Washington St Tax Credit Gronen
November 9,2004
To: City Manager and City Council
I would like to submit this letter providing information on the planned
Washington Court Apartment project. As you are well aware, in the past
we have, along with City Housing and City Staff, demonstrated a sincere
commitment to Five Points/Washington Street revitalization within the
City of Dubuque. We feel that a momentum has been established by the
existing work currently underway. We believe that the Dubuque Casket
Company building is an important factor in the redevelopment of this area.
The Washington Court Apartments is an ambitious project that will bring
a significant financial investment to the neighborhood, as well as provide
momentum for re-development in the area.
I feel this project will be an important starting point for the neighborhood
and have been very encouraged by the positive response that the
neighbors, City Council and City staff have given to the project. As I have
mentioned to you in our previous conversations, neighborhood
revitalization often begins with a single investment which then grows to
other revitalization projects. For example, in Davenport, a low income tax
credit project was the first significant development in one of their blighted
neighborhoods. After the initial investment, a mixed rate project was
constructed and that was followed by a market rate project.
I selected Community Housing Initiatives of Spencer, Iowa as a project
partner because of their expertise in historic rehabilitation, solid reputation
as a property manager and commitment to providing quality housing as
well as a full spectrum of services designed to enhance the lives of their
residents. CHI is one ofthe most successful tax credit developers in the
State of Iowa and has received several awards for their proj ects, including
Tax Credit Manager of the Year for Iowa and Nebraska from the
Affordable Housing Management Association.
CHI has recently increased their ability to affect change in communities
by joining two important national organizations, As a member of the Rural
Local Initiatives Support Corporation and the NeighborWorks Network,
CHI has access to several pools of funding for proj ect enhancement,
increase tenant services and neighborhood reinvestment projects that reach
beyond the scope of tax credits. In fact, CHI is currently developing a
single family housing program and is looking to partner single family
DO ~O! 1862 DU~UQUf lown - 52004-1862 Dmnf 563-557-7010 fft! 557'690'1610
housing investment in neighborhoods where they currently operate tax
credit programs. Gronen Restoration, Inc. and CHI will be looking to the
Old Town district as a neighborhood reinvestment area that will support
and enhance the Washington Court project. We plan to target families
seeking to upgrade their homes and properties currently owned by
absentee landlords.
The project is designed as 36 rental units. One of these units will be a
market rate manager's unit. Ifwe choose to pursue special needs housing,
the remaining 35 units will be affordable for residents with low incomes.
25% of the units, or eight units, will be designed and equipped for persons
with physical disabilities. This population has been identified by the Iowa
Finance Authority as a priority for housing. According to the needs
assessment conducted for IF A, Iowa has a critical shortage ofhandicapped
accessible housing, and the Governor has committed to adding 1 ,000 units
of handicapped accessible housing to Iowa's housing stock over three
years. The residents in these units will be 40% of the Area Median
Income, because federal disability currently pays rates that render them
below this limit. Ofthe remaining 25 units, 14 will be reserved for
residents below 40% of the area median income and 13 will be available
for residents at or below 60% of the area median income. Ifwe choose not
to pursue the special needs housing option, 8 units will be at 40% of the
AMI, 7 units at 50% ofthe AMI and 21 units at 60% of the AMI. We plan
for 55 parking spaces with a possible 20 additional.
The first floor will contain a community room and a management office.
The remainder, which consists of approximately 14,000 square feet, is
intended for the exploration of selling, at a very low cost, or donating to
organizations that will benefit and enhance the neighborhood. We plan to
keep you abreast and involve you and your staff of these developments.
A hired Market Analysis conducted in early 2004 showed a market need
of232 apartments under the 60% AMI based on demand analysis. 40%
would be two bedrooms and 1/3 would be one bedroom. Our market
research gives strong indication that affordable housing in the downtown
area will be very marketable to residents who grew up in the area and have
returned to live and work. The wage rate for 40% of AMI is $7,70 per
hour and the wage rate for 60% of AMI is $11.40 per hour, These are very
consistent with wage rates currently offered by local employers.
In summary, I would like to stress the important impact this project could
have on this neighborhood. The project would effectively tie together
redevelopment efforts spanning two blocks on either side of the
neighborhood. The investment of over $4 million in the neighborhood is
not only a positive step, but should provide reassurance to the City of
Dubuque that the project will be well managed and the investment
protected.
Sincerely,
JOhn~ ~
President, Gronen Restoration, Inc.
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MEMORANDUM
November 8, 2004
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: Affordable Housing Tax Credit Application from Gronen Properties
Gronen Properties proposes to acquire and historically renovate the former Dubuque
Casket Company, at 1798 Washington Street. The renovation will preserve all historical
and character-defining features.
The developer plans to offer services to the tenants under what is called the "Service
Enriched ModeL" If they are successful in developing that model, the building will offer
32-36 apartments, all, except the manager's unit, to be made affordable to income-
qualifying households as required by the terms of this Iowa Finance Authority tax credit
program. The current intent of the developer is that 21 of the units will be 40% of
median income and 14 of the units will be 60% of median income.
