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Housing Trust Fund Award/Maria House ~ ~,t ,'O. ",.91 CITY OF DUBUQUE, IOWA MEMORANDUM April 13, 2000 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Housing Trust Fund Award Housing Services Manager David Harris is recommending approval of financial assistance to Opening Doors, for the Maria House transitional housing project as follows: 1. A 200,000 20-year forgivable loan, from the Iowa Department of Economic Development Local Housing Assistance Program grant. 2. A $34,698 20-year forgivable loan, from the FY 99 CDBG allocation to the Housing Trust Fund. I concur with the recommendation and respectfully request Mayor and City Council approval. Michael C. Van Milligen MCVM/dd Attachment cc: Barry Lindahl, Corporation Counsel Tim Moerman, Assistant City Manager David Harris, Housing Services Manager \;/1 'Gnbnqno J ( eJ\JJO {,to 6 S :21 \.¡d £ ¡ Bdil 00 03J\i3:'J3CJ ~ "'0."" CITY OF DUBUQUE, IOWA MEMORANDUM 10 April 00 To: Mike ~MilIigen, City Manager From: Davi~arris, Housing Services Department Re: Housing Trust Fund Award Introduction The purpose of this memorandum is to request the City Council's approval ora Local Housing Assistance Program (LHAP) award to the Maria House transitional housing facility. Background The Housing Department applied to the Iowa Department ofEconomÎc Development, in November 99, for an LHAP grant, in the amount of$5oo 000. The funds were to be allocated to two high-priority projects: I) the Maria House, a project of Opening Doors and six participating area women religious organizations; and 2) a project to develop additional single room occupancy (SRO) housing, in anticipation of the closing of the Washington Park Place. In February, we were notified ofan award in the amount of $400 000. Subsequently, the Trust Fund Committee published a request-for proposals, in solicitation of interest from owners ofSRO facilities; discussions are on-going at this time with one potential developer. In the meantime, Maria House has continued to develop its project, which involves the conversion of the fonDer St Mary's Convent into an IS-bed SRO transitional housing facility for women and children. Opening Doors was awarded a $291 000 grant from the Federal Home Loan Bank's Affordable Housing Program; and final bids have been received, with Conlon Construction and Straka-Johnson Architects producing specifications, bidding documents and final construction drawings. The building conversion budget totals $605 000. Construction has commenced - in March - with occupancy now scheduled for September. Discussion The Housing Trust Fund Committee, at its 23 March meeting, approved an award to Maria House, in the amount of$232 500. This consists of$200 000 in LHAP funds; and $32 500 from the remaining balance in the Trust Fund CIP for Fiscal Year 1999. This award will be committed as a 20-year forgivable loan, requiring that period of benefit for the intended residents of Maria House. In addition, the Housing Department has made a $20 000, 3-year forgivable loan to the project, with funds from the Lead Paint Hazard Reduction Program. The Housing Commission has subsequently endorsed this action, approving the assistance on the same terms, at its April meeting. In addition, as one of this year's Trust Fund grantees - the Food Pantry - had a remaining funds balance, in the amount of $219S, the Commission committed this amount to the Maria House project. Accordingly, the total recommended City loan is $234 69S. Action Step The action requested of the City Council is to approve the following assistance to Opening Doors, for the Maria House transitional housing project: I. a $200 000 20-year forgivable loan, with proceeds from the IDED Local Housing Assistance Program grant 2. a $34 69S 20-year forgivable loan, with proceeds from the FY99 CDBG allocation to the Housing Trust Fund