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HomeMy WebLinkAbout03-22-2007 Housing & Community Development Commission AGENDA HOUSING AND COMMUNITY DEVELOPMENT COMMISSION IOWA CITY PUBLIC LIBRARY, ROOM A 123 S. LINN STREET, IOWA CITY THURSDAY, MARCH 22, 2007 6:30 p.m. 1. Call Meeting to Order 2. Approval of the February 21, February 22, and March S, 2007 Minutes 3. Public Comment of Items Not on the Agenda 4. Discussion of Iowa Valley Habitat for Humanity's Request to'Amend the Financial Terms and Budget for their FY07 Affordable Homeownership Project 5. Discussion Regarding FY08 Community Development Block Grant (CDBG) and HOME Investment Partnership Program (HOME) Requests . Discuss FYOS CDBG\HOME Applications . Develop FYOS CDBG\HOME Budget Recommendation to Council 6. Staff/Commission Comment 7. Adjournment PLEASE NOTE: MEETING BEGINS AT 6:30 PM IN THE IOWA CITY PUBLIC LIBRARY MEETING ROOM A j ~ 1 _f'""o= -4.., ~~~~~ ~ ~IJII" -.~ CITY OF IOWA CITY MEMORANDUM TO: FROM: DATE: RE: Housing and Community Development Commission Tracy Hightshoe, Associate Planner March 19, 2007 HCDC Meeting, March 22, 2007 Enclosed are the revised rankings and proposed allocations for your review. At the March 22 meeting, HCDC will allocate up to the $1,122,000 funds available to FY08 CDBG/HOME applicants and then forward this recommendation to the City Council for, consideration. The actual FY08 entitlement amounts have just been released by Congress. There was a slight reduction in both CDBG and HOME entitlements this year. Congress approved the same budget as last year; however additional communities were added as entitlement communities thereby slightly reducing the amount available to each community. Staff will update the commission on the final amount available for allocation at the meeting. There is one additional item on the agenda for March 22. Staff received a request by Habitat to amend their FY07 application. Habitat was awarded $220,000 in HOME and CDBG funds to acquire property to construct at least four homes available to low-income homebuyers. Habitat has identified 6 lots for purchase for $168,000. They request that the remainder of the funds, $52,000, be used for construction and landscaping costs. The lots were to be placed in a 99- year land trust for permanent affordability and thus were in the form of a grant. Habitat requests that instead of a land trust, the City place a silent, second mortgage on each lot to be repaid when the home is sold. Habitat must go through both HCDC and the Council for this request as it is considered a substantial change. HCDC's recommendation will be sent to the Council for their consideration. The March 22 meeting begins at 6:30 pm at the Iowa City Public Library in Meeting Room A. If you are unable to attend, please call me at 356.5244 or contact me by email at tracy- hightshoe@iowa-city.org. PRELIMINARY MINUTES HOUSING AND COMMUNITY DEVELOPMENT COMMISSION WEDNESDAY, FEBRUARY 21,2007 -11:30 AM LOBBY CONFERENCE ROOM, CITY HALL MEMBERS PRESENT: Jerry Anthony, Steve Crane, Marcy DeFrance, Holly Hart, Charlotte Walker MEMBERS ABSENT: Andy Douglas, Tom Niblock, Brian Richman, Michael Shaw STAFF PRESENT: Tracy Hightshoe, Steve Long RECOMMENDATION TO COUNCIL (become effective only after separate Council action): None Call to order: Chairperson Anthony called the meeting to order at 11:40 a.m. Site Visits to FY08 CDBG/HOME Proposed Project Sites Neighborhood Centers of Johnson County - Pheasant Ridge Center (2651 Roberts Road). Brian Loring provided a tour of the center and highlighted the proposed improvements. Neighborhood Centers of Johnson County - Broadway Center (2105 Broadway). Brian Loring and Sue Freeman provided a tour and highlighted the proposed improvements. Goodwill Industries of Southeast Iowa (1410 S. First Ave.) John Watson provided a brief tour and highlighted the proposed improvements. Iowa City Free Medical Clinic (2440 Towncrest Drive) - Sandy Pickup provided a brief tour and discussed the proposed improvements. Adjournment: MOTION: Hart moved to adjourn the meeting, Crane seconded the motion. The motion carried on a vote of 5-0. The meeting was adjourned at 1:15 p.m. PRELIMINARY MINUTES HOUSING AND COMMUNITY DEVELOPMENT COMMISSION FEBRUARY 22, 2007 IOWA CITY LIBRARY, ROOM A Call to Order: Jerry Anthony called the meeting to order at 6:35 pm. Members Present: Jerry Anthony, Steven Crane, Marcy DeFrance, Holly Hart, Thomas Niblock, Brian Richman, Charlotte Walker Members Absent: Andy Douglas, Michael Shaw Staff Present: Tracy Hightshoe, Steve Long Others Present: Steve Ramirez, Sue lien Novotny, Laura Dowd, Sandy Pickup, Thomas Walz, Christina Canganelli, JeffVanatter, Dick Brown, Steven Rackis, Deb Riggs, Maryann Dennis, Charlie Eastham, Allan Axeen, Joshua Webber, Jesse Bums, Dawn Newbill, Jeff Enberg, Jordan Pettis, Elizabeth Koppes, Brian Loring, Liz Weinberg, John Watson, Kristie Fortmann-Doser RECOMMENDA TIONS TO COUNCIL (become effective only after separate Council action): None APPROVAL OF THE JANUARY ISTH, 2007 MEETING MINUTES Niblock motioned to approve the minutes as submitted. DeFrance seconded the motion and the motion carried on a vote of7:0. PUBLIC COMMENT OF ITEMS NOT ON THE AGENDA None FYOS QUESTIONI ANSWER SESSION Jerry Anthony introduced himself to the room and asked the rest of the Commission to do the same. Jerry Anthony said that the city received 20 applications requesting $2,346,185 in CDBG/HOME funding. Anthony said that the city expects to have $1,694,376 in federal funds from the U. S. Department of Housing and Urban Development. Anthony said that after removing the Council approved set-asides (administration, Aid-to-Agencies, housing rehabilitation), the City of Iowa City has approximately 1,122,000 available to allocate to FY08 project requests. Anthony said that of the total funds available, it is the City's goal to allocate 48% to housing activities. This year there is $939,364 set aside for housing activities, $726, 516 is available for allocation. There is $121,700 set aside for Public Services (8%), $16,700 is available for allocation. Anthony said that of the $409,900 set aside for Public Facilities and Infrastructure (21%), $378,784 is available for allocation. Anthony said that of the total FY08 funds of$I,694,376, there is $1,122,000 