If a services contract cannot be finalized prior to the application due date, the project will
not be eligible for the service-enriched set-aside. As a result, the income-targeting
would be changed to: 7 units at 40% median income, 7 units at 50% median and 21
units at 60% median.
Projects previously financed in Dubuque through this program include Heartland
Housing Initiative's Loras Boulevard and Main Street apartments, the Applewood
complex on Pennsylvania Avenue, the Bishop's Block Apartments, Henry Stout Place,
the Raven Oaks/Arbor Glen Apartments, ARC's Kennedy Circle project and Gronen's
Upper Main Street project approved last year.
The tax credit program requires a local contributing effort of at least 1 % of the value of
the project.
The "local contributing effort" requested of the City is tax abatement, which will provide
financial benefit over a ten-year period estimated at $38,324, which meets the 1 %
threshold as the actual estimated construction cost is $3.8 million. The building
proposed for renovation is located within the Washington Urban Revitalization District,
meaning that the developer is eligible for consideration for tax abatement for this
project.
Housing and Community Development Department Director David Harris recommends
that the City Council indicate support of this project by approving the attached
resolutions for local support and local contributing effort. The project achieves the City's
goals of adaptive re-use of a long-vacant building in the downtown, as well as historic
building renovation and provision of affordable housing for low- and moderate-income
households.
Any time a proposal is received that will concentrate low and moderate income families
in one large project in a neighborhood in need of reinvestment and redevelopment, the
project deserves close scrutiny, However, John Gronen has previously invested in this
neighborhood and advises that he has the intent to invest more in the future. There will
be an on-site manager and the performance of the management for this project will be
the key to its success.
John Gronen has produced a letter from an employee with the Clinton Area Chamber of
Commerce expressing satisfaction with the performance of Mr. Gronen's development
partner, Community Housing Initiative, Inc.
I have also received information from the Police Department on four similar projects in
the City and that information is provided for your review.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
f!lJJ~¡;Jd
Mfchael C. Van Milligen -
MCVM/jh
Attachment
cc: John Gronen
Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
David Harris, Housing and Community Development Department
Assistant Police Chief Terry Tobin
Jerelyn O'Connor, Neighborhood Development Specialist
CITY OF DUBUQUE, IOWA
MEMORANDUM
10 November 04
To: Mike Va]~ligen, City Manager
ut
From: David H rtis, Housing and Community Development Department
Re: Affordable Housing Tax Credit Application from Gronen Properties
Introduction
The purpose of this memorandum is to review the request from Gronen
Properties for City support of an application to the Iowa Finance Authority for
housing tax credits; and to authorize the Mayor's and City Manager's signatures,
respectively, on the attached resolutions of support and local contributing effort.
Background
The Affordable Housing Tax Credit Program provides an equity financing
mechanism for housing projects which in turn must provide rental units for low-
income tenants. It implements Section 42 of the Internal Revenue Service Code,
returning tax credits to investors who build or renovate low income housing. In
Iowa it is administered by the Iowa Finance Authority (IFA), which annually
distributes approximately $5 million in tax credits State-wide, on a competitive
application basis.
In Dubuque, projects previously financed through this program include Heartland
Housing Initiative's Loras Boulevard and Main Street apartments, the Applewood
complex on Pennsylvania Avenue, the Bishop's Block Apartments, Henry Stout
Place, the Raven Oaks/Arbor Glen Apartments, ARC's Kennedy Circle project
and Gronen's Upper Main Street project approved last year.
For the tax credit application, the Finance Authority utilizes a competitive scoring
system that ranks projects according to a variety of criteria. One of these is the
support of the project by the local government. Accordingly, a "resolution of
support" is submitted as part of all applications. Without this indication of local
acceptance, the proposal is competitively disadvantaged relative to other
developers requesting tax credit financing.
A threshold criteria is for "local contributing effort," in an amount of at least one-
percent of the construction cost of the project. This is required of all applicants
for the tax credits. This contribution can be provided by a local government or by
local or regional agencies, public or private, It may take many forms, including
direct funding, donation of real estate, subsidized financing, or tax abatement or
tax increment financing proceeds. Without documentation of this financial
support, an application cannot be funded.
Discussion
Gronen Properties proposes to acquire and historically renovate the former
Dubuque Casket Company, at 1798 Washington Street., as the Washington
Court housing development. This will be a partnership venture with Community
Housing Initiatives, Inc., a Spencer-based Iowa non-profit housing developer with
extensive historic rehab and tax credit management experience. The renovation
will preserve all historical and character-defining features. Application will be
made to nominate the property for the National Register of Historic Places.
The building when completed will offer 36 apartments - a manager's unit and 35
to be made affordable to income-qualifying households as required by terms of
the IFA tax credit program. The units will be developed on the upper three floors
of the building. Amenities for residents will include individual laundry, assigned
off-street parking, community room and a resident manager.
Two-thirds of the units will be one-bedroom apartments, at 800-900 square feet.
The 12 two-bedroom units will be 900-1000 square feet in area. The target
clientele is special needs persons and/or small families. First floor uses are
undetermined at this time; discussions with several local non-profit organizations
about first floor occupancy are taking place currently.
