HomeMy WebLinkAbout10-17-2013 Housing and Community Development Commission�.l
In
DALE HELLING CONFERENCEROOM,
1 E. WASHINGTON•
6:30
1. Call Meeting to Order
2. Approval of the September 19, 2013 Minutes
3. Public Comment of Items Not on the Agenda
4. Staff/Commission Comment
5. Public Meeting - Annual Review of the 2011-2015 Consolidated Plan
(aka CITY STEPS)
• Discussion of the 2011-2015 Consolidated Plan
6. Update on FY14 Projects — CDSG projects that have not entered a formal
agreement with the City of Iowa City
7. Monitoring Reports
• FY14 The Housing Fellowship — CHDO Operating (Persson)
• FY14 DVIP —Aid to Agencies (Persson)
• FY11 Visiting Nurse Association — Property Acq. (Clamon)
8. Adjournment
CITY OF IOWA CITY
Zft MEMORANDUM
Date: October 11, 2013
To: Housing & Community Development Commission (HCDC)
From: Tracy Hightshoe, Community Development Planner
Re: October Meeting Packet
Below is a brief description of the October agenda items
Annual Review of the 2011-2015 Consolidated Plan (a.k.a. CITY STEPS)
CITY STEPS is a five year plan that guides allocation decisions for the funds the City
receives through the Community Development Block Grant and HOME Investment
Partnerships programs. The upcoming allocation cycle for FY15 funds is the final year
of the 2011-2015 plan. A meeting was held on October 9, 2013 with the Local Homeless
Coordinating Board to gather input on community needs. A summary of the comments
received are attached as well as the current priorities identified in CITY STEPS. At the
October meeting you will be asked to review the comments, review the current CITY
STEPS priorities and determine if there is a need to change any priorities.
Update on FY14 Projects — CDBG projects that have not entered a formal agreement with
the City of Iowa City
Based on City Council policy, CDBG recipients have until September 30 to enter CDBG
agreements with the City for that year's project. All FY14 CDBG recipients have met this
requirement.
Monitoring Reports
Enclosed in this packet is the FY14 Monitoring Schedule. The last column of the
schedule provides the phone number and email address for the agency's contact
person. If you are unable to contact the person, please contact me for a secondary
contact or to confirm the contact information. The reports due at the October meeting
are found below. Common questions to agencies include: what was the money
allocated for, what has been done to date, when will the project be done and what are
the outcomes associated with the project. You then report this information back to the
commission. Each report is typically 2-3 minutes.
• The Housing Fellowship — CHDO Operating (Persson)
• FY14 DVIP —Aid to Agencies (Persson)
• FY11 Visiting Nurse Association — Property Acquisition (Clamon)
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.
MINUTES PRELIMINARY
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
SEPTEMBER 19, 2013 — 6:30 PIVI
DALE FELLING CONFERENCE ROOM, CITY FALL
MEMBERS PRESENT: Michelle Bacon Curry, Andrew Chappell, David Hacker, Jim
Jacobson, Dottie Person, Christine Ralston
MEMBERS ABSENT: Cheryli Clamor, Peter Matthes, Rachel Zimmerman Smith
STAFF PRESENT: Tracy Hightshoe
OTHERS PRESENT: Mark Pearson, Raven Hollenhorst, Ryan Duchesne
RECOMMENDATIONS TO COUNCIL:
No recommendations.
CALL TO ORDER:
The meeting was called to order by Chair Andrew Chappell.
New members David Hacker and Dottie Persson introduced themselves.
APPROVAL OF AUGUST 15, 2013 MINUTES:
Jacobson moved to approve.
Bacon Curry seconded.
A vote was taken and the motion carried 5-0.
PUBLIC COMUIENT FOR ITEM"iS NOT ON THE AGENDA:
None received.
STAFFICOM MISSION COMMENT:
Hightshoe said the City Council Economic Development Committee approved a CDBG loan to
Max Effect, a cycling and fitness studio on Kirkwood. It Just opened at the beginning of the
month.
City Council will review the FY14 Annual Action Plan Amendment at their October 15
meeting. It was originally scheduied for Oct. 1, but was moved to Oct. 15.
NOMINATION AND ELECTION OF OFFICERS
Ralston arrived.
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
SEPTEMBER 19, 2013
PAGE 2 of 5
Chappell explained that the by-laws recuire that the commission elect a Chair and Vice Chair
each September. Bacon Curry moved to nominate Chappell for the Chair.
Jacobson seconded the motion.
Chappell asked if there were any other nominations.
A vote was taken and the motion carried 6-0.
Chappell called for nominations for Vice Chair. Chappell moved to nominate Bacon Curry for
Vice Chair.
Persson seconded the motion.
Chappell asked if there were any other nominations.
A vote was taken and the motion carried 6-0.
Public Hearing & Approval of the FYI Consolidated Annual Performance &
Evaluation Report (CAPER)
Chappell said this report summarizes all the activities completed/worked on during FY13 with
CDBG and HOME funds. Hightshoe added that the report is a HUD required document and is
completed in the format required by HUD. The report must be submitted to HUD ninety days
after the end of the City's program year. She stated a good summary of the total report can be
found in two tables. One summarizes CDBG accomplishments and projects and the other
summarize HOME activities. For the tables and summary data, beneficiaries and project
leverage are not reported until the project is closed. Projects can carry into the next fiscal year,
so the City only reports this information at project close out to avoid duplicating beneficiaries
and project leverage.
