HomeMy WebLinkAbout02-22-2007 Housing & Community Development Commission
AGENDA
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
IOWA CITY PUBLIC LIBRARY, ROOM A
123 S. Linn Street, Iowa City
THURSDAY, FEBRUARY 22, 2007
6:30 P.M.
1. Call Meeting to Order
2. Approval of the January 18, 2007 Minutes
3. Public Comment of Items Not on the Agenda
4. Discussion Regarding Applications for FY08 Community Development Block Grant
(CDBG) and HOME Investment Partnership Program (HOME) Funding
-- Question/Answer Session
5. Adjourn
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CITY OF IOWA CITY
MEMORANDUM
Date:
To:
February 16, 2007
From:
Housing and Community Development Commission
Tracy Hightshoe, Associate Planner
February 22 HCDC Meeting & Site Visits
Re:
The February 22 meeting will be held at the Iowa City Public Library in Room A and it
will be structured around the Question/Answer session with the applicants for FY08
CDBG/HOME funds. A copy of the schedule for the evening is enclosed as well as a
copy of the staff report for each application. The report includes concerns or issues that
need to be addressed by the applicants. Commission members may also ask questions
they have about the applications to the applicants. Please review the applications and
staff reports. The public service and public facility applicants are allowed five minutes
and the housing applicants are allowed ten minutes to respond to questions.
The Financial Terms for CDBG\HOME Applicants from the FY08 Applicant Guide is
included in the packet. It clarifies Council's policy on financing terms for CDBG/HOME
assisted projects.
Previously, I emailed the ranking sheets to commission members. If you requested
paper copies, they have been provided. Ranking sheets are due back to staff on
Tuesday, February 27. They can be delivered, faxed or emailed to my attention. HCDC
will meet March 8 & 22 to review the groupings and to make funding recommendations.
These meetings will also be held in Room A at the Iowa City Public Library.
Site visits have been scheduled for Tuesday, Feb. 20 and Wednesday, Feb. 21. As we
have four members one day and 5 the next, staff is posting public notice in case we do
in fact have a quorum both days. It is not mandatory that you come, but staff is required
to post notice anytime there are 5 commission members in attendance. We would
rather be safe than sorry! In addition to the posted sites on the agenda, we will be
driving by proposed housing sites and Wetherby Park on one or both days. This will be
discussed by the members who are present the day of the tour. Staff will provide
transportation to and from City Hall; however commission members may also take their
own vehicles if they wish. We estimate returning to City Hall by 12:30 or 12:45 on both
days.
If you have any questions about these items or will be unable to attend, please contact
me at 356-5244 or by email at tracv-hiqhtshoe@iowa-citV.orq. See you the 22nd!
REMINDER: the February 22"d Meeting is located at the
Iowa City Public Library, Room A
123 S. Linn Street, Iowa City
6:30 PM
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CITY OF IOWA CITY
MEMORANDUM
TO:
FROM:
DATE:
RE:
Housing and Community Development Commission
Community Development Staff
February 16, 2007
FY08 CDBG/HOME Funds Available and Breakdown by Category
The City received 20 applications requesting $2,346,185 in CDBG/HOME funding. Last
year the City received 18 applications requesting $1,704,207 in funds. The City expects
to have available $1,694,376 in federal funds (includes FY08 entitlements plus program
income) from the U.S. Department of Housing and Urban Development. The City
anticipates about the same HOME entitlement at last year and a 1 % reduction in the
CDBG entitlement, however Congress has not approved the final HUD budget.
After removing the Council approved set-asides and earmarks for housing rehabilitation
($243,964 - set aside plus revolving loan fund income generated by the housing
rehabilitation program), economic development (FY08 set-aside is $0 as the fund has a
current balance of over $330,000), Aid-to-Agencies ($105,000), and program
administration and planning ($223,412), the City of Iowa City has approximately
$1,122,000 available to allocate to FY08 project requests.
Upon reviewing the FY08 requests, please review the strategic plan in the 2006-2010
CITY STEPS document. CITY STEPS is used as a guide in the allocation process and
uses five-year priorities, strategies and goals to address the needs of low-income
persons for housing, jobs and services in Iowa City.
Because CITY STEPS is a multi-year plan it is important that we annually address the
strategies and goals to ensure that they are being met. These goals, and the City's
effort to meet these goals, will be the method HUD uses to measure the City's
performance and compliance with the CITY STEPS plan. In order to direct CDBG and
HOME funds to activities meeting these multi-year goals, funds are allocated to the
categories below. The categories and the amount of funds available in each are as
follows:
CITY STEPS 2006-2010 Guidelines Total FY08 Available funds
funds to allocate for
FY08 requests
Housing Activities (48%) $939,364 $726,516
Public Services (8%) $121,700 $16,700
Economic Development Activities (9%) $0 (Referred to ED
Subcommittee)
Public Facilities and Infrastructure (21 %) $409,900 $378,784
Program Admin., Planning and Contingency
(14%) $223,412
Total: $1,694,376 $1,122,000
(Over)
February 16, 2007
Page 2
As a reminder, it is the policy of the City Council to allocate $105,000 of the public
service funds to the annual operating expenses of Human Services Agencies, as part of
the City's Aid to Agencies budget. This leaves approximately $16,700 for other public
service activities. The funds in the public services category represent our "cap" on
public services as identified in federal law (15% of the CDBG entitlement plus prior year
program income).
Please note that the dollar amounts assigned to housing and public facilities are
somewhat flexible. A minimum of $726,516 must be allocated to HOME eligible
housing activities. The total allocation for public service projects is not flexible and may
not exceed $16,700.
Also, please remember that a requirement of the HOME program is that not less than
15% of the HOME allocation, at least $95,583 this upcoming fiscal year, be reserved for
Community Housing Development Organizations (CHDOs). Of the FY08 housing
applicants, The Housing Fellowship and HACAP qualify as CHDOs. HOME funds may
also be used for CHDO operating expenses. The total amount that may be allocated in
FY08 is $31,861 (5% of the HOME entitlement). Funds allocated to CHDO operating
expenses do not count towards the CHDO set-aside amount.
Sources of FY08 Funds
FY08 CDBG Entitlement
(Estimated with a 1 % reduction from last year's entitlement)
FY08 HOME Entitlement
FY08 Anticipated CDBG Program Income
FY08 Anticipated HOME Program Income
Prior Year Unexpended CDBG Funds
Prior Year Unexpended HOME Funds
$673,447
$637,222
$125,000
$100,000
$2,852
$155,855
TOTAL $1,694,376
There is a possibility that additional funds may be available for HOME and CDBG
projects. Staff has conservatively estimated program income and there are funds in our
line of credit that staff must review and determine if the City may allocate these funds in
this allocation cycle. In addition, Congress has not passed a final budget. At this point,
we anticipate the same HOME entitlement and a 1 % reduction in CDBG funds. Our
estimate reflects HUD's recommendation. Before the March meeting, staff will advise
the commission if there are any changes to the budget as presented in this memo.
If you have any questions about the amounts available for allocation or about the
allocation process feel free to contact Steve Long or Tracy Hightshoe at 356-5230.
MINUTES
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
THURSDAY, JANUARY 1S, 2007, 6:30 P.M.
LOBBY CONFERENCE ROOM, CITY HALL
PRELIMINARY
Call to Order:
Meeting called to order at 6:35 pm
Steve Crane, Holly Hart, Brian Richman, Thomas Niblock, Andy Douglas, Marcy
DeFrance
Members Present:
Members Absent:
Jerry Anthony, Michael Shaw
Staff Present:
Tracy Hightshoe, Steve Long
Others Present:
Steven Ramirez
RECOMMENDATIONS TO COUNCIL (become effective only after separate Council action):
None
Approval of the November 16, 2006 Meeting Minutes
Niblock motioned to approve the minutes as submitted. Hart seconded the motion and the motion carried
on a vote of 6-0.
Public Comment of Items Not on the Agenda
Hightshoe introduced the Commission's newest member, Andy Douglas, as well as the new minute taker,
Steve Ramirez. Richman suggested that everyone at the table introduce themselves.
Long announced that HACAP submitted a letter yesterday stating that they were not able to spend all of
their allocated money for FY06 so they returned $71,466. Long said that the number should read
$71,446. Long said that the money will go into the allocation for FYOS. Richman asked how much they
were allocated last year. Long said $300,000, but that wasn't quite enough to purchase the final
condominium. Crane asked if they said how much more they needed. Hightshoe said that it may not have
been so much the amount of money but more the terms. Hightshoe said when they accepted the money it
was a 100% payback loan and when they provide transitional housing they accept households that may
only pay $25 a month in rent. It is difficult to pay back a 100% loan when some of your tenants pay such
a small monthly rent. Hightshoe said that $70,000 might have purchased another unit in conjunction with
private financing, which they have done in the past, but not under those terms.
Long said that, two weeks ago, City Council approved some flexibility in the lending terms for housing
projects. The commission can look at a project and look at the Pro Forma and see what each individual
project can afford to pay back. Hightshoe said that the Commission will talk 'about the Pro Forma
because with the flexibility some of the housing providers might come in requesting a 0% condition
occupancy loan; however may be able to afford some level of repayment. Staff will be doing more
underwriting, such as looking at their debt-coverage ratio, past revenue, rent generated and discussing
Housing and Community Development Commission
January 18, 2007
Page 2
payback terms in more depth with applicants. Crane asked if such a large return is uncommon. Long said
yes. Crane asked if the entity would have a better option or first choice when mone'y is allocated later this
year. Long said that is up to the commission. Hightshoe said that an entity takes the risk when they return
the money that HCDC might decide they don't get it back. Hightshoe said they only have 5 years from
allocation to spend that money. Long noted that they have 2 years now for those funds.
Richman said that the HCDC should make a note to housing developers that the HCDC has a high
degree of confidence that the developers will in fact spend the money allocated to them within their
required time period. Hart noted that that amount isn't enough to buy anything. She could think of only
one place in town where the returned amount would cover the cost of a condominium. Richman clarified
that it can be combined with additional funds. Long noted that in March the HCDC can discuss situations
in which developers request something and the HCDC can negotiate what works best. He restated the
Commission's flexibility. Richman asked for any other items not on the agenda up for discussion. There
were none.
NEW BUSINESS
Review of the FY08 Allocation Process & Pro Forma Basics
Hightshoe brought Commission's attention to the packet with the allocation timeline. Hightshoe referred to
February 22nd as the date that the HCDC will be able to meet with applicants and this date is in fact not
the third Thursday of the month. Long said that next Monday, applications are turned in and applicants
sign up for time to speak to the HCDC on February 22nd. Long said that they will' only ask very specific
questions within 5 to 10 minutes.
Hightshoe said that ranking sheets would be provided on or before the Feb. 22 meeting and due to staff
on Feb. 27. Hightshoe explained that for these ranking sheets, the HCDC evaluates each application and
assigns points as directed on the sheet for items such as organizational capacity and leveraging of funds.
Hightshoe said that turning in these forms is not a meeting. Hightshoe said HCDC members can email
them to her, mail or drop them off. Hightshoe said that once she has all the ranking forms, she puts
together an Excel spreadsheet to present the information for further discussion and recommendations.
Hightshoe said that on March 8 HCDC would receive a packet with a consensus of everyone's ranking
and funding recommendations. Hightshoe said that on March 22 HCDC will meet to discuss the final
funding recommendation sent to Council. Hightshoe said a recommendation must happen on that night.
Hightshoe pointed out the commission will need to create a subcommittee after the final recommendation
has been made and complete a justification memo for the Council packet. This memo will be due to staff
March 27. Hightshoe said that after the recommendation is sent to Council, staff starts working on the
annual action plan, a HUD requirement that identifies the funding allocations, what the projects are and
how the projects meet our CITY STEPS objectives. Hightshoe said that once the action plan is complete,
Housing and Community Development Commission
January 18, 2007
Page 3
the public comment period begins. Hightshoe said that staff always encourages a few of the HCDC
members to attend the City Council meeting on May 1. At this meeting the Council will have a public
hearing on the FY08 Annual Action Plan and approve a resolution to accept the plan. At this meeting
Council can modify or accept HCDC recommendations. Richman said he went last year. Niblock did as
well. Hightshoe said that they will only have a joint meeting with city council if needed.
