Loading...
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.