Housing Trust Fund ApplicationTHE CTTY OF
DUB E
Masterpiece on the Mississippi
MEMORANDUM
September 25, 2007
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
recommending City Council approval of an application to be submitted by the Housing
Trust Fund to the Iowa Finance Authority for a Local Housing Trust Fund grant of
$200,000 to support the Washington Neighborhood: Revitalize! strategy. The Iowa
Finance Authority requires a 25% local match.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
/~2, ~~~ ~
a
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David Harris, Housing and Community Development Department Director
24 September 07
To: Michael Van Milligen, City Manager
From: David Harris, Housing and Community Development Department
Re: Housing Trust Fund application
Introduction
The purpose of this memorandum is to inform you of an application to be
submitted by the Housing Trust Fund to the Iowa Finance Authority for a Local
Housing Trust Fund grant of $200 000.
Discussion
This year's application continues support for the Washington Neighborhood:
Revitalize! strategy. We began this effort in 2005, assisted with a $1fi3 000
Housing Trust Fund grant. This application is designed to continue
implementation of this initiative, by promoting a 2-year program of
homeownership assistance, housing rehabilitation and capacity building for non-
profits and small contractors working in this area.
The IFA grant requires a 25% local match. For this application, we have
proposed this be achieved by the following:
1. A combination of CDBG and HOME Program funds, in the amount of
$577 000, for both homeownership and rental rehabilitation lending.
2. The City General Fund program to assist moderate-income home buyers, now
totaling a $500 000 commitment; the first $100 000 of which will be
contributed in support of the White Street City-School District partnership
demonstration town homes project.
3. The City Council in addition has entered into an agreement with IFA for
participation in the ~urHome Program, to borrow up to $500 000 to finance the
White Street project and other homeownership activities in the Washington
Neighborhood during the next 10 years.
In addition, several other partners are continuing their commitment to
participating with the Trust Fund in this initiative. Most notably, Dubuque Bank
and Trust has has maintained their pledge of a $1 million low-interest mortgage
lending pool. DB&T, through their subsidiary community development
corporation, will also provide seed money to acquire available properties, in order
to make them available to new owners or to contractors/non-profits who will
rehabilitate them prior to resale.
The Dubuque County-ISU Extension Office continues to provide financial and
homeownership counseling to all homebuyers participating in our lending
programs.
Other partners include the Washington Neighborhood Association, the Four
Mounds Foundation/HEART Program -expanding this year to include a crew of
women trainees currently receiving public assistance; and the broad-based
community group we have assembled to assist with the neighborhood visioning
and planning efforts now under way.
Summary
The Housing Trust Fund Committee has approved this application to IFA for
activities in support of the City's Washington Neighborhood revitalization project.
Documentation of local and City match is required as a condition of Finance
Authority consideration of this request.
An excerpted application to the Iowa Finance Authority is attached for your
review.
att