Hightshoe said that FY08 projects begin on July 1. Richman clarified that there was no meeting on
February 15 or March 15th. Hightshoe said that is correct. Hightshoe said that HCDC is back to the third
Thursday of the month schedule in April. Hightshoe then said that the February 22nd, March 8th and March
22nd meetings will take place in the Iowa City Public Library. Long said the applicants will be there as well.
Douglas said he will be out of town on February 22. Hightshoe said he will get the minutes. Long said
they will also inform him of any concerns or questions. Crane asked if the meetings start at 6:30.
Hightshoe said yes. Richman said that the meeting on the 8th could go late. Hightshoe said that the
applicants are aware that they are not to submit new information after the initial relevant information,
unless requested by HCDC. Long said that there may be some lobbying as well. Hightshoe said that
every year staff reviews all applications and includes a staff report for HCDC members, including an
analysis of the housing pro forrmas for rental projects. Hightshoe said that, in its most basic form, the Pro
Forma provides the information as listed in the document titled, "Annual Operating Pro Forma. Hightshoe
said comments by Crane, a commercial lender, will be valuable as well. Hightshoe said using the
standard form allows them to compare rental housing projects.
Hightshoe requested HCDC to review the Bank Ability pages and look at the proforma. She stated staff
requires the proforma to review each project's revenues and expenses to review pr.oject viability for rental
housing projects and to determine the appropriate amount of subsidy to maintain the project over the
period of affordability. Hightshoe said their goal is to make sure the project is viable for the next 15 to 30
years. Hightshoe said they will look at the debt coverage ratio (DCR), which is the net operating income
divided by total debt service. Anything under 1.0 means the project is not viable; the project does not
generate enough revenue to pay its debt. Long said that this ratio is something staff figures out and then
includes in their staff analysis. Long referred to the example, this listed the ratio as 1.15. Long said that
some lenders prefer DCRs above 1.20. Long noted that the applicants on the example applied for 8 units
and, he guessed, $800,000 and they were only given $175,000. Long said when it comes time to put the
agreements together they do this all over again and discuss and figure out what's feasible.
Richman asked where the City Council is in terms of the scattered site policy. Richman asked, "Are we in
a different place than we were last year?" Long said no, then maybe. Long said there actually is no policy.
Long said there was never one approved, just recommendations. Long said that there is a non-profit that
will be proposing a project in an area that the Council previously requested not to have additional assisted
Housing and Community Development Commission
January 18, 2007
Page 4
housing. Richman asked if the Council was going to deal with that issue prior to February to early March.
Long said yes.
Long noted a private developer's proposal to put in a fast food restaurant on Broa?way, where there are
currently apartments, as mentioned in the Gazette. Crane said he heard this. Long said that there is a lot
of affordable housing at stake. Long said that another development, on Broadway and Crosspark, with 48
units, may be turned over to private hands soon. Long said all of this plays into the scattered site issue.
Marcy asked if they tear down the corner apartments on Broadway and put up the fast food restaurant,
does that mean more scattered housing is opened up? Long said yes, in theory, however the apartments
proposed for demolition are affordable but not subsidized. No public subsidy was provided for those
apartments and they were not considered when scattered site looked at concentrations. Affordable
housing provided by the private market with no subsidy is not considered assisted or subsidized housing
when analyzing "concentrations" of public/assisted housing.
Long said that Southgate started giving notice to the tenants last June, so it's not like it just happened this
week. Crane said that Southgate owns most of Broadway. Marcy said that through her work, she knows
the massive amount of money they put into that complex trying to update everything.
Discussion returned to the proforma. Hightshoe said that the Pro Forma also gives a look at the return of
investment of the project. A lot of non-profits don't put a lot of owner equity into the project, but require
government funds and different grants. Hightshoe said the return of investment in the example looks
funny because it doesn't have any applicant/owner equity. Hightshoe said that ,if you had a different
developer and the developer provided an applicant contribution (owner equity/cash infusion) you would
see a return of investment for that.
Hightshoe said that the second page deals with the implications of tax, or cash flow after tax. Hightshoe
said that since most of their developers are non profits, it really doesn't apply to them because they're not
paying tax. Therefore, for these developers, you're going to be looking mostly at the first page.
Hightshoe said if it's a low-income housing tax credit project you're going to see that portion completed
and be able to figure a tax benefit from year one through twenty. Long said that, when looking at these,
staff ensures that non-profits consider vacancy. Long said to make sure there is a reserve on line 12.
Long said that as for management fees, even though they're self-managed, they still have to consider
adding this expense. Long said that when they figure out the debt coverage ratio they project
expense/revenues over the 20 year period and if necessary will discuss deferring payments until income
has raised enough to cover expenses. Long said they can talk more about this in March.
Housing and Community Development Commission
January 18, 2007
Page 5
Richman asked if lines 18 and 19 include tax credit. Long said no. Crane asked if there is a certain
percentage required for reserves and management fees. Long said there is no standard. Long said that
for management fees they see 4 to 8 percent. Long said they have been encouraging non-profits to
.
include a developer fee which can range from 3 to 10 percent. Long said that City Council didn't allow
developer fees as of 5 years ago for non-profits.
Long asked Crane if debt coverage ratio is flexible. Crane said that with real estate it's usually 1.15 to
1.25. For an operating business, the OCR is usually higher, but not with real estate. Hightshoe stated that
since they're encouraging applicants to acquire private financing or leverage funds, they must consider
that different banks have different credit guidelines. Marcy asked how developers determine what they're
going to charge for a unit. Hightshoe said that under the HOME program, rents are capped by HUD
established fair market rents (FMR) based on the local community. Iowa City FMRs would most likely be
higher than small town Iowa, but less than major metropolitans. Hightshoe said developers could charge
less than FMR, but can't charge more than this figure. Crane asked if these loans are for acquisition of
land and reconstruction. Long said loans can be for both. Hightshoe said acquisitions are nice because
you have a better idea of costs.
Consideration of Potential 2007 Agenda Items
Hightshoe said they've discussed affordable housing design guidelines, inclusionary zoning to some
degree, and investment policies. Hightshoe said that HCDC needs to consider if anything else needs to
be added during 2007 so staff can place it on the agenda. Long said that everything is on hold in regards
to scattered site or affordable housing issues/policies until the City sends out a request for proposals (RP)
.
for this housing market analysis for the Iowa City metro area. It was released last week and has resulted
in a lot of interest. Long said we don't have the information yet to make policy decisions. Hart asked if City
Council is looking for bids to hire a consultant to look into this. Long said yes, the contracted firm will be
looking at the entire housing market for the Iowa City area (includes Coralville and North Liberty). Long
said the survey/analysis will be done in six months. Hightshoe said results would be put on the HCDC
agenda. Richman asked for a copy of the RP. Hart asked for one as well. Hightshoe said she could email
it to everybody. Richman said that HCDC doesn't' have to decide on agenda' items all tonight but
someone can bring an item to the HCDC's agenda anytime in the future.
Discussion of the FY06 Down payment Assistance Program
Long said we've had interest in the past month, one developer in particular who proposed that Johnson
County Housing Trust Funds be used in conjunction with HCDC funds. Long suggested that the HCDC
defer discussion of this program until March 8. Richman asked how much money the program has. Long
said $30,000.
Housing and Community Development Commission
January 18, 2007
Page 6
OLD BUSINESS
Monitoring Reports
Crane said that he talked to Steve from Community Mental Health and there was, $18,230 allocated for
building improvements. They put in a new fence this fall. Crane said that the Community Mental Health
still needs to do the concrete in the spring. Crane said they spent $3,200 of their original $18,230. Crane
said that they serve 1,500 open case clients per year.
Visiting Nurse Association - Operations
Crane said he talked to Sue Ellen and they had $2,500 for operation expenses and they've used $1,400
,
on three patients. Crane said Sue Ellen talked to Hightshoe and was advised to "slow down on the
spending". To this, Hightshoe said VNA billed for almost the entire award in August for two clients.
CDBG rules require that at least 51% of the clients served be low-to-moderate income. Staff can't
reimburse 100% of the award until all federal reporting requirements and other requirements are met.
VNA was informed the City would withhold the final 10% until later in the year when all reporting
requirements and income information were received. This is standard practice for public service
applicants. Hightshoe said that she didn't have any documentation that the clients' were low to moderate
income so while they could allocate up to 90 percent, they had to hold onto that last 10 percent until they
could verify the status of the clients. Crane said that Sue Ellen stated VNA could use a lot more funding
but they're really happy to be taking care of those patients.
MECCA - Facility Rehabilitation
Richman said that MECCA was given $22,000 for carpet replacement the previous year and he spoke
with Ron Berg two weeks ago. The project was finished last summer but we are having issues with billing.
Richman said hopefully that gets resolved.
DVIP - Facility Rehabilitation
Richman said that since Shaw is not present HCDC would push back DVIP until April.
FY04 Whispering Garden - Affordable Rental
Long said that Whispering Garden, 12 units of affordable rental housing, is completed.
Compeer - Operations
Niblock said he called the wrong person at Compeer so he wasn't able to get through. Staff suggested
calling Sherri Zastrow. Will defer to April.
Housing and Community Development Commission
January 18, 2007
Page 7
FY05 United Action for Youth - Facility Rehabilitation
Niblock read an email from UAY stating that the project is completed, the entryway is done, and the
reception office is open. The childcare area was completed earlier in the year; access to reception area
includes an opener for persons in wheelchairs. Niblock said it sounds like they're done.
FY05 The Housing Fellowship/lCHA - Rental Construction
Long said they finished 6 units of affordable rental housing. Long said the whole Longfellow project in not
done, just the 6 units. Long said they've hired an architect for the units and they lo,ok great. Marcy asked
Hightshoe how they disperse the funds. Marcy asked if they payoff bills from the general contractor. Long
said they pay the non-profit and the non-profit pays the general contractor. Hightshoe said that usually the
architect approves the bill and submits to the non-profit for payment. The non-profit will send it to us for
reimbursement. The City reimburses the non-profit, not the contractors. Hightshoe stated that as a
project gets closer to the final billing, staff requests the developer to not pay the final bill until staff informs
them if all documents were submitted and approved as trying to get the appropriate documents from a
contractor that has already been paid is difficult. The City can't reimburse the developer until all
paperwork has been received and approved; this creates a problem for the developer who may n?t have
the cash flow to cover this expense if they have already made payment.
Douglas asked if the monitoring reports were a matter of contacting the person who is in charge of the
project. Hightshoe said yes. Long said you can phone, email, or even visit the site. Richman asked if they
were going to schedule site visits this year. Long said yes. Hightshoe said that typically, the Commission
visits public facility sites. Hightshoe said she'd try to schedule visits before the question/answer session.
Adjournment
Crane motions to adjourn the meeting. Richman seconded the motion and the motion passes 6:0.
Meeting is adjourned at 7:40 pm.
s/pcd/minutes/hcdc/2007/1-18-07,doc
IOWA CITY
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
FYo8 QUESTION/ANSWER SESSION
IOWA CITY PUBLIC LIBRARY, ROOM A
THURSDAY, FEBRUARY 22, 2007
TIME AGENCY NAME CONTACT NAME PHONE
HOUSING
6:40 pm IC Housing Rehabilitation Jeff Vanatter 356.5128
6:50 pm I.V. Habitat for Humanity Mark Patton 337.8949
7:00 pm IC Housing Authority Deb Briggs 887.6069
7:10 pm The Housing Fellowship (CHDO) Maryann Dennis 358.9212
7:20 pm The Housing Fellowship Maryann Dennis 358.9212
7:30 pm HACAP AI Axeen 337.5765
7:40 pm Builders of Hope Josh Weber 936.3548
7:50 pm Blooming Garden Jesse Burn~ 338. 7600
PUBLICSERVlCE
8:00 pm Visiting Nurse Association Suellen Novotny 337.9680
8:05 pm Local Food Network Laura Dowd 338.2010
8:10 pm Free Medical Clinic Sandy Pickup 337.9727
8:15 pm Extend the Dream Tom Walz 339.0401
8:20 pm Shelter House Crissy Cangarielli 338.5416
BREAK
PUBLIC FACILITIES
8:35 pm Crisis Center J esse Burns 351.2726
8:30 pm Free Medical Clinic Sandy Pickup 337.9727
8:35 pm Extend the Dream Tom Walz. 339.0401
8:40 pm Wetherby Friends & Neighbors Beth Koppes 354.1335
8:45 pm NCJC Brian Loring 358.0438
8:50 pm Goodwill Industries John Watson 337.4158
8:55 pm DVIP Kristie Fortman-Doser 351.1042
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CDBG AND HOME PROGRAM INVESTMENT POLICIES
Economic Development
Economic development projects making application to the CDBG Economic Development Fund will be
reviewed by the Council Economic Development Committee. The Council Economic Development Committee
will make a recommendation to the City Council for each project proposed for funding. Said recommendation
shall include the amount of CDBG assistance to be allocated and the terms of investment.