Hightshoe stated that the City received $2.7 million in CDBG program income from a Disaster
Recovery Loan in 2011. These funds were allocated to several large CDBG eligible projects.
Due to these funds, the City has met most of its 5-year goals in terms of housing and public
facility projects. Hightshoe reported that $900,000 went to the rehabilitation of the Wetherby
Condos on Broadway (56 units). Prior tenants were offered or provided moving and relocation
assistance. Southgate provides property management to all but a handful of the units. The units
were gutted and rehabilitated. More than half the units are now rented.
Chappell asked how many tenants were eligible for relocation. Hightshoe stated 23
households. Many tenants before the renovation leased on a month to month basis. Southgate
had to provide relocation assistance from the date of the "initiations of negotiations." Based on
the date required to provide relocation, there were 23 tenants remaining. When a unit vacated,
Southgate was not releasing the unit. Hightshoe reported that almost all the eligible tenants
accepted moving assistance. Tenants have eighteen months from the date they were notified.to
file a claim for relocation expenses, which is basically the difference between what their rent
was and what they are paying now.
The Fairmeadows splash pad and the Habitat for Humanity employment center were completed
this fiscal year as well.
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
SEPTEMBER 19, 2013
PAGE 3 of 5
Jacobsen asked the difference between project leverage and HOME match. Hightshoe stated
leverage is the amount of other funds the applicant secured to meet total project costs. It
includes private, state and federal funds. HOME match only considers specific items that can
be counted as match under the HOME program such as the value of donated labor, tax
forgiveness by the City, donated real property, etc. The City must provide a HOME match equal
to 25% of their HOME entitlement (subject to some exclusions).
.... • •..... ♦ ♦ ♦ ..♦ A • • X• s •. , • ..
Evaluation Report (CAPER) and forward to the U.S. Department of Housing and Urban
Development
Jacobson seconded.
The motion passed by a vote of 6-0.
Selection of Projects to Monitor in FY14
Chappell explained how the monitoring list worked. Assignments are as follows:
HCOC Monitorina List for FY14
FY14 CDBG(HOME Projects
AMOUNT
MONITOR
MONTH 'Contactinfo.
"
Maryann Dennis, 358.9212,
The Housing Fellowship - CHDO Operating _
$
17,630,00
, Persson_ !
October mtlennistrmusingrellowship.cam
Kral* Fonmann baser, 351. 1042 x 112,
DVIP - Aid to Agencies
$
40,150.00
Persson
OCtober knstiedwage,anhslope.net
'. Ron Barg, 351 4357,
MECCA -Ad to Agencies
$..
12,66000
Chappel
November reatillPm caia tom
_._.
_.
Brian taring. 35&0436,
Neighborhood Centers of JC -Ad to Agencies
$
47,000 00
Chappel
November bnatflonrg�nclo wg
'.Ron Berg, 351.4357, '.
'..MECCA -Facility Rehab.
$
23,850.00
'.. Ralston `.
December mergtlmaccaia.com
IBarbara Vinograde, 337.4459
lC Free Medical Clinic - Facility Rehab.
$
25,000.00
Ralston '
January tmnogratleLdfreemetl,caiciink.org
_.. _._ _
_ ,.....
_.... ;.
_ Stan Lonn9358.0438,
Neighborhood Centers of JC - Playground
$
55,000m
Hacker
April Bnan lonrggixlc org
_
8=a Teague, 3378922
IChan Homes LLC- Rental Housing _.
$
6165000
Zimmermann -Smith
May brute teaguetcarirghanasandmare.core
Kan Wilken, 341.0060 x7017
Mayor's Youth - Facility Rehab
$
7000000
Zimmermann -Smith.
May kealken(Bmysecon,
IC Housing Rehab.
$
502,007.00
STAFF
June FWuaing Rehab. Stare
'.IC Economic Development
; $
89,418.00
STAFF
June Conern Dew Starr
Prior Year Carryovers
:Suellen Nowtny, 337.9686 '.
:FY111Asi6ng Nurse Association- Property Acquisition
';$
200,000.00
Clamon
October rmwtnys@x,aic.org
_ _. _.. _.._.
_.. Bnan Lonn8, 3580438.
FY13 Neighborhood Centers - Facility Rehab.
-$
111,500.00.
Bacon Curry
November : briarHoring@ngaorg
_. _...
_
_...
_... Roger Lusas 3410060 0001
FY12 Mayors Youth - Rental Housing
i $
99,80alto
Bacon Curry :
November ;nlosala�myep.us
... __. _. _.
_.
_.._. _.....
_. Mar, Patton. 3378949
FY12 N Habitat for Humanity- Land Acquisition
$
18000000
Clanton
December mar,@�"mileyhabaet.org
Heather Penney, 319 393 7811. .
FY13 HACAP- Rental Rehab.
$
30500200
Jacobson
January hhameyehacaporg
_.
_
Ma4< Patton, 337 8949.....
FY13. Hearst - Act. &Rehab.
$
60,000.00
Matthes
January ma4go,"relleyhabiat.org
_
_ Bruce Teague. 3378922 _.. _..
FY13 Charm Homes LLC
$
61,65000
Jacobson
January. bruceteaguagotainhareleanurn. cam
__ _
_...