Under the "Qualified Allocation Plan (QAP)" used by the Finance Authority, a
variety of options is available to developers in competing for the tax credit
award. The QAP awards points according to a scoring system which favors
provision of housing to the lowest-income. No tax credit-funded project,
however, allows income of residents to exceed 60% of local area median
income. As well, special set-asides are available, including for special needs
persons.
For the proposed project, 60% - or 21 - of the units will be made available to
households earning no more than 40% of area median income. A household of
one person at 40% of income earns $15 840; a household of two persons makes
$18080.
The balance - of 14 units - will be made available to households at up to 60% of
local income. For a one person household, this is $23 760; a 2-person
household makes $27120.
Rents are established at no more than 30% of the income of the residents.
These income and rent restrictions are enforced for a term of 30 years and
monitored by IFA, according to the Section 42 regulations.
The Washington Court facility is proposed to be a "service-enriched" project,
meaning that extensive supportive services will be provided to residents. No
fewer than 25% of the units will be designated for persons with special physical
needs. This approach will enhance funding consideration by the Finance
Authority, as it will qualify the project for the set-aside which accords first
preference to applications providing services to special-needs tenants. The
developer is currently negotiating a contract with a local supportive services
provider, which will be made a part of the application and be required as a
condition of the funding award.
If a services contract cannot be finalized prior to the application due date, the
project will not be eligible for the service-enriched set-aside. As a result, the
income-targeting would be changed to: 7 units at 40% median income, 7 units at
50% median and 21 units at 60% median. However, the developer is optimistic
an agreement will be reached, given the conversations with local providers which
have taken place to-date.
Total project costs are projected at $5.6 million, with construction costs at $3,8
million. In addition to the IFA housing tax credits, funding will be applied for
through IDED's HOME Program, federal Historic Preservation Tax Credits and
local lender financing. An application will also be submitted to the City's
Enterprise Zone Commission for additional tax credits.
The "local contributing effort" requested of the City is tax abatement, which will
provide financial benefit in the amount of $38 324 over a ten-year period. The
building proposed for renovation is located within the Washington Urban
Revitalization District, meaning that the developer is eligible for consideration for
tax abatement for this project.
The annual cycle for application for Urban Revitalization is the end of January,
with Council review and approval in February. To be eligible, a property must be
located within an existing district, be used primarily for residential occupancy and
realize an increase of at least 15% in assessed value as a result of the building
improvements. For this reason, it is anticipated that the Gronen project property
will qualify for Urban Revitalization Program participation.
Recommendation
It is recommended that the Council indicate support of this project by approving
the attached resolutions for local support and local contributing effort. The
project achieves our goals of adaptive re-use of long-vacant building in the
downtown, as well as historic building renovation and provision of affordable
housing for low-income households.
Action Step
The action requested of the City Council is to approve the attached resolutions of
support and local contributing effort for this project,
RESOLUTION NO. 435 -04
A RESOLUTION OF SUPPORT FOR THE DEVELOPMENT OF AN
AFFORDABLE HOUSING PROJECT ON WASHINGTON STREET
WHEREAS, the City of Dubuque, Iowa has been informed by Gronen Properties that a
low income housing tax credit application will be filed with the Iowa Finance Authority for
the development of affordable rental housing to be located at 1798 Washington Street in
Dubuque, Iowa with a legal description as follows:
Lots 102-106, East Dubuque Addition, in the City of Dubuque, County of
Dubuque, Iowa.
WHEREAS, this housing project will contain 36 units;
WHEREAS, the units will be targeted to small families and special needs persons;
WHEREAS, the property will have the following amenities:
On-site management office and resident manager
Computer learning center and community space
Off-street parking for 60 spaces
Contracted supportive services provided by area service agencies
WHEREAS, the project will be adaptive re-use of an historic building;
WHEREAS, the Sponsor has requested local assistance through a tax abatement;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. The City supports the application of Gronen Properties for Affordable
Housing Tax Credits, subject to necessary public hearings and building permits.
Section 2. This resolution shall remain effective until 1 June 2005. In the event
that any of the above-listed characteristics should materially change prior to the
issuance of a building permit, this resolution shall be null and void.
Passed, approved and adopted this 15th day of November, 2004.
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider, City Clerk
City Manager's Office
City Hall
50 West 13th Street
Dubuque, Iowa 52001-4864
(563) 589-4110 office
(563) 589-4149 fax
ctymgr@cityo!dubuque.org
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EXHIBIT 4d
LOCAL CONTRIBUTING EFFORT VERIFICATION
DATE
November 3, 2004
Iowa Finance Authority
100 E. Grand, Suite 250
Des Moines, IA 50309
RE:
Name of Project
Address of Project
Ownership Entity Name
Washington Court (Dubuque Casket Co. Building)
1798 Washington Street
Washington Court loP.
