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HomeMy WebLinkAbout02-20-2008 Housing & Community Development Commission AGENDA HOUSING AND COMMUNITY DEVELOPMENT COMMISSION EMMA HARVAT HALL, CITY HALL WEDNESDAY, FEBRUARY 20, 2008 6:00 P.M. 1. Call Meeting to Order 2. Public Comment of Items Not on the Agenda 3. Discussion Regarding Applications for FY09 Community Development Block Grant (CDBG) and HOME Investment Partnership Program (HOME) Funding -- Question/Answer Session 4. Adjourn ,~ ! -~ = -4>> ~~ai!i:~ ~~..aal' ~- CITY OF IOWA CITY MEMORANDUM TO: FROM: DATE: RE: Housing and Community Development Commission Community Development Staff February 16, 2007 FY09 CDBG/HOME Funds Available and Breakdown by Category The City received 27 applications requesting $2,948,149 in CDBG/HOME funding. Last year the City received 20 applications requesting $2,346,185. The City expects to have available $1,688,745 in federal funds (includes FY09 entitlements plus program income) from the U.S. Department of Housing and Urban Development (HUD). Congress approved the HUD budget. Unfortunately, there was an approximate 4% cut to the CDBG entitlement and a 3% cut in the HOME entitlement from last year. Iowa City has received an approximate 25% reduction in HUD entitlement funds over the last seven years. After removing the Council approved set-asides and earmarks for housing rehabilitation ($244,417 set aside plus revolving loan fund income generated by the housing rehabilitation program), economic development ($82,890), Aid-to-Agencies ($105,000), and program administration and planning ($215,579), the City of Iowa City has approximately $1,040,859 available to allocate to FY09 project requests. Upon reviewing the FY09 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. The attached chart identifies how much in funds has been allocated to each CITY STEPS category to date compared to the targets set in CITY STEPS. Because CITY STEPS is a multi-year plan it is important thatwe 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. 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 $9,300 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 $747,549 must be allocated to HOME eligible housing activities. The total allocation for public service projects is not flexible and may not exceed $9,300. February 16, 2008 Page 2 Also, please remember that a requirement of the HOME program is that not less than 15% of the HOME allocation, at least $92,055 this upcoming fiscal year, be reserved for Community Housing Development Organizations (CHDOs). Of the FY09 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 FY09 is $30,685 (5% of the HOME entitlement). Funds allocated to CHDO operating expenses do not count towards the CHDO set-aside amount. Sources of FY09 Funds FY09 CDBG Entitlement (4% cut from last year) FY09 HOME Entitlement (3% cut from last year) FY09 Anticipated CDBG Program Income FY09 Anticipated HOME Program Income Prior Year Unexpended CDBG Funds Prior Year Unexpended HOME Funds $651,045 $613,700 $120,000 $100,000 $29,000 $175,000 TOTAL $1,688,475 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. 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. t/) a.~ wo I-Q;'ifl t/) en 00 ~~~ () ~ ~cf? o 'ifl 'ifl 0 0 -000011)0 N -T"" 'ifl ~~ ~cf? 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HOUSING AND COMMUNITY DEVELOPMENT COMMISSION FYo9 CDBG/HOME QUESTION/ANSWER SESSION EMMA HARV AT HALL, CITY HALL, IOWA CITY WEDNESDAY, FEBRUARY 20,2008 TIME AGENCY NAME CONTACT PHONE # E.MAIL HOUSING 6:10 pm Southgate Development. - Homeownership Dennis Craven 337-4195 dcraven@sgdev.net 6:20 pm The Housing Fellowship - CHDO Operating Maryann Dennis 358-9212 housing@qwestoffice.net 6:30 pm The Housing Fellowship - CHDO Pre-Dev. Loan Maryann Dennis 358-9212 housing@qwestoffice.net 6:40 pm The Housing Fellowship - Rental Maryann Dennis 358-9212 housing@qwestoffice.net 6:50 pm HACAP - Transitional Housing AI Axeen 337-5765 aaxeen@hacap.org 7:00 pm Isis Investments LLC - Rental Salome Raheim 530-4375 salome-raheim@att.net 7:10 pm Chauncey Swan LP - Rental Tracy Falcomata 338-7600 info@burnshousing.com 7:20 pm Dolphin International LLC - Homeownership Arvind Thakore 224-622-1171 arvind 1 OO_us@yahoo.com 7:30 pm ICHA - TBRA Steve Rackis 887-6065 steven-rackis@iowa-city.org 7:40 pm ICHA - Homeownership Steve Rackis 887-6065 steven-rackis@iowa-city.org or deb- briggs@iowa-citv.org BREAK PUBLIC SERVICE 8:00 pm LIFE Skills, Inc. - Transportation Gillian Fox 354-2121 gfox@lifeskills-inc.com 8:05 pm VNA - Operations Suellen Novotny 337-9686 novotnys@vnaic.org 8:10 pm Local Foods Connection - Operations Laura Dowd 338-2010 localfoodsconnection@yahoo.com 8:15 pm Shelter House- Operations (STAR program) Crissy Canganelli 338-5416, crissy@shelterhouseiowa.org X10? 8:20 pm Compeer - Operations P. Kelley & M. 338-7884, compeer@meimhc.org or Strechen X245 patricia-kellev@uiowa.edu 8:25 pm Extend the Dream Foundation - Operations Tom Walz 530-8765 thomas-walz@uiowa.edu 8:30 pm Arc of Southeast Iowa - Operations Bill Reagan 351-5017 wmreagan@iowatelecom.net 8:35 pm Free Medical Clinic - Operations Sandy Pickup 337 -9727 spickup3@mchsi.com 8:40 pm MECCA - OperationslTransportation Ron Berg 351-4357 rberg@meccaia.com BREAK PUBLIC FACILITIES 8:55 pm MECCA - Facility Rehabilitation Ron Berg 351-4357 rberg@meccaia.com 9:00 pm Dolphin International LLC - Playground Arvind Thakore 224-611-1171 arvind100_us@yahoo.com 9:05 pm Extend the Dream Foundation - Facility Rehab. Tom Walz 530-8765 thomas-walz@uiowa.edu 9:10 pm Arc of Southeast lowa- Facility Rehabilitation Bill Reagan 351-5017 wmreagan@iowatelecom.net 9:15 pm Free Medical Clinic - Building Acquisition Sandy Pickup 337-9727 spickup3@mchsi.com 9:20 pm Twain Elementary - Playground Sharon Locke 688-1165 locke.sharon@iccsd.k12.ia.us 9:25 pm NCJC - Facility Rehabilitation Brian Loring 358-0438 brian-Ioring@ncjc.org 9:30 pm DVIP - Facility Rehabilitation Kristie Doser 351-1042, dvip@avalon.net or X112 kristiedvip@southslope.net s:ldevlcommdevlcdbghomelfy09Ifeb20signupsheet.doc I ~ j -....= -II' :t~~!='t ~ ,,~, ................. CITY OF IOWA CITY FY09 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Chauncey Swan LP - Affordable Rental Housing Number Pag~ 1 Project Address Corner of College & Gilbert Street, Iowa City Activity Type Housing CITY STEPS Priority Anti-poverty plan and strategies - housing support services/facilitate increased capacity of area housing providers (page 127) CITY STEPS Goal IV B. Affordable Housing: Production of New Rental Units Achieved (Page 101) Beneficiaries NA - Pre-Development Loan Amount Requested $18,000 Repayment Terms 2 year loan at prime minus two interest rate. Applicant requests that the funds be forgiven if the project is deemed infeasible. Period of Affordability NA Percent of Project 86% (City considers L1HTC as public funds, the State of Iowa Publicly Funded considers them private funds) Leveraging City Funds $360.11 in other funds for each CDBG/HOME dollar requested Property Taxes Paid according to Iowa law for LIHTC projects I ~ I --=- -It ~~~i!='t ::: __,~ ~........ CITY OF IOWA CITY STAFF ANAL YSIS Documentation of Project Need Project Budget Discussion Project Coordination with Existing Services & other Services Available in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed The application requests funds for environmental review, site planning and site acquisition - long term lease negotiation expenses for a November 2008 L1HTC application. The proposed project will include 40 2-bedroom apartments affordable to households under 60% mfi. The final project is dependent upon environmental and site planning considerations. The application references various studies, including the 2007 Affordable Housing Analysis that demonstrates the community need for affordable rental housing. Affordable housing for families are virtually nonexistent downtown as most affordable options found in the downtown area are for elderly and persons with disabilities. The proforma and budget will change based on final design. As submitted the average cost per unit is $162,498. Applicant requests that if the project does not proceed, the funds be forgiven. Under HOME regulations, the funds must be repaid. Only certified Community Housing Development Organizations (CHDO) are granted this provision for pre-development expenses (environmental, site planning, etc.). As project costs will be incurred before determining if the project is feasible, if funded, the project must either be considered a loan or as an administrative expense under the HOME or CDBG programs. Staff will need to determine if sufficient funds are available in the administrative budget. Funds could also be sought from the City's general fund if there is sufficient Council interest. The applicant has shown an ability to work with a variety of agencies and organ izations The general partner of Chauncey Swan LP, Burns & Burns LC, has received a number of City, State of Iowa HOME and L1HTC awards. The general partner has successfully managed hundreds of thousands of dollars of HOME funded projects. Burns & Burns has experience and a successful track record with the acquisition, construction and management of affordable housing. Prior Iowa City HOME and L1HTC projects include Concord Terrace, Lexington Place, Whispering Garden and Melrose Ridge. 1. The Council has not considered a long term lease for this property. The Council must consider if they are interested in pursuing redevelopment of this parcel and what type of development. 2. The site has several environmental concerns such as flood plain issues, possible soil contamination, and the removal of the electric substation. 3. A new proforma must be submitted upon final design. 2 I ~ I t~~~'t ~ _.t'- ...,..~ CITY OF IOWA CITY FY09 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Dolphin International LLC - Affordable Homeownership Number Page 17 Project Address 2401 Highway 6, Iowa City Activity Type Housing Low - Owner-occupied housing for small and large families (31- CITY STEPS Priority 80%ami) CITY STEPS Goal IV.B. Affordable Housing - Acquisition of Existing Units Achieved Assistance to Homebuyers to Purchase Existing Housing Page 102 0-30% mfi 0% 31-50% mfi 10% Beneficiaries 51-60% mfi 10% 61-80% mfi 80% Over 80% mfi 0% Amount Requested $425,000 Repayment Terms Conditional Occupancy Loan (COL) Period of Affordability 10 years Percent of Project Difficult to determine due to questions about the proposed budget. Publicly Funded Leveraging City Funds Difficult to determine due to questions about the proposed budget. Property Taxes The homeowners will pay property taxes. I ~ 1 --= -It !