Some Rackis, 887.6055,
FY111CHA- Tenant Based Rent Assistance
'.. $
40,000,00
Hacker
April ste•ao-rackls@ioaacity.org
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
SEPTEMBER 19, 2013
PAGE 4 of 5
Timellne for the Annual Review of CITY STEPS
Hightshoe stated the commission reviews the priorities under CITY STEPS annually. FYI
will mark the last year of the current Plan. She said there are usually one to two meetings
before the Commission's next October meeting to gather feedback on local priorities. Staff
will summarize the comments received and then forward to the commission, city
departments and the City Council. The commission will review the feedback at their
October meeting and decide if any priorities need to be changed. If so, those changes get
sent to City Council for their consideration. Hightshoe took suggestions for places to set up
community meetings.
Chappell said it seems that no one ever wants any priorities reduced, but many want to
increase the priority level. He said this year when the Commission allocates Aid to Agency
funds it will be more important to be a high priority because that's where HCDC will focus
funding. He said it also makes a difference under the CDBG funding, although less of one.
Jacobson asked what the measure for determining high priority is. Hightshoe explained that
when the City hired the consultant to complete the Consolidated Plan it was encouraged
that not all priorities be high. The consultant, Mullin & Lonergan Associates, met with many
non -profits, city departments, Housing Authority, community groups and housing providers.
They also completed an online community survey. Based on the responses they received
and from meetings they had, they formulated priority recommendations. These
recommendations were reviewed by HCDC and then approved by City Council.
Hightshoe said the next Consolidated Plan for 2016-2020 will need to be ready by
December 2014. Staff will start the process of hiring a consultant for this plan shortly. The
public process to determine community needs will be reviewed extensively. She said the
University of Iowa Public Policy Center (PPC) was hired to complete the Analysis of
Impediments to Fair Housing. This document is required once every five years, typically in
conjunction with the Consolidated Plan. The recommendations from the Analysis will get
incorporated into the Consolidated Plan. The PPC drafted two surveys. One for those
receiving public assistance and one for renters not receiving public assistance to solicit
input on discrimination in Iowa City,
Bacon Curry asked if the PPC considered including such a survey in the Annual Review
Packets for Section 8 tenants. Hightshoe said she's not sure if the timing would work. The
Analysis was to be completed in August by contract. Survey responses will be due in
October, this does not coincide will all Section 8 tenant annual reviews. There was some
discussion about the survey being posted on-line and available for anyone to take with no
security in place as well as the validity of the data considering the small number of people
they anticipate getting a response from. Persson requested a copy of the PPC contract and
members requested to view the survey. Hightshoe stated she will forward to all commission
members. Hightshoe will ask Jerry Anthony, PPC, to present at the October or November
HCDC meeting.
ADJOURNMENT:
Bacon Curry moved to adjourn.
Persson seconded.
Motion to adjourn carried 6-0.
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2013 CITY STEPS ANNUAL REVIEW
LOCAL HOMELESS COORDINATING BOARD
CITY HALL — EMMA HARVAT HALL
OCTOBER 9, 2013 — 9:00 AM
Approximately 20 persons in attendance
City Staff: Tracy Hightshoe, Liz Osborne
Comments Received:
Housing:
• Affordable rental housing a huge need in Iowa City. Most important need. Most recent
Cook Appraisal has Iowa City's rental vacancy rate at less than 1% with rents increasing.
Increase supply.
• Permanent supportive housing important. Increase supply.
• Shelters experiencing longer stays as available affordable rental units are in short supply.
• Tenant Based Rent Assistance is a large need.
PREVENT homelessness through security & utility deposits, emergency assistance, etc.
• Funding always as issue. Funds available can only assist a small number of households.
• Need additional areas of the City to develop affordable housing and community support to
develop in those areas. Change perception of affordable housing at the local level —
Council, boards and commissions and general public.
Allow Community Housing Development Organizations (CHDO) to re -use their proceeds
(loan repayments, sale of assisted housing, etc.) for HOME eligible activities.
Economic Development Fund
Reexamine how the City uses CDBG for economic development. Suggest requiring for -profit
businesses to provide job training and/or partner with local non -profits.
• Move funds from the Economic Development Fund into housing projects.
• Job training a high need.
Traffic concerns:
Traffic safety at Sycamore Mall is large concern. No sidewalks on the side of the mall.
Dangerous for pedestrians — Tate, Kirkwood, etc.
Written comments received:
• CDBG/HOME funds should be utilized for construction of childcare centers/neighborhood
centers in Lakeside area, down payment assistance and rehab. of existing neighborhood
center. Unmet needs include housing, childcare, and housing for hard to house families and
individuals.
CDBG/HOME funds should be utilized to increase affordable rental housing. City's number
one priority. Affordable housing is the City's largest unmet need — access to and availability
of. Re-examine the use of economic development funds. If under used, then allow to
move to other eligible activities. Allow CHDO proceeds re -use.
Unmet needs include emergency shelter — Shelter House and housing for youth. Increase
housing for homeless teens - not in shelters due to legal or mental health issues. Increase
the number of landlords accepting Section 8 vouchers. Tenant/landlord mediation needed.
Services most in need by low income persons are; affordable housing, emergency shelter,
childcare, better transportation and utility assistance. I believe that services for battered
and abused spouses should be moved from medium to high priority.
I believe that assistance for victims of domestic violence should be a high priority for our
community. Both crisis services and rental assistance are necessarily to provide for this
particular group and that doing these things will improve our community as a whole.
Homeless services and affordable rental housing are incredibly important for improving our
community. Additionally, I would like to see parks and recreational facilities moved to
medium priority and the above mentioned needs moved to a high priority.
