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HomeMy WebLinkAbout06-16-2011 Housing & Community Development CommissionAGENDA HOUSING AND COMMUNITY DEVELOPMENT COMMISSION LOBBY CONFERENCE ROOM, CITY HALL THURSDAY, JUNE 16, 2011 6:30 P.M. 1. Call Meeting to Order 2. Approval of the April 21, 2011 ,Minutes 3. Public Comment of Items Not on the Agenda 4. Staff /Commission Comment 5. Discussion Regarding Community Development Block Grant (CDBG) Special Allocation Requests • Discuss CDBG Special Allocation Applications • Develop CDBG Special Allocation Budget Recommendation to Council 6. Subcommittee Report: Review of the FY12 CDBG /HOME and Aid to Agency Allocation Process 7. Subcommittee Report: Community Development Celebration 8. Monitoring Reports • IC Housing Rehabilitation (staff) • IC Economic Development (staff) • Arc of Southeast Iowa — Equipment (McKay) 9. Adjournment CITY OF IOWA CITY NI. 4 MEMORANDUM TO: Housing and Community Development Commission FROM: Community Development Staff DATE: June 10, 2011 RE: June 16, 2011 Meeting Packet The following is a short description of the June 16 agenda items. If you have any questions about the agenda, or are unable to attend the meeting, please contact Tracy Hightshoe at 356 -5244 or by email at tracy- hightshoe @iowa - city.org. Discussion Regarding Community Development Block Grant Special Allocation Requests Due to a HUD technicality, we had to have another funding round to reallocate the $900,000 in CDBG funds that was previously awarded to Wetherby Condominiums South, LLC. The Environmental Review Officer for the HUD Kansas City office determined that the project could not be funded as proposed because of the way it was structured in the original application (acquisition and rehab). As you know, the project changed from the time that the project was proposed because of the delay related to the development of the City's Affordable Housing Model. However, the project is still eligible as long as it is restructured as a rehabilitation project only and Wetherby Condos South LLC reapplied. The City advertised the $900,000 in available CDBG funds and received 7 housing applications and 2 public facility applications totaling $2,972,554. For this round, there are no ranking forms. Please review each application. Staff will provide a recommendation that will be emailed to you on Tuesday or Wednesday and then we will present our recommendation at the meeting on Thursday. HCDC can forward the staff recommendation to Council or provide a different recommendation. Subcommittee Reports Members will provide an update on the Community Development Celebration and the FY12 CDBG /HOME and Aid to Agency Allocation Process. Monitoring Reports • Iowa City Housing Rehabilitation — (See staff memo) • Iowa City Economic Development Fund (See staff memo) • Arc of Southeast Iowa — Equipment (McKay) Contact Bill Reagan, 351.5017or wmreagan @iowatelecom.net MINUTES PRELIMINARY HOUSING AND COMMUNITY DEVELOPMENT COMMISSION ARPIL 21, 2011 — 6:30 PM EMMA HARVAT HALL, CITY HALL MEMBERS PRESENT: Andrew Chappell, Cheryl Clamon, Scott Dragoo, Jarrod Gatlin, Holly Jane Hart, Michael McKay, Rebecca McMurray, Rachel Zimmermann Smith MEMBERS ABSENT: Charlie Drum STAFF PRESENT: Steve Long, Tracy Hightshoe OTHERS PRESENT: Deborah Lyon (Successful Living); Phoebe Trepp (Shelter House), Bill Reagan (Arc of Southeast Iowa); Roger Lusala, Roberta Eide, (Mayor's Youth Empowerment Program); Sandy Pickup (Free Medical Clinic); Jim Swaim (UAY) RECOMMENDATIONS TO THE CITY COUNCIL: The Commission voted 8 -0 (Drum absent) to approve the FY12 CDBG /HOME budget recommendations as outlined by staff. The Commission voted 8 -0 (Drum absent) to approve the Financial Terms for Housing Projects as recommended by staff. The Commission voted 8 -0 (Drum absent) to approve the Aid to Agency Budget Recommendations as outlined by staff. CALL TO ORDER: The meeting was called to order by Chairperson Michael McKay at 6:30 p.m. APPROVAL OF THE MARCH 10 AND MARCH 17, 2011 MINUTES: Zimmermann Smith moved to approve the minutes. Chappell seconded. A vote was taken and the motion carried 8 -0 (Drum absent). PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA: None. HOUSING AND COMMUNITY DEVELOPMENT COMMISSION APRIL 21, 2011 PAGE 2 of 7 STAFF /COMMISSION COMMENT: Long provided an update on the Single Family New Homes Program. This is a program to construct 108 new homes to replace housing stock eliminated in the floods. Long noted that 77 of the homes have been sold or built and 31 are either under construction or soon to be constructed. Long said there had been a lottery drawing a few weeks prior to determine who would have first consideration for the program. Long said that a quick analysis of the program had found that the taxable value to the City is a $4.5 million increase over the homes that had been taken off -line by the flood. Long said that all of the contractors they have worked with are very pleased with the program as it helped to keep people employed during the last couple of years of economic downturn. Zimmermann Smith asked where the homes are. Long said they are scattered throughout Iowa City; including the Peninsula, Mackinaw Village, Olde Towne Village, Windsor Ridge, Whispering Meadows, Village Green and along Sycamore Street (General Quarters). Hightshoe said that there have not been many homes on the west side due to the cost of land and also because the developers did not have land available. The program limits the selling price to $180,000 or less. McKay asked if there were as many people interested in the project the third time around and Hightshoe said that the City always receives 20 -30 more applications than homes available. That being said, not everyone that applies will be able to secure the necessary mortgage or want the available homes in the program. Hightshoe stated that they will typically run through all the original applicants and the homes that remain will be on a first come, first served basis. Long said that the UniverCity Neighborhood partnership now has 25 homes that have been purchased or which have accepted purchase offers. Long noted that on Tuesday night City Council had approved the FY11 Action Plan Amendment for the Special Allocation Round. He said this means that the Housing funding in the amount of $1.2 million was approved for Isis Investments, Shelter House, and Southgate Development. DISCUSSION REGARDING FY12 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME INVESTMENT PARTNERSHIP PROGRAM (HOME) REQUESTS: • FY12 CDBG /HOME Budget Recommendations to Council • Review Financial Terms for Housing Projects Long explained that the FY11 Congressional budget had been passed and signed on Friday, and included a 16% cut to CDBG funds, and a 12% cut in HOME funds. Long said that staff had come up with a way to resolve the situation posed by the cuts. Long said that the year had been a pretty good one in terms of loan payoffs. When someone that has participated in the Homeowner Rehabilitation Program sells their home, funds are returned to the City for reallocation. Long said that the City always holds a little money back for contingency, so they were able to tap into some of those funds. Hightshoe said that she would go over the spreadsheet to explain more fully, after which the Commission can vote to approve, modify or do something entirely different with the proposal before them. Hightshoe explained that there was a cut of $115,551 to CDBG funding, and $81,359 to the HOME funds. The HOME funds were not of too great of consequence to HCDC's recommendation since the Commission had not allocated $87,800 in HOME funds during the allocation process. She did note that The Housing Fellowship's CHDO funding would have to go down by approximately $4,000, and that a CHDO predevelopment loan of $10,500 is not an HOUSING AND COMMUNITY DEVELOPMENT COMMISSION APRIL 21, 2011 PAGE 3 of 7 eligible expense. As the City did not receive any applications that would qualify as CHDO reserve for City FY12, a CHDO pre - development loan is not allowed. Hightshoe said that there is enough money to cover the CDBG shortfall for this year partially due to higher than normal loan repayments and uncommitted funds, but that will not bp the case next year. Hightshoe explained that there is presently a City Council set -aside for the Iowa City Economic Development fund. The fund currently has a balance of $147,000. By reducing the FY12 amount to $35,428 (opposed to $91,000) this fund would then have a balance of over $182,000 for FY12 projects. This would provide funds to assist 5 -6 businesses. In FY11 the fund assisted two businesses. Hightshoe said that staff has not utilized all the budgeted CDBG administration funds due to the administration of so many other projects including flood recovery programs, (Jobs, and the Single Family New Construction Program. These unused administration funds will be used to partially fill the deficit as well. By allocating more funds from loan repayments, using the uncommitted CDBG administration funds and reducing the Economic Development set aside for FY12, the remaining CDBG allocations would be unaffected. Due to higher than anticipated HOME repayments, staff recommends the additional HOME funds as well as the $10,500 that can't be used as a CHDO pre - development loan be applied to the Iowa City Housing Rehab. HOME program for comprehensive rehabilitation for owner occupied homes. She said that if there is another cut next year the decisions will get harder to make because the cushions being used to buffer the impact of the cuts this year will be gone. Long noted that staff has been working on this for the past couple of days in order to avoid cuts to applicant allocations. Chappell said that he was not comfortable with the cut to Economic Development until he heard Hightshoe say that the remaining funds were enough to fund six businesses in the next year. He said the idea of touching a set -aside is one that he takes very seriously. Chappell moved to adopt staffs recommendations, including those regarding the predevelopment loan. McMurray seconded. A vote was taken and the motion carried 8 -0 (Drum absent). Hightshoe noted that staff had reviewed the proformas and had come up with recommendations for allocation terms for each of the projects. She briefly ran through the various loan terms staff is recommending. Zimmermann Smith moved to accept staffs recommendations on the financial terms. Gatlin seconded. A vote was taken and the motion carried 8 -0 (Drum absent). McKay thanked staff for the great work they did on the allocations. DISCUSSION REGARDING FY12 AID TO AGENCY FUNDING REQUESTS: • FY12 Aid to Anencv Budget Recommendations HOUSING AND COMMUNITY DEVELOPMENT COMMISSION APRIL 21, 2011 PAGE 4 of 7 Hightshoe explained that there was a funding shortfall in this area as well. She said that the cuts had been made up for the most part, with the exception of the contingency fund. Long said that staff feels comfortable that the gap can be covered for this one year. Gatlin asked how often the contingency has actually been used in the past. Long said that his understanding was that it was not that often. He said that from what staff can gather the contingency fund is used very rarely. Zimmermann Smith moved to approve the staff funding recommendations and eliminate the contingency fund. Gatlin seconded. A vote was taken and the motion carried 8 -0 (Drum absent). REVIEW OF THE FY12 ANNUAL ACTION PLAN • Recommendation to City Council Hightshoe explained that the Annual Action Plan must be submitted to HUD each year by May 15th. She said it basically outlines the budget that the Commission just approved. Hightshoe said that because the Commission has slightly amended allocation amounts, changes will also have to be made to the Annual Action Plan itself. Hightshoe said that the document has been out for public comment since April 1 st and will go before City Council on May 3. Chappell moved to recommend to City Council to adopt the plan with the changes discussed Zimmermann Smith seconded. A vote was taken and the motion carried 8 -0 (Drum absent) DISCUSSION OF FYI PROJECTS THAT HAVE NOT PERFORMED PER THE UNSUCCESSFUL OR DELAYED PROJECTS POLICY: Hightshoe said that the only project that fell into this category is the MECCA project that was funded to replace /repair the doors and sidewalk. Hightshoe said that work will begin in the spring. MECCA fully anticipates having the project done by the end of the fiscal year. Hightshoe said that they have requested an extension through the end of the fiscal year. A consensus was reached to grant the extension. REVIEW OF THE FY12 ALLOCATION PROCESS: McKay distributed a memo containing his thoughts on ways the allocation process could be improved. McKay said that he believed a little more training or retraining for the Commission would be helpful. He said that a review of terminology, processes and uses for particular funding sources might be helpful to have on an annual basis. He said that consistency in terms of weighting, particularly in regard to the weight given rankings, would be helpful. McKay said that he also believes the ranking tools could be a little more user friendly. McKay said that the Commissioners were selected to serve because of their experience, knowledge and interests and will have to make judgments from time to time that are not very scientific. He suggested that a sub - committee be formed to begin work on reviewing the process. HOUSING AND COMMUNITY DEVELOPMENT COMMISSION APRIL 21, 2011 PAGE 5 of 7 Zimmermann Smith asked if the goal of a sub - committee is to establish a rule specifically on how to weight things. She said that she believes the tool and the rankings will always be imperfect. Chappell said he too believed there should be a sub - committee to discuss the process and the forms. Chappell said that it makes no sense to him to tell applicants that they will weigh things a certain way and then to not use those weighted scores as a guide to funding. He said that if the decision was to be based solely on judgment then the applicant should not be expected to craft an application around the criteria for the rankings. Zimmermann Smith said that it was probably a good idea to have some sort of open forum for Commissioners to explain why their funding decisions for a given application might not match their rankings for it. She agreed that a committee was a good idea. Hart said she agreed that looking into the process and tools was a good idea. She said that she does not agree with the notion that applicants complete their applications in order to line them up with the funding criteria. Hart said her concern is that the rankings as they are currently configured advantage and disadvantage certain kinds of applications. Chappell, Hart, McKay and McMurray agreed to be on a subcommittee to discuss these issues. A member of the public suggested that after the Commission had reviewed the process it would be helpful for them to share their findings with the applicants. He said that most applicants recognize the issues that the Commission struggles with when making funding decisions. Hightshoe said that staff would also like input on the reports they put together on the applications. She said they have very limited time between when they receive the applications and when they need to get the reports in front of the Commission. She said that if there were things that were not helpful or did not guide their decisions then staff could simply eliminate them. DISCUSSION OF THE COMMUNITY DEVELOPMENT CELEBRATION Hightshoe explained that a Community Development Celebration is held each year to highlight the impact that CDBG /HOME dollars have made in our community. She noted that it might be even more important to have such a venue now that the CDBG /HOME budgets are being cut. Hightshoe said that Iowa City has been a CDBG entitlement community since 1974, and a HOME entitlement community since 1994. She said that HOME has funded over 300 rental units since 1994, in addition to all of the HOME funds that have gone to assist various owner - occupied projects. She said the committee only meets once or twice and then typically an intern takes on most of the planning duties. She said that staff needs Commission input on location, awards, and speakers for the event. Zimmermann Smith, Clamon and Drum will form the celebration committee. McKay said that it is important to get the word out to the public on the projects that have been funded. He advised Commission members and staff to do so whenever possible. Long noted that it is a good idea for members of the public to remind state and federal legislators of the impact of CDBG /HOME funds on the community and the populations that are impacted by those dollars. MONITORING REPORTS: • Shelter House — Shelter, Rental Housina & Operations (Gatlin) Gatlin said that he is monitoring three Shelter House projects. The first project was funded in 2010 in the amount of $311,268. Construction of the shelter was completed and the 70 bed HOUSING AND COMMUNITY DEVELOPMENT COMMISSION APRIL 21, 2011 PAGE 6 of 7 shelter is now open. The second Shelter House project is for rental housing that was funded in FY11; those funds have also been spent. Shelter House acquired a property and will use FY11 CDBG funds to rehabilitate the duplex into a six unit SRO property for persons with a verifiable disability, preference to military veterans with chronic mental illness. Shelter House operations funding in the amount of $2,888 was used as a cash match for the STAR Program's case management. Hightshoe noted that the Shelter House kitchen is up and running as a catering service; it is intended to train and give employment experience to residents as well as to provide operating income to the facility. A Shelter House representative offered to give tours at any time. ADJOURNMENT: Dragoo moved to adjourn. Zimmermann Smith seconded. The motion was approved 8 -0 (Drum absent). CDBG Special Allocation $900,000 Available HOUSING APPLICATIONS Iowa Valley Habitat for Humanity $200,000 MBHG, LLC $660,000 Shelter House $275,000 Successful Living — Church St. $85,014 Successful Living — Dubuque St. $68,546 United Action for Youth $100,000 Wetherby Condos South LLC $900,000 Total Housing Requests: $2,288,560 PUBLIC FACILITY APPLICATIONS Mayor's Youth Empowerment Program MECCA $121,337 $562,657 Total Public Facility Requests: $683,994 Total Requests: $2,972,554 � r 1 3va's MIX AMrMit - CITY OF IOWA CITY ...................... APPLICATION FOR FY2011 CDBG FUNDS (SPECIAL ROUND) Project Name: "Net Zero Energy " Habitat Single Family Construction Type of Project (check one): Homeownership General Information 1. Lead Applicant Name: Iowa Valley Habitat for I;h Signature / /j ✓` Applicant Address: 2401 Scott Blvd. Contact Person: Mark Patton Title: Executive Director Phone Number: 319 - 337 -8949 Fax Number: 319 -354 -3527 Email Address: mark@iowavalleyhabitat.org DUNS Number: 123204880 (If Applicable) 2. Secondary Applicant: Applicant Address: Contact Person Title: Phone Number: Fax Number: Email Address: 3. Type of Applicant (check one): Private non-profit organization 4. Amount of CDBG Funds Requested: $200, 000.00 5. Did you attend the Applicant Workshop? Not applicable. 6. Provide a brief description of the proposed project & complete the table below. Purchase 4 building lots costing $30, 000 each for the construction of 4 single family homes for families earning under 60% of area median income. The four homes will be the result of a local design architectural competition with the goal of designing homes to fit into the neighborhood with the goal of being zero net energy homes: they produce as much energy as they consume. This may include solar panels for domestic water and electrical generation, LED lighting and super insulating walls and roof. Two other Habitat homes (Mass. & Penn.) have are Zero Net Energy already so we know it is a realistic and viable project. All the homes will be electronically monitored with immediate feedback to the homeowners as to what their consumption is and how they can use less power. This monitoring will also we watched by University of Iowa engineering students (we currently to it on two existing Habitat homes and the information can be shared with the public). We will be involving Kirkwood Community College construction trades training students and, if the program is operational by the time we start, the Iowa City Community School District construction program in conjunction with the Home Builders Association of Iowa City. These homes are intended to teach the public about what is possible and what the real costs of installation and operation are. 'T"Pe of Units Number of Units Single Room Occupancy Efficiency 1 Bedroom 2 Bedroom 3 Bedroom 4+ Bedrooms 4 Total Number of Units Proposed: 4 Total Number of Bedrooms 16 Section 1 - Need /Priority 7. Tell us why this project is needed (include information from CITY STEPS, the Iowa City Metro Area Affordable Housing Market Analysis (December 2007) by Mullin & Lonergan Associates, and/or other market studies that identifies the need for this type of housing in Iowa City and how it will fill a gap in the City's housing market. Lower income families have a difficult time paying market rate rent, let along buying a home of their own. Habitat's new homes are both affordable (avg. $650 per month mortgage) AND highly energy efficient. Elderly and samll family owner households are identified in City Steps as having a HIGH PRIORITY and Habitat's proposal would build 4 new homes which would be affordable for a very long time, especially since their monthly utility bill is expected to be $25- $30. 8. Please specify the one mo +st applicable priority need and priority need level, as shown in the 2011 -2015 CITY STEPS Plan. Priority Need OWNER- OCCUPIED HOUSING UNITS Priority Level (High, Medium, or Low) HIGH Section 2 - Leveraging Resources / Budget 9. Please provide the requested loan terms and affordability period: Terms $200,000.00 0 0 10 0 Requested* *Financing terms will be based on project feasibility and the ability to repay the loan. Terms approved by City Council may be different than what is requested. 