Ladies and Gentlemen:
This letter will verify the local contributing effort required by the Qualified Allocation Plan and Iowa
Code Section 16.4. A local contributing effort can be provided by local governmental un~s or by
local or regional agencies public or private. The IF A rules provide that any of the following items
will consmute a local contributing effort:
1. Payment of funds by a political subdivision or governmental ent~y, or by a private
agency. Private agency means any entity from the location that contributes
something of value and intends that the contribution qualify as the local
contributing effort.
2. Real property which may be vacant or improved property, suitable, in the
judgment of the IFA, to the proposed housing project. Liens and encumbrances,
if any, shall be disclosed to satisfaction of the IFA.
3. Personal property which may include appliances, furnishings, property
maintenance tools, re-modeling material to be purchased subsequent to project
approval, and any other personal property, which in the judgment of the IFA, is of
relevance to the proposed housing project.
The IFA may consider any type of proposed local contributing effort, in addition to or
other than the above. Local contributing efforts may be combined by type or source.
The IFA's rules provide that the agency making the local contributing effort must indicate
the value of its contribution. The value of the local contributory effort is the value of the
contribution made by the agency minus the value of any consideration or accommodation
received by the agency in return for the contribution, Evidence of payment and the
authority to provide the funds shall be furnished upon request of the IFA.
Se.-vi«
People
Integrity
R"pO",ibility
Innovation
Teamwork
Based on the foregoing, the local contributing effort for the above named Project by the City of
Dubuaue is as follows:
Item AmounWalue Legal Authority for
Contribution
Payment ofnovernmental funds
Cash DãViTIent (5)
Tax Increment Financing
Tax Abatement (4) 38,324 City of Dubuque
Entemrise Zone desianation
Other. Please describe
Payment of funds from a private
agency
Pavment of funds from a oublic aaencv
Contribution of land'
Contribution otDersonal orooemr
Other"
We understand that IFA will rely on these valuations to deteITfline whether the Sponsor has met
the requirements of the QAP for a local contributing effort.
Sincerely,
Michael C. Van Milligen, City Manager
If ~nd is conthbuted, IFA ,,",ui"'" a description of !tie property to be attached to this letter, and a preliminary title opinion indicating that the
land is he~ free and clea, 01 any encumbrance, and how land ",i.. was _""'ned.
If personal propeny is conthbuted, IFA "",ui",,, a com~ete inventory of the propeny, whethe' . is new 0' used, and !tie ",'ue of each <em
stated separately.
Some oth", type of iocai conthbuting errort is proposed. the conthbution must be tully deschbed and a ""ue ""bed on the conthbution by the
centhbuting phvate or public agency.
4.
Pro~de mil rate and tann of abatement, attach na,,","'" as ,,",ui""'.
-""'ofcash. mta::h na,,","'" as 'eoui"'"
'IWasuin-gíuJ] Court
Project Summary
Submitted by: Sam JE;.-id<soll
CommumHy Housing hlitiatives" Inc.
Spence/', ,ÌInva
The Washington Court project is the adaptive fe-use of an important llistoric building located at 1789 in
Dubuque's Old Town historic district. Community Housing Initiatives, Inc. a non-prolÌt housing
developer based in Spencer, Iowa has signific.éU1t experience in historic rehabilitation as a mechanism tor
revitalizing neighborhoods. CHI Inc, hopes that restoration of this important buiJding wiu playa critica:
role in Dubuque's downtown redevelopment enorts.
CHI, Inc. and Gronen Restoration have created a plan lor the Dubuque C:asket Company bLùlding which
not only preserves this important piece of .local history, but also expands the supply of affordable
housing in Dubuque. The plan for adHptive fe-use of the Dubuque Casket Company building transforms
the brlck structure from a warehouse Íl1w..3.6.affordahle renG¡j..:unit&. Specifically, the project will adapt
,;¡'8;ØOo- total square feet on the second, thini and fourth stories into thirty-six residential units. 'Pwelve
.two.bedroom apartment units will range in size tram 900 to lOOO square feel. "Fwenty-íüur on", bedroom
units will range in size nom 800 to 'JOO square feet. Amenities wi1! include common space, parking,
ciMltrai air, stove, refrigerator and on-site. laundry. Total project costs for restoration of the Dubuque
Casket Company Building is estÉma!ed at 5.6 mi1lion dollars.
The Washington Court project is designed to hous", low and moderate income tenants. 11I\e lmils will be
1IIiIIICIi.\iIì.\I;J;Q¡;p,ersoJ;l$. with incomes at or below 6.0% of the Dubuque County Area Median Income. As a
~eSpol1se to a siguiJicant demand for hanJieapp",J accessible Jiving units, 25%, or nine of the rental
housing units in the Washington Court project have been designed and equipped to meet the needs of
]gersons with sensory and mobility impainnents. A collaborative agreement with a local non-profit
<M1ganization will deliver services 'Nhieh will help disabled residents to live independently.
The Washington COUf! project represents an innovative adaptive t:e-lise project to resolve complex
housing needs for Dubuque residents and at the same time achievf~s un important revitalization strategy
for downtown Dubuque. It mm::imizes a number of ÜmdÍl1g sources including a conventional loan, state
HOME funds, Ci.ty of Dubuque Enterprise Zone credits and rebates, and equity provided through the
Affordable Housing Tax Credit Program and Historic Tax Credits.