available for allocation. Anthony reminded housing applicants that they have ten minutes to answer questions. Hightshoe said that when there is a minute left, she will hold up a sign to inform the applicant as well as the Commission of the remaining time. IC Housing Rehabilitation-Lead Based Paint Assistance, Jeff Vanatter Anthony asked Vanatter why he was requesting funds from both HOME and CDBG. Vanatter stated that their program receives both sources of funds. The distinction must be made between the programs as HOME funds for lead based paint can only be used on HOME assisted properties. The clarification is also needed for budget purposes. CDBG funds would go to CDBG funded projects and HOME funds would be used for HOME assisted projects. Walker asked Vanatter how IC Housing Rehabilitation lets people know about their services. Vanatter stated through press releases, mailings in the water bills, etc. Walker asked Vanatter if the IC Housing Rehabilitation rehabilitates mobile homes. Vanatter said yes, however the repairs to mobile homes are usually considered emergency repairs for safety issues such as furnace replacement or plumbing/electrical work so would not be subject to lead based paint provisions. Crane asked Vanatter is the ICHR uses one specific contractor. Vanatter replied no as the homeowner can choose their own contractors, however the contractor must use lead safe work practices. Iowa Valley Habitat for Humanity (IVHFH), Dick Brown Anthony asked what the average cost is. Anthony asked about new subdivision. Anthony asked about design guidelines. Niblock asked about land trusts. Brown stated he did not know the particulars but stated as they are not sure what will happen in 5, 10, 15 years they were uncomfortable with the concept. Walker asked if the IVHFH has selected any lots. Brown stated they are always looking. Homes for Our Future - Iowa City, Steven Rackis and Deb Briggs Walker asked if Briggs' research included the spouses of teachers. Riggs said there was no way to check that. Niblock asked if they would be providing services to University workers. Briggs stated any public servant. Walker asked ifthey've identified the houses. Briggs stated no. Walker then asked how they market their houses and if they have a realtor. Briggs stated they do not a realtor due to the extra expense. The Housing Fellowship CHDO Operating Expenses, Maryann Dennis and Charlie Eastham Crane asked what The Housing Fellowship has used in the past for funds. Dennis replied that they have used funds generated from rent, donations, and the sale of existing units. Richman asked if this would be a one-time request for funds. Dennis stated they believe so, but can't guarantee that in the future they wouldn't come back to request these type of funds. Walker asked if they submit reports. She was concerned about the HCDC approving funds that The Housing Fellowship does not need. Dennis stated they provide financial oversight and have an active Board. They also receive an annual audit and must submit reports and the audits to the City and State. Walker and Richman requested a copy. Hightshoe stated staff would mail them their most recent audit. The Housing Fellowship - Home and Neighborhood Program, Maryann Dennis and Charlie Eastham Richman asked if these were two-bedroom homes and if so, what types of people get these two-bedroom homes. Dennis replies yes. Their most recent project was for 3 bedroom units. This project proposes 2 bedroom units as that is their largest rental demand. Single moms make up the most number of clients for rental units. Hawkeye Area Community Action Program - Transitional Housing, Allan Axeen Crane asked about the "negative cash flow." Axeen stated there was a mistake and submitted a revised proforma. Axeen stated any deficiency would be made up by the organization. Axeen stated that buying condos has worked very well for the organization as exterior maintenance is paid through association fees as well as snow removal/landscaping. Builders of Hope - Transitional Housing, Joshua Weber Weber read aloud and addressed the five questions on the back of the staff report. Richman asked how residents are able to pay. Weber stated through work earnings, disability payments, etc. Richman asked who owns the company. Weber stated it is a for profit owned by Builders of Hope. He is an owner of the company. Crane asked if there is a waiting list. Weber stated he has five persons that have already expressed an interest. Blooming Garden IHA Limited Partnership, Jesse Burns Bums read aloud the memo he handed out to the HCDC (see attachment) Long asked about constructing zero-step entrance ways. Bums stated the application is for down payment assistance, not construction so the zero-step entrance may not apply. Ifis does, they will work something out. Richman asked how they were handling the construction financing. Richman asked about additional company loans. Jerry Anthony informed Public Service applicants that they have five minutes to answer any questions in front of the HCDC. Visiting Nurse Association, Suellen Novotny Walker asked Novotny if the VNA has had trouble monitoring costs. Novotny stated no, they keep detailed records. Local Foods Connection - Operations, Laura Dowd Dowd handed out a memo titled "Items to be Addressed." (Dowd read from her memo verbatim.) Niblock asked Dowd how Local Foods Connection selects its clients. Niblock then asked ifthere is a waiting list. Dowd stated they get referrals from local agencies. They don't technically have a waiting list as they inform their referral sources how many clients they can take and the agency only provides referrals up to that number. If they could accept more, the agencies would send more referrals. Walker asked Dowd if Local Foods Connection's services are open to the public. Walker asked how much clients pay. Dowd says they work on a referral basis from agencies like DVIP, Crisis Center, etc. The food they provide is free to the client. Free Medical Clinic - Pharmacy Technician, Sandy Pickup There were no questions from HCDC. Extend the Dream Foundation (EDF) - Financial Management Support, Thomas Walz Anthony asked Walz ifhe had asked the city for funds. Walz stated they have in the past for various projects. They have had different volunteers in the past, but