HomeMy WebLinkAboutHCDC packet 11.15.07AGENDA
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
LOBBY CONFERENCE ROOM, CITY HALL
THURSDAY, NOVEMBER 15, 2007
6:30 P.M.
1. Call Meeting to Order
2. Approval of the October 18, 2007 Minutes
3. Public Comment of Items Not on the Agenda
4. Staff/Commission Comment
5. New Business
• Discuss and Review FY09 CDBG/HOME Funding Process Timeline
• Review and Approve FY09 CDBG/HOME Application Materials
6. Old Business
• Annual Review of the 2006-2010 Consolidated Plan (a.k.a. CITY
STEPS) — Discussion and Consideration of Proposed Amendments
7. Monitoring Reports
• Extend the Dream Foundation — Operations (Hart)
• Local Foods Connection — Operations (McMurray)
• Visiting Nurse Association — Mental Health Home Visits (Drum)
• Aid to Agencies - ESI, MECCA, UAY (Hart)
8. Adjournment
r
�, ,.®�� CITY OF IOWA CITY
►�
MEMORANDUM
Date: November 9, 2007
To: Housing & Community Development Commission (HCDC)
From: Tracy Hightshoe, Associate Planner
Re: November Meeting Packet
Below is a brief description of the November agenda items.
New Business
Discuss and Review FY09 CDBG/HOME Funding Process Timeline
The proposed FY09 CDBG/HOME funding process timeline is enclosed. Please review the
entire timeline and also check your calendars to make sure that you will be able to attend the
allocation meetings in February and March 2008.
Review and Approve FY09 CDBG/HOME Application Materials
Enclosed in your packet is a draft of the FY09 CDBG/HOME applications, guide and ranking
forms. Two years ago significant changes were made to the applications. No changes were
incorporated from last year's materials except for the necessary changes to dates and fiscal
years.
HCDC will need to formalize the application materials at this meeting in order for staff to prepare
for the upcoming allocation period. In the Applicant Guide there is a section entitled "New for
FY09". The only new item is that owner -occupied homes or homebuyer assistance utilizing
HOME and/or CDBG funds may be located anywhere in Iowa City without further Council review
or approval.
Old Business
Annual Review of the 2006-2010 Consolidated Plan (a.k.a. CITY STEPS)
The HCDC subcommittee reviewing the needs and priorities in CITY STEPS has met at least
twice to consider changes to the priorities assigned to housing and non -housing community
development needs. The committee is reviewing how many of the needs are identified as high
and if the commission should amend some of the needs to place a greater emphasis in specific
areas. They will report their recommendations at the November meeting. Please review pages
10-14 in the draft applicant guide and/or the Strategic Plan section in the Consolidated Plan.
Monitoring Reports
• Extend the Dream Foundation — Operations (Hart)
Contact Tom Walz (339.0401)
• Local Foods Connection — Operations (McMurray)
Contact Laura Dowd (338.2010)
• Visiting Nurse Association — Mental Health Home Visits (Drum)
Contact Suellen Novotny (337.9686 x148)
• Aid to Agencies - ESI, MECCA, UAY (Hart)
ESI — David Purdy 338.0515, MECCA — Heidi Cuda 351.4357, UAY — Jim Swaim 338.7518
If you have any questions about these agenda items, or will be unable to attend, please contact
me at 356-5230 or by email at tracy-hightshoe@iowa-city.org.
CITY OF IOWA CITY
FY09 ALLOCATIONS TIMELINE
Dates Subject to Change
Dec. 13, 2007 Public notice that CDBG and HOME applications are available
Dec. 19, 2007 CDBG/HOME Applicant Workshop
Jan. 10, 2008 CDBG/HOME Applicant Workshop
May 5, 2008 If Needed —joint HCDC/City Council meeting
May 6, 2008 City -,,Council: public hearing on the FY09 Annual Action Plan
May 6, 2008 City Council Meeting: resolution -approving the FY09 Annual
Action Plan
July 1, 2008 Start FY09 projects
(If awarded funding, no expenses may be incurred prior to
both July 1 AND execution of a CDBG/HOME agreement)
Items in bold are the scheduled HCDC meetings Items in italics are for those
items due from HCDC members to Community Development staff,
111812007
PRELIMINARY
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
MINUTES
OCTOBER 18, 2007
PHEASANT RIDGE NEIGHBORHOOD CENTER
Hightshoe noted that since the Chair, Anthony, was not present, nor the Vice Chair,
Richman, they would need to appoint someone as temporary Chair in order to call the
meeting to order.
MOTION: Drum moved to appoint Shaw as Temporary Chair; seconded by Hart.
Motion carried 5-0.
Call to Order: Shaw called the meeting to order at 6:47 P.M.
Members Present: Steve Crane, Marcy DeFrance, Charles Drum, Holly Jane Hart,
Michael Shaw,
Members Absent: Jerry Anthony, Andy Douglas, Rebecca McMurray, Brian
Richman
Staff Present: Tracy Hightshoe, Steve Long
Others Present: Andy Johnson
RECOMMENDATIONS TO COUNCIL (become effective only after separate
Council action):
None
APPROVAL OF THE SEPTEMBER 20, 2007 MINUTES
Shaw asked if there were any changes, additions to the minutes.
MOTION: Crane moved to accept the minutes as submitted; seconded by Hart.
Motion carried 5-0.
PUBLIC COMMENT OF ITEMS NO ON THE AGENDA
None.
Housing and Community Development Commission
October 18, 2007
Page 2
STAFF/COMMISSION COMMENT
Hightshoe began her comments by stating that she had received an email from Shaw
regarding affordable housing and the Big Ten property downtown that has been proposed
for student housing. Hightshoe stated that she checked with the legal department and the
commission is not able to discuss or make a motion to approve a statement as the
commission/staff did not give the customary 24-hour notice that this would be on
tonight's agenda. Shaw provided a brief update, stating that Planning and Zoning had
originally denied this, but that they were now reconsidering it. Shaw will speak with
Anthony to discuss if they should put it on the November agenda.
HOUSING TRUST FUNDS — Presentation by Andy Johnson, Executive Director of
the Housing Trust Fund of Johnson County
Andy Johnson spoke to the members about housing trust funds, stating that they have
been around for about 30 years, and are becoming very popular. Iowa has 17 trust funds,
according to Johnson. These trust funds are used to address local housing needs.
Johnson said that the goal of the Housing Trust Fund is to fill in the gaps after other
agencies have helped to the best of their ability. He said that with the decreased level in
federal funding for housing, housing trust funds have seen a surge in the needs. In
comparing Johnson County's needs with Van Buren County's needs, Johnson stated that
Van Buren's needs are a bit different than Johnson County's in terms of need for
transitional, rental and owner -occupied housing and/or housing rehabilitation.
The Housing Trust Fund of Johnson County is about three years old, as far as having
funding and staff. Their mission statement is to promote and support affordable housing
in Johnson County, and their vision statement is decent, safe, affordable housing for all in
Johnson County. The primary source of funding is the State Housing Trust Fund.
Johnson also explained they receive additional funds from various sources. They were
recently awarded assistance for rental assistance for the elderly and persons with
disabilities. Johnson noted that the fund is a revolving loan fund. Funds returned are
allocated to new affordable housing projects. Johnson shared with members some of the
Housing Trust Fund's achievements over the past three years, and some of their
partnerships with area affordable housing providers such as Habitat for Humanity.
Johnson spoke about the housing summit they sponsored that took place last November,
at which over 100 business leaders were in attendance to advocate and raise awareness
for affordable housing.
Johnson continued his presentation, discussing where the Housing Trust Fund stands
currently with funding and what they would like to achieve. He stated that there has been
a campaign for a national housing trust fund, but it has not been approved by both houses
yet. He said the goal would be to funnel national funds through a dedicated revenue
source such as Fannie Mae and Freddie MAC to state and local governments. Crane
asked Johnson for more details on the various state trust funds. Johnson explained
various counties within the state have set up trust funds to address local housing issues
and to make them eligible to receive state and/or national funds should legislation pass
2
Housing and Community Development Commission
October 18, 2007
Page 3
that secures a dedicated revenue source. He stated the state housing trust fund
advocacy's network hired a lobbyist to help them with their advocacy goals.
NEW BUSINESS — Annual Review of the 2006-2010 Consolidated Plan (a.k.a. CITY
STEPS)
Hightshoe explained that each year the city conducts public meetings to gather feedback
on needs and priorities for low -to -moderate income persons. The commission and staff
compare the comments received to the existing needs and priorities identified in CITY
STEPS. Three meetings were held, one at Pheasant Ridge Neighborhood Center, one at
Forest View Mobile Home Park and one at Lakeside Apartments. The feedback from the
first two meetings were included in the HCDC packets. (The last meeting was held right
before the HCDC meeting.) Hightshoe asked if after reviewing the comments received if
any needs or priorities must be changed in CITY STEPS.
