Six Month Report on Housing Committee Activities
CITY OF DUBUQUE, IOWA
MEMORANDUM
September 11, 2000
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Six-Month Report on Housing Committee Activities
Housing Services Manager David Harris is transmitting the Annual Performance
Report of the Housing Services Department.
~l~L
Michael C. Van Milligen
MCVM/dd
Attachment
cc: Barry Lindahl, Corporation Counsel
Tim Moerman, Assistant City Manager
David Harris, Housing Services Manager
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SEPTEMBER 2000
ANNUAL PERFORMANCE REPORT
OF THE HOUSING SERVICES
DEPARTMENT
DETAILING THE EXPENDITURE OF STATE AND FEDERAL
FUNDS IN ADMINISTRATION OF HOUSING PROGRAMS
PROMOTING A BETTER QUALITY OF LIFE FOR
DUBUQUE'S LOW- AND MODERATE-INCOME CITIZENS
(SUBMITIED AS PART OF THE COMMUNITY AND ECONOMIC DEVELOPMENT
DEPARTMENT'S ANNUAL CONSOLIDATED PERFORMANCE AND EVALUATION REPORT
TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT)
Affordable Housing
The City's Housing Services Department provides funding assistance and services in five primary
activities: 1) rental assistance programs; 2) housing rehabilitation-loan programs (both for
homeowners and rental units); 3) home purchase assistance programs; 4) housing code
enforcement; and 5) lead paint hazard reduction in both homeowner and rental units.
SECTION 8 RENTAL ASSISTANCE
The primary means of directly providing affordable rental housing is available through HUD's
Section 8 Program, which offers rental assistance to lower-income families. The City provides
approximately $2.8 million annually, with funds received from HUD, directly to area landlords, to
subsidize rents for 993 tenant households. This program has been operational in Dubuque since
1976 and operates at capacity.
However, because of budget-tightening decisions made by Congress in recent years, new Section 8
funds have become increasingly scarce. Since FY93 HUD offered no opportunity for application
for incremental Section 8 housing vouchers or certificates. Family Unification Program certificates
were made available in FY97, in national competition, for which the City of Dubuque's application
was denied; and Mainstream Program housing vouchers, for disabled households, were offered
during FY98. An award of 40 Mainstream vouchers was made to the City in 1999.
However, incremental housing vouchers were funded by Congress in FYOO. The Housing
Department made application for 40 new vouchers, as well as 20 additional Mainstream Program
units, during the fiscal year. These applications are pending.
HOME PURCHASE ASSISTANCE
The Housing Department has shifted efforts in recent years to place more emphasis on assistance to
first-time homebuyers. In FYOO, 29 homes were financed with CDBG funds, for first-time
purchasers, and totaled $145,000 in City investment.
To meet the increasing need for homebuyer assistance, the Housing Department has sought
assistance from other funding sources. The Iowa Department of Economic Development's Local
Housing Assistance Program awarded $150,000, for a moderate income First-Time Homebuyer
Loan Program, to the City, in 1998. This Program design includes assistance to homebuyers
earning 80-100% of area median income who purchase housing located in certain downtown census
tracts. This Program became operational in FY99, and has closed 12 loans totaling $101,685 to
date. Area lenders and buyer funds totaled $1,122,204. Program boundaries were expanded during
FY99, to increase participation.
The Housing Department was also awarded a homebuyer assistance grant, in the amount of
$350,000, from the Des Moines Federal Home Loan Bank's Affordable Housing Program in FY99, in
partnership with six area lenders. 38 loans totaling $350,000 in grant funds, matched by $1,909,897 in
private lending and $238,123 in owner funds, were approved within six months of the 1999 award.
Due to the success of this program, another applicati~n was submitted during FYOO, and funded in
the amount of $230 000. Operations will commence in early FYOl. The new grant will provide
purchase and rehabilitation assistance to families earning no more than 50% of area median income.
Total private investment match for all homebuyer programs - from the buyer families, Federal Home
Loan Bank, state funds, and area lenders - equaled $4,769,021 during the:fiscal year.
