Housing Trust Fund Award/Maria House
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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
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Attachment
cc:
Barry Lindahl, Corporation Counsel
Tim Moerman, Assistant City Manager
David Harris, Housing Services Manager
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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