~~~'! :::: ..-.~ ................ CITY OF IOWA CITY STAFF ANAL YSIS Homeownership is a strategy to help low-moderate income households gain self-sufficiency, stabilize families & neighborhoods and to build wealth. CITY STEPS encourages the use of down payment assistance for the purchase of existing housing units as a way to provide affordable housing to low-moderate income households. This project proposes to rehabilitate the interior and exterior of Lake Point Enclave (formerly known as Lakeside Apartments) and to create Documentation of homeownership opportunities through down payment assistance to Project Need households with incomes 31 - 80% (majority between 61 - 80%) of the median income. The application states that the proposed mortgage payment will be close to the current rents which are below HUD FMR figures. The recently completed Affordable Housing Market Analysis encourages redevelopment of residential areas close to employment centers and public transportation. This project is near shopping, public transportation and employment. Up to 89 units will be assisted with $5,000 to $10,000 (depending on the size and final number of renovated units) in down payment assistance. The homebuyer will work with a lender for the remainder Project Budget of the financing. The applicant is proposing down payment assistance Discussion for up to 10% of the purchase price. The applicant will be donating $12,000 in administrative services to the proiect. The applicant is proposing to partner with local organizations to Project Coordination provide homebuyer education and will require that homebuyers attend eight hours of classes for first time homebuyers. It is assumed that with Existing Services & the applicant is referring to the Homebuyer Education course that is other Services Available in the Community offered through a partnership with the Iowa City Housing Authority and the Iowa City Area Association of Realtors. The principals of the project have never worked with CDBG or HOME Applicant History or funds, however, the architect and consultant have worked with Capacity to Successfully CDBG, HOME and TIF funds. The principals of the project have Complete the Proposed experience with distressed properties and the architect and consultant Project are currently working with TIF and HOME funds to redevelop a historic building in Aurora, IL. 2 Summary of Items to be Addressed 1. 2. 3. 4. 5. 6. 7. 8. The budget appears to be incomplete, please explain project costs and sources/uses of funds. Applicant is proposing that a 0% Conditional Occupancy Loan (COL) be placed on each home for a period of 10 years. City policy states that a home buyer 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% int. Please explain why you are proposing an exception to the City policy and also explain the terms that you are proposing (will the funds be paid pack after 10 years or will the loan be forgiven after 10 years?) If a homebuyer purchases a home that was constructed prior to 1978 the home will have to be tested for lead-based paint. Please explain how the lead testing and clearance will be administered. Please describe the use of volunteers as stated on the budget page. Please explain the proposed homebuyer education courses. It is difficult to determine if the applicant is providing the mortgage or if potential homeowners will be accessing private financing. Please explain. All rehabilitation will be subject to federal labor provisions (Davis-Bacon "prevailing" wages) for the proposed work. Will the project proceed with partial funding? 3 I ~ I !~~~Ilt ::: "_,~ """',-.&a- CITY OF IOWA CITY FY09 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Hawkeye Area Community Action Program Number Transitional Housing, Page 30 Project Address Census Tracts 5,6 &13, Iowa City Activity Type Housing CITY STEPS Priority HIGH (Transitional Housing) CITY STEPS Goal Improve transitional housing programs for families. (Page 108) Achieved Beneficiaries 0-30% mfi - 100% (Presumed Benefit) Amount Requested $325,000 Repayment Terms Conditional Occupancy Loan Period of Affordability HOME regulations require 15 years, applicant proposes 20 years Percent of Project 100% Publicly Funded Leveraging City Funds $0.00 in other funds for each HOME dollar requested Properly Taxes Tax Exempt I! I --= -.t !~~!:'t ~ "'_,~ ....,...,~ CITY OF IOWA CITY STAFF ANAL YSIS Documentation of Project Need Project Budget Discussion ProjectCoordinauon with Existing Services & other Services Available in the Community Applicant History or Capacity to Successfully Complete the Proposed Project 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 61 families (71 adults and 112 children). CITY STEPS identifies transitional housing as a "high" priority and a bridge between emergency shelter and permanent housing. 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. 100% of the project is publicly funded. Based on the proforma, the project is not viable as expenses exceed revenue the first two years, even in the absence of debt service (no loan payments). Applicant 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 an additional three units? Support services provided at a HOME specific unit contribute to the HOME match requirement, but are not an eligible HOME expense and must be considered separately. Applicant, as a CHDO, can request operating expenses under CHDO Operating funds. For the past couple of years, applicant has purchased newer condominium units. Applicant states the amount under misc. operating expenses includes condo association dues. What is paid through condo association dues varies based on each association (taxes, insurance, maintenance, etc.). Once sites are identified, a new proforma must be submitted that is site specific to evaluate if there are funds available for debt service. Case management provides coordination and referral to existing services to avoid duplication and streamline services. MECCA offers 12 transitional housing units to families recovering from substance abuse. There is no other transitional housing providers in Iowa City that serve families. 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 30 years. First payment was due July 1,2006. Applicant requested that the financing terms change to a Conditional Occupancy Loan. Staff must review this request and perform a site specific review of the units to determine if debt service is feasible. 2 Summary of Items to be Addressed 1) Applicant is proposing a conditional occupancy loan to acquire three properties. City policy states that non-profit developers are eligible for up to a 30-year amortized loan at 0% interest. Please explain why you are proposing an exception to the City policy. 2) Before recommending a conditional occupancy loan, staff must review the proforma based on the specific units purchased. A new proforma must be submitted upon property selection. 3) Have other possible funding sources been researched such as State HOME funds as this project is 100% funded by City HOME dollars? 4) If units are acquired that were built before1978 there will be additional expenses related to lead based paint. 5) Davis Bacon or "prevailing wages" will apply if necessary to bring the acquired unit up to building code. 3 I ~ I -....= -It ~~~~'t ~ -.., ...,.,~ CITY OF IOWA CITY FY09 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Iowa City Housing Authority - Affordable Homeownership Number Page 46 Project Address Citywide Activity Type Housing CITY STEPS Priority low - Owner-occupied housing for small and large families CITY STEPS Goal IV.B. Affordable Housing - Acquisition of Existing Units Achieved Assistance to Homebuyers to Purchase Existing Housing Page 102 0-30% mfi 0% 31-50% mfi 14% Beneficiaries 51-60% mfi 57% 61-80% mfi 29% Over 80% mfi 0% Amount Requested $330,000 Conditional Occupancy loan (GOl) Repayment Terms If unit remains owner-occupied for five years, the lien will be released and the loan will be forgiven. If the unit is sold prior to five vears, the loan will be paid back. Period of Affordability 5 years Percent of Project 9.8% Publicly Funded Leveraging City Funds $ 8.78 in other funds for each local HOME dollar requested Properly Taxes The homeowners will pay property taxes. I! I --= -It ~~~~'r :::: "_,~ ...,...,.,........ CITY OF IOWA CITY STAFF ANAL YSIS Documentation of Project Need Project Budget Discussion Project Coordination with Existing Services & other Services Available in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed Homeownership is a strategy to help low-moderate income households gain self-sufficiency, stabilize families & neighborhoods and to build wealth. CITY STEPS encourages the use of down payment assistance for the purchase of existing housing units as a way to provide affordable housing to low- moderate income households. The project budget shows that 35 units will be assisted with an average of $8,500 in down payment assistance (maximum of $10,000) and the homebuyer will work with a lender for the remainder of the financing. The applicant is proposing down payment assistance for up to 10% of the purchase price. The applicant is requesting that about 9% or $30,000 be used for project delivery, so $300,000 will be available to potential homebuyers and $30,000 will be used for administration costs. Applicant has a significant amount of volunteer hours committed through its successful Homeownership Education Class. 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. 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. 1. Applicant is proposing that a 0% Conditional Occupancy Loan (COL) be placed on each home for a period of 5 years. City policy states that a home buyer 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. If a home buyer purchases a home that was constructed prior to 1978 the home will have to be tested for lead-based paint. Please explain how ICHA will administer the lead testing and subsequent clearance. Will the project proceed with partial funding? If the homebuyer remains in the home for more than five years, the lien is released and no funds are returned to the program. Please explain. Homebuvers must sian a recapture aareement approved bv the City. 2. 2. 3. 4. 2 I ~ 1 --= -II' f~~;!='t ~ ,,~, .....,............ CITY OF IOWA CITY FY09 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Iowa City Housing Authority - Tenant Based Rental Assistance Number (TBRA) Page 55 Project Address Citywide Activity Type Housing High - Small Related Renter\Large Related Renter- cost burdened> 30% with incomes at or below 30% of the median income CITY STEPS Priority Medium - Elderly Related Renter - cost burdened> 30% with incomes at or below 30% of the median income CITY STEPS Goal IV B. Affordable Housing/Rental Assistance (page 101) Achieved Beneficiaries 0-30% mfi 100% Amount Requested $220,800 Repayment Terms Grant Period of Affordability NA Percent of Project 64% Publicly Funded Leveraging City Funds , $ 0.57 in other funds for each local HOME dollar requested Property Taxes Indirectly, private owners/landlords providing rental units pay property taxes. I ~ I --= -... !~ji~1lt ::: -.., .............. CITY OF IOWA CITY STAFF ANAL YSIS Documentation of Project Need Project Budget Discussion Project Coordination with Existing Services & other Services Available in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed CITY STEPS recognizes that rental assistance is the most often cited and important need identified by low-income persons due to the high market rents in Iowa City. As of 1/16/08, the ICHA reports 841 families on the Housing Choice Voucher (HCV) waiting list. Of which, 14 are elderly families, 146 are families with disabilities and 598 are families with children. The proposed project will assist 50 low-income elderly and disabled households along with households with children under 18 (25 households per year over a 2-year period) with direct housing assistance to landlords on behalf of eligible participants. TBRA will mitigate the impact of Federal budget reductions in the HCV program and allow the ICHA to provide immediate assistance and maintain assistance to low income families. In the proposed project, participants pay no more than 30% of their adjusted gross income towards rent. The ICHA anticipates that they will subsidize approximately 64% of the contract rent. The HUD calculated per unit cost for the ICHA is $368/month. The tenant is responsible, on average, for approximately 36% the contract rent to private landlords scattered throughout Iowa City. Families participating in the proposed project will remain on the HCV and Public Housing waiting lists. When they reach the top of either list, the ICHA will process their applications and transition the families into the HCV or Public Housing program. The ICHA received and successfully administered $159,564 in FY06 TBRA funds. ICHA also received $200,000 in TBRA funds in FY07 and that project is currently active with $179,823 remaining. It also maintains public housing units and administers the Housing Choice Voucher Program. The ICHA has received HUD's High Performance designation status for 10 consecutive years. 1. 2. Discuss possibility of partial funding if necessary. HOME rules allow the applicant to use TBRA outside of Iowa City, what limitations would applicant set regarding portability and how many clients would be served outside of Iowa City? Will applicant have a minimum tenant rent level? Discuss availability of accessible rental units. 3. 4. 2 I ~ I -...= -It ~~~~!:'t ~ -.., ....,............. CITY OF IOWA CITY FY09 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Isis Investments, LLC - Affordable Rental Housing Number Page 66 Project Address Citywide, Iowa City Activity Type Housing CITY STEPS Priority High - large related - (0-30% of MI) CITY STEPS Goal IV B. Affordable Housing: Production of New Rental Units Achieved (Page 101) Beneficiaries 0-30% mfi - 60% 31-50% mfi - 40% Amount Requested $235,000 $186,000 30-year loan with 0% interest, 15- year deferment; $49,000 Repayment Terms grant Period of Affordabi/ity HOME regulations require 15 years, applicant proposes 15 years Percent of Project 35% Publicly Funded Leveraging City Funds $1.84 in other funds for each HOME dollar requested Property Taxes Yes. The applicant estimates annual tax payments of $9,500. I ~ I !:~~~'t ~ --., ....,."......I.L. CITY OF IOWA CITY Documentation of Project Need Project Budget Discussion , STAFF ANAL YSIS Project Coordination with Existing Services & other Services Available in the Community The applicant proposes to acquire and rehabilitate five - three bedroom homes to rent to low income households. Households will be allowed to spread their security deposit and utility deposits over several months to provide greater access to affordable units. Applicant references several studies documenting the need for additional affordable housing units in Iowa City. The project addresses Iowa City's current and projected demand for affordable housing for low-income households, removes the barriers for security and utility deposits and supports families in developing skills to manage and maintain a single family home. It is the goal of CITY STEPS to acquire and rehabilitate 20 affordable rental units annually. Creating affordable housing from existing stock is cost-effective. Applicant will offer the opportunity for the household to purchase the home after being a tenant for at least 12 months. Applicant requests funds for the downpayment of five single family homes. Applicant will secure private mortgages for approx. 65% of the acquisition price. The proposed budget shows an average cost of $133,326 per unit. Debt coverage ratio is 1.12-1.26 through years 2-10 (No HOME debt included). Proforma Concerns: Year one includes the gross rental income for five units ($994/month per unit), however only identifies the debt service for two properties. Staff analysis looked at Years 2-20. Applicant requests a deferred payment loan until year 15; however no additional debt service is included in Years 15-20. The proforma did not budget for management fees and reserves. The applicant may forego management fees; however staff recommends that reserves be funded for long-term viability. Applicant estimated only $4,000 in rehabilitation costs per home. The figure may be low depending on what the home needs and if lead stabilization/clearance testing is required. The applicant will work with the Iowa City Housing Authority to assist tenants with asset-building and homeownership. 2 Applicant has implemented a similar project with private funds and Applicant History or currently owns and manages four properties as affordable rental Capacity to Successfully homes. The owner has administrative and financial management Complete the Proposed experience. As the School of Social Work Director she was Project responsible for 30 faculty and staff and a general operating budget of over three million dollars of grants and contracts. 1) Applicant is proposing a deferred payment loan with 0% interest and a partial grant to acquire five properties. City policy states that for-profit developers are eligible for up to a 3D-year amortized loan at prime rate minus two points. Please explain why you are proposing an exception to the City policy. 2) What expenses are included in misc. operating expenses? 3) Must households have a Section 8 Voucher to rent the units and Summary of Items for the project to be viable? to be Addressed 4) Will applicant be able to find homes in the price range sought in areas encouraged by Council for affordable housing? 5) If a tenant purchases the home within 15 years, a resale agreement approved by the City's Community Development Dept. must be signed by the proposed buyer. 6) Depending on HCDC's award, a new proforma will be needed to determine how much debt the project can support and level of subsidy (grant) necessary. 3 !! I -....= -.. ~~~;!:'t ~ ".I~ ......,-AL. CITY OF IOWA CITY FY09 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Southgate Development Services LLC - Number Affordable Homeownership Page 83 Project Address 1958 Broadway Street, Iowa City Activity Type Housing CITY STEPS Priority Low - Owner-occupied housing for small and large families (31-50% ami) Medium - Owner-occupied housing cost burdened >30% (0-30% ami) CITY STEPS Goal IV,B. Affordable Housing - Acquisition of Existing Units Achieved Assistance to Homebuyers to Purchase Existing Housing Page 102 0-30% mfi 12% 31-50% mfi 75% Beneficiaries 51-60% mfi 13% 61-80% mfi 0% Over 80% mfi 0% Amount Requested $200,000 Repayment Terms Conditional Occupancy Loan (COL) Period of Affordability 5 - 10 years Percent of Project 10% Publicly Funded Leveraging City Funds $10,00 in other funds for each local HOME/CDBG dollar requested Property Taxes The homeowners will pay property taxes. I ~ I -....= -It ~~~;!::'t ~ _!!L~ .......-I.L. CITY OF IOWA CITY STAFF ANAL YSIS Documentation of Project Need Project Budget Discussion Project Coordination with Existing Services & other Services Available in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed Homeownership is a strategy to help low-moderate income households gain self- sufficiency, stabilize families & neighborhoods and to build wealth. CITY STEPS encourages the use of downpayment assistance for the purchase of existing housing units as a way to provide affordable housing to low-moderate income households. This project proposes to rehabilitate the interior and exterior of the Broadway Condominiums and to create homeownership opportunities through down payment assistance to households with incomes 30 - 60% (majority between 31 - 50%) of the median income. In most cases, the mortgage payment will be either below or very close to HUD FMR figures. The recently completed Affordable Housing Market Analysis encourages redevelopment of residential areas close to employment centers and public transportation. This project is near shopping, public transportation, child care and employment. Up to 36 units will be assisted with $5,000 to $10,000 (depending on the size and final number of renovated units) in downpayment assistance. The home buyer will work with a lender for the remainder of the financing. The applicant is proposing downpayment assistance for up to 10% of the purchase price. The applicant will be donating over $60,000 in brokerage, marketing and administrative services to the proiect. The applicant is proposing to partner with local non-profits and schools to provide volunteer labor for the interior renovations which will reduce the cost to the homebuyers and provide training for students and volunteers. Southgate Development Services LLC is a local real estate development, management and construction company with many years of experience in the Iowa City area. Southgate is also experienced with administering projects with Davis-Bacon wage rates. 1. Applicant is proposing that a 0% loan be placed on each condo unit. 