Local Housing Assistance Funds
.
.
.
.
'"
RESOLUTION N0 273-00
A RESOLUTION AUTHORIZING AN APPLICATION TO THE IOWA DEPARTMENT
OF ECONOMIC DEVEWPMENT FOR LOCAL HOUSING ASSISTANCE PROGRAM
FUNDS
Whereas, the Iowa Department of Economic Development has published notice of availability of
funds under the Local Housing Assistance Program (LHAP) ; and
Whereas, the Department of Economic Development is encouraging municipalities to promote
housing assistance programs which address umnet needs and complement current and planned programs of
economic development; and
Whereas, the Consolidated Plan for the City of Dubuque includes the objectives of promoting
homeownership opportunities for low- and moderate-income households, elimination of slum and
blight and public and private investment in revitalization of downtown neighborhoods; and
Whereas, the Housing Services Department has for the past two years successfully
administered a homebuyer assistance program for moderate-income families funded through an
LHAP award received from the Department of Economic Development; and
Whereas, the Housing Trust Fund Committee and Housing Commission have reviewed the
proposed applications fur moderate-income household home purchase assistance and for
construction of affordable new condominium homes for low-income households.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, IOWA.
Section 1. The Mayor is hereby authorized to execute this resolution in support of two
applications to the Department of Economic Development for Local Housing Assistance Program
funds, to assist in provision of home purchase assistance to low-and moderate-income
households.
Section 2. This resolution shall take effect immediately.
Passed, approved and adopted this ll}'h day of June, 2000.
m
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider, City Clerk
.
CITY OF DUBUQUE, IOWA
MEMORANDUM
June 15, 2000
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT:
Pre-application for Local Housing Assistance (LHAP) Funds
.
Housing Services Manager David Harris is recommending approval of two pre-applications
to the Iowa Department of Economic Development (lDED) for Local Housing Assistance
Program funds, for two programs of assistance to low- and moderate-income homebuyers.
The Housing Trust Fund Committee and Housing Commission have approved submission of
another application to IDED for moderate-income buyer assistance. With this program, the
Housing Department can offer a complement to the CDBG-funded First-time Homebuyer
Program, which provides assistance to buyers earning below 80% of area income. The
City currently has another pending PATH Program application to the Federal Home Loan
Bank, which previously awarded $350,000 to the Housing Department to assist first-time
buyers earning less than 60% of area income. The City closed 39 loans through the PATH
(Pathways Affordable to Homeowners) Program last year, in partnership with seven
sponsoring local lending institutions. With this continuing variety of programs, we can
provide financial assistance to buyers at all low- and moderate-income levels to help
families attain home ownership.
The proposed LHAP "pre-application" is for $100,000, to again provide purchase and
rehabilitation assistance to moderate-income families, projected to result in purchase of 13
homes. This assistance is provided as 4%, long-term loans, up to $800,000 for purchase
and rehab.
I concur with the recommendation and respectfully request Mayor and City Council
approval. ( (J
(11J'J ~1t,dt~
Mibhael C. Van Milligen
MCVM/dd
Attachment
VI I f,n\.>:io.r";o
"",,_, f",>
8JIUO S,',.o .' II,!,-,
.
cc: Barry Lindahl, Corporation Counsel
Tim Moerman, Assistant City Manager
David Harris, Housing Services Manager
S I :21 Hd S I NDf 00
03/\13~J38
.
~
~
CITY OF DUBUQUE, IOWA
MEMORANDUM
14 June 00
TO: Mike v~ren, City Manager
FROM: David ~arris, Housing Services Department
RE: Pre-application for Local Housing Assistance (LHAP) funds
INTRODUCTION
The purpose of this memorandum is to request the City Council's authorization to apply to the
Iowa Department of Economic Development (lDED) for Local Housing Assistance Program
funds, for two programs of assistance to low- and moderate-income homebuyers.
.
DISCUSSION
The Housing Services Department has previously successfully applied to IDED for Local Housing
Assistance Program funding, most recently receiving a $400 000 grant last year for assistance to
the Maria House transitional housing project and for construction of a new 18-bed single room
occupancy (SRO) facility on Garfield Avenue.
Also previously (1998) funded through LHAP was a $150 000 homebuyer assistance program-
providing both downpayment and rehabilitation loans - to moderate-income fumilies (earning
between 80 and 100% of area median income) - purchasing homes in selected downtown and
near-downtown census tracts. To-date, we have closed on 16 properties, averaging $61 000 per
sale, with fami1y income averaging 90% of median. Total private financing has averaged $52000
per home.
.
The Housing Trust Fund Committee and Housing Commission have approved submission of
another application to IDED fur moderate-income buyer assistance. With this program, the
Housing Department can offer a complement to the CDBG-funded FirstTime Homebuyer
Program, which provides assistance to buyers earning below 80% of area income. And we
currently have another pending PATH Program application to the Federal Home Loan Bank,
which previously awarded $350 000 to the Housing Department to assist first-time buyers earning
less than 60% ofarea income. We closed 39 loans through our PATH (pathways Affordable to
Homeowners) Program last year, in partnership with seven sponsoring local lending institutions.
With this continuing variety of programs, we can provide financial assistance to buyers at all low-
and moderate-income levels to help fumilies attain homeownership.
.
.
.
-
The proposed LHAP "pre-application" is for $100 000, to again provide purchase and
rehabilitation assistance to moderate-income fumilies, projected to result in purchase of 13 homes.
This assistance is provided as 4%, long-term loans, up to $8000 for purchase and rehab.
In addition, the Trust Fund Committee and Housing Commission have approved submission of a
second pre-application for LHAP funds, to address a long-standing problem of blight and
deterioration on West Eighth Street. Two vacant-abandoned houses, in the 600 block, have been
proposed by the owner to be demolished. In their place, a five-unit condominium home
development will be constructed. At present, the developer's projected home sale price is
$70 000. These homes will then be sold to first-time buyer households earning no more than 60%
of area median income. The LHAP funds will be utilized by the Housing Department to subsidize
this cost, with $20 000 second mortgages provided and furgiven over term, resulting in actual
sales price of$50 000. In this way, multiple objectives of slum clearance, reinvestment in a
downtown neighborhood and additional owner occupancy for low-income households can be
achieved. $100 000 is proposed to be requested in LHAP funds for this purpose.
RECOMMENDATION
It is recommended that the Council approve the two pre-applications to IDED for Local Housing
Assistance Program funds. If these pass initial Department review, the Housing Department will
be invited to submit a full application in August, with notification of award in January 2001. The
resolution authorizing this application is attached.