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HomeMy WebLinkAbout05-20-2004 Housing & Community Development CommissionAGENDA HOUSING AND COMMUNITY DEVELOPMENT COMMISSION LOBBY CONFERENCE ROOM, CITY HALL THURSDAY, MAY 209 2004 6:30 P.M. 1. Call Meeting to Order 2. Approval of the Minutes from April 15, 2004 3. Public Comment of Items Not on the Agenda 4. New Business • Review of Allocation Process — Creation of Subcommittee • Discuss Summer Schedule • Announce Upcoming HCDC Appointments 5. Old Business • Discussion, National Community Development Week Celebration • Burns & Burns L.C. — Garden Prairie - Discussion of FY03 HOME Funds 6. Monitoring Reports • Community Mental Health Center — Facility Rehabilitation (Mackel) • Elder Services Inc. — Small Repair Program (Mackel) • Shelter House — Outreach Coordinator (Sandler) • Free Medical Clinic — Case Management (Deeth) • City of Iowa City — Housing Rehabilitation (Barnes) • HACAP — Transitional Housing (Bears) • Greater Iowa City Housing Fellowship — Peninsula Affordable Rental (Anthony) • Ruby's Pearl — Micro -Enterprise (Bears) 7. Adjournment City of Iowa City MEMORANDUM TO: Housing and Community Development Commission FROM: Tracy Hightshoe, Associate Planner DATE: May 13, 2004 RE: HCDC Meeting, May 20, 2004 As you may already know, on May 4 the City Council approved the FY05 Action Plan with one change. The Council voted to reduce the economic development set -aside for FY05 by $25,000 and award it to the Wood Family Resource Center project for a total allocation of $325,000 (the HCDC recommended allocation was $300,000). As with any year, amendments can be proposed at anytime that would affect the Annual Action Plan. A copy of the approved FY05 Action Plan budget is included in the packet for your information. The following is a short description of the May agenda items. If you have any questions about the agenda, or are unable to attend the meeting, please contact me at 356-5244 or by email at tracy-hightshoe@iowa-city.org. New Business Review of the Allocation Process With the FY05 allocation process fresh in your mind, staff is interested in hearing your suggestions for next year. Based on the request at the last meeting, it has been suggested that the commission form a subcommittee to discuss any ideas or suggestions made during this year's allocation process that could improve next year's process. Summer Schedule Typically, the commission does not meet one month during the summer. We will need to discuss summer plans and our meeting schedule over the upcoming months. Please bring your date books. Upcoming HCDC Vacancies Lori Bears, John Deeth, and Matt Hayek's term expires September 1, 2004. If interested in reapplying, please submit your application to the City Clerk before June 9, 2004. Old Business National Community Development Celebration The Community Development Celebration committee has met to discuss proposed dates and location for the celebration. The committee will provide an update at the May meeting. Burns & Burns L.C. — FY03 Garden Prairie (Prairie Garden IHA Limited Partnership). The status of this FY03 project was discussed at the March and May 13, 2004 Page 2 April HCDC meetings. At the last meeting, staff notified the Commission that the District Court did not rule in favor of the Garden Prairie Project regarding the 2003 low income housing tax credit application to the Iowa Finance Authority (I FA). In a letter dated April 15, 2004 Robert Burns requested the Commission table the discussion until the May meeting as Burns & Burns L.C. submitted an appeal to IFA regarding the 2004 application cycle. On April 19, 2004 IFA denied the appeal. See attached letter. If you remember from the April packet, the Prairie Garden IHA LP has applied and been denied Low -Income Housing Tax Credits (LIHTC) in two consecutive application rounds. Under HCDC's current policy, approved for all FY04 projects, after two unsuccessful application rounds, the City of Iowa City will recapture all CDBG/HOME funds. The Garden Prairie Project is a FY03 project; thus, it is not required to meet this policy. However, please note that the current policy was adopted in response to the MetroPlains Development LLC HOME project that failed to secure LIHTCs after two consecutive rounds. In 2003, HCDC did recommend the recapture of FY02 funds from MetroPlains Development LLC. Staff will request a representative from