10a. Please complete the table below showing the types and amounts of funding being requested for the proposed project. Please check the appropriate box if the funding source is committed. If not committed, please indicate when the applicant will apply for funds in Question #16, Project Timetable. Iowa City CDBG $ No Funding (public) 10 State of Iowa HOME $200,000 0 or CDBG (public) No Low Income Housing $ 10 Tax Credits (private) 0 Bank Loan (private) $40,000 2.5 Volunteer Labor and /or 25 In -kind Donations $60,000 0 (private) Applicant Contribution $160,000 0 of Equity (private) Other Public Resources (please list below) HOUSING TRUST $60, 000 0 FUND JOHNSON CO. Other Private Resources (please list below) SOFTUWOOD GRANT HOME $65,000 0 DEPOT GRANT Total Funding: $585,000 0 10 No No 5000 10 No 0 0 Yes 100000 25 Yes 60000 5 No 0 0 Yes 10b. Please provide the uses of funds for the project. Building Acquisition Land Acquisition Site Improvements Construction Professional Fees Construction Finance Permanent Finance Developer Fee Reserves Total Funds Used: Amount of Private Funds Amount of Public Funds Number of bedrooms Total public cost per bedroom Total cost per unit $120,000 $20,000 $399,000 $18,000 $18,000 $10,000 Total Project Funding $585,000 $385,000 $200,000 $585,000 16 $12,500 $36,562 11. If volunteers are used please describe how these volunteers are utilized for the proposed activity and estimate the amount of volunteer time and value dedicated to the identified tasks. (Please specilN) Unskilled Labor -N /A- 4000 $10 $40,000 Skilled Labor PLUMB, HEAT, ELEC 500 $40 $20,000 12. Please identify any identity of interest (IOI) relationships with the applicant and /or project owner, i.e. General Partner has a financial interest in the construction company, etc. N/A 13. Does the proposed project pay full property taxes? Yes If YES, what is the estimated value of taxes generated from this Project? $9000 NO, does the proposed project make a Payment In Lieu Of Taxes or pay at a reduced rate? No If yes, what is the percent of full taxes paid? 0% and amount paid is? $0 14. If partial funds are awarded, will the project/program continue? Yes If YES, at what level? B UY FEWER LOTS, B UILD FEWER HOMES 15. Program regulations require a 25% match for HOME funding. Describe how your organization or the proposed project will help the City of Iowa City meet this match requirement for local HOME funds. WE GET GRANTS FROM HOME DEPOT, SOFTWOOD GRANT REIMBURESEMENT, INDEPENDENT FUNDRAISERS (THRIVENT FINANCIAL FOR LUTHERANS, TIPPIE SCHOOL OF BUSINESS, ETC) Local HOME funds requested: $200,000 Local Match: $60,000 Section 3 - Feasibility 16. Briefly outline the proposed timetable for the commitment and expenditure of the funding being requested (include other project factors such as rezoning, construction schedule, or application(s) for other funding). If applicant plans to apply for funds not committed to the project yet, include the anticipated date for application. Please Note: If funded, this schedule will be used for any project agreement for the use of CDBG funding. 7112011 PURCHASE 4 LOTS 9/2011- 12/2011 ADVERTISE & GET PLANS FROM ARCHITECTS 512012 BUILD ON 2 LOTS 51112013 BUILD ON 2 LOTS 1212013 ALL HOMES COMPLETED 17. Briefly describe the project goals for providing or assisting in the preservation or expansion of affordable housing in Iowa City, and how the project will benefit the targeted income group (e.g. goal of providing rental housing to lower income persons without use of Section 8 rental assistance or level of subsidized rent compared to market rates). ALL HABITAT HOMES ARE SOLD AT NO INTEREST AND NO PROFIT TO THE FAMILY; TERMS ARE SETA CCORDING TO ABILTIY TO REPAY (20 -25 YEARS). SUBSIDY FROM THE CITY IS PASSED ONTO THE TAMIL YAND IS KEPT IN PLACE UNTIL THEY SELL: GIVES THEM OWNERSHIP, BEGIN TO BUILD EQUITY, PAY FULL PROPERTY TAXES, STABLIZES NEIGHBORHOODS AND CHILDREN'S LIVES. 18. To help promote the efficient use of federal, state and local funding please describe how the project will maintain long -term (in excess of CDBG\HOME program requirements) or permanent affordability; and, show how the project will provide for affordable housing at rental rates or purchase price for owner - occupied housing units lower than those in the existing market. MINIMUM 10 YEAR AFFORDABILITY (SUBSIDY IS TRANSFERRED TO FAMILY WHO DOES NOT HAVE.TO REPAY UNTIL SUCH TIME AS THEY MOVE AND SELLS TO A FAMILY WHICHIS NOT INCOME QUALIFIED). THE SUBSIDY WILL CONTINUE WITH THE QUALIFIED FAMILY AS LONG AS THEY LIVE THERE. Section 4 - Impact /Benefit to the Community 19. An objective of the City of Iowa City Comprehensive Plan is to promote a diversity of housing types and mix of all income levels. Please describe the target population this project is to serve and how the project will promote diversity within the neighborhood. We will be serving those earning between 25%- 60%AMI with single family housing. All families will be working, have good credit and not too much debt. 21 Also, please indicate the number of persons or households that will be served by the proposed project by income category. (Please Note: If this application is funded, the information in this table will be used as income targeting for the CDBG \HOME Agreement). Number between 0 - 30% median income 0 Number between 31 - 50% median income 2 Number between 51 - 80% median income 2 Number between 80 - 100% median income 0 Number over 100% median income 0 Total 4 Percent LMI 100% 22. Please select one main objective, outcome, and output indicator for the proposed project. Second, provide specific project indicators in the narrative (i.e. number of units to be rehabilitated, number of households assisted, number of units constructed, etc.) Objective Decent affordable housing Outcome Affordability Ouput Indicator Households Section 5 - Capacity /History of the Applicant 23. Please list amount of CDBG and/or HOME funds received within the last four City fiscal years and the status of the project(s) undertaken. (City fiscal year July 1 to June 30) 1'1V/ $220000 $220000 (July 2006 -June 2007) 101112010 FY08 $117000 $117000 (July 2007 -June 2008) 12/1/2011 FY09 $ $ (July 2008 -June 2009) FY10 $114000 $60000 (July 2009 -June 20 10) 12/112013 24. Is the applicant (including partners, co- applicants, etc.) currently in compliance with all federal, state and local laws, rules and regulations, including any CDBG and /or HOME funded projects? Yes If "NO" or a matter is currently in litigation please give the name of the case and explain the basis for the case. 25. If the applicant has not received HOME /CDBG funds in the past three years, please provide evidence of your organization's capacity, financial skills, commitment and /or experience to undertake and complete the proposed project within the established timetable and budget. 26. Please describe your organizations structure, officers and staff, as it relates to the overhead cost for this project. Board of directors: 13 community members Executive director and 5 FIT staff We cover 70% of overhead costs via donations and proceeds from our Restore. Project Name: Saddlebrook Meadows Part 1 Housing Type of Project (check one, Homeownership 0 Rental 0 Rehabilitation bb, U/j/ I. Lead Applicant Name: MBHG, LLC Signature (please use blue ink): - Applicant Address: 2871 Heinz Rd. Suite B Iowa City, IA 52240 Contact Person: Steve Gordon Title: Manager Phone Number: 319-354-1961 or 319 - 631 -1849 Fax Number: 319 - 351 -0070 E -mail Address: sgordon @ammanagement.net DUNS Number: 3. Type of Applicant (check one): 0 Community Housing Development Organization APrivate for - profit, individual or partnership applicant 4. Amount of CDBG Funds Requested: $660,000 5. Did you attend the Applicant Workshop? Not Applicable 0 Private non - profit organization 0 Public Organization 6. Provide a brief description of the proposed project & complete the table below. The project will consist of 20 attached single family units (10 buildings, 2 attached units per building) for sale to families whose income is at or below 80% of the area median income. 10 units will be 2- bedroom units and priced at $150,000 and 10 units will be 3- bedroom units and priced at $180,000. All units will be handicapped accessible and follow Universal Design standards. We are requesting down payment assistance so families with incomes at or below 80% of the area median income, even those at or below 60% of the area median income, can get into the home, using conventional financing, and start building long term financial stability. Total Number of Units Pro osed:20 Type of Units: attached SF Number of Units: 20 Single Room Occu an Efficiency 1 - Bedroom 2 - Bedroom 10 3 - Bedroom 10 4+ Bedrooms Housing 1 FYI CDBG Funding Request 7. Tell us why this project is needed (include information from CITY STEPS, the Iowa City Metro Area Affordable Housing Market Analysis (December 2007) by Mullin & Lonergan Associates, and /or other market studies that identifies the need for this type of housing in Iowa City and how it will fill a gap in the City's housing market. According to City Steps Elderly and small owner households experience a very high degree of housing problems especially cost burden. Owner households are a high priority. According to the housing study most new homes built are not affordable to low income households and developers should be encouraged to build affordable units. With the assistance of CDBG funds this project will bring 20 new units onto the market that are affordable to those making 50 % -80% of the area median income. Because the homes are built to universal design standards the homes are also ideal for the elderly and special needs populations. The homes will allow aging in place. They will be built to the 5 star energy standards and provide low utility costs. 8. Please specify the one most applicable priority need and priority need level, as shown in the 2011 -2015 CITY STEPS Plan. _ Owner Households Priority Need 9. Please provide the requested loan terms and affordability period: _High Priority Need Level (High, Medium or Low) *Financing terms will be based on project feasibility and the ability to repay the loan. Terms approved by City Council may be different than what is requested. This is a request to help low income households be able to purchase a new house and stay within affordability guidelines. We are requesting a grant program that allows a household at or below 80% of the area median income to get 20% of the purchase price towards the down payment on a new home. The grant would be forgiven 10% per year for the first 5 years. After 5 years up to 10 years 50% of the grant money would be returned to the city if the home was sold or refinanced. After 10 years the grant would be fully forgiven. The city would secure their interest by placing a second mortgage on the home behind the conventional financing. The developer will also consider contract sales to help those borrowers who may have some credit challenges and will work with the city to set up parameters. The buyers of the 10 homes priced at $180,000 will each receive $36,000 and borrow $144,000. At 5% interest for 30 years the payment is $773. With taxes and insurance the total payment is estimated at $995 which is affordable for a family of 4 at 60% of the area median income. The buyers of the 10 homes priced at $150,000 will each receive $30,000 and borrow $120,000. At 5% interest for 30 years the payment is $644. With taxes and insurance the total payment is estimated at $835 which is affordable for a family of 3 at 50% of the area median income. Housing 2 FY11 CDBG Funding Request Loan Affordability Principal Interest Amortization Period Yearly Amount Rate (Years) (Years) Payment Terms $660,000 0% Grant 10 none Requested* *Financing terms will be based on project feasibility and the ability to repay the loan. Terms approved by City Council may be different than what is requested. This is a request to help low income households be able to purchase a new house and stay within affordability guidelines. We are requesting a grant program that allows a household at or below 80% of the area median income to get 20% of the purchase price towards the down payment on a new home. The grant would be forgiven 10% per year for the first 5 years. After 5 years up to 10 years 50% of the grant money would be returned to the city if the home was sold or refinanced. After 10 years the grant would be fully forgiven. The city would secure their interest by placing a second mortgage on the home behind the conventional financing. The developer will also consider contract sales to help those borrowers who may have some credit challenges and will work with the city to set up parameters. The buyers of the 10 homes priced at $180,000 will each receive $36,000 and borrow $144,000. At 5% interest for 30 years the payment is $773. With taxes and insurance the total payment is estimated at $995 which is affordable for a family of 4 at 60% of the area median income. The buyers of the 10 homes priced at $150,000 will each receive $30,000 and borrow $120,000. At 5% interest for 30 years the payment is $644. With taxes and insurance the total payment is estimated at $835 which is affordable for a family of 3 at 50% of the area median income. Housing 2 FY11 CDBG Funding Request 10a. Please complete the table below showing the types and amounts of funding being requested for the proposed project. Please check the appropriate box if the funding source is committed. If not committed, please indicate when the applicant will apply for funds in Question #16, Project Timetable. Funding Source & Type of Funding Interest Building Acquisition, by home owner $3,300,000 Funds: Amount Rate Amortization Term Committed? Iowa City CDBG Funding $660,000 0% Grant 10 yrs OYes ONO (public) $ Reserves $ Other (please specify): $ State of Iowa HOME or $ TOTAL (Must equal TOTAL in 10a.) $3,300,000 OYes ONO CDBG (public) IFA — Low Income Housing $ OYes ONO Tax Credits (private) Bank Loan (private) $2,640,000 5% 30 yrs 10 yrs Oyes ONO Volunteer Labor and /or In- $ OYes ONO kind Donations (private) Applicant Contribution of $ OYes ONO Equity (private) Other Public Resources (please list) $ OYes ONO Other Private Resources (please list) $ OYes ONO TOTAL $3,300,000 10b. Please provide the uses of funds for the project. Uses of Funds Amount Acquisition: Building Acquisition, by home owner $3,300,000 Land Acquisition $ Site Improvements $ Construction $ Professional Fees $ Construction Finance $ Permanent Finance $ Developer Fee $ Reserves $ Other (please specify): $ $ TOTAL (Must equal TOTAL in 10a.) $3,300,000 Housing 3 FYI I CDBG Funding Request Amount of Private Funds $2,640,000 (a) Amount of Public Funds $660,000 (b) Total Project Funding $3,300,000 (c) a + b Number of bedrooms 50 (d) Total public cost per bedroom $13,200 (e) b - d Total Cost Per Unit $165,000 (t) c _ # Units 11. If volunteers are used please describe how these volunteers are utilized for the proposed activity and estimate the amount of volunteer time and value dedicated to the identified tasks. Unskilled labor hours x $10 per hour = $ Skilled labor ( ) hours x $_ per hour = $ Skilled labor ( ) hours x $_ per hour = $ Skilled labor ( ) hours x $_ per hour = $ Tota I (include in ZO a) $ 12. Please identify any identity of interest (IOI) relationships with the applicant and /or project owner, i.e. General Partner has a financial interest in the construction company, etc. None 13. Does the proposed project pay full property taxes? 'XYes 0 No If YES, what is the estimated value of taxes generated from this Project? $41,880 If NO, does the proposed project make a Payment In Lieu Of Taxes or pay at a reduced rate? C)Yes (:)No If yes, what is the percent of full taxes paid? % and amount paid is $ 14. If partial funds are awarded, will the project/program continue? )qYes 0 No If yes, at what level? We are able to build the house and participate in the program if approved in increments of 2 units, as they are attached. We could participate at a level of 2 units, 4 units etc. up to and including 20 units. 15. Program regulations require a 25% match for HOME funding. Describe how your organization or the proposed project will help the City of Iowa City meet this match requirement for local HOME funds. Not Applicable. Housing 4 FY11 CDBG Funding Request 16. Briefly outline the proposed timetable for the commitment and expenditure of the funding being requested (include other project factors such as rezoning, construction schedule, or application(s) for other funding). applicant plans to apply for funds not committed to the project yet, include the anticipated date for application. Please Note: If funded, this schedule will be used for any project agreement for the use of CDBG funding. Date: Description of Activity: _Fall 2011 Project is platted and ready to go. Development will start in the fall of 2011 _Spring 2012 Lots will be complete and units ready to build. Units will be built as buyers are identified with 2 units to be built right away as models. If 17. Briefly describe the project goals for providing or assisting in the preservation or expansion of affordable housing in Iowa City, and how the project will benefit the targeted income group (e.g. goal of providing rental housing to lower income persons without use of Section 8 rental assistance or level of subsidized rent compared to market rates). Project will increase the availability of new construction owner occupied homes that are handicapped accessible, energy efficient and affordable to households between 50% and 80% of the area median income. 18. To help promote the efficient use of federal, state and local funding please describe how the project will maintain long -term (in excess of CDBG \HOME program requirements) or permanent affordability; and, show how the project will provide for affordable housing at rental rates or purchase price for owner - occupied housing units lower than those in the existing market. If the owners of the homes that received the grant do not continue to live in the home for 10 years the city will receive back no less than 50% of the grant money to be available for future affordable housing initiatives. According to Realtor.com, there is only 1 home in Iowa City new construction at or under $180,000 and 0 homes at $150,000. Reminder: Rental housing projects MUST complete and submit the proforma (excel format) provided by the City with this application. Rental housing applications submitted without the City's proforma will not be considered. Housing 5 FYI I CDBG Funding Request 19. An objective of the City of Iowa City Comprehensive Plan is to promote a diversity of housing types and mix of all income levels. Please describe the target population this project is to serve, the current level of low - moderate income households in the Census Tract \Block Group and how the project will promote diversity within the neighborhood. This project will attract elderly households, small households and working families at or below 80% of the area median income. The project will provide quality new construction at a price point found nowhere else in town. The direct neighborhood is a mixture of single family, attached single family, duplexes and townhomes and will provide a fresh feel to the SE side of town with the use of alleys and a neighborhood common area. The census tract is 18, block group 1 and 55.8% of the households are low to moderate income. Many units in the area are multi - family rental units (Dolphin Point Enclave, Lakeside Dr., Saddlebrook) in addition there are 2 large manufactured home parks with leased land directly adjacent (Bon -Aire, The Paddock at Saddlebrook). These homes will add the stability of owner occupied households to the neighborhood. 20. On the map provided, please show the location of the proposed project. 21. Also, please indicate the number of persons or households that will be served by the proposed project by income category. (Please Note: If this application is funded, the information in this table will be used as income targeting for the CDBG \HOME Agreement). Number between 0 - 30% median income Number between 31 — 50% median income Number between 51 - 80% median income Number between 80 - 100% median income Number over 100% median income households (a) households (b) _20 households (d) households (e) households (f) Total _20 households (g) Percent LMI _100 (a +b +c +d) _ g 22. Please select one main objective, outcome, and output indicator for the proposed project. Second, provide specific project indicators in the narrative (i.e. number of units to be rehabilitated, number of households assisted, number of units constructed, etc.) Objective: 0 Suitable living environment Outcome: 0 Availability /accessibility Output Indicator: 0 Persons 0 Decent affordable housing Affordability 0 Households Creating economic opportunities 0 Sustainability 10 Housing units Housing 6 FY11 CDBG Funding Request 23. Please list amount of CDBG and /or HOME funds received within the last four City fiscal years and the status of the project(s) undertaken. (City fiscal year July 1 to June 30) Fiscal Year Funds Recv'd Budgeted Amount Amount Expended (as of 10/29/10) Date All Units Completed FY07 (July 2006 — June 2007) $ $ FY08 (July 2007 - June 2008) $ $ FY09 (July 2008 - June 2009) $ $ FY10 (July 2009 - June 2010) $ $ 24. Is the applicant (including partners, co- applicants, etc.) currently in compliance with all federal, state and local laws, rules and regulations, including any CDBG and /or HOME funded projects? )* Yes 0 No If "NO" or a matter is currently in litigation please give the name of the case and explain the basis for the case. 25. If the applicant has not received HOME /CDBG funds in the past three years, please provide evidence of your organization's capacity, financial skills, commitment and /or experience to undertake and complete the proposed project within the established timetable and budget. The 4 principle owners of MBHG, LLC have many years of experience in real estate development including the development of Saddlebrook, Whispering Meadows Parts 2 and 3 and the Sycamore Apartments. MBHG, LLC currently owns the land for this proposed project and will not have any issues getting financing for the development of this project or the construction of the units. 