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Tracy Hightshoe
From: sarahtdvip@gmail.com on behalf of Sarah Traeger <sarah@dvipiowa.org>
Sent: Friday, October 11, 2013 3:56 PM
To: Tracy Hightshoe
Subject: City Steps Feedback
Hi Tracy,
I wanted to give my input for this year's City Steps.
I feel eligible activities should include those that assist and empower victim/survivors of domestic violence,
specifically when economic challenges are present, such as affordable/sustainable/safe housing in the Iowa City
area. I work at the Domestic Violence Intervention Program and see all too often the devastation that
victim/survivors experience, not just by the hands of their abusers, but in their attempts to leave and remain
apart from their abusers. Additional affordable/sustainable/safe housing in the community would help
victim/survivors and their children start over and not be forced into staying or returning to their unsafe
situations. Other critical needs in this area include down payment and rental assistance to those in need.
Domestic violence victim/survivors should be moved up to high priority, as they were in the past. Domestic
violence affects as many as one out of three people. When other issues are present, such as low income,
joblessness, homelessness, and little education, it only increases the barriers for victim/survivors and increases
their need for assistance.
Domestic violence programs are also struggling to assist victim/survivors, including assisting them in finding
affordable/sustainable/safe housing. In sum, I believe City Steps should give serious consideration to both
victim/survivors of domestic violence and creating more affordable housing solutions, including more low
income housing, as well as down payment and rental assistance.
Thank you,
Sarah Traeger
Director of Client Advocacy Services
Tracy Hightshoe
From: Byron <byron@dvipiowa.org>
Sent: Friday, October 11, 2013 3:59 PM
To: Tracy Hightshoe
Subject: Response to the City Steps survey
Hi Tracy,
This is my responses to the survey;
Home Program
For home owners that are low income one of the most important issues relates to heating & cooling. I believe it is
very important that a home owner maintains an energy -efficient home. This may mean maintenance on heating units or
even cooling systems. Another method, aside from maintenance of heating & cooling units, is to have updated
insulation
that is high efficient installed in their home
The owners should go through go through an "energy audit' to see what areas should be improved (e.g. caulking of
windows,
electrical outlets, and other areas). Maybe having resources to help pay for an auditor just the supplies to be used to
do
the smaller things that can help conserve energy.
In addition, ensuring the owner's safety and well-being is another important issue. Proving fund for quality locks &
doors, smoke detectors
or even radon mitigation systems and sump pumps (to keep basements dry & mold -free.
I appreciate you sending out this survey and for asking our feedback.
57zm E
Controller
Domestic Violence Intervention Program (DVIP)
bymn@dvipio .arg
Business Line: 319.351.1042
Fax Line: 3 ] 9.466-4624
Tracy Hightshoe
From: shydvip@gmail.com on behalf of Shy DVIP <shynl@dvipiowa.org>
Sent: Friday, October 11, 2013 10:01 PM
To: Tracy Hightshoe
Subject: Fwd: City Steps
Chisato -Shy- Conway, CDAA
Volunteer Coordinator
Domestic Violence Intervention Program
Co -Chair Person,
Johnson County Coalition against Domestic Violence
P.0 Box 3170,
Iowa City, IA 52244
Cell number: 319-325-9223
Business Line: 319.351.1042
Fax Line: 319.466-4624
Crisis Line: 319.351.1043 or 1.800.373.1043
www.dvipiowa.org
www.facebook/dvipiowa
---------- Forwarded message ----------
From: Shy DVIP <shynl@a dviniowa.org>
Date: Fri, Oct 11, 2013 at 9:58 PM
Subject: City Steps
To: tracvhiahtshoe(7iowa-city.or¢
1- 05G
2- low income housing that allows large families, transitional housing, long term housing for the people with
temporary ill
3, I don't know what that would be.
4, The high need is safe and stable housing for the low income families and disable individuals.
Chisato -Shy- Conway, CDAA
Volunteer Coordinator
Domestic Violence Intervention Program
Co -Chair Person,
Johnson County Coalition against Domestic Violence
P_O Box 3170,
Iowa City, IA 52244
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=,°Ip,I CITY OF IOWA CITY
M E M 0 KA N U
Date: October 2, 2013
To: Thomas Markus, City Manager
From: Tracy Hightshoe, Community Development Planner
Re: Resolution Adopting the FY14 Annual Action Plan Amendment #1
Introduction
A resolution considering approval of the FY14 Annual Action Plan Amendment #1 will be held at the
October 15, 2013 City Council meeting. The amendment allocates Community Development Block
Grant (CDBG) and HOME funds to the following three projects: City of Iowa City — UniverCity home,
The Housing Fellowship — Rental Rehabilitation and Crisis Center — Parking Lot Improvements.
History/Background
During FY13, the City of Iowa received unanticipated HOME program income from the sale of
previously assisted properties and the following two CDBG projects were unable to proceed. Habitat
for Humanity (homeownership) and Isis Investments LLC (rental housing) were each allocated funds
to purchase three properties. Both agencies purchased two properties, but were unable to acquire a
third property.
Discussion of Solution
$234,997 in HOME program income and CDBG uncommitted funds are available for allocation to
eligible projects. The City conducted a mid -year funding round for these funds based on a formal
application process. Applications were due July 19, 2013. Nine applications were received
requesting $611,256.