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 and the type of loan you are proposing. (COL, declining balance, etc...) Will the funds recycle back to the City when a homeowner sells or if after the affordability period, will the lien be released and then the loan becomes a grant? The proposed project site was constructed prior to 1978 so the units will have to be tested for lead-based paint. Please explain how the lead testing and clearance will be administered. All rehabilitation will be subject to federal labor provisions (Davis Bacon "prevailing" wages) for the proposed work. 2 2. 3. I ~ I --= -lit f~~~'t ~ ...!!.!.-'- ........~ CITY OF IOWA CITY FY09 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page The Housing Fellowship, Affordable Rental Housing Number Page 116 Project Address Citywide, Iowa City Activity Type Housing CITY STEPS Priority High - Small related - cost burdened >30% (0-30% of MI) High - Small related - cost burdened >50% (31-50% of MI) CITY STEPS Goal IV B. Affordable Housing: Production of New Rental Units Achieved (Page 101) Beneficiaries 31-50% mfi - 100% (75% of THF tenants have incomes between 0- 30%) Amount Requested $499,750 Repayment Terms 30 Year loan at 0% interest Period of Affordability HOME regulations require 20 years, applicant proposes 30 years Percent of Project 96% (City considers L1HTC as public funds, the State of Iowa Publicly Funded considers them private funds) Leveraging City Funds $2.60 in other funds for each HOME dollar requested Property Taxes Paid according to Iowa law for L1HTC projects. The applicant estimates tax payments of $7,909 to $13,869 per year. I! I ~~~~'r ~ --., ................ CITY OF IOWA CITY STAFF ANAL YSIS Documentation of Project Need Project Budget Discussion Project Coordination with Existing Services & other Services A vai/able in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed The application references various studies, including the Maxfield Housing Market Analysis and cm STEPS plan. Both of these documents demonstrate the community need for affordable rental housing. The Iowa City Housing Authority has over a year waiting list for those meeting the City's residency requirements for Section 8 assistance. It is the goal of cm STEPS to construct 20 new affordable rental units annually. 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 (UHTC) in order to construct 10 two-bedroom homes at a rent affordable to those at or below 50% mfi. Approximately 54% of the project is publicly funded, 96% if you include the tax credits. The proposed budget shows an average $179,975 per unit cost. Debt coverage ratio is 1.21-1.31 through years 1-10. The applicant has indicated that they will apply for UHTCs and State HOME funds in November 2008. The Housing Fellowship will receive a developer fee of $150,000 for the $1,799,750 project (8% 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. The second page of the proforma is not complete as is does not include tax, UHTC, depreciation, and reserve calculations to accurately compute the return on investment. 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. The THF has applied and received L1HTC for a rental housing project (preservation) and is involved in the management of three separate limited partnerships. Applicant has successfully managed hundreds of thousands of dollars of CDBG and HOME funded projects. 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). In FY06 THF was allocated $175,000 out of an $812,404 request. The project was not able to proceed after two purchase offers were declined and THF was not able to obtain the necessary financing to make the original project feasible. The City and THF terminated the agreement for convenience. 1. What happens if the project does not receive UHTCs and\or State HOME funds? 2. Will the applicant be able to purchase 10 lots by November 2008 to apply for LIHTCs? In addition to these lots, applicant is currently searching for 6 lots under the FY08 HOME award to submit a combined UHTC application. 3. What expenses are included in misc. operating expenses? 2 I ~ 1 --= -... ~~~~'t :::: -.., ....,...,.,-Aa-. CITY OF IOWA CITY FY09 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page The Housing Fellowship, CHDO Operating Expenses Number Page 95 Project Address 322 E. 2nd. Street, Iowa City Activity Type Housing CITY STEPS Priority High - Other public services CITY STEPS Goal Anti-poverty plan and strategies - housing support Achieved services/facilitate increased capacity of area housing providers (page 127) Beneficiaries Agency wide. Owns and manages 132 affordable rental units. Amount Requested $50,000 (Due to HOME requirements, allocation can't exceed 5% of HOME allocation or $30,685) Repayment Terms Grant Period of Affordability NA Percent of Project 16% of the 2008 calendar year administrative expense budget. Publicly Funded Leveraging City Funds $5.30 in other funds for each HOME dollar requested Property Taxes Tax Exempt I ~ I --= -lit !~~i!!=1lt ~ "-Im~ ~...I.L. CITY OF IOWA CITY STAFF ANAL YSIS Documentation of Project Need Project Budget Discussion Project Coordination with Existing Services & other Services Available in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed The Housing Fellowship (THF) has been in operation since 1990. THF now owns and manages 132 affordable rental units occupied by low-income households, developed and sold 14 owner-occupied homes into a land trust to ensure permanent affordability and administers a revolving loan fund for low-income renters to pay for security deposits. 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. THF currently has five full time employees. THF has experienced cash flow problems over the last couple of years. The CHDO funds requested will help THF achieve financial stability, provide adequate replacemenUrepair reserves and prevent further sales of THF rental units. The 2007 Affordable Housing Market Analysis encourages the City to increase the capacity of non-profit housing providers that develop affordable housing. The project is an operational grant allowed under the HOME program. The HOME program caps CHDO operating expense to 5% of the HOME allocation or $30,685. 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; however any CDBG funding provided would be subject to the CDBG cap on public services. 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 has successfully managed hundreds of thousands of dollars of CDBG and HOME funded projects. 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). In FY06 THF was allocated $175,000 out of an $812,404 request. The project was not able to proceed after two purchase offers were declined and THF was not able to obtain the necessary financing to make the original project feasible. The City and THF terminated the agreement for convenience. 1. THF received CHDO operating funds last year. What is the plan to become financially stable in subsequent years? 2. What will happen if funding is not approved for this position? 2 I ~ 1 -....= -III' :t~';:!:'t ~ _-L' .....,-M- CITY OF IOWA CITY FY09 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page The Housing Fellowship, CHDO Pre-Development Loan Number Page 105 Project Address 322 E. 2nd Street, Iowa City Activity Type Housing Anti-poverty plan and strategies - housing support CITY STEPS Priority services/facilitate increased capacity of area housing providers (page 127) CITY STEPS Goal IV B. Affordable Housing: Production of New Rental Units Achieved (Page 101) Beneficiaries NA - Pre-Development Loan Amount Requested $15,000 Loan at 0% interest to be repaid when applicant obtains Repayment Terms construction financing. The funds are waived if the project is deemed infeasible. Period of Affordability HOME regulations require 20 years, applicant proposes 30 years Percent of Project 23% Publicly Funded Leveraging City Funds $3.43 in other funds for each HOME dollar requested Property Taxes Paid according to Iowa law for LIHTC projects I! 1 --= -... ~~~~'t ~ -.., ~...I.L. CITY OF IOWA CITY STAFF ANAL YSIS Documentation of Project Need Project Budget Discussion Project Coordination with Existing Services & other Services Available in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed The application requests funds for predevelopment expenses (architect, appraisal, L1HTC fees, market study, consultant and environmental costs) for a November 2008 L1HTC application that will create up to 20 affordable rental homes. Project specific pre- development assistance is intended to assure that CHDOs have access to funds for up-front, eligible project expenditures. The preparation of a L1HTC application is time consuming and expensive and L1HTC projects often have multiple layers of subsidized financing. Applicant has limited cash flow to explore the feasibility of this project. The pre-development loan will remove this barrier and allow for a well designed, financially feasible project. The 2007 Affordable Housing Market Analysis encourages the City to increase the capacity of non-profit housing provides with access to pre-development assistance. 23% of the project is publicly funded. 77% of the pre-development costs will be paid through the tax credit syndicator. Under HOME regulations, if the project is deemed unfeasible the pre-development loan may be waived for CHDOs only. The purpose of this provision is to provide CHDOs an opportunity to identify and investigate possible projects. If the project is unable to proceed for reasons that are beyond the control of the CHDO, the CHDO is not financially burdened by exploring the project's feasibility. To be eligible for a pre-development loan, the funds must be project specific and must receive HOME funds for development. 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. The THF has applied and received L1HTC for two prior rental housing projects. Applicant has successfully managed hundreds of thousands of dollars of CDBG and HOME funded projects. 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). 1. Will the applicant be able to purchase 10 lots by November 2008 to apply for L1HTCs? In addition to these lots, applicant is currently searching for 6 lots under the FY08 HOME award to submit a combined 2008 L1HTC application. 