Trust Fund Ordinance AmendmentMEMORANDUM
TO:
FROM:
SUBJECT:
November 19, 2003
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Trust Fund Ordinance Amendment
Housing and Community Development Department Director David Harris is
recommending City Council approval of an amendment to Chapter 26 of the Code of
Ordinances, authorizing the Housing Trust Fund Committee to direct use of funds
received from the Iowa Finance Authority's Local Housing Trust Fund and Project-
Based Housing Programs.
The Iowa Legislature, in its last session, has created a State Housing Trust Fund and
capitalized it with a current fiscal year allocation of $2.8 million. Local trust funds are
eligible to apply for these funds, with an application deadline for this year set for
December 15.
As required by the Iowa Finance Authority, ordinance amendments are required to
establish the Housing Trust Fund Committee's intent. Specifically the amendments are:
1. establishes the authority of the Housing Trust Fund Committee to "direct,
without further approval of any city officer or the City Council, how such funds
shall be used in accordance with the Iowa Finance Authority Trust Fund
Allocation Plan;" and
2. establishes the authority of the Trust Fund Committee to "direct how such
[required local matching] funds shall be used in accordance with the Iowa
Finance Authority Trust Fund Allocation Plan."
The City Council would, however, approve any Trust Fund Committee application to the
Finance Authority, pdor to its submission, and would approve commitment of any
required local matching funds as part of any application.
concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
David Harris, Housing and Community Development Director
CITY OF DUBUQUE, IOWA
MEMORANDUM
19 November 03
To: Mike V~Milligen, City Manager
From: David'Harris, Housing and Community Development Department
Re: Trust Fund Ordinance Amendment
Introduction
The purpose of this memorandum is to request the City Council's approval of an
amendment to Chapter 26 of the Code of Ordinances, authorizing the Housing
Trust Fund Committee to direct use of funds received from the Iowa Finance
Authority's Local Housing Trust Fund and Project-Based Housing Programs.
Background
The Housing Trust Fund Committee was established by ordinance in 1992, to
"collect and disburse revenue to meet the housing needs of Iow and moderate
income households" in the City. Establishing the Trust Fund Committee was a
primary recommendation of the Affordable Housing Task Force, which issued its
report in 1991.
Since that time the Trust Fund Committee has awarded nearly $2 million in
grants to accomplish affordable housing. These have included two awards,
totaling $580 000 from the Des Moines Federal Home Loan Bank, to promote
homeownership for lower-income households. The Committee has also
received $900 000 from the Iowa Department of Economic Development since
1992, including awards for the construction of the Davis Place single rooming
facilities on Garfield Avenue, the West 8th Street condominium project and
conversion of the former St Mary's Convent into the Maria House transitional
housing facility.
CDBG allocations to the Trust Fund from the City Council have totaled more than
$400 000 during the past ten years, and have accomplished a number of
worthwhile housing projects, including grants to the Food Pant~, the Center for
Public Ministry, the Y's Domestic Violence Shelter, Gateways to Home and
DHI/Mercy Housing.
Discussion
The Iowa Legislature, in its last session, has created a State Housing Trust Fund
and capitalized it with a current fiscal year allocation of $2.8 million. Local trust
funds are eligible to apply for these funds, with an application deadline for this
year set for 15 December.
The Iowa Finance Authority has authored the administrative rules for the Trust
Fund, including provisions to insure that a local trust fund will operate
independently from a local unit of govemment. These requirements include:
1. A local governing board recognized by the city as the board
responsible for coordinating local housing programs;
2. ^ local governing board comprised of no more than 50% of individuals
from local government and/or public officials.
3. The applicant organization must have a distinct and separate corporate
identity (this requirement has been proposed for elimination when the
IFA Board meets to approve the rules in December).
In negotiations with IFA staff, we have developed an ordinance amendment to
meet the intent of the legislative intent. These are proposed for adoption by the
Council, as a new Section 37 in Chapter 26. Specifically, this amendment:
1. establishes the authority of the Housing Trust Fund Committee to
"direct, without further approval of any city officer or the City Council,
how such funds shall be used in accordance with the Iowa Finance
Authority Trust Fund Allocation Plan;" and
2. establishes the authority of the Trust Fund Committee to "direct how
such [required local matching] funds shall be used in accordance with
the Iowa Finance Authority Trust Fund Allocation Plan."