Typically, for-profit business projects will receive low-interest loans; whereas, non-profits may be
recommended for forgivable loans or grants. Decisions regarding investment terms for economic development
projects will be made based on the nature of the project including, but not limited to, the risk, potential for
growth, the number of and quality of jobs created for low-moderate income persons, the ability to repay a loan
and the amount of other funding leveraged.
Housing
Rental Housing. Except as noted below, the interest rate for rental housing activities will be zero percent (0%)
for non-profit owned projects and prime rate (determined at the time the CDBG\HOME agreement is executed
by the City) minus two points for for-profit owned projects with an amortization period up to thirty (30) years or
the period of affordability, whichever is less.
Homeownership. Except as noted below, assistance to homeownership projects will have three repayment
options as shown herein. 1. A 20-year loan that must be paid in full when the low-moderate income
homeowner sells, transfers title, moves or rents the property or the 20-year term expires, whichever occurs
first. No interest will accrue and no payments will be required to be made by the property owner prior to payoff.
2. The homeowner has the option to make monthly payments to the City or its designee in a form not to
exceed a 3D-year, zero percent (0%) amortized loan, a 30 year amortized loan must start at the time the
assistance is provided. 3. If CDBG\HOME assistance is provided to a certified non-profit organization, for a
Community Land Trust project, the CDBG\HOME funds will be in the form of a grant.
Tenant Based Rental Assistance (TBRA). All HOME funds provided for TBRA will be in the form of a grant.
Exceptions.' The City may grant a different interest rate andlor a different repayment option based on the
nature of the project including, but not limited to, the revenue generated, the ability to repay a loan, the type of
housing provided, the beneficiaries, the amount of other funding leveraged and the location of the site.
Public Facilities
The City of Iowa City, as the recipient of Community Development Block Grant (CDBG) funds, utilizes
these funds for "public facilities" projects as defined in 24 CFR 570.201 (c) that are completed by the City
and\or subrecipents. The following policy applies to CDBG assistance provided to non-governmental
subrecipients ("governmental" includes only jurisdictions with taxing authority as. provided for in Iowa
Code ).
FY08 Applicant Guide
16
Projects that receive an allocation by the City of Iowa City will receive an earned grant, as defined herein,
which will be secured by a mortgage or other comparable security instrument. The compliance term of the
earned grant will be determined by the formula also provided herein. At the end of the applicable compliance
term the lien or other security instrument will be released by the City. If the real property is leased, the lease
shall be for a period that matches or exceeds the compliance term of the earned grant.
. Earned Grant: Alien against the real property being assisted, or other comparable security, which is
repaid only upon transfer of title, rental of the property, or termination of services or occupancy as
outlined in the applicable CDBG Agreement. If the subrecipient fully satisfies the terms outlined in the
applicable CDBG Agreement the mortgage against the property, or other security instrument, will be
released by the City following the completion of the compliance period that begins on the date of
execution of the mortgage or security instrument.
. Earned Grant Formula: The total amount of CDBG assistance allocated to a subrecipient in anyone
City fiscal year for a "public facility" project divided by $3,000 equals the number of CDBG compliance
years for the Earned Grant. (For example: $17,000 in CDBG assistance divided by $3,000 would equal
a compliance term of 5.67 years or 68 months). If the Earned Grant Formula results in a compliance
term of less than one year (12 months) the minimum compliance term shall be one year (12 months)
and if the Earned Grant Formula results in a compliance term of more than ninety-nine (99) years the
maximum compliance term shall be ninety-nine (99) years. '
Public Service
Public Service projects as defined in 24 CFR 570.201 (e) shall receive CDBG assistance in the form of a
grant with a term of not less than one year.
Wpd/ppdcdbg/proinveslpolicies 10106
FY08 Applicant Guide
17
Reason for requesting a change of terms in the CDBG request
Iowa Valley Habitat for Humanity, staff, committee members and the City Council
struggle to find ways to make and keep housing affordable. We have looked closely at
the Land Trust model and find that it may not work for all of our needs as originally
projected. The 99 year length of the lease and the lack of "clear title to the land"
concerns some of our board members and partner families.
Weare asking the committee to consider allowing a silent second mortgage to be adopted
as a means of achieving and keeping housing affordable. The silent second mortgage
would take the cost of the land (amount ofCDBGIHOME granted) out of the purchase
price. The repayment of the first mortgage is reasonable which means the house starts off
as affordable. The City has a 20-year restriction on the resale of the home in all cases.
The silent second mortgage would get repaid to the City if, and when, the property is sold
in the future. This recoups the original investment for the City and recycles it for other
affordable housing in the future.
The silent second mortgage creates a win/win/win scenario for the affordable housing
efforts: a) The family does not have to pay back the cost ofthe land in the immediate
future; b) The City recoups its CDBG/HOME investment when the home is sold; c) Since
none of us can know what will happen fifty or sixty years from now, it builds in more
flexibility than a 99 year lease; d) It is a simple arrangement which is easy to track and
verify for all parties involved.
We hope you agree that a silent second mortgage helps create and maintain affordable
housing. Thank you for considering this request.
8. Please specify the one most applicable priority need and priority need level, as shown in CITY ~.
2006-2010, Section IV. Strategic Plan. ..
Renter, Small and Large _HIGH
Priority Need Priority Need Level (High, Medium or Lo
Section 2 - Leveraging Resources/ Budget
9. Please provide terms:
Loan Amortization Affordability
Amount Interest Rate (Years) Period (Years)
For-Profit $ Prime minus 2 pts
Non-Profit $
Silent Second Mortg. $188,000 0% Due Upon Sale Min. 20 years
lOa. Please complete the table below showing the types and amounts of funding being requested for the
proposed project. Please check the appropriate box if the funding source is anticipated or committed.
If anticipated, include the date the funding would be available if awarded.
Funding Anticipated
Funding Source &. Type of Funds: Amount Date Committed?
Iowa City CDBG or HOME Funding (public) $188,000 JULV 1~2007 aVes ONo
State of Iowa HOME or CDBG (public) aVes XNo
Iowa Finance Authority (IFA)- non UHTC (public) $ aVes ONo
City of Iowa City-Tax Increment Financing (public) $ aVes ONo
City of Iowa City-Tax Abatement or Exemption (public) $ aVes ONo
IFA - Low Income Housing Tax Credits (public) $ aVes ONo
Other Public Resources (please list): $ aVes ONo
FEDERAL HOME LOAN BANK $24,000 JULV, 2007 XVes ONo
aVes ONo
Applicant Contribution of Equity (private) $ aVes ONo
Private Lender Financing (private) $ aVes ONo
Private Foundation(s) (private) $60,000 JUL V, 2007 XVes ONo
Volunteer Labor and/or In-kind Donations (private) $48,000 JULV,2006 XVes ONo
other Private Resources (please list): $90,000 aVes XNo
Harley Davidson riders, Realtors, Home Builders, Wells
Fargo,
THRIVENT FINANCIAL $70,000 JANUARV, aVes XNo
2008
Housing
3
FY08 CDBG/HOME Funding Request
CITY OF IOWA CITY
FY08 CDBG/HOME APPLICANT REVIEW
STAFF REPORT
Project Name 8c. Page Number: Blooming Garden IHA Limited Partnership
Page 1
Applicant Contact: Jesse Burns
338.7600
Project Address: three lots on Catskill Court
Activity Type: Housing
CITY STEPS Priority: Low - Owner-occupied housing for large families
CITY STEPS Goal Achieved: IV. B. Affordable Housing
Production of New Units (Page 101)
Beneficiaries: 0-30% mfi 0%
31-50% mfi 0%
51-60% mfi 00/0
61-800/0 mfi 100%
Over 80% mfi 0%
Amount Requested: $240,000
Repayment Terms: Homebuyer will have two options:
1) 20-year loan with no payrnents until the
homeowner sells, transfers title or rents the
property or when the 20-year term expires,
whichever happens first.
2) Make monthly payments on a 30-year loan at
0% interest.
Period of Affordability: HOME regulations require 10-years; applicant
proposes 10-years
Total HOME Cost Per household: $40,000 per household
Percent of Project Publicly Funded: 20%
Leveraging City HOME Funds:
$5.00 in other funds for each HOME dollar
requested
Property Taxes:
The homeowners will pay taxes
STAFF ANALYSIS
Documentation of Project Need
The application reiterates the CITY STEPS goal of constructing 10 new affordable owner-
occupied units annually between 2006 and 2010. The application also refers to the 390
cost burdened households with incomes between 50% and 80% of the area median
income that are paying more than 30% of their incomes on housing-related expenses.
This project will provide down payment assistance to six income-eligible households. The
HOME funds will provide a 20% downpayment for income eligible homebuyers on six
homes that will be constructed by the applicant. The 20% downpayment will lower the
mortgage amount enough to allow the monthly payments to be affordable and it will allow
the homeowner to not pay private mortgage insurance.
Project Budget Discussion ,
HOME funds make up approximately 20% of the project's budget, assuming a sales price
of $200,000 each. The applicant will construct the homes using 100% private financing
and the homebuyers will purchase the units using at least 800/0 private financing. Staff is
not sure how construction expenses were determined, but the assumption was made that
since the general partner is an architect that the expenses were well thought out.
Project Coordination with Existing Services\Activities
The applicant has shown an ability to work with a variety of agencies and organizations
Applicant History or Capacity to Successfully Complete the Proposed Project
The general partner of Blooming Garden IHA Limited Partnership, Burns & Burns, LC, has
received a number of City and State of Iowa HOME awards. Examples of HOME assisted
projects include Concord Terrace, Lexington Place, Whispering Garden and Melrose Ridge.
They have always shown sufficient capacity to manage and to complete the projects.
Summary of Items to be Addressed
1. If partially funded, will the project continue?
2. The identified lots are located in located in Census Tract 14, Block Group 2. This
area has not been identified by the City Council for additional affordable housing
opportunities. Therefore, City Council approval will be necessary for the project to
proceed.
3. The application mentions that the homes will have three-bedrooms, two bathrooms
and a two-car garage. Do you have plans that show the square' footage?
4. Is there a minimum square footage requirement in Easthill Subdivision? Are two
car garages mandatory in that subdivision?
5. The proposed cost is $200,000 per unit. Is that comparable to surrounding values?
What is the estimated cost per square foot?
6. Will the project work with a lower amount of downpayment assistance?
7. Have other down payment assistance programs been researched?
8. Please give an update on FY06 HOME funded Melrose Ridge.
CITY OF IOWA CITY
FY08 CDBG/HOME APPLICANT REVIEW
STAFF REPORT
Project Name & Page Number:
Builders of Hope - Transitional Housing
Page 13
Applicant Contact:
Joshua Weber
936.3548
Project Address:
1010 S. 1st Avenue
Activity Type:
Housing
CITY STEPS Priority:
High - Transitional Housing
CITY STEPS Goal Achieved:
IV B. Affordable Housing
Acquisition of Existing Units (Page 102)
Beneficiaries:
0- 30% mfi
100%
Amount Requested:
$170,000
Repayment Terms:
Loan - 1% for 20 years requested.
