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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 "m+Cm' 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. 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CD 0 d Q c c vN cn miw ° u- O cn C N Ll LO Lo 2E @ Mn = 0 O• d W 3° O N m E °) i Y M @ w 0 U Q U Q O a i m rn 3 ° C _ U m _ `o m ° a) m m O Q o a� H 2 2 o p } Q L O 7 Cco J .6 m r-C% a� > R U 7 O Q 2 a� L ~ N �O _R -CU d U Y O Z C� CCf d' �U L C y U C6 2 coN 'O N t O a m r- O N C a CA C C 'C w ° O �- i' LL N Y > m U 2 O ` Q W y > U 7 O c ` Q 06 od 0 LL @ 2 N N - N - N N _ N - N - - - r' - O 2 W O_ DD e- LL. - Li LL LL LL LL LL LL LL LL LL d LL LL W tL LL LL 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