Recommendation
At the October 15 meeting, we are asking that City Council consider approval of the FY14 Annual
Action Plan Amendment #1 as recommended by the Housing and Community Development
Commission (HCDC). To date, the City has received no written comments from the public concerning
the FY14 Annual Action Plan Amendment. HCDC reviewed this request at their August 15, 2013
meeting and recommended approval. The HCDC minutes were in the October 1, 2013 City Council
Information Packet.
Fiscal Impact
These funds represent CDBG entitlement funds from the U.S. Department of Housing and Urban
Development and HOME program income.
If you have any questions about the amendment please contact me at 356-5230 or at tracy-
hightshoe@iowa-city.org.
Cc: Housing and Community Development Commission
CITY OF I®l/ A CITY
ME ORA UM
Date: September 20, 2013
To: Thomas M. Markus, City Manager
From: Tracy Hightshoe, Community Development Planner
Re: Compeer of Johnson County — Aid to Agencies Application
Introduction: In the September 17 Council packet there was an email from Compeer of
Johnson County requesting reconsideration of their Aid to Agency application which was not
submitted by the deadline. Johnson County human service agencies request funding for United
Way, Johnson County and the cities of Iowa City and Coralville on the United Way Joint
Funding application. 21 agencies submitted applications for FY15 Iowa City Aid to Agencies
funding through this process. Compeer of Johnson County failed to submit their application by
the September 4, 2013 deadline.
History/Background: As with last year, all Iowa City Aid to Agency applications must be
submitted through United Way's a-C Impact site as part of the United Way's Joint Funding
process. Applications were due September 4, 2013 by 5:00 PM to be considered for FY15
funding. The United Way contacted City staff to inform them that Compeer started the
application process, but did not submit the application and all forms were still in progress by the
due date. Compeer staff believed they had submitted the application, but didn't save the forms.
In previous years, applications not submitted by the deadline, for whatever reason, have not
been considered for that year's funding.
Discussion of Solutions: The Housing and Community Development Commission (HCDC)
will review the submitted applications in January. If directed by the City Council, HCDC will
review Compeer's application with all the other submitted applications for Iowa City funding.
Financial Impact: The budget for Aid to Agencies funds consist of General Fund, Community
Development Block Grant and utility user fees. Compeer is requesting funds from the Aid to
Agencies fund.
Recommendation: Staff's recommendation is to not consider Compeer's request to be
consistent with past decisions that did not allow consideration for those applications that were
not submitted by the deadline. In FY13, Mayor's Youth Empowerment Program and the Red
Cross were not considered for funding as they did not meet that year's application deadline. 21
agencies followed the United Way a-C Impact application process and submitted their
applications by the deadline.
Cc: Andy Chappell, HCDC Chair
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 policymakers 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 2013
In FY13 the City of Iowa City and its subrecipients expended $1,778,290 in CDBG funds
and $746,224 in HOME funds on 47 projects that assisted low -moderate income persons.
To ensure that community needs are met, HCDC members monitored projects throughout
the year.
The City's annual CDBG entitlement amount is approximately $605,000. In May and
July of 2011 the City received $2.7 million in CDBG program income. Aniston
Village, LP, a Low Income Housing Tax Credit Project in Iowa City, was awarded
$2.9 million in Iowa CDBG Disaster Recovery Housing Funds through the Iowa
Economic Development Authority (IEDA) to finance the construction of 22 homes
for affordable rental housing. When Aniston Village LP secured permanent
financing, $2.7 million was repaid to the City and IEDA allowed the City to retain the
funds 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.
Due to the inclusion of these funds, many projects initiated in FY12 were completed
in FY13. Leverage and beneficiary information for projects that were completed in
FY13 are reported in this report. Some of these projects include Wetherby Condos
South LLC (Rental Rehabilitation), Shelter House (Rental Rehabilitation), Isis
Investments LLC (Rental Housing), City of Iowa City, Fairmeadows Park (Splash
Pad and Improvements), Crisis Center (Parking Lot), and Iowa Valley Habitat for
Humanity (Property Acquisition — Employment Training).
FY13 project accomplishments are as follows:
♦ Leveraged $5,334,124 in private and public funds
♦ Economic Development Fund — Funded three new businesses creating 20.5 FTEs,
reviewed two additional business applications and approved a loan to Max Effect
scheduled to open in FYI 4. Staff continued to market the fund to the community
and local lenders
♦ Rehabilitated 26 owner occupied homes
♦ Constructed and sold two homes to income eligible homebuyers
♦ Rehabilitated 64 existing rental homes for low -moderate income households
♦ Constructed 12 new rental homes for low -moderate income households, four of
the units targeted to those with disabilities
♦ Acquired 22 units for affordable rental homes for low -moderate income
households
♦ Assisted 1,143 persons who are homeless with support services and shelter
upgrades
♦ Provided operational funding to non -profits that assisted 314 persons
♦ Completed improvements to six non -profits facilities. The mission of these
agencies includes assisting those with a chronic mental illness, substance abuse
treatment, homeless services, those in crisis and in need of health services, and
employment training. The City completed the Fairmeadows Park splash pad as
well.
HACAP — New Playground
Wetherby Condos — Rehabiiitation of 56 rental units
PLANS FOR FISCAL YEAR 2014
A total of $1,117,039 was allocated to 12 projects, plus program administration for
FY14.