. 60% of area Median Income for Dubuque County:..
1 person household maximum
2 person household maximum
3 person household maximum.
4 person household maximuri1
5 person household maximum
$23,760
$27.1 20
$30,540
$33,900
'536,600
Page I ofl
Gronen Restoration, Inc
From: Dennis W, Lauver [denlauver@mcleodusa,net]
Sent: Monday. November 08, 2004 8:05 PM
To: John Gronen
Subject: Downtown Clinton's experience with Apartment Development
John,
I am pleased to report that, from our perspective, the downtown apartment projects of CHI have been a
big success,
The Van Allen Apartments has been a huge success in Clinton. The response was so positive that CHI
has started redevelopment of the Howes Building, also located in downtown Clinton. CHI is looking
at a third project (the Armstrong building) in downtown Clinton. Three vacant buildings will be turned
into great housing units - if we had enough parking in the right spot, I suspect that a fourth building (The
Jacobsen) would also be redeveloped.
The tenants have been trouble free, at least according to some of the very merchants that were nervous
about the project. The investment to turn a vacant building helped breathe live into an area that needed
private sector investment. The vacant buildings just to the west ofthe VanAllen building have been
redeveloped and filled with retail and service businesses that are vibrant and doing well. Since the Van
Allen Apartments were completed, the Ankeny building, located across the street, have filled with retail
shops and businesses. Two years ago, the Ankeny building was vacant expect for a very small shoe
repair shop.
,CHI demonstrated an excellent job of screening the applicants and therefore eliminated any problems
with unsavory characters before they began. They are a class organization and Dubuque will benefit
from their investment in the community.
Dennis W. Lauver
Clinton Area Chamber of Commerce
333 4th Ave. So.
Clinton, Iowa 52732
563.242.5702
Opinions Expressed are not Necessarily Those of the c.A.C.C.
11/9/2004
11/10/2004 WED 15: 38 FAX 319 589 4497
1
DlIBlI~lIJ:: POLIŒ
Il!I UU~
TO: Micheal Van Milligen, City Manager
David Harris, City Housing
From: Cpl Scott Simpson
Ofc. Steve Olson
RE: Calls for service comparison
11/09/04
Dear Sir,
As per your request four similar rental properties calls for service were
examined for comparison. Comparison dates are from 01/01/02 through
11/09/04. The calls for service were broken down by calendar year. Two of the
properties are rooming/boardìng house style facilities. The other two are similar
in the number of housing units.
The boarding house units compared were The Old Main Hotel at 84 Main St.
and The Davis Place Apartments at 511-515 Garfield Ave. During the three year
period examined, The Old Main Hotel had 38 total calls for service, with 9 high
impact calls. The Davis Place had a total of 90 calls for service, with 6 high
impact calls for the same time period.
The apartment buildings which were examined were The Ventura Apartments
at 2703-2755 Ventura St and 2720-2777 Ventura and Bishop Block Apartments
at 90 Main St. The Ventura Apartments have 73 rental units, the buildings have
separate owners. Bishop Block has 32 rental units. During the three year period
examined Ventura Apartments had 106 total calls for service, with 20 high impact
calls. Bishop Block Apartments had 201 total calls for service, with 33 high
impact calls for the same time period.
Attached you will find a more detailed breakdown in annual calls for service to
each of the above mentioned properties. If there are any questions in reference
< this please contact me.
Respectfully Submitted,
.#v. .~
Cpt Scott W. Simpson L27
11/10/2004 WED 15: 39 FAX 319 589 4497
,
DUBUQUE POLICE
19J0UJ
The boarding style rentals were The Old Main Hotel and The Davis Place
Apartments. The following are the calls for service.
Old Main Hotel
84 Main St.
16 rooms
Davis Place Apartments
511-515 Garfield
38 rooms
2002 CFS:
Disturbances:
2
Crimes Against
Persons/Property: 3
3
12
Mise: 2
Fire/Ambulance: 0
Traffic: 0
Public Morals:
Total: 7
2003 CFS:
Disturbances:
Crimes Against
Persons/Property: 2
Misc.: 8
Fire/Ambulance:
Traffic: 3
Public Morals: 2
Totals: 17
3
0
21
3
12
9
8
5
4
41
11/10/2004 WED 15: 39 FAX 319 589 4497
DUBUQUE POLICE
I !J UU4
2004 CFS:
Disturbances: 7
Crimes Against
Persons/Property: 3
Misc.: 2
Fire/Ambulance: 0
Traffic:
Public Morals:
Totals: 14
2
13
5
6
28
The next two properties compared were The Ventura Apartments, 2703-2755
Ventura St. and The Bishop Block Apartments, 90 Main St
Ventura Apartments Bishop Block Apartments
2703- 2755 Ventura St. 90 Main St
73 Units 32 Units
2002 CFS
Disturbances: 6 10
Crimes Against
PersonslProperty: 7 26
Misc: 14 23
Fire/Ambulance: 3 2
Traffic: 4 12
Public Morals: 3
Totals: 35 76
::::;/10/2004 WED 15: 40 FAX 319 589 4497
1-
DUBUQUE POLICE
1 1] 001
2003 CFS
Disturbances: 8
Crimes Against
Persons/Property: 15
Misc: 6
Fire/Ambulance: 4
Traffic: 6
Public Morals; 0
Totals: 39
7
14
21
6
12
2
62
2004 CFS
Disturbances: 6 16
Crimes Against
Persons/Property: 6 12
Misc: 7 19
Fire Ambulance: 6 6
Traffic: 7 8
Public Morals: 0 2
Totals: 32 63
Letter to Our S taRçfw likrs
Friends.