26. Please describe your organizations structure, officers and staff, as it relates to the overhead cost for this project. Members are Jim Miller, Steve Bright, Brad Houser and Steve Gordon. AM Management provides the management for the entity. AM Management is owned by Jim Miller. Steve Gordon is the VP of AM Management and provides direct oversight of MBHG, LLC. None of the members of MBHG, LLC receive a salary or payment for services from the company and only share in the profits and losses. AM Management receives a reasonable management fee for oversight of the company. Steve Gordon is a salaried employee of AM Management. Mousing 7 FY11 CDBG Funding Request Z Y I t ka His - I I y , i .N - 116'a rz gs aF 3,76 kYLZ "96 Oq 4C cB Oz w IS) 9 w (3 fy W 1O 1 WW vip '.Rj� Ile, 5 z gl 44- Cz iQ Mr zo, Oq 4C cB Oz w IS) 9 w (3 fy W WW vip '.Rj� 5 z Oq 4C cB Oz w IS) 9 w (3 fy W WW vip '.Rj� Oq 4C cB Oz w IS) 9 w (3 fy � \ \I §§ { 2 a' ,I �\ �q A t � :• | | |,� ' ;!! - , �,, }| |dull 4 / zz l & !( \; I� )i( �) r--� ` )| \/§ \§ I �a ) j ƒ�§ \q�§ U/§ woo SAkO(IVHW XoodgF[-IGCI Cc vs I�E vw lNgWFIDVNVWWV 10 11WIE oiq Go 'IST zl- iww RN -; Q) 51 g M 91, w , -, 8. Uqq a d IV 2 JV14 1w tt 92 L Z1, op Q. 1:71- 7777 77777 MIS ge a: : ly LL z � r Housing - L III Project Name: The Shelter House Lodge "'- CITY OF IOWA CITY Type of Project (check onek 0 Homeownership CSI Rental 0 Rehabilitation 1. Lead Applicant Name: Shelter House C munity Shelter and Ti Signature (please use blue ink): Applicant Address: P.O. Box 3146, Iowa City, IA 52244 Contact Person: Christina M. Canganeiii Title: Executive Director Phone Number: (319)338 -5416 ext. 200 Fax Number: (319)358 -7132 E -mail Address: crissy @shelterhouseiowa.org DUNS Number: 827151770 2. Secondary Applicant (if applicable): Signature (please use blue ink): Applicant Address: Contact Person: Title: Phone Number: Fax Number: E -mail Address: 3. Type of Applicant (check ones Community Housing Development Organization 0 Private for - profit, individual or partnership applicant 4. Amount of CDBG Funds Requested: $275,000 a 0 Private non - profit organization 0 Public Organization 5. Did you attend the Applicant Workshop? Not Applicable 6. Provide a brief description of the proposed project & complete the table below. Shelter House intends to purchase a condominium /duplex in order to install a Lodge which will provide PERMANENT supportive housing for six unrelated adults, all of whom will have been chronically homeless and diagnosed with a disabling serious persistent mental illness. Preference will be given to military veterans. The proposed project constitutes a Fairweather Lodge, a housing model for persons with chronic mental illnesses that was conceived by psychologist George Fairweather in the 1960s. Working lodges have been in successful operation for about 50 years; currently there are at least 90 lodges in 16 states (none in Iowa). Training is currently underway with the initial cohort of Lodge trainees. As the City of Iowa City has recently released grant rehab funds intended for the initial Lodge, Shelter House may now finally proceed with the rehab work which has prohibited the project from moving forward. Work will be complete by the end of July and trainees are on schedule for move -in by early August. The Lodge Model is based on the premise that people who live and work together, and have significant control over their lives, can overcome homelessness and recover from their mental illnesses, becoming active and contributing members of the community. It is a form of psychosocial rehabilitation that incorporates the basic principles of group process and peer support. Research has shown that many clients fail in individual housing placements because of social isolation and lack of consistent service support, in addition to affordability problems. In contrast, the lodge experience has shown that self - governing group living with built -in peer support provides functional control of mental illness symptoms, and combats homelessness by creating housing conditions that residents trust. In order for the purchased property to be consistent with the housing model, some modification will be required. Specifically, the properties will be opened in the center converting the two adjacent garages to a common living area, thereby combing the two units into a modified single family home. One of the kitchens will be reduced to a kitchenette as there should be one primary kitchen used for meal preparation, which will be a shared activity, and a dining room created. One of the four bedrooms on the ground floor and the adjoining bathroom will be refurbished to satisfy ADA requirements. In all probability the existing HVAC and electrical systems will require modification to support the conversion of the garages to living space and the bathrooms may or may not require some modest updates replacing toilets and flooring. Egress in basement bedroom windows must be ensured. A typical lodge is an affordable dwelling for 4 -8 persons (we propose 6) who share in running the home, including domestic chores /maintenance and buying and preparing food. The residents make their own house rules and enforce them, including such matters as room upkeep, personal cleanliness, and taking medications. Lodge residents typically are employed at least part-time, usually in a group business. From their income, they pay for rent and operating expenses, but some costs may need subsidy. Shelter House will provide the initial stabilizing shelter and training in the new shelter facility located at 429 Southgate Avenue. There are 14 transitional beds designated for homeless veterans. Qualifying veterans may stay at the shelter for as much as two years but the average length of stay is anticipated to be six months. During this time, candidates for the lodge will receive wrap around services, life skills and job training through the SH's STAR program. Candidates will be required to demonstrate certain competencies in self care, basic living skills and group decision making, establish med compliancy, and demonstrate an earnest desire to work. Upon graduation to the lodge, staff supervision changes in that staff will function only as mentors and advisors, mediating and helping in emergencies; staff will be available continually on call. SH sets eligibility criteria and recruits residents, but admittance requires approval by vote of existing residents. Shelter House staff will provide oversight and management with at least 0.25 FTE for house coordination and up to one fulltime supervisor /trainer at the shared work site (janitorial service has traditionally been the preferred employment sector). This project will rely mainly on current partnerships with: the Dept. of Veteran's affairs, Iowa City Public Housing Authority, National Alliance on Mental Illness of Johnson County, and Tasks Unlimited (Minneapolis, MN). Housing 1 FYI I CDBG Funding Request Total Number of Units Proposed: Type of Units: Number of Units: 1 —Single Room Occupancy —Efficiency 1 - Bedroom 2 - Bedroom 3 - Bedroom 4+ Bedrooms Single Family Home with 6 bedrooms 7. Tell us why this project is needed (include information from CITY STEPS, the Iowa City Metro Area Affordable Housing Market Analysis (December 2007) by Mullin & Lonergan Associates, and /or other market studies that identifies the need for this type of housing in Iowa City and how it will fill a gap in the City's housing market. CITY STEPS identifies housing needs for non - student renter households up to 50 %of MFI as a high priority need (page 91 CITY STEPS). This project proposal falls under this priority need as it is for Rental Permanent Supportive Housing with all potential residents falling well below 50% MFI. There is in fact no housing in the area for the target population (chronically homeless) that provides permanent housing linked to essential supportive services. CITY STEPS further indicates that there is a need to, "Provide services to support special needs populations in non - facility based care environments." (page 93 CITY STEPS). The Johnson County Local Homeless Coordinating Board is focused on providing an adequate supply of permanent supportive housing in particular for the chronically homeless. Per CITY STEPS 2011 -2015 (p71- 72): "To the extent possible, and as funding is available, the City is actively supporting the LHCB Continuum of Care's Strategic Plan." This proposal addresses three out of the five objectives specific to addressing chronic homelessness: ■ Create new permanent housing beds for chronically homeless persons. Action Step: Develop 12 -18 permanent housing beds designated for chronically homeless persons living in the Johnson County area. ■ Increase percentage of homeless persons staying in permanent housing over 6 months to 71 %. Action Step: Implement and identify process and procedures for measuring and evaluating 56 lengths of stay in permanent housing for homeless persons exiting Continuum of Care Programs. ■ Increase percentage of homeless persons becoming employed by 11 %. Action Step: Maintain investment in supportive services necessary for developing employability skills, engagement in mainstream resources and for making permanent employment placements. Johnson County (a) sits astride the intersection of two major interstate highway systems (a gravitational pull for the homeless), and (b) contains three major hospitals, each with a psychiatric inpatient unit (a disproportionate number of mentally ill persons settle here); we add (c) that one of the institutions is the Veterans Administration Hospital (attracting veterans who are in our target population). This proposal helps to fill an existing gap in the City's housing market with a Fairweather Lodge, affordable, rental, permanent and supportive housing for six persons with histories of chronic homelessness and disabling mental illness. The proposed lodge provides a non - traditional housing option in a housing market that resists high - density, multi - family, affordable dwellings for the low- income population. It lends itself well to a scattered -site approach, blending well into existing residential neighborhoods. Whereas the upfront costs may be at the higher end, the lodge counterbalances costs by providing an efficient housing solution for what would otherwise be six separate households. The IOWA CITY METRO AREA AFFORDABLE HOUSING MARKET ANALYSIS (December, 2007) by Mullin and Lonergan Assoc. (page 60) recommends the following: • Ensure that all new housing, including rentals and housing for persons of low and moderate income, adheres to the highest possible standards for planning, design and construction. • Housing styles and development techniques that conserve land and increase efficiency are to be encouraged. housing 2 FYI I CDBG Funding Request The proposed Shelter House lodge meets both of these recommendations. The project is further warranted on a human service level. Shelter House has provided more than 25 years of service to the community. In recent years we have been successful in moving chronically homeless individuals to somewhat more permanent housing by extending comprehensive support services. However, permanence in the sense of long -term habitation hasn't been achieved. Based on evidence from housing experiences in other metropolitan areas, we know that communal living with services tied to the housing, and training of the residents in cooperative living would greatly increase the success of those who fail in more traditional permanent housing (individual apartment /efficiency). The housing model we propose may not appeal to everyone, but it does create an option and opportunity that presently does not exist locally. A Continuum of Care system is designed to address the critical problems of homelessness through a coordinated community-based process of identifying needs and building a system to address those needs. The approach advanced in this proposal recognizes that homelessness is not entirely caused by lack of shelter, but also by an array of underlying unmet needs (physical, economic and social). The Shelter House Lodge embodies this approach in providing needed components for local Continuum of Care —a component that currently does not exist. 8. Please specify the one most applicable priority need and priority need level, as shown in the 2011 -2015 CITY STEPS Plan. Rental /Permanent supportive housing Priority Need 9. Please provide the requested loan terms and affordability period: High Priority Need Level (High, Medium or Low) 10a. Please complete the table below showing the types and amounts of funding being requested for the proposed project. Please check the appropriate box if the funding source is committed. If not committed, please indicate when the applicant will apply for funds in Question #16, Project Timetable. Funding Source & Type Funding Interest Loan Affordability of Funds: Principal Interest Amortization Period Yearly Iowa City CDBG /HOME Amount Rate (Years) (Years) Payment Terms $175,000 0% 20 years Grant or Requested* $100,000 0% 30 years Repayment to Forgivable Loan Funding (public) begin after yr 5 is Requested Terms $100,000 0% 30 years with 20 years $4,000 for 25 Requested* repayment to begin after yr 3 years TOTAL $350,000 begin after yr 5 10a. Please complete the table below showing the types and amounts of funding being requested for the proposed project. Please check the appropriate box if the funding source is committed. If not committed, please indicate when the applicant will apply for funds in Question #16, Project Timetable. Funding Source & Type Funding Interest of Funds: Amount Rate Amortization Term Committed? Iowa City CDBG /HOME $175,000 0% Grant OYes ONo Funding (public) Iowa City CDBG /HOME $100,000 0% 30 years Repayment to OYes ONo Funding (public) begin after yr 5 Other Private Resources $75,000 0% 30 years Repayment to OYes 0No begin after yr 3 TOTAL $350,000 Housing 3 FYI I CDBG Funding Request 10b. 11. Please provide the uses of funds for the project. Uses of Funds Amount Acquisition: (a) Building Acquisition $275,000 Land Acquisition $ Site Improvements $ Construction $ Professional Fees $ Construction Finance $ Permanent Finance $ Developer Fee $ Reserves $ Rehab and Accessibility: $75,000 TOTAL (Must equal TOTAL in 10a.) $350,000 Amount of Private Funds $ 75,000 (a) Amount of Public Funds $ 275,000 (b) $ Total Project Funding $ 350,000 (c) a + b Number of bedrooms Total (include in 10 a.) 6 (d) Total public cost per bedroom $ 45,833 (e) b - d Total Cost Per Unit $ 58,333 (t) c _ # Units *NOTE: Shelter House will provide wrap around services including a .25 FTE Lodge Coordinator and a .75 FTE Job Site Supervisor /Trainer at a total estimated cost of $41,298. Funds required for these activities beyond the project's own cash flow are to be considered leverage or match for the Project and committed. If volunteers are used please describe how these volunteers are utilized for the proposed activity and estimate the amount of volunteer time and value dedicated to the identified tasks. Unskilled labor hours x $10 per hour = $ Skilled labor ( ) hours x $_ per hour = $ Skilled labor ( ) hours x $_ per hour = $ Skilled labor ( ) hours x $_ per hour = $ Total (include in 10 a.) $ 12. Please identify any identity of interest (IOI) relationships with the applicant and /or project owner, i.e. General Partner has a financial interest in the construction company, etc. Housing 4 FYI I CDBG Funding Request Not Applicable 13. Does the proposed project pay full property taxes? 0 Yes 2 No If YES, what is the estimated value of taxes generated from this Project? $ If NO, does the proposed project make a Payment In Lieu Of Taxes or pay at a reduced rate? OYes QNo If yes, what is the percent of full taxes paid? % and amount paid is $ 14. If partial funds are awarded, will the project/program continue? QYes 0 No If yes, at what level? Should partial funds be awarded, Shelter House will continue to work to identify alternative funding sources until acquisition funds are secured. No further progress on the project can be made until that time. The award of partial funds will ultimately cause a delay in the proposed timeline. 15. Program regulations require a 25% match for HOME funding. Describe how your organization or the proposed project will help the City of Iowa City meet this match requirement for local HOME funds. Not Applicable. 16. Briefly outline the proposed timetable for the commitment and expenditure of the funding being requested (include other project factors such as rezoning, construction schedule, or application(s) for other funding). If applicant plans to apply for funds not committed to the project yet, include the anticipated date for application. Please Note: If funded, this schedule will be used for any project agreement for the use of CDBG funding. Date: Description of Activity: July 1, 2011 Funds Committed September 1, 2011 Property Purchased and Site Control Established October 1, 2011 Begin Rehab Project October 31, 2011 Complete Rehab Project November 1, 2011 Begin Installation of Furnishings November 30, 2011 Complete Installation of Furnishings December 1, 2011 Graduates from Lodge Training Program Move -In to Lodge 17. Briefly describe the project goals for providing or assisting in the preservation or expansion of affordable housing in Iowa City, and how the project will benefit the targeted income group (e.g. goal of providing rental housing to lower income persons without use of Section 8 rental assistance or level of subsidized rent compared to market rates). Each person in the target population has a disabling serious persistent mental illness and qualifying income levels of 0 -30% median. The completed project would immediately expand affordable housing for six adults. As this is designed to be permanent housing, it would reduce the homeless population by six. Lodge residents work at least part-time and pay rent. That pooled income to the lodge would pay maintenance and some staff costs and repay, the 0% interest loans from the City of Iowa City and the Housing Trust Fund of Johnson County thus allowing for funding for future affordable housing projects. Housing 5 FY11 CDBG Funding Request The Shelter House Lodge will: • Provide a safe, healthy and caring environment, which reinforces the recovery process. • Be part of the plan for managing symptoms and promoting good mental health. • Be available as long as the participant wants. • Assist people with psychiatric disabilities to increase their community success and raise their social status through employment, through accumulating wealth, and through direct (not third - party) consumerism. • Encourage participants to develop meaningful social roles in both the Lodge and the larger community. • Resemble a healthy family. • Encourage autonomy commensurate with the individual's behavioral performance, with the ultimate goal of full autonomy. 18. To help promote the efficient use of federal, state and local funding please describe how the project will maintain long -term (in excess of CDBG \HOME program requirements) or permanent affordability; and, show how the project will provide for affordable housing at rental rates or purchase price for owner - occupied housing units lower than those in the existing market. The objective of the Shelter House Lodge is to provide a permanent, supportive, and affordable solution to housing low- income, chronically homeless people. The combined low rent from six working adults should be enough to maintain the property indefinitely as a dwelling. In any case, the applicants give full assurance that rents will remain affordable through the requisite affordability period and forward through the life of the lodge building. 19. An objective of the City of Iowa City Comprehensive Plan is to promote a diversity of housing types and mix of all income levels. Please describe the target population this project is to serve, the current level of low - moderate income households in the Census Tract \Block Group and how the project will promote diversity within the neighborhood. The individuals to be housed are to be chosen from a population with a history of homelessness and chronic mental illness. Each will work, but because of differing functional capacities, level of income will vary within the house as in the neighborhood. The preferred property to be purchased for rehabilitation is hoped is a condominium /duplex to be located in an established neighborhood in Iowa City. The neighborhood should be mixed in housing type and household income. Shelter House is committed to creating a dwelling that anyone would agree would be a neighborhood asset. 20. On the map provided, please show the location of the proposed project. The exact location for the proposed project has not been identified. 21. Also, please indicate the number of persons or households that will be served by the proposed project by income category. (Please Note: If this application is funded, the information in this table will be used as income targeting for the CDBG \HOME Agreement). Number between 0 - 30% median income Number between 31— 50% median income Number between 51 - 80% median income Number between 80 - 100% median income Number over 100% median income 6 households (a) households (b) households (d) households (e) households (f) Total 6 households (g) Percent LMI 100% (a +b +c +d) = g Housing 6 FY11 CDBG Funding Request 22. Please select one main objective, outcome, and output indicator for the proposed project. Second, provide specific project indicators in the narrative (i.e. number of units to be rehabilitated, number of households assisted, number of units constructed, etc.) Objective: 0 Suitable living environment Q Decent affordable housing 0 Creating economic opportunities Outcome: 0 Availability/acoessibility Q Affordability 0 Sustainability Output Indicator: 21 Persons 0 Households 0 Housing units 23. Please list amount of CDBG and /or HOME funds received within the last four City fiscal years and the status of the project(s) undertaken. (City fiscal year July 1 to June 30) Fiscal Year Funds Recv'd Budgeted Amount Amount Expended (as of 10/29/10) Date All Units Completed FY07 (July 2006 — June 2007) $ 4,900 $ 4,900 6/30/2006 FY08 (July 2007 - June 2008) $ 7,500 $ 7,500 6/30/2008 FY09 (July 2008 - June 2009) $ 2,000 $ 2,000 6/30/2009 FY10 (July 2009 - June 2010) $ 313,728 $ 75,420 11/12/2010 24. Is the applicant (including partners, co- applicants, etc.) currently in compliance with all federal, state and local laws, rules and regulations, including any CDBG and /or HOME funded projects? 