The following is a list of the upcoming projects:
♦ Property Acquisition for Rental Housing — Charm Homes LLC, $61,650
♦ CHDO Operating Expenses — The Housing Fellowship, $17,630
♦ Owner -occupied Housing Rehabilitation — City of Iowa City, $502,007
♦ Facility Rehabilitation — Iowa City Free Medical Clinic, $25,000
♦ Facility Rehabilitation — Mayor's Youth Empowerment Program, $70,000
♦ Facility Rehabilitation —MECCA, $23,850
♦ Playground Improvements — Neighborhood Centers, $55,000
♦ Economic Development Fund, City of Iowa City, $41,714
♦ Economic Development Fund, Building Change, $47,704
♦ Operational Funds — Aid to Agencies (DVIP, MECCA, and Neighborhood
Centers), $100,000
In FY13, HCDC was asked by the City Council to review the Aid to Agencies applications
and formulate a funding recommendation to the City Council. The City of Iowa City
provides financial support to local human service agencies through the Aid -to -Agencies
allocation in the annual budget. For FY13 that amount was $391,829. The sources of
funding are the General Fund ($274,173), Community Development Block Grant
($91,000), and Water and Wastewater utility bill abatements ($26,656). The agencies
primarily use these funds for operational expenses such as utilities, staff salaries and
supplies for their programs.
The following agencies received FY13 Aid to Agency funds:
♦ 4C's Childcare, $2,000
♦ Big Brothers Big Sisters, $32,000
♦ Compeer, $5,000
♦ Crisis Center, $40,000
♦ Domestic Violence Intervention Program, $50,000
♦ Elder Services, Inc., $52,000
♦ Four Oaks, $1,000
♦ Free Lunch Program, $2,000
♦ Free Medical Clinic, $7,500
♦ Housing Trust Fund, $8,000
♦ MECCA, $18,950
♦ Neighborhood Centers, $60,000
♦ Pathways Adult Daycare, $4,879
♦ Rape Victim Advocacy, $12,000
♦ Shelter House, $36,500
♦ United Action for Youth, $60,000
In FY14, the City awarded $378,700 in Aid to Agencies funding to 19 agencies. These
funds consisted of $250,000 from the General Fund, $100,000 from CDBG and $28,700
from Utility User Fees.
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
Andrew Chappell, Chair
Michelle Bacon Curry, Vice Chair
Cheryl Clamon
David Hacker
Jim Jacobson
Peter Matthes
Dorothy Persson
Christine Ralston
Rachel Zimmermann Smith
�. ,ram®��►
Date: October 9, 2013
To: Tom Markus, City Manager
From: Steve Long, Community Development Coordinator
Re: Affordable Housing Discussion October 15, 2013 City Council Work Session
Introduction
At your August 20, 2013 Council Work Session, staff was directed to review the City's affordable housing
opportunities and to discuss options for a regional approach to affordable housing.
History/Background
In 2007 the City commissioned an affordable housing market analysis for the Iowa City metro area. Mullin
& Lonergan Associates, Inc. completed the analysis in December of 2007. The primary goal of the study
was to determine whether there is an adequate supply of owner and rental homes to meet the needs of
households with incomes up to 80% of the area's median income. Based on this study, there was an
unmet need of 2,739 homes throughout our metro area. The study identified several regional public policy
recommendations and many of the conditions and recommendations in this report remain valid today. The
Affordable Housing Market Analysis can be found at www.icgov.org/affordablehousing.
In 2009, the Johnson County Affordable Housing Task Force report was completed that included a
number of recommendations to be forwarded to the MPOJC Board. The Affordable Housing Task Force
was made up of representatives from the Cities of Iowa City, Coralvilie, North Liberty, Tiffin, University
Heights and representatives from Johnson County, the University of Iowa and the Iowa City Community
School District. The report can be found at www.icgov.onglaffordablehousing
Over the past 5 years, the City of Iowa City has assisted with the construction, acquisition or rehabilitation
of over 160 rental homes with Community Development Block Grant (CDBG) funds, HOME funds, Low -
Income Housing Tax Credits and General Obligation Bond funds. In addition, the City has assisted with
the creation of nearly 200 affordable owner -occupied homes through the Single -Family New Homes
program, the UniverCity Neighborhood Partnership program and Iowa Valley Habitat for Humanity. The
City's Housing Rehabilitation program works with homeowners and rehabilitates 20-25 owner -occupied
homes per year as a way to maintain affordable housing. The City also partners with the Housing Trust
Fund of Johnson County to provide funding for affordable housing countywide and operates the Iowa City
Housing Authority to provide housing vouchers and public housing.
Despite our best efforts, the need for affordable housing exceeds how much the City can assist on its own.
There continues to be a deficit of affordable housing in the metro area. A regional approach would
maximize resources and scatter affordable housing throughout the region so that households have a
better chance of finding an affordable home where they choose to live.
Discussion Of Solutions
At your August 20, 2013 Council Work Session, staff was directed to look at amending MPOJC scoring
criteria for transportation project funding to include a criterion related to affordable housing. The existing
criteria include factors such as:
• project type (new or reconstruction)
• local match percentage
• vehicle delay and vehicle miles traveled (to ascertain impact on vehicle emissions)
October 9, 2013
Page 2
• safety improvement
• how multi -modal the project is (improvement to transit operations, pedestrian and bicycle facilities,
on -street bicycle improvements)
• regional collaboration (projects including multiple jurisdictions)
• Access to schools, multi -family residential, and commercial development
If an affordable housing criterion were added to the scoring system, staff believes it would be appropriate
to tie a transportation project to improving access to and from a lower income census tract, improve
access to an affordable housing project, or to improve access between a lower income neighborhood and
an employment area. It is important the criterion be measurable in terms of using census block group data
for median income and/or median housing costs. It is important to keep in mind MPO road funds may only
be utilized on defined federal -aid routes (typically the arterial street system and major collector streets)
and may not be used to fund housing directly.