With the passing of our tenth year in 2003, I am both humbled by the past accomplishments of
Community Housing Initiatives, lnc" and eager to take on the many challenges that lie ahead.
In 1993, CHI was formed as an affiliate of Upper Des Moines Opportunity, Inc. to help address
affordable housing needs in eight northwest Iowa counties. The goals of the organization were
modest in scope and local in nature. CHI staff and Board members had no inclination that the
organization would evolve into one of the largest nonprofit housing groups in the state of Iowa.
2003 not only brought with it our tenth year in existence, but also completion of one of the most
important projects that we have ever been involved with. The Van Allen and Son Department
Store in Clinton, one of the few remaining Iowa historical landmarks, was completed in May.
Designed by renowned architect Louis Sullivan, the Van Allen building is a structure with
international architectural significance. We were honored to have been given the opportunity to
work with a building of this stature.
While this Annual Report does look back at some specific CHI accomplishments and projects, it
appropriately focuses much attention on our ultimate purpose...forging partnerships to create
housing solutions that positively impact peoples lives.
CHI fully understands that there is much left do. We can assure all of our partners...past, present
and future...that we will continue to work true to our core values in our effort to help insure a
decent, safe and affordable home to all.
Doug laBounty, President
Community Housing Initiatives, Inc.
Cover pfwto: 'Ifœ o/anJlffen 'Bui(j{ing, Canton, Iowa
rrfie f£ar{y 'Years
Community t1ousing Initiatives was created as a solution to an identified need. Upper
Des Moines Opportunity, Inco, a Community Action Agency serving an eight county
region in Northwest Iowa, was challenged with transitioning at-risk families from
dependency on public assistance. Too often, this endeavor was hampered by a lack
of safe, decent and affordable housing for low income families. In 1992, the Board of
Directors of Upper Des Moines Opportunity instructed staff to pursue rental
rehabilitation as an initial means to supply quality housing for low income families.
Armed with good intentions and a genuine desire to expand housing development
knowledge, a team of UDMO staff members worked to piece together the first housing
project. Predevelopment activities and preparing applications for funding the first
housing project were among the most ambitious activities ever undertaken by UDMO.
One year later, the successful rehabilitation of 25 rental units in Spencer convinced
the development team there was much more housing work to be done. The UDMO
Board of Directors agreed, and in 1993, Community t1ousing Initiatives was born.
The dynamic pace of Ct11 was established early in the organization's history. Ct11
rehabilitated 25 additional rental units in 1994 and then determined it was time to
construct new housing units for the region. Less than one year after the completion of
the first rental rehabilitation project, Ct1l applied to the Iowa finance Authority for low
income housing tax credits to undertake new construction of affordable rental housing
for seniors. New construction allowed cm to adopt a set of building quality standards
and incorporate amenities such as garages, furnished community rooms and on-site
laundry facilities. Between 1995 and 1997 Ct11 developed three new construction
housing projects in three small Iowa communities.
A vacant building in Sioux City inspired the notion that the creation of new housing
units was not limited to constructing new buildings. In 1996, Ct11 worked to convert a
vacant postal annex building into 41 units of affordable housing. The successful
conversion of this existing structure led to Ct1I's first foray into historic rehabilitation,
a former Carnegie Library which is now home to 20 families. t1istoric rehabilitation
always presents many challenges, but remains the activity which we consider one of
our most valuable skills.
Over the past decade, Ct11 has grown beyond our original expectations. We have
extended services to span the state of Iowa, developed new and innovative housing
projects, and created nearly 700 housing units. While we have grown and changed
considerably, some things about Ct11 remain very much the same. We still embrace
new challenges, work as a team to identify needs, consider ourselves community-
building partners, and remain dedicated to creating housing solutions.
CHI, 1m;. began in 1993 with $8,000 see! money from 'Upper 'Des :Moines Opportunity,1m;.
'Community Housing Initiatives
. has a tremendous record of
accomplishment in advancing two
,important priorities in our state-
increasing the supply of affordable
housing and revitalizing communities
through the preservation of historic
downtown buildings. I have witnessed
first-hand the transformation resulting
from their work in several Iowa
communities and look forward to
seeing what's yet to come."