REHABILITATION
We continued administration of a number of housing rehabilitation-loan programs, for both owner-
occupied housing and rental units. 43 apartments and 36 SRO rooming units were completed or in
the process of rehabilitation, using $485,420 in City funds, matched by $1,012,588 in owner/lender
financing. These loans include the following programs: Lead Paint Abatement, Moderate Income
Rental Rehab, Emergency Repair, Accessibility Rehab Program, Single Room Occupancy Rehab and
Rental Rehab (HOME). The City investment sources were Block Grant funds, the Iowa Department
of Economic Development's HOME Program and BUD Special Purpose Grant funds.
The Housing Departments $220,000 HOME Program grant, received in FY99, continued rental unit
rehabilitation activities for landlords renting to low- and moderate-income tenants. 11 loans totaling
$107,809 in City funds and matched by $269,061 in private lending, were closed during the:fiscal
year, for 28 units and 240 SRO units.
The $3.69 million lillD program for Lead Paint Hazard Reduction activities completed its third year
of operations. 340 units have been inspected under the program. Grants to date have been made to
owners of 231 rental units and 14 homeowner properties. Program expenses for lead paint removal
and associated activities totaled $567,207 for the:fiscal year. The contract with BUD was approved
for renewal for the fourth program year.
CDBG-funded rehabilitation assistance was provided to 61 low-moderate income homeowners, using
a combination of City programs. These included The Homeowner Rehab Program, providing long-
term, low-interest loans; Sanitary Sewer Program, a program designed for repair and connection to
City sewer; Operation Paintbrush, providing small grants for paint for exterior improvements; and
Operation Up-Keep, a program used only in downtown census tracts for homes identified as badly in
need of exterior repairs. Up-Keep makes $2,000 grants available to the lowest-income homeowners.
Lead paint hazard reduction grants and loans were also made, in the sixth year of operation of
Dubuque's Childhood Lead Paint Poisoning Prevention Program. In all, the City invested $597,785 in
91 homeowner improvement projects in FY2000.
ADDITIONAL PROGRAM ACTIVITIES
The Housing Department continued to work in partnership with area non-profit agencies, including
contracting with Alternative Services and Four Oaks in administration of the Family Self-Sufficiency
Program in support of 45 participating Section 8 Program families. As a result of a BUD Family Self
Sufficiency Program Coordinator grant award received in the amount of
$30,642, the FSS Program was continued for a seventh year.
The Housing Trust Fund Committee made $100,000 in grants to three non-profit agencies: Maria
House, for transitional housing; Dubuque Food Pantry, for two rental units; and the YWCA Domestic
Violence Shelter, for general remodeling.
The Crime Free-Multi Housing Program, jointly sponsored by the Housing, Police, Legal and Human
Rights Departments, was again offered to landlords in FYOO.
Another Local Housing Assistance Program (LHAP) application was awarded to the Housing
Department, by the Iowa Department of Economic Development (IDED). This grant, for $400,000,
was in turn awarded by the Housing Trust Fund Committee to two high-priority projects. The first
was for the conversion of the former St. Mary's convent into a transitional housing facility for women
and children, for 18 occupants. This facility, named Maria House and operated by Opening Doors
Inc., was expected to become operational in September, 2000. The construction cost, of$600,000,
was subsidized with the Housing Department's LHAP award and additional City grants totaling
$54,698 from the CDBG and Lead Paint programs. Another significant funding source was the Des
Moines Federal Home Loan Bank's Affordable Housing Program, which awarded $291,5000 to the
project.
With the remaining $200,000 in LHAP funds, the Trust Fund Committee awarded a grant to a private
developer of single room occupancy housing, at a site on Garfield Avenue, for 18 SRO units. At
fiscal year end, this project was pending, awaiting designation as an urban revitalization district by the
City Council.
Another LHAP grant application was submitted to IDED, in the amount of$150,000. $100,000 was
requested to continue lending under the moderate income First Time Homebuyer Program. The
balance of$50,000 was proposed to assist in slum building clearance and construction offive
affordable condominium homes at a site on West Eighth Street. This application remained pending at
fiscal year end.
Renovation of the Iowa Inn remains pending. A third application for Housing Tax Credits, to the
Iowa Finance Authority, was denied. As a result, the Housing Department facilitated transfer of
ownership of the property to a Minnesota developer - Metro Plains - for preparation of a revised
application. This was submitted in August. The City's $700,000 commitment remains in place for
this $3.5 million project.