Period of Affordability:
HOME regulations require 10 years; applicant
proposes 15 years.
Total HOME/CDBG Cost Per Person: $22,667/person
Percent of Project Publicly Funded: 86%
Leveraging City Funds:
$0.16 in other funds for each HOME/CDBG dollar requested
Property Taxes:
Yes
STAFF ANALYSIS
Documentation of Project Need
Transitional housing is a high need in CITY STEPS and is a critical component in the housing
continuum of care. This project proposes to provide five rooms in a single family home for
persons living alone with mental illness. Builders of Hope will provide access to supportive services
to those living in the home.
A frequent need cited at CITY STEPS meetings is the need for additional, affordable units for
persons transitioning out of homeless situations or for those not quite able to afford permanent,
private market housing.
The location proposed is near a grocery store, employment opportunities, the Free Medical Clinic,
pharmacies and located on a bus line.
Project Budget Discussion
Over 86% of the project is publicly funded. The HOME funds requested are for property
acquisition. The acquisition cost per bedroom is $39,512. Applicant is contributing $7,560 of
their funds and obtaining a private bank loan of $20,000. In Question #11, applicant did not
include any line items for the cost of appraisal or closing costs. Are these incorporated in the land
acquisition cost?
The proforma analysis does not indicate any other income or tenant contributions. Will all services
be at no charge or not provided such as coin operated laundry facilities, parking, and
phone/internet services? The proforma does not include any estimate of utility expense and the
cash flow after taxes is not completed to evaluate cash flow after tax/return on investment.
As proposed the current debt coverage ratio (DCR) is 1.22, however after utility expense is added
this ratio may be much lower. Revenue through rents can't increase as it is capped by HOME
limits for SRO units, thus utility expense and other income/tenant contributions will have a large
impact on the final DCR and project viability under the proposed terms.
Project Coordination with Existing Services\Activities
Applicant History or Capacity to Successfully Complete the Proposed Project
The director has previous experience managing and maintaining a transitional living facility.
Applicant hires a private accounting firm for financial auditing and record keeping. Builders of
Hope is a new organization, incorporated March of 2006.
Summary of Items to be Addressed
1. Is the supportive service provider and the project owner being the same entity, create an
identity of interest?
2. Please respond to the budget questions raised in the project budget, discussion narrative.
3. Property is zoned RS-5. This project is considered a family care facility, thus is allowed in
the RS-5 zone.
4. What entity does Builders of Hope contract with for payment of services? Does applicant
have experience administering and complying with federal or state awards?
5. Which community partners does Builders of Hope work with to address client needs?
CITY OF IOWA CITY
FY08 CDBG/HOME APPLICANT REVIEW
STAFF REPORT .
Project Name & Page Number:
Hawkeye Area Community Action Program-
Transitional Housing - Page 24
Applicant Contact:
Allan Axeen
337.5765
Project Address:
Specific sites not yet identified (CT 5, 6 and 13)
Activity Type:
Housing
CITY STEPS Priority:
HIGH (Transitional Housing)
CITY STEPS Goal Achieved:
Improve transitional housing .programs for
families. (Page 96)
Beneficiaries:
0-30% mfi
100%
Amount Requested:
$345,000
Loan or Grant:
Loan
Repayment Terms:
Conditional Occupancy Loan
Total HOME/CDBG Cost Per Person: $32,857/person
Period of Affordability: HOME regulations require 15 years (if newly
constructed unit 20 years); applicant proposes
20 years.
Percent of Project Publicly Funded: 100%
Leveraging City Funds: $0.00 in other funds for each HOMEjCDBG
dollar requested
Property Taxes: Tax-exempt; however if in a condo association
pays property taxes on the common areas and
the land '
STAFF ANALYSIS
Documentation of Project Need
HACAP is requesting funds to purchase three rental units to be placed in their Local
Transitional Housing Program. According to the application, HACAP has a waiting list
of 33 families (35 adults and 46 children). CITY STEPS identifies transitional housing
as a "high" priority and a bridge between emergency shelter and permanent housing.
Housing for cost burdened large and small households with incomes less than 30% of
area median income is a high priority as well. Local emergency shelters are the main
referral source to this program. Participants in the transitional housing programs will all
be below 30% of median family income and rent is determined by the'household's
ability to pay. As rent is based on ability to pay, rarely will the applicant receive full fair
market rent.
Project Budget Discussion
100% of the project is publicly funded with local HOME dollars. Based on the proforma,
the project is not viable as expenses exceed revenue, even in the absence of debt
service (no loan payments). How will applicant continue based on a negative cash
flow?
Applicant estimates annual rental income for the three units at $960. Based on the
12/31/2006 rental housing report, the monthly rent collected for the 26 units in the
Transitional Housing Program, including those households with Section 8 rent
assistance (4 households), was $4,209. This would translate to an average annual rent
collection of $1,943 per unit. Based on this average, the project would generate $5,828
in rent collection per year for the three units.
Applicant estimates annual insurance for three units at $195 or $65 per unit and annual
maintenance and structural repairs at $198 or $66 per unit. Many of the expenses
appear very low. Please discuss. Applicant also states a conditional occupancy loan is
necessary as the level of income is not enough to maintain the costs of supervision,
maintenance, support services and case management. Applicant receives federal
dollars for support services and case management. Will applicant receive additional
funding for support services for the three units proposed? Support services are
considered a local match, however are not included as an eligible HO'ME expense and
must be considered separately.
A debt coverage ratio and project viability can't be determined until more information is
received and reviewed.
Project Coordination with Existing Services\Activities
Case management provides coordination and referral to existing services to avoid
duplication and streamline services.
Applicant History or Capacity to Successfully Complete the Proposed Project
HACAP began the Transitional Housing Program in 1987 and operates scattered site
single family transitional housing units of various sizes in Johnson County. HACAP
administers and operates several federal and locally funded programs. As evidenced
by their previous transitional housing projects, which have been completed on schedule
and within budget, HACAP has demonstrated the capacity to complete the project.
Applicant is currently in non-compliance with the FY06 project due to non-payment of
funds. Applicant entered a loan agreement with the City with the following term: 0%
over - years. First payment was due ---Payment has not been received as of date of
this report. Please discuss.
Summary of Items to be Addressed
1) Please discuss the budget issues identified above.
2) Have other possible funding sources been researched as this project is 100%
funded by HOME dollars such as State HOME funds or various other grants?
3) If units are acquired that were built before1978 there will be additional expenses
related to lead based paint.
4) Davis Bacon or "prevailing wages" will apply if necessary to bring the acquired unit
up to building code.
CITY OF IOWA CITY
FY08 CDBG/HOME APPLICANT REVIEW
STAFF REPORT
Project Name &. Page Number:
Homes for Our Future - Iowa City
Housing Authority .
Page 41
Applicant Contact:
Steven Rackis
887.6065
Project Address:
Citywide
Activity Type:
Housing
CITY STEPS Priority:
Low - Owner-occupied housing for large families
CITY STEPS Goal Achieved:
IV. B. Affordable Housing
Rehabilitation of Old Units (Page 101)
Acquisition of Existing Units (Page 102)
Beneficiaries:
0- 30% mfi
31-50% mfi
51-60% mfi
61-80% mfi
Over 80% mfi
0%
0%
0%
67%
330/0
Amount Requested:
$390,000
Repayment Terms:
Applicant is proposing that a 0% Conditional
Occupancy Loan (COL) be placed on each home
for a period of 15-years.
Period of Affordability:
CDBG regulations do not require a period of
affordability; applicant proposes 15-years
Total CDBG Cost Per household:
$130,000 per household
Percent of Project Publicly Funded: 53.5% CDBG funds
58.5% including all publiC funds
Leveraging City CDBG Funds:
$1.87 in other funds for each CDBG dollar
requested
Property Taxes:
The homeowners will pay taxes
STAFF ANALYSIS
Documentation of Project Need
The application documents the need through multiple citations from Assessing Iowa~ Housing
Needs and from CITY STEPS. In addition, the acquisition of the three homes and subsequent
rehabilitation will create additional safe, decent affordable housing opportunities to households
between 60% and 100% of the area median income. The project will also help to revitalize
and preserve existing neighborhoods and it will ensure long-term affordability.
Project Budget Discussion
CDBG funds make up approximately 58% of the project's budget. Applicant has not secured
bids for the rehabilitation because sites have not been identified so the proposed acquisition
and rehabilitation amounts are estimated.
Applicant has a significant amount of volunteer hours committed through its successful
homebuyer counseling program.
Project Coordination with Existing Services\Activities
The applicant has shown an ability to work with a wide variety of for profit and not for profit
agencies and organizations. One example is the HUD certified Homebuyer Education course
that is offered through a partnership with the Iowa City Housing Authority and the Iowa City
Area Association of Realtors.
Applicant History or Capacity to Successfully Complete the Proposed Project
The Iowa City Housing Authority annually administers over $7 million in federal funds and they
have received and successfully administered a number of City HOME awards.
Summary of Items to be Addressed
1. Please provide an update on the status of the FY06 & FY07 HOME funded TBRA
projects? The applicant indicates $294,605 in prior year funds committed, but not
expended.
2. Has the applicant researched other funding options?
3. CDBG regulations require that at least 51 % of the beneficiaries are below 80% of the
area median income and this project proposes that 67% (two out of three
homebuyers) are below 80%. Although allowable, please explain the rationale for
proposing to go up to 100% of the area median income.
4. All work must comply with federal procurement standards (competitive bids) for the
proposed work.
5. Please explain the funding structure that allows the homebuyer to purchase a home for
as little as $500 down. Also, explain the role of CDBG funds and how those are going
to be secured.
6. Applicant is proposing that a 0% Conditional Occupancy loan (COl) be placed on each
home for a period of 15-years. City policy states that a homebuyer can choose one of
the two options listed below, however the policy does allow for exceptions.
1) 20-year loan with no payments until the homeowner sells, transfers title or rents
the property or when the 20-year term expires, whichever happens first.
2) Make monthly payments on a 30-year loan at 0% interest.
Please explain why you are proposing an exception to the City policy.
CITY OF IOWA CITY
FY08 CDBG/HOME APPLICANT REVIEW
STAFF REPORT
Project Name & Page Number:
IC Housing Rehabilitation - Lead Based Paint
Assistance
Page 53
Applicant Contact:
Jeff Vanatter
356.5230
Project Address:
~itywide
Activity Type:
Housing
CITY STEPS Priority:
High - Lead Based Paint Hazards
CITY STEPS Goal Achieved:
Lead testing and dissemination of information
for homeowners, especially those with children
under age 7 (page 127)
Beneficiaries:
0-30% mfi
31-50% mfi
51-60% mfi
61-80% mfi
30%
40%
20%
10%
Amount Requested:
$60,000 ($30,000 HOME & $30,000 CDBG)
Repayment Terms:
5-Year Forgivable Loan
Period of Affordability:
HOME regulations do not require a period of
affordability; applicant proposes 5 years
Total HOME/CDBG Cost Per Person: $1,454/person (Council earmark for
rehabilitation included as well)
Percent of Project Publicly Funded: 100%
Leveraging City Funds:
$0 in other funds for each local HOME/CDBG
dollar requested
Property Taxes:
Homeowners pay full property taxes.
STAFF ANALYSIS
Documentation of Project Need
CITY STEPS identifies lead based paint hazards as a high priority. The Iowa
Department of Public Health estimates that there are 147 children in Johnson County
that have lead poisoning. For homes the City will be providing owner-occupied
rehabilitation services, the applicant proposes to provide lead testing and the required
lead controls through a forgivable loan to the low-to-moderate income homeowner.
Many low income homeowners decline services as the required lead cost adds
substantially to the loan they must take out to pay for the rehabilitation services. By
providing lead repairs/testing as a forgivable loan, more low income homeowners will
decide to complete the needed repairs to keep their homes safe and in better condition.
The homeowner will continue to repay the loan for the non-lead related rehabilitation
services through a conditional occupancy loan repaid at resale or through amortized
monthly payments based on their monthly income.