The City Council would, however, approve any Trust Fund Committee application
to the Finance Authority, prior to its submission; and would approve commitment
of any required local matching funds as part of any application.
Recommendation
It is recommended that the Council approve the amendment to Chapter 26. By
so doing, the Dubuque Housing Trust Fund Committee should be certified as an
eligible local trust fund, for purposes of application to the IFA State Housing Trust
Fund. For this year's competition, this will allow us to submit a proposal for a
grant of $100 000 to assist an area affordable housing project.
Action Step
The action requested of the City Council is to approve the attached amendment
to Chapter 26, Housing Regulations, of the Code of Ordinances, authorizing the
Dubuque Housing Trust Fund Committee to direct use of funds received from the
State Housing Trust Fund and to direct use of Council-authorized matching funds
in support of applications to the Iowa Finance Authority's Housing Trust Fund.
Preparer: Barry A. Lindahl Address: Suite 330 300 Main Street Dubuque, IA 52001-6944
Telephone: (563) 583-4113
ORDINANCE NO. 93-03
AMENDING THE CITY OF DUBUQUE CODE OF ORDINANCES CHAPTER 26
HOUSING REGULATIONS, ARTICLE III HOUSING TRUST FUND BY ADOPTING A
NEW SECTION 26-37 GRANTING AUTHORITY TO THE HOUSING TRUST FUND
ADVISORY COMMITTEE TO MAKE APPLICATION TO THE IOWA FINANCE
AUTHORITY FOR FUNDS FROM THE LOCAL HOUSING TRUST FUND PROGRAM
AND THE PROJECT-BASED HOUSING PROGRAM AND TO DIRECT HOW SUCH
FUNDS SHALL BE USED
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA:
Section I. City of Dubuque Code of Ordinances Ch. 26 Housing
Regulations, Article III Housing Trust Fund is amended by adding thereto a new
Section 26-37 as follows:
Sec. 26-37. Iowa Finance Authority State Housing Trust Fund Programs.
(a) For purposes of the Iowa Finance Authority State Housing Trust Fund,
the Housing Trust Fund Advisory Committee shall have the authority to make
application to the Iowa Finance Authority for funds from the Local Housing Trust
Fund Program and the Project-Based Housing Program and to direct, without
further approval of any city officer or the city council, how such funds shall be
used in accordance with the Iowa Finance Authority Trust Fund Allocation Plan.
(b) Funds received by the city from the Iowa Finance Authority State Housing
Trust Fund shall be maintained by the city in a separate account and subject to
the direction of the Housing Trust Fund Advisory Committee.
(c) For purposes of providing required local matching funds for applications to
the Iowa Finance Authority State Housing Trust Fund, the Housing Trust Fund
Advisory Committee shall have the final authority to direct how such funds shall
be used in accordance with the Iowa Finance Authority Trust Fund Allocation
Plan. Allocation of local matching funds to the Housing Trust Fund Advisory
Committee shall be made by decision of the City Council.
Section 2. This ordinance shall take effect upon publication.
Passed, approved and adopted this 1st day of December ,2003.
Terrance M. Duggan, Mayo//
Attest:
!
~_~anne F. Schneider, Ci~ Cle~
Effect of Amendment
ARTICLE III. HOUSING TRUST FUND
Sec. 26-31. Trust Fund Established:
Subject to the conditions hereinafter set forth, a fund to be known as the City of
Dubuque Housing Trust Fund (Trust Fund) is hereby established for the collection and
disbursement of funds to meet the housing needs of the City's Iow and moderate
income residents.
Sec. 26-32. Purpose:
The purpose of the Trust Fund shall be to collect and disburse revenue to meet the
housing needs of Iow and moderate income households as defined in the City of
Dubuque Comprehensive Housing Affordability Strategy (CHAS). This shall in no way
construe that these funds will be used to finance housing permanently owned by the
City. The Trust Fund, as a permanent and revolving source of revenue, will provide for
loans and grants to finance projects including but not limited to, the acquisition,
rehabilitation and/or new construction of rental and owner-occupied housing, as well as
to provide money for relocation assistance to income-qualified displaced tenants.