The Housing Services Department re-submitted a HOME Program consortium application to HUD
(the FY99 application was denied.) Ifapproved, the City, working under an inter-governmental
agreement with Dubuque County and twelve other small cities located throughout the County, will be
designated as a HOME Program entitlement jurisdiction. This will result in receipt of$400-700,000
in HOME funds annually, to be used for rehabilitation, home purchase assistance and other housing
improvement programs. The City of Dubuque will serve as lead entity for the consortium oflocal
governments.
The Housing Department's original customer services survey project, initiated in late-1998,
culminated in a "Housing Action Conference," held in February, to develop a consensus strategy for
delivery of housing and supportive services as part of development of the Year 2000-2005 HUD
Consolidated Plan. This ambitious two-year citizen participation project was recognized by the
National Association of Housing and Redevelopment Officials (NAHRO) with an award of merit. As
well, this effort was recommended by the regional HUD office for a national Best Practices Award and
was one of 12 Iowa projects nominated.
CITY OF DUBUQUE
ANNUAL PERFORMANCE REPORT
FY2000
HOUSEHOLDS AND PERSONS ASSISTED WITH HOUSING
PERCENTAGES 0-30% 31-50% 51-80% 81-100% TOTAL
area median area median area median area median
income income income income
RENTERS 43 43
OWNERS 0 19 88 14 121
EMERGENCY CODE
REPAIR WANS 10
SINGLE ROOM 36
OCCUPANCY FACn.ITIES
TOTAL 210
CITY OF DUBUQUE
HOUSING SERVICES DEPARTMENT
Annual Action Plan
Annual Performance Report: Reporting Period 1 July 99 - 30 June 00
Prioritv/ Needs / Actions
Results
1. Improve Affordability of Rental Housing
Apply for additional Section 8 funds, as
available
Application was made to HUD for
Section 8 "Mainstream Program" funds
in the amount of $400,000, to fund 20
vouchers for one bedroom disabled
households; and for 40 housing vouchers,
in the amount of$950,000. Applications
pending at fiscal year-end.
Utilize existing vacant or under-utilized
buildings to create affordable housing
FYOO - $5.500 CDBG expended for
maintenance ofIowa Inn.
2. Improve Affordability of Housing for Low
Income Homeowners and First-Time Home
Buyers
Continue Homeowner Rehab Loan Programs,
completing 51 homes
61
51
$395.937
$403.452
Loans approved
Homes completed
CDBG committed
CDBG expended
Continue DREAMS Program, purchasing derelict
housing, performing necessary repairs to stabilize
further deterioration and marketing to lower-
income families.
1
Home sold
Continue/expand First-Time Homebuyer Program,
assisting 29 first-time buyers
29 Purchase Loans approved
$ 145.000 CDBG committed
$ 145.000 CDBG expended
$1.498.797 Lender/Owner match
3. Assist Non-Profit Organizations to Provide
Permanently Affordable Renter and Owner-
Occupied Housing.
Utilize Housing Trust Fund for development of
non-profit owned units; focus non-profit activity
on specific housing development not being met by
local government
Provide administrative/technical assistance to non-
profit housing providers.
An award was received from the Des
Moines Federal Home Loan Bank's
Affordable Housing Program for
$230,000 to assist qualifying 1 st time
buyer families. This application was
made in conjunction with 8 local lenders
and sponsored by American Trust.
Awarded in July 00. Performance results
of the previous year ($350,000) FHLB
Homebuyer Program.
9 Loans approved
$ 50.000 AHP committed
$ 160.000 AHP expended
$3.086.994 Lender/Owner match
Additional loans for home purchase
assistance were made from the Iowa
Department of Economic Development's
1998 Local Housing Assistance Program
(LHAP) award of$150,000 to the City
of Dubuque.
14
14
$ 120.100
$ 689.655
Loans approved
LHAP committed
LHAP expended
Lender/Owner match
Award was received from IDED for additional
Local Housing Assistance Program (LHAP)
funds in the amount of $400,000, to assist
Single Room Occupancy (SRO) and
Transitional Housing projects.
