Step by Step Application Hsg Trust Fund
c.
5U~~E
~<k~
MEMORANDUM
July 12, 2006
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: Housing Trust Fund Application
Housing and Community Development Department Director David Harris is providing
information about a Dubuque Housing Trust Fund application for $160,000 in Iowa
Finance Authority grant funds for the Step by Step project.
/ll1,.;{ ~~)(lll i ____-
Michael C. Van Milligen-
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
David Harris, Housing and Community Development Department Director
D~~~E
~ck-~
MEMORANDUM
10July06
To: Michael Van Milligen, City Manager
From: David Harris, Housing and Community Development Department
Re: Housing Trust Fund application
The purpose of this memorandum is to inform you of an application to be submitted by
Dubuque's Housing Trust Fund to the Iowa Finance Authority for a Local Housing Trust
Fund grant of $160000.
Background
The Iowa Finance Authority is offering $2.3 million in this year's competition for Local
Housing Trust Fund awards. The City of Dubuque's Housing Trust Fund has
successfully applied for LHTF funds, in 2004 and 2005, for projects in support of the
HEART Program and the Washington Neighborhood revitalization strategy,
respectively, totaling $263 000.
According to the IFA allocation plan regulations, local housing trust funds must be
"separate and distinct" from any other organization and make "all final funding
decisions," in order to be certified as eligible. In order to comply with this requirement,
the City Council in December 2003 passed Ordinance No. 93-03 empowering
Dubuque's Trust Fund to act accordingly. Chapter 26, Article III was amended to add
Section 26-37, providing for the Trust Fund to have the authority to "make application to
IFA for funds from the LHTF Program. . . and to direct. . . how such funds shall be
used."
Discussion
The Housing Trust Fund Committee met on 22 June and approved this year's LHTF
application in support of the Step by Step project. Step by Step is a newly incorporated
non-profit organization, whose purpose is to promote the interests of persons with
disabilities. Its first project is development of a residential facility, at 759 Bluff Street, to
create a supportive living environment for low-income, physically-disabled women.
To-date, we have raised $622 000 in support of the $1.1 million project, The City
Council in December 2005 sponsored an application for HOME Program funding, which
was awarded by IDED in the amount of $350000. As part of that application, the
Council approved a $100 000 grant from Rental Rehab Program reserves, as matching
funds. The Housing Commission, at its 24 January meeting subsequently approved a
$108000 CDBG loan. The Enterprise Zone Commission, at its 24 May meeting,
approved an application for $64 000 in EZ tax credits.
We continue to raise the additional funds required. In April, an application was
submitted to the Des Moines Federal Home Loan Bank, in the amount of
$210000. This application was submitted by Dubuque Bank and Trust, with the City as
co-sponsor. In February, Step by Step submitted an application to the State Historic
Preservation Office (SHPO) for federal Historic Rehab tax credits, in the amount of $172
000. Approval for both of these applications is pending.
The requested grant from the Iowa Finance Authority, for $160 000, will balance the
funds needed to undertake this project. We will learn of all funding decisions in
September. A projected construction start up date is November, with a six-month
completion schedule.
The project has received more than $119 000 in additional contributions to-date,
including donated professional services from Dave Clemens, Terry Maiers, Jane Steele,
Tom Kane and Lundh Architects. Students and faculty from the University of Iowa
Clinical Law Program have performed more than 700 hours in research and plan
review. And Tom ThompsonrrFM has agreed to sell the property at $43 000 less than
appraised value.
Action Step
No action is required by the City Council. This memorandum is provided for information
only.