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HomeMy WebLinkAbout06-20-2013 Housing and Community Development CommissionAGENDA HOUSING AND COMMUNITY DEVELOPMENT COMMISSION DALE HELLING CONFERENCE ROOM, CITY HALL 410 E. WASHINGTON STREET, IOWA CITY THURSDAY, JUNE 20, 2013 6:30 P.M. 1. Call Meeting to Order 2. Approval of the May 7, 2013 Minutes 3. Public Comment of Items Not on the Agenda 4. Staff/Commission Comment 5. Discuss Notice of Funding Availability and Funding Parameters due to HOME Program Income and Returned CDBG Funds 6. Review Allocation Process —Aid to Agencies • Subcommittee Update 7. Discussion of the Community Development Celebration 8. Monitoring Reports • FY13 Housing Rehab — Rental Rehab. (Staff) • FY13 Economic Development Fund (Staff) 9. Adjournment MINUTES PRELIMINARY HOUSING AND COMMUNITY DEVELOPMENT COMMISSION MAY 7, 2013 — 6:30 PM HELLING CONFERENCE ROOM, CITY HALL MEMBERS PRESENT: Andrew Chappell, Cheryll Clamon, Scott Dragoo, Charles Drum, Jim Jacobson, Christine Ralston, Rachel Zimmermann Smith MEMBERS ABSENT: Michelle Zimmerman Smith, Holly Jane Hart STAFF PRESENT: Tracy Hightshoe OTHERS PRESENT: None RECOMMENDATIONS TO COUNCIL: Drum moved to recommend that City Council approve the FY14 Annual Action Plan on May 14, 2013 with the changes staff outlined. Approved 7-0. CALL TO ORDER: The meeting was called to order by Chair Andrew Chappell at 6:30 p.m. APPROVAL OF MARCH 7, 2013 MINUTES: Ralston moved to approve. Zimmerman Smith seconded. A vote was taken and the motion carried 7-0. PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA: STAFF/COMMISSION COMMENT: Hightshoe reminded commission members that the City was on a Workout Plan as the City failed the HUD CDBG timeliness test last May. The City received over $2.7 million in program income due to the State allowing the City to retain a disaster recovery construction loan payoff. HUD required the City to spend the funds to a certain level before the next May test. The City must have no more than 1.5 times their entitlement amount in their line of credit by May 2, 2013. The City came in at 1.3 so HUD released the City from the Workout Plan reporting requirements and the City is no longer in danger of reduced funding due to its expenditure rate. HOUSING AND COMMUNITY DEVELOPMENT COMMISSION MAY 7, 2013 PAGE 2 of 5 Hightshoe reported that the City received sixteen applicants for the Building Change Program. Eight projects were selected and four will be financed with CDBG funds. She summarized the projects and the timeline. She said that the City is contracting with the University of Iowa Public Policy Center to complete the Analysis of Impediments to Fair Housing Choice. The findings and recommendations get incorporated into the upcoming Consolidated Plan. A draft should be ready in July or August. Jacobson asked about the status of the Three Diamond Low Income Housing Tax Credit application. Hightshoe replied they weren't awarded tax credits. The applicant is still interested and will reapply next year to the Iowa Finance Authority. • Review Financial Terms for Housing Projects Hightshoe reported that Charm Homes is the only housing project that is subject to review. The HOME program requires an underwriting analysis prior to funding. Staff is unable to complete a full analysis until the prices of the homes are determined and what private financing is involved. Once the properties are identified, staff will complete the analysis to determine if the financing terms will match those that were requested. If not, staff will make the appropriate adjustments. REVIEW OF THE FY14 ANNUAL ACTION PLAN (WWW.ICGOV.ORG/ACTIONPLAN Hightshoe provided an overview of the Action Plan. There was a public comment received by Free Medical Clinic. They requested a change in their award to allow for increased lighting due to an incident involving one of their volunteers and a patient. The commission allocated them $20,000. They request that $2,500 to $5,000 be used for them to put up more exterior lighting. The original project was for lower level improvements to their facility. Consensus was not to grant or recommend the request. Council may alter if that is their wish. Hightshoe stated a couple of dates need to be amended in the plan and public comments need to be added. Drum moved to recommend that City Council approve the Annual Action Plan with the changes staff outlined. Jacobson seconded A vote was taken and the motion carried 7-0. Hightshoe reported that all of CDBG recipients complied with the deadline except for Neighborhood Centers of Johnson County (NCJC). NCJC received money for the Broadway HOUSING AND COMMUNITY DEVELOPMENT COMMISSION MAY 7, 2013 PAGE 3 of 5 Center but technically did not spend 50% of their grant by March 15. She said they are working with an architect and will get the project completed by this summer, but perhaps not by June 30`h. The Commission discussed what recommendation to make. The consensus was that the Commission set September 30 of this year to complete the project or the remaining funds will be reallocated. Chappell requested that notice is provided to NCJC with this deadline and to indicate that projects are expected to be completed by June 30 and they must start their projects earlier. DISCUSSION OF THE COMMUNITY DEVELOPMENT CELEBRATION Hightshoe explained that the celebration is to highlight the impact of federal funds in Iowa City. Information