Trust Fund Awards were made in the amount of
$100,120 to three local non-profit agencies, for
transitional housing, affordable rental units and
renovation ofthe Domestic Violence Shelter.
Total projects cost: $743.527.
Housing Department staff serve on boards and
committees of Gateways to Home, Heartland
Housing Initiative and Habitat for Humanity;
and help staff the Dubuque County
Stakeholders Housing Sub-Committee.
4.
Develop Increased Public Awareness of
Housing Problems in the Community; Develop
Possible Solutions
A fourth year "Crime-Free Multi Housing
Program." workshop was organized and
presented by the Housing and Police
Departments, for area landlords, utilizing
CDBG and Law Enforcement Block Grant
funds.
A fourth annual City-wide Rental Unit survey
was completed, under contract with the Loras
College Center for Business and Social
Research.
$5.500
CDBG expended
5. Concentrate Housing Rehabilitation Efforts,
for Renter- and Owner-Occupied Housing, in
DowntownlNorth End Census Tracts
Continue/expand use of the following rehab
assistance programs using HOME Rental Rehab
Program, completing 8 units.
8
$ 191.975
$ 105.603
$ 269.061
Units completed
HOME committed to 30 projects
HOME expended
Owner/Lender match
Emergency Code Enforcement Loan Program. 10 Units assisted
assisting 10 units and 13 rooming units. $ 113.837 CDBG committed
$ 59.191 CDBG expended
Operation Paintbrush Program, completing 9 9 Homes painted
homes $ 1.512 CDBG expended
Operation Up-Keep Program, providing 10 Homes approved
$2,000 grants to lower-income homeowners in 10 Homes completed
target census tracts, for exterior home $ 19.852 CDBG committed
repairs, completing 10 homes. $ 18.473 CDBG expended
Sanitary Sewer Installation! 7 Loans approved
Replacement Program. for homeowners 7 Homes completed
$ 24.348 CDBG committed
$ 24.348 CDBG expended
Accessibility Program, providing assistance to 3 Units approved
landlords installing unit improvements for disabled 2 Units completed
tenants, completing 2 units. $ 14.739 CDBG committed
$ 9.119 CDBG expended
Moderate Income Rental Rehab
Program, providing loans to owners renting
to tenants with moderate (up to 80% of area
median) income, completing 3 units.
Concentrate Housing Code Enforcement in
downtown census tracts, completing 524
inspections and managing 30 "problem
properties"
Lead-Based Paint Hazard Reduction
Program, completing 16 units, as part of
housing rehabilitation program activities.
Childhood Lead Paint Poisoning
Prevention Program, reducing lead hazards for
both low-moderate income tenants and
homeowners. Included in activities under this
program was a series of 40-hour trainings for
certification for lead contractors and workers.
6. Prevent the Increase of Homelessness for
At-Risk Individuals and Families
Continue and expand the Family Self-Sufficiency
Program.
6
3
$ 64.749
$ 47.845
$ 28.000
524
871
1.265
1342
30
13
16
6
$140.000
$107.810
55
91
$464.746
$ 21.563
94
Loans approved
Units completed
CDBG committed
CDBG expended
Lender/Owner match
Inspections
Re-inspections
Violation notices issued
Violations corrected
Vacant houses monitored
Loans approved
Units completed
SRO'S completed
CDBG committed
CDBG expended
Residential units inspected
Residential units completed
HUD grant funds expended
Iowa Dept. of Public Health
funds expended.
Contractors, workers and
homeowners trained and
re-certified
A second 3 year HUD Lead Hazard Reduction
Grant was applied for, in Round 8 competition, in
the amount of$2,719,719.
A HUD "Healthy Homes Initiative" Grant was
applied for, in partnership with the Health
Services Deptartment and the Visiting Nurses
Association, in the amount of $1,146,490.
An award was received from HUD, of
$30,642 under the Family Self-Sufficiency
Coordinator Program.
Using these funds, the Housing Department
continued a contract with Alternative
Services, Inc., to provide case management
services, expanding the number of
participating families from 33 to 45. $15,000
in City CDBG funds is used to provide
additional subsidy of program expenses.