will be contracting with a tax/bookkeeping firm to work with their financial reporting and records. Shelter House - Outreach Services Coordinator, Christina Canganelli Canganelli read aloud the four questions listed on the staff report and answered them one by one. Refer to attachment. Anthony called for a ten-minute break. Crisis Center - Accessibility & Security, Jesse Burns and Dawn Newbill Bums read the 3 questions on the staff report out loud and answered each one. Niblock asked about the facilities outside lighting. Newbill stated there is currently no outside lighting in those locations. Iowa City Free Medical Clinic - Facility Rehab, Sandy Pickup Pickup addressed each of the three questions on the staff report. Extend the Dream Foundation - Property Acquisition, Thomas Walz Walz stated they would address the financial management issues. Walz stated they applied as a public facility as it seemed to make more sense given the reporting requirements and nature of project. The project is also available under economic development; however job creation/retention records must be kept. Wetherby Friends & Neighbors Neighborhood Association - Recreational Facility, Elizabeth Koppes Hightshoe announced that the Parks and Rec. Director could not attend but would answer any questions that the commission had. Parks and Rec. had committed to funding the ongoing maintenance and water costs for the project if funded. Niblock asked what would happen to the facility during wintertime. Koppes said that the facility would be winterized. The water shuts off in periods of no motion, high wind and will be open basically during the summer months when warm. Neighborhood Centers of Johnson County, Brian Loring and Liz Weinberg Walker asked about kitchen remodeling. Anthony asked which of the three projects they would place the most priority on. Loring stated the kitchen remodeling. Goodwill Industries of SE Iowa, John Watson Hightshoe asked Watson what his number one priority is, ifhe had to choose. He stated the whole project is important, but they would prioritize if needed. Their goal is to have it all done, how long that will take is the question. Adjournment Crane motioned to adjourn the meeting. Walker seconded the motion and the motion passed 7:0. The meeting was adjourned at 9:35 pm. PRELIMINARY MINUTES HOUSING AND COMMUNITY DEVELOPMENT COMMISSION MARCH 8, 2007 IOWA CITY LIBRARY, ROOM A Call to Order: Jerry Anthony called the meeting to order at 6:35 pm. Members Present: Jerry Anthony, Steve Crane, Marcy DeFrance, Holly Hart, Brian Richman, Charlotte Walker, Andy Douglas Members Absent: Thomas Niblock Staff Present: Tracy Hightshoe, Steve Long Others Present: Steve Ramirez, Charlie Eastham, David Dowie, Jesse Burns, Chris Harms, Beth Koppes, Steve Rackis, Laura Dowd, Dawn Newbill, AI Young, Suellen Novotny, Mark Patton, Maryann Dennis, John Watson, Sue Freeman RECOMMENDATION TO COUNCIL (become effective only after separate Council action): None PUBLIC COMMENT OF ITEMS NOT ON AGENDA Walker asked Anthony to explain the procedure for public comments. Anthony said that during public comments, members of HCDC are not allowed to engage in the conversation. Anthony said this will be in the minutes. Anthony said that if HCDC feels that the public has raised an issue that needs immediate attention, they can put it on the agenda for the next meeting. Charlie Eastham, The Housing Fellowship, said that at the last HCDC meeting, when the application for the Housing Fellowship was discussed, member Charlotte Walker asked a series. of question regarding the Housing Fellowship's need for the money. Eastham, at the last meeting, replied that the Board had approved the application and therefore in their judgment the application was justified. Eastham said that Walker then made a reference to another non-profit organization, which has been in the news, and she indicated a comparison between that organization's board and the Housing Fellowship's Board. Eastham said that the past chairperson for the non-profit organization that has made recent news has been indicted for fraud and theft. Eastham said that he has never had any public official in a public meeting compare an organization's board with another's, especially one that has been accused of criminal conduct. Eastham said that is inappropriate. Eastham requested HCDC member Walker to apologize for her remarks and if that is not forthcoming, Eastham requested the other HCDC members to examine Walker's ability to be fair and impartial and her ability to serve on the HCDC commission. David Dowie, 320 S. Dubuque St., said that when Eastham was discussing his needs for the funding, Walker asked a question concerning administrative costs in the past so to compare how much was used for salaries and how much was going to housing. Dowie said that he remembered Eastham not having those figures, but saying the Board did. Dowie said that Walker replied that Boards shouldn't be considered people and then referred to the non-profit organization being indicted as a point of reference to make her point that all boards are not equal. Dowie said he doesn't think Walker was slanderous but instead, Eastham should know the administrative costs himself and not rely on an absent Board. Dowie said that Eastham is wrong in asking for Walker's apology and pOSSible resignation. Dowie said Walker doesn't have anything against fair housing. Dowie said that Eastham never answered the question and that is the issue, not Walker's reference to the non-profit organization being indicted. Public comment session closed. Housing and Community Development Commission March 18, 2007 Page 2 DISCUSSION REGARDING FY08 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME INVESTMENT PARTNERSHIP PROGRAM (HOME) REQUESTS Douglas asked when the minutes of the February meeting would be available for review. Hightshoe explained that the digital recording of the HCDC meeting on February 22, 2007 was accidentally deleted. She said that while a brief outline of the meeting was provided, there would be no official minutes to approve until the following HCDC meeting on March 22,2007. Hightshoe thanked HCDC for their timely responses with their ran kings. Hightshoe said she summarized them into preliminary rankings and then she averaged the scores. Hightshoe