0 Yes 0 No If "NO" or a matter is currently in litigation please give the name of the case and explain the basis for the case. 25. If the applicant has not received HOME /CDBG funds in the past three years, please provide evidence of your organization's capacity, financial skills, commitment and /or experience to undertake and complete the proposed project within the established timetable and budget. Not Applicable 26. Please describe your organizations structure, officers and staff, as it relates to the overhead cost for this project. Shelter House maintains low overhead costs. Administrative costs are less than 15% of operations. Oversight of the lodge project is expected to be no more than 0.25 FTE for Property Management and Program Coordinator and 1 FTE for a Job site Supervisor/Trainer. The lodge Coordinator reports to the Program Development Director who in turn reports to the Executive Director. The Director reports to the Shelter House Board of Directors (an 18- member volunteer body). Housing 7 FYI CDBG Funding Request N of tV O h n N b M O O b n CD ooli Oi b h o Oi N ? ^ O h O n ni 6 � ni M n T b n tp nj 0 M �p Q Q } N M M N iF O O1 1� IA qj Oi i O O UI pp�p tn) p Oi Q -i W W � W W W N W M b9 M eg q 69 q 69 b9' n b h n Q N n e.Aq b N h ? 21i h Q O A N N W M b9 M fq M N cl cli of N 16 O # h a N M b9 M M! W W M 6q9 M ' iq b9 tq No h O O Oi I� N b �D O O M 1� 4i c IA q QQ n A N b w) Oi O b M �9 W b9 K W b9 W W W tV W ui 49 W �9 W M N n �') h b ? m Q w N ON. n Q tW� O O N � M M h O Q h aD ID ci n 1� N h it O N tq M M! 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M W W N W W W W K bi aD pW pO O 0 aap Go 16 nj a0 YYtp11 j � 1 b O K as W \� N W W aq aq W ey W w M a9 cl 14 h c Q } a[i b9 K V! �" bq aq W 19 M b9 M ty W K 69 N aV } r h h h h l +a W W tq ary W W . . - - - M - n n ^ 0 ^ ^ ^ O n Q n n h h M e ^ ^ w w w w w w w w w w ev w es w 0 0 0 0 0 0 0 of of fiziAl W W K w w w w tg a9 w yq yi dy yq ^ � R # M9 !9 M9 M W 69 b9 69 a•! b9 b9 W tq W Project Name: Successful Living Church Street Housing Rehabilitation Type of Project (check onek O Homeownership O Rental X Rehabilitation 1. Lead Applicant Name: Signature (please use blue Housing Applicant Address: 2406 Towncrest Drive, Iowa City, Ia 52240 Contact Person: Roger Goedken Title: Executive Director Phone Number: (319) 356 -0947 Fax Number: (319) 358 -6807 E -mail Address: rrc oedkenca)icsuccess.oro DUNS Number: 055386861 2. Secondary Applicant (if applicable): Signature (please use blue ink): Applicant Address: Contact Person: Title: Phone Number: Fax Number: E -mail Address: 3. Type of Applicant (check one, O Community Housing Development Organization O Private for - profit, individual or partnership applicant 4. Amount of CDBG Funds Requested: $85,014 X Private non - profit organization O Public Organization Housing 1 FYI CDBG Funding Request S. • Did you attend the Applicant Workshop? Not Applicable 6. Provide a brief description of the proposed project & complete the table below. Successful Living operates three supportive housing facilities in Iowa City and is the only non - profit organization that provides affordable supportive housing in Johnson County. Incorporated in 1998, Successful Living's mission is to support members of our community through mental health recovery. One method we use is the provision of housing opportunities where clients can live and work with their Counselors to learn the necessary life skills with the goal of transitioning to more permanent housing. The project proposed for 214 Church Street will preserve 8 units of affordable supportive housing for those with special needs (Persons with a Chronic Mental Illness who also may have co- occurring substance abuse issues) and assist in the transition of homeless persons into housing. CITY STEPS has identified life skills, transitioning persons from homelessness, working with persons with special needs and mental health services as priority items. Cost assessments of the needed repairs are based upon estimates from Randy Wessling Construction L.L.C., 6/6/2011 — 6/8/2011. Total Number of Units Proposed: Type of Units: Number of Units: Single Room Occupancy 8 Efficiency 1 - Bedroom 2 - Bedroom 3 - Bedroom 4+ Bedrooms 7. Tell us why this project is needed (include information from CITY STEPS, the Iowa City Metro Area Affordable Housing Market Analysis (December 2007) by Mullin & Lonergan Associates, and /or other market studies that identifies the need for this type of housing in Iowa City and how it will fill a gap in the City's housing market. Successful Living is the only non - profit that provides affordable supportive housing in Johnson County. Our cost assessments are based upon estimates from Randy Wessling Construction L.L.C., 6/6/2011— 6/8/2011. Church Street house is a home that has been adapted to serve the needs of the clients we serve, who represent persons at the lowest economic scale and who are significantly disadvantaged with chronic mental illness and often a history of substance abuse, federal criminal records and /or other barriers preventing them from being functioning members of the community. Residents are in need of affordable housing and Supportive Living Skills in order to learn to become more independent and prevail over their personal barriers. Successful Living has maintained the rent significantly below market pricing in order to minimize the financial hardships that our clients face, who have little to no income, supports from friends or family or from other services. This serves as a basic need towards living, recovery and, ultimately, independence. This project will provide the necessary rehabilitation items to our facility at 214 Church Street: 1) The roof and gutter system is overdue for replacing which is causing water and mold damage inside the house. Completely remove existing shingles, gutters and downspouts and replace to code. Add additional insulation to attic (r -30 over current level of insulation) and install new vents. Housing 2 FY11 CDBG Funding Request 2) , Existing HVAC system is inadequate and inefficient, resulting in areas of the house to require open widows and fans to more properly cool certain areas of the house. The project will replace all window A/C units and fans with a central air cooling system. 3) Windows are outdated and inefficient. Replace all windows to improve efficiency of HVAC and functionability and comfort of residents. 4) Floors consist of bare subfloors and wood flooring which has aged to a point where splintering has occurred. One area is softened and sunken. This project will repair flooring in rooms and common areas replacing with new underlayment and covered with high traffic carpeting or vinyl. One bathroom floor will also be replaced and two new toilets installed. 5) The one bathroom on the first floor is accessible only through one of the residents' room. This project will provide an additional access point to a common area of the house and address structural issues with this bathroom. 6) Walls are in need of repair, showing wear, staining and age. Paint where possible and replace where needed. 7) Remove rubber roof from porch and install new roof to code. 8) Basement — Spray mold -kill, remove and replace paneling, drywall and floor tiles which are damaged. 8. Please specify the one most applicable priority need and priority need level, as shown in the 2011 -2015 CITY STEPS Plan. Affordable Housing High Priority Need 9. Please provide the requested loan terms and affordability period: Priority Need Level (High, Medium or Low) *Financing terms will be based on project feasibility and the ability to repay the loan. Terms approved by City Council may be different than what is requested. Housing 3 FYI I CDBG Funding Request Loan Affordability Principal Interest Amortization Period Yearly Amount Rate (Years) (Years) Payment [ Terms $55,000 0 30 20 0 Requested* *Financing terms will be based on project feasibility and the ability to repay the loan. Terms approved by City Council may be different than what is requested. Housing 3 FYI I CDBG Funding Request 10a. Please complete the table below showing the types and amounts of funding being requested for the proposed project. Please check the appropriate box if the funding source is committed. If not committed, please indicate when the applicant will apply for funds in Question #16, Project Timetable. Funding Source & Type of Funds: Funding Amount Interest Rate Amortization Term Committed? Iowa City CDBG Funding (public) $ 55,000 $ 9,352 Site Improvements 30 20 DYes X No State of Iowa HOME or CDBG (public) $ Construction Finance $ Permanent Finance OYes No IFA — Low Income Housing Tax Credits (private) $ Reserves $ Other (please specify): DYes No Bank Loan (private) $ TOTAL (Must equal TOTAL in 10a.) $85,014.00 DYes No Volunteer Labor and /or In- kind Donations (private) $ OYes No Applicant Contribution of Equity (private) $ DYes No Other Public Resources (please list) DYes No Other Private Resources (please list) $ 20,662 DYes X No TOTAL $85,014 10b. Please provide the uses of funds for the project. Uses of Funds Amount Acquisition: Building Acquisition $ Land Acquisition $ Site Improvements $ Construction $75,662 Professional Fees $ Construction Finance $ Permanent Finance $ Developer Fee $9,352 Reserves $ Other (please specify): $ $ TOTAL (Must equal TOTAL in 10a.) $85,014.00 Housing 4 FY11 CDBG Funding Request Amount of Private Funds $ 20.662 (a) Amount of Public Funds $64.352 (b) Total Project Funding $85,014 (c) a + b Number of bedrooms 8 (d) Total public cost per bedroom $8044 (e) b - d Total Cost Per Unit $10.626 (f) c _ # Units 11. If volunteers are used please describe how these volunteers are utilized for the proposed activity and estimate the amount of volunteer time and value dedicated to the identified tasks. Unskilled labor — Trash Removal 35 hours x $10 per hour = $ 350 Skilled labor ( ) hours x $_ per hour = $ Skilled labor ( ) hours x $_ per hour = $ Skilled labor ( ) hours x $_ per hour = $ Total (include in 10 a.) $ 350 12. Please identify any identity of interest (I0I) relationships with the applicant and /or project owner, i.e. General Partner has a financial interest in the construction company, etc. None 13. Does the proposed project pay full property taxes? O Yes X No If YES, what is the estimated value of taxes generated from this Project? $ If NO, does the proposed project make a Payment In Lieu Of Taxes or pay at a reduced rate? OYes XNo If yes, what is the percent of full taxes paid? _% and amount paid is $ 14. If partial funds are awarded, will the project/program continue? XYes O No If yes, at what level? Repairs are prioritized with the most critical to least. Depending upon level of funding, the roof /gutters will be repaired /replaced first to address areas of structural integrity then the various areas of concern that affect the residents directly, such as cooling, flooring, walls, areas of accessibility and usability. Housing 5 FY11 CDBG Funding Request 15. Program regulations require a 25% match for HOME funding. Describe how your organization or the proposed project will help the City of Iowa City meet this match requirement for local HOME funds. Not Applicable. 16. Briefly outline the proposed timetable for the commitment and expenditure of the funding being requested (include other project factors such as rezoning, construction schedule, or application(s) for other funding). If applicant plans to apply for funds not committed to the project yet, include the anticipated date for application. Please Note: If funded, this schedule will be used for any project agreement for the use of CDBG funding. Date: Description of Activity: 7/1/2011 CDBG Award 7/15/2011 Select Contractor(s) — Receive Bids 8/1/2011 Begin clean uo and trash removal of areas of repair, where needed 9/1/2011 Begin Roof Tear -off and Replacement 9/15/2011 Begin HVAC Installation and Window Replacement 11/15/2011 Begin demolition /construction of interior areas (floors walls) move residents as needed to facilitate renovation. 11/30/2011 Complete HVAC Installation and Window Replacement 12/15/2011 Complete Roof and Gutter Renovation 5/31/2012 Complete Interior Renovation, move residents back into former rooms 17. Briefly describe the project goals for providing or assisting in the preservation or expansion of affordable housing in Iowa City, and how the project will benefit the targeted income group (e.g. goal of providing rental housing to lower income persons without use of Section 8 rental assistance or level of subsidized rent compared to market rates). This project will preserve 8 units of housing at below market rates for persons with Chronic Mental Illness and who may have other significant barriers These persons will benefit from the provision of housing within the context of a supported community Living environment. Without basic, suitable housing, addressing these barriers is made significantly more difficult. 18. To help promote the efficient use of federal, state and local funding please describe how the project will maintain long -term (in excess of CDBG \HOME program requirements) or permanent affordability; and, show how the project will provide for affordable housing at rental rates or purchase price for owner - occupied housing units lower than those in the existing market. The history and ongoing mission of Successful Living has been and continues to be s to provide be/ow- market -rates for housing for persons with Chronic Mental Illness: As it is clear to us that having a suitable Housing 6 FYI I CDBG Funding Request place to live is a critical component to mental health recovery, we are committed to keeping our housing units available in this manner. Reminder: Rental housing projects MUST complete and submit the proforma (excel format) provided by the City with this application. Rental housing applications submitted without the City's proforma will not be considered. 19. An objective of the City of Iowa City Comprehensive Plan is to promote a diversity of housing types and mix of all income levels. Please describe the target population this project is to serve, the current level of low - moderate income households in the Census Tract \Block Group and how the project will promote diversity within the neighborhood. This project provides housing for persons with chronic mental illness in an already diverse neighborhood located between student rentals and a historic single family owner occupied area 20. On the map provided, please show the location of the proposed project. 21. Also, please indicate the number of persons or households that will be served by the proposed project by income category. (Please Note: If this application is funded, the information in this table will be used as income targeting for the CDBG \HOME Agreement). Number between 0 - 30% median income Number between 31— 50% median income Number between 51 - 80% median income Number between 80 - 100% median income Number over 100% median income 8 households (a) households (b) households (d) households (e) households (f) Total 8 households (g) Percent LMI 100% (a +b +c +d) + g 22. Please select one main objective, outcome, and output indicator for the proposed project. Second, provide specific project indicators in the narrative (i.e. number of units to be rehabilitated, number of households assisted, number of units constructed, etc.) Objective: 0 Suitable living environment Outcome: 0 Availability/accessibility X Decent affordable housing 0 Creating economic opportunities X Affordability 0 Sustainability Housing 7 FY11 CDBG Funding Request Output Indicator: O Persons O Households X Housing units 23. Please list amount of CDBG and /or HOME funds received within the last four City fiscal years and the status of the project(s) undertaken. (City fiscal year July 1 to June 30) Fiscal Year Funds Recv'd Budgeted Amount Amount Expended (as of 10/29/10) Date All Units Completed FY07 (July 2006 — June 2007) $ $ FY08 (July 2007 - June 2008) $ $ FY09 (July 2008 - June 2009) $ $ FY10 (July 2009 - June 2010) $2500 $2500 6/30/2010 24. Is the applicant (including partners, co- applicants, etc.) currently in compliance with all federal, state and local laws, rules and regulations, including any CDBG and /or HOME funded projects? XYes O No If "NO" or a matter is currently in litigation please give the name of the case and explain the basis for the case. 25. If the applicant has not received HOME /CDBG funds in the past three years, please provide evidence of your organization's capacity, financial skills, commitment and /or experience to undertake and complete the proposed project within the established timetable and budget. 26. Please describe your organizations structure, officers and staff, as it relates to the overhead cost for this project. The Facility Coordinator and House Manager will monitor the project during construction. Our accountant will receive pay requests, analyze bills and make payments Overhead costs will be absorbed into the general operations for our housing units. 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C y' U-) 0 M H N C. .� - W x �' CO N N y Co N O C �0 H h N Q t, 07 U L', 0) U Co N W W ~ — x F- O1 N Q LL L 07 U O M., M to C i� C 0 F— J U U OCI� F- i ONp Q. FL L 8 C, cc 07 d co p', N U W J! Z M M M'., LL Z�'� xi ~'', N Q y m � p �'i d H' 2 M Cl) N N' O N e e a a a e V p ppyj� ppj� Go 0 �i O wr r ui (^O i N (gyp �. tq N'' Iq'I O r VN N y IpV ( ttpV fV fV O N ii❑'kk N N N N QNpp N N N N N N N N H '. N C O m of U UI N N 1p N' t7 th t7 p p qI } rl lM' } IV tV <V tV tN N N N fV tV fV } c N N r } M N N M Ili O 1 Housing Project Name: Successful Living Dubuque Street Housing Rehabilitation Type of Project (check onek O Homeownership 1. Lead Applicant Name: Signature (please use blu( O Rental X Rehabilitation Applicant Address: 2406 Towncrest Drive, Iowa City, Ia 52240 Contact Person: Roger Goedken Title: Executive Director Phone Number: (319) 356 -0947 Fax Number: (319) 358 -6807 E -mail Address: rgoedken@)icsuccess.ora DUNS Number: 055386861 2. Secondary Applicant (if applicable): Signature (please use blue ink): Applicant Address: Contact Person: Title: Phone Number: Fax Number: E -mail Address: 3. Type of Applicant (check ones O Community Housing Development Organization X Private non - profit organization O Private for - profit, individual or partnership applicant O Public Organization 4. Amount of CDBG Funds Requested: $68.546 Housing 1 FYI CDBG Funding Request 5: Did you attend the Applicant Workshop? Not Applicable 6. Provide a brief description of the proposed project & complete the table below. Successful Living operates three supportive housing facilities in Iowa City and is the only non - profit organization that provides affordable supportive housing in Johnson County. Incorporated in 1998, Successful Living's mission is to support members of our community through mental health recovery. One method we use is the provision of housing opportunities where clients can live and work with their Counselors to learn the necessary life skills with the goal of transitioning to more permanent housing. The project proposed for 716 South Dubuque Street will preserve 20 units of affordable supportive housing for those with special needs (Persons with a Chronic Mental Illness who also may have co- occurring substance abuse issues) and assist in the transition of homeless persons into housing. CITY STEPS has identified life skills, transitioning persons from homelessness, working with persons with special needs and mental health services as priority items. Cost assessments for the needed repairs are based upon estimates from Randy Wessling Construction L.L.C., 6/6/2011 — 6/8/2011. Total Number of Units Proposed: Type of Units: Number of Units: Single Room Occupancy 20 Efficiency 1 - Bedroom 2 - Bedroom 3 - Bedroom 4+ Bedrooms 7. Tell us why this project is needed (include information from CITY STEPS, the Iowa City Metro Area Affordable Housing Market Analysis (December 2007) by Mullin & Lonergan Associates, and /or other market studies that identifies the need for this type of housing in Iowa City and how it will fill a gap in the City's housing market. Successful Living's South Dubuque Street house is a home that has been adapted to serve the needs of the clients we serve, who represent persons at the lowest economic scale and who are significantly disadvantaged with chronic mental illness and often a history of substance abuse, federal criminal records and /or other barriers preventing them from being functioning members of the community. In addition to owning, managing and providing needed services at three houses, residents receive affordable housing and Supportive Living Skills in order to learn to become more independent and prevail over their personal barriers. Successful Living has maintained the rent significantly below market pricing ($335/mo) in order to minimize the financial hardships that our client's face, who have little to no income, supports from friends or family or from other services. This serves as a basic need towards living, recovery and, ultimately, independence. This project will provide the necessary rehabilitation items to our facility at 716 South Dubuque Street: 1) The roof has a hole in it preventing use of one room which has caused damage and mold problems and eventual partial structural failure. The gutter system also requires replacing which also contributes to water and mold damage inside the house. This project will completely remove existing shingles, gutters and downspouts and rubber roof and replace to code. Add additional insulation to attic (r -30 over current level of insulation) and install new vents. Housing 2 FY11 CDBG Funding Request 2) Existing HVAC system is inadequate and inefficient, and the A/C unit for 10 of the units has become stopped working and is beyond repair, causing difficult to intolerable living conditions for residents on this floor. The project will replace the A/C unit with a unit which is adequate to the task of cooling this level of the house. 3) Ceiling and walls throughout the house are in disrepair, with the ceiling on the top floor having propagated mold from the now failed A/C unit on this level and a hole in one room leaks significantly with precipitation. This project will repair the ceilings and walls having the major issues affecting tenants and the livability of the house. 