Project Budget Discussion
100% of the budget is publicly funded. The Rehabilitation Program receives an annual
set-aside for rehabilitation activities. This proposal is for additional funds to strictly pay
for the increased costs due to federal and state lead hazards in the form of a forgivable
5-year loan (basically a grant to the homeowner if they remain in the home for five
years). No additional administrative funds are necessary as the council set-aside and
city general funds pay the rehabilitation personnel/administrative costs.
Project Coordination with Existing Services\Activities
The city works with the Iowa Department of Public Health to disseminate information
about the dangers of lead based paint. The City works with contractors certified in lead
safe work practices and facilitates training for contractors interested in becoming
certified abatement contractors or in lead safe work practices.
Applicant History or Capacity to Successfully Complete the Proposed Project
The city has the capacity to administer this project. .
Summary of Items to be Addressed
1. Please discuss why the applicant requests $30,000 in CDBG funds and $30,000 in
HOME funds. Are these amounts from each program flexible?
2. Can the City implement this project without additional funds, i.e. use a portion of
the existing set-aside for the project requested?
3. What is the average repair cost for a CDBG project as opposed to a HOME project,
without lead costs included?
4. How many projects are completed each year by homeowners with children under
age 7?
CITY OF IOWA CITY
FY08 CDBG/HOME APPLICANT REVIEW
STAFF REPORT
Project Name &. Page Number:
Iowa Valley Habitat for Humanity (IVHFH)
Page 63
Applicant Contact:
Mark Patton
337.8949
Project Address:
Census Tract 18 (Southeast Iowa City)
Activity Type:
Housing
CITY STEPS Priority:
High - Large Related Owner- Physical Defects
with incomes at or below 50% AMI
Low - Large Related Owner - cost burdened>
50%
CITY STEPS Goal Achieved:
IV B. Affordable Housing
Production of New Units (page 101)
Beneficiaries:
31-50% mfj
100%
Amount Requested:
$188,000
Repayment Terms:
Grant - units to be placed in a land trust
Total CDBG/HOME Cost Per Person: $22,857 jperson
Period of Affordabili~:
HOME regulations require 15 years; applicant
proposes 99 years.
Percent of Project Publicly Funded: 44%
Leveraging City Funds:
$1.55 in other funds for each local
HOMEjCDBG dollar requested
Property Taxes:
Homeowners pay full property taxes.
STAFF ANALYSIS
Documentation of Project Need
CITY STEPS identifies affordable housing as a great need in Iowa City. Owner-occupied
housing for those families living in homes with physical defects is a high priority. Applicant
proposes to acquire property for the construction of four affordable homes that will be available
to households between 31-50% of median family income (mfi). The homes, are sold to income
eligible households with a 0% loan and usually at 1f4 less than the home's appraised value. Of
the qualified families, those with the greatest need are selected. Habitat reviews several factors
such as spending too high a percentage of disposable income on housing, overcrowded
sleeping space and dangerous or dilapidated housing conditions.
Habitat's policy is to place a resale restriction on the home for 15 years; however they will place
all four homes in a land trust to ensure affordability for 99 years. All proceeds, minus the
$4,000 per home charged for overhead/admin. costs are used to build addi~ional homes.
Project Budget Discussion
Private funding, volunteer labor and in-kind donations make up 55% of the project budget.
Each selected family must put in up to 250-400 hours of sweat equity into the construction of
the home. The proposed budget shows an average of $47,000 in land acquisition costs,
$289,000 for construction and $3,000 in architect/engineering fees with a final cost per unit of
$120,000. IVHFH houses are sold with no profit. Repayments are recycled back into additional
home construction.
Project Coordination with Existing Services\Activities
The Iowa Valley Habitat for Humanity works with volunteers, donors, agencies, churches, and
businesses to build permanent, safe housing for persons under 50% of median family income.
Applicant History or Capacity to Successfully Complete the Proposed Project
IVHFH has used CDBG and/or HOME funds to acquire land for the construction of 19 affordable
single family homes in Iowa City and has been allocated a total of $754,855 in federal funds.
The size of the applicant's portfolio has increased substantially. Habitat operated for several
years with an all volunteer staff. The organization now has 4 paid staff members. A note of
concern in the past two monitoring visits is the property management of the federally assisted
homes. Habitat must continue to work on compliance with HUD's property management and
record keeping standards for all assisted properties. Due to a recent HUD monitoring visit, all
housing providers must verify household annual income based on one of three approved
methods of income calculation. Habitat must choose which method they will use and provide
third party income verifications for all households that will receive federal assistance.
Summary of Items to be Addressed
1. The City recently adopted design guidelines for homes subsidized with City funding. Will
applicant be able to meet these design guidelines?
2. Please discuss how the selling price of each home is determined for each household. The
purchase price for the two most recent homes completed was $125,000 and $141,992.
(Habitat always provides mortgages at 0% interest)
3. Habitat proposes building homes in Census Tract 18 due to the high land costs in other
areas of the City as well as the covenants and restriction in many subdivisions. Applicant
must seek Council approval to purchase the proposed lots.
4. Applicant has recently expressed concern to staff about the land trust option. Please
discuss.
CITY OF IOWA CITY
FY08 CDBG/HOME APPLICANT REVIEW
STAFF REPORT
Project Name &. Page Number:
The Housing Fellowship
CHDO Operating Expenses
Page 74
Applicant Contact:
Maryann Dennis
358.9212
Project Address:
Citywide
Activity Type:
Housing
CITY STEPS Priority:
High - Other public services'
CITY STEPS Goal Achieved:
Anti-poverty plan and strategies - housing
support services/facilitate increased capacity of
area housing providers (page 129)
Beneficiaries:
Agency wide
Amount Requested:
5% of HOME Allocation
Repayment Terms:
Grant
Total HOME Cost Per Person:
NA
Period of Affordability:
NA
Percent of Project Publicly Funded: 100%
Leveraging City Funds:
$0 in other funds for each local HOME dollar
requested
Property Taxes:
Tax-Exempt
STAFF ANALYSIS
Documentation of Project Need
The Housing Fellowship (THF), formerly known as the Greater Iowa City Housing
Fellowship, has been in operation since 1990. THF now owns and manages 132 affordable
rental units occupied by very low-income households and has placed 13 owner-occupied
homes into a land trust to ensure affordability for 99 years. The applicant also administers
a revolving loan fund for low-income renters to pay for security deposits. THF currently has
four full time employees and contract with an accountant for financial m~nagement and
reporting services.
The financial management responsibilities have grown extensively. In addition to the units
they own and manage, THF manages the finances for two Low Income Housing Tax Credit
projects. The organization has experienced cash flow problems in the last couple of years
and has had to sell a duplex and a home previously placed in the land trust to pay for
continuing operations (both homes were not assisted with CDBGjHOME funds).
Applicant proposes to pay for a full time accountant with HOME funds, eligible under the
HOME program as Community Housing Development Organization (CHDO) operating
expenses. These funds are available within the HOME program and do not count towards
the publiC service cap. Applicant proposes a one time operating grant, with subsequent
funds coming through developer fees and rent revenue. Historically, THF has not
requested developer fees for projects??
Project Budget Discussion
The project is an operational grant allowed under the HOME program. The HOME program
caps CHDO operating expense to 5% of the HOME allocation. In FY08, the estimated
maximum allocation is $31,861 for CHDO operating expenses. Applicant requests $41,000.
Funds allocated for CHDO operating expenses are not an eligible cost for CHDO set-aside
funds. This project can also be funded partially through CDBG funds as a public service
project. Any CDBG funding provided would be subject to the CDBG cap on public services
($14,300 available in FY08).
Project Coordination with Existing Services\Activities
The applicant has a long history of working with a variety of agencies, organizations and
private businesses to ensure the success of each project and of the families living in each
home.
Applicant History or Capacity to Successfully Complete the Proposed Project
Applicant has successfully managed hundreds of thousands of dollars of CDBG and HOME
funded projects. Founded in 1990, THF has experience and a successful track record with
the acquisition, construction and management of affordable housing. THF qualifies as a
Community Housing Development Organization (CHDO).
Summary of Items to be Addressed
1. Please provide more detail as to how THF will fund this position after the first year?
2. What will happen if funding is not approved for this position?
CITY OF IOWA CITY
FY08 CDBG\HOME APPLICANT REVIEW
STAFF REPORT
Project Name Be. Page Number:
The Housing Fellowship - Home and Neighborhood
Program, Page 86
Applicant Contact:
Maryann Dennis
358.9212
Project Address:
Citywide
Activity Type:
Housing
CITY STEPS Priority:
High - Small related - cost burdened >30%
High - Small related - cost burdened >50%
CITY STEPS Goal Achieved:
IV B. Affordable Housing
Production of New Rental Units (Page 101)
Beneficiaries:
0- 30% mfi
31-50% mfi
51-60% mfi
61- 80% mfi
Over 80% mfi
0%
100%
0%
0%
0%
Amount Requested: $499,530
Repayment Terms: 0% for 30 years
Period of Affordability: HOME regulations require 20-y~ars, applicant
proposes 30-years
Total HOME Cost Per household: $49,953 per household City HOME
$97,953 per household City & State HOME
Percent of Project Publicly Funded: 54.4% (not including tax credits)
Leveraging City HOME Funds:
$3.60 in other funds for each City HOME dollar
requested
Property Taxes:
Paid according to Iowa law for LIHTC projects. The
applicant estimates tax payments of $7,909 to
$13,869 per year.
02/16/07
STAFF ANALYSIS
Documentation of Project Need
The application references various studies, including the Maxfield Housing Market Analysis
and CITY STEPS plan. Both of these documents demonstrate the community need for
housing that is affordable to low-moderate income (lMI) persons. IN addition, the Iowa City
Housing Authority has over 1900 low-income households waiting for Section 8 rental
assistance, 670 of which are in need of two-bedroom homes.
This project proposes to purchase 10 residential lots scattered throughout Iowa City and then
apply to the Iowa Finance Authority for low Income Housing Tax Credits (LIHTC) in order to
construct 10 two-bedroom homes to rent to working families at affordable rental prices. In
order to successfully apply for tax credits the applicant must have site control of the project
location.
Project Budget Discussion
Approximately 54% of the project is publicly funded, 96% if you include the tax credits. The
proposed budget shows an average of $179,953 per unit cost, including-land, construction,
architect and other fees. The applicant has indicated that they will apply for State LIHTCs
and HOME funds in November 2007 with an award date anticipated to be March 2008.
The proposed project exceeds the required terms of affordability for the HOME program, 30
years versus the HOME required 20 years. The Housing Fellowship will receive a developer
fee of $150,000 for the $1,799,530 project (8.3% of the project cost). This is standard
under both the tax credit program and allowable under the HOME program. Non-profits are
encouraged to allow for the fee in order to pay for the extra time and effort involved with the
development of affordable housing through the complicated tax credit process.
Project Coordination with Existing Services\Activities
The applicant has a long history of working with a variety of agencies and organizations to
help ensure the success of each project and of the families living in each home. In the past
they have constructed owner-occupied homes in conjunction with the Iowa City Community
School District and the Homebuilders Association.
Applicant History or Capacity to Successfully Complete the Proposed Project
The Housing Fellowship has successfully managed hundreds of thousands of dollars of CDBG
and HOME funded projects. The Housing Fellowship has experience and a very good track
record with the acquisition and rehabilitation of affordable housing.
Summary of Items to be Addressed
1. Use of the LIHTC program is relatively new for The Housing Fellowship. Please
describe the relationship with the various partners that will bring technical assistance
or experience to the proposed project.
2. Update on status of FY06 projects? The Housing Fellowship indicates $310,811 in
prior year funds committed to projects, but not expended.