Long stated that they have had good turnouts at each meeting. A translator was present
for the meetings at Forest View and Pheasant Ridge as a large percentage of the
population did not speak English. Long also spoke about the meeting at Lakeside, and
some of the issues they have been addressing there. He further stated that they just found
out that Lakeside has been sold. He stated that they are looking forward to working with
the new owners to get some issues resolved, with safety being a major issue.
Hightshoe noted that due to some procedural changes, HUD has changed their reporting
requirements. She briefly explained some of the issues, explaining that the format will be
somewhat different. They will have to show goals and accomplishments, with more
detailed required. Hightshoe stated that the commission has another month to decide if
they are going to recommend any changes in CITY STEPS. Members briefly discussed
some of the various key issues of concern. Hightshoe stated that any change in CITY
STEPS requires a 30-day public comment period and must be approved by council.
Long explained to members how they have been targeting specific neighborhoods this
year, in order to get the communication flowing. They have also been combining
meetings with regularly scheduled tenant/resident meetings in order to take advantage of
a larger crowd being present. Each meeting had 25-35 residents.
NEW BUSINESS — Update on FY08 Projects — CDBG/HOME projects that have
not entered a formal agreement with the City of Iowa City
Hightshoe stated that there is an existing policy that requires CDBG and HOME projects
to enter into an agreement with the City within 90 funds from the date funds are
available. She gave the members a quick run down of the various recipients who have
not entered a CDBG agreement with the City. First noted was Neighborhood Centers of
Johnson County (NCJC). Hightshoe noted that NCJC can't enter an agreement until
consent is given from the deed holder of the property at Pheasant Ridge. NCJC has a
land lease with the current owner for the neighborhood center. Staff is working on
getting the owner's consent. HACAP and The Housing Fellowhip (rental project) have
Housing and Community Development Commission
October 18, 2007
Page 4
not entered agreements as a site is not known yet. A site specific environmental review
must be completed before the City can enter an agreement with the recipient. Blooming
Garden has not entered an agreement yet as they are trying to determine which property
is most accessible due to the accessibility regulations for City -assisted housing projects.
Burns and Burns (Blooming Garden) hopes to have construction complete by the fall of
2008. Members asked questions of Hightshoe regarding some of the various aspects of
CDBG funding.
MONITORING REPORTS — Builders of Hope — Transitional Housing (Crane)
Crane reported that he spoke to the director of this program. There are currently six
people living at the house. There are 5 HOME assisted single room occupancy units and
one private unit ("manager's" unit). He further noted that one of the residents is the
"manager" who helps the others get hooked up with available services. Long stated they
had an open house and it is an attractive, well maintained home.
MONITORING REPORTS — Shelter House — Outreach Coordinator (McMurray)
Hightshoe stated that McMurray emailed her about this. Her report stated that Shelter
House served 154 people during the past fiscal year. Of those, 100% were low income,
45 to 50% were women and children, 15% were veterans, and 40% had self -reported
disabilities. Currently, 80 to 90 individuals are being served by the Star program.
MONITORING REPORTS — Shelter House — FY04 Land Acquisition (McMurray)
As for the land acquisition, the balance of the funds is approximately $30,000, and the
Supreme Court decision has yet to be made on this project.
MONITORING REPORTS — Aid to Agencies — ESI, MECCA, UAY (Hart)
Hart asked that she be put on the agenda for next month's meeting with these. She stated
that she put in a call to Elder Services, and will be meeting with them next week.
ADJOURNMENT
DeFrance moved to adjourn the meeting at 7:45 P.M., seconded by Hart. Motion
carried 5-0.
L!
December 2007
FY09 APPLICANT GUIDE
IOWA CITY CDBG AND HOME PROGRAMS
This guide outlines requirements for individuals/organizations (applicants) applying for and receiving
Community Development Block Grant (CDBG) and/or HOME Investment Partnership (HOME) program
funds through the City of Iowa City.
The applications for FY09 funding (housing and non -housing) include a number of narratives, statistical
and financial questions so please contact staff if you have questions or need technical assistance.
HCDC strongly encourages all applicants to attend one of the CI30071-16114E Applicant Workshops.
THE APPLICANT WORKSHOPS
WEDNESDAY, DECEMBER 19, 2007, LI
THURSDAY, JANUARY 10, 2008, EMM,
NEW FOR FY09
Owner occupied homes or homebuyer
anywhere in Iowa City without further
Session)
Financial Information for
The U.S. Department of H(
counties and states) and a
HUD has set a national goy
project. Although this is nc
private funding, volunteers
on your application. Both vi
worth points in the rankina
CDBG_ tHOME Applicants
fusing and Urban Development (HUD) is encouraging both grantees (cities,
plicants (subtecipients such as yourselves) to maximize private investment.
d of leveraging three private dollars for each public dollar invested in a
t a program requirement we are asking you, as applicants, to leverage
and in -kind contributions whenever possible and to include this information
Applicants can apI
All applications re
housing projects n
isattachedherein.
ersand in -kind donations are very important. These contributions are
sand are included in HCDC's evaluation of your application.
for grants and/or loans from CDBG\HOME per the policy.
ved by the due date will be evaluated and ranked by HCDC. Rental
�t submit a proforma with their application. A copy of the ranking sheet
CDBG\HOME Funding Process
The following is a proposed' timeline for the FY09 CDBG\HOME funding process.
1. Applications Due 12 noon -- January 23, 2008
2. HCDC Meeting — Question\Answer with Applicants February 20, 2008
3. HCDC Meeting — Review Grouping and Consensus March 13, 2008
4. HCDC Meeting — Funding Recommendations March 27, 2008
FY09 Applicant Guide
PART I. FEDERAL FUNDING EXPECTED TO BE AVAILABLE FOR FY09
In FY09 the City of Iowa City is expecting to have available approximately $1,638,000 in federal funds
(including FY09 entitlements plus program income) from the U.S. Department of Housing and Urban
Development (HUD). Of this figure, Community Development Block Grant (CDBG) funds account for
about $816,000. The CDBG program may be used to fund a wide range of activities from housing
projects to the provision of human services. The HOME Investment Partnership program accounts for
about $822,000, The focus of the HOME program is for affordable housing activities; homeownership
opportunities, rehabilitation or new construction for rental or owner -occupied: units and tenant based rent
assistance).
The City of Iowa City has adopted the 2006-2010 Consolidated Plan (a.k.a. CITY STEPS), as the
overall guide for allocating CDBG and HOME funds. CITY STEPS has five-year priorities, strategies and
goals designed to address the needs of low-income persons for housing, jobs and services in Iowa City.
Priorities as outlined in CITY STEPS are attached.
Because CITY STEPS is a multi -year plan it is impo
overall strategies and goals are being met. The Cii
Action Plan before it is submitted to HUD. These g
be the method HUD will use to measure the City's
Plan. In order to direct CDBG and HOME funds to
be allocated to five categories. The categories and
are as follows:
Housing Activities
Public Services (capped at 15% of C1
Economic Development Activities*
Public Facilities and Infrastructure
Program Administration and Planning
Cant to structure each annual action plan so that the
y Council will review and approve the FY09 Annual
Dals, and the City's efforts to meet these goals, will
)erformance_and compliance with the CITY STEPS
activities meeting these multi -year goals, funds will
the approximate amount of funds available in each
$ 845,300
$119,000
$82, 900
$369, 000
221 800
TOTAL: $ 1,638,000
*Economic Development Activities - 15% of CDBG entitlement; however new allocation is determined at that time
applications are available to the P blic for the new" fiscal year. The maximum amount available in the CDBG
Economic Development fund shall not exceed $250, 000.
Please note that the dollar amounts assigned to each category are somewhat flexible. Also, it is the City
Council's policy to allocate $105,000 of the Public Services funds to annual operating expenses of
Human Service Agencies, as part of the City's Aid to Agencies budget. This leaves approximately
$14,000 for distribution to other public service activities.
A requirement of the HOME program states that not less than 15% of the HOME allocation be reserved for
Community HousingDevelopment Organizations (CHDOs). In FY09 this set -aside is to be a minimum of
$95,100. This amount is contained in the Housing Activities category as shown above.
Per Resolution #00-402 there is a set -aside for the Iowa City Housing Rehabilitation program. This set -
aside is equal to $170,500 plus the Revolving Loan Fund income generated by the Housing
Rehabilitation Program of $90,000 for a total of $260,500. When the Housing Rehabilitation Program
set -aside is subtracted from the Housing Activities category there is approximately $584,800 left for
distribution to housing applications including CHDOs.
FY09 Applicant Guide 2
PART II. APPLICATION REQUIREMENTS AND CONSIDERATIONS
Applicants for these federal funds should evaluate the following HUD guidelines as well as City policies
contained in CITY STEPS when considering the types of proposals, funding estimates, and time
schedules for achieving their program\project goals.