said that she changed some of their scores because some fields required 0 points if the member answered no to the first question. If a member put no, the applicant gets zero points for that particular section. Hightshoe said if there are questions about ran kings, they can discuss those right now. Hightshoe asked for questions about the summary ranking sheets. Hightshoe pointed out that she passed out the original ranking sheets that the members submitted. Hightshoe reiterated that the ranking sheet is very preliminary. Hightshoe said that "no scores" were not averaged into the final score. Hightshoe said that the same principles apply to their average allocation worksheets. Walker asked the question: if she chooses to allocate money to an applicant, can HCDC hold back the funds for six months? Hightshoe said yes, however the source of funding is important and there are always time constraints. If a HOME project, it has to be completed in 5 years. The longer we wait, the greater the risk a project not being completed on time. Housing projects, especially new construction, are complex and take much longer than most public facility projects such as room renovations. Walker said that she put zero on all the housing projects because she doesn't really know what the housing applicants are going to do with it-at least, she said, not on paper. Hightshoe stated the applicants did outline their projects and completed estimates on costs. She stated it is very common for developers not to have a site at time of application as the application is due in January; however, funds are not available till July. Most sellers will not wait that long to sell individual lots. Without a site secured most organizations will not pay to have plans made in advance. Walker questioned the need for various types of housing and if the City had documents verifying the need. She questioned if the City shouldn't wait for the survey on housing to be done before making decisions. Anthony said that they have significant documentation from housing applicants, Census information and documentation in CITY STEPS. Anthony stated the reason for the upcoming housing market analysis Walker referred is to get data that has not been picked up in some census documents. Anthony said that the lack of this specific information will not alter the dimension or scale of the applicants' proposal. Anthony said that the amount of money that they have is fairly insignificant compared to the need. Walker said that the most urgent needs are for those at the low end. Anthony said that HCDC members surely will be willing to fund those on the "low end" as well. Anthony said that they did hold money back last year. Richman said they held back money last year, thus do we need to do anything to, indicate of the HOME funds, what needs to be spent first? Hightshoe said that is done internally. Richman said if Hightshoe could clarify the night's goals. Hightshoe said that the goal of this meeting is to look at the ran kings/allocations and look for major differences or discrepancies and address possible reasoning behind such differences. HCDC members can ask applicants questions if they still have them regarding their applications and why they scored/funded as they did. HCDC members may make changes and submit them to Hightshoe for the March 22 when HCDC makes their final recommendation to Council. Richman said that in his opinion the allocation sheet is the most important document. Anthony said that they will start with the ranking sheet. Anthony said that they will start with Public Services. Hightshoe said that due to the federal regulations and necessary record keeping they request. that no application is allocated less than $1,000. This is a requirement of the HOME program. Hightshoe stated that for some applications, each HCDC member will have to ask if the project is feasible and at what amount does it no longer become feasible. Housing and Community Development Commission March 18, 2007 Page 3 Public Services Walker said that the Free Medical Clinic and Shelter House are also getting money from the city. Walker used an analogy of a poor person asking for food from two different sources. Walker said that while both applicants are commendable, do they need the money? Anthony said that HCDC doesn't know the logistics of any additional funding requests and therefore the members should not hold it against them. Walker said the VNA is a for profit and is also getting money from the city through Aid-to-Agencies. Hightshoe said that VNA does not receive Aid-to-Agency funds. Novotny, VNA Director, confirmed this and also stated they are a non-profit. Hightshoe said that Shelter House and Free Medical Clinic receive Aid-to-Agency funding. Long said that it's important to look at the project at hand; not external requests or other funding sources not related to the specific project. Anthony asked the commission about rankings and if they are comfortable. Hightshoe asked DeFrance about her low scores for Free Medical Clinic and Extend the Dream. DeFrance said both were a mistake. DeFrance said that the score of 21 should have been 52. DeFrance said that she "shorted" Weatherby Park 10 points. Richman asked about the VNA's low scores. He wanted those who scored them low to explain their reasoning. Walker said that the reasons she did was because they were serving so few people, but requesting a lot in funds. She also stated the County has an obligation to take care of mentally ill people. Anthony said that his reasoning was based on the amount of money being spent on each person. Anthony said the other issue was the amount of money being leveraged. Anthony said that VNA leveraged $5.12 per CDBG dollar, however some of the other public service applications leveraged $40- $50 per CDBG dollar. Anthony said that given the limited resource pool, the VNA was the least efficient. Richman asked what people thought about the Local Foods Connection application. Anthony said it's a new project. Walker said that it's too much money for so few people. Crane said he put zero because while the mission is great, it's not a priority for him amongst the other applications. Anthony said he scored it high because the lack of food is making national headlines. Anthony said that nourishing Iowa's kids with healthy