HomeMy WebLinkAbout09-15-2011 Housing & Community Development CommissionAGENDA
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
LOBBY CONFERENCE ROOM, CITY HALL
THURSDAY, SEPTEMBER 15, 2011
6:30 P.M.
1. Call Meeting to Order
2. Approval of the June 16, 2011 Minutes
3. Public Comment of Items Not on the Agenda
4. Staff/Commission Comment
5. Nomination and Election of Officers
6. New Business
• Public Hearing & Approval of the FY11 Consolidated Annual
Performance & Evaluation Report (CAPER)
• Selection of Projects to Monitor in FY12
• Timeline for the Annual Review of CITY STEPS
7. Old Business
Allocation Process Committee — Update
8. Adjournment
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q AM
CITY OF IOWA CITY
MEMORANDUM
Date: September 7, 2011
To: Housing and Community Development Commission
From: Community Development Staff
Re: September Meeting
This month we welcome Michelle Bacon Curry to the commission. The following is a short
description of the September agenda items. If you have any questions about the agenda or
if you are unable to attend the meeting, please contact Tracy Hightshoe at 356-5244 or by
email at tracy-hightshoe@iowa-city.org.
Nomination & Election of Officers
Every September, the commission nominates and elects a Chair and Vice Chair. The
commission will nominate and vote for these two positions at this meeting.
New Business
• Public Hearing & Approval of the FY11 Consolidated Annual Performance
Evaluation Report (CAPER)
The CAPER is a HUD required document that the City must submit to HUD within 90
days of the end of the plan year. The report describes the federally funded activities
undertaken by the City and its partners, and the accomplishments for federal fiscal year
2010 (City FY11). A draft of the CAPER is included in your packet for your review and
comment. The HUD Integration Disbursement and Information System (IDIS) reports are
not included as HUD identified a problem with the reports and hope to correct it on
September 9. Staff will generate the reports after September 9 and forward copies to
you at the meeting. At this meeting, we will be asking HCDC to approve the document
for submission to HUD.
• Selection of Projects to Monitor. This year there are 37 projects to monitor.
Commission members will need to choose 4-5 projects. A list of projects, with the
agency's contact information, is included in the packet. Please review and indicate at
the meeting which projects you would like to monitor during FY12.
• Timeline for the Annual Review of the Consolidated Plan (CITY STEPS)
We are in the process of reviewing our CITY STEPS Plan. Details will be forthcoming
regarding the number and locations of public meetings to solicit input regarding the
Consolidated Plan. It is anticipated that all the community meetings will take place
before the October HCDC meeting. HCDC will also hold a public hearing at their
October 20 meeting. If HCDC decides to recommend any formal plan amendment(s),
the proposed amendment(s) will be forwarded to the City Council for their consideration.
We will keep you posted on the dates and times of the meetings.
Old Business
0 Allocation Process Committee Report
MINUTES PRELIMINARY
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
JUNE 16, 2011 — 6:30 PM
EMMA HARVAT HALL, CITY HALL
MEMBERS PRESENT: Andrew Chappell, Cheryl Clamon, Scott Dragoo, Charlie Drum,
Holly Jane Hart, Michael McKay, Rebecca McMurray, Rachel
Zimmermann Smith
MEMBERS ABSENT: Jarrod Gatlin
STAFF PRESENT: Steve Long, Tracy Hightshoe
OTHERS PRESENT: Charlie Eastham
RECOMMENDATIONS TO THE CITY COUNCIL:
The Commission voted 8-0 (Gatlin absent) to recommend approval of a $900,000 CDBG
allocation to the Wetherby Condos South LLC project per staff recommendations.
CALL TO ORDER:
The meeting was called to order by Chairperson Michael McKay at 6:30 p.m.
APPROVAL OF THE APRIL 21, 2011 MINUTES:
Zimmermann Smith moved to approve the minutes.
Clamon seconded.
A vote was taken and the motion carried 8-0 (Gatlin excused).
PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA:
None.
STAFF/COMMISSION COMMENT:
None.
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
JUNE 16, 2011
PAGE 2 of 5
DISCUSSION REGARDING FY11 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG
SPECIAL ALLOCATION REQUESTS:
• Discuss CDBG Special Allocation Applications
• Develop CDBG Special Allocation Budget Recommendation to Council
McKay asked staff to summarize for the public a memo distributed to the Commission.
Hightshoe said that Wetherby Condos South LLC applied for acquisition and rehabilitation
funding during the October special allocations process. After the allocation was awarded, the
City Council put all housing projects on hold pending a Council review of policies on where low-
income rental housing could be located. Because there was no way to know when that review
might be complete, Southgate had to move forward with the acquisition of condominium units in
order to secure them. Hightshoe said that the HUD environmental review officer was not
comfortable with proceeding with this application as the original application was for both
acquisition and rehabilitation, even if the City limited the rehab. to the units the applicant owned
at the time of application. The Environmental Review officer advised the City to open up the
allocation process again. A substantially different application from this applicant would be
eligible. Hightshoe said that per HUD's advice, the funding was opened back up to new
applications. Nine applications were received for the funding. Wetherby Condos South LLC
applied for the rehabilitation of the three building, 108 unit complex..