NATIONAL OBJECTIVE
ALL Proposals must address a Low -Moderate Income Benefit
a. CDBG Funds
The National Objective of the CDBG Program is the "development of viable urban communities
by providing decent housing and suitable living environments, and ,expanding economic
opportunities, principally for persons of low and moderate income." At least 51 % of the program
beneficiaries (persons or households) must have incomes at or below 80%! of the local median
income category. (Where assistance is provided` directly to individual households, (e.g. housing
rehab), all of the households must have incomes below 80% of the median household income).
b. HOME Funds
The national objective of the HOME program is the provision of safe and decent affordable
housing. All activities undertaken with HOME funds must benefit persons or households below
80% of median family income. An additional income restriction is added for rental housing
projects funded by HOME. For these Irental projects, 90% of the HOME assisted units must be
targeted to persons and/or households below 60% of the median family income.
Following are the median income limits established for Iowa City released April 28, 2007
Persons per householdQ/o 60% 80%
1 person
$15 250
$30,480
$40,650
2 persons
$17,450
$34,800
$46,500
3 persons
$191600
$39,180
$52,300
4 persons
$21,800:
$43,560
$58,100
5 persons
$23,550
$47,040
$62,750
6 persons
$25,300
$50,520
$67,400
7 persons
$27,050
$54,000
$72,050
8 persons
$28,800
$57,480
$76,700
The CDBG statute pertaining to the low -moderate income national objective specifies criteria for deter-
mining low- and moderate -income benefit.
1. The activity must be carried out in an area or neighborhood consisting predominantly of low -
moderate income persons, or the activity must involve facilities or services designed for use
predominantly by low -moderate income persons. Demographic information is available at the
Planning Department. In some instances, applicants may need to conduct a survey of the
potential beneficiaries to determine income eligibility.
FY09 Applicant Guide 3
K
3
0
R
Housing that is being improved, as part of a project must be occupied predominantly by low -
moderate income persons.
Job creation or retention as an activity must involve employment of predominantly low and
moderate -income persons.
ELIGIBLE ACTIVITIES
Activities that can be carried out with CDBG funds include, but are not limited to, the following:
• Acquiring real property, demolishing structures and clearing property, and relocation
assistance for residents of property being demolished.
• Rehabilitation or preservation of residential and nonresidential structures, including
weatherization, painting, accessibility improvements; emergency repairs and comprehensive
rehabilitation.
• Construction of public facilities and improvements, such as water and sewer facilities,
infrastructure repairs and installation of curb ramps, construction of neighborhood centers
and installation of accessible playground equipment.
The provision of public services:
Lion, including education, trainin
prevention, child care, recreatiot
City currently allocates $105,000
"Aid to Agencies" budget:
Activities that
iin the limit of ?5% of the community's CDBG alloca-
mployment, health, ,drug abuse, fair housing, crime
►d energy conservation programs. The City of Iowa
he Human Services agencies in conjunction with its
)ME funds include the following:
• Acquisition of real property -(including Homeownership Assistance), payment of "soft" costs
associated with a project, demolition and clearing property, site and infrastructure improve-
ments, and relocation; assistance for persons being displaced by a HOME activity.
of residential structures (comprehensive rehabilitation only).
Tenant Based Rental Assistance (TBRA) for a period of up to 24 months.
• New construction of affordable housing units (rental or owner -occupied).
• Operational expenses and Capacity Building for Community Housing Development Organi-
zations (CHDOs) within the limit of 5% of Iowa City's HOME allocation.
INELIGIBLE ACTIVITIES
The following types of activities that are ineligible include, but are not limited to, the following:
• Buildings for general conduct of government and expenses required to conduct the regular
responsibilities of local government, e.g. street maintenance, public buildings for
government.
• Political, religious and lobbying activities, income payments, such as rent assistance and
mortgage payments.
• CDBG ONLY: New housing construction, except for residential facilities providing shelter for
persons with special needs (homeless shelters, convalescent homes, halfway houses, and
FY09 Applicant Guide 4
group homes).
• Purchase of construction equipment, office equipment, fixtures, motor vehicles, furnishings
or other personal property not an integral structural fixture such as computers and other
office equipment.
PERFORMANCE SCHEDULE AND PAYMENT
Performance schedules will be outlined with the goal of completing the project within the City's
fiscal year (July 1-June 30).
Disbursements can be made AFTER the contract
before July 1, 2008 and/or before a contract ha
Disbursements can be made upon receipt of 1)
rendered, and 2) signed lien waivers (as appropriat
instances, pre -agreement costs may be reimb
Development staff must be contacted prior to m'
verify if the cost may be reimbursed. In case of 'm
funding the City Manager and staff may approve a
In the case of substantial changes (as defined in th
STEPS) the Housing and Community Development
the change and an amended agreement is required.
In the application form, applicants will be asked to m
herein for the proposed project., After this first step,
one of the "Outcomes" that 'a 6 defined herein for th(
the project benefits by plaeing a numeric value in onl
"households" or "housing units".
Objectives
Suitable Living Environm
benefit communities. farr
Decent' Affordable Housing:
designed to cover the wide r
objective focuses on housinc
or community needs and not
be captured above under Su
Creating Economic Opportur
development, commercial rel
gals by
s
has been formalized. Expenses incurred
been entered may not be reimbursable.
invoices: for labor, materials and services
e) covering all amounts to be paid. In some
ursed to applicants; however, Community
aking any pre -agreement disbursements to
inor cost overruns or requests for additional
contract amendment that is non -substantial.
e 2006�2010 Consolidated Plan a.k.a. CITY
Commission and City Council must approve
MEAS
rk one of the "Objectives" that are defined
ie application will then ask the applicant to mark
proposed project. The last step is to quantify
of the "Outputs" categories of "persons",
is related to activities that are designed to
sing issues in their living environment.
activities that typically would be found under this objective are
of housing possible under HOME, CDBG, HOPWA, or ESG. This
(rams where the purpose of the program is to meet individual family
rams where housing is an element of a larger effort (such as would
Living Environment).
This objective applies to the types of activities related to economic
ization, or job creation.
Outcomes
Availability\Accessibility: This outcome category applies to activities that make services,
infrastructure, housing, or shelter available or accessible to low -and moderate -income people,
including persons with disabilities. In this category, accessibility does not refer only to physical
barriers, but also to making the affordable basics of daily living available and accessible to low- and
moderate- income people.
Affordability: This outcome category applies to activities that provide affordability in a variety of ways
in the lives of low- and moderate -income people. It can include the creation or maintenance of
affordable housing, basic infrastructure hook-ups, or services such as transportation or day care.
FY09 Applicant Guide 5
Sustainability, Promoting Livable or Viable Communities: This outcome applies to projects where
the activity or activities are aimed at improving communities or neighborhoods, helping to make them
livable or viable by providing benefit to persons of low- and moderate -income people or by removing
or eliminating slums or blighted areas, through multiple activities or services that sustain communities
or neighborhoods.
Outputs
Households: One or more persons occupying a housing
Persons: An individual or individuals.
Housing Units An occupied or vacant house, apa,r
that is intended as separate living's
For additional information please see the Federal Register, June
BUDGET CONSIDERATION!
In estimating the amount of the prc
documentation for the costs and consid
HOM
• Appraisals, legal fees, title opin
• Building permits, engineering or
advertising and bidding costs for
Other project costs such
environmental studies, fair
included. ADDlibantS shouh
.. Re
it the
CTS ONLY:
or the
`ollowing
and sur
rs.
it.
ngle room (SRO housing)
10, 2005, pages 34044-34054
applicants should try to obtain
ects.
acquisition projects.
fees, professional fees,
rpliancewith HUD regulations (audits, labor standards,
etc.) which are listed in Part 111 of this guide should also be
familiar with that section of the Guide prior to submitting an
, regardless of funding sources, will be required to complete and
the FY09 application form.
HOME funds are required to be matched at the rate of one match dollar for each four HOME
dollars or 25% of the HOME funds being requested. The City has made a commitment to match
local HOME dollars, however, we also expect applicants for local HOME funds to contribute to
meeting this matching contribution (see HOME regulations for eligible forms of match).
** Applicants may wish to meet with staff before filling out the application to discuss the project
budget, potential costs and the estimates for project expenses.
PART III. COMPLIANCE WITH FEDERAL REGULATORY REQUIREMENTS
All CDBG\HOME contracts include requirements imposed by various Federal -sponsoring agencies.
These include procurement standards for labor, materials, supplies and services not only related to the
project but also to the applicant's operation.
FY09 Applicant Guide 6
1. Procurement standards and subcontracting requirements are set forth in OMB Circular A-110
and 24 CFR Part 85. This circular is provided to the applicant at the time of signing the
Agreement with the City. However, the following list briefly describes the main points in
contracting for services and purchasing supplies and materials.
2. Affirmative efforts shall be made to utilize small and minority -owned businesses or sources of
supplies and services. Conflict of Interest rules will also apply.
