECTION OF PRIVATE SEWAGE DISPOSAL SYSTEM. Delete inappropriate alternatives
below. If no deletions are made, the provisions set forth in Paragraph A shall be deemed selected.
A. Seller represents and warrants to Buyer that the Property is not served by a private sewage
disposal system, and there are no known private sewage disposal systems on the property.
B. ,
C.
22. ADDITIONAL PROVISIONS: (check if applicable)
A. SALE OF BUYERS' PROPERTY. This Agreement is contingent upon the sale and settlement
of the BUYERS' property locally known as
on or before
If settlement has not been made by this date, the SELLERS may rescind this Agreement by giving
notice to BUYERS that unless sale and settlement of BUYERS' property is made within five (5)
business days of such notice, then this Agreement shall be null and void. Unless SELLERS give such
written notice, this Agreement shall remain valid until the sale of BUYERS'property.
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SELLERS reserve the right to continue to offer the Property for sale. Should SELLERS receive
another offer which they desire to accept, BUYERS shall have days from the delivery of
written notice to waive the "contingency of sale." Notice from the BUYERS to the SELLERS,
removing the contingency of sale, shall be timely delivered to the SELLERS along with reasonable
assurance that BUYERS can complete the purchase without the sale of the property referenced above.
If BUYERS do timely remove such contingency, this Agreement will remain in full force and
effect (but without being contingent on the sale of BUYERS' property). If BUYERS do not timely
remove such contingency, SELLERS will immediately return to BUYERS all earnest money paid, this
Agreement will be of no further force and effect, and neither party will have any further obligation to
the other hereunder.
_ B. TERMITE INSPECTION. at their expense shall have the Property
inspected for termites or other wood destroying insects by a licensed pest inspector prior to closing. If
active infestation or damage due to prior infestation is discovered, SELLERS shall have the option of
either having the Property treated for infestation by a licensed pest exterminator and having any
damage repaired to the BUYERS' satisfaction or, declaring this Agreement null and void and returning
all earnest money to BUYERS. This provision shall not apply to fences, trees, shrubs or outbuildings
other than garages. BUYERS may accept the property in its existing condition without such treatment
or repairs.
_ C. WELL TEST. SELLERS, at expense, shall provide BUYERS, within days
after acceptance of this offer, a report issued by the county health department, or a qualified testing
service, indicating the location of any well on the Property and that water from each well (1) is safe for
its intended use and (2) is in sufficient quantity for its intended use. If BUYERS receive an
unsatisfactory report, the basis for which cannot be resolved between BUYERS and SELLERS within
days of receipt thereof, then upon written notice from BUYERS to SELLERS, this agreement
shall be null and void and all earnest money paid shall be returned immediately to BUYERS.
_ D. RADON TEST. Within days after the date of acceptance of this offer, SELLERS, at
expense, shall have the property tested far the presence of Radon gas by a qualified
professional and shall provide the written results of such test to BUYERS within the same time period.
If said results reveal the presence of Radon in the Property at a level greater than 4.0 pCi/L and
SELLERS do not agree to remediate the Property at SELLERS' expense such that the Radon levels in
the Property are reduced to a level below 4.0 pCi/L, then BUYERS shall have the option to terminate
this agreement, in which case all earnest money shall be returned to BUYERS and this Agreement shall
be of no further force or effect.
X E. NO REAL ESTATE AGENT OR BROKER. Neither party has used the services of a real estate
agent or broker in connection with this transaction. Each party agrees to indemnify and save harmless
the other party from and against all claims, costs, liabilities and expense (including court costs and
reasonable attorney's fees) incurred by the other party as a result of a breach of this representation,
which shall survive closing.
F. OWNERS' ASSOCIATION. If the property is subject to control by an association of owners,
this Agreement is contingent upon the timely satisfaction or waiver of those conditions set forth on the
Owners' Association Addendum attached hereto and by this reference made a part hereo£ Buyers
may, before closing and no later than days after receipt of all responsive documents, elect to
cancel this Agreement by written notice of cancellation to Sellers. If Buyers elect to so cancel this
Agreement, then this Agreement shall be null and void and the earnest money paid by Buyers shall be
refunded. In the event Buyers do not timely notify Sellers of cancellation, this Agreement shall be
binding and remain in full force and effect.
X G. OTHER: Attach Addendum.
See 'Additional Provisions - OTHER INFORMATION - Addendum'
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ACCEPTANCE. When accepted, this Agreement shall become a binding contract. If not
accepted and delivered to BUYERS on or before January 18, 2021 , this Agreement
shall be null and void and all payments made shall be returned immediately to BUYERS.
Accepted Dated
SELLERS CITY OF DUBUQUE BUYERS
AFFORDABLE HOUSING NETWORK, INC.
SS#: SS#:
SELLERS BUYERS
SS#: SS#:
5400 Kirkwood Blvd SW, Cedar Rapids,
50 W. 13 Street, Dubuque, IA 52001 IA 52404
Address Address
Phone: (563) 583-4113 Phone: (319) 363-1403
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Additional Provisions - OTHER INFORMATION - Addendum
CITY COUNCIL APPROVAL. This Agreement is subject to the approval of the City Council for the City of
Dubuque,Iowa.
TENANTS. The Real Estate is free and clear of any occupants, and no party has a lease to or other occupancy or
contract right in the Real Estate which shall in anyway be binding upon the Real Estate. Seller shall hold harmless
and indemnify the Buyer for and against any claims,which may arise or be based upon any alleged leasehold interest,
tenancy, or other right of occupancy or use for any portion for the Real Estate. This covenant shall survive the
closing.