Land Use and Zoning
There has been past discussion of land use and zoning initiatives as a means of encouraging more
affordable housing. Techniques such as inclusionary zoning (when a residential development may be
required or incented to include a percentage of affordable units), pre -zoning land for multi -family
development, reducing minimum lot sizes to encourage smaller lots and homes, and reducing parking and
infrastructure standards to reduce development costs have all been discussed. There are pros and cons
to each of these approaches.
By state code, land use and zoning decisions are made by individual City Councils and Boards of
Supervisors, after receiving recommendations by Planning and Zoning Commissions. Unless there is a
clear consensus amongst the units of local government to adopt consistent land use and zoning
standards, staff does not believe a regional approach in terms of zoning standards is a viable long term
solution. By their nature, land use and zoning decisions are local, as opposed to regional.
Existing Regional Organization
Currently, the cities of Iowa City, Coralville, North Liberty and Johnson County annually contribute a
combined total of $55,000 for operational funding of the Housing Trust Fund of Johnson County (HTFJC).
They also have representatives on the Board of Directors. Since 2006, the HTFJC has allocated nearly
$2.7 million for affordable housing projects throughout Johnson County. The majority of the funding is
from the State Housing Trust Fund which is administered by the Iowa Finance Authority and is allocated
annually to HTFJC.
City staff recommends a regional approach led by the HTFJC to foster discussions and action throughout
Johnson County to increase affordable housing opportunities on a regional basis. As an existing, regional
organization the HTFJC is well situated to address regional housing needs, particularly in the area of
affordable rental housing (the area of greatest need).
Recommendation
Staff recommends that the MPOJC approach the Housing Trust Fund of Johnson County to request that
they coordinate, formalize and adopt a housing strategy amongst Johnson County stakeholders that
increases and maintains affordable housing throughout the County. Local governments could also
support the HTFJC by assisting with matching grant funds, providing land for projects, helping navigate
the zoning process and by increasing direct financial contributions in order to make a viable regional
approach.
Staff also recommends that the MPOJC Board discuss revising their transportation project scoring criteria
to include affordable housing criteria.
t-..pair CITY OF IOWA CITY IP3
MEMORANDUM
Pate: October 9, 2013
To: Tom Markus, City r
From: Douglas Boothroy, Directo , g tion Services and Steven J. kis, Housing
Administrator
Ile: Selling Public Housing units (on r the Iowa Ci Housing Authority's (ICHA) Section 5(h)
Homeownership agreement) alo g with publi private partnerships to develop new low-
income housing opportunities.
Since our last discussion regarding the sale of Public Housing, the "Fiscal Cliff", the Federal Debt
Ceiling; and "Sequestration" have reduced the amount of funding the ICHA receives from the Department
of Housing and Urban Development (HUD) (administrative fees for the Housing Choice Voucher (HCV)
program were reduced by 309/6, Public Housing Operating Subsidy by 181/o, and Housing Assistance
Payments by 6%).
Obviously these reductions negatively impact the Housing Authority's budget. The likelihood of
Congress restoring the funding in 2014 is bleak, as it appears Congress will pass continuing resolutions
keeping the "Sequestration" cuts in place.
Prior to "Sequestration", the Public Housing units were generating positive income for the ICHA through
the receipt of an Operating Subsidy from HUD and the rents collected from the tenants. Given the
uncertainty of future federal funding, selling any Public Housing that reduces the total number of units
further jeopardizes the financial condition of the ICHA.
Background:
Staff has discussed with HUD multiple scenarios for selling existing Public Housing units. HUD has
determined our scenarios for selling Public Housing units cannot meet their criteria for approval. The
ICHA units are scattered sites, rated as high quality in HUD inspections, and are located in good
neighborhoods. HUD has informed the ICHA that the only Public Housing units the ICHA can sell are
the units identified in the existing HUD approved Section 5(h) Homeownership Agreement (see attached
May 10, 2012 memorandum).
The ICHA's accounting firm, Blosky and Associates(HUD accountants), has updated their analysis of the
number of units that the ICHA can sell without creating a negative financial impact on the ICHA and
causing a cost burden on the City that could result in providing some financial assistance to the ICHA.
Prior to "Sequestration", their spring 2012 analysis showed a financial breakeven point at keeping 72 out
of 81 Public Housing units. Based on their most recent analysis, the ICHA financial breakeven point is
now above the existing 81 units (see attached memorandum).
Recommendations:
Staff recommends the following Public Housing Disbursement Plan that would redistribute and reduce
the number of Public Housing units in certain neighborhoods without reducing the number of Public
Housing units below 81 units:
October 9, 2013
Page 2
a. Develop new Public Housing units with scattered site units located in other parts of Iowa City either
by new construction or rehabilitation targeting elderly and disabled low-income families.
The ICHA would seek public/private development opportunities to develop new Public Housing units,
units that can accept vouchers, and/or homes for homeownership. The new affordable housing units
would be developed before any existing Public Housing units are sold for homeownership. This may
result in an initial increase in Public Housing units; however, this increase would be offset with the units
sold.
b. Sell for low income homeownership (Section 5(h) Homeownership Agreement) at least six (6) 3-
bedroom units located in the Whispering Meadow Neighborhood.
