Housing Eagle Valley MidAmerica
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MEMORANDUM
November 30, 2004
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: City Support to MidAmerica Housing Partnership for Construction of
Affordable Town Homes in the Eagle Valley Subdivision
A development agreement with Fondell Construction was approved by City Council in
December 2003, specifying terms of City assistance to be made available to the
developers to produce new affordable single family housing. In exchange for this
assistance, Fondell agreed to limit lot and house sizes, so that moderately priced
homes would be made available. Since that time, Housing Department staff has been
working with the non-profit MidAmerica Housing Partnership to assemble a
development proposal for Eagle Valley.
Housing and Community Development Department Director David Harris recommends
City Council approval of a resolution indicating support of the application of MidAmerica
Housing Partnership to the Iowa Department of Economic Development for subsidy of
construction of affordable town homes in the Eagle Valley Subdivision. He further
recommends concurrence with the Housing Trust Fund recommendation to grant
$44,000 to MidAmerica Housing Partnership, from CDBG funds currently available in
the Housing Trust Fund account, for additional financial assistance,
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Michael C. Van Milligen ~
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Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
David Harris, Housing and Community Development Department Director
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CITY OF DUBUQUE, IOWA
MEMORANDUM
23 November 04
To: Mike V~~illigen, City Manager
From: DaviJ14arriS, Housing and Community Development Department
Re: City Support to MidAmerica Housing Partnership for Construction of
Affordable Town Homes in the Eagle Valley Subdivision
Introduction
The purpose of this memorandum is to request City Council approval of the
attached resolution, indicating support of the application of MidAmerica Housing
Partnership (MAHP) to the Iowa Department of Economic Development for
subsidy of construction of affordable town homes in the Eagle Valley Subdivision.
The resolution also approves a grant of $44 000 to MAHP, from CDBG funds
currently available in the Housing Trust Fund account, for additional financial
assistance.
Background
A development agreement with Fondell Construction was approved by City
Council in December 2003, specifying terms of City assistance to be made
available to the developers to produce new affordable single family housing. In
exchange for this assistance, Fondell agreed to limit lot and house sizes, so that
moderately priced homes would be made available.
Since that time, Housing Department staff have been working with the non-profit
MidAmerica Housing Partnership, based in Cedar Rapids, to assemble a
development proposal for Eagle Valley. MAHP has constructed more than 550
units of both rental and homeowner housing since 1992 in eastern Iowa, and
currently has total corporate assets in excess of $13 million.
Discussion
MAHP has proposed to construct 16 town homes in Eagle Valley, half to be
made available to buyer families earning less than 80% of area median income,
and half to households at 80-110% of area median. These will be 3-bedroom,
1.5 bath homes built as duplexes, with single car attached garages. Finished
living space will be 1200 square feet. These will be modular units, manufactured
by MidWest Homes, in Carroll, and sold at no more than $120000 to the lower-
income families. The above-income (80%+) buyers will pay $137 000 for their
homes.
MAHP's costs for these homes is $145 000. The difference in cost and price
reflects requested subsidy from both the City and Stat~ of Iowa sources. A
HOME Program application has been prepared by MAHP, for submission to the
Iowa Department of Economic Development for a grant from the new American
Dream Downpayment Initiative (ADDI). The ADD! grant plus City CDBG funds
will be used to write down the sale price on the lower-priced units to $120 000.
Principal and interest payments are projected at $679/month, making this home
affordable to a buyer family at income as low as 70% of area median.
The application to the Department of Economic Development requires a
resolution of support from the locality in which the housing project will be located.
This resolution indicates City support of MAHP's request for HOME Program
funds. In addition, the resolution approves the Trust Fund's recommendation to
grant MAHP a per-unit subsidy of $5500, for a total of $44 000 for the eight town
homes, in order to write down purchase costs for income-qualifying households,
Action Step
The action requested of the City Council is to approve the attached resolution
supporting MidAmerica Housing Partnership's application to the Department of
Economic Development for HOME Program funds. This project achieves the
Council's stated goals of providing new single family homes for moderate-income
families, while additionally providing an equal number of homes for lower (below
80% income) households, in the Eagle Valley Subdivision. If successful, it is
MAHP's intention to construct additional homes in this subdivision and expand a
base for future Dubuque housing development operations,
RESOLUTION NO.
-04
A RESOLUTION OF SUPPORT FOR THE CONSTRUCTION OF
AFFORDABLE SINGLE FAMILY TOWNHOMES IN THE EAGLE
VALLEY SUBDIVISION
WHEREAS, MidAmerica Housing Partnership (MAHP) proposes to construct
eight town homes affordable to households earning less than 80% of area
median income, in the Eagle Valley Subdivision in the City of Dubuque; and
WHEREAS, the City of Dubuque is supportive of provision of new single family
housing affordable to low- and moderate-income families; and
WHEREAS, the City of Dubuque has provided the developers of Eagle Valley
Subdivision with financial assistance in the interest of reducing development
costs and producing affordable housing; and
WHEREAS, MAHP has requested Iowa Department of Economic Development
assistance from the American Dream Downpayment Initiative (ADDI) program in
order to reduce sale prices to lower-income families.
THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. The City of Dubuque supports the application of MidAmerica
Housing Partnership to the Iowa Department of Economic Development for
HOME Program American Dream Downpayment Initiative funds to assist in
development of the proposed MAHP housing in the Eagle Valley Subdivision.
Section 2. City Community Development Block Grant funds in the total
amount of $44 000 are authorized as a grant to MAHP for construction subsidy of
the affordable town house units.
Passed, approved and adopted this
day of December 2004.
Terrance M Duggan, Mayor
Attest:
Jeanne Schneider, City Clerk