McKay asked if there was anyone who did not support the application for $900,000 in
rehabilitation funding for the Wetherby Condos South LLC project. There were no objections.
Chappell moved to approve the staff recommendation to allocate $900,000 to the
Wetherby Condos South LLC application.
Zimmermann Smith seconded.
A vote was taken and the motion carried 8-0 (Gatlin excused).
SUBCOMIMITTEE REPORT: REVIEW OF THE FY12 CDBG/HOME AND AID TO AGENCY
ALLOCATION PROCESS:
Chappell said that the subcommittee had decided to begin the review process with a focus on
the ranking forms. He said the goal is to have the forms written in such a way that everyone can
generally agree about how much weight to give them. From there, he said, the subcommittee
will work backwards, looking at the application itself and resolving any inconsistencies.
Charlie Eastham said that he had spoken with the Commission last fall about two issues related
to affordable rental housing. Eastham said that he had recommended that the Commission
grant additional points to projects that utilize a variety of funding sources. He also
recommended that the objectives of the City should include a priority for projects that have a
cost burden of less than 30% toward housing for their clients.
Eastham said that he also would like the Commission to look at requirements for interest rates
on public money. He said that it is very difficult to reduce rental amounts when having to pay
debt service costs. Eastham said it has never made sense to him to have interest charged on
public money, and in many cases it does not even make sense to require repayment.
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
JUNE 16, 2011
PAGE 3 of 5
He said his three areas of concern are: 1) maximizing the sources of funding, decreasing the
rental housing price by reducing debt service, and giving priority to operators whose rents are
less than 30% of the renter's income (without using the Housing Choice Voucher program).
Chappell asked for clarification on what Eastham was asking the Commission to consider in
terms of weighting applications. Eastham said that The Housing Fellowship owns and manages
130 rental homes, about one-third of which have residents who are not using the Housing
Choice Voucher (HCV) program. Approximately half of the residents that are not using HCV are
paying rents that represent less than 30% of their income. Eastham said that he believed some
weight should be given to that.
Hightshoe said that HOME assisted units can't be denied to Section 8 voucher holders if that is
the only reason for denial. Eastham said he did not at all intend to be critical of HCV, as it is the
mainstay in the community and the country for achieving affordable housing. Rather, his point is
that the community should seek to expand its affordable housing for those not utilizing the
program.
McKay said that Eastham's thoughts reflected some of the sentiments in the subcommittee's
meeting, which was that there could be a kind of bonus points system to reflect those kinds of
priorities and initiatives. Hightshoe said that over the last ten years there have been significant
changes in the financing terms that staff recommends. She said that loan terms are set with the
debt loads and rental amounts charged for a given project in mind.
Zimmermann Smith said that her concern was that the weighting should not favor one particular
type of housing entity over others. She said that the idea should be to encourage creative
thinking and partnerships with businesses. Hightshoe said that staff basically looks at the cash
flow of the project to ensure viability. Long said that staff also is looking at portfolios of entities
and adjusting loan terms as needed.
SUBCOMMITTEE REPORT: COMMUNITY DEVELOPMENT CELEBRATION:
Hightshoe said that the Community Celebration will likely be held out at the Big Brothers Big
Sisters organization. She said the celebration is intended to show the impact of CDBG/HOME
funds on the community. She said that Congressman Loebsack hopes to attend the event, and
the celebration may be held between August 81h and Labor Day weekend. She said there will be
three awards given out, and they hope to get a bank to sponsor food and to order it from Shelter
House's catering program. Long noted that there is no bus service to the Big Brothers Big
Sisters location but staff was hoping to be able to arrange some sort of shuttle for those that
need it. Chappell noted that a bank could perhaps sponsor a couple of SEATS buses for the
event.
MONITORING REPORTS:
IC Housing Rehabilitation (staff): Long briefly summarized highlights from a memo on
the City's housing rehabilitation activities.
IC Economic Development (staff): Hightshoe said that this past year the City funded
The Paper Nest, a custom stationary and book -binding business, and Baroncini, an
Italian restaurant on Linn Street. She said there will be just over $112,000 to work with
over the next year. Hightshoe said that businesses are required to pay the funds back,
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
JUNE 16, 2011
PAGE 4 of 5
and that the loans are generally at least partially secured by some kind of personal or
commercial lien such as mortgages on the owners home or rental property, lien on
owner's vehicle or a UCC filing on all business assets.
• Arc of Southeast Iowa — Equipment (McKay): Staff noted that the Arc had been
required to wait until July 1 s` to begin this project.
ADJOURNMENT:
Clamon moved to adjourn.
Drum seconded.
The motion carried unanimously.
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HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
GENERAL RESPONSIBILITIES
The Housing and Community Development Commission (HCDC) consists of nine Iowa
City residents appointed by the City Council. They represent, as nearly as possible, a
cross-section of the Iowa City population in background, ideas, geographic location, age
and socioeconomic status. Committee members serve for three years.
