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Gateways to Home Grant Wash. Neigh. Center purchase D~~JE ~Yk.~ MEMORANDUM March 28, 2005 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Award from Dubuque Housing Trust Fund to Gateways to Home Housing and Community Development Department Director David Harris is recommending City Council approval of a $30,000 grant to Gateways to Home to purchase the former Washington Neighborhood Center at 382 East 21 st Street and renovate and convert the property into two rental units. I concur with the recommendation and respectfully request Mayor and City Council approval. 711v/ (~/1;fL MiCLI C. Van Milligan MCVM/jh Attachment cc: Barry Lindahl, Corporation Counsel Cindy Steinhauser, Assistant City Manager David Harris, Housing and Community Development Department , , .' ) t..i D~~~E ~Yk.~ MEMORANDUM 24 March 05 To: Mike Van Milligen, City Manager From: David Harris, Housing and Community Development Department Re: Award from Dubuque Housing Trust Fund to Gateways to Home Introduction The purpose of this memorandum is to request the City Council's approval of assistance to Gateways to Home, to purchase a property at 382 East 21 st Street. Discussion As part of the Five Points area revitalization project, Housing Department staff have sought to find a buyer for the former Washington Neighborhood Center, located at 382 East 21st Street. This facility has ceased operations as a community center and homeless shelter over the past couple of years, with the owners wishing to sell and move on to homeless outreach ministry. Gateways to Home, the local CHDO (community housing development organization), is seeking to expand its rental property portfolio and has reached an agreement to purchase the property. Gateways will invest more than $60 000 in an extensive renovation, converting the home from a 7-bedroom shelter to two rental units. The purchase price is $55 000. Gateways requested assistance from the Housing Trust Fund, to help defray the costs of acquisition and rehabilitation. In March, the Trust Fund recommended a $30 000 grant to Gateways, using CDBG funds allocated to the Trust Fund for this purpose. At its 22 March meeting, the Housing Commission approved this recommendation. Recommendation It is recommended that the City Council approve this recommendation. Gate-ways has a proven track record of property stewardship, now owning five other rental units. Their board, headed by Doris Hingtgen, is committed to restoring this property - the original Catholic Worker House - as part of the Five Points revitalization effort. They will provide two rental units which will remain affordable for long-term. And restoration of this property will assist the City's efforts in promoting additional private investment in the Five Points neighborhood. 1