Burns & Burns to be present at the meeting to discuss their current plans for this project. Attached is an updated timeline for your review. Monitoring Reports (The number of reports is growing, please have information ready to share with the commission as the fiscal year is quickly coming to a close.) • Community Mental Health Center — Facility Rehabilitation (Mackel) • Elder Services Inc. — Small Repair Program (Mackel) • Shelter House — Outreach Coordinator (Sandler) • Free Medical Clinic — Case Management (Deeth) • City of Iowa City — Housing Rehabilitation (Barnes) • HACAP — Transitional Housing (Bears) • Greater Iowa City Housing Fellowship — Peninsula Affordable Rental (Anthony) • Ruby's Pearl — Micro -Enterprise (Bears) MINUTES PRELIMINARY HOUSING AND COMMUNITY DEVELOPMENT COMMISSION APRIL 15, 2004 — 6:30 P.M. LOBBY CONFERENCE ROOM, CITY HALL Members Presents: Jerry Anthony, Erin Barnes, Lori Bears, William Greazel, Matthew Hayek, Shellie Macke[ Members Absent: John Deeth, Jayne Sandler, Mark Edwards Staff Present: Tracy Hightshoe Recommendation to Council. MOTION. Anthony moved to recommend adoption of the FY05 Annual Action Plan by the City Council, Greazel seconded. All in favor, motion carries 6-0. CALL TO ORDER Chairperson Hayek called the meeting to order at 6:30 PM. CONSIDERATION OF THE MINUTES OF THE MARCH 11 & 18 2004 MEETINGS In regards to the March 18 thminutes, Hayek said he has a couple corrections. The first correction is that Grant Wood School is two separate words, not one. The second correction is on page 8, third paragraph, where Hayek says "effective"; it should read "affected". MOTION: Barnes moved to accept the minutes as amended; Bears seconded the motion. All in favor; motion passed 6-0. PUBLIC COMMENT OF ITEMS NOT ON THE AGENDA None. REVIEW FY05 ANNUAL ACTION PLAN Hightshoe explained to the Commission that the submission of an Annual Action Plan is a HUD requirement and in HUD format. She explained the various forms to the members, and gave them a quick run down of how it all fits together. City Council will hold a public hearing on the Action Plan at their May 4`h meeting followed by a vote. The Plan must be submitted to HUD by May 15th. Bears asked if the Council normally approves the Plan. Hightshoe gave some history to the members. Members were asked to contact Chairperson Hayek if they decide to attend the May 4th meeting. Anthony asked some questions about HOPWA funding and if the numbers reported in the gap analysis were updated. Hightshoe responded that the Plan is updated every year. The numbers are probably the figures in last year's continuum of care application, as the current figures are not available yet. Thus the report usually contains the prior year's figures. Hightshoe will confirm and email Commission members and let them know. Information concerning HOPWA funds will be added to the narrative. MOTION: Anthony moved to recommend adoption of the FY05 Annual Action Plan by the City Council; Greazel seconded. All in favor; motion carries 6-0. NEW BUSINESS Burns & Burns L.C. — Garden Prairie — Chairperson Hayek stated that members have received a copy of a letter regarding this topic. It deals with the Burns & Burns appeal of the FY03 tax credits, which were denied, and the ensuing appeals have also been rejected. They have a FY04 appeal in the works right now. Hayek recommended to the Commission that they table this issue until May. MOTION: Greazel moved to table the issue until the May meeting; Anthony seconded. All in favor; motion carries 6-0. Discussion of National Community Development Week Celebration -- Hightshoe explained the National Community Development celebration, stating the national celebration is in April, but since this is too close to their allocation cycle and would limit their planning, they celebrate during the summer with various events. At this celebration the staff highlights what CDBG and HOME Funds have done in the community. Hightshoe asked for volunteers to help plan this year's celebration. Hayek, Barnes, and Greazel volunteered. Housing and Community Development Commission Minutes April 15, 2004 Page 2 Greazel had questions regarding the last meeting and the allocation process. Hlghtshoe stated that this is on the May agenda. She said that once they go through the allocation process, the commission sets up a committee to see if any changes are needed or desired. Greazel stated that it would