3. Construction contracts in excess of $2,000 shall comply with the, Fair Labor Standards Acts.
Specifically, 1) The Davis -Bacon Act which requires contractors to 'pay wages to laborers and
mechanics at a rate not less than the minimum wages specified in a wage determination made
by the Secretary of Labor, 2) Copeland Anti -Kick Back Act which prohibits employers from
inducing employees to give up any part of the compensataonto�which they are otherwise entitled,
and 3) The Contract Work Hours and Safety Standards Act which requires contractors to
compute wages on the basis of a standard work week of 40 hours.- Work in excess of the
standard workweek shall be permissible if the worker is compensated at a rate of 1'h times the
basic rate of pay for all hours worked in excess of 40 hours in the workweek. No worker shall be
required to work in unsanitary, dangerous or hazardous surroundings.
4.
Contracts over $10,000 shall contain requ
Provisions for termination shall
6. Records should be kept for all pros
must utilize the competitive seale
Procurement by small purchase proc
or rate quotations :shall be obtained
method.
7. Contracts in' -excess of
administrative, contractua
contract terms.
ual Employment Opportunity.
in a
its. Construction projects for more than $100,000
(formal advertisement) method of procurement.
shall be utilized for projects $100,000 or less. Price
n adequate number of qualified sources under this
shall contain provisions and conditions that allow for
.medies in instances in which contractors violate or breach
8. Contracts in excess of $100,000 shall meet bonding and Section 3 requirements. Minimum
bond requirements'include:'bid guarantee equal to 5% of bid price, performance bond for 100%
of contract price and payment bond for 100% of contract price.
9. Provisions regarding federal regulations on Non-discrimination, Equal Employment, Affirmative
Marketing and Fair Housing.
10. Acquisition, Displacement and Relocation are also contained in the Agreement.
11. Lead Based Paint regulations regarding interim controls and abatement may also apply.
PART IV. FINANCIAL MANAGEMENT
Standards for financial management and record keeping are provided in OMB Circulars A-110 and A-
122 and 24 CFR Part 84. Local accountants and agency directors experienced with federal
requirements may be helpful resources.
• Each recipient shall have a financial management system that provides effective control over and
accountability for all funds, property, and other assets, must identify the source and application of
FY09 Applicant Guide 7
funds for federally -sponsored activities, and permit the accurate, complete, and timely disclosure of
financial results in accordance with the reporting requirements of the City and HUD.
• A separate ledger for the CDBG and/or HOME account is strongly recommended.
• Appropriate time distribution records must be kept for employees paid with CDBG funds in addition
to other funds.
• All project -related expenditures must be supported by third party documentation (invoices, contracts,
and purchase orders). Lien waivers are required from all contractors and subcontractors.
• Reductions in project costs or increases in the commitment of other funding, if any, shall be brought
to the immediate attention of staff. The impacts of these changes must be discussed with staff and
appropriate reductions in CDBG and/or HOME funds may be made on'a pro -rated, case -by -case
basis.
PART V. REPORTING AND MONITORING
Community Development staff will monitor all aspects of the project beginning with pre -agreement
activities, goal setting to project closeout. Any project changes must be approved by the City.
All notices and reports should be directed to:
Community Development Department
410 East Washington Street
Iowa, City, Iowa 52240. ,
Periodically Community Development staff and HCDC members will conduct monitoring visits to review
project progress, financial management, construction contracts, time records related to the project as
well as client statistics. Staff will attempt to give reasonable notice prior to the site visit.
In most cases, a financial audit of the project expenditures will be required. Qualified individuals who
are sufficiently independent of the agency and can produce unbiased opinions and conclusions should
conduct these audits. Audit reports should be submitted within six months of project completion and
final disbursement of funds.
For organizations that expect to .receive more than $500,000 in federal assistance from all sources are
required to have an audit covering the financial activities of the organization as well as the project
disbursements will be required as set forth in OMB Circular A-133.
For CDBG projects, all records relating to the project should be kept at least four years after the
submission of the Consolidated Annual Performance and Evaluation Report (CAPER) in which the
activity is reported as complete. The CDBG Agreement should be retained until the end of the
compliance period.
For HOME projects, all records shall be maintained as required in 92.508 Recordkeeping depending on
the type of project (rental, homeownership, or tenant -based rental assistance).
The City of Iowa City requires quarterly reports and has a standardized reporting form. For rental and
homeownership projects, the applicant must complete project close-out forms and submit to the City
upon project completion. The period of affordability does not begin until the City has been notified and
the data entered into HUD's information and management system (IDIS). The compliance period will
vary depending upon the regulatory requirements of the CDBG and/or HOME program and the
FY09 Applicant Guide 8
information contained within the CDBG\HOME application. During the compliance period, Community
Development staff will request records relating to the stated purpose of the project to see if goals have
been carried out, to review the low and moderate income benefit requirements as established by HUD,
and to monitor the financial status of the organization.
PART VI. HOUSING RELATED ITEMS
Site Location. One of the City's goals is to encourage the distribution of housing and residential
facilities (e.g. permanent housing — rental and homeownership, transitional housing, homeless
shelters, and special needs housing). On November 14, 2005 the City Council reached consensus on
identifying areas of the community where the development of assisted housing would be encouraged.
A map of these areas is included within this application packet. Rental housing projects that are
assisted with CDBG/HOME funds and are proposed in areas -not identified for additional affordable
housing opportunities must be approved by City Council. Development of owner -occupied housing or
homebuyer assistance may be located anywhere in lowa City without further review as approved at
the March 19, 2007 City Council work session.
Additional Information Requirements. Before an applicant may enter an agreement with the City,
the applicant must submit updated information such as, but not limited to, the project schedule,
sources and uses statement, construction budget (if applicable), and proforma (if applicable). All
other funding sources must be identified and verification submitted to the City to complete a subsidy
layering analysis when multiple public funding sources are utilized.
Appraised Value at Project Completion. Each housing project, except minor home repairs, funded
with CDBG and/or HOME funds must have an - appraised value at project completion that
demonstrates adequate equity,tosecure any liens. If the project costs exceed the appraised value;
the applicant/owner must repay the "City the difference between the appraised value and the total
project cost, up to 100% of the City's contribution.
FY09 Applicant Guide 9
HUD Table IVA
LISTING OF PRIORITY NEEDS (Rental Households)
Priority Need Level
2000
2000
PRIORITY HOUSING NEEDS
High, Medium, Low,
ESTIMATED
ESTIMATED
(households)
No Such Need
UNITS
DOLLARS
NEEDED
TO ADDRESS
0-30%
31-50%
51-
80%-
Renter
Small
Related
Cost Burden >
30%
H H L
971
$23,304,000
Cost Burden >
H H M
489
$11,726,000
50%
Physical
L L L
N/A
--
Defects**
Overcrowded*
L . L L
N/A
--
Large
Related
Cost Burden >
30%
H M L
145
$3,480,000
Cost Burden >
H H M
68
$1,632,000
50%
Physical
L L L
N/A
--
Defects**
Overcrowded*
WML
N/A:
--
Elder)`
Related
Cost Burden >
30%
M''M L
205
$4,920,000
Cost Burden >
M M M
152
$3,648,000
50%
Physical
L L L
N/A
--
Defects**
Overcrowded*
M M L
N/A
--
*Estimated units were not available in the 2000 U.S. Census and 2000 CHAS data
** Physical defects include an estimate of units that are older than 1980 and rented by LMI
households.
FY09 Applicant Guide 10
LISTING OF PRIORITY NEEDS (Owner Households)
PRIORITY HOUSING NEEDS
Priority Need Level
High, Medium, Low,
2000
ESTIMATE
2000
ESTIMATED
(households)
No Such Need
D
DOLLARS
UNITS
NEEDED
TO ADDRESS
0-30%
31-50%
51-
80
Owner
Small
Related
Cost Burden >
30%
M L L
534
$12,716,000
Cost Burden >
M L L
223
$5,352,000
50%
Physical
H H M
N/A
--
Defects**
Overcrowded*
L L L
N/A
--
Large
Related
Cost Burden >
30%
M' . L L.
72
$1,728,000
Cost Burden >
M L L
24
$576,000
50%
Physical
H H M
N/A
--
Defects**
Overcrowded*
L L L
N/A
--
Elder)
Related »
Cost Burden >
30 /o
M M L
279
$6,696,000
Cost Burden >
M L L
105
$2,520,000
50%'`'
Physical
H H M
N/A
--
Defects**
Overcrowded*
L L L
N/A
--
*Estimated units were not available in the 2000 U.S. Census and 2000 CHAS data
** Physical defects include an estimate of units that are older than 1980 and rented by LMI
households.