2 I ~ I --= -It f~~!:'t ~ _-L' .......,-..a.a... CITY OF IOWA CITY FY09 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page The Arc of Southeast Iowa - Supported Employment (pg. 207) Number Project Address 2620 Muscatine Ave. Iowa City, IA 52240 Activity Type Public Service CITY STEPS Priority High - Employment Training CITY STEPS Goal Facilitate supported employment services for persons with special Achieved needs. (pg. 124) Beneficiaries 0-31%MFI 100% Amount Requested $2,500 Repayment Terms Grant Period of Affordability NA Percent of Project 60.9% Publicly Funded Leveraging City Funds $ .64 in other funds for each CDBG dollar requested Property Taxes NA I ~ I f~~~~'t :::: ,,~, .....,.., ...AL. CITY OF IOWA CITY STAFF ANAL YSIS Documentation of Application utilizes several different funding sources to provide Project Need supported employment. Their request is for individuals who do not qualify for any of available funding streams. Project Budget The total public (CDBG) cost per person is $416.66. Discussion Project Coordination The Arc works with a number of disability service providers in the with Existing Services community. An example is if they have a job opportunity but none of & other Services their clients match, they share information with Goodwill Industries Available in the who could refer a client for the job. Community Applicant History or Capacity to The Arc has provided supported employment to people with Successfully disabilities for over 20 years. Complete the Proposed Project Summary of Items 1) Other sources of funding (pg 209) did not indicate the type or status. to be Addressed 2) What source of funding is available for ongoing support? I ~ I --= -..~ ~~ji!:~ ~-~, .....,...,......... CITY OF IOWA CITY FY09 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Compeer of Johnson County (pg. 216) Number Project Address 507 E College St, Iowa City 52240 Activity Type Public Services CITY STEPS Priority High - Health Services CITY STEPS Goal Provision of Health Services: Continue support of health, dental and Achieved HIV/AIDS Services (pg. 115) o -30% MFI 83.3% Beneficiaries 31 -59% MFI 8.3% 51 - 80 % MFI 8.3% Amount Requested $3,000 Repayment Terms Grant Period of Affordability NA Percent of Project 22% Publicly Funded I Leveraging City Funds $6.88 for each CDBG dollar requested Property Taxes NA I ~ I !~~~'t ~~"_I' ..... -...loa- CITY OF IOWA CITY STAFF ANAL YSIS Johnson County Mental Health/Developmental Disabilities Unit Needs Documentation of Assessment (2003) ranked opportunities for socialization at # 8 (out Project Need of 12 priority needs). In 2001 Compeer Advisory Board conducted survey with 35 out of 42 respondents stating they desired a community friend. Project Budget Applicant provides $6.88 in other funds for every CDBG dollar Discussion requested. ProjectCoordinauon Location at the Community Mental Health Center (donated space) with Existing Services & other Services which is good for consumers as they usually are familiar with the Available in the setting. Utilizes space at the Rec Center and local churches for board Community meetings, social activities and fundraising. Applicant History or Capacity to Applicant received CDBG funding in FY 07. Staff had some difficulty Successfully Complete the getting complete information (e.g. income verification). Proposed Project 1) Average length of match? Summary of Items 2) How does this Compeer group compare to others re: budget, staff and number of matches? to be Addressed 3) Previously there has been director turnover. How does this affect the program? I ~ I !~~~'t: ~ -~, ....., ......... CITY OF IOWA CITY FY09 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Extend the Dream Foundation (pg. 223) Number Financial Technical Assistance Project Address 401 S. Gilbert St. Iowa City, IA Activity Type Public Service CITY STEPS Priority Medium - Services to Persons with Disabilities High - Micro-Businesses CITY STEPS Goal Provide Employment Training and Education (pg. 122) Achieved Beneficiaries o - 30% MFI 50% 51 - 80% MFI 3% 31 - 50% MFI 41% 81 - 100% MFI 6% Amount Requested $1,500 Repayment Terms Grant Period of Affordability NA Percent of Project 10% Publicly Funded Leveraging City Funds $9.00 in other resources for each CDBG dollar requested. Property Taxes Tax exempt I ~ j ~~~~'t ~ "!!L~ ......., -AIL. CITY OF IOWA CITY STAFF ANAL YSIS Applicant started Uptown Bill's Small Mall in 2001 as a micro- enterprise incubator for low income person with disabilities. Applicant now has nine businesses in three locations. During this time the Documentation of applicant has had various help with financial management and Project Need recordkeeping functions, however the organization has very limited, if any, paid staff and is managed by a full-time volunteer director. Applicant requests funds to purchase financial management services (bookkeeping, accounting and tax assistance). Project Budget The majority of the project budget, $12,000, is donated volunteer time Discussion from the executive director. According to information provided, he is providing between 9 and 10 hours per week to financial management. Project Coordination Extend the Dream has been working with several community partners with Existing Services through referrals for micro-enterprise or e-commerce training and & other Services hosting meeting spaces for various non-profit organizations. EDF Available in the works with LIFE Skills, Systems Unlimited, MECCA, CMHC, Elder Community Services and STAR homeless outreach. Goodwill also provides employment training to adults with disabilities Applicant has received CDBG and HOME funds in the past for various projects. During prior monitoring visits, various items were noticed that were not in compliance with HUD requirements. The Applicant History or most important item being that EDF must have a financial system that Capacity to provides control and accountability over funds and assets, identifies Successfully the source and application of federal funds, provides source Complete the documentation, has basic accounting records, and ensures an Proposed Project 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 standards. 1) How many hours and services for $3,000? Summary of Items 2) What is the plan for long-term financial sustainability and long-term to be Addressed financial management? I ~ j --= -..~ :f~~;!:~ ~ ..-~ .....,~ CITY OF IOWA CITY FY09 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page IC Free Medical Clinic (FMC) - Pharmacy Assistance Program Number (pg. 233) Project Address 2440 Towncrest Dr. Iowa City Activity Type Public Service CITY STEPS Priority High - Health Services CITY STEPS Goal Provision of Health Services: Continue support of health, dental, and Achieved HIV/AIDS services. (pg 115) Beneficiaries 0-31% MFI 98.8% 31 - 50 % MFI 1.1% Amount Requested $10,000 Repayment Terms Grant Period of Affordability NA Percent of Project 2% Publicly Funded Leveraging City Funds $47.32 in other funds for each CDBG dollar requested Property Taxes Tax exempt I ~ j --= -It !~~~~'t ~ -.., """""',....Ia-. CITY OF IOWA CITY STAFF ANAL YSIS In FY07, the Free Medical Clinic had 5,944 patient visits for 2,516 individuals. 1,905 or 32% of the, visits were for chronic ailments such as diabetes, hypertension, asthma and depression. FMC submits applications to drug assistance programs to treat these conditions for approximately 125 patients per month (average patient is on 3 - 4 medications).FMC requests funding for a pharmacy technician to help Documentation of provide access to prescription medications for patients with chronic Project Need illness. 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 FY07, FMC provided nearly 8,000 prescriptions to patients. Without this service, FMC states their clients would go untreated, show up in local emergency rooms, and would be unable to maintain emplovment or manaqe health complications. Applicant provides $47.32 in other funds/resources for every CDBG dollar requested. The total public (CDBG) cost per person is $33.33. Project leverages $424,000 in donated prescription medications in Project Budget FY07. Volunteer pharmacists fill the prescriptions and dispense the Discussion medication at a value of $17,500 annually. The applicant received CDBG funds for operational expenses in FY01, FY03, FY04, FY05, FY06, FY07, and FY08. Project Coordination The Free Medical Clinic has a long history of working with a variety of with Existing Services agencies and organizations in Iowa City, such as Shelter House, & other Services Available in the DVIP, U of I Hospital and Clinics, U of I Dental School, MECCA, Community STAR and many private health care professionals. Applicant History or The Free Medical Clinic has successfully administered CDBG funds Capacity to in previous years. Additionally, the clinic has a 30 plus year history of Successfully operating the clinic and overseeing renovations funded with grants Complete the Proposed Project and donation. Summary of Items 1) How will applicant locate funds for operational costs in the future? to be Addressed 2) Discuss implications of partial funding. I ~ I --= -It ~~~!:'t =: ..~~ ......,-..&a- CITY OF IOWA CITY FY09 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page LIFE Skills Inc. - Evening Club Transportation (pg. 238) Number Project Address 403 Hwy 1 West, Iowa City, IA 52246 (Evening Club - 300 block of E. College) Activity Type Public Service CITY STEPS Priority High-Transportation Services Medium-Services to Persons with Disabilities CITY STEPS Goal Improve access to transportation (pg 117) Achieved Provision of Training in Life skills (pg 118) Beneficiaries 0- 31 % MFI 100% Amount Requested $4,336. Repayment Terms Grant Period of Affordability NA Percent of Project 29% Publicly Funded Leveraging City Funds $2.43 in other funds for each CDBG dollar requested. Property Taxes NA I ~ I --= -.. !~~~;!:'t ~ "_,~ ....-.,.......- CITY OF IOWA CITY Documentation of Project Need Project Budget Discussion ProjectCoordinaffon with Existing Services & other Services Available in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed STAFF ANAL YSIS LIFE Skills provides an evening club in the downtown area of Iowa City that provides a safe and welcoming place for persons with mental illness to socialize and participate in group activities. The need for evening/weekend social/recreational activities for persons with mental illness was identified in the 1996 survey as #1 and in 2003, it was ranked # 6 (Johnson County MH/DD Services). Applicant provides $2.43 in other funds for every CDBG dollar requested. LIFE Skills' Evening Club works with other community providers (Successful Living, Hillcrest, and Community Mental Health Center) who provide support services to individuals with mental illness. LIFE Skills has managed local, state, and federal funding for 19 years with good reviews from funders. Yearly independent audit is done. 1) What is daily average attendance and what is the number of increased clients participating (anticipated 33% increase - pg 243)? 