"cm has been a statewide
leader in adaptive re-use of
buidings to create housing. They
know how to create low income
housing and provide living spaces
that are vital to the
community as a whole,'
Curt J{euft
'1liœ Preswnt
:Jeáao[ J{ome Loan 'Bani(
of :Des :Moi1l£S
'Ifœ Importance of Partners
A learning organization cannot operate within a vacuum. CHI draws on the expertise
and knowledge of our partners as we investigate new housing programs and explore
innovative approaches to housing development. We recognize that our most valuable
resource is the strong partnerships we have created and sustained throughout our first
decade. Our partners provide the insight and dedication needed to create the best
housing product possible.
Cities: AdeL Clinton. Council Bluffs. Davenport, Dubuque, Estherville, Fort Madison,
Forest City, Garner, Graettinger, Hartley, Hawarden, Hull, Humboldt, Lake Mills, Lake
Park, Mason City, Milford, Moville, Mt. Vernon, Ottumwa, Osage, Sanborn. Sibley, Sioux
Center, Sioux City, Sioux Rapids, Spencer, Spirit Lake, St. Ansgar, Washington,
Waterloo, Webster City.
Contractors and Architects: Accord Architecture, Building Industries, Cardinal
Construction, Citation Homes, Gregg Construction, Grooms and Company
Construction, Henkel Construction, Holtze Construction, InjVision Architecture, L&L
Builders Co., Peterson Construction, Ringland Johnson Construction, Sande
Construction, Schelling Construction, Sioux Contractors, W.A. Klinger.
Financial Partners
American State Bank, Amerus Life Insurance Co., Bank Plus, Davenport Companies,
Enterprise Foundation, Enterprise Social Investment Corp., Fannie Mae, Farmers Trust
and Savings Bank, Federal Home Loan Bank of Des Moines, First American Bank, First
Citizens National Bank, First Federal Bank, First National Bank of Sioux Center, First
National Bank of Sioux City, Horizon Bank, Iowa Department of Economic
Development, Iowa Equity Fund, Iowa Finance Authority, Manufacturer's Bank &. Trust,
Melvin Savings Bank, Midwest Housing Equity Group, National Park Service, Northwest
Federal Savings Bank, People's Bank, United States Department of Housing and Urban
Development, Union Planters Bank, US Bank
Legal and Accounting
Zenor and Houchins, Ringsdorf, Nelson &. Gayer P.LC, PowelL Goldstien, Frazer &.
Murphy, WipFli Young
Other
Census Services of Iowa, Fielder and Associates, Iowa Coalition for Housing and the
Homeless, Iowa Department of Cultural Affairs (State Historical Society of Iowa), Home
Care Services, Iowa Department Of Human Rights, Iowa Historic Preservation Alliance,
Mid-Sioux Opportunity, Mary Jean Montgomery, National Historic Preservation Trust,
Northeast Iowa Community Action Agency, Opportunity Village, REM Iowa, ResCare,
USDA Rural Development, VNA of Clinton, Woodbury County Community Action Agency
We would like to recognize the Board and Directors and Staff of Upper Des Moines
Opportunity for their ingenuity in creating a new kind of housing development
organization. UDMO remains our strongest partner and we thank them for their
continuous support of CHI and our mission to create the best housing solutions
possible. In addition, we would like to thank the numerous local economic
development and housing groups, Main Street organizations, business leaders and
individuals that have spent countless hours building upon this organization's mission.
In 1994, cm, Inc. was awaráeá its first :Housing 'Ta;c Creáit project, 16 I1£W constructúm units in SÚJfey
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:Focus on the :Future
New Directions in Dousing
It is difficult to imagine what CttI would look like today if we spent the last decade
building only one type of housing. Our housing projects are as diverse as the
communities we serve. Each community brings a new set of housing needs and
different ideas for impacting change within a neighborhood. In the end, housing
solutions are dictated by local needs and creating models which are compatible with
the economic development efforts of the community.
CHI strives to constantly focus on the future and to quickly respond to the changing
needs of Iowans. Strategic planning sessions for CHI integrate the staff, Board of
Directors, architects and members of funding organizations as a mechanism for
anticipating new trends and identifying unmet housing needs. The scope of our
services is a direct response to community needs and filling gaps in housing and
social service models.
Creating Partnerships that Expand Services
The most recent new direction in the development of housing for CHI is housing for
residents with special needs. In order to create successful housing models for adults
with special needs, CHI adds professional service providers to the project
development team. Professional service providers are invaluable for identifying the
need for housing for adults with special needs and designing housing units which meet
the unique accessibility needs required for those individuals to lead independent lives.
Most importantly, these professional organizations help CHI design and implement a
comprehensive supportive service program and remain long-term partners to the
project.
In 2002, CttI partnered with two Iowa organizations dedicated to assisting adults with
physical and mental disabilities. As a result, the Van Allen Building in Clinton and the
River City Apartments (former YMCA) in Mason City feature floor plans with 25% of the
rental housing units handicapped accessible for adults with sight and hearing
impairments and limited mobility. In addition, the VNA of Clinton and North Iowa
Vocational Center of Mason City contract with CHI to provide services on-site for
residents with special needs.
Project planning in 2003 introduced CHI to three new supportive services partners.
