Housing Trust Fund Award ApplicMEMORANDUM
TO:
FROM:
SUBJECT:
November 19, 2003
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Application to State Housing Trust Fund
Housing and Community Development Department Director David Harris is
recommending City Council authorization for the Housing Trust Fund Committee to
submit an application to the Iowa Finance Authority for a Housing Trust Fund award in
the amount of $100,000. If received, these funds will be provided by the Trust Fund
Committee to either the Four Oaks-Four Mounds-HEART Partnership or to the Metro
Area Housing Partnership, for affordable housing projects described in their applications
to the Committee. The Council is additionally requested to authorize matching local
funds in the amount of $25,000 for this project provided through the CDBG budget,
subject to final Council review and approval of an amendment to the FY04 Annual
Action Plan.
For purposes of submitting an application for State Housing Trust Fund assistance, a
local housing trust fund's request is not required to be project-specific. Rather, the
application must describe intended activities the trust fund intends to accomplish with
the requested funds. The Housing Trust Fund Committee will select one of the two
finalist proposals for IFA's December 15 application deadline. However, as negotiations
with the two applicants are continuing, a final selection has not been made.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Micfiael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
David Harris, Housing and Community Development Department Director
CITY OF DUBUQUE, IOWA
MEMORANDUM
19 November 03
To: Mike Va~,n Milligen, City Manager
From: David~l~arris, Housing and Community Development Department
Re: Application to State Housing Trust Fund
Introduction
The purpose of this application is to request the City Council's approval to submit
an application from the Housing Trust Fund Committee to the Iowa Finance
Authority for a $100 000 State Housing Trust Fund grant.
Background
In response to a newly-created funding opportunity - the State Housing Trust
Fund (refer to accompanying memorandum requesting an amendment to the
Housing TrUst Fund ordinance) -- the Housing Trust Fund Committee in October
published a request for proposals. Nine responses were received~ a summary of
these is attached.
The Trust Fund Committee evaluated the proposals and short-listed three:
1. A partnership including Four Oaks, the Four Mounds Foundation, the
HEART-Dubuque Community Schools project, Gronen Properties and
the Housing Department's Five Points neighborhood revitalization
project; purchase, rehabilitation and re-sale of three homes.
2. Cedar Rapids-based Metro Area Housing Partnership; purchase
of ten lots in the FondelI-Roosevelt Road subdivision and construction
of affordable new homes.
3. Scott Potter; construction of another single rooming facility on Garfield
Avenue.
The Committee interviewed the three applicants and requested additional
information and supporting documentation. Subsequently, the Potter application
was withdrawn.
Discussion
For purposes of submitting an application for State Housing Trust Fund
assistance, a local housing trust fund's request is not required to be project-
specific. Rather, the application must describe intended activities the trust fund
intends to accomplish with the requested funds. The Housing Trust Fund
Committee will select one of the two finalist proposals for IFA's 15 December
application deadline. However, as negotiations with the two applicants are
continuing, a final selection will not be made in time to meet the agenda materials
submission deadline for the 1 December City Council meeting. Announcement
of funding awards is scheduled for the first week in February 2004.
As part of the IFA Trust Fund requirements, local trust funds must provide a 25%
match for their applications for State Housing Trust Funds. For the intended
application, this is a $25 000 match requirement. These funds have been
requested, by the Housing Department, from the Community Development
Commission, from the Community Development Block Grant available budget for
the current fiscal year. At its November meeting, the CD Commission
recommended this request as an amendment to the FY04 Annual Plan. The City
Council will receive the proposed amended FY04 Plan, in December, for final
review and action.
Additional information is provided on the two proposals, as follows.
Four Oaks-Four Mounds-HEART Partnership
This project will include the pumhase and rehabilitation of two derelict homes in
the Five Points neighborhood, restoration and re-sale to income-qualifying first-
time buyer households. The homes will be pumhased by the Four Mounds
Foundation. A third home, owned by Gronen Properties, will also be restored
and resold. Much of the carpentry labor on these homes will be furnished by
students from the HEART (Housing Education And Rehabilitation Training)
Program, a project initiated by the Housing Department as part of an application
to HUD, in partnership with Loras College, for Community Outreach Partnership
Centers (COPC) funding in 2000.