2)Conflicting Mileage Estimate - 12,388.5 (pg. 243) and 2,478 (pg. 245)? For the 12,388.5 estimate that equals 35 miles per each day (354 days per year) the evening club is open. 3)Question 11 needs to be answered. 4)Question 12 - will all 37 individuals use transportation? % of Iowa City residents? 99 % That leaves a 1/3 of a person. 5)Discuss implications of partial fundinq. I ~ 1 --= -" !~~~'t ~ --~, ......~ CITY OF IOWA CITY FY09 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Local Foods Connection (pg. 249) Number Executive Director's Salary Project Address PO Box 2821, Iowa City . Activity Type Public Service CITY STEPS Priority High - Health Services (medical, dental, nutrition, preventive care) CITY STEPS Goal Support food and nutrition services for low income residents. (pg. Achieved 115) 0-31%MFI 93% Beneficiaries 31 - 50% MFI 5.1% 51 - 80% MFI 1.9% Amount Requested $8,000 Repayment Terms Grant Period of Affordability NA Percent of Project 32% Publicly Funded Leveraging City Funds $2.12 in other resources for each CDBG dollar requested. Property Taxes NA I ~ j !~~!:tt ~ -..,- ........,:.;.. CITY OF IOWA CITY STAFF ANAL YSIS Local Foods Connection was formed in 1999 to purchase fresh, organic produce, meat products and baker items from local small family farmers and donate these goods to low-moderate income households. As part of their mission the organization also provides Documentation of clients with nutritional education. CITY STEPS lists Health Services Project Need 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 2007, the organization served 20 Iowa City households (approximately 40 persons) and six local human services agencies and raised $26,000 in donations. Project Budget The Director will donate a two-thirds position to continue and foster Discussion organizational growth. The value of the donated labor is estimated at $16,960. Project Coordination The applicant state it collaborates with and receives referrals from the with Existing Services Crisis Center Food Bank to assist individuals with special nutritional & other Services needs. IN FY 09, applicant will take referrals from the Arc of Available in the Southeast Iowa, Hope United Methodist Church, Crisis Center, Community Shelter House/STAR and the UIHC Lions Club. Applicant History or Applicant was selected by the New Pioneer Co-op to be the recipient Capacity to Successfully charity for it's "Donate Your Dividend Check" program. In 2007, they Complete the received $15,000 from 1200 members. The applicant has received Proposed Project funding from several organizations. 1) Discuss how agency or household shares work. How much food is involved in one share and how long does the household receive Summary of Items services? 2) The organization provides nutrition education. Who provides this to be Addressed service and what are their qualifications? 3) Discuss plan for long-term financial sustainability. 4) Discuss implications of partial fundinQ. I ~ I ~~~~'t ~ -.., ......,......... CITY OF IOWA CITY FY09 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page MECCA IICARE (pg. 260) Number Project Address 438 Southgate, Iowa City, IA 52240 Activity Type Public Service CITY STEPS Priority High - Provision of Health Services High - Transportation CITY STEPS Goal Continue support of health, dental, and HIV/AIDS services. (pg. 115) Achieved Improve access to transportation (pg. 117) Beneficiaries o - 80% MFI 100% Amount Requested $5,600 Repayment Terms Grant Period of Affordability NA Percent of Project 85% Publicly Funded Leveraging City Funds $ .18 in other funds for each CDBG dollar requested. Property Taxes Tax Exempt I ~ j .::;~=_...... ~~~:~!:'"!. ~ ....!...'- .....~ CITY OF IOWA CITY STAFF ANAL YSIS Support groups offer a facilitated environment for HIV/AIDS clients to Documentation of find peer support and take advantage of ICARE resources. Project Need Transportation assistance is key in accessing resources (UIHC, grocery shopping). Project Budget CDBG funds would be used to fund new weekly support group Discussion activities and transportation assistance. Project Coordination with Existing Services ICARE is the community provider of HIV/AIDS services. In assisting & other Services their clients, they interact with health care providers, landlords, and Available in the community agencies (e.g. Crisis Center for food). Community Applicant History or Capacity to MECCA/I CARE has received CDBG funding for several projects and Successfully Complete the has been successful in completion of them. Proposed Project Summary of Items 1) pg. 264 - question 12 Client population states that only 31 % are residents of Iowa City (13/42). Does the request reflect 1/3 of the to be Addressed cost for support groups? 2 I ~ 1 -....= -.t ~~~~;!:'t :::: ..~~ .....,..,---..... CITY OF IOWA CITY FY09 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Shelter House - Outreach Services Coordination ICash Match Number (pg. 267) Project Address 331 N. Gilbert, Iowa City Activity Type Public Service CITY STEPS Priority High - Homeless Needs CITY STEPS Goal Expanding staff and capabilities within the existing system to provide Achieved improved service and expanding available services. (pg. 108) Beneficiaries Presumed Benefit (Homeless) Amount Requested $7,500. Repayment Terms Grant Period of Affordability NA Percent of Project 81% Publicly Funded Leveraging City Funds $59.44 in other funds for each CDBG dollar requested. Property Taxes Tax exempt I ~ I !~~~'t ~ ..-.~ ......~ CITY OF IOWA CITY STAFF ANAL YSIS Documentation of Project Need Project Budget Discussion Project Coordination with Existing Services & other Services Available in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed Shelter House is proposing case management/outreach services to an estimated 450 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 cash match to leverage $448,000 in federal funds. The primary service activity of the program is Employment Assistance to persons who are homeless. All of the CDBG funds requested are targeted for operational expenses (salaries) for outreach and case management functions. Volunteers are anticipated to provide 750 hours of general administrative assistance to the proposed project for a value of $7,500. Referrals to local human service organizations are essential to the success of this 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. Shelter House has been successful in completing a number of similar public service and public facility CDBG projects. 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 for FY 09? 2) How many of the 450 clients identified in the application will participate in STAR? 3) The program goals indicate percentages: please provide number of individuals for the most recent annual time period. 4) This would be the eighth year of funding for this activity. What is STAR's long-term plan for generating local cash match? I ~ 1 --= -It ~~~~~'t :::: ,,~, ........,---..... CITY OF IOWA CITY FY09 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Visiting Nurse Association of Johnson County [VNA] (pg. 278) Number Project Address 2943 Sierra Court, Iowa City Activity Type Public Service CITY STEPS Priority High Health Services CITY STEPS Goal Continue support of health, dental and HIV/AIDS services (pg. 115) Achieved Beneficiaries o - 30% MFI 93.3% 31 - 50% MFI 6.6% Amount Requested $5,000 Repayment Terms Grant Period of Affordability NA Percent of Project 16% Publicly Funded Leveraging City Funds $5.12 in other funds/resources for each CDBG dollar requested Property Taxes Tax exempt I ~ j --= -.. !~~l!='t ::: ,,~, "'-",-Aa.... CITY OF IOWA CITY STAFF ANAL YSIS The Visiting Nurse Association is requesting assistance in covering the cost of home health services to 15 low-income Iowa City residents requiring care related to mental health disorders. Services provided Documentation of assists person with chronic mental illness to function at their highest Project Need level of independence in the least restrictive environment. In 2007, VNA provided 300 nursing visits to 14 individuals with no health insurance coverage. Patient fees for these individuals amounted to $2,000. All of the CDBG funds are targeted for operational expenses Project Budget (salaries) for the nursing visits. Applicant enter volunteer utilization Discussion on question # 10; however the volunteers utilized are not in connection with this specific program. Project Coordination with Existing Services The VNA works actively with the client's physician/psychiatrist and & other Services other community agencies that may be working with the individual. Available in the Community Applicant History or Capacity to VNA has experience administering grants/funding from the State of Successfully Iowa, Johnson County, and the United Way. Complete the Proposed Project 1) How does VNA services differ from those provided by the Community Mental Health Center or Hillcrest Services? Please Summary of Items describe VNA's relationship with other community providers. 2) What are VNA's long-term plans for generating funding for this to be Addressed program? 3) This is applicant's 3rd request for CDBG funding. Options for long- term fundinQ. I ~ 1 --= -.. !~~~l!:'t ~ -., ...,.~ CITY OF IOWA CITY FY09 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Arc of Southeast Iowa Number Page 131 Project Address 2620 Muscatine Avenue, Iowa City Activity Type Public Facility CITY STEPS Priority High - Youth Centers Medium - Services for Persons with Disabilities CITY STEPS Goal Provision of dependent care facilities: Support development of Achieved respite care, childcare and family resource centers. (Page 112) 0-30% mfi - 44 % Beneficiaries 31-50% mfi - 12% 51-80% mfi - 21% Over 80% mfi - 23% Amount Requested $5,851 Repayment Terms Earned Grant. Compliance period of 1.95 years. Period of Affordability NA Percent of Project 100% Publicly Funded Leveraging City Funds $0 in other funds for each CDBG dollar requested Property Taxes Applicant is responsible for taxes until March 2009 $30,724 per year I ~ j ~~~~'t ~ ,,~, ......