Housing Trust Fund Award
.
CITY OF DUBUQUE, IOWA
MEMORANDUM
July 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 a 20-year forgivable
loan, from proceeds of the Iowa Department of Economic Development Local Housing
Assistance Program, to Scott and Dawn Potter, in the amount of $200,000 for
construction of an 18-room single-room occupancy facility at 511 Garfield Avenue. The
Dubuque Housing Commission and the Dubuque Housing Trust Fund Committee support
this project.
This is the first time the City has participated in new construction of affordable housing;
however, it seems justified from two viewpoints:
1 . The original intent was to renovate the existing structure, but it was
determined that renovation was not feasible.
2. Development of single-room occupancy projects is very difficult and may
take extraordinary measures, such as this.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
~lf~~e('lL
MCVM/dd
Attachment
cc: Barry Lindahl, Corporation Counsel
Tim Moerman, Assistant City Manager
David Harris, Housing Services Manager
.,
CITY OF DUBUQUE, IOWA
MEMORANDUM
6 July 00
To: Mike vren, City Manager
From: David Harris, Housing Services Department
o
~:
0'<
(--
B-
e
_L~> >-.
c:::: (,-
er;
~O
)>~
o.
CD
C>
C>
<-
<=
I
N
:0
m
()
1'1
?
"'-
m
o
Re: Housing Trust Fund Award
:Po
:x
<::)
w
.c:-
Introduction
The purpose of this memorandum is to request the City Council's approval ofa Local Housing
Assistance Program (LRAP) award to Scott and Dawn Potter, for COnstruction of a single room
occupancy (SRO) facility on Garfield Avenue.
Background
The Housing Department applied to the Iowa Department of Economic Development, in
November 99, for an LRAP grant, in the amount of$500 000. The funds were to be allocated to
two high-priority projects: I) the Maria House, proposed by Opening Doors and six participating
area women religious organizations; and 2) a project to develop additional single room occupancy
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 of SRO facilities; and worked with Maria House to complete an application
for the conversion of the St Mary's Convent to transitional housing. The Committee awarded
$200 000 in LRAP funds to Maria House in March; this action was subsequently approved by the
City Council at its 10 April meeting.
In the meantime, the Committee received applications for SRO facilities from Scott Potter and
John Yager. At its 23 March meeting, the Trust Fund Committee made a preliminary
commitment for award of $200 000 in LRAP funds for the Potter project, located at 511 Garfield
Avenue.
The Garfield address is the former site of the original Dubuque location of the Wartburg
Theological Seminary. Due to structural problems with the foundation - determined in
subsequent analysis - the owner elected to demolish the building; this was accomplished in May.
The Housing Department then requested an amendment, to the Iowa Department of Economic
Development, of the LRAP award, to allow construction of a replacement SRO facility. This was
..
..
granted and the Trust Fund Committee, in turn, met and again approved a $200 000 LHAP award
to Potter for this purpose, at its 28 June meeting.
Discussion
The project plan will result in construction of 18 single rooming units in a masonry building, with
an on-site manager's unit and adequate off-street parking. A re-zoning, to OR designation, was
previously approved by the Council for this purpose. Project amenities will include adequate
facilities for the physically-disabled, common area living and kitchen facilities and air conditioning.
Terms of the award include a 20-year forgivable loan, requiring that all residents earn low or
moderate incomes; and that rents remain restricted during that term to affordable levels. Rents
for low-income residents (earning up to 60% of area median), currently may not exceed $242 per
month. This rate includes heat and all utilities; all rooms will be fully furnished.
The Housing Commission has subsequently recommended funding for this project at its July
meeting, pending the owner's securing adequate private financing. A preliminary lender
commitment has been obtained.
Action Step
The action requested of the City Council is to approve a 20-year forgivable loan, from proceeds
of the IDED Local Housing Assistance Program award, to Scott and Dawn Potter, in the amount
of $200 000, for construction of an 18-room SRO facility at 511 Garfield Avenue.