4) Flooring throughout the common areas of the house are very old and are beyond cleaning /repairing from over -wear and stains from spills and bodily fluids. This project will repair flooring in common areas replacing with new underlayment and covered with high traffic carpeting or vinyl or repair the tile. 5) Basement kitchen is not readily useable in its current location. This project will remove and replace the location of the kitchen facilities to the main floor, allowing tenants to better utilize eating and cleaning facilities while also better utilizing the basement for independent and structured activities. 6) Some walls are in need of more minor repair, showing wear, staining and age. Paint where possible and patch where needed. 7) Remove mold. This project will remove and replace ceiling tiles, wall paneling and flooring where needed to keill and prevent mold from spreading. 8. Please specify the one most applicable priority need and priority need level, as shown in the 2011 -2015 CITY STEPS Plan. Affordable Housing High Priority Need 9. Please provide the requested loan terms and affordability period: Principal Amount Terms $50,000 Requested* Priority Need Level (High, Medium or Low) Loan Interest Amortization Rate (Years) 0 30 Affordability Period (Years) 20 10 Yearly Payment THIS REQUEST IS ALSO FOR A GRANT IN THE AMOUNT OF $6,854 FOR A DEVELOPER FEE. *Financing terms will be based on project feasibility and the ability to repay the loan. Terms approved by City Council may be different than what is requested. Housing 3 FY11 cvw r- unaing Kequesi 10a. Please complete the table below showing the types and amounts of funding being requested for the proposed project. Please check the appropriate box if the funding source is committed. If not committed, please indicate when the applicant will apply for funds in Question #16, Project Timetable. Funding Source & Type of Funds: Funding Amount Interest Rate Amortization Term Committed? Iowa City CDBG Funding (public) $50,000 $ 6,854 0 N/A 30 N/A 20 N/A Oyes X No State of Iowa HOME or CDBG (public) $ Construction Finance $ Permanent Finance OYes No IFA — Low Income Housing Tax Credits (private) $ Reserves $ Other (please specify): OYes No Bank Loan (private) $ TOTAL (Must equal TOTAL in 10a.) $75,400 Oyes No Volunteer Labor and /or In- kind Donations (private) $ Oyes No Applicant Contribution of Equity (private) $ ()Yes No Other Public Resources (please list) $ Oyes No Other Private Resources (please list) HTFJC $18,546 N/A N/A N/A OYes X No TOTAL $75,400 10b. Please provide the uses of funds for the project. Uses of Funds Amount Acquisition: Building Acquisition $ Land Acquisition $ Site Improvements $ Construction $68,546 Professional Fees $ Construction Finance $ Permanent Finance $ Developer Fee $ 6,854 Reserves $ Other (please specify): $ TOTAL (Must equal TOTAL in 10a.) $75,400 Housing 4 FYI CDBG Funding Request 11 Amount of Private Funds $18,546 (a) Amount of Public Funds $56,854 (b) Total Project Funding $75,400 (c) a + b Number of bedrooms 20 (d) Total public cost per bedroom $2,843 (e) b _ d Total Cost Per Unit $3,770 (t) c _ # Units If volunteers are used please describe how these volunteers are utilized for the proposed activity and estimate the amount of volunteer time and value dedicated to the identified tasks. Unskilled labor — Trash Removal 35 hours x $10 per hour = $ 350 Skilled labor ( ) hours x $_ per hour = $ Skilled labor ( ) hours x $_ per hour = $ Skilled labor ( ) hours x $_ per hour = $ Total (include in 10 a.) $ 350 12. Please identify any identity of interest (I0I) relationships with the applicant and /or project owner, i.e. General Partner has a financial interest in the construction company, etc. None 13. Does the proposed project pay full property taxes? O Yes X No If YES, what is the estimated value of taxes generated from this Project? $0 If NO, does the proposed project make a Payment In Lieu Of Taxes or pay at a reduced rate? ()Yes XNo If yes, what is the percent of full taxes paid? % and amount paid is $ 14. If partial funds are awarded, will the project/program continue? XYes () No If yes, at what level? Repairs are prioritized with the most critical to /east. Depending upon level of funding, the roof /gutters will be repaired /rep /aced first to address areas of structural Integrity then the varlous areas of concern that affect the residents direct /y, such as cooling, flooring, walls, areas of accessibility and usability . Housing 5 FY11 CDBG Funding Request 15. Program regulations require a 25% match for HOME funding. Describe how your organization or the proposed project will help the City of Iowa City meet this match requirement for local HOME funds. Not Applicable. 16. Briefly outline the proposed timetable for the commitment and expenditure of the funding being requested (include other project factors such as rezoning, construction schedule, or application(s) for other funding). If applicant plans to apply for funds not committed to the project yet, include the anticipated date for application. Please Note: If funded, this schedule will be used for any project agreement for the use of CDBG funding. Date: Description of Activity : 7/1/2011 CDBG Award 7/15/2011 Select Contractor(s) — Receive Bids 8/1/2011 Begin clean up and trash removal of areas of repair where needed 8/15/2011 Begin Roof Tear -off and Replacement and HVAC Installation 9/15/2011 Complete HVAC Installation 10/31/2011 Complete Window Replacement 11/30/2011 Complete Roof and Gutter Renovation 12/15/2011 Begin demolition /construction of interior areas (floors walls) move residents as needed to facilitate renovation. 5/31/2012 Complete Interior Renovation move residents back into former rooms 17. Briefly describe the project goals for providing or assisting in the preservation or expansion of affordable housing in Iowa City, and how the project will benefit the targeted income group (e.g. goal of providing rental housing to lower income persons without use of Section 8 rental assistance or level of subsidized rent compared to market rates). This project will preserve 20 units of housing at below market rates for persons with Chronic Mental Illness and who may have other significant barriers. These persons will benefit from the provision of housing within the context of a supported community Living environment. Without basic, suitable housing, addressing these barriers is made significantly more diffIcu/t. 18. To help promote the efficient use of federal, state and local funding please describe how the project will maintain long -term (in excess of CDBG \HOME program requirements) or permanent affordability; and, show how the project will provide for affordable housing at rental rates or purchase price for owner - occupied housing units lower than those in the existing market. The history and ongoing mission of Successful Living has been and continues to be s to provide below - market -rates for housing for persons with Chronic Mental Illness. As it is clear to us that having a suitable Housing 6 FY11 cDBU I- unaing Kequesi place to live is a critical component to mental health recovery, we are committed to keeping our housing units available in this manner. Reminder: Rental housing projects MUST complete and (excel format) provided by the City with this Rental housing applications submitted without the not be considered. submit the proforma application. City's proforma will 19. An objective of the City of Iowa City Comprehensive Plan is to promote a diversity of housing types and mix of all income levels. Please describe the target population this project is to serve, the current level of low - moderate income households in the Census Tract \Block Group and how the project will promote diversity within the neighborhood. This project provides housing for persons with chronic mental illness in an already diverse neighborhood located between student rentals and a historic single family owner occupied area 20. On the map provided, please show the location of the proposed project. 21. Also, please indicate the number of persons or households that will be served by the proposed project by income category. (Please Note: If this application is funded, the information in this table will be used as income targeting for the CDBG \HOME Agreement). Number between 0 - 30% median income Number between 31— 50% median income Number between 51 - 80% median income Number between 80 - 100% median income Number over 100% median income 20 households (a) households (b) households (d) households (e) households (f) Total 20 households (g) Percent LMI 100% (a +b +c +d) + g 22. Please select one main objective, outcome, and output indicator for the proposed project. Second, provide specific project indicators in the narrative (i.e. number of units to be rehabilitated, number of households assisted, number of units constructed, etc.) Objective: 0 Suitable living environment Outcome: 0 Availability/accessibility X Decent affordable housing X Affordability 0 Creating economic opportunities 0 Sustainability Housing 7 FY11 CDBG v-unaing Kequesr output Indicator. 0 Persons Households X Housing units 23. Please list amount of CDBG and /or HOME funds received within the last four City fiscal years and the status of the project(s) undertaken. (City fiscal year July 1 to June 30) Fiscal Year Funds Recv'd Budgeted Amount Amount Expended (as of 10/29/10) Date All Units Completed FY07 (July 2006 — June 2007) $ $ FY08 (July 2007 - June 2008) $ $ FY09 (July 2008 - June 2009) $ $ FY10 (July 2009 - June 2010) $2500 $2500 6/30/2010 24. Is the applicant (including partners, co- applicants, etc.) currently in compliance with all federal, state and local laws, rules and regulations, including any CDBG and /or HOME funded projects? XYes O No If "NO" or a matter is currently in litigation please give the name of the case and explain the basis for the case. 25. If the applicant has not received HOME /CDBG funds in the past three years, please provide evidence of your organization's capacity, financial skills, commitment and /or experience to undertake and complete the proposed project within the established timetable and budget. 26. Please describe your organizations structure, officers and staff, as it relates to the overhead cost for this project. The Facility Coordinator and House Manager will monitor the project during construction. Our accountant will receive pay requests, analyze bills and make payments. Overhead costs will be absorbed into the general operations for our housing units Housing 8 FY11 CDBG Funding Request N m ��pp IV pp m M Ep o m �O �. pl YI. ' Ol N fV : t0 N N N O �' �; N t") V N EO N f0 R A cp- (pOy� N OmD N ammD N c � N Ip N pl y .6 m g t�D N � r O a0 n 221 Ol H22 v E c h 2' x � . I , O y eapD ly 4 4. '. OC , N N W. in $ �' Rp ° i O �p cp m,. O (q N N ci cli *6 G 0 y c i Np CD Cpp t`l (Mp o E i, � /Ai.2 0 �' E� y. p'' 4> W. t°�' y''. ON aD INSD n Nt n to v'. NI M'. £ O'' Z 0 °to R t'M l`1 N N N W'. 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C^pD �e�p {COED�p A C. m m r R N t7 N r 1° N N i N�app�app O m c4 c6 c6 O r (ifO f 1 1 N N N N N �p N N[ M �Cp C O d C J ~ c_ G. O LU O ; o g' CL N O N N. cs' O LL N V d Z N N E C N U o Q a W O N, M N N' N N' N x p M °? N l0 O� a' C x N Lu x CN O N N t U C fx0 H N x Q 3 O ll t U .Oy j 'O 3, N O'. 7 LL U L'. C N' N U H co 01 N N Q 3 C LL L N U O M y C C m m _ M +� O I— d '.. C J N U r cx0'. N H X, Q O. 0) o �? E, LL �' C' L f6 N L f0 07 p U J _ N M M M M L (0 Z Q LL Z. x� N aril o CO Y'�. F-, In m M M aR N �I nj tM 0 {i lh t h M # } N N N N N N N N N N N N CNp N CNp N N .. O: G O,. �. C4 } CL Ct o'. o� M M, X tO C A ' OAi, OAi Ci fV } O O O O Q O O_ _ gi cli N rj N N p y N M tV lV N' p V N O N N N N ci j N. N N N N N p N ml Cfl p } l+l m N'. gip_ } Project Name: Teen Parent Transitional Living Program Type of Project (check one): 0 Homeownership XXO Rental 0 Rehabilitation 1. Lead Applicant Name: United Action for Youth Signature (please use blue ink): OL 41 Applicant Address: 410 Iowa Aven TeIowa City, IA 52240 Contact Person: Jim Swaim Title: Executive Director Phone Number: 319 - 338 -7518 Fax Number: 319 - 337 -7999 E -mail Address: jimswaim @unitedactionforyouth.org DUNS Number: 615965357 2. Secondary Applicant (if applicable): Signature (please use blue ink): Applicant Address: Contact Person: Title: Phone Number: Fax Number: E -mail Address: 3. Type of Applicant (check one): 0 Community Housing Development Organization 0 Private for - profit, individual or partnership applicant 4. Amount of CDBG Funds Requested: $100,000 BY : ...................... XXO Private non - profit organization 0 Public Organization Housing 1 FYI I CDBG Funding Request 5. bid you attend the Applicant Workshop? Not Applicable 6. Provide a brief description of the proposed project & complete the table below. Total Number of Units Proposed: Type of Units: Number of Units: Single Room Occupancy Efficiency 1 - Bedroom 2 - Bedroom 1 3 - Bedroom 4+ Bedrooms 7. Tell us why this project is needed (include information from CITY STEPS, the Iowa City Metro Area Affordable Housing Market Analysis (December 2007) by Mullin & Lonergan Associates, and /or other market studies that identifies the need for this type of housing in Iowa City and how it will fill a gap in the City's housing market. UAY is requesting $100,000 to add to its current award of $350,000 to purchase property to be used in its Transitional Living Program to assist teen parents. The additional $100,000 would greatly enhance UAY's ability to find an adequate multiple unit residence that could function as a "cluster site" for its teen parent Transitional Living Program. The planning and Zoning commission has just modified the definition for households that will allow for three unrelated teen parents and up to four of their children to live together as a single household. This change opens several additional options for UAY in terms of properties that might be suitable and also meet this new zoning. The following information was provided in the proposal submitted In January that was the basis for the $350,000 award: The December 2007 Housing Market Analysis cites "the student rental market is very lucrative. Leases... include a per- bedroom monthly rent which greatly exceeds what a working family with children could afford to pay." It also states that "Street" rents are higher than HUD fair market rents, a disincentive for landlords to participate in the Section 8 Housing Choice Voucher Program (p 94). UAY teen clients have experienced the impact of these market barriers and consistently struggle to find adequate housing. This is especially true for youth participating in UAY's Teen Parent Program and Transitional Living Program (TLP). The UAY TLP program has operated for several years providing services and supportive housing to older homeless teens, primarily teen mothers. UAY devotes approximately 25% of its $200,000 annual TLP grant to renting a cluster site and a few scattered single sites for youth in the program and that cost has risen consistently and is expected to continue to rise. If UAY acquired and owned a building with 6 -8 apartments, it could redirect TLP grant funds to other supportive services such as family support workers, enhanced child care, and enhanced job skills development on behalf of teen clients in the program. The CITY STEPS Five Year Strategic plan notes that: "small families, specifically renters, experience the greatest degree of housing problems." Existing affordable housing demands exceeds projected demand. The plan also notes that "with more `new homeless' being created during the recession, it is critical that efforts be made to assist Housing 2 FYI I CDBG Funding Request them in maintaining their current housing, and not increase the number of homeless in Iowa City. (CITY STEPS p. 37) These needs are especially acute for pregnant and parenting teens and older homeless youth ages 17 to 21. The 2010 Community Assessment conducted by United Way notes that 2.2% of Johnson County's homeless population are unaccompanied youth under age 18 and that the number 2 community issue that most affects quality of life in the county is inadequate /unaffordable housing. This is especially true for pregnant and parenting teens served by UAY. Last year (FYI 0) of the 94 families served in the Teen Parent Program, 29 were homeless at some point during the year (31 %). Over the last seven years the UAY Transitional Living Program (TLP) provided supportive housing to 49 teen parents and older teens who were homeless. The numbers served each year range from 7 to 14 teens and older youth, not including the infants and small children in their households. Since July of this year at least 7 teens have been turned away from our program due to lack of supportive housing. The Transitional Living Program at UAY provides safe and stable housing for homeless young people in Johnson County. TLP is not emergency housing or a homeless shelter for teens. Prospective participants must complete an outreach phase prior to moving into an apartment. Youth are eligible for residential housing assistance for a maximum of 21 months. While in the program youth receive support and education on how to successfully maintain a household, budget their finances and work toward self-sufficiency. The objective of this CDBG project is to provide a safe and stable, suitable living environment to parenting teens and homeless youth who are trying to be good parents and live on their own in the community. The UAY Transitional Living Program has several program components that relate to teaching young people skills to live independently, promote their involvement in continuing their education, finding work and being able to continue working, and contributing their skills and talents in a healthy way to the community. This project would impact the annual costs UAY incurs to pay rents on behalf of youth in its Teen Parent and Transitional Living Programs. It would also expand the capacity above the current 10 bedrooms to at least 12 bedrooms. The acquisition of safe and suitable housing for teen parents and homeless youth who are trying to make a transition to living on their own will improve the outcomes for the participants in the UAY Teen Parent Program and Transitional Living Program. Owning these units will free up other UAY grant resources to enhance the support services these teens need to become healthy and productive adults. 8. Please specify the one most applicable priority need and priority need level, as shown in the 2011 -2015 CITY STEPS Plan. Priority Need—Assist persons at risk for homelessness to find and and maintain housing Priority Need Level (High, Medium or Low) High 9. Please provide the requested loan terms and affordability period: *Financing terms will be based on project feasibility and the ability to repay the loan. Terms approved by City Council may be different than what is requested. Housing 3 FYI I CDBG Funding Request Loan Affordability Principal Interest Amortization Period Yearly Amount Rate (Years) (Years) Payment Terms $100,000 0 15 15 0 Requested* *Financing terms will be based on project feasibility and the ability to repay the loan. Terms approved by City Council may be different than what is requested. Housing 3 FYI I CDBG Funding Request 10a.' Please complete the table below showing the types and amounts of funding being requested for the proposed project. Please check the appropriate box if the funding source is committed. If not committed, please indicate when the applicant will apply for funds in Question #16, Project Timetable. Funding Source & Type of Funds: Funding Amount Interest Rate Amortization Term Committed? Iowa City CDBG Funding $100,000 0 15 15 OYes XXONo (public) $ Construction Finance $ Permanent Finance $ Iowa City CDBG Funding $350,000 0 15 15 XXOYes ONo (public) TOTAL (Must equal TOTAL in 10a.) $500,000 IFA — Low Income Housing $ OYes ONo Tax Credits (private) Bank Loan (private) $ Oyes ONo Volunteer Labor and /or In- $ Oyes ONo kind Donations (private) Applicant Contribution of $ OYes ONo Equity (private) Other Public Resources (please list) Federal TLP grant $40,000 (applied XXOYes ONo to current CDBG) Other Private Resources $10,000 (applied XXOYes ONo (please list) to current CDBG) TOTAL $500,000 lob. Please provide the uses of funds for the project. Uses of Funds Amount Acquisition: Building Acquisition $450,000 Land Acquisition $ Site Improvements $40,000 Construction $ Professional Fees $ Construction Finance $ Permanent Finance $ Developer Fee $ Reserves $ Other (please specify): moving /furnishings $ $10,000 TOTAL (Must equal TOTAL in 10a.) $500,000 Housing 4 FYI CDBG Funding Request Amount of Private Funds $10,000 _ Amount of Public Funds $490,000 Total Project Funding $500,000 Number of bedrooms * ** this proposal assumes UAY 3 could get one additional 2 -3 bedroom unit for $100,000 Total public cost per bedroom $33,000 Total Cost Per Unit $100,000 (a) (b) (c) a + b (d) (e) b _ d (f) c _ # Units 11. If volunteers are used please describe how these volunteers are utilized for the proposed activity and estimate the amount of volunteer time and value dedicated to the identified tasks. Unskilled labor Skilled labor ( ) Skilled labor ( ) hours x $10 per hour = hours x $_ per hour = $ hours x $_ per hour = $ Skilled labor ( ) hours x $_ per hour = $3000 is already applied to the $350,000 award, no acditional amount would be provide for this award Total (include in 10 a.) 12. Please identify any identity of interest (I0I) relationships with the applicant and /or project owner, i.e. General Partner has a financial interest in the construction company, etc. 0� 13. Does the proposed project pay full property taxes? O Yes XXO No If YES, what is the estimated value of taxes generated from this Project? $ If NO, does the proposed project make a Payment In Lieu Of Taxes or pay at a reduced rate? OYes 0 N If yes, what is the percent of full taxes paid? % and amount paid is $. 14. If partial funds are awarded, will the project /program continue? XXO Yes O No If yes, at what level? Even and additional $50,000 will enhance what UAy can purchase when combined with our initial award of $350,000 Housing 5 FY11 CDBG Funding Request 15. Program regulations require a 25% match for HOME funding. Describe how your organization or the proposed project will help the City of Iowa City meet this match requirement for local HOME funds. Not Applicable. 