~ CITY OF IOWA CITY STAFF ANAL YSIS Documentation of Project Need Project Budget Discussion ProjectCoordinauon with Existing Services & other Services Available in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed Applicant provides approximately 353 children, adults and their families with developmental disabilities with advocacy, respite, supported community living, attendant care, intermittent medical monitoring treatment, supported employment, support group, education, day camps and other related services. Applicant requests funds for an alarm system and security lighting for their parking lot behind the buildinq. Applicant requests 100% in CDBG funds. No applicant match is noted. Applicant partners with the City of Iowa City Parks and Recreation to provide faCilities in conjunction with their summer day camps. Applicant has a history of working with Johnson County Mental Health/Development Disabilities. The focus of the agency is to provide services and advocacy to children with disabilities and their families. Goodwill provides employment training to adults with disabilities. Applicant has served the disabled community for 51 years and has over 200 employees. Arc has received federal, state and local funds to administer programs. Applicant employs a professional administrative staff. 1. Applicant does not provide any matching funds. If partial funds are awarded, will the project proceed? 2. Why is the alarm system necessary? Has there been a prior problem with unauthorized persons in the building or break-ins? 3. Will applicant have the budget to pay the ongoing alarm system expenses? 4. Federal labor provisions will apply to this project (Davis Bacon - prevailing wages) 2 I! 1 !~~~!:'t ~ ....~ ...,..,~ CITY OF IOWA CITY FY09 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Dolphin International LLC, Lake Point Enclave Number Page 141 Project Address 2401 Highway 6 East, Iowa City A ctivity Type Public Facility CITY STEPS Priority Low - Recreational Facility CITY STEPS Goal Provision of additional parks and recreation facilities: Develop Achieved additional open space in low-income neighborhoods. Page 113 Beneficiaries Area Benefit (Census Tract 18, Block Group 1) 55.8% LMI Amount Requested $84,500 Repayment Terms Earned Grant. Compliance period of 31.67 years. Period of Affordability NA Percent of Project 87% Publicly Funded Leveraging City Funds $0.15 in other funds for each CDBG dollar requested Property Taxes Yes. $342,000 per year. Each homeowner or condo owner pays taxes. I ~ I -,...= -.. ~~~!::'t ~ ....,- .....~ CITY OF IOWA CITY STAFF ANAL YSIS Documentation of Project Need Project Budget Discussion ProjectCoordinauon with Existing Services & other Services Available in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed Applicant proposes to place a play structure on private property off Lakeside Drive that will be accessible to all neighborhood residents. The new structure will replace playground equipment installed in the 1960s. The playground improvements will serve the proposed 358 households at Lake Point Enclave, but also the surrounding low- income neighborhoods. The next public, open space with playground structures is Fair Meadows Park (adjacent to Wood Elementary) 3/8 of a mile from site. Ongoing maintenance would be completed by applicant. Applicant requests 87% in CDBG funds. Applicant will provide $21,000 for the assembling and installation of the playground equipment and sidewalk expenses. The budget states fence or sidewalk. Applicant states if no fence is built, the funds will be used for a secondary sidewalk connection from the complex through the park area. The applicant will be investing approximately $8.59 million to the rehabilitation of the complex. Applicant will work with the City of Iowa City Parks and Recreation to determine the appropriate equipment for the site. Fair Meadows Park is the nearest public park to the site. The principals of the project have never worked with CDBG or HOME funds, however, the architect and consultant have worked with CDBG, HOME and TIF funds. The principals of the project have experience with distressed properties and the architect and consultant are currently working with TIF and HOME funds to redevelop a historic building in Aurora, IL. 1. Applicant requests 87% of the project costs in CDBG funds. If partial funds are awarded, will the project proceed? 2. Applicant must consent to a mortgage on the property for the amount of CDBG funds allocated and ensure public access to the playground during the compliance period of 31 years. 3. Please submit price quotes for the proposed playground equipment. 4. Will applicant have the budget to pay the ongoing maintenance expenses? Will there be a provision in the condo association fees for a playground reserve? 5. Federal labor provisions will apply to this project (Davis Bacon - prevailing wages) 2 I ~ I ~~~~'t ~ ...., ..... ...&L. CITY OF IOWA CITY FY09 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Domestic Violence Intervention Program (DVIP) Number Page 151 Project Address Confidential Activity Type Public Facility CITY STEPS Priority High - Emergency Shelter CITY STEPS Goal Strategy: Improve and maintain existing shelter facilities. (Page 108) Achieved Beneficiaries Presumed benefit (Nature of Activity) Amount Requested $13,979.39 Repayment Terms Earned Grant. Compliance period of 4.66 years Period of Affordability NA Percent of Project 89% Publicly Funded Leveraging City Funds $ 0.12 in other funds for each CDBG dollar requested Property Taxes Tax exempt I ~ I ~:i;~~~'t ~ -_.~ .....~ CITY OF IOWA CITY STAFF ANAL YSIS Documentation of Project Need Project Budget Discussion Project Coordination with Existing Services & other Services Available in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed 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 4,500 women and children since the facility was constructed in 1993. Applicant requests funds to place a security monitor near the front door, repair shelter resident restrooms & showers and to replace the original wood privacy fencing in the back yard. CDBG funds make up approximately 89% of the project's budget. Applicant secured bids for the expenses stated in the budget breakdown, so the costs appear to be valid. 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. 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. 1. DVIP anticipates fundraising to provide the stated project match of $1,700. Has fundraising already begun for this project? The quote for the fence from Menards appears to be for materials only. Is there a cost estimate for installation of the fence? If partially funded, will the project continue? 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. 2. 3. 4. 2 I ~ I --= -It ~~~!='t ~ ...., ....,.., ....AL CITY OF IOWA CITY FY09 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Extend the Dream Foundation - Facility Rehabilitation Number Page 161 Project Address 2203 F Street Activity Type Public Facility CITY STEPS Priority High - Micro-Businesses CITY STEPS Goal Provide Employment Support Services: continue to support agencies Achieved that provide microenterprise/entrepreneurial development (Page 124) 0-30% mfi - 53% Beneficiaries 31-50% mfi - 12% 51-80% mfi - 24% Over 80% mfi -11% Amount Requested $4,610 Repayment Terms Earned Grant. Compliance period of 1.54 years. Period of Affordability NA Percent of Project 82% Publicly Funded Leveraging City Funds $0.22 in other funds for each CDBG dollar requested Property Taxes Tax Exempt I ~ 1 -....= -.. !~~~'t ~ "-!-m~ ..........&L.. CITY OF IOWA CITY STAFF ANAL YSIS Applicant requests funds to replace part of the roof and to replace the roof/gutters to the e-commerce center. The site also houses applicant's three rental units, partially financed with HOME funds, on the second floor. Documentation of Project Need The focus at EDF is on improving the lives of persons with disabilities through employment training and ownership opportunities. The E- commerce center houses three microenterpdses as well as a computer classroom to teach persons with disabilities how to utilize ecommerce to enhance their income. Project Budget Applicant proposes to provide $1,000 for the proposed project. Discussion Applicant has received construction bids for the work proposed. Extend the Dream has been working with several community partners ProjectCoordinaffon through referrals for micro.:.enterprise or e-commerce training and with Existing Services & hosting meeting spaces for various non-profit organizations. EDF other Services Available works with LIFE Skills, Systems Unlimited, MECCA, CMHC, Elder in the Community Services and STAR homeless outreach. Goodwill also provides employment training to adults with disabilities. Applicant has received CDSG and HOME funds in the past for various projects. During prior monitoring visits, various items were noticed that were not in compliance with HUD requirements. The Applicant History or most important item being that EDF must have a financial system that provides control and accountability over funds and assets, identifies Capacity to Successfully the source and application of federal funds, provides source Complete the Proposed Project 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 standards. 2 Summary of Items to be Addressed 1. Applicant purchased the property in July 2005 with CDBG/HOME funds. A building permit was issued in October of 2005. The building has not passed inspection due to lighting concerns and the stair riser height must be altered. Housing & Inspection Services must complete a final inspection after applicant resolves all issues. Before additional CDBG funds are invested in this building, all prior code violations must be addressed. 2. If allocated funding, the work can't be performed until July. Can the work wait until July or will further damage be incurred? 3. Federal labor provisions will apply to this project (Davis Bacon - prevailing wages) 3 I! I ta:~~~'t :::: ",~, ....",.,-Aa... CITY OF IOWA CITY FY09 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Iowa City Free Medical Clinic - Building Acquisition Number Page 171 Project Address 2440 Towncrest Drive, Iowa City Activity Type Public Facility CITY STEPS Priority Low - Health Facilities High - Health Services Provision of Health Facilities: Support expansion needs of existing CITY STEPS Goal medical/dental facilities. (page 113) Achieved Provision of Health Services: Continue support of health, dental and HIV/AIDS services. (paqe 115) Beneficiaries 0-30% mfi 99% 31-50% mfi 1% Amount Requested $300,000 Repayment Terms Earned Grant. Compliance period of 99 years Period of Affordability NA Percent of Project 59% Publicly Funded Leveraging City Funds $ 0.69 in other funds for each CDBG dollar requested Property Taxes Tax exempt I ~ 1 --= -.. ~~~~'t ~..-., ....