HEART students are provided through the Four Oaks behavioral classroom, with
a teacher furnished by the Dubuque Community School District. In addition, an
on-site construction supervisor is provided with funding received by Four Oaks,
through a Community Partnership (cp2) Program grant. Additional funding for
this project has been committed by the Dubuque Racing Association, through a
grant to Four Oaks.
Finally, funding for rehabilitation costs is provided by the Housing Department
from several sources, including a $200 000 IDED-HOME Program grant
received for a comprehensive restoration of the Five Points neighborhood in
2001.
Metro Area Housin,q Partnership (MAHP)
MAHP is a ten-year old non-profit housing development agency which has
accomplished a great variety of affordable housing projects in the Cedar Rapids-
Waterloo and central Iowa area. These have included both rehab and single
family home subdivision development. Totals include 469 units of multi-family
new construction and 427 rental units under management in Linn County
Their proposal will be to acquire ten lots from Fondell and place new houses
purchased from All Amedcan Homes in Dyersville. All contractors will be local.
The homes will be sold to meet the target price for affordability, at no more than
$130 000. In addition, MAHP will apply to IDED for HOME Program funds, with
which to further subsidize purchase costs, to a $109 000 sale price target.
Action Step
The action requested of the City Council is to authorize the Housing Trust Fund
Committee to submit an application to the Iowa Finance Authority for a Housing
Trust Fund award in the amount of $100 000. If received, these funds will be
provided by the Trust Fund Committee to either the Four Oaks-Four Mounds-
HEART Partnership or to the Metro Area Housing Partnership, for affordable
housing projects described in their applications to the Committee. The Council is
additionally requested to authorize matching local funds in the amount of $25 000
for this project provided through the CDBG budget, subject to final Council review
and approval of an amendment to the FY04 Annual Action plan.
att
APPLICANT
Steve Cook
Food Pantry
Fondell
Excavating
Four Mounds/
Oronen
Properties
JamesFranzen/
Landmark Homes
Mid-America
Housing
Partnership
John Miller
PROJECT DESCRIPTION
Purchase/Rehab
1 Rental Unit Rehab
Buy-Down of Lots in
Fondell Subdivision
Acquisition - Rehab
3 Properties in 3 Points
Area
New Construction -
4 4-Bedroom Rentals
Buy-Down of 10 Lots
in Fondell Subdivision
New Construction -
TRUST
FUND
COST
$ 50,250
$ 31,000
$250,000
$100,000
$250,000
$250,000
$100,000
MATCH
$16,750
None
$2,070,000
$ 282,600
$ 480,000
$1,114,950
$1,140,000
REPAYMENT
*None
None
None
*None
$100,000
$80,000
*None
ADDITIONAL FEATURES
Proposes to purchase and rehab
derelict homes, sell as "rent -to-own."
*Potential repayment from rental
revenues
Proposes to establish flexible fund
to buy down purchase costs to lots,
according to buyer's needs. Amount of
subsidy/lot will depend on income of
buyer. Number of lots subsidized
unknown.
Partnership with HEART Project;
*potential return of "profits" at
sale to HEART. One property
owned by John Grenen; supportive
services to home buyers provided by
Four Oaks
Proposes to rent at $875/unit to
Sec. 8 tenants
Will purchase 10 lots, build 10 homes,
sell for $125-$130,000, Depends on
HOME grant for lower sale price
($109,000)
Will place 4 modular homes on existing
platted lots on Peru Road; *potential
return of "profits"to build additional
homes
Scott Potter
Stackis
Construction
New Construction -
12 Room SRO
New Construction -
2 Homes
$250,000
$200,000
$ 150,000
$ 50,000
None
None
Extensive supportive services
Will enroll homes on Section 8 Program
for 20 years