is provided about how Iowa City allocates the funds and the projects planned. The Commission discussed locations to hold the celebration. Drum and Zimmerman Smith volunteered as the celebration planning committee. REVIEW ALLOCATION PROCESS — CDBG/HOME AND AID TO AGENCIES • Appoint Subcommittee Drum thought this year went well. Zimmerman Smith said she felt that the regular allocation phase was smooth but thought that the Commission needs to figure out what the Council wants them to use as guidelines for Aid to Agencies. Hightshoe said she has heard from a council member about Aid to Agencies. The member did not like that new agencies could apply. This means fewer funds, less impact for the existing agencies. Chappell questioned how they would draw the line. No new applicants from last year, two years ago, etc. Zimmerman Smith said if the Council wants them to distribute funds the same way that Linda Severson did then they don't need the commission. She said she thinks that funding organizations doing something new or different would be a good thing to do. She said she thinks some of the agencies funded every year are duplicating efforts, and if they knew that a certain amount of money was going to be allocated to new things, that might cause them to collaborate more. Jacobson thinks a City Council member would want a seat on this subcommittee. Chappell said he wanted to ask one or two Council members to meet with the commission subcommittee and offer some input. There was a consensus to appoint a subcommittee now. The Commission agreed that Zimmerman Smith would chair the subcommittee and Chappell and Ralston would serve on the subcommittee. SUMMER MEETING SCHEDULE The Commission agreed to schedule their meetings based on agenda items. HOUSING AND COMMUNITY DEVELOPMENT COMMISSION MAY 7, 2013 PAGE 4 of 5 MONITORING REPORTS • FY13 HACAP — Rental Rehab. (Bacon Curry) Hightshoe said they met with an architect this week. She said they are focusing on security. • FY13 Neighborhood Centers — Facility Rehab. (Bacon Curry) Hightshoe said they finished the roof at Pheasant Ridge. • FY13 Neighborhood Centers — Operations (Zimmerman Smith) There was no report. • FY11 Iowa City — Fairmeadows Park (Jacobson) The splash pad is under construction and will be completed this June. • FY13 Crisis Center — Rehab. (Staff) Hightshoe reported that the bids were out and products were ordered. They are doing Phase One because that's what they can afford now, and when they get additional funding they will slowly bid out the interior. They plan to be done by December There have been some neighbor complaints about people loitering. • FY13 Charm Homes LLC — Rental Housing (Staff) Hightshoe reported that they acquired a property and have identified a second one. Tenants already in first property. • FY11 & 10 The Housing Fellowship — Rental Housing (Staff) Hightshoe reported that THE bought four homes in the University neighborhood near campus, remodeled them, and are leasing them. She said that their FYI project was the low income tax housing tax credit project for farnilies — fourteen units in North Liberty and eight in Iowa City. She said the units in Iowa City are done, but issues with the developer are indefinitely keeping the two end units from being rented. Issue to be resolved shortly. • FY11 ICHA — Tenant Based Rent Assistance (Jacobson) He said there is one active participant in a pending status. There are no active referrals from DVIP. There is $11,000 of the $40,000 allocation remaining. • FY11 Visiting Nurse Association — Acquisition (Jacobson) He said the land had been purchased. Hightshoe added that they had to spend an additional $50, 000 because of a sewer line problem. Jacobson said they expect to be moving in in August. He said they brought in $100, 000 in fundraising. ADJOURNMENT: Clamon moved to adjourn. Dragoo seconded. A vote was taken and the motion carried 7-0. 12/04 POLICY FOR ALLOCATION OF UNCOMMITTED CDBG AND HOME FUNDS (Funds that become available to the program after initial allocation either through windfall income, project cancellation or additional funds provided by HUD.) The Housing and Community Development Commission (HCDC) will determine if: 1. Existing projects that did not receive full funding will be considered. 2. Projects that had submitted applications but did not receive any CDBG or HOME funding will be considered. 3. New proposals will be considered. 4. Funds will go to the Contingency Fund If existing and/or unfunded projects are the only projects that will be considered, the applicants will be notified of the availability of funds and asked to provide a written request for funds and how they will be utilized to fund their original request. If new projects are being considered, HCDC must publish notice of funding availability and proceed with a formal application process. If funds are allocated to the Contingency Fund, no formal process is necessary other than the City Council approval. In all cases the public must be given the opportunity for comment on the proposed use of funds, either at a HCDC meeting or a Council meeting. (See Contingency Fund Use Policy for use of these funds) CONTINGENCY FUND USE POLICY The Contingency Fund can be utilized for the following purposes: a. Cost overruns of existing CDBG and HOME projects. Cost overruns of greater than $50,000 or 25% of initial project budget must be approved for eligibility by HCDC.