food is a major priority. Douglas said that one thing he struggled with is whether to allocate more money to fewer applicants or divide the available funds equally, in which more applicants would get less. Richman said that this question was a recurring issue. Anthony said the advantage of dividing the money equally would be that everyone gets money; however, a little may not be enough to make a difference. Douglas asked staff what HCDC has done previously. Hightshoe noted that the previous year, almost every applicant got a little bit of money. Hightshoe said that precedent aside, each project should be evaluated independently and the commission should ask, "is this project feasible and at what amount?" Anthony asked if there was any project the commission would like to see funded more than the others. Anthony noted that they cannot allocate more than $16,700. This is a federal cap. Anthony said that they may only spend 15% of the available CDBG funds for public services. $105,000 is a council earmark for the Aid-to-Agency fund. Crane asked Anthony about his low ranking for Extend the Dream. Anthony said that while he commends the organization, he has a concern about its lack of organizational structure. Anthony said that he did not allocate anything to it because Iowa City has the Economic Development Fund (EDF), which can be accessed for both requests from the applicant. Anthony said that EDF accepts applications on a rolling basis so he thinks Extend the Dream is a prime candidate for EDF and HCDC should forward the application to that pool of funds. Anthony said that 15% of CDBG funds are usually taken out for EDF but this year that was not the case. Hightshoe said the amount available for economic development was prorated between housing and public facilities based on the CITY STEPS percentages. Hightshoe noted that in years where more than $250,000 is available in the economic development fund, no new allocation will be taken from that year's CDBG entitlement. Public Facilities Anthony suggested that HCDC move on to public facilities. Anthony asked the members for their reasoning behind allocating zero dollars to Extend the Dream. Hart said that while she has an interest in Extend the Dream, she said there were other funds they could apply for. Hart said that for Weatherby Park, she was looking for something to cut and this was the least priority in her opinion. Walker said that her reason for allocating zero to Weatherby Park was that their funds should be coming from City Housing and Community Development Commission March 18, 2007 Page 4 recreational funds. She felt that some money could be taken away from the walking trails and given to the Weatherby Park applicants. Richman said that, as the only person who allocated money to Weatherby Park, he felt that in terms of the number people a project serves, this one in particular serves the most, in his mind, even though it can be deemed as a low priority project. Richman said the challenge with Weatherby Park is that it is an "all or nothing" type of project. Richman asked if the applicant had to scale back, what would be the effects on the project. Beth Koppes, Weatherby Friends & Neighbors Neighborhood Association applicant, said that scaling back funds would affect the size of the recreation facility, They could and are willing to scale back the project; it would just reduce the number of kids that could use it at anyone time. Richman asked if she's applied for funds from the parks and recreation department. Koppes said she hasn't applied yet, however she has met with their board to discuss the project. They possibly could contribute some money, however nothing is definite and they might only have limited amount available for a capital type project. Anthony said that it's a fantastic project and such a facility would be good for the neighborhood. Anthony said that the City should be responsible for this project through their Capital Improvement Plan (CIP). Koppes said that it was too late to apply for these funds. Richman said he was placing emphasis on the two new large, brick and mortar type projects when deciding which projects to allocate funds to and Weatherby Park got his vote. Changing the subject, Walker asked why Extend the Dream didn't just buy the building themselves if already paying $1,200/month in rent. AI Young, Extend the Dream Foundation, said that with the money ($99,000) they could make their private, bank loan $50,000. Young said that freeing up funds as a grant would make other things happen. Young said that as for the rent itself, if we could buy the building, they could reduce the rent and use the money for other programs. Young said it's hard to explain but what he likes about it is that it serves a lot of people. Young said that whatever their allocation is would be well used. Richman said that as far as NCJC, he funded the work at the Pheasant Ridge Center, however not the proposed improvements at Broadway. He stated he felt that since they put CDBG money into the Broadway center a couple of years ago (FY06), it's now time to fund or look at other projects. NCJC stated the kitchen improvements at Pheasant Ridge was their top priority, thus Richman stated he funded that portion of the proposal. Anthony agreed with this reasoning. Crane said he allocated the full amount because of all the people it affects. Walker asked how Richman was able to specify funds to a specific location. Richman said it can be done. Hightshoe agreed as staff has done it in the past. Any stipulations/restrictions approved by HCDC and Council are identified in the funding agreement. Housing Projects Anthony suggested that they move on to the housing projects. Hightshoe said that she wanted to raise some questions to applicants. Hightshoe said that she would like to answer some housing questions that were raised by individual commission members. Hightshoe said that when HACAP did the pro forma, it showed a negative cash flow. Hightshoe said that HACAP submitted a revised one that still shows a negative cash flow in the first two years and then the rest of the cash flow was $200 to $600 in subsequent years. Hightshoe stated that HACAP had previously stated any shortages would be funded by outside funds. Hightshoe cautioned against funding a project that relies on