be helpful to the newer members to have some history, and some further explanations. It was suggested that newer members read some of the past minutes. Bears brought up the topic of the Housing Authority's Annual Plan and stated she would be interested in hearing from them again. She also asked if the Visual Preference Group would have any recommendations on housing. OLD BUSINESS Discussion of FY04 CDBG Projects that have not performed per the Unsuccessful or Delayed Projects Policy — Discussion centered on the list of projects that have not met the policy to date. Hightshoe discussed the list and answered questions from members. Elder Services — Small Repair is the only project so far that has not spent 50% of its funding. Discussion continued about this project, with Hightshoe giving details of the status of this project. The members stated they would not recommend recapture but want status updates in the upcoming months. MONITORING REPORTS Chairperson Hayek stated that both Sandler and Deeth are not present, and therefore that leaves reports by Mackel and Barnes. Mackel stated that she will have her report in May. Barnes stated that her report is on the Shelter House, Emergency Assistance Program. She explained how the program works in helping low-income people get either security deposit or emergency assistance for utilities. Since July 2001, 218 households have been served in Iowa City and Coralville. Most referrals are byword of mouth, or through landlords. Members asked Barnes questions concerning this emergency program. ADJOURNMENT MOTION: Barnes made a motion to adjourn; Mackel seconded. All in favor; motion carries 6-0. The meeting adjourned at 8:20 PM. data on dtynt/pod/Mnutm/hodc/2004/hcdc04-15-04.doc Exhibit A PROJECTS RECOMMENDED FOR FY05 CDBG AND HOME FUNDING 5/4/04 Request Council Approved ECONOMIC DEVELOPMENT PROJECTS (Set -aside $170,000) Economic Development Fund - City of Iowa City $ 170,000 $145,000 Subtotal $170,000 $145,000 PUBLIC FACILITIES PROJECTS (Est. Set -aside $367,000) Facility Construction - Iowa City Community School District $350,000 $325,000 Facility Rehabilitation - United Action for Youth $ 60,000 $ 30,000 Facility Rehabilitation - Old Brick Foundation $ 40,400 $ 30,000 Facility Rehabilitation - Free Lunch Program $ 3,384 $ 3,000 Facility Rehabilitation - Domestic Violence Intervention Program $ 4,478 $ 4,478 Facility Rehabilitation - Neighborhood Centers of Johnson County $ 8,600 $ 6,000 Facility Rehabilitation - 4Cs Child Care 35,090 32,000 Subtotal $501, 952 $430, 478 PUBLIC SERVICE PROJECTS (FY05 Statutory Cap $165,000) Operational Expenses - Compeer $ 6,000 $ 3,434 Case Management - Iowa City Free Medical Clinic $ 30,000 $ 16,500 Shelter Coordinator - Shelter House $ 30,000 $ 16,500 Operational Expenses - Eagles Flight (Hannah's Blessing Daycare) $ 16,700 $ 6,000 Operational Expenses - Eagles Flight (Youth Program) $ 13,560 $ 3,635 Operational Expenses - Goodwill Industries $ 20,000 $ 8,000 Planning - Neighborhood Centers of Johnson County $ 20,000 $ 5,931 Aid to Agencies $105,00 $105,000 Subtotal $2411260 $165,000 HOUSING PROJECTS (Est. Set -aside $951,000) Affordable Homeownership -Habitat for Humanity $350,000 $184,207 Affordable Rental Units - Blooming Garden L.P. $480,000 $200,000 Affordable Rental Units - Greater Iowa City Housing Fellowship $223,000 $190,000 Transitional Housing - Hawkeye Area Community Action Program $148,000 $148,000 Deposit Assistance Program - Shelter House $ 5,000 $ 5,000 Housing Rehabilitation -- City of Iowa City $200,000 $200,000 Subtotal $1,406,000 $ 927,207 ADMINISTRATION AND PLANNING HOME Program Administration $ 71,498 $ 71,498 CDBG Program Administration and Planning $164,800 $164,800 Subtotal $236,298 $236,298 TOTAL $2,555,510 $1,903,983 SOURCES OF FUNDS FY05 CDBG Entitlement $804,000 FY05 CDBG Estimated Program Income $ 20,000 Unexpended CDBG Funds (from contingency, projects and unallocated PI) 30$ 0,000 TOTAL CDBG $1,124,000 FY05 HOME Allocation $714,983 FY05 HOME Estimated Program Income $ 55,000 Unexpended HOME Funds (from unallocated PI) 1$ 0.000 TOTAL HOME $ 779,983 FY05 TOTAL $11,903,983 MAY 03 2004 12:05 FR IOWA FINANCE AUTHORIT515 242 4957 TO 913193565217 Iowa Finance Autho__ritu NY! S 71NG IN NOME AND G O M N I/N 1 v April I9, 2004 VIA FACSIMILE and U.S. MAIL Mr. Robert A. Simons Mr. Paul S. Swinton Morain Burlingame and Pugh Law Firm $400 University Avenue West Des