3. What happens if the project does not receive State LIHTCs and\or State HOME funds?
02/16/07
CITY OF IOWA CITY
FY08 CDBG/HOME APPLICANT REVIEW
STAFF REPORT
Project Name &. Page Number:
Crisis Center - Accessibility & Security
Page 102
Applicant Contact:
Jesse Burns
351-2726
Project Address:
1121 Gilbert Court
Activity Type:
Public Facility
CITY STEPS Priority:
Other Public Facilities - Low
Accessibility - High
CITY STEP Goal Achieved:
Objective: Support food and ,nutrition services
for low-income residents (Page 115)
Beneficiaries:
0- 30% mfi
31-50% mfi
51-80% mfi
Over 80% mfi
99%
<1%
<1%
<1%
Amount Requested:
$18,529
Loan or Grant:
Loan
Repayment Terms:
Conditional Occupancy Loan
6.2 year compliance period
Total CDBG Cost Per Person:
$1.49 per person
Percent of Project Publicly Funded: 82%
Leveraging City Funds:
$0.22 in other funds for each CDBG dollar
requested
Property Taxes:
Tax-exempt
STAFF ANALYSIS
Documentation of Project Need
Applicant proposes to install ADA accessibility and egress equipment for its entry doors
and to increase security of the building by adding exterior lighting and security fencing.
The proposed improvements will increase the accessibility of the building for those with
special needs and will improve the safety of the building for those volunteers and
employees who work off-business hours as well as help to secure the food and other
commodities stored at the center.
The Crisis Center provides food and other basic services to more than 650 households
each week and operates a Crisis Line available 24 hours, 7 days a week. Crisis
counseling includes walk-in hours from 8:00 am to 11 :00 pm every day of the week.
The proposed site improvements provide additional safety to the clients and
volunteers/employees.
Project Budget Discussion
The applicant received bids for the exterior doors and door opener. How was the cost
for the exterior lighting and fencing estimated? Estimates were received by a
contractor for the door and accessibility improvements. The budget for ADA
accessibility and egress equipment does not match the quotes received. How was this
expense determined?
Project Coordination with Existing Services\Activities
The agency partners with several area service providers to coordinate services and
provide referrals.
Applicant History or Capacity to Successfully Complete the Proposed Project
In 1998 and 2003 the agency successfully completed CDBG funded
rehabilitation/construction projects. The agency has the capacity and experience to
successfully complete this project.
Summary of Items to be Addressed ,
1) Please explain the construction coordination and supervision expense.
2) Please discuss the questions found in the budget section above.
3) All work will be subject to federal labor provisions and must comply with federal
procurement standards (competitive bids).
CITY OF IOWA CITY
FY08 CDBG/HOME APPLICANT REVIEW
STAFF REPORT
Project Name &. Page Number:
Domestic Violence Intervention Program (DVIP)
Page 111
Applicant Contact:
Kristie Fortmann-Doser
351.1042
Project Address:
Confidential
Activity Type:
Public Facility
CITY STEPS Priority:
High - Emergency Shelter
CITY STEPS Goal Achieved:
Strategy: Improve and maintain existing shelter
facilities. (Page 108)
Beneficiaries:
Presumed benefit (Nature of ~ctivity)
Amount Requested:
$5,895.38
Repayment Terms:
Conditional Occupancy Loan
Total CDBG Cost Per Person:
$5.72 per person
Percent of Project Publicly Funded: 56%
Leveraging City COBG Funds:
$0.78 in other funds for each CDBG dollar
requested
Property Taxes:
Tax Exempt
STAFF ANALYSIS
Documentation of Project Need .
DVIP provides shelter, crisis intervention and support services to victims of domestic
violence and their children. A critical aspect of the program is to provide a safe
environment while the client moves beyond the initial stages of crisis. The shelter has
housed more than 4,000 women and children since the facility was constructed in 1993.
Applicant requests funds to replace the original carpet in the offices and youth activity
room, replace/repair plumbing in the restrooms and to replace the original window
screens.
Project Budget Discussion
CDBG funds make up approximately 56% of the project's budget. Applicant secured bids
for the expenses stated in the budget breakdown, so the costs appear to be valid.
Project Coordination with Existing Services I Activities
DVIP collaborates with a wide range of community groups working on housing issues and
support services, such as Shelter House, Iowa City Housing Authority, STAR, The Housing
Fellowship, Home Ties, DHS, Iowa Workforce Development, Johnson County Coalition
Against Domestic Violence and the Local Homeless Coordinating Board.
Applicant History or Capacity to Successfully Complete the Proposed Project
DVIP has received a number of CDBG funding awards, including funds to construct and
subsequently rehab the current facility. In the past, DVIP has shown sufficient capacity to
complete the projects. However, there is a concern about staff capacity to adequately
administer a federally funded construction project. Specifically, regulations regarding
Davis-Bacon labor provisions.
Summary of Items to be Addressed
1. DVIP anticipates fundraising to provide the stated project match of $500. Has
fundraising already begun for this project?
2. If partially funded, will the project continue?
3. Has DVIP researched other flooring types? carpet vs. tile vs. vinyl
4. All work will be subject to federal labor provisions (Davis Bacon "prevailing" wages)
and must comply with federal procurement standards (competitive bids) for the
proposed work.
CITY OF IOWA CITY
FY08 CDBG/HOME APPLICANT REVIEW
STAFF REPORT
Project Name & Page Number:
Extend the Dream Foundation -
Property Acquisition
Page 121
Applicant Contact:
Thomas Walz
339-0401
Project Address:
2218-20 F Street
Activity Type:
Public Facility
CITY STEPS Priority:
Other Public Facility - Low
Micro-Enterprise - High
CITY STEPS Goal Achieved:
Provide Employment Training and Education
(Page 122)
Beneficiaries:
0-30% mfi
31-50% mfi
51-80% mfi
Over 80% mfi
50%
17%
17%
16%
Amount Requested:
$99,000
Repayment Terms:
Conditional Occupancy Loan,
33 year compliance period
Total CDBG Cost Per Person:
$6,100 per person
Percent of Project Publicly Funded: 54%
Leveraging City Funds:
$0.85 in other funds for each CDBG dollar
requested.
Property Taxes:
Yes
STAFF ANALYSIS
Documentation of Project Need
Applicant requests funding to purchase a property they currently lease at 2218-20 F Street.
Currently the property houses Mick's Workshop, an antique furniture refinishing and wood
working shop that is run by a person with disabilities. Applicant also proposes to initiate a
new business called RAMP at this site that would specialize in barrier free accommodations
by persons trained in ADA standards for persons with disabilities.
Applicant states the purchase will lower the organization's monthly operating costs,
improving the sustainability of all EDF's micro-enterprises. Applicant received $60,000 in
CDBG funds for their current 3-year lease at the Small Mall location, 401 S. Gilbert. This
subsidy expires June 30, 2007. Applicant currently pays $1,200/month to lease the
proposed property at 2218-20 F Street. Applicant estimates this could be reduced to
$400/month with this acquisition partially paid from CDBG proceeds as a conditional
occupancy loan.
CITY STEPS notes a high priority for employment training and education skills and micro-
enterprise assistance. The focus at EDF is on improving the lives of persons with disabilities
through employment training and ownership opportunities.
Project Budget Discussion
The project leverages the volunteer time of the director, contractor (property upgrades),
student labor and states closing costs will be performed on a pro-bono basis. Applicant
estimates $34,000 in volunteer labor. Applicant will secure a $50,000 private loan (in
additional to the CDBG funds requested) from a local lender to purchase the building.
Project Coordination with Existing Services\Activities
Extend the Dream has been working with several community partners through referrals for
micro-enterprise or e-commerce training and hosting meeting spaces for organizations such
as AA meetings, Johnson County Coalition on Disability and the Brain Injury Group. EDF
works with Like Skills, Systems Unlimited, MECCA, CMHC, Elder Services 'and STAR
homeless outreach.
Applicant History or Capacity to Successfully Complete the Proposed Project
Applicant has received CDBG and HOME funds in the past for various projects. At the May
15, 2006 monitoring visit, several items were noticed that jeopardized the current year's
funding. The most important item being that EDF must have a financial system that
provides control and accountability over funds and assets, identifies the source and
application of federal funds, provides source documentation, has basic accounting records,
and ensures an adequate separation of financial duties. EDF has worked to resolve some
of these issues; however the organization must incorporate a financial management system
operated on a long term basis that will meet federal minimal standards. Applicant must also
show progress in documenting the services received by clients as well as payroll
information for those in micro-enterprises.
Applicant purchased the property at 2203 F. Street July 1, 2005 with CDBG/HOME funds. A
building permit was issued in October of 2005. A few items remain including lighting must
have covers (an electrical permit was to be taken before completing the work, the electrical
permit was issued to the applicant this January), and the stair riser height must be altered.
Applicant states all other issues have been resolved. Housing & Inspection Services must
complete a final inspection after applicant resolves all issues. According to the CDBGjHOME
agreement, the applicant must comply with all local housing codes.
Summary of Items to be Addressed
1. EDF must address the financial management issues as discussed in this analysis,
before additional CDBG funds may be received. Applicant must also improve
documentation on the nature and frequency of services the agency provides to
clients. Documentation of payroll and full time equivalency must be easily and
readily available upon monitoring.
2. If the building currently does not meet local building codes, the work necessary to
bring the building up to code is subject to Davis Bacon (prevailing) wages. Applicant
must document and contractors must submit payroll forms that cpmply with Davis
Bacon standards.
3. Are the contractors who will perform work with the proposed RAMP micro-enterprise
familiar with local codes and permitting processes? Will the business have liability
insurance for all work completed?
4. Will EDF pursue hiring permanent staff to continue the programs and services of
EDF at some point in the future, especially as it relates to the financial management
of the agency? What are the current plans?
5. This project is also eligible under the economic development funding pool.
Application must be made to the Council economic development committee;
however the same federal financial management system requirements and reporting
standards apply. Applicant can apply any time during the year for these funds.
CITY OF IOWA CITY
,
FY08 CDBG/HOME APPLICANT REVIEW
STAFF REPORT
Project Name &. Page Number:
Goodwill Industries of SE Iowa
Page 131
Applicant Contact:
John Watson
337.4158
Activity Type:
Public Facility
Project Address:
1410 S. First Avenue
CITY STEPS Priority:
Low - Other Public Facilities
High - Employment Training
CITY STEPS Goal Achieved:
Provision of Employment Training and
Education (p. 123)
Beneficiaries:
0-30% mfi 78%
31-50% mfi 12%
51-80% mfi 10%
Over 80% mfi 0%
Amount Requested:
$ 120,000
Repayment Terms:
Earned Grant. Compliance period of 40 years.
Total CDBG Cost Per Person:
$1,445.78 per person
Percent of Project Publicly Funded: 24.7%
Leveraging City CDBG Funds:
$3.04 in other funds for each CDBG dollar
requested.
Property Taxes:
Tax Exem pt
STAFF ANALYSIS
Documentation of Project Need
Applicant has provided employment and training for persons with a variety of barriers to
independence at the First Avenue location since 1968. Applicant states all the individuals
receiving center-based services have a disability. The building was constructed in 1968 on
a limited budget with little attention to energy efficiency or accessibility issues. This
project will complete a series of major improvements that began in the mid-1980s.
The major components of the project are: 1) renovation and expansion of the
production/training area; 2) construction of a computer store to sell donated computers,
computer parts that have been inspected, tested and refurbished at the facilty; 3)
renovation and reconfiguration of office areas; and 4) replacement or r.epair/painting of
existing exterior siding.
Project Budget Discussion
CDBG funds make up less than 25% of the total project budget and the remainder of the
funds will be coming from Goodwill and they have been committed.
Applicant is relying on an architect estimate for project costs. No contractor bids were
received or referred to in the application.
Project Coordination with Existing Services\Activities
The employment and training services offered are coordinated with a variety of community
agencies. They work with their funding sources and residential providers to coordinate
services and participation. The applicant also works with local businesses to which they
contract to perform work, such as Rockwell Collins and North Liberty Plastics.
Applicant History or Capacity to Successfully Complete the Proposed Project
Applicant has successfully administered past CDBG funds. Applicant receives and
administers a variety of federal, state, and private grants. Goodwill has successfully
operated the Center-based Employment and Training program for 40 years.
Summary of Items to be Addressed
1. Will the project continue if partial funded?
2. All work will be subject to federal labor provisions (Davis Bacon - prevailing wages)
and must comply with federal procurement standards (competitive bids) for the
proposed work.