FY09 Applicant Guide 11
Priority Need Level
ESTIMATED
PRIORITY HOMELESS NEEDS
High, Medium, Low, No Such Need
DOLLARS
NEEDED
TO ADDRESS
Outreach Assessment
Families
Individual
w/ Special Needs
s
M
M
M_ -�
Emergency Shelters
Families
Individual
s
w/ Special Needs
1,620,000
H
H
M
Transitional Shelters
Families
Individual
w/ Special Needs
s
--
H
H
H
Permanent Supportive Housing
Families
Individual
w/ Special Needs
s
--
L
N
H
Permanent Housing
Families
Individual
w/ Special Needs
s
--
H
H
N
Information on this table is based upon statistics from the 2000 U.S. Census
IV F. N
Tj
TY DEVELOPMENTPLAN
Community Development Priorities
PRIORITY COMMUNITY IDEVELOPMf NT
NEEDS
Priority Need Level
High, Medium, Low,
No Such Need
ESTIMATED 2000
DOLLARS NEEDED
TO ADDRESS
PUBLIC FACILITY NEEDS
Senior Centers
L
$1,200,000
Youth Centers
H
$1,785,000
Neighborhood Facilities
H
$1,785,000
Child Care Centers
H
$2,000,000
Trails, Art, Parks, Recreational Facilities
L
$6,525,000
Health Facilities
L
$100,000
Parking Facilities
N
$1,933,660
Other Public Facilities, Airport, Civic Center
L
$10,400,000
INFRASTRUCTURE IMPROVEMENTS
FY09 Applicant Guide 12
PRIORITY COMMUNITY DEVELOPMENT
NEEDS
Priority Need Level
High, Medium, Low,
No Such Need
ESTIMATED 2000
DOLLARS NEEDED
TO ADDRESS
Solid Waste Disposal Improvements
L
$2,270,000
Flood Drain Improvements
L
$1,750,000
Water Improvements
L
$3,330,000
Street Improvements
L
$2,500,000
Sidewalk Improvements
L
$2,150,000
Sewer Improvements
L
$3,100,000
Asbestos Removal
L
unknown
Other Infrastructure Improvements Needs
L
$441,340
PUBLIC SERVICE NEEDS
Senior Services
H
$1,778,000
Services for Persons with Disabilities
M
$8,031,660
Youth Services
H
$28,792,154
Transportation Services
H
Unknown
Substance Abuse Services
H
$19,923,100
Employment Training
H
$20,054,000
Crime Awareness
L
$3,360,054
Fair Housing Activities
H
$100,000
Tenant/Landlord. Counseling
L
$1,975,000
Child Care Services
H
$20,200,000
Health Services
H
$40,400,025
Other Public Service Needs
H
$37,065,410
ACCESSIBILITY NEEDS
Accessibility Needs,;
H
$22,831,300
HISTORIC PRESERVATION -NEEDS
Residential Historic Preservation Needs
L
$6,500,000
Non -Residential Historic Preservation Need
L
$5,000,000
ECONOMIC DEVELOPMENT NEEDS
Commercial -Industrial Rehabilitation
L
$1,250,000
Commercial -Industrial Infrastructure
L
$1,000,000
Other Commercial Industrial Improvements
L
$1,250,000
Micro -Businesses
H
$500,000
Other -Businesses
M
$225,000
Technical Assistance
M
$50,000
FY09 Applicant Guide 13
PRIORITY COMMUNITY DEVELOPMENT
NEEDS
Priority Need Level
High, Medium, Low,
No Such Need
ESTIMATED 2000
DOLLARS NEEDED
TO ADDRESS
OTHER COMMUNITY DEVELOPMENT
Energy Efficiency Improvements
M
$48,060,000
Lead -Based Paint Hazards
2160 units x 8,000/per
H
$17,280,000
Code Enforcement
L
$4,101,975
PLANNING
Planning
M
$2,069,515
FY09 Applicant Guide 14
Housing and Community Development Commission
Unsuccessful or Delayed Projects Policy
Adopted by City Council March 2, 2004 (Resolution 04-68)
From time to time there may be Community Development Block Grant (CDBG) and/or HOME Investment
Partnership Program (HOME) projects that do not meet the anticipated schedule for implementation as
presented to the Housing and Community Development Commission (HCDC). These circumstances
may be due to unforeseen events (e.g. unfunded applications for other financing).
HCDC recognizes the need to utilize CDBG, HOME and other funding as effectively and efficiently as
possible to meet the needs of low -moderate income household for housing, jobs and services within
Iowa City.
To assist HCDC in evaluating a project's status and ability to proceed the following policy is hereby
adopted to begin with Fiscal Year'04 projects beginning July 1, 2003:
1. All CDBG and HOME projects will have en
City for the utilization of federal funds by S
meet this threshold, the project will be �
circumstances exist. If extenuating circ
will proceed, a new timeline will -be esta
circumstances do not warrant an exten.�
recapture and re -use of the funds to the
2
All CDBG projects (
(50%) of the assist2
provides the recipient with
this threshold for CDBG pi
HOME
per the
unexpended CDBG/H
recommend ationsbe
recipient to retain the'
3. If housing projects i arE
recipient must apply f(
recipient fail to meet tl
the City of Iowa City a
licants
ad for t
All HOM
on. Shou
is :will be
for the
into a formal „agreement with the City of Iowa
nber 30 each year. Should a recipient fail to
wed by HCDC to evaluate if extenuating
Lances exist and it is anticipated the project
ied for the completion of the project. If
of time, HCDC may recommend the
Council.
i)',Will, have expended a minimum of fifty percent
sd project by March 15 each year. This
ys following the start of the fiscal year to reach
acts will expend their funds on a timely basis
,cipient fail to meet these thresholds, all
Lured by the City of Iowa City and
ise of the funds or HCDC may allow the
proved project.
applying, for other funds through various state or federal agencies, the
those funds in the first available application period offered. Should a
is; application threshold, all CDBG/HOME funding will be recaptured by
drecommendations be made by the HCDC for re -use of the funds.
4. Should a recipient be unsuccessful in obtaining the funds listed in the application in the
application round immediately following the allocation of local CDBG\HOME funds, and the
project will not be able to proceed without the aforementioned funds, all CDBG/HOME funds will
be recaptured by the City of Iowa City and recommendations be made by the HCDC for re -use
of the funds or HCDC may allow the recipient to retain the funds for the previously approved
project. If the project is unsuccessful in obtaining the required funds listed in the application
after two consecutive funding rounds following the allocation of local CDBG/HOME funds, the
City of Iowa City will recapture all CDBG/HOME funds.
FY09 Applicant Guide 15
Resolution 07-19, Approved 1/9/2007
CDBG AND HOME PROGRAM INVESTMENT POLICIES
Economic Development
Economic development projects making application to the CDBG Economic Development Fund will be
reviewed by the Council Economic Development Committee. The Council Economic Development Committee
will make a recommendation to the City Council for each project proposed for funding. Said recommendation
shall include the amount of CDBG assistance to be allocated and the terms of investment.
Typically, for -profit business projects will receive low -interest loans; whereas, non -profits may be
recommended for forgivable loans or grants. Decisions regarding investment terms for economic development
projects will be made based on the nature of the project including, but not limited to, the risk, potential for
growth, the number of and quality of jobs created for low -moderate income persons, the ability to repay a loan
and the amount of other funding leveraged.
Housing
Rental Housing. Except as noted below, the interest rate fo
for non-profit owned projects and prime rate(determined at
by the City) minus two points for for -profit owned ;projec
the period of affordability, whichever is less.
Homeownership. Except as noted below, assistance t
options as shown herein. 1. A 20-year loan that m
homeowner sells, transfers title, moves or rents the pr
first. No interest will accrue and no pavments will be req
2. The homeowner has the option to
exceed a 30-year, zero percent (0%)
assistance is provided. 3. If CDBG\Hf
Community Land Trust project, the CD
Tenant Based -Rental Assistance {TBF
lake monthly I
mortized loan;
with
ng activities will be zero percent (0%)
CDBG\HOME agreement is executed
►ation period up to thirty (30) years or
o homeownership projects will have three repayment
ust be paid in full when the low -moderate income
:)perty or the 20-year term expires, whichever occurs
aired to be made by the property owner prior to payoff.
ayments to the City or its designee in a form not to
a 30 year amortized loan must start at the time the
s provided to a certified non-profit organization, for a
mill be in the form of a grant.
All HOME funds provided for TBRA will be in the form of a grant.
Exceptions. The City may grant a different interest rate and/or a different repayment option based on the
nature of the project including, but not limited to, the revenue generated, the ability to repay a loan, the type of
housing provided, the beneficiaries, the amount of other funding leveraged and the location of the site.
Public Facilities
The City of Iowa City, as the recipient of Community Development Block Grant (CDBG) funds, utilizes
these funds for "public facilities"' projects as defined in 24 CFR 570.201 (c) that are completed by the City
and\or subrecipents. The following policy applies to CDBG assistance provided to non -governmental
subrecipients ("governmental' includes only jurisdictions with taxing authority as provided for in Iowa
Code).