Moines, IA 50266 P.04/05 RE: Iowa Finance Authority 2004 Tax Credit Awards; Appeal of denial of tax credits to Prairie Garden IHA Limited Partnership ("Prairie Garden") Pursuant to Section 9 of the 2004 Qusdiitod Allocation Plan; Dear Messers Simons and Swinton: Pursuant to Section 9 of the Iowa Finance Authority's 2004 Low -Income Housing Tax Credit Program Qualified Allocation Plan (the "QAP'), the undersigned Executive Director of the Iowa Finance Authority (the "Authority") hereby issues the following decision: This decision is based on the project applications, the materials gathered and created by Authority staff in reviewing the Project's application, and all of the information presented at the appeal hearing held on April 12, 2004. This information is now part of the Authority record in this matter. The applicant is appealing the denilsl of tax credits for Prairie Garden. The Prairie Garden Application was rejected after Authority staff determined that the per -unit cost Cap under the QAP was exceeded, thus Creating a gap in financing. The application was not scored, was not recommendtid for funding, and the Authority board ultimately did not award tax credits to this pn)joet. Appellant argued that the Authority staff should have considered a procedure whereby the Secmtary of HUD could waive the per -unit cost limits, and allow up to 240a/a of basic, Whilo 1 will not attempt to summari2x all of the evidence presented by the Appellant or Authority staff, I will highlight sonic of the arguments. Appellant argued that the QAP was not clear and could be interpreted to allow for the cost cap to be exceeded under a procedure in a HUD handbook which allows for up to 240% of basic. This project would require 216% of basic. Appellant pointed out that Iowa City is A very high cost area of the state and that scattered site projects arc Thames J. V. ,1. Stilly J. Padl r: 1" Mlchati t Tram6 IOAII 011mg Vmcent Steven Ad Kay Ande Virginia O4rd Cumela On Rogef caul Nancy E% Richard Wr Oaugles VVe III Eau Ono/ An: laic . lam Mahan, rasa we MAIN OFFI 11514L4f 100.4RX ;. 515,241.4s SECTION 1 off 115,242.11 077.428.08 515.2a2 02 T 511241.41 MAY 03 2004 12-05 FR.IOWA FINANCE AUTHORIT515 242 4957 TO 9131g3565217 P.05i05 Preferred Out by the city. The projtxt points ouconsisted of seven duplexes and one three-plex. Appellant t that scattered site projtxts are generally higher cost than a project at a single location. Authority staff noted that a deficiency letter was sent, noting that the f the cost cap, and the response from the applicant was to point out the hand book violation allows for the waiver from the WUl7 secretary, Authority staff argued that the QAP was clear, and that the Authority set a cost alp limit that would have allowed a per -unit cost cap of 177% of basic in lows City, which wouldamou specifically references the per-unto a cost cap in excess of $170,000 per unit. The QAP it limit as set forth by HUD 221 (d)(3) high cost mortgage limits by bedroom size as outlined in an attachment to the application, and that the QAP and the attachment make no reference to a procedure for a wavier of those limits. I would make the following comrients reviewing the testimony and record in this case While the appellant presented evidence That Iowa City is a high cost area in which to build, and that scattered site projects appear to be preferred by the locality, I conclude that a per -unit cap of $170,000 is reasonable. I will, however, direct staff to look at this issue again in preparation for the 2005 QAP and determine whetter there should be any adjustment to the per-unicop they relate to scattered site development and high cost areas of the state t st ca$0 After careful consideration of the information received at the April 12, 2004, appeal hearing, and reviewing the Authority record in the matter, I have come to the following decision. First, that the QAP is reasonable and fair, furthering the goals and purposes of the Section 42 program and Iowa Code Chapter 16 of the State of Iowa. Secondly, the cost cap limits as set forth in the 2004 QAP are reasonable. Thirdly, Authority staff acted reasonably in not scoring the application due to the violation of the per -unit coat cap; causing a gap in financing. Fourth, the subsequent ftcomtnendation to the board not tc award tax credits to this project was in no way arbitrary or capricious. Whmare, I Jlnd that the nwommertdanon of