16. Briefly outline the proposed timetable for the commitment and expenditure of the funding being requested (include other project factors such as rezoning, construction schedule, or application(s) for other funding). If applicant plans to apply for funds not committed to the project yet, include the anticipated date for application. Please Note: If funded, this schedule will be used for any project agreement for the use of CDBG funding. Date: Description of Activity : 7/1/2011- 10/1/2011 Negotiate purchase offer- 11/12011-2/15/2012 Acquire property 4/1/2012 complete site improvements, adapt for TLPS use 5/1/2012 complete moving TLP clients to facility 17. Briefly describe the project goals for providing or assisting in the preservation or expansion of affordable housing in Iowa City, and how the project will benefit the targeted income group (e.g. goal of providing rental housing to lower income persons without use of Section 8 rental assistance or level of subsidized rent compared to market rates). This project will help meet the goal of providing housing for lower income persons without the use of Section 8 rental assistance. It will provide supportive transitional housing to teen parents and other older homeless youth who will benefit from expanded supportive services that assist them in developing skills that help them become independent and self - sufficient community members. 18. To help promote the efficient use of federal, state and local funding please describe how the project will maintain long -term (in excess of CDBG \HOME program requirements) or permanent affordability; and, show how the project will provide for affordable housing at rental rates or purchase price for owner - occupied housing units lower than those in the existing market. This project will allow UAY to direct grant funds intended for teen parents and older homeless youth that currently pay rents for supportive housing to instead expand services that provide teens with additional and enhanced support services that assist them in building skills needed to live independently and raise their children Housing 6 FYI I CDBG Funding Request in a healthy way. These services increase the chances that the youth served will be able to secure adequate employment that can support their efforts to find affordable housing on a permanent basis. Reminder: Rental housing projects MUST complete and submit the proforma (excel format) provided by the City with this application. Rental housing applications submitted without the City's proforma will not be considered. 19. An objective of the City of Iowa City Comprehensive Plan is to promote a diversity of housing types and mix of all income levels. Please describe the target population this project is to serve, the current level of low - moderate income households in the Census Tract \Block Group and how the project will promote diversity within the neighborhood. The target population for this project is low- income teen parents and homeless youth ages 17 -21 who participate in UAY's Teen Parent and Transitional Living Programs. The project will promote diversity in whatever neighborhood is chosen by involving very young families in the life of the community. All of the teen participants in the program are involved in service learning projects and it is expected that one or more of those projects would connect the teens to other neighbors in their community. Census data and school enrollment data indicate that of the 131,000 people living in Johnson County, 25,284 are under age 18. The United Way Community Assessment estimates 863 children between the ages of 12 and 17 are living in poverty, and 6,6% of Johnson County families are living in poverty. The poverty rate for children in Johnson County increased by 40% since the 2000 Census and is now at 12.1 %. Family structure /employment data indicates that 20% of families are single parent working families, 4% have neither parent working. A family - supporting wage for a single parent with two children in the Iowa City MSA is $21.78. Jobs for teen parents that pay that wage are almost non - existent in the area. While the school data can be broken down by grade, the Community Assessment indicates that 19,937 children and youth are enrolled in schools and that 30.4% of the Iowa City students qualify for free and reduced lunch. 20. On the map provided, please show the location of the proposed project. None selected yet —to be done in consultation with city staff 21. Also, please indicate the number of persons or households that will be served by the proposed project by income category. (Please Note: If this application is funded, the information in this table will be used as income targeting for the CDBG \HOME Agreement). Number between 0 - 30% median income Number between 31 – 50% median income Number between 51 - 80% median income Number between 80 - 100% median income Number over 100% median income _6 households (a) _4 households (b) households (d) households (e) households (f) Total _10 households (g) Percent LMI _100 (a +b +c +d) + g Housing 7 FYI I CDBG Funding Request 22. Please select one main objective, outcome, and output indicator for the proposed project. Second, provide specific project indicators in the narrative (i.e. number of units to be rehabilitated, number of households assisted, number of units constructed, etc.) Objective: 0 Suitable living environment XX0 Decent affordable 0 Creating economic opportunities housing Outcome: 0 Availability /accessibility )0(0 Affordability 0 Sustainability Output Indicator: 0 Persons 0 Households XX0 Housing units 23. Please list amount of CDBG and /or HOME funds received within the last four City fiscal years and the status of the project(s) undertaken. (City fiscal year July 1 to June 30) Fiscal Year Funds Recv'd Budgeted Amount Amount Expended (as of 10/29/10) Date All Units Completed FY07 (July 2006 — June 2007) $64753 $64753 6/30/07 FY08 (July 2007 - June 2008) $33,225 $33,225 6/30/08 FY09 (July 2008 - June 2009) $33,225 $33,225 6/30/09 FY10 (July 2009 - June 2010) $62718 $62718 6/30/10 24. Is the applicant (including partners, co- applicants, etc.) currently in compliance with all federal, state and local laws, rules and regulations, including any CDBG and /or HOME funded projects? 0 Yes 0 No If "NO" or a matter is currently in litigation please give the name of the case and explain the basis for the case. Yes 25. If the applicant has not received HOME /CDBG funds in the past three years, please provide evidence of your organization's capacity, financial skills, commitment and /or experience to undertake and complete the proposed project within the established timetable and budget. Housing 8 FYI I CDBG Funding Request 26. Please describe your organizations structure, officers and staff, as it relates to the overhead cost for this project. UAY is a 501(c ) (3) nonprofit community youth service agency governed by a board of directors of interested community volunteers. This project will primarily require staff time from the UAY Executive Director, Jim Swaim; Associate Director, Ginny Naso; Teen Parent Coordinator, Lynette Jacoby; and Business Director, Erin Mullins. The project will be assisted by UAY board members especially its finance committee, treasurer, and board chair. The project will likely also rely on past board members who will assist UAY in locating and evaluating property, as well as past volunteers including the architect (Randy Cram of Bergland And Cram) who designed the Youth Center and UAY building additions funded in the past with CDBG funds. Not related to the overhead of acquiring the proposed property is the staff that will provide services to the teens using the facility. In addition to the Teen Parent Coordinator there are five full time family support workers, a health educator, a childcare worker and a pediatric nurse practitioner (under contract with Mercy Hospital) who provide skill building, counseling, home visits, support groups, advocacy, and other supportive services to teens who are part of the Teen Parent program and Transitional Living Program. These services are coordinated through an Individual Transitional Living plan for each youth that outlines goals that will allow the teen to further their education, find suitable work, learn how to live on their own and mange their own household, and contribute in a positive way to their community. For those who are teen parents the goals include enhancing their parenting skills and promoting the health and well -being of their children. Pro -forma spread sheet is on file with the original proposal submitted in January 2011 Housing 9 FY11 CDBG Funding Request O' .^ W O x a N � m > N Q' 00 v c-i io o o n vi CO o v ., - > u N V) � N eA N Hip Vi U3 fA di ' V Ol O 01 O_: W N M O O. O } O C) W' O LO FA. ___ -___ fA W O- I W V3 fA A M M M EA; O _ — -- tD ----- EA .__�.. ------ M ' Lri -- V! ----- -- b Y3 -1 -_ -O t9 fA Uf fA bi — - -. _ —_ ". N O' O m O O o O O co Lq O• O O, O O p O O OI O O O' (O Off._ O' 0 0 O 0 0 O O 0 0 O 0 o °N ' O 0 9 0 0 0 S O 0 p O 0 0 O 0 O O 0 O O 0 0 °W 0 0 0 0 O\ I } O Q Q O O O pOp O s N m E E 0 N Ei O CL �' :5 u O m Q) E ' v� V) a 2 a' C o C: y GJ 0 O N E C � N N' W W C C f4 U /11TTOO' V i i o'. � C V C C N N' _ p c /O V Qi k w �$L. U N N m @ C (D O N Cl) 0 E O Q (C c: ] C �[ O O U �' >' ri C C O. >' a' N O O O N N N `L 1 - O N N (0 N Z O Vcp I VcC i L 0 � _ - F -_ o 7 > W O o _d _� o o _.0 _(D o Qw ' ' U v �:.... 0 r r O' ..,} m, N: M V N Co f-. Co C, C .N- � 00 Z � a �i Housing Will W VNSI Project Name: Broadway Neighborhood Improvement and Stabilization Project Type of Project (check one): 0 Homeownership XRental ORehabilitation in : ...................... 1. Lead Applicant Name: Signature (please use blue ink): 7 ( -kc:o� &4Z'v--- — — !�§" losyVT. Braverman, President of Southgate Development Services, L.L.C., a anager of Wetherby Condos South LLC Address: c/o Southgate Development Services, L.L.C., 755 Mormon Trek Boulevard, Iowa City, IA 52246 Contact Person: Glenn Siders Title: Vice President — Development, Southgate Development Services, L.L.C. Phone Number: (319) 337 -4195 Fax Number: (319)337 -9823 E -mail Address: gsiders sgdev.net DUNS Number: 014290201 2. Secondary Applicant (if applicable)., Not Applicable 3. Type of Applicant (check one): X Private for - profit, individual or partnership applicant 4. Amount of CDBG Funds Requested: Nine Hundred Thousand Dollars ($900,000) 5. Did you attend the Applicant Workshop? Not Applicable 6. Provide a brief description of the proposed project & complete the table below. 1900 Broadway Condominiums is a 30 -year old, 108 -unit complex of two- bedroom units in three buildings located at 1956, 1958 and 1960 Broadway. The proposed project is to rehabilitate the common areas of the Broadway Condominiums and rehabilitate the units owned by Wetherby Condos South LLC. The following improvements will be made to the exterior of the 1900 Broadway complex, at an approximate cost of $648,000: Mansards will be removed and replaced with new lap siding New windows will be installed Old decks will be removed and replaced with small balcony -type decks New sliding glass or French doors will be installed for the new decks Worn, cracked and broken sidewalks will be removed and replaced Masonry dumpster enclosure will be built Substantial privacy fencing will be installed behind the 1958 building and along the north property line Decorative fencing may be installed along Broadway Asphalt drives and parking will be recoated and restriped Housing 1 FYI CDBG Funding Request Tree trimming and other landscaping will improve the grounds Additional security cameras will be installed. The applicant, Wetherby Condos South LLC, plans to spend approximately $1,512,000 for interior renovations, which will include: New bathrooms New kitchens (including energy - efficient appliances) New carpet New paint (we have tested for lead paint; there is no need to remediate) New unit doors, bedroom and closet doors New fire doors, hallway repairs and renovations. Total Number of Units Proposed: 108 Units will be benefitted by the improvements to the common areas Type of Units: Number of Units: Single Room Occupancy Efficiency 1 - Bedroom 2 - Bedroom 108 Units will be benefitted 3 - Bedroom 4+ Bedrooms 7. Tell us why this project is needed (include information from CITY STEPS, the Iowa City Metro Area Affordable Housing Market Analysis (December 2007) by Mullin & Lonergan Associates, and /or other market studies that identifies the need for this type of housing in Iowa City and how it will fill a gap in the City's housing market. CITY STEPS identifies a clear need for safe, affordable, livable housing to serve the needs of low -to- moderate income residents. While some of the tenants at 1900 Broadway are students, the large two- bedroom units are ideal for family housing. However, while once a viable addition to the neighborhood, the complex has deteriorated substantially over a number of years to the point where the perception is that it no longer provides safe, affordable, livable housing for families or for adults. Private security has been provided for several years, cameras and new security doors have been installed, but concerns about crime continue. Prospective tenants are reluctant to consider living in the complex, often fearing for their safety. Current vacancy rates are a significant problem, which has led in the past to reluctance on the part of owners to invest in the units and the complex. Deterioration of units in the complex and concerns about safety continue to create uncertainty. As part of this project, Wetherby Condos South, LLC will implement and enforce rules that will require the use of the strict Crime Free Lease Addendum. We believe that the 1900 Broadway complex is locked in a cycle of deterioration that will take a concerted effort along with a substantial investment of capital to break. An affiliate of Wetherby Condos South LLC, Kobrin Development Company Inc. (formerly known as Southgate Development Company, Inc.), made such an effort and investment in the property immediately to the south, now known as The Woodlands. Units were gutted and renovated and the entire property was cleaned up, rehabilitated and improved. Reported crime dropped sharply, occupancy increased and the general perception now is that The Woodlands is a safe, affordable, livable housing complex. While rents increased at The Woodlands following the improvements, it is significant to note that rents remain at $650 to $680 per two- bedroom unit, which (adjusted for utilities) meets the City's CDBG Fair Market Rent standards. We have a substantial investment in the neighborhood. We intend to invest funds in excess of $2,160,000 in order to break the cycle of deterioration at the 1900 Broadway complex. This will result in the improvement and Housing 2 FYI CDBG Funding Request preservation of existing affordable housing stock, improve the living environment of the community and help to rehabilitate a deteriorating neighborhood. Wetherby Condos South LLC and Kobrin are committed to a long term investment in the Broadway neighborhood. Kobrin has successfully rehabilitated The Woodlands housing complex. Collectively, Kobrin and its affiliates own an additional 125 residential rental units (and manage 24 more) in the neighborhood just west of Broadway. One of the challenges confronting us in how we approach this plan for renovation and rehabilitation is how to perform the work with a minimum of disruption and dislocation of the residents of the complex. We plan to temporarily relocate residents in the project as we renovate one twelve -plex at a time. We expect that some tenants may leave because of the inconvenience, and some leases may not be renewed. We expect to see a substantial, but temporary, increase in vacancy during the construction phase of the project. 8. Please specify the one most applicable priority need and priority need level, as shown in the 2011 -2015 CITY STEPS Plan. Non - student renter households below 500/o of MFI* Priority Need *See note in section 21 below. 9. Please provide the requested loan terms and affordability period: HIGH Priority Need Level (High, Medium or Low) NOTE: We are requesting an award of $900,000 toward the $2,160,000 funds necessary for this project. We are requesting that $400,000 of the award be in the form of a grant, with the balance in the form of a loan. Terms Requested 10a. Please complete the table below showing the types and amounts of funding being requested for the proposed project. Please check the appropriate box if the funding source is committed. If not committed, please indicate when the applicant will apply for funds in Question #16, Project Timetable. Housing 3 FY11 CDBG Funding Request Loan Affordability Principal Interest Amortization Period Yearly Amount Rate (Years) (Years) Payment $900,000 tbd tbd 7 years tbd 10a. Please complete the table below showing the types and amounts of funding being requested for the proposed project. Please check the appropriate box if the funding source is committed. If not committed, please indicate when the applicant will apply for funds in Question #16, Project Timetable. Housing 3 FY11 CDBG Funding Request Funding Source & Type of Funds: Funding Amount Interest Rate Amortization Term Committed? Iowa City CDBG Funding $900,000 TBD TBD TBD Oyes XNo (public) $ 12,000 Construction Finance $0 Permanent Finance $0 State of Iowa HOME or $0 Reserves $ 5,000 Other (please specify): Dyes ONo CDBG (public) TOTAL (Must equal TOTAL in 10a.) $2,160,000 IFA — Low Income Housing $0 Oyes ONo Tax Credits (private) Bank Loan (private) $800,000 XYes ONo Volunteer Labor and /or In- $0 Oyes ONo kind Donations (private) Applicant Contribution of $460,000 XYes ONo Equity (private) Other Public Resources (please list) $ Oyes ONo Other Private Resources (please list) Oyes ONo TOTAL $2,160,000 lob. Please provide the uses of funds for the project. Uses of Funds Amount Acquisition: Building Acquisition Land Acquisition (included above) $ Site Improvements $ 98,500 Construction $2,044,500 Professional Fees $ 12,000 Construction Finance $0 Permanent Finance $0 Developer Fee $0 Reserves $ 5,000 Other (please specify): $ TOTAL (Must equal TOTAL in 10a.) $2,160,000 Housing 4 FY11 camu I -unomg Kequesr Amount of Private Funds $1,260,000 (a) Amount of Public Funds $ 900,000 (b) Total Project Funding $2,160,000 (c) a + b Number of bedrooms 216 (d) Total public cost per bedroom $ 4,167 (e) b _ d Total Cost Per Unit $10,000 (f) c _ # Units 11. If volunteers are used please describe how these volunteers are utilized for the proposed activity and estimate the amount of volunteer time and value dedicated to the identified tasks. Not applicable. 12. Please identify any identity of interest (IOI) relationships with the applicant and /or project owner: The general contractor, Southgate Construction, is under common ownership with the applicant. 13. Does the proposed project pay full property taxes? X Yes (as to 91 %) 0 N If YES, what is the estimated value of taxes generated from this Project? Currently, 9 units are held by HACAP, which does not pay property taxes. The estimated value of property taxes generated from this Project, if 100% privately held, is $79,000 prior to renovation and $110,000 after renovation. 14. If partial funds are awarded, will the project /program continue? 0 Yes X No If yes, at what level? Without a full award of funds, we would not be able to complete the project as an affordable housing project. We would proceed with the planned renovation and rehabilitation, but on a dramatically scaled back basis, with higher rents. What we would be able to accomplish, how quickly we could accomplish it, and whether any of the units would be affordable, would be determined by funding levels from our private sector lender(s). 15. Program regulations require a 25% match for HOME funding. Describe how your organization or the proposed project will help the City of Iowa City meet this match requirement for local HOME funds. Not Applicable. 16. Briefly outline the proposed timetable for the commitment and expenditure of the funding being requested (include other project factors such as rezoning, construction schedule, or application(s) for other funding). If applicant plans to apply for funds not committed to the project yet, include the anticipated date for application. Please Note: If funded, this schedule will be used for any project agreement for the use of CDBG funding. Date: Description of Activity: See attached construction schedule for dates and activities. Note that the schedule presumes a start date of August 1, 2011, and that the schedule will be adjusted depending on the actual start date. 17. Briefly describe the project goals for providing or assisting in the preservation or expansion of affordable housing in Iowa City, and how the project will benefit the targeted income group (e.g. goal of providing rental housing to lower income persons without use of Section 8 rental assistance or level of subsidized rent compared to market rates). Housing 5 FYI I CDBG Funding Request With significant renovation and rehabilitation and a change in the perception of the 1900 Broadway complex, this project will have the net effect of returning as many as 108 existing two- bedroom units to the City's safe, affordable, livable housing stock. 18. To help promote the efficient use of federal, state and local funding please describe how the project will maintain long -term (in excess of CDBG \HOME program requirements) or permanent affordability; and, show how the project will provide for affordable housing at rental rates or purchase price for owner - occupied housing units lower than those in the existing market. With the assistance of the CDBG funds, it is our expectation that the rental rates for the 1900 Broadway units owned by Wetherby Condos South LLC will remain affordable — that is, at or below Iowa City's Fair Market Rent for a two- bedroom unit — for a minimum of seven years. We also expect that the rental rates for those units will remain below the rental rates for the other units we own or manage in the surrounding neighborhood. See attached proforma (excel format) provided by the City. 19. An objective of the City of Iowa City Comprehensive Plan is to promote a diversity of housing types and mix of all income levels. Please describe the target population this project is to serve, the current level of low - moderate income households in the Census Tract \Block Group and how the project will promote diversity within the neighborhood. The target population of low to moderate income households is already well represented in the area and at the property. This project will preserve the property and enhance its attractiveness as a locale for those individuals and families seeking affordable, appealing, conveniently located, spacious two bedroom units. 