CITY OF IOWA CITY
FY08 CDBG/HOME APPLICANT REVIEW
STAFF REPORT
Project Name & Page Number: Iowa City Free Medical Clinic - Facility Rehab.
Page 141
Applicant Contact: Sandy Pickup
337.9727
Project Address: 2440 Towncrest Drive
Activity Type: Public Facility
CITY STEPS Priority: High - Accessibility Needs
CITY STEPS Goal Achieved: Accessibility Needs
Beneficiaries: Presumed benefit (Nature of Activity)
Amount Requested: $29,500
Repayment Terms: Conditional Occupancy Loan
9.8 year compliance period
Total COBG Cost Per Person: $10.17 per person
Percent of Project Publicly Funded: 98%
Leveraging City Funds: $0.02 in other funds for each CDBG dollar requested
Property Taxes: Pays taxes indirectly though lease
STAFF ANALYSIS
Documentation of Project Need
Applicant is applying for parking lot modifications that will meet ADA specifications, an
automatic door opener and bathroom modifications that will create one unisex, ADA
compliant bathroom for clinic use. The Free Medical Clinic (FMC) treats over 2,000 patients
annually. The clinic provides free medical and dental services to uninsured low to moderate
income persons. The improvements proposed will assist the clinic provide health services to
persons with disabilities.
Accessibility is a high need in CITY STEPS. The project also meets the.CITY STEPS goal of
continued support of health, dental and HIV/AIDS services.
Project Budget Discussion
CDBG funds make up approximately 98% of the project's budget. The volunteer contribution
is in the form of a discounted fee from Corridor Design, aka Ramp-up (Extend the Dream
Foundation micro-enterprise). The budget does not include any applicant contribution.
Project Coordination with Existing Services\Activities
The Free Medical Clinic has a long history of working with a variety of agencies and
organizations in Iowa City, such as Shelter House, DVIP, U of I Hospitals, U of I Dental
program, MECCA, STAR and many private health care professionals.
Applicant History or Capacity to Successfully Complete the Proposed Project
The Free Medical Clinic has successfully administered CDBG funds in previous years.
Additionally, the clinic has a 30-plus year history of operating the clinic and overseeing
renovations funded with grants and donations.
Summary of Items to be Addressed
1. If partially funded, can applicant contribute to the project? Does FMC have a capital
reserves budget?
2. All work will be subject to federal labor provisions (Davis Bacon "prevailing" wages)
and must comply with federal procurement standards (competitive bids) for the
proposed work.
3. Has applicant researched other funding opportunities for this project?
CITY OF IOWA CITY
FY08 CDBG/HOME APPLICANT REVIEW
STAFF REPORT
Project Name & Page Number:
Neighborhood Centers of Johnson County
Page 151
Applicant Contact:
Brian Loring
358.0438
Activity Type:
Public Facility
Project Address:
2105 Broadway Street
2651 Roberts Road
CITY STEPS Priority:
High - Neighborhood Facilities
High - Child Care Centers
CITY STEPS Goal Achieved:
Support development of childcare facilities
(Page 112)
Provision of Neighborhood Facilities (Page 113)
Beneficiaries:
0-30% mfi
100%
Amount Requested:
$ 141,200
Repayment Terms:
Earned Grant. Compliance period of 47.1 years.
Total CDBG Cost Per Person:
$69.62 per person
Percent of Project Publicly Funded: 96.6%
Leveraging City CDBG Funds:
$0.03 in other funds for each CDBG dollar
requested.
Property Taxes:
Tax Exempt
STAFF ANALYSIS
Documentation of Project Need
CITY STEPS, the Local Homeless Coordinating Board and local human service
organizations recognize the need for affordable dependent care.
The space capacity at both the Broadway Neighborhood Center and the Pheasant Ridge
Neighborhood Center has not increased in the past 10 years; however,. programming
demand has tripled in the past 10 years.
Project proposes to use funds for 1) remodeling kitchen facilities at Pheasant Ridge and
upgrading appliances at both centers; 2) replacing the back deck and classroom windows
at Broadway; 3) concrete and asphalt repairs to the parking lots at both centers.
Project Budget Discussion
The CDBG funds make up 96.6% of the total project budget. The remainder of the funds
will be coming from NOC and have been committed.
There was no mention of how the applicant arrived at the construction estimates.
Project Coordination with Existing Services\Activities
NOC has a long history of coordinating with area non-profits, organizations, neighborhood
groups, neighborhood businesses and local community leaders.
There is no duplication of services as there are limited subsidized day care options in the
area.
Applicant History or Capacity to Successfully Complete the Proposed Project
NOC has been successful in completing a variety of CDBG funded public service and
public facility projects over the last 20 years. NOC has received a number of CDBG
allocations for both the Pheasant Ridge Neighborhood Center and for the Broadway
Neighborhood Center. The funds were expended in a timely manner. Applicant operates
with a budget of approximately $1,900,000 and 55 full-time staff. They are accredited by
the National Association for the Education of the Young Child (NAEYC) and have the
capacity to complete the proposed project successfully.
Summary of Items to be Addressed
1. Will the project continue if partial funded?
2. Has NOC researched other funding opportunities for the project?
3. How were the cost estimates for the proposed improvements completed?
4. Does applicant have a capital reserve budget?
5. All work will be subject to federal labor provisions (Davis Bacon - prevailing wages)
and must comply with federal procurement standards (competitive bids) for the
proposed work.
CITY OF IOWA CITY
FY08 CDBG/HOME APPLICANT REVIEW
STAFF REPORT
Project Name &. Page Number:
Wetherby Friends & Neighbors Neighborhood
Association - Recreational Facility
Page 159
Applicant Contact:
Elizabeth Koppes
354.1335
Project Address:
Wetherby Park (Taylor Drive)
Activity Type:
Public Facility
CITY STEPS Priority:
Parks, Recreational Facilities ,- Low
CITY STEPS Goal Achieved:
Develop additional open space in low income
neighborhoods. Explore the need, plan and
construct neighborhood facilities. (Page 113)
Beneficiaries:
LMI Area Benefit. Over 55% of Census Tract
18 households are low-to-moderate income
Amount Requested:
$198,000
Repayment Terms:
Conditional Occupancy Loan
66 year compliance period
Total CDBG Cost Per Person:
$121 per person (1,638 children, 14 & under
based on the 2000 Census for Tract 18)
Percent of Project Publicly Funded: 98%
Leveraging City Funds:
$0.03 in other funds for each CDBG dollar
requested. (Leverage does not include the
City's contribution to provide ongoing
maintenance and water costs - these costs are
undetermined at this time)
Property Taxes:
Tax Exempt
STAFF ANALYSIS
Documentation of Project Need
Applicant requests funds to purchase and install a splash pad at Wetherby Park for
neighborhood recreational use during the summer months. Stand alone splash pads in low
income neighborhoods have been very successful in other communities such as Cedar
Rapids. The splash pad is programmed to operate specific hours under certain weather
conditions and does not require city supervision or staffing.
Wetherby Park is currently used by the Wetherby, Pepperwood, Broadway and Grant Wood
neighborhoods. The proposed recreational amenity would provide a free summer activity
for low-income and area children without the added difficulty of finding transportation or
crossing Highway 6. The NOC Broadway Center, MECCA Transitional Housing, HACAP
Transitional Housing and other local area providers would benefit from this type of summer
activity when children are out of school. This proposal is a direct result of a neighborhood
initiative to positively add to the livability of southeast Iowa City neighborhoods. CITY
STEPS encourages neighborhood facilities and open space in low income neighborhoods.
Project Budget Discussion
The project does not have an applicant contribution; however has support from the
Wetherby and Grant Wood Neighborhood Associations that will provide assistance with
planning, equipment choice and volunteer labor if needed. The Neighborhood Association
will also apply for PIN grant funding for benches near the splash pad. If the City agrees to
the project, the City would make a significant investment by providing the ongoing
operating, maintenance and water/filter expenses for the project.
Project Coordination with Existing Services\Activities
The Wetherby Neighborhood Association is working with the Grant Wood Neighborhood
Association to support this project at Wetherby Park. The Wetherby Neighborhood and the
City's Neighborhood Services Planner are working with the Iowa City Parks and Recreation
Department to review project specifics and project viability as the Parks and Recreation
Department would provide the financial management, construction, and maintenance
oversight. The City would also have to agree to cover the long term water and filtering
expenses.
Applicant History or Capacity to Successfully Complete the Proposed Project
The City has administered several state and federal grants and has the capacity to
complete this project.
Summary of Items to be Addressed
1. If partial funding is recommended, can the project proceed?
2. Will the City support the project and commit to the ongoing maintenance and water
costs?
3. Has applicant received project estimates (both equipment and filtering expense) from
potential vendors? Installation expense may be subject to Davis Bacon wages and the
applicant must follow federal procurement standards.
4. Has applicant considered a fundraising campaign to area businesses or neighbors to
provide a source of matching funds for the equipment in addition to the City's
contribution of ongoing maintenance and water costs?
CITY OF IOWA CITY
FY08 CDBG/HOME APPLICANT REVIEW
STAFF REPORT
Project Name & Page Number:
Extend the Dream Foundation (EDF) -
Financial Management Support
Page 169
Applicant Contact:
Thomas Walz
339-0401
Project Address:
401 S. Gilbert St.
Activity Type:
Public Service
CITY STEPS Priority:
High - Micro-Businesses
CITY STEPS Goal Achieved:
Provide Employment Training and Education
(Page 122)
Beneficiaries:
0-30% mfi
31-50% mfi
51-80% mfi
Over 80% mfi
34%
37%
23%
6%
Amount Requested: $1,500
Repayment Terms: Grant
Total COBG Cost per Person: $43 per person
Percent of Project Publicly Funded: 8%
Leveraging City Funds: $12 in other funds for each CDBG dollar
requested.
Property Taxes: Tax Exempt
STAFF ANALYSIS
Documentation of Project Need
Applicant started Uptown Bill's Small Mall in 2001 as a micro-enterprise incubator for low-
income persons with disabilities. EDF began providing e-commerce training in addition to
micro-enterprise assistance for persons with disabilities to teach people how to buy and sell
on the internet as a step towards self-employment. In 2001 the small mall location had four
micro-enterprises; the applicant now has nine business in three locations (401 S. Gilbert,
912 2nd Avenue, and 2218 F. Street). During this time the applicant has had various help
with financial management and recordkeeping functions, however the organization has no
paid staff and is managed by a full-time volunteer director. Applicant requests funds to
purchase financial management services (bookkeeping, accounting and tax assistance).
CITY STEPS notes a high priority for employment training and micro-enterprise assistance.
The focus at EDF is on improving the lives of persons with disabilities through employment
training and ownership opportunities.
Project Budget Discussion
The project leverages the volunteer time of the director and a discounted rate for tax and
bookkeeping services. Applicant also uses other volunteers to assist with sales tax returns.
The required budget summary was not attached to the application.
Project Coordination with Existing Services\Activities
Extend the Dream has been working with several community partners through referrals for
micro-enterprise or e-commerce training and hosting meeting spaces for organizations such
as AA meetings, Johnson County Coalition on Disability and the Brain Injury Group. EDF
works with Like Skills, Systems Unlimited, MECCA, CMHC, Elder Services and STAR
homeless outreach.
Applicant History or Capacity to Successfully Complete the Proposed Project
Applicant has received CDBG and HOME funds in the past for various projects. At the May
15, 2006 monitoring visit, several items were noticed that jeopardized the current year's
funding. The most important item being that EDF must have a financial system that
provides control and accountability over funds and assets, identifies the source and
application of federal funds, provides source documentation, has basic accounting records,
and ensures an adequate separation of financial duties. EDF has worked to resolve some
of these issues; however the organization must incorporate a financial management system
operated on a long term basis that will meet federal minimal standards. Applicant must also
show progress in documenting the services received by clients as well as payroll/FTE
information for those in micro-enterprises.
Summary of Items to be Addressed
1. 150 hours of bookkeeping and tax reporting will be purchased through this project. If
more time is needed, will additional funds be used for this purpose?