Continuum of Care
In FYOO, for the first time a Dubuque Consortium made application to HUD for ''Continuum of Care"
funds. The Housing Department organized a series of strategic planning sessions with a number of local
non-profit agencies, working in partnership with the City Community Development Department and the
County Department of Human Services (DHS). A "Gaps Analysis" was conducted: Consensus was met
regarding the need for a "one-stop" intake and referral point of entry for homeless individuals and farniles;
and for staffing assistance for Maria House, the new transitional housing facility. Project Concern Inc. and
Opening Doors, respectively, prepared individual applications for these programs, in the combined amount
of $305,000.
The Housing Department submitted the application package to IDED in May, who in turn ranked it
according to all other applications received, state-wide. The proposal for staffing Maria House was
included in the State's recommendations for HUD funding and was forwarded to Washington. This
application remained pending at fiscal year-end.
Other Actions
1. Public Policies
Barriers to affordable housing exist in Dubuque. These barriers have been identified by various
reports and studies performed by or on behalf of the City of Dubuque. One such study was the
1991 report ofthe Affordable Housing Task Force which identified some of the barriers as follows:
.
Increasing opposition by property owners to proposals for development of affordable
housing in their neighborhoods.
.
The necessity of subsidy in order to make projects feasible, as affordable rents cannot pay
the costs of new developments.
.
Decreasing availability of federal housing assistance.
.
Increasing prevalence of service sector jobs, resulting in reduced real income growth.
Nationally, young households (aged 18-34) had lower real income in 1989 than in 1974.
(State of Nation's Housing. 1991 ). In Dubuque, adjusted per-employee earnings actually
decreased 11 % during the 1980-1990 period.
.
Opposition by the City to directly providing publicly owned housing.
.
A strong real estate economy, pushing up home prices and making upper-end housing
construction a demand market.
.
The age of Dubuque's housing (45% built pre-1940) resulting in increased maintenance and
operating costs.
2. Actions
The DREAMS (Dubuque Reaches Out with Efficient, Affordable Means of Shelter) Program
continued. Under this program, the City purchases abandoned houses and makes them available to
lower-income, first-time buyer families who participate in a homeownership skills training program.
The City subsidizes the program through write-offs of acquisition costs, as necessary. However,
only one home sold and none were purchased during this year.
3. Institutional Strudures
The Housing Department works cooperatively with a number of other agencies participating in the
housing delivery system in Dubuque. The Department is represented on a sub-committee of
Heartland Housing Initiative, on Alternative Services' Family Self-Sufficiency Task Force and on
the area Homeless Coordinating Board. The Department Manager serves on the City's Section
504/ ADA Advisory Committee, which oversees compliance activities relative to accessibility of
City facilities and programs. Two staffserve on board of he State-wide Iowa Association of
Housing Officials (IARO) organization.
4. Intergovernmental Cooperation
The City works cooperatively with other governmental entities participating in the housing delivery
system. As a member of the Family Self-Sufficiency Task Force, the Housing Department
participates with the Eastern Iowa Regional Housing Authority (EIRHA) in administration of
Section 8 programming. Alternative Services, Inc. has contracted with the City for case
management services in connection with the Family Self-Sufficiency program. Forty-five families
are currently being served. And, as part ofthe delivery system for Family Self-Sufficiency, the
Housing Department coordinates activities with the Workforce Development Center Office, under
the State ofIowa's Family Investment Program (FIP).
The City's Housing Department enjoys positive working relationships with a number of State-wide
housing providers, including: the HUD Area Office in Des Moines; the Iowa Finance Authority; the
State Department of Economic Development (DED), which administers the HOME Investment
Partnership Program; the Des Moines Federal Home Loan Bank, which administers the Affordable
Housing Program for the district; and the Iowa Coalition for Housing and Homeless.
5. Lead-Based Paint Hazard Redudion
The Housing Department and the Health Services Division worked closely with the Iowa
Department of Public Health (DPH) in the sixth year of Dubuque's Childhood Lead Paint Poisoning
Prevention Program, monitoring the incidence oflead paint in dwellings occupied by children
identified with elevated blood levels (EBL's). All rental units with young children are tested and
lead paint removal is required as a condition of participation in the City's rehab loan programs.