~ CITY OF IOWA CITY STAFF ANAL YSIS Documentation of Project Need Project Budget Discussion ProjectCoordinauon with Existing Services & other Services Available in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed Applicant is applying for funds to assist with the acquisition of their facility that they are currently leasing. The Free Medical Clinic (FMC) treats over 2,500 patients annually. The clinic provides free medical and dental services to uninsured low to moderate income persons. The project also meets the CITY STEPS goal of continued support of health, dental and HIV/AIDS services. CDBG funds make up approximately 59% of the project's budget. The volunteer contribution is in the form of contributions made by the volunteer Board of Directors who will be managing the project. There would be a large savings in lease payments if the building was purchased, but not sure about the increase in maintenance costs. The Free Medical Clinic has a long history of working with a variety of agencies and organizations in Iowa City, such as the Arc of Johnson County, Crisis Center, Elder Services, 4Cs, Goodwill, Iowa City Hospice, Shelter House, DVIP, Neighborhood Centers, U of I Hospitals and Clinics, U of I Dental program, MECCA, and many private health care professionals. 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. 1. If partially funded, can applicant contribute more to the project? Does FMC have a capital reserves budget? Has the applicant researched the idea of renting out the lower level to increase the income? How was the requested amount of $300,000 figure arrived? Does the applicant have a letter from a lender stating the amount that could be loaned? What is the current monthly rent payment and does it include utilities or maintenance costs? What is the proposed mortgage payment? If there is a monthly cost savings, how will FMC utilize the proposed savings? 2. 3. 4. 5. 2 I ~ j ~~~~'t :::: ..!!!-, .....,--..... CITY OF IOWA CITY FY09 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page MECCA - Facility Rehabilitation Number Page 181 Project Address 430 & 438 Southgate Avenue, Iowa City Activity Type Public Facility . CITY STEPS Priority Low - Health Facilities High - Health SeNices CITY STEPS Goal Provision for Health Facilities; support expansion needs of Achieved existing medical facilities (p-113) 0-30% mfi - 62% Beneficiaries 31-50% mfi - 9% 51-80% mfi - 3% Over 80% mfi - 26% (includes 736 clients that did not disclose income) Amount Requested $48,523 Repayment Terms Earned Grant. Compliance period of 16.17 years. Period of Affordability NA Percent of Project 92% Publicly Funded Leveraging City Funds $0.09 in other funds for each CDBG dollar requested Property Taxes Reduced rate paid for 12 housing units: $25,OOO/year I! 1 !~~~::':'t ~ ..~~ ..........&L.. CITY OF IOWA CITY STAFF ANAL YSIS Documentation of Project Need Project Budget Discussion Project Coordination with Existing Services & other Services Available in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed Applicant provides substance abuse counseling and treatment along with HIV/AIDS services to approximately 3,000 people a year. MECCA offers 12 transitional housing units and houses a 32 bed inpatient residential facility with 2 detox rooms (6 beds) for those receiving substance use disorder treatment. The residential facility has not been updated since 1985, except for carpet (2006) and a bathroom renovation (2001). Applicant request funds to paint the residential bedrooms, halls, offices, and treatment areas and bathroom renovations. The transitional housing units were constructed in 2001. A playground area was established adjacent to the building with a small play structure for children. Applicant states there are no areas or facilities for older children and teens. Applicant request funds to install a concrete pad, basketball hoop, and landscaping improvements so that the play area can accommodate various ages. CDBG funds make up approximately 92% of the project's budget. The remaining funds are committed. Applicant has received funds from the Community Foundation of Johnson County and will receive donated labor from three area master gardeners for the playground project. MECCA collaborates with a wide range of community organizations such as the Johnson County Empowerment Board, Juvenile Crime Board, Iowa City Schools, Alcohol Awareness Work Group and receives referrals from the US Probation Office, Iowa Dept. of Corrections, Bureau of Prisons and DHS. MECCA has received a number of CDBG funding awards, including funds to construct the current facility in 1985, the transitional housing facility in 2001 and a facility rehabilitation project (carpet) in 2006. Applicant has received federal, state and local funds to administer programs. Applicant employs a professional administrative staff. 1. 92% of the project is publicly funded, if partially funded will the project continue? 2. Federal labor provisions will apply to this project (Davis Bacon - prevailing wages) 2 I ~ j ~~~_...... ~~~!:'"!. ~ --!-, .....rY- CITY OF IOWA CITY FY09 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Neighborhood Centers of Johnson County - Facility Rehabilitation Number Page 191 Project Address 2105 Broadway Street, Iowa City Activity Type Public Facility High - Neighborhood Facilities CITY STEPS Priority High - Child Care Centers CITY STEPS Goal Support development of childcare facilities (Page 112) Achieved Provision of Neighborhood Facilities (Page 113) Beneficiaries 0-30% mfi 100% Amount Requested $54,200 Repayment Terms Earned Grant. Compliance period of 18.07 years. Period of Affordability NA Percent of Project 96% Publicly Funded Leveraging City Funds $ 0.04 in other funds for each CDBG dollar requested. Property Taxes Tax exempt I ~ 1 !~~~'r ~ ",~, ~~ CITY OF IOWA CITY STAFF ANAL YSIS Documentation of Project Need Project Budget Discussion ProjectCoordinauon with Existing Services & other Services Available in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed CITY STEPS, the Local Homeless Coordinating Board and local human service organizations recognize the need for affordable dependent care. The space capacity at the Broadway Neighborhood Center has not increased in the past 10 years; however, programming demand has nearly tripled in the past 10 years. It is anticipated that over 1,000 people will be assisted at the Broadway Neighborhood Center in FY09, all of whom will be below 30% of the area median income. Project proposes to use funds at the Broadway Neighborhood Center for 1) replacing the back deck; 2) replacing windows for childcare programs; 3) addition of a small retaining wall in the back yard; 4) construct a screen for the dumpster; 5) concrete and asphalt repairs to the parking lot. The CDBG funds make up 96% of the total project budget. The remainder of the funds will be coming from NCJC and have been committed. There was no mention of how the applicant arrived at the construction estimates. NCJC 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. NCJC has been successful in completing a variety of CDBG funded public service and public facility projects over the last 20 years. NCJC 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. 1. Will the project continue if partial funded? 2. Has NCJC 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. 6. Please explain why the FY08 funds have not been expended. 2 I ~ j !~~~'t ~ -!!!-, ......,........ CITY OF IOWA CITY FY09 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Twain Elementary, ICCSD Number Page 198 Project Address 1355 Deforest Avenue, Iowa City Activity Type Public Facility CITY STEPS Priority High - Neighborhood Facilities CITY STEPS Goal Provision of Neighborhood Facilities: explore the need; plan and Achieved construct neighborhood facilities (Page 113) 0-30% mfi - 0% Beneficiaries 31-50% mfi - 66% (Reported for 0-50%) 51-80% mfi - 8% Over 80% mfi - 26% Amount Requested $60,000 Repayment Terms Earned Grant. Compliance period of 20 years. Period of Affordabi/ity NA Percent of Project 47% Publicly Funded Leveraging City Funds $0.90 in other funds for each CDBG dollar requested Property Taxes Tax Exempt I! I !:~~~~'t ~ "I!!!!.!.-'- ......-..&.L.. CITY OF IOWA CITY STAFF ANAL YSIS Documentation of Project Need Project Budget Discussion Project Coordination with Existing Services & other Services Available in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed Twain Elementary has 254 students and serves 40 preschool aged children in two separate preschool programs. The school partners with Neighborhood Centers of Johnson County for both extended day care and preschool programming. 74% of Twain's students qualify for the free and reduced lunch program and Twain's attendance area includes Census Tract 18, Block group 2, where over 57% of the households are low to moderate income. CITY STEPS encourages the addition of parks and recreational facilities in low-income neighborhoods. Based on the district's safety assessment, all the aging equipment at Twain has been removed or will be in the near future. Only one play structure that can handle approximately 30-40 children will remain. There is no equipment accessible to pre-school aged children on site. Applicant requests funds to install two playground structures that will serve preschool aoed children and upper orade students. The applicant requests 47% of the project costs. The Twain PTO has raised $17,405 towards the project in addition to their annual $8,000 operating budget and has researched and applied for various grants throughout the community. The ICCSO does not provide funds for playground equipment. It is the responsibility of each school's parent organization (PTO) to purchase the necessary equipment. Twain partners with several local organizations to improve student outcomes. Neighborhood Centers of Johnson County provides extended day care and preschool programming on site. The ICCSO has successfully administered previous COBG projects and has experience working with a variety of federal and non-federal funding sources. 1. Please provide details and price quotes for the proposed equipment. 2. The City can not attach a lien to land owned by another public entity. The school district must consent to enter a COBG agreement with the City and maintain the improvements over the 20 year compliance period if fully funded. 3. Based on installation costs, Davis Bacon (prevailing wages) may apply to the project. 4. No equipment may be ordered and no work can commence until all environmental review requirements are completed. 2