2. Will applicant have the resources and time to continue the recommendations and
procedures the consultant implements?
3. How will long term compliance be maintained after this project ends? Will EDF
pursue hiring permanent staff to continue its programs and services?
CITY OF IOWA CITY
FY08 CDBG/HOME APPLICANT REVIEW
STAFF REPORT
Project Name & Page Number:
Free Medical Clinic - Pharmacy Technician
Page177
Applicant Contact:
Sandy Pickup
337-9727
Project Address:
2440 Towncrest Drive
Activity Type:
Public Service
CITY STEPS Priority:
High - Health Services
CITY STEPS Goal Achieved:
Provision of Health Services: Continue support
of health, dental and HIV / AIDS services.
(Page 115)
Beneficiaries:
0-30% mfi
31-50% mfi
51-80% mfi
Over 80% mfi
67%
22%
9%
2%
Amount Requested:
$10,000
Repayment Terms:
Grant
Total CDBG Cost Per Person:
$24.57 per person
Percent of Project Publicly Funded: 2%
Leveraging City Funds:
$42.88 in other funds for each CDBG dollar
requested
Property Taxes:
Tax exempt
STAFF ANALYSIS
Documentation of Project Need:
In FY06 the Free Medical Clinic had 5,792 patient visits. 2,571 or 44% of the visits
were for chronic ailments such as diabetes, hypertension, asthma and depression. FMC
submits applications to drug company programs to treat these conditions for
approximately 125 patients monthly (average patient is on 3-4 medications). FMC
estimates approximately 10 new patients are enrolled monthly and states the program
has become too labor intensive for the case manager alone. FMC requests funding for
a pharmacy technician to help provide access to prescription medications for patients
with chronic illness. The applicant notes that there are no other free services in Iowa
City that provide on-going health care for low-to-moderate income persons.
In FY06 FMC provided nearly 8,000 prescriptions to patients. Without this service, FMC
states their clients would be go untreated, show up in local emergency rooms, and
would be unable to maintain employment or manage health complications. CITY STEPS
lists Health Services as a high priority and has a short-term objective to continue the
support of health, dental and HIV / AIDS services.
Project Budget Discussion
Applicant provides $42.88 in other funds for every CDBG dollar requested. The total
public (CDBG) cost per person is $24.57. Project leverages $409,000. in donated
prescription medications. Volunteer pharmacists fill the prescriptions and dispense the
medication at a value of $14,000 annually.
The applicant received CDBG funds for operational expenses in FY01, FY03, FY04,
FY05, FY06 and FY07.
Project Coordination with Existing Services\Activities
The Free Medical Clinic has a long history of working with a variety of agencies and
organizations in Iowa City, such as Shelter House, DVIP, U of I Hospitals, U of I Dental
program, MECCA, STAR and many private health care professionals.
Applicant History or Capacity to Successfully Complete the Proposed Project
The Free Medical Clinic has successfully administered CDBG funds in previous years.
Additionally, the clinic has a 30-plus year history of operating the clinic and overseeing
renovations funded with grants and donations.
Summary of Items to be Addressed
1. How will applicant locate funds for operational costs in the future?
2. Question # 12 states 407 clients will be served by this project. Applicant states
that this represents the FY06 actual number. Estimate for FY08 is 300+. Does
applicant see the number of clients needing this service diminishing? Please
explain. .
3. The FY07 Budget shows an agency loss of $29,889. How will this be covered?
CITY OF IOWA CITY
FY08 CDBG/HOME APPLICANT REVIEW
STAFF REPORT
Project Name & Page Number:
Local Foods Connection - Operations
Page 190
Applicant Contact:
Laura Dowd
338.2010
Activity Type:
Public Service
Project Address:
502 Kimball Road
CITY STEPS Priority:
HIGH - Health Services (medical, dental,
nutrition, preventive care)
CITY STEPS Goal Achieved:
Support food and nutrition ser.vices for low-
income residents. (p. 115)
Beneficiaries:
0- 30% mfi
31-50% mfi
51-80% mfi
Over 80% mfi
88%
12%
0%
0%
Amount Requested:
$5,000
Repayment Terms:
Grant
Total CDBG Cost Per Person:
$30 per person
Percent of Project Publicly Funded: 25%
Leveraging City Funds:
$3.00 in other funds for each tDBG dollar
req uested.
Property Taxes:
Tax Exempt
STAFF ANALYSIS
Documentation of Project Need:
Local Foods Connections was formed in 1999 to purchase fresh, organic produce, meat
products and bakery items from local small family farmers and donates these goods to
low-moderate income individuals and families. As part of their mission the organization
also provides clients with nutritional education. CITY STEPS lists Health Services as a high
priority and has a short-term objective to support food and nutrition services for low-
income residents.
In 1999 the organization assisted one client; in 2006 the organization served 29 clients
and raised $25,000 in donations. To date, the Executive Director position has been a
volunteer position. Applicant states the Director and Board recognize that to successfully
run the program on a long term basis and to continue to grow, the role of Executive
Director must be compensated. This is the applicant's first request for CDBG funding.
Project Budget Discussion
The total public (CDBG) cost per person is $30.30. The Director will donate a half time
position to continue and foster organizational growth. The value of the donated labor is
estimated at $10,000 per year.
Project Coordination with Existing Services\Activities
The applicant states it collaborates and receives referrals with the Johnson County Crisis
Center Food Bank to assist individuals with special nutritional needs (e',g. people with
diabetes, high cholesterol, blood pressure, etc.). Applicant receives referrals from several
area service providers including, but not limited to Shelter House, DVIP, ARC of Johnson
County, United Action for Youth, and UIHC Lion's Club.
Applicant History or Capacity to Successfully Complete the Proposed Project
Applicant was selected by the New Pioneer Co-op to be the recipient charity for it's newly
created "Donate your Dividend Check" program. In 2005, LFC received $4,500; in 2006
they received $15,000 from the Co-op. Based on the application, applicant has not
administered a federal grant, but has received funding from the Iowa Foundation of
Education, Environment and the Arts for the past three years and various other grants
through different organizations.
Summary of Items to be Addressed
1. Please discuss how agency or household shares work. How m~ch food is involved
with one share and how long does a client receive services?
2. The organization provides nutrition education as part of their services. What
qualifications does the person have who selects and educates the client? Does the
organization have volunteer services from a nutritionist?
3. Does the organization have the capacity to keep the necessary client records and
reporting requirements for a federal grant?
4. How much financial and program oversight is provided by the Board of Directors?
CITY OF IOWA CITY
FY08 CDBG/HOME APPLICANT REVIEW
STAFF REPORT
Project Name & Page Number: Shelter House - Outreach Services
Coordinator/Cash Match
Page 201
Applicant Contact: Christina Canganelli
338.5416 ext. 105
Activity Type: Public Service
Project Address: 331 N. Gilbert Street
CITY STEPS Priority: HIGH - Homeless Needs
CITY STEPS Goal Achieved: Expanding staff and capabilities within the existing
system to provide improved service and expanding
available services. (p. 108)
Beneficiaries: Presumed Benefit (Homeless)
Amount Requested: $ 10,000
Repayment Terms: Grant
Total COBG Cost Per Person: $21 per person
Percent of Project Publicly Funded: 32%
Leveraging City Funds: $14.29 in other funds for each COBG dollar
req uested.
Property Taxes: Tax Exempt
STAFF ANALYSIS
Documentation of Project Need
Shelter House is proposing case-management/outreach services to an estimated 470
persons annually. The proposed project will count towards a cash match requirement for the
federal Supported Training and Access to Resources (STAR) program. The STAR grant
requires $106,750 in local match to leverage $448,000 in federal funds. The program meets
several of the CITY STEPS goals and objectives as they relate to homeless individuals and
households. The primary service activity of the program is Employment Assistance, which
includes assistance with searching for employment and placement, skills training, job
coaching, vocational training, paid internships and supported work placements. The case
management staff assists high risk homeless persons connect to or receive services in the
community.
Project Budget Discussion
All of the CDBG funds are targeted for operational expenses (salaries) for the outreach and
case management functions. Other services (e.g. employment assistance, life skills, etc.) are
provided through the STAR program. Volunteers are anticipated to provide 750 hours of
general administrative assistance to the proposed project for a value of $7,500.
The total for other funds in Question #9 total $142,868. The total on the application states
$552,568. Please discuss.
Project Coordination with Existing Services\Activities
Referrals to local human service organizations are essential to the success of this proposed
project. The function of the outreach coordinator is to focus on expediting access to local
mental health and substance abuse resources, employment, housing and other corollary
community based and public resources.
Applicant History or Capacity to Successfully Complete the Proposed Project
Shelter House has been successful in completing a number of similar public service and
public facility CDBG projects.
Summary of Items to be Addressed
1, CDBG funds were used to provide a portion of the cash match required to leverage the
STAR grant in previous years. Does Shelter House anticipate difficulty with raising the
remaining cash match requirement in FY08?
2. How many of the 470 clients identified in the application will participate in STAR?
3. Discuss various outcome measures such as how many clients participating in the STAR
program obtain permanent housing and how many clients exiting the' program achieve
increased income (through employment, approved for government benefits, etc.). The
program goals indicate percentages; please provide numbers for FY06 or the most recent
annual time period.
4. This would be the seventh year of funding for this activity (coordinator/outreach position).
What is STAR's long-term plan for generating match?
CITY OF IOWA CITY
FY08 CDBG/HOME APPLICANT REVIEW
STAFF REPORT
Project Name & Page Number:
Visiting Nurse Association of Johnson County
Page 210
Applicant Contact:
Suellen Novotny
337.9686 ext. 148
Activity Type:
Public Service
Project Address:
Citywide
CITY STEPS Priority:
HIGH - Health Services
CITY STEPS Goal Achieved:
Continue support of health, dental and HIVjAIDS
services. (p. 115)
Beneficiaries:
0-30% mfi 72%
31-50% mfi 21%
51-80% mfi 7%
Over 80% mfi 0%
Amount Requested:
$ 5,000
Repayment Terms:
Grant
Total CDBG Cost Per Person:
$357 per person
Percent of Project Publicly Funded: 16%
Leveraging City Funds:
$5.12 in other funds for each CDSG dollar
requested.
Property Taxes:
Tax Exem pt
STAFF ANALYSIS
Documentation of Project Need .
The Visiting Nurse Association of Johnson County (VNA) is requesting assistance in covering
the cost of home health services to 14 low-income Iowa City residents requiring care related
to mental health disorders. VNA nurses help individuals manage health and daily living needs
such as medication management. Services provided assist persons with chronic mental
illness to function at their highest level of independence in the least restrictive environment.
In 2006 the VNA provided 335 nursing visits to 14 individuals with no health insurance
coverage. Patient fees for these individuals amounted to $3,906, leaving $30,263 requiring
subsidization. VNA requests funding to partially cover some of the unreimbursed costs.
Project Budget Discussion
All of the CDBG funds are targeted for operational expenses (salaries) for the nursing visits.
Most of the other funds have been committed and the funds are expended as the services
are rendered. Applicant entered volunteer utilization on question #10; however the
volunteers utilized are not in connection with this specific program.
Project Coordination with Existing Services\Activities
The VNA works actively with the client's physician/psychiatrist to provide home care for
mental health needs.
Applicant History or Capacity to Successfully Complete the Proposed Project
VNA has experience administering grants from the State of Iowa, Johnson County and the
United Way. They are also a Medicare certified agency and they receive an annual financial
audit.
Summary of Items to be Addressed
1. How do VNA services differ from those supplied by Community Mental Health and
Hillcrest? Are services provided in conjunction with either of these agencies? Please
describe VNA's relationship with other community partners.
2. The cost to assist one person is on average $2,186. If partially funded, would the
amount of funding recommending be in incremental steps of $2,186, i.e. $2,186 would
assist one person with on average 21 annual nursing visits; $4,372 would assist two, etc.
3. How was the $30,263 in unreimbursed costs for mental health visits covered in 2006?
4. What are VNA's long-term plans for generating funds? This is applicant's 2nd request for
CDBG funding.