Two partners are recognized Iowa leaders specializing in providing services for adults
with mental disabilities. In addition, the non-profit Home Care Services, Inc. worked
closely with the local development team to plan and design CHI's first proposed
affordable assisted living project, in Adel.
'Tfæ Carnegie Lwrary, CHI's first histmi.c refioljifitation project, was junáetf in 1996
Christmas Party
Van .9L[{en
5¥artnœnts
Cerebrate with :Friends
Resident Appreciation Program
In 2003, CIiI, introduced a Resident Appreciation Program. In simple terms, the
program was created to provide a mechanism to say thank you to our residents. Funds
from the Resident Appreciation Program are used to communicate with residents
through informational letters and announcements, encourage fun activities, and
provide tokens of our'appreciation.
The first year of the Resident Appreciation Program was a resounding success. First
year Resident Appreciation Program activities included a children's coloring contest,
tenant photo contest, and fall gift which included healthy snacks and useful household
items. The Resident Appreciation program also funded interior holiday decorations for
hallways and common areas, Christmas parties, and social events.
In Davenport, Resident Appreciation Program funds were used to sponsor the
Timberland Ridge Fun Day. This full day event was planned and staffed by Davenport
residents and included face painting, a barbecue lunch, children's games, obstacle
courses, and children's air jump in the shape of fairy castle.
Grand Openings/Ribbon Cuttings
The process of creating a new housing project can span from two to four years.
Throughout that time, local development team partners work diligently to design and
build a housing solution that is both compatible with economic development goals
and consistent with local housing needs. By the time a new project is complete, it truly
is a community event. Ground breaking ceremonies and Grand Opening celebrations
are our way of recognizing our partners and showcasing the results of countless hours
of collaboration.
On a frigid day in January of 2003, CHI, hosted a "ground breaking" ceremony in the
former Mason City YMCA. Iowa Governor Tom Vilsack joined CHI, state officials, and
the local development team to mark the onset of the restoration process. The
ceremony included tours of the building, a history of the facility and its impact on
Mason City, and words of encouragement from several local elected officials, Despite
the cold indoor temperatures, the excitement of the project that lay ahead encouraged
guests to socialize and share memories of days passed in the YMCA. Re-named River
City Apartments, the 46 unit apartment project is slated to open late in 2003.
In May of 2003, Community Housing Initiatives, completed restoration of the Van Allen
building in Clinton, and celebrated the Grand Opening of one of Iowa's National
Historic Landmarks. The process of restoration was a story of a four-year collaboration
with Clinton Downtown Partners, city leadership and countless community spirited
volunteers. In fact, the project received so much support from the community that
over 2,000 people visited the grand opening, forming a line a city block long an hour
before the event began. The building is now completely restored and houses a locally-
owned pharmacy on the first level and nineteen picturesque apartments on the upper
levels.
1999 was a major mifeston£ for CHI. Ca[['TerminiÚ was tfæ first projeLt to com6in£ commercia! space,
ajJoráofjfe rentaf.s ami mar~t rate rentaf.s.
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JL{ways 2\çnœmber wfiat is Important
Creating a Dome
As CHI's first decade comes to a close, we reflect on the people who shared the first
ten years with us. Families of all shapes and sizes select our buildings. New residents
furnish, decorate, and care for their apartments. Then the magic happens. They hang
family photos, host birthday and slumber parties, bake after school cookies, form
friendships with neighbors, and invite grandchildren to spend the weekend. They build
lives, make memories and create homes.
Many of the photos featured in the 2003 Annual Report were submitted by the people
who call our work home. These images and the individuals they represent inspire us
each and every day.
In our first fka¡¡k 1993-2003, CHI fins creatd/preserveá 658 rentof units in 28 projects wcatd in 20
commwzities, representing 15 countie.5 for a tota! investment of over $56,000,000 in fwusing.
rrfœ C:J-{I¡ Inc. cream
CJ-fI¡ Inc. 13oard of Ðirectors
Dick Barkema, Cha ir
Larry Rohret, Vice Chair
Connie Herpst, Secretary
Lorna Burnside Jane High
Doug LaBounty Jake Moermond
Joel Sorenson Wayne West
CJ{I¡ Inc. Manogement %am
Doug LaBounty, President
Sam Erickson, Vice President
Kris Vodraska, Director of Property Management
Trish Bruning, Director of Finance
Brooke Laird, Property Management Coordinator
Connie Whitney, Asset Management Assistant
Pat Nissen, Accounting Assistant
Linda Alexander, Property Management Assistant
Amanda Stehlik, Administrative Assistant
Jennifer Kubat, Accounting Payroll Clerk
Tim Bernhardt, Maintenance Coordinator
Mike VanderWeide, Maintenance
Terry Crawford, Davenport Maintenance Director
Jerry Miller, Mason City Site Manager
'Tf1.is .%muaf 2I...eport is áetfim.œá to tfæ tnerrwry of 13 iffy 13imngs, OUT pm! ami CO-WOTR§'T.
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The Ivy Apartments
Uumboldt, Iowa
Artist: Bailey Anderson
Age 9