donations/supportive services/outside funding to subsidize the project for it to be viable long term. She stated housing projects must be viable for 15 to 20 years depending on the project and how much HOME money is invested in the project. Additional HOME funds can't be reinvested in the project during this period as it is against program rules. Hightshoe stated staff will sit down with the organization to go over how they estimated revenues/expenses and inform commission members on staff's assessment of project viability by March 22. Hightshoe said there was a distinction she wanted to make. Hightshoe said that the Housing Authority and Housing Rehab. applicants requested CDBG dollars as opposed to HOME dollars. This makes a difference is some commission members allocations. Hightshoe said HOME funds can only pay for housing activities. Eligible HOME projects are identified on top on the allocation sheet. HOME funds can't be used for public service or public facility projects. CDBG funds can be used for all the projects submitted this year, even the housing projects. (The operating expenses for the CHDO are eligible under public services under the CDBG program, but subject to the federal cap for CDBG funds.) Hightshoe Housing and Community Development Commission March 18, 2007 Page 5 said that we have to spend at least $726,000 in HOME funds for just HOME eligible activities. Hightshoe reiterates that HOME funds cannot be used to fund anything in the public facilities or public services categories. So when a housing activity asks specifically for CDBG funds and not HOME funds and the HOME allocation falls below that $726,000 requirement then additional HOME eligible housing activities must be funded. Richman stated basically that there is approximately $726,000 to fund housing applications and just short of $400,000 in CDBG funds to be allocated to housing, public facilities and public service applications. Anthony suggested that the commission start with Blooming Garden. Walker said that Blooming Garden had the most complete information and good paperwork. Walker said she doesn't know what the others are going to build. She said she didn't have a picture or a lot. Hightshoe said that this was very common for housing applications. Walker said there should be a picture. Walker said she wants to compliment Blooming Garden for being compliant with all of their criteria. Richman said that the money HCDC provides is the "seed money" and developers in most situations can't obtain the information at the time they apply. Walker requests that they should wait until they have a lot to know what will be built. Long said that all the plans come through the City and must meet design guidelines. Walker said that building houses in the peninsula doesn't seem like good judgment. Anthony asked Blooming Garden if $15,000 would be acceptable. Jesse Burns, Blooming Garden applicant, said that this amount would scale down the structure by a third and it would hence make it not very useful. Anthony said it was a very good project and for similar reasons he funded the ICHA. Anthony said it is important to serve populations not served by the market. Richman said he is in favor of the mission of Blooming Garden, the ICHA, etc. His concern with Blooming Garden is cost effectiveness. He referred to Habitat for Humanity, where $40,000 brings in an entire family; per unit cost is $120,000. This project per unit cost is $200,000. For Blooming Garden, Richman noted, it's a duplex unit. Habitat is single, detached homes. Richman said that the City has a Down Payment Assistance program (DPA) with a maximum of $5,000 dollars for an applicant. Richman asked the question: if we're going to do a DPA program, why say to people you have to live in one of these three houses as opposed to anywhere in Iowa City? Burns said that to reach out to the people who need assistance, you need to find a builder who is willing to work with the people. Burns stated he wants to serve those who don't qualify for section 8 housing. He thinks his costs are reasonable and he says that his design is very nice, as opposed to the stereotypical low-income housing designs. The design fits into the neighborhood and someone could not go by and pick it out as the low-income/subsidized unit. Burns said that this alone is a service to an entire neighborhood. Crane said that Builders of Hope is a good project for those who don't normally have a lot of opportunity. Crane liked the idea that the applicant already has enough of a waiting list or interest to fill the units. Hart also liked the project but couldn't figure out how to allocate enough money to make it viable. She would be revisiting it, however. Anthony said that it's an "all or nothing" deal and it's not scalable. Hightshoe suggested asking the applicant this question on March 22nd. Richman agreed with Anthony's concerns. Richman said that the applicant has very limited experience as far as owning and operating a housing project. Richman was not sure if he wants to take this risk. Crane said that a bank would be willing to fund more than the applicant initially said. Staff stated they would contact the applicant to discuss what level of funding makes the project viable and confirm if the entire amount is necessary or if they can accept less than full funding. Anthony asked for comments on Habitat for Humanity. Walker said she gave it zero dollars because it is questionable to buy a condo for a homeless person. Hightshoe said Walker was most likely referring to HACAP's application. Walker said she didn't have any problem with Habitat other than the need and cost. Anthony said that for $47,000 per household, you can't beat that efficiency. Anthony moved on to HACAP. Walker continued her argument. Walker said that the idea of homeless people living in condos doesn't make sense to her. Walker asked why they don't just live in an apartment. Hightshoe said that HACAP's transitional housing units are rented out like apartments. The only thing that makes it a "condo" to the renter is that HACAP owns the unit. HACAP remains the tenant's landlord. Housing and Community Development Commission March 18, 2007 Page 6 Walker asked why social workers can't help the homeless people find apartments. Richman said that under HACAP's project, a homeless person