FY09 Applicant Guide 16
Projects that receive an allocation by the City of Iowa City will receive an earned grant, as defined herein,
which will be secured by a mortgage or other comparable security instrument. The compliance term of the
earned grant will be determined by the formula also provided herein. At the end of the applicable compliance
term the lien or other security instrument will be released by the City. If the real property is leased, the lease
shall be for a period that matches or exceeds the compliance term of the earned grant.
Earned Grant: Alien against the real property being assisted, or other comparable security, which is
repaid only upon transfer of title, rental of the property, or termination of services or occupancy as
outlined in the applicable CDBG Agreement. If the subrecipient fully satisfies the terms outlined in the
applicable CDBG Agreement the mortgage against the property, or other security instrument, will be
released by the City following the completion of the compliance period that begins on the date of
execution of the mortgage or security instrument.
Earned Grant Formula: The total amount of CDBG
City fiscal year for a "public facility" project divided by
years for the Earned Grant. (For example: $17, 000 in
a compliance term of 5.67 years or 68 months). if thi
term of less than one year (12 months) the minimum
and if the Earned Grant Formula results in a compliar
maximum compliance term shall be ninety-nine (99) yE
Public Service
Public Service projects as defined in 24 CFR 570.201 (e) shall
grant with a term of not less than one year.
stance allocated to a subrecipient in any one
000 equals the number of CDBG compliance
9G assistance divided by $3, 000 would equal
3med Grant Formula results in a compliance
npliance term shall be one year (12 months)
term of more than ninety-nine (99) years the
DBG assistance in the form of a
FY09 Applicant Guide 17
EVALUATION CRITERIA
HOUSING PROJECTS
This ranking sheet will be used as a guide to assist the Housing and Community Development
Commission (HCDC) in the FY09 allocation process. HCDC members will rank each project according to
the questions\criteria shown below.
I. Need\Priority (maximum 20 total points)
Meets identified need in CITY STEPS? Yes No
If yes:
1. What priority level in CITY STEPS? (High=
2. Has the applicant documented the ability of the project to meet thi
Project budget is justified? (Costs are documentedlreasonable) Yes _
If yes:
1. Project leverages human resources? [Volunteers, etc.]
2. Project leverages private financial resources? [Including in -kind]
0 to 25% Private Funds (0-2 points)
26 to 50% Private Funds (3-4 points)
51 % to 75% Private Funds (5-6 points)
76% to 99% Private Funds (7-8 points)
3. Has applicant documented efforts to secure other funding?
SUB -TOTAL
III. Feasibility (maximum 20 points)
1. The level of public subsicly,is warranted? [Private\other''funds not available?] (Yes= 10, No= 0)
2. The project will be completed within the required time period? (Yes= 5, No= 0)
3. Project utilizes community partnerships? (Yes= 5, No= 0)
SUB -TOTAL
IV. Impact\Benefit (maximmu�0-polnts) .
1. Primarily targets low-income persons? (0-30%=10, 31-50%=6, 51-60%=4 points, 61-80%=1)
2. Project -produces adequate benefits to the community related to cost? (Yes= 5, No= 0)
3. Demonstrates innovative solution to -problem? (Yes= 5, No= 0)
4. Project pays full property taxes (5) or a payment in lieu of/reduced taxes (3)? (Yes= 5, 3 No= 0)
5. Project is located in an area encouraged by City Council as identified on the
FY09 Location Map? (Yes= 5, No= 0)
SUB -TOTAL
Applicant can maintain regulatory compliance throughout the project, including the affordability
period? Yes No
If yes:
1. Applicant has strong financial skills?
2. Applicant has the administrative capacity to complete this project?
3. Applicant attended a FY09 CDBG/HOME Applicant Workshop?
PROJECT NAME:
PROPOSED ALLOCATION: $
(Maximum amount of points — 100, Projects under 60 points receive $0)
(Yes= 4, No= 0)
(Yes= 4, No= 0)
(Yes= 2, No= 0)
SUB -TOTAL
GRAND TOTAL
FY09 Applicant Guide 18
EVALUATION CRITERIA
PUBLIC FACILITY, PLANNING & OTHER PROJECTS
This evaluation sheet will be used as a guide to assist the Housing and Community Development
Commission (HCDC) in the FY09 allocation process. HCDC members will evaluate each project
according to the questions\criteria shown below.
I. Need\Priority (16 Points)
Meets identified need in CITY STEPS? Yes No
If yes:
At what priority level in CITY STEPS? (High 10, Medium 6, Low,-3)
Has applicant documented the ability of the project to address this need? (Yes 5, No 0)
II. Resources & Feasibility (15 Points)
Project budget is justified? (Costs are documentedlreasonable) Yes No
If yes:
Program leverages other financial resources?
0 to 25% Other Funds (1) 26% to 50% Other Funds (2)
51 % to 75% Other Funds (3) 76%1 to 99% Other Funds (5)
Applicant has documented efforts to secure other funding? (Yes 5, No 0)
Project will be completed by the end of the fiscal year, 6/30/09? (Yes 3,--- No 0)
Project leverages human resources (volunteers, etc.)? (Yes 2, No 0)
Does the project help persons gain self-sufficiency? Yes No
If yes:
Primarily targets low-income persons? (0-306% (6), 31-50% (4), 51-80% (2))
Project utilizes com rhUnity partnerships to further project's goals? (Yes 5, No 0)
Project Lhas a measurable impact in L
the community? (Yes 3, No 0)
Produces adequate benefits to the community related to its cost? (Yes 3, No 0)
Demonstrates_ innovative solution to problem? (Yes 3, No 0)
1
Applicant can maintain regulatory compliance? Yes No
If yes:
Applicant has strong financial skills and board commitment? (Yes 4, No 0)
Applicant has the administrative capacity to complete the project? (Yes 4, No 0)
Applicant attended a FY09 CDBG/HOME Applicant Workshop? (Yes 2, No 0)
GRAND TOTAL
PROJECT NAME: (Request: $ )
PROPOSED ALLOCATION: (Maximum Amount of Points — 60)
FY09 Applicant Guide 19
EVALUATION CRITERIA
PUBLIC SERVICE PROJECTS
This evaluation sheet will be used as a guide to assist the Housing and Community Development
Commission (HCDC) in the FY09 allocation process. HCDC members will evaluate each project
according to the questions\criteria shown below.
I. Need\Priority (15 points)
Meets identified need in CITY STEPS? Yes No
If yes:
At what priority level in CITY STEPS? (High 10, Medium 6, Low 3)
Has applicant documented the ability of the project to address this need? (Yes,5, No 0)
II. Resources & Feasibility (15 points)
Project budget is justified? (Costs are documentod\reasonable) Yes No
Project will proceed and all funds expended by 6/30/09? Yes No
If yes to both questions:
Program leverages other financial resources?
0 to 25% Other Funds (1) 26% to, 50% Other Funds (2)
51 % to 75% Other Funds (3) 76% to 99% Other Funds (5)
Applicant has documented efforts to secure other funding? (Yes 5, No 0)
Project will be sustained after CDBG funding ends? (Yes 3, No 0)
Project leverages human resources (volunteers, etc.)? (Yes 2, No 0)
III. Impact\Benefit (20 points)
Does the project help persons; gain self-sufficiency? Yes No
If yes:
Primarily targets low-income persons?, (0-30% (6), 31-50% (4), 51-80% (2))
Projectutilizes community partnerships to further project's goals? (Yes 5, No 0)
Projector service has a measurable impact in the community? (Yes 3, No 0)
Produces adequate benefits to the community related to its cost? (Yes 3, No 0)
Demonstrates innovative solution to problem? (Yes 3, No 0)
IV. C
Applicant can maintain regulatory compliance? Yes No
If yes:
Applicant has strong financial skills and board commitment? (Yes 5, No 0)
Applicant has the administrative capacity to complete the project? (Yes 3, No 0)
Applicant attended the FY09 CDBG/HOME Applicant Workshop? (Yes 2, No 0)
GRAND TOTAL
PROJECT NAME: (Request: $ )
PROPOSED ALLOCATION: (Maximum Amount of Points - 60)
FY09 Applicant Guide 20
Public Service Projects (Operations) J;�'�,
Application for FY2009 CDBG/HOME funds CITY OF OF IOWA CITY
Prior to submitting your FY09 CDBG/HOME Application, please make sure to do the
following:
■ Complete Application. Should you have any questions while completing the
application contact Community Development staff at 319.356.5230 or by email at
steve-long@iowa-city.org.
■ Sign the application in blue ink.
■ Submit the original application to the City of Iowa City, Community Development
Department. The application may not be longer than 10 pages, must by typed (10
point font or larger), and must be single sided.
■ Submit one copy of your overall agency budget (summary). The budget summary is
not included in the 10-page maximum count.
■ Send your application by certified or registered mail; overnight delivery service
e.g., Federal Express; or deliver in person and have the application date/time
stamped by a Planning & Community Development representative.
Please remember that only one project proposal may be submitted on each application
form. Please use separate application forms for each project proposal.