20. On the map provided, please show the location of the proposed project. See attached map. 21. Also, please indicate the number of persons or households that will be served by the proposed project by income category. (Please Note: If this application is funded, the information in this table will be used as income targeting for the CDBG \HOME Agreement). Number between 0 - 30% median income Number between 31— 50% median income Number between 51 - 80% median income Number between 80 - 100% median income Number over 100% median income households (a) households (b) 56* households (d) 52* households (e) households (f) Total 108 households (g) Percent LMI 6096 (a +b +c +d) _ g *56 units below 80% median income is the minimum. We expect that the actual number will be higher than that, including some below 50% median income. 22. Please select one main objective, outcome, and output indicator for the proposed project. Second, provide specific project indicators in the narrative (i.e. number of units to be rehabilitated, number of households assisted, number of units constructed, etc.) Housing 6 FY11 CDBG Funding Request Objective: 0 Suitable living environment X Decent affordable housing 0 Creating economic opportunities Outcome: 0 Availability/accessibility Output Indicator: 0 Persons X Affordability X Households 0 Sustainability 0 Housing units 23. Please list amount of CDBG and /or HOME funds received within the last four City fiscal years and the status of the project(s) undertaken. (City fiscal year July 1 to June 30) Fiscal Year Funds Recv'd Budgeted Amount Amount Expended (as of 10/29/10) Date All Units Completed FY07 (July 2006 — June 2007) $0 $ FY08 (July 2007 - June 2008) $0 $ FY09 (July 2008 - June 2009) $0 $ FY10 (July 2009 - June 2010) $0 $ 24. Is the applicant (including partners, co- applicants, etc.) currently in compliance with all federal, state and local laws, rules and regulations, including any CDBG and /or HOME funded projects? XYes 0 No If "NO" or a matter is currently in litigation please give the name of the case and explain the basis for the case. 25. If the applicant has not received HOME /CDBG funds in the past three years, please provide evidence of your organization's capacity, financial skills, commitment and /or experience to undertake and complete the proposed project within the established timetable and budget. In 2008, CDBG funds were allocated for down payment assistance for potential owner - occupied residential properties. Units at 1900 Broadway were made available for this program, but financial institutions informed us that potential buyers did not meet their qualifications and no units at 1900 Broadway were sold. Wetherby Condos South LLC is well situated to undertake and complete this project within the timetable and budget set forth. Kobrin Development Company Inc. (formerly known as Southgate Development Company, Inc.) was founded in 1962 and has owned, developed, built and managed commercial and residential property in and around Iowa City since then. Kobrin has also successfully renovated and rehabilitated The Woodlands, directly to the south of this project. 26. Please describe your organizations structure, officers and staff, as it relates to the overhead cost for this project. We have no overhead allocated to this project. Housing 7 FYI CDBG Funding Request 11 Ll Ali Ic ' `-�' . . . . . . . . . . . ..... . .. ........... CL Efl < C O -F ;;p cp 0 '10 0 %C) . LO 030 o 0 co 10 0 a o N 0 010 '0 'm C4 C4 0 B a i m : i to i CM eq 0 U- W i — 1 C4 C4 N Cq C4 C4 N Cq C-4 C*l 4 cm cj cm V- V- T V. 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W m (9 m bi 19 19 f9 f9 f9 lA f9 ' M fA Public Facility, Planning & Pr6i 1. Name of Project: MayQes Youth Empowerment Program (MYEPJ Service Center Rehab Phase 4• Prot 1 :( Upstairs Renovation and Completion $71,337.00) Project 2: (Down Payment toward eWjWL y ANuishion $50,000) 2. Total Amount of CDBG Funds Requested: # $121,337.00 (One hundred twenty one tlWmnds, and three hundred thirty seven dollars) 3. Applicant Name: Roger Lusala Applicant Address: 407 Highland Court , P. 0. BOX. 307. Iowa City, IA 52244 DUNS Number: Signature (plea! 4. Contact Person: Phone Number: 319 - 341 -0060 Ext. 7001 Fax Number: 888 -883 -1235 Email Address: r.lusala@)Mgp.us 5. Location of proposed project: 407 Highland Court , Iowa City, IA 52240 6. Did you attend the Applicant Workshop? Not Applicable. 7. Brief summary of the proposed project (please limit response to a paragraph). Prot 11$71,337 00)• This project consists of the uMirs renovation and completion of the Service Center rehabilitation to add additional space for therapy counseling offices and meeting rooms This project will include framing, sheetrock and painting of walls for the aforementioned rooms adding usable square footage floor covering and p! mbingfor a bathroom adding a new air conditioning unit, and a new furnace to improve the ene efficiency of the building. Miga 2 ($50,M: A down payment toward a property aoauisition This project consists of acquiring the p=ft aril -mnt to MYEP on the south side, 1208 S Gilbert Court which was home to the auto shop Star Motors MYEP will finance the purchase of the property however is seeking assistance with the down payment This auto shop has not been in operation for over a year and the property's auto shop w— kyard is now a junk yard with several dead vehicles including buses tractors cars and other gquipffwnt construed around the property The propel is not only a neighborhood eve soars but more im_ portanW has become a safety risk for the entire community Manv transients have begun to call these abandoned vehicles their homes Unfortunately the police have been called to this location numerous times to deal with individuals who are trespassing, consuming alcohol and drugs engaging in fights causing injury and general property destruction MYEP would like to revitalize this properly to include the development of parking areas and green spaces as well as a creation of two distinct community sites MYEP would establish parking _in the rear of the building to help alleviate the scar& of street parking in the area and would also add a green space with playground gguipment for the children in our after school program and for community use as well. MYEP would incorporate the existing auto shop building by creating two distinct spaces; the first would serve as an after School Resource Center where kids in our program and other programs in the community such as the Salvation Amty, the Crisis Center, or the Shelter House may utilize the space to do homework or activities We will create an area with computers books gam, and other resources to be shared by the community, . and finally, utilize the back building space as a garage to store vehicles and equipment which would help to free up spaces in the front of our building and on the street The second area would be designed as an Employment Training Center for a range of pgpulations• individuals with disabilities at -risk youth and the under employed In this second space MYEP would like to open a Coffee Shop that would serve the community coffee pastries and snacks in order to create suppgrted employment opportunities for adults with disabilities and youths in the afternoon The rear of the second space will be an Empigyment Training Center where people would learn necessary job skills to help them obtain paving positions in our community. We have had successes establishing relationships with businesses willing to work with our organization such as McDonald's Restaurant_ Menards Farewav and City of Iowa City just tp name a few. Based on our reputation for job coaching and suppgrting individuals with disabilities businesses are more willing to hire adults with disabilities, at -risk youth, and the under empll yed if we help to paMk the training before they are placed with these potential employers. This center will afford us the ability to expand these relationships and better serve the under employed populations by helping to create more qualified skiiled workers and ultimately making a positive impact on the unempkrvment rate that exists in our community. 8. Please specify the one most applicable priority need and priority need level, as shown in CITY STEPS 2011 -2015. HandicaQCenter and Child Care Child Care (High) & Handicap Center (Medium) Priority Need Priority Need Level (High, Medium or Low) 9. Tell us why this project is needed (include information from studies \research or other supporting documentation) and how it fills a gap in the community as outlined in CITY STEPS. Also, indicate how the project partners with existing services /facilities. These projects are needed because they achieve the CITY STEPS Goals 1 Childcare: These projects will support affordable childcare for children with disabilities as stated on the CITY STEPS Goal (P.78); 2 Self SufficreM: Th ese projects will prornote and support self-esteem enhancement, family and parental counseling, skills development and communication skills (P 79) 3• Education / Job Training / Self SufficcieM Skills: These {projects support job training for individuals with disabilities at -risk youth and the under employed. individuals with disabilities MYEP is amongst a small number of agencies in the Iowa City area providing services to individuals with disabilities however MYEP is the only a9ency in the Iowa City area providing an after school program for children with developmental disabilities from kindergarten through high school ages and the only ageey providing youth emplovment opportunities for area at-risk-youth in high school in connection with youth who have developmental disabilities. MYEP's mission is to provide advocacy and support to at -risk youth children and adults with disabilities who face barriers to independence and resources to their families For many years, MYEP provided services funded by various local. state and federal grants As funding from grants dwindled. MYEP expended to sales of services to agenci es such as the Department of Human Services (DHS) Mental Health and Disability Services (MH /DS) and the Iowa Gty Community School District (ICCSD) MYEP began as a federal initiative encouraging disadvantaged youth and young adults - pdmariy cities to provide summer employment opportunities for between the ages of 1424 Since that time MYEP has been active in offering direct supportive programs to individuals with disabilities and area at -risk youth From 1968 through 1996, MYEP was considered a Quasi- depaartment of the City of Iowa City In 1996, MYEP filed for and became a 501(c) (3) private non-profit corporation. Community Living Waiver In 2002 MYEP became an approved service provider under the State of Iowa Medicaid Waiver Home and Community Based Service (HCBS) through these contracts MYEP pmides Individual, Group and Camp Respite Care Supported Community living both Hourly and Residentially, Job Coaching and Job Placement Prevocational Services, Adult Day Habilitation Services, Adult Day Care Consumer Direct Attendant Care (CDACJ and continues to expand its services under the folk)wring Waivers: Intellectual Disability Waiver (formally known as Mental Retardation Waivers III and Handicapped Waiver Brain Injury Waiver, Physical Disability Waiver Children Mental Health Waiver, and Residential Based Supported Community Living Waiver MYEP currently serves over 230 families In addition to our Medicaid services MYEP provides services to area at -risk youth through our Youth Leadership Proogram and the FASTRAC Program The Youth Leadership Program supports area at risk youth to become socially, morally, emotionally, physically and cognitively competent and contributing members of the communes MYEP promotes four areas that have proven to foster the best results while working with yQuthe integration of family, peers and the community; positive adult and youth interaction; work -based learning with area businesses and community services The curriculum of the Youth Leadership Program includes: money management; preventing identifying, and reporting domestic,pysical and sexual abuse; preventing bullies; on -line safety tips; community services; the importance of post seconda[y education; and many more The MYEP Youth Leadership program currently manages several youth entrepreneurial venues including the Fast Snack! Van that sell snack through out the community, a lawn care and snow removal business that has many residential contracts including a contract with the City of Iowa City, and our newest venue which is the management and operation of the Cry of Iowa QW, City_Park Amusement rides that the season opening took place on Memorial Day this year and runs until Labor Day. All these venues provide area at -risk youth with summer employments and keep them away from street corners and out of negative activities. FasTrac College Bound Program: Often students involved in leadership activities are also interested in college but the idea of forging down an unknown Apth is filled with fear and confusion. The FasTrac Program walks students and their families through the admission process by informing students and their family of the required coursework for college admission, assisting in navigating the application prp�ces , including introducing them to state and federal grants, loans and scholarship searches The FasTrac College Bound Program also designs activities where students learn applicable skills such as producing web sites creating simple machinery, and also creating portfolios, assisting students in accessing local universities and colleges through campus visits, and also provides students with the opportunity to loin college classes while still in high school In the past two years graduating seniors who participated in the FasTrac program have all applied and have been accepted to a college There were five in 2008- 2009 and eighteen in 2009 -2010 This is quite a feat considering where they started from FasTrac -E• provides after school and summer programs for youth in grades 46 and will expand to include grades K -3 as well in order to set programs in place that can protect children from adverse influences. FasTrac -E works to improve academic performance by focusing attention on areas causing stress and underachievement The program aims to enhance academic and social skills as students learn to handle conflict and challenges more effectively and to interact with junior high and high school FasTrac students During the hours following school is when juvenile crime hits the highest incidence rates community -based after school and summer programs which are comprehensive can reduce the juvenile criminal activiy or being a victim of such and lessens the likelihood to engage in risky behavior such as drugs alcohol, and tobacco, therefore FasTrac -E is developing into a high priom MYEP has provided services in Iowa City since 1968 MYEP has served an immeasurable number of youth and their families MYEP was awarded $90000 from CDBG to complete Phased 2 to rehab the exterior of the building, Phase 2 was completed on schedule, $27 365 was awarded for Phase 3 of building interior which will begin in August 2011, and finally MYEP also was awarded $98,800.00 for the purchases of two lots to build universal design wheel chairs accessible rental homes these lanais have been identify and under environmental review by the City of Iowa City and the planning construction phase has begun. 10. Please provide a budget breakdown for your specific project. Complete the various categories appropriate for your project. Use categories such as property acquisition, architectural expenses, construction costs, material and administrative costs, etc. for construction /rehabilitation projects. The budget breakdown should only include those costs directly related to the project. If a construction project, provide the total estimated costs of the project, but do not include operational expenses or expenses not directly related to the construction project. Under the "status" column, indicate if funds are anticipated or committed for each source of funds. If anticipated, include the date the funds will be available if awarded funding. Please include the cost of an audit for any organization that expects to receive over $500,000 from all federal sources. Document Costs Whenever Possible. A construction estimate is strongly encouraged for all rehabil'fatilon or new construction projects. PLEASE NOTE: The Housing and Community Development Commission may request a copy of your overall agency budget. 4 Budget Breakdown (Include only those costs directly related to the project.) Skilled labor ( ) $ 121,337.00 (b) $0 Type (c) (a + b) Status 237 (d) (see question 14) $ 533 c $ 512 (f) (b _ d) 0 m Expense Category In- Antics m (e.g. salaries, IGnd acquisition, rehab) Date t If possible, please t prioritize the Other List Source of e budget CDBG Funds Funds Other Funds d Please place an "X" in the box that applies: Upstairs renovation $71,337.00 $0 X 10/1/1 and completion 1 Down Payment Toward $50,000 $0 X 12/1/1 Property Acquisition 2 Volunteer Contribution $5,000 Volunteer Work X 10/1/1 (Total from Question #11) 1 Total 1 $121,337.00 1 $5,000 -T F Amount of private \agency \other funds Amount of CDBG funds Total Project Funding Number of persons assisted Total cost per person Total CDBG Cost per Person $ 5.000.00 (a) Skilled labor ( ) $ 121,337.00 (b) $0 $ 126,337.00 (c) (a + b) x $_ per hour = 237 (d) (see question 14) $ 533 (e) (c _ d) $ 512 (f) (b _ d) 11. If volunteers are used please describe how these volunteers are utilized for the proposed activity and estimate the amount of volunteer time and value dedicated to the identified tasks. Unskilled labor 500 hours x $10 per hour = $5,000 Skilled labor ( ) hours x $_ per hour = $0 Skilled labor ( ) hours x $_ per hour = $0 Total $5,000 12. Does the proposed project pay full property taxes? ® Yes ONo 5 If yes, what is the estimated value of taxes generated from this Project? $ 19.000.00 If property taxes are not paid, does the proposed project pay a Payment In Lieu of Taxes or a reduced tax rate? ClYes ONo If yes, what is the percent of full taxes paid? % and amount paid is $ 13. Briefly outline the proposed timetable for the commitment and expenditure of the funding being requested (include other project factors such as rezoning, construction schedule, or application(s) for other funding). Please Note: If funded, this schedule will be used for any project agreement for the use of CDBG funding. Date: Descriution of Activity July, 2011 Fund Available • September 1 -15, 2011 Solicits new bids and select contractors • October 15 to December 15, 2011 Start Rehab construction oroiect • January 1- February 1, 2012 Building Acquisition • February 1 2012 Rehab project completion 14. Please indicate the population to be served by the proposed project according to the income categories shown in the Applicant Guide. (Please Note: If this application is funded, the information in this table will be used as income targeting for the CDBG Agreement). Number between 0 - 30% median income Number between 31 - 50% median income Number between 51 - 80% median income Number between 80 - 100% median income Number over 100% median income Total Percent LMI Percent Iowa City Residents 117 persons (a) 27 persons (b) 47 persons (c) 2§ persons (d) 0 persons (e) persons (f) 84.8% (a +b +c) =f 92.5% 15. Please select one main objective, outcome, and output indicator for the proposed project (see applicant guide). Second, provide specific project indicators in the narrative (i.e. number of units to be rehabilitated, number of households assisted, number of units constructed, etc.) Objective: O Suitable living 0 Decent affordable ® Creating economic environment housing opportunities Outcome: Output Indicator ® Availability/acoessibility O Affordability 16. On the attached map, indicate the location of the proposed project. Attached ® Sustainability O Housing units L 17. Please list amount of CDBG funds received within the last three City fiscal years and the status of the project(s) undertaken. (City fiscal year July 1 to June 30) Fiscal Year Funds Recv'd Budgeted Amount Amount Expended Date Project Completed FY08 (July 2007 - June 2008) 0 FY09 (July 2008 - June 2009) 0 _ FY10 (July 2009 - June 2010) $90,000 1$90,000 November 2010 18. Is the applicant (including partners, co- applicants, etc.) currently in compliance with all federal, state and local laws, rules and regulations including any CDBG and /or HOME funded projects? ®Yes ONo If "No" or the matter is currently in litigation please give the name of the case and explain the basis of the case. 7 19. If the applicant has not received CDBG funds in the last three years, please provide evidence of your organization's capacity, financial skills, commitment and /or experience to undertake and complete the proposed project within the established timetable and budget. N/A �. � | | / / W 0 1 W/ ` ` Public Facility, Planning & Other Projects 1. Name of Project: Comprehensive Renovation for MECCA Residential and Administrative Facilities 2. Total Amount of CDBG Funds Requested: $ 562,657.00 3. Applicant Name: Mid - Eastern Council on Chemical Abuse (MECCA) Applicant Address: 430 Southgate Ave., Iowa City, IA 52240 DUNS Number: 080310204 Signature (please use blue Ink): _ 4. Contact Person: Ronald Berg, CEO Phone Number: (319) 351 -4357 Fax Number: (319) 351 -4907 Email Address; rberg(8meccaia.com 5. Location of proposed project: 430 Southgate Avenue and 238 Stevens Drive 6. Did you attend the Applicant Workshop? Not Applicable. 