will get a place to live temporarily, for two years at the most. Hightshoe stated that HACAP rents the units based on the tenant's ability to pay, the renter does not need Section 8 to get into their units. Other landlords for private market apartments do not base rent of the tenant's ability to pay. Walker asked what this will do to the "condo people." She was concerned that a homeless person in a condo would "weird them (the neighbors) out." Walker said that this project seemed too extravagant for a homeless person. Anthony said transitional housing is very much needed. Long said that it's important to look at the continuum of care, or big picture. Crane said that HACAP provides a good service. He has a problem with the pro forma but he'll wait to address this issue with the applicant. Anthony said he gave zero dollars because when he scored the project it scored very low. The negative cash flow was the deciding factor for him. Also, HCDC has funded HACAP quite a bit in the past. Anthony moved on to ICHA. Hart said she liked the idea however the project did not serve a large segment of the population, thus she did not see it as the number one priority. Hart said she'd be interested in revisiting her own numbers. Richman said that the evidence presented at the last meeting seemed "anecdotal" to him. Richman said the analysis was not very scientific and he would like to see a survey that shows there's a need for housing for public servants. Anthony said that he found the data compelling and recommended allocating $260,000. He said that the ICHA talked to someone in the school district and the fire department (or police department) and to him it seemed like a good faith attempt to provide compelling evidence. Richman said that he felt like the evidence was not credible. Steven Rackis, ICHA applicant, said that the statistical data Richman speaks of is not yet available. He said he discerned the need based on salary information. Rackis said it wasn't .anecdotal but instead factual. Richman asked if they'd be willing to accept partial funds. Rackis said this would mean the third unit could not be set aside for those households over 80% of median income. Rackis said that the other component is neighborhood revitalization. Hightshoe reiterated Richman's question and then added if they'd object to getting HOME funds instead of entirely CDBG funds. Rackis said that they wouldn't even begin to look at home unless they had the funding. He said that if they are partially funded, the project will still go. Anthony moved on to IC Housing Rehabilitation. Crane put the full amount because the kids are top priority. Hightshoe noted that this applicant also requested money from both HOME and CDBG. Walker said she objected because they don't itemize to the public where they're putting that money. Walker said she can't find anywhere where they've spent money in the past. Hightshoe said anyone can request that information. Hightshoe said the amount of funds and how the funds were used is in the CAPER. Walker said it's still hard to get. She tried to find out where the money went for rehab of mobile homes but she couldn't find it. Long said the City does not publicly publish information for individual home owners (address with income information) due to privacy issues. Hightshoe stated any private citizen can request this information and it would be provided. Anthony said that the issues brought forth by the applicant were very important. Lead paint mitigation means safer housing. Anthony said that if a low-income person wants to use a DP.A program to buy the home at $100,000, you can't do it because of lead paint issues. Walker asked what if you rehab the house and then the owner sells it? Does the homeowner have to pay back the money? Hightshoe said the amount for the rehabilitation is a loan and must be repaid. The amount attributed to lead based paint would be a forgivable loan as stated in the application. Anthony moved on to Housing Fellowship Projects - CHDO. Hart asked where people got more than $31,000. Richman said it was from both CDBG and HOME funds. Crane said that because of cash flow problems throughout the years and the amount of units they have, he is very supportive of funding. Richman said that he would rather see HOME funds go into capital costs. Richman said that this project resembles a public service project and he felt that, unlike Extend the Dream for 'example, the Housing Housing and Community Development Commission March 18, 2007 Page 7 Fellowship has a source of income. Richman said that the large amount of money spent on contractor fees could be used to cover operational costs. Maryann Dennis, The Housing Fellowship applicant, said that all of the capital expenses come out of rental income also. She said that because they're community housing, they've met HUD's test and guidelines to remain a certified CHDO. Dennis said that they've continued to meet all of the requirements so that the city will continue to grant them CHDO status. Anthony said that this is the reason he funded the applicant. Anthony said he found it favorable because if an organization comes in and says it has money for operations, it gets additional points because it encourages housing applicants to leverage dollars. Anthony supports the full amount requested. Anthony moved on to The Housing Fellowship-Affordable Housing. Douglas noted that this is the only affordable rental program on the list. Richman asked if the applicant is comfortable with their project from an administrative perspective, Applicant said yes. Richman said he just wanted to know that Dennis was confident and comfortable with the project. Hightshoe said she'll be following up with the questions put forth toward applicants not present. Hightshoe said that HCDC can keep their original ranking sheets for now but she will need them back. The HCDC commission and staff agreed that the revisions to the ranking sheets/allocations shall be due to Tracy on Monday, March 19th, 2007. Hightshoe requested that the earlier they could submit their changes the faster they could get the packets out. ADJOURNMENT Crane motioned to adjourn the meeting. Richman seconded the motion and the motion passed 7:0. The meeting was adjourned at 8:45 pm. s/pcd/minutes/hcdc/3-18-07.doc ~ Iowa Valley ~ Habitat ", " for Humanity@ "the excitement is building" 2401 Scott Blvd. Iowa City, IA. 52240 ph 319.337.8949 fax 319.354.3527 www.ivhfh.org March 8,2007 To: HCDC and City Council Re: Proposed amendment to CDBG/HOME FY 07 terms Iowa Valley Habitat for Humanity is requesting an amendment to the FY07 CDBG/HOME agreement. The $220,000 award was originally proposed to go exclusively for lot purchase and the resulting lots were going to be placed in a land trust. Since the time of the application more than a year ago, we have been fortunate to received permission to purchase building lots below Highway 6 for the purpose of home ownership. This has meant that we could buy less expensive lots than we had originally proposed. With the $220,000 award we are able to purchase 6 lots plus have $52,000 left over. Weare proposing two changes to the original agreement: 1) To be granted permission to use some or all of the $52,000 for landscaping, soil erosion control, and extra storage space (shed or garage) costs for the six homes. 2) To place the cost of the lot in a silent, second mortgage for the family rather than in a land trust. This would mean they would not have to pay for the cost of the land until such time as they would sell the house. At that time the City would receive back the full amount of the lot purchase price. They would still have a 20-year resale restriction in place. I hope you are favorably inclined to consider accepting this amendment to our agreement. We believe it is a reasonable and mutually beneficial way to proceed by building two more homes than was originally proposed and to make them look better at the same time. Thank you, .f. tJ .. II. C/'L A-; IA Mark Patton Executive Director ,... 0 0 0 , 00 , 00\010 0\ L/') , gggg~ 0000 , 0 0 2j 0 00 001'" NO\ 0000 0 0 ~ 0 00 O,O,M...M L/')CO u:. 0, 0, 0, en L/')OL/')I' 0 C '<j:' 0' CO'L/')' .....' \0' .....' 1" " N' III 0 '<j:00 " O\OCOL/')u)' u)' 'i: CO 01 (V') '<j:(V')oClO ..... N(V')CO~N N III N (V') " pf ..... " M .....' ********* ******** ****** * , 00 , 0000 0..... , 000 , pf 000000 ..... 00 OO(V')M O'<j: 000 ''It 000000 I' 00 0, 0, u:. It) o (V') 00\0 en O,O,~O,O,IO 0 ~ '<j:' L/')' 0..... 01 " 1" '<j:' CO' L/')' 1" ,.j' .....L/').....I'Nu)' 00 OIl' \0 (V') 0\ en ..... NCOO ..... '0 N (V') It) ..... ''It pf ..... :t CIO N ..... ********* ******** ****** * 0 , 0 , 00"'" L/') 10 0\L/') , 000 , ''It I 000 , 0 0 0 0 00\0....." NO\ 000 N 000 0 0 0 0 0, 0, CO, L/'), M u:. 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U Q) .- '- U - Vl....O .~ Iii ::l ~ Vl ~.~OQ)~"o CIl"OIC.....O, CI)~L.O"O~ .~'"2' e:- :QQ)Qj<t:2B ::J~..cZXO Q.,u..Ul>W...J Page 1 of 1 Tracy Hightshoe Tracy Hightshoe Friday, March 16, 20073:34 PM Andy Douglas (adouglas@avalon.net); Brian Richman (E-mail); Holly Hart (hhart2@mac.com); Jerry Anthony (E-mail);MarcyDeFrance(brandtmarcyd@netscape.net); Michael Shaw Uwjshaw1 @yahoo.com); Steve Crane (scrane@bankerstrust.com); Tom Niblock (thomas-niblock@uiowa.edu); WalkerCL04@aol.com Cc: Stephen Long; aaxeen@hacap.org; jjw_vim@hotmail.com Subject: Revised Proforma - HACAP & Builders of Hope Attachments: FY08 Proforma 3.xls From: Sent: To: Steve and I met with AI Axeen from HACAP. We reviewed how HACAP tracks expenses and revenues and made some adjustments, namely the estimated revenues for this project. Staff is comfortable with cash flow at the revised projections and the basis of the expenses, Some of the original concerns on the staff analysis remain such as 100% of the project is funded with CDBG/HOME dollars with no debt payments back to the City (applicant requests a conditional occupancy loan). Note: Applicant includes a case management fee in their proforma. Based on our understanding, HACAP bills each unit a common case management fee. Property management is an appropriate expense, however staff requests that the case management fee for supportive services be removed. A case management expense is not included in the other housing proposals. The removal of this fee would result in a higher cash flow. Attached is the revised proforma for your review. A copy will be sent in your packets if you are unable to view Excel documents. Steve spoke to Josh Weber, Builders of Hope. Josh will be reviewing their proforma and budget to determine the minimum amount of HOME funds they could accept that would keep the project viable. He will either get back to us before the 22nd or be present to answers questions on the 22nd. Please call with any questions. Thanks, Tracy 3/16/2007 ,~ -3 ~ G I -' ~ ~ <::[ <0 C[ -:r ~ ... ~ .~ CI) Q) ~ CI)'o ~ .r. ... ~ CI) Q. ~ \:J I. g>. 8 ~.: {J CI) (/) 1 ~ ~ ::l' .~ Q, 0 .~ CI)::I: ~JS E ~ 00::: 't-CO 00 ~~ o .s .~ l .S ~ ~ 1: ~ ill ~ ~ tt ~ tit I to<t ~j ~ p -:1-;:f ~ ~ ~I .... tit tit tilt 1 "" ~_. E~I is c E & 8 2 .E C ~I ci <3 o .... IX: I> I i, 0, ~I I ."I "'1 '" en IX: > a; N ~ ~. co IX: > bit! ....1 tI't ~I 'I ~I ~I I ~! "'I '" I~; I ~r i 't ,... IX: > I t><t' "" tit '" .... ID IX: > a; ti It) IX: > '" <0 l>i <0 ri '" ~ ~ IX: I> ..., C"1i ~ I I tit <<fl, .... i -,.-. g ri .., IX: >- N IX: > : '" 8 ~I '" ~ 0: > VI '0 ,c .~ rn r:: o ~ I () VI <I> C I I ,~ 1'5 Q)I ,g 15, g () U -= en <1l :J c: g: <1l a:: <I> r:: :J .... 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Page I of I Stephen Long From: MaryAnn Dennis [housing@qwestoffice.net] Sent: Monday, March 19, 200710:45 AM To: Jerry Anthony Cc: Stephen Long Subject: Funding Awards Dear Jerry: I am writing to inform you and the members of the Housing and Community Development Commission that The Housing Fellowship has recently received funding awards for two separate projects. Berry Court Limited Partnership received a reservation of Low Income Tax Credits from the Iowa Finance Authority to preserve 14 scattered site rental homes that The Housing Fellowship has owned for over ten years. The City of Iowa City has committed General Obligation Bond Financing to Berry Court Limited Partnership. The Housing Fellowship has also been awarded $139,996 from the Iowa Department of Economic Development. HOME and ADDI funds will be used for down payment and closing cost assistance and mortgage buy down for income targeted, first time home buyers as part of The Housing Fellowship's Community Land Trust Program. Sincerely, Maryann Dennis Executive Director The Housing Fellowship 3/19/2007