The purpose of HCDC is to advise the Council on community needs in general and on the
use of Community Development Block Grant (CDBG) and HOME Investment
Partnership program (HOME) funds from a citizen viewpoint. To accomplish this HCDC
provides systematic communication between citizens and policyrnakers with regard to
community development projects. The Commission's work has been primarily directed at
developing, coordinating, and reviewing the City's activities carried out in conjunction
with the City's Consolidated Plan (CITY STEPS). In addition, the Commission reviews
the Community Development Division and Iowa City Housing Authority policies and
periodically makes recommendations to the Council regarding these policies.
ACCOMPLISHMENTS IN FISCAL YEAR 2011
In FYI I the City of Iowa City and its subrecipients expended $865,109 in CDBG funds
and $1,025,067 in HOME funds to assist low -moderate income persons. To ensure that
community needs are met, HCDC members monitored projects throughout the year.
FY11 project accomplishments are as follows:
♦ Leveraged $10,285,115 in private and public funds
♦ Economic Development Fund — Reviewed 3 applications; funded two businesses
creating 7.5 FTEs. Staff continued to market the fund to the community and local
lenders
♦ Rehabilitated 30 owner occupied homes
♦ Constructed 22 homes for affordable rental housing
♦ Constructed and sold one home to an income eligible homebuyer
♦ Acquired four homes for affordable rental housing
♦ Provided tenant based assistance to 18 families
♦ Assisted 2,020 persons who are homeless with support services and shelter
upgrades
♦ Provided operational funding to non -profits that assisted 2,882 persons
♦ Completed improvements to multiple non -profits that assisted 3,907 persons
The commission also reviewed Aid to Agency applications and allocated funds to 20
agencies for a total of $422,950.
PLANS FOR FISCAL YEAR 2012
A total of $4,357,677 was allocated to 34 projects, plus program administration for
FY12. This figure included program income received from Aniston Village, LP, a
Low Income Housing Tax Credit Project, in Iowa City. Aniston Village LP was
awarded $2.9 million in Iowa CDBG Disaster Recovery Housing Funds through the
Iowa Department of Economic Development to finance the construction of 22 homes
for affordable rental housing. When Aniston Village LP secured permanent
financing, $2.6 million was repaid to the City and receipted as program income to be
used in the City's regular CDBG entitlement program. This amount represents over
four times the City's annual CDBG entitlement amount.
The following is a list of the upcoming projects:
♦ Rental Rehabilitation — Wetherby Condos South LLC (Broadway Condominiums)
$900,000
♦ Rental Housing — Isis Investments LLC, $230,000
♦ Rental Rehabilitation — Shelter House, $75,000
♦ Park Land Acquisition — City of Iowa City, $280,000
♦ Facility Rehabilitation — Crisis Center, $50,000
♦ Exterior Rehabilitation — Iowa City Free Medical Clinic, $175,000
♦ Property Acquisition (employment training) — Iowa Valley Habitat for Humanity,
$295,000
♦ Property Acquisition — Neighborhood Centers of Johnson County, $395,000
♦ Property Acquisition — Visiting Nurse Association of Johnson County, $200,000
♦ Owner Occupied Rehabilitation — Iowa Valley Habitat for Humanity, $40,000
♦ Land Acquisition for Homeownership — Iowa Valley Habitat for Humanity,
$180,000
♦ CHDO Operating Expenses — The Housing Fellowship, $29,800
♦ Land Acquisition for Rental Housing — Mayor's Youth Empowerment Program,
$99,800
♦ Transitional Housing for Youth — United Action for Youth, $350,000
♦ Rental Rehabilitation — Successful Living, $52,000
♦ Rental Rehabilitation — Systems Unlimited, $48,000
♦ Economic Development Fund, City of Iowa City, $35,428
♦ Fiber Optic Cable — ICCSD, Grant Wood Elementary, $33,400
♦ Exterior Rehabilitation — Neighborhood Centers of Johnson County, $42,250
♦ Facility Rehabilitation — Domestic Violence Intervention Program, $6,500
♦ Facility Rehabilitation — Mayor's Youth Empowerment Program, $27,365
♦ Parking Lot Improvements — Crisis Center, $25,000
♦ Facility Rehabilitation — Arc of Southeast Iowa, $67,400
♦ Facility Rehabilitation — MECCA SERVICES, $16,293
♦ Accessibility Improvements — Old Brick, $15,500
♦ Operational Funds — Arc of Southeast Iowa, Neighborhood Centers, Crisis Center,
Big Brothers Big Sisters, Shelter House, Table to Table, Successful Living,
Emma Goldman Clinic, Iowa City Free Medical Clinic, $207,292
The commission will continue to assess Iowa City's community development needs for
housing, jobs, and services for low and moderate income residents, and to promote public
and private efforts to meet such needs.
COMMISSION MEMBERS
Michael McKay, Chair
Andrew Chappell, Vice Chair
Cheryl Clamon
Charles Drum
Scott Dragoo
Jarrod Gatlin
Holly Jane Hart
Rebecca McMurray
Rachel Zimmermann Smith