7. Brief summary of the proposed project (please limit response to a paragraph). MECCA proposes to implement comprehensive renovations to its main residential / outpatient facility and administrative offices in Iowa City. These renovations are necessary in order for MECCA to maintain a physical environment that is most conducive to successful client outcomes and administrative capacity, and will constitute the first comprehensive renovations since 1985. We have made these renovations a priority because treatment clients have indicated in recent surveys that their primary complaint is the overall physical environment for treatment. In addition, the new outlook for health care reform will require that MECCA be able to streamline its administrative and clinical operations by consolidating available office and clinical space more efficiently. Moreover, it is a part of MECCA's long term plan to meet national standards for best practices that are in compliance with NIATx (Network for the Improvement of Addiction Treatment) and CARF (Commission on Accreditation of Rehabilitation Facilities) provisions for a "warm and welcoming" environment. 8. Please specify the one most applicable priority need and priority need level, as shown in CITY STEPS 2011 -2015. Homeless and Homeless Prevention Activities High Priority Need Priority Need Level (High, Medium or Low) 9. Tell us why this project is needed (include information from studies \research or other supporting documentation) and how it fills a gap in the community as outlined in CITY STEPS. Also, indicate how the project partners with existing services /facilities. Substance Abuse Treatment is considered a high priority in the 2011 -15 CITY STEPS consolidated plan for Homeless and Homeless Prevention in Iowa City. MECCA's main treatment facility located at 430 Southgate Avenue provides clinical space for outpatient substance abuse treatment and sleeping, eating and washing facilities for up to 32 individuals in residential treatment and 6 individuals in detoxification. This facility is staffed with professionally certified and licensed counselors and clinicians who provide substance abuse clients with the most up -to -date evidence -based treatment counseling in a safe and monitored environment. We serve over 3,000 unduplicated outpatient and inpatient clients at our 430 facility each year. We have made these proposed renovations a priority for the following three reasons: 1) The toll that inpatient and outpatient activities have taken on this facility year after year has had a direct, adverse affect on the clinical environment for staff and clients. One study outlines six environmental characteristics that should exist for more effective service delivery in a recovery environment: comforts and conveniences, safety, attractiveness, size, privacy, and arrangement/ location.' The study concludes that, "Results support the importance of these six setting characteristics in influencing clients' treatment goals." Although we have taken incremental steps to ensure that these six environmental conditions are maintained and suitable for clients, we have only been able to do so through periodic upkeep. Due to funding restraints and the need to serve more clients over the years, we have not been able to keep up with all these environmental requirements in any comprehensive manner since 1985 when the building was first built. Therefore, we strongly feel that the time has come for comprehensive renovations that will meet national standards for best - practices in addition to providing a clinical environment that is more respectful to the dignity of individual clients. Moreover, MECCA has made compliance with provisions set forth by -CARF (Commission on Accreditation of Rehabilitation Facilities) a high priority in the standard of service substance abuse clients should receive. Prominent in this view is a mandate for a "warm and welcoming" environment as essential to a positive treatment experience which, in turn, promotes more successful long -term recovery. 2) Recent surveys (2009 and 2010) conducted by MECCA have indicated the overall physical environment as the number one complaint among clients, particularly the lobby area, which is too small for such a high traffic area. We propose to build an addition to expand the lobby so it can comfortably accommodate the number of clients and other visitors to this facility. The complaints also extended to the rest of the facility, including stained 1 "Perceptions of the importance of physical setting in substance abuse treatment" Judith K. Grosenick Ph.D, and Claudia M. Hatmaker Ph.D.B. Universities of Oregon and Oregon State. 1999 Public Facility, Planning & Other Projects 1 FYI CDBG Funding Request carpeting, broken and stained ceiling tiles, worn walls, and lighting in need of repair. This facility sees over 3,000 (unduplicated) clients every year in addition to the staff and other agency personnel who provide services. 3) The new environment for health care reform will have significant ramifications for all providers state -wide. Locally, this will require that MECCA be able to, among other things, streamline its administrative and clinical operations. A major step in this direction will be to add five new offices at our Stevens Drive location. These new offices will then allow us to relocate our Synchrony (Employee Assistance Program) and administrative staff currently at 438 Southgate to Stevens Drive, which will in turn open up additional space at 438 Southgate for client services. Furthermore, this change in office assignments will also better accommodate the Sixth Judicial District's office that they we share with them at our Southgate Avenue facility. These comprehensive renovations will provide a higher quality of service for individuals in recovery while supporting MECCA's efforts to maintain national standards for addiction treatment providers and help us to prepare for the future of health care as a leader in recovery oriented systems of care. MECCA is actively involved with Criminal Justice Coordinating Committees, the Johnson County Empowerment Board, Decategorization committees, Juvenile Crime Board, Juvenile Justice Youth Development Policy Board, and Iowa City schools, to help facilitate treatment services. MECCA also continues to partner with local agencies and organizations to leverage the capacity in the community to better serve our clients, most of whom are Iowa City residents. Public Facility, Planning & Other Projects 2 FYI CDBG Funding Request 10. Please provide a budget breakdown for your specific project. Complete the various categories appropriate for your project. Use categories such as property acquisition, architectural expenses, construction costs, material and administrative costs, etc. for construction /rehabilitation projects. The budget breakdown should only include those costs directly related to the project. If a construction project, provide the total estimated costs of the project, but do not include operational expenses or expenses not directly related to the construction project. Under the "status" column, indicate if funds are anticipated or committed for each source of funds. If anticipated, include the date the funds will be available if awarded funding. Please include the cost of an audit for any organization that expects to receive over $500,000 from all federal sources. Document Costs Whenever Possible. A construction estimate is strongly encouraged for all rehabllitation or new construction projects. PLEASE NOTE: The Housing and Community Development Commission may request a copy of your overall agency budget. Budget Breakdown (Include only those costs directly related to the project.) $ 562,657 (b) Type Status Expense Category (e.g. saiarfes, acquisition, 3,250 (d) (see question 14) List $ 181.78 (e) (c _ d) $ 173.12 (f) (b _ d) .o rehab) If possible, please prioritize Other Source of Other c CDBG Funds Funds Funds the budget Renovations at 430 Southgate Please place an 'X0 in the Residential Fadiity box that applies. Expanded lobby area, new $464,239 $23,211 MECCA x 111112 carpeting, upgrade fixtures and surface finishes throughout facllity Renovations of 238 Stevens Drive Five new offices, new conference 98,418 - $4,921 MECCA x 111112 room and lobby area $ Volunteer Contribution $ (Total from Question #11 Totes/ $562,657 $28,132 Amount of private \agency \other funds Amount of CDBG funds Total Project Funding Number of persons assisted Total cost per person Total CDBG Cost Per Person $ 28,132 (a) $ 562,657 (b) 590,789 (c) (a + b) 3,250 (d) (see question 14) $ 181.78 (e) (c _ d) $ 173.12 (f) (b _ d) 11. If volunteers are used please describe how these volunteers are utilized for the proposed activity and estimate the amount of volunteer time and value dedicated to the identified tasks. Unskilled labor hours x $10 per hour = $ Skilled labor ( ) hours x $ per hour = $ Skilled labor ( ) hours x $ per hour = $ Total Is I 12. Does the proposed project pay full property taxes? Oyes X No If yes, what is the estimated value of taxes generated from this Project? $ If property taxes are not paid, does the proposed project pay a Payment In Lieu of Taxes or a reduced tax rate? X Yes ONo If yes, what is the percent of full taxes paid? 66 % and amount paid is $ 25,000 *MECCA pays $25,000/ year in property taxes for our 12 transitional housing units located at 438 Southgate. We do not pay taxes for the first floor of the building, which conslsts of offices, nor does MECCA pay property taxes on our properties at 430 Southgate or Stevens Drive. 13. Briefly outline the proposed timetable for the commitment and expenditure of the funding being requested (include other project factors such as rezoning, construction schedule, or application(s) for other funding). Date: Description of Activity: Public Facility, Planning & Other Projects 1 FYI CDBG Funding Request 14. Please indicate the population to be served by the proposed project according to the income categories shown in the Applicant Guide. (Please Note: ZffNs appllcadon Is funded, the Information In dils table wi11 be used as income targeting for die CDBG Agreement), Number between 0 - 30% median income Number between 31 - 50% median income Number between 51 - 80% median income Number between 80 - 100% median income Number over 100% median income Total Percent LM Percent Iowa City Residents 1968 persons (a) 280 persons (b) 108 persons (c) 24 persons (d) 16 persons (e) 2401* persons (f) 98 _% (a +b+c) +f 30.3 % ** * 849 clients did not report an income. Total client count is actually 3250 (FY10). ** 987 clients reported an Iowa City / Coralville address, which is 30.3% of 3250 (FY10). 15. Please select one main objective, outcome, and output indicator for the proposed project (see applicant guide). Second, provide specific project indicators in the narrative (i.e. number of units to be rehabilitated, number of households assisted, number of units constructed, etc.) Objective: X Suitable living environment O Decent affordable housing O Creating economic opportunities Outcome: X Availability /accessibility O Affordability Output Indicator: X Persons O Households 16. On the attached map, indicate the location of the proposed project. O Sustainability O Housing units Public Facility, Planning & Other Projects 2 FYI I CDBG Funding Request 17. Please list amount of CDBG funds received within the last three City fiscal years and the status of the project(s) undertaken. (City fiscal year July 1 to June 30) Fiscal Year Funds Recv'd Budgeted Amount Amount Expended Date Project Completed FY08 (July 2007 - June 2008) aid to agency only End of FY08 FY09 (July 2008 - June 2009) $11,400 $11,400 End of FY09 FY10 (July 2009 - June 2010) $32,399 $32,399 End of FY10 18. Is the applicant (including partners, co- applicants, etc.) currently in compliance with all federal, state and local laws, rules and regulations including any CDBG and /or HOME funded projects? X Yes ONo If "No" or the matter is currently in litigation please give the name of the case and explain the basis of the case. 19. If the applicant has not received CDBG funds in the last three years, please provide evidence of your organization's capacity, financial skills, commitment and /or experience to undertake and complete the proposed project within the established timetable and budget. Public Facility, Planning & Other Projects 3 FYI I CDBG Funding Request CITY OF IOWA CITY Matt At M Date: May 12, 2011 To: Housing & Community Development Commission From: Jeff Vanatter, Housing Rehabilitation Office Re: Housing Rehabilitation program overview and update The City of Iowa City Housing Rehabilitation program provides guidance and financial assistance to help residents maintain and update their homes. This assistance provides lower income homeowners the opportunity to make repairs to their homes that enable them to stay living in their homes and helps to maintain Iowa City's housing stock. The Housing Rehabilitation Program administers two major programs: 1) the federally- funded housing rehabilitation program, and 2) the General Rehabilitation and Improvement Program (GRIP). In addition to these programs, the Housing Rehabilitation staff has spent half of the past year administering the State and Federal Jumpstart Disaster Recovery Housing Repair assistance programs to help with recovery from the Flood of 2008. An additional program that staff is administering is the UniverCity Neighborhood Partnership program. Staff is also conducting salvage inspections and final walkthrough inspections of all flood buyout properties, as well as, providing code inspection and lead inspection services to all sub - recipients of the City of Iowa City's federal entitlement funding. The federally- funded housing rehabilitation program is funded through the - Community Development Block Grant (CDBG) and HOME Investment Partnership programs and primarily provides assistance in the forms of low- interest or no- interest loans and /or conditional occupancy loans. The type of loan is dependent on the homeowner's ability to pay. The federally- funded housing rehabilitation assistance is offered through six specific programs: 1. Comprehensive Rehabilitation Program - Allows for the rehabilitation of a structure in order to meet housing quality standards of the Iowa City Housing Code and includes repairs to all major interior and exterior systems. Assistance ranges from $3000 - $24,999 per project. 2. Emergency Assistance Program — Provides assistance to help correction of major housing code violations and any other condition which make the structure uninhabitable or unsafe. Assistance ranges from $100 -$6000 per project. 3. Exterior Repair Program — Covers the cost of any exterior repair to the main structure. Assistance ranges from $1000 - $15,000 per project. 4. Residential Accessibility Program — Includes improvements to the home to make it accessible for homeowners with disabilities so that they may live independently in the home. Assistance ranges from $1000 416,000 per project. 5. Manufactured Home Repair Program — Applies to manufactured home repairs to items affecting home safety, such as doors, furnaces, water heaters, plumbing„ electrical and steps. Assistance ranges from $500 -$5000 per project. 6. Energy Efficiency Program — Runs September 1s' to March 1St each year, subject to funding availability. Eligible costs are limited to costs associated with the purchase of high efficiency heating equipment, the conversion or modification of a heating system, and costs for insulation. Assistance ranges from $300 -$4000 per project. GRIP is offered as a compliment to the federally- funded CDBG /HOME programs without the same level of income targeting. It is designed to stabilize and revitalize targeted neighborhoods through the broader applicability of our Housing Rehabilitation and Historic Preservation programs. Repairs and improvements can be made to all interior and exterior systems. This program provides assistance in the form of low- interest loans that are repayable over a 20 -year term and is funded by the City through general obligation bonds. Assistance ranges from $10,000 440,000 per project. The State and Federal Jumpstart assistance programs are funded by federal CDBG and State funds. These funds can be used to procure repairs or reimburse for repairs that are needed by homeowners that were affected by the Flood of 2008. Each round and /or source of funding has had different priorities or rules that have greatly affected the disbursement of the funds. All funds are provided in the form of 5 -year declining balance loans, with 20% of the loan being forgiven annually until the balance is zero. Housing Rehab staff continues to work on the UniverCity Neighborhood Partnership's owner - occupied acquisition /rehab program. The purpose of the program is to help restore the balance between owner - occupied homes and rentals in several neighborhoods around downtown and the University of Iowa campus. The homes are purchased with funds from a revolving loan pool drawn from five local banks and the rehab work is funded with $1.25 million in State of Iowa I -Jobs funds, and the homes are then sold to income - eligible households. The University of Iowa has also pledged $200,000 towards down payment assistance for any permanent University employee buying one of the program's homes. The City of Iowa City Housing Authority has contributed $100,000 to the program as well. As of May 12, 2011, we have expended $109,056.11 in project costs and administration on 16 CDBG- funded projects, with the average median income for these households being 29.1%. We have committed approximately $24,000.00 to other projects that are started or are about to begin. The Rehab Office has expended $112,270.45 in project costs and administration on 3 HOME - funded projects, with the average median income for these households being 43.6 %. We have committed approximately $72,000.00 to other projects that are started or are about to begin. Under GRIP, we have expended $97,578.85 in project costs on 5 projects. The average median income for these households was 67.6 %. In addition, we have committed approximately $96,000.00 to other projects that are started or are about to begin. Beginning in December of 2008, until this point in FY11, staff has expended $869,500 in Federal Jumpstart housing repair assistance for 18 households. The State Jumpstart housing repair assistance program closed in December, 2010. From December of 2008, until the program closing in December of 2010, staff expended nearly $2.4 million for 88 households. The City has purchased 14 of the UniverCity Neighborhood Partnership's program's 25 homes and, as of May 6, 2011, four homes have been sold to qualifying households. Work continues on most of the properties we currently own and the City is working with prospective buyers for the 2 completed homes that we have left. The 11 homes yet to be acquired have all been identified and have accepted purchase offers in place. They will be purchased in June, July and August. All work must be completed by December 31, 2011. Staff began providing code inspection and lead inspection services to other City departments and to sub - recipients of the City's CDBG or HOME entitlement funds in FY09. In FY11, staff provided code inspections, lead -based paint visual risk assessments, and lead -based paint clearance inspections for 3 properties. As of May 12, 2011, staff has provided salvage valuation inspections and final walkthrough inspections on 22 properties that have been or will be purchased as part of one of the various flood buyout programs. If you have any questions please call me at 356 -5128 or contact me via e-mail atleff- vanattera-iowa- citv.org . Cc: Jeff Davidson, Community Development Staff 07 k CITY OF IOWA CITY MEMORANDUM Date: May 12, 2011 To: Housing and Community Development Commission From: Tracy Hightshoe, Community Development Planner Re: CDBG Economic Development Fund — FY11 Summary (7/1/10 to present) The CDBG Economic Development Fund was created to stimulate private sector investment that results in the creation of permanent, private sector jobs with living wages for low -to- moderate income persons in Iowa City. The Economic Development Fund provides assistance through low interest loans with interest rates ranging from 0 to 4% and repayment terms set at 5 or 7 years. The loans approved are typically for permanent working capital and often in conjunction with a private lender who provides a majority of the funds needed for the business to open or expand. All CDBG economic development activities must meet the National Objective of benefiting low to moderate income persons. The program rule requires that 51% of the jobs created or retained must be held or made available to low -to- moderate income persons based on family size or the business must qualify as a micro - enterprise. A micro - enterprise is a commercial enterprise that has five or fewer employees, one or more whom owns the enterprise. At least 51% of the employees and owners of a micro - enterprise business must be low to moderate income. The CDBG Economic Fund had a balance of $193,329 at the start of FY11. The City received 4 applications in FY11 requesting $106,000 in CDBG funds to start or expand businesses in Iowa City. The Paper Nest, a retail custom print and design company, was awarded $11,000. This business meets the HUD definition of a micro - enterprise. Baroncini LLC, a new Italian restaurant, was awarded $35,000 and will create 6.0 FTE jobs. One application was deferred until the business can obtain partial financing through a SBA loan and the other was deferred until they can find a location for their business. The City had one business, opened in 2007; go out of business in FY11. Nile Valley Restaurant, a.k.a. Ali Baba, closed as the business was not able to generate enough in sales to cover ongoing operations. The owner entered a repayment agreement with the City to pay their remaining balance. There is $147,329 remaining in the Economic Development Fund. On July 1, 2011 an additional $35,428 will be placed in the fund for a total balance of $182,757 available for economic development eligible activities. In FY11, the City hired the National Development Council (NDC) to review economic development and housing proposals, assist in the creation of new financial incentives and assist in the marketing efforts to reach businesses and potential entrepreneurs to create or expand businesses. NDC will be working with the City on redevelopment efforts throughout the City, initially focusing on the Towncrest neighborhood, Riverfront Crossings and the St. Patrick's development site. NDC has experience working with cities and communities in all 50 states to help them create, design, finance and execute their housing, economic and community development projects.