Public Service Projects (Operations)
1. Name of program for which funds are being requested:
2. Total Amount of CDBG Funds Requested: $
3. Name and address of applicant/organization:
Signature (please use blue ink):
4. Contact Person:
Phone Number:
Fax Number:
Email Address:
5. Indicate your organization's corporate status and number of years in business in the Iowa City community.
Status: O Non-profit 0 For -profit Years in business:
6. Did you attend the Applicant Workshop? O NO
I] YES - Please indicate date attended: 012/19/07 or 01/10/08
7. Brief summary of the proposed project (please limit response to a paragraph).
Public Service Projects (Operations) 1 FY09 CDBG/HOME Funding Request
8. The objective of the CITY STEPS Plan is to promote a continuum of care within the community that
includes jobs, housing and services for low -moderate income persons. Tell us (a) why this project is
needed, (b) how it fills a gap in the City's continuum of care or partners with other services and (c)
how it addresses the goals cited in the CITY STEPS Plan. Include information from studies\research
or other supporting documentation, where available.
Public Service Projects (Operations) 2 FY09 CDBG/HOME Funding Request
9. Provide a budget breakdown for your specific program or expense. The budget breakdown should include ONLY
those costs directly related to the program or expense. For example, if the project is the addition of one staff
person, the budget should include only the estimated cost of and resources available for that position.
Alternatively, if the project is the implementation of a specific service program, provide the total estimated costs
of and resources available for the project, broken out by general categories such as salaries, materials, office
expense, marketing, etc. (Please include the cost of an audit for any organization that expects to receive over
$500,000 from all federal sources.)
If other non-CDBG resources are used to fund the project/expense, please list the sources, [state if the funds are
in -kind or cash,] and check if the funds are anticipated or already in -hand (committed). If anticipated, indicate
the date the funding will be available if awarded. Document Costs Whenever Possible.
Budget Breakdown
(Include only those costs directly related to the project.)
Expense Category
(e.g. salaries,
acquisition, rehab)
If possible, please
prioritize the budget
CDBG
Funds
Other Funds
List Source of
Other Funds
Type
Status
_
Y
y
U
a
E
Please place an 'X"in the
box that applies:
$
$
$
$
$
$
Volunteer Contribution
Total from Question #10
$
Total
$
$
Public Service Projects (Operations) 3 FY09 CDBG/HOME Funding Request
10. If volunteers are used, please describe how these volunteers are utilized for the proposed activity.
Unskilled labor
hours
x $10 per hour =
$
Skilled labor ( )
hours
x $ per hour =
$
Skilled labor ( )
hours
x $ per hour =
$
Total Is I
11. All public service projects are required to expend their full award and complete the proposed project by the end
of the fiscal year (June 30, 2009). Will you be able to meet this requirement? MYes 17No
12. Please indicate the population to be served by the proposed program according to the income categories shown
in the Applicant Guide. If you are requesting money for a specific administrative expense (e.g., a staff member's
salary), indicate the population served by your agency as a whole. (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
persons
(a)
Number between 31 - 50% median income
persons
(b)
Number between 51 - 80% median income
persons
(c)
Number between 80 - 100% median income
persons
(d)
Number over 100% median income
persons
(e)
Total
persons
(f)
Percent LMI
v (a + b
+ c) _ f
Percent Iowa City Residents
Please describe the basis or methodology used to estimate the number of clients to be served (i.e. survey,
last year's reports, etc.)
Public Service Projects (Operations) 4 FY09 CDBG/HOME Funding Request
13. 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 households assisted, number of persons assisted, etc.)
Objective: O Suitable living environment O Decent affordable housing O Creating economic opportunities
Outcome: O Availability/accessibility O Affordability O Sustainability
Output Indicator: O Persons O Households O Housing units
section ' Applicant
14. In the last five years, has your agency received a CDBG award of which all or a portion has reverted to the City
due to non -expenditure of funds? If so, please explain.
15. 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? OYes ONo
If "No" or the matter is currently in litigation please give the name of the case and explain the basis of the case.
16. 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 implement the proposed program or
service within the established timetable and budget.
Public Service Projects (Operations) 5 FY09 CDBG/HOME Funding Request
Public Service Projects (Operations) 6 FY09 CDBG/HOME Funding Request
► r 1
Public Facility,Planning& Other Projects k
Application for FY2009 CDBG/HOME funds -�-�
CITY OF IOWA CITY
Prior to submitting your FY09 CDBG/HOME Application, please make sure to do the
following:
■ Complete Application. Should you have any questions while completing the
application contact Community Development staff at 319.356.5230 or by email at
steve-longc@iowa-city.org.
■ Sign the application in blue ink.
■ Submit the original application to the City of Iowa City, Community Development
Department. The application may not be longer than 10 pages, must by typed (10
point font or larger), and must be single sided.
■ Send your application by certified or registered mail; overnight delivery service
e.g., Federal Express; or deliver in person and have the application date/time
stamped by a Planning & Community Development representative.
Please remember that only one project proposal may be submitted on each application
form. Please use separate application forms for each project proposal.
Public Facility, Planning & Other Projects
1. Name of Project:
2. Total Amount of CDBG Funds Requested: $ _
3. Name and address of applicant/organization:
Signature (please use blue ink):
4. Contact Person:
Phone Number:
Fax Number:
Email Address:
5. Location of proposed project:
6. Did you attend the Applicant Workshop? O NO
O YES - Please indicate date attended: C312/19/07 or C31/10/08
7. Brief summary of the proposed project (please limit response to a paragraph).
8. Please specify the one most applicable priority need and priority need level, as shown in CITY STEPS
2006-2010, Section IV. Strategic Plan.
Priority Need
Priority Need Level (High, Medium or Low)
Public Facility, Planning 8 Other Projects 1 FY09 CDBG/HOME Funding Request
9. Tell us why this project is needed (include information from stud ies\resea rch 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.
Public Facility, Planning & Other Projects 2 FY09 CDBG/HOME 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. Also, budget for the other
items under Budget Considerations in the FY09 Applicant Guide.
Document Costs Whenever Possible. A construction estimate is strongly encouraged for all
rehabilitation 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.)
Expense Category
(e.g. salaries,
acquisition, rehab)
If possible, please
prioritize the budget
CDBG
Funds
Other Funds
List Source of
Other Funds
Type
Status
_
Y
u
a
E
Please place an 'X"in the
box that applies. -
Volunteer Contribution
Total from Question #11
$
Total
$
$
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
Public Facility, Planning & Other Projects
$ (a)
(b)
$ (c) (a + b)
(d) (see question 14)
(e) (c=d)
(f) (b _ d)
FY09 CDBG/HOME Funding Request
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 =1
12. Does the proposed project pay full property taxes? OYes ONo
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?
Oyes ONo If yes, what is the percent of full taxes paid? 1 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: Description of Activity:
July 1, 2008 Beginning of City Fiscal Year and Project Start Date
Public Facility, Planning & Other Projects 4 FY09 CDBG/HOME 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: If this application is funded, the information in this table will be
used as income targeting for the CDBGAgreement).
Number between 0 - 30% median income
persons
(a)
Number between 31 - 50% median income
persons
(b)
Number between 51 - 80% median income
persons
(c)
Number between 80 - 100% median income
persons
(d)
Number over 100% median income
persons
(e)
Total
persons
(f)
Percent LMI
% (a + b + c) = f
Percent Iowa City Residents
9/0
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:
Outcome:
O Suitable living environment O Decent affordable housing O Creating economic opportunities
O Availability/accessibility
Output Indicator: O Persons
O Affordability
O Households
16. On the attached map, indicate the location of the proposed project.
O Sustainability
O Housing units
Public Facility, Planning & Other Projects 5 FY09 CDBG/HOME 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
(as of 12/31/07)
Date Project
Completed
FY06 (July 2005 - June 2006)
FY07 (July 2006 - June 2007)
FY08 (July 2007 - June 2008)
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? OYes ONo
If "No" or the matter is currently in litigation please give the name of the case and explain the basis of the case.
Public Facility, Planning & Other Projects 6 FY09 CDBG/HOME Funding Request
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 7 FY09 CDBG/HOME Funding Request
Housing:=��,'�
Application for FY2009 CDSG/HOME funds -�-�--
CITY OF IOWA CITY
Prior to submitting your FY09 CDBG/HOME Application, please make sure to do the
following:
■ Complete Application. Should you have any questions while completing the
application contact Community Development staff at 319.356.5230 or by email at
steve-lonL7@iowa-city.org.
■ Sign the application in blue ink.
■ Submit the original application to the City of Iowa City, Community Development
Department. The application may not be longer than 13 pages (17 pages including
the 20-year proforma), must by typed (10 point font or larger), and must be single
sided.
■ Rental housing projects MUST complete and submit the proforma (excel format)
provided by the City with this application.
■ Send your application by certified or registered mail; overnight delivery service
e.g., Federal Express; or deliver in person and have the application date/time
stamped by a Planning & Community Development representative.