In addition, a $3.69 million HUD Round 4 Hazard Reduction Program Grant was awarded to the
City in FY97; activities continued under this program during FYOO. A fourth program year
extension was approved by HOD.
6. Affirmatively Furthering Fair Housing
The City conducted a fair housing impediments analysis in 1993 and incorporated its findings in the five
year CRAS. In addition, the City independently investigates discrimination complaints, having been
designated by HOD as a substantially equivalent human rights agency.
A Fair Housing Analysis was conducted for the City, under contract with the John Marshall Law
School Legal Support Center, and published in February, 1996. See Section lb. for additional
information. A request for proposals to conduct an up-dated study was released by the City Human
Rights Department in August.
Assessment
The assessment of the City's reporting period efforts to assist in affordable housing development is as follows:
The most recent application for housing vouchers - for 40 one-bedroom units for disabled households - was
awarded in 1999. Two additional voucher applications are now pending for 60 units. Since 1993, the goal of
providing additional rental assistance for low-income households, however, has not otherwise been achieved.
The City's difficulty in obtaining new Section 8 rental assistance, according to HUD, has to do with the
relative needs of other applicant jurisdictions within the district (Iowa and Nebraska). HUD's position has
been that Dubuque's need - according to Census data - has been met relative to the needs of other cities
competing for these limited funds.
In addition, budget reductions and rescissions have further reduced availability of incremental Section 8 tenant-
based assistance.
The First-Time Homebuyer Program - providing $5,000 downpayment loans - was continued. This effort was
successfully supplemented by another award from the Federal Home Loan Bank for low-income homebuyer
grants in the amount of $230,000. Total FHLB assistance received during the past two years was $580,000,
reflecting the Bank's support ofthe Housing Department's partnership with area lenders.
Key to the City's strategy in provision of assistance to homeless individuals and families is the developing of
relationships with neighborhood-based and/or non-profit agencies, to form partnerships for delivery of services.
The Housing Department's goal remains the establishing of additional facilities serving the homeless, whether
they be single room occupancy, transitional housing or other special needs - type housing. The City's role is to
provide technical assistance, grant preparation and sponsorship and some funding match for capital costs.
This strategy proved successful in FY2000, as Opening Doors was established to own and operate the Maria
House. As well, the first consortium application for HUD Continuum of Care funds was facilitated by the City.
The City's policy, as currently defined, is not to own or operate housing, nor to provide on-going operational
subsidies (other than rental assistance). This places the responsibility for carrying out these functions on the
private and/or non-profit sectors. The City will continue to develop these partnerships and solicit interest in
ventures to meet homeless/special needs housing objectives.
The following table identifies this past year's housing activity leverage from various sources.
City:
Total Expenditures - FYOO
IDED Local Housing Assistance "LHAP"
Federal Home Loan Bank "PATH"
CDBG
lIDD Special Purpose Grant
HOME
Iowa Dept. Of Public Health
Section 8 Rental Assistance
lIDD Lead Hazard Reduction Program
FSS Coordinator
Total City Investment:
PrivateILender Match:
Total Housing Investment
$ 101,685
$ 160,000
$1,260,915
$ 0
$ 66,000
$ 21,563
$2,799,624
$ 507,207
$ 24,799
$ 5,001,793
$ 6,316,034
$11,317,827
Housine Department Proeram Fundin& Sources
Section 8 Housing Vouchers
Section 8 Mainstream Program
Federal Home Loan Bank
Affordable Housing Program
FY99 IDED Local Housing Assistance Program
FYOO IDED Local Housing Assistance Program
FYOO Family Self-Sufficiency Coordinator
Round 8 lIDD Lead Paint Hazard Reduction
Program
BUD Healthy Homes Initiative
Iowa Dept. of Public Heahh CLPPP Grant
lIDD Continuum of Care
HOME Entitlement Designation
A~plications
$ 950,000
$ 400,000
$ 230,000
$ 500,000
$ 150,000
$ 30,642
$2,719,719
$1,146,490
$ 21,563
$ 305,057
Received
Pending
Pending
$230,000
$400,000
Pending
$ 30,642
Pending
Pending
$ 21,563
Pending
Pending