Sec. 26-33. Financial Management:
The financial management of the Trust Fund shall be the responsibility of the Finance
Division of the Administrative Services Department of the City, whose responsibilities
shall include, but not be limited to, the following: a) holding trust revenue for those
purposes defined by the Housing Commission and approved by the City Council; b)
disbursing funds for the Housing Commission as appropriated in the annual operating
budget approved by the City Council; and c) performing any other function needed to
ensure the sound financial management of and accountability for Trust Fund revenues
and expenditures.
Sec. 26-34. Trust Fund Administration:
The Trust Fund shall be administered by the City Manager or his/her designee. The City
Manager shall be responsible for, but not limited to, the following: a) marketing the
program of the Trust Fund; b) soliciting applications; c) packaging applications for
Housing Commission review; d) coordinating legal or financial assistance to the
Housing Commission; e) ensuring public participation; f) pursuing new revenue sources;
g) overseeing and accounting for funded projects; h) coordinating with the City
departments and agencies; i) collecting and servicing loans made by the Trust Fund; j)
preparing periodic reports for the Housing Commission and City Council; and k) general
day-to-day operation of the Fund.
Sec. 26-35. Funding:
The Housing Commission shall be responsible for recommending sources of funding
and revenues for the Trust Fund to the City Manager and/or City Council.
As funds and revenues become available, the activities of the Trust Fund will be carried
out as specified in this Article. Notwithstanding the foregoing, however, nothing herein
shall require or impose any obligation upon the City Council to provide any funds for any
of the purposes of this Article.
Sec. 26-36. Housing Commission Trust Fund Advisory Committee:
(a) A Housing Trust Fund Advisory Committee of the Housing Commission shall be
established to recommend policy direction and oversight to the administration and
operation of the Housing Trust Fund by' 1) soliciting funding; 2) developing by-laws to
govern the Committee's operations; and 3) developing policies and guidelines for
acquisition and distribution of funds. Such solicitations, by-laws, policies and guidelines
shall be approved by the Housing Commission and submitted to the City Council for its
approval.
(b) The Housing Trust Fund Advisory Committee shall coordinate an effective
mechanism for public participation in the operation of the Trust Fund, recommend
projects to the Housing Commission for funding approval and engage in activities
providing for the efficient use of the Trust Fund.
(c) The Housing Trust Fund Advisory Committee shall have five (5) members
appointed by the City Council to serve for three (3) year terms. Three (3) of the
Committee members shall be members of the Housing Commission and two (2) shall be,
members of the public. One of the initially appointed Committee members shall serve a
term of one year and two (2) of the initially appointed Committee members shall serve
terms of two (2) years. The chair of the Trust Fund Advisory Committee shall be
appointed by the Housing Commission.
The two (2) members of the public shall be selected specifically on the basis of
experience in real estate development, banking, finance, accounting, funds
management or other related areas of expertise.
(d) The Housing Trust Fund Advisory Committee shall hold at least six (6) meetings
per year. The Housing Commission may adopt rules and regulations it deems
necessary to govem the Committee's organizational procedures and which do not
conflict with this Article or other resolutions and/or decisions of the City Council.
(e) All administrative, personnel, accounting, budgetary and procurement policies
and practices of the City shall govern the Housing Trust Fund Advisory Committee in all
its operations and activities.
Sec. 26-37. Iowa Finance Authority State Housin,q Trust Fund Pro,qrams.
(a) For purposes of the Iowa Finance Authority State Housin,q Trust Fund, the
Housin,q Trust Fund Advisory Committee shall have the authority to make application to
the Iowa Finance Authority for funds from the Local Housin.q Trust Fund Proqram and
the Proiect-Based Housin.q Proflram and to direct, without further approval of any city
officer or the city council, how such funds shall be used in accordance with the Iowa
Finance Authority Trust Fund Allocation Plan.
(b) Funds received by the city from the Iowa Finance Authority State Housin.q Trust
Fund shall be maintained by the city in a separate account and subiect to the direction
of the Housin.q Trust Fund Advisory Committee.
(c) For purposes of providin.q required local matchin,q funds for applications to the
Iowa Finance Authority State Housin,q Trust Fund, the Housin.q Trust Fund Advisory
Committee shall have the final authority to direct how such funds shall be used in
accordance with the Iowa Finance Authority Trust Fund Allocation Plan, Allocation of
local matching funds to the Housing Trust Fund Advisory Committee shall be made by
decision of the City Council.