the staff of the Authority,and the March 3, 2004, decision of the Board ofDirectors oj'the Authority not to award tax credits to the Prairie Garden Project was and is appropriate. Pursuant to Section 9 of the QAP, this written decision of the Executive Director shall be delivered to the Board of the Authori-y at the May 5, 2004, meeting, Sincerely, Michael L. Tramontina Executive Director ** TOTAL PAGE.05 ** PRAIRIE GARDEN IHA LIMITED PARTNERSHIP TIMELINE ■ July 1, 2002 — FY03 Iowa City HOME Award to Prairie Garden IHA LP ■ Iowa City HOME Agreement signed August 27, 2002 ■ Acquired three duplex lots for $90,000 in October 2002 (Whispering Meadows) ■ Acquired four duplex lots for $183,600 in October 2002 (Catskill Court) ■ Applied for 2003 Low -Income Housing Tax Credits (LIHTC) in Fall 2002 ■ Iowa Finance Authority (IFA) did not fund the 2003 LIHTC application in March 2003 ■ Appealed Iowa Finance Authority's decision to not award LIHTC in April 2003 ■ Appeal to Iowa Finance Authority for 2003 LIHTC was denied ■ Applied for 2004 Low -Income Housing Tax Credits in Fall 2003 ■ Case heard in Johnson County District Court on January 22, 2004 (Prairie Garden IHA LP vs Iowa Finance Authority regarding 2003 LIHTC decision) ■ Iowa Finance Authority did not fund the 2004 LIHTC application in March 2004 ■ The Johnson County District Court affirms the decision of the Iowa Finance Authority's 2003 LIHTC award decision on March 24, 2004 ■ Prairie Garden IHA LP appeal hearing for 2004 LIHTC on April 12, 2004 ■ Appeal to Iowa Finance Authority for 2004 LIHTC was denied April 19, 2004. ■ To date, $277,700 of the $301,200 in Iowa City HOME funds have been expended 05/13/04 City of Iowa City MEMORANDUM DATE: April 28, 2004 TO: City Council and City Manager FROM: Steven Nasby, Community Development Coordinator t^� RE: Approval of the FY05 Annual Action Plan A public hearing on the FY05 Annual Action Plan is scheduled to be held on May 4 to receive public input regarding this plan. In addition, on April 15 the Housing and Community Development Commission (HCDC) held a public meeting to discuss this plan. At that meeting, HCDC also voted unanimously to recommend approval of the FY05 Annual Action Plan as presented. At the May 4 City Council meeting we are requesting that the Council approve the FY05 Annual Action Plan. The deadline for submission of this plan to the U.S. Department of Housing and Urban Development (HUD) is May 15. If needed, amendments or changes to this plan may be considered at your May 4 meeting. Should changes to the FY05 Annual Action Plan occur you could approve the plan, as amended. A "draft' copy of the FY05 Annual Action Plan is included in this City Council packet. If you have any questions about the FY05 Annual Action Plan or the proposed projects please call me at 356-5248 or via e-mail at Steven-Nasby@iowa-city.org. Cc: K in Franklin, Director of Planning and Community Development using and Community Development Commission Page 1 of 1 Tracy Hightshoe From: Sandy Pickup Sent: Tuesday, April 27, 2004 4:41 PM To: council@iowa-city.org Cc: Tracy Hightshoe; Stephen Long Subject: CDBG I want to thank the Council, Planning staff & HCDC for the opportunities provided to Free Medical Clinic by the commitment of each group, to improve the health of the community. Without your support we would be unable to fulfill our mission of "providing health care to those in need". I would like to invite each of you to the Clinic to see how the dollars you allocate help the people in our community. Thank you again for your ongoing support. Sandy Pickup Co -Director Iowa City Free Medical Clinic Notice: This e-mail (including attachments) is covered by the Electronic Communications Privacy Act, 18 U.S.C. 2510-2521, is confidential and may be legally privileged. If you are not the intended recipient, you are hereby notified that any retention, dissemination, distribution, or copying of this communication is strictly prohibited. Please reply to the sender (319-337-4459), that you have received the message in error, and then delete it. This information is intended only for the use of the individual or entity named above. The authorized recipient of this information is prohibited from disclosing this information to any other party unless required to do so by law or regulation and is required to destroy the information after its stated need has been fulfilled. Thank you. 04/28/2004