Please remember that only one project proposal may be submitted on each
application form. Please use separate application forms for each project proposal.
Housing
Project Name:
Type of Project (check one): 0 Homeownership 0 Rental 0 Tenant Based Rent Asst. 0 Rehabilitation
1. Lead Applicant Name:
Signature (please use blue ink):
Applicant Address:
Contact Person:
Title:
Phone Number:
Fax Number:
E-mail Address:
Federal Tax Identification Number:
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
0 Private non-profit organization
0 Public Organization
Housing 1 FY09 CDBG/HOME Funding Request
4. Amount of Funds Requested: $
5. Did you attend the Applicant Workshop? O NO
O YES - Please indicate date attended: O 12/19/07 or O 1/10/08
6. Provide a description of the proposed project. Describe in detail the type of project including total number of
units and number of units assisted with public funds.
7. Tell us why this project is needed (include information from CITY STEPS, the Maxfield Housing Market
Analysis, "Assessing Iowa's Housing Needs" (August 2003) by Professor Heather McDonald 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.
Housing 2 FY09 CDBG/HOME Funding Request
8. Please specify the one most applicable priority need and priority need level, as shown in CITY STEPS
2006-2010, Section IV. Strategic Plan.
0
Priority Need
Please provide terms:
Priority Need Level (High, Medium or Low)
Amount
Interest Rate
Loan Amortization
(Years)
Affordability
Period (Years)
For -Profit $
Non -Profit $
Community Land Trust $
NA
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 anticipated or committed.
If anticipated, include the date the funding would be available if awarded.
Funding Source & Type of Funds:
Funding
Amount
Anticipated
Date
Committed?
Iowa City CDBG or HOME Funding (public)
$
OYes ONo
State of Iowa HOME or CDBG (public)
$
OYes ONo
Iowa Finance Authority (IFA)- non LIHTC (public)
$
OYes ONo
City of Iowa City —Tax Increment Financing (public)
$
OYes ONo
City of Iowa City -Tax Abatement or Exemption (public)
$
OYes ONo
IFA — Low Income Housing Tax Credits (public)
$
OYes ONo
Other Public Resources (please list):
$
OYes ONo
$
OYes ONo
$
OYes ONo
Applicant Contribution of Equity (private)
$
OYes ONo
Private Lender Financing (private)
$
OYes ONo
Private Foundation(s) (private)
$
OYes ONo
Volunteer Labor and/or In -kind Donations (private)
$
OYes ONo
Other Private Resources (please list):
$
OYes ONo
$
OYes ONo
$
OYes ONo
Housing 3 FY09 CDBG/HOME Funding Request
10b
Amount of Private Funds
$
(a)
Amount of Public Funds
$
(b)
Total Project Funding
(c)
a + b
Number of bedrooms
(d)
Number of publicly -assisted bedrooms
(e)
Persons assisted (# of bedrooms x 1.5)
$
(f)
Requested public subsidy per bedroom
$
(g)
b - d
Total cost per bedroom
$
(h)
c - d
Total Public Cost Per Person
$
(g)
b - f
Total Cost Per Person
$
(g)
c _ f
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,)
$
11. Please provide the uses of funds for the project. Indicate if third party documentation is available.
Uses of Funds
Amount
Third Party
Documentation
Land Acquisition
$
0 Yes 0 No
Architect/Engineering Fees
$
0 Yes 0 No
Construction
$
O Yes 0 No
Developer Fees
$
0 Yes 0 No
Appraisal
$
0 Yes 0 No
Reserves
$
0 Yes 0 No
Lender Fees
$
0 Yes 0 No
Other (please specify):
0 Yes 0 No
$
0 Yes 0 No
$
0 Yes 0 No
$
O Yes O No
$
O Yes O No
Housing 4 FY09 CDBG/HOME Funding Request
Uses of Funds
Amount
Third Party
Documentation
$
Yes 0 No
TOTAL
$
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.
13. Does the proposed project pay full property taxes? 0 Yes 0 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?
0Yes 0 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? 0 Yes
If yes, at what level?
0 No
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.
Local HOME funds requested: $ x .25 = $ Local Match
Housing 5 FY09 CDBG/HOME 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).
Please Note: If funded, this schedule will be used for any project agreement for the use of
CDBG\HOME funding.
Date: Description of Activity:
July 1, 2008 Beginning of City Fiscal Year and Project 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).
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.
Reminder: Rental housing projects MUST complete and submit the proforma (excel format)
provided by the City with this application
Housing 6 FY09 CDBG/HOME 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.
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— 60% median income
Number between 61 - 80% median income
Number between 80 - 100% median income
Number over 100% median income
Total
Percent LMI
households (a)
households (b)
households (c)
households (d)
households (e)
households (f)
households (g)
(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:
Outcome:
Output Indicator:
0 Suitable living environment 0 Decent affordable housing 0 Creating economic opportunities
0 Availability/accessibility
0 Persons
0 Affordability
0 Households
0 Sustainability
0 Housing units
Housing 7 FY09 CDBG/HOME 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 12/31/07)
Date All Units
Completed
FY05 (July 2004 — June 2005)
$
$
FY06 (July 2005 - June 2006)
$
$
FY07 (July 2006 - June 2007)
$
$
FY08 (July 2007 - June 2008)*
$
$
*Six months remaining in FY08 at time of this application.
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.
Housing 8 FY09 CDBG/HOME Funding Request
26. Please describe your organizations structure, officers and staff, as it relates to the overhead cost for this project.
Housing 9 FY09 CDBG/HOME Funding Request
Subprime Mortgages - Race - Blacks - Hispanic -Americans - Foreclosures - Housing - Banks - New ... Page 1 of 2
Zb~C U r lril�`� P149NTER FRIENDLY FORMAT _....__.�.__._
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nytilPY'IP'v t.'.C)rri 11
November 4, 2007
THE NATION
College Towns Escape the Pain
By FORD FESSENDEN
As the inner cities, along with much of Florida and the interior of California, face the prospect of a
foreclosure meltdown, American college towns appear to be islands of stability.
The list of metropolitan areas with the smallest percentage of high -cost home loans is dominated by
small cities with big colleges, including Ithaca, N.Y.; Iowa City; Madison, Wis.; Morgantown, W.V.; and
State College, Pa.
Is it because their educated residents were so much smarter than the rest of us, and foresaw the folly? Is
it because baby boomers, coughing up tuition for their children, are enriching those economies — with
dollars often borrowed on refinanced houses back home? Or is it because aging boomers themselves are
relocating with big down payments in hand and retirement in mind?
It could be all of that and more, say economists and academics. But ultimately, what the cities on the list
have in larger measure than much of the rest of the country is stability, in both their housing and job
markets.
"Those housing markets are not superheated," said Bruce Katz, director of metropolitan policy at the
Brookings Institution. "And salaries are pretty good for faculty and research assistants. So wages and
housing prices are more in sync than in the rest of the country."
The subprime-lending crisis is in one sense simply the barometer of how far home prices have
outstripped incomes. As homes became harder to afford, financing became more creative, and expensive.
Irrational exuberance ensued, along with predation.
"Where subprimes are turning up is in hot markets, but also in places like Cleveland and Detroit," Mr.
Katz said. "College towns are more stable places in some respects. If you make between $75,000 and
$125,000 in these places, you can get into a pretty decent home and still have very reasonable ratios."
Contributing to reasonable home prices is the fact that many places on the list are economic oases,
surrounded by areas where jobs are dwindling, which helps depress housing demand. Yet the college
towns themselves are thriving: The peak years for American births since the baby boom were 1989 to
1993, and college enrollments are swelling as never before. Many communities on the list also have big
medical centers or flourishing research operations.
http://www.nytimes.com/2007/ l 1 /O4/weekinreview/04fess.html?ei=5070&en=d32d5fOc868ce5cc&ex... 11 /9/2007
Subprime Mortgages - Race - Blacks - Hispanic -Americans - Foreclosures - Housing - Banks - New ... Page 2 of 2
"There's so much construction at Cornell," said Richard L. Patterson, the general manager of Audrey
Edelman RealtyUSA in Ithaca.
Lending tends to be dominated by the local bank rather than mortgage companies. In Iowa City, Hills
Bank and Trust made 30 percent of the mortgages on one- to four -family homes in 2oo6. In Ithaca,
Tompkins Trust Company and the Cornell University credit union lead the list of lenders.
"We're like what middle-class America used to be," said Barbara Alexander, a real estate agent in
Morgantown, home of West Virginia University. "We're insulated from what happens in other places, and
the lenders and buyers are more conservative. I can't remember the last time we had a recession in
Morgantown."
Some experts say the explanation is largely cultural.
"Professors and other educated residents in these heartland college towns are conservative when it comes
to money and investments," said William Frey, a demographer at Brookings. "They spend their time
worrying about ideas, publishing and `the greater good.' "
Copyright 2007 The New York Times Company
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