The ICHA cannot remove existing families to sell the units. The units must be vacant and sold to an
income eligible family (80% median income) with sufficient resources to successfully purchase and
maintain the home, therefore, the timeframe for completing the disposition process may be measured
in years, not months.
c. Do not sell for low income homeownership any 4-bedroom units. These units are in short supply and
therefore a valuable commodity in Iowa City affordable housing market.
There are 17,000 rental properties in the City of Iowa City and only 35 (<1%) of these units are
affordable 4-bedroom units: Pheasant Ridge has 18 units; ICHA has 13 units; and, The Housing
Fellowship has 4 units.
In conclusion, these recommendations provide the opportunity to relocate public housing units, create
new affordable housing for elderly/disabled families, expand affordable housing through public/private
partnerships while not negatively impacting the financial health of the ICHA.
NOTE: On September 26, 2013, all Public Housing Tenants residing in units in the Whispering Meadow
Neighborhood were notified, in writing, that their unit was included in the Housing Authority's
Homeownership program. The letter specifically stated "Please knonv the Housing Authority cannot evict
or ask families to vacate their Public Bousing unit for the purpose of selling the zniiis for
homeowwership ".
� .paar CITY OF IOWA CITY
IllogymDate: May 10, 2012 Co
To: Tom Markus, City Manager (1 U
From: Doug Boothroy, Director, Housing and Inspection Services; Steven J. Rackis, Housing
Administrator
Re: Selling Public Housing
This memorandum addresses multiple questions related to the sale of Public Housing units; the allowable
use of proceeds from these sales; the size of the Public Housing inventory.
Can the City of Iowa City sell all 81 Public housing units?
Answer: No. The City of Iowa City does not meet the Housing and Urban Development's (HUD)
criteria for Demolition/Disposition and Replacement.
Can the City of Iowa City sell any of the 81 Public housing units?
Answer: Yes, the City of Iowa City can sell the 43 single family units remaining in the existing HUD
approved Section 5(h) Homeownership Agreement. The other 38 Public Housing units are multi-
family. The Iowa City Housing Authority has sold twenty-six (26) Public Housing units through this
agreement. Qualified buyers are low-income families (80% of the median income which for a family
of 4 = $64,250) who can secure at least 75% of the sales price from private lenders, can meet the
financial obligations of homeownership, and demonstrate a reasonable expectation that
homeownership will be successful.
Can the City of Iowa City use the sales proceeds to supplement CDBG and HOME funds and aid
other Iowa City agencies and non -profits?
Answer: No.
What can the City of Iowa City do with the sales proceeds?
Answer: Sales proceeds must be retained by the Iowa City Housing Authority and used for housing
assistance to low-income families (24 CFR 906.15). Permissible uses are:
l . The Section 5(h) Homeownership Agreement allows for new construction, rehabilitation of
additional units for sale, 2"d mortgages, Housing Authority repurchase, repair and resale of
homes in the event of default;
2. Acquire additional Public Housing units and/or use the proceeds for the maintenance and
modernization of Public Housing units, augmentation of operating reserves, and resident
services;
3. Other types of Federal, State, or local homeownership programs for low-income families.
How have the Section 5(h) sales proceeds been used?
Answer: The sales proceeds have been used to develop and assist homeownership programs for low-
income families:
1. The Iowa City Housing Authority used the sales proceeds to create the Affordable Dream
Home Ownership Program (ADHOP). Through the ADHOP program, the Housing Authority
built sixteen (ib) homes (10 "Universal Design" homes) that were sold to eligible families.
This includes the home built in the Longfellow neighborhood.
2. The Iowa City Housing Authority provides 2md mortgages to homeowners purchasing
previously sold Public Housing units and ADHOP homes available for resale;
3. The Iowa City Housing Authority provided the UniverCity program with $100,000 for down
payment assistance;
4. Provided a 2"d mortgage to the "Green Home" built under the Iowa Area Association of
Realtors (ICAAR) "Homes For Our Future" program;
5. Purchased a lot on Davenport Street (home destroyed by fire);
6. Will provide a 2"d mortgage to the family purchasing a home on Prairie Du Chien, The City
of Iowa City bought the nuisance property and sold it to Habitat for Humanity who will
complete the rehabilitation and sell the home in 2012. The family is already identified and
will convert their Housing Choice Voucher rental assistance to homeownership;
7. To maintain a viable program and to prevent or lessen the risk of losing homes sold under the
TOPIADHOP program from the stock of affordable housing in the City of Iowa City, the
Housing Authority will retain contingency funds of at least 50%" of the total sales proceeds.
Does Public Housing benefit the community?
Answer: Yes.
I. It provides permanent affordable housing and contributes to the affordable housing goals
outlined in City Steps: Iowa City's Consolidated Plan for Housing, Jobs, and Services for
Low -Income Residents;
2. The management and maintenance is 100% federally funded by HUD. Unlike other
programs, no General funds, CDBG, or HOME funds are used;
3. It contributes to Neighborhood Stabilization:
a. The Iowa City Housing Authority is the only landlord in the community that can and
does conduct a National Criminal Background check through the Iowa Department of
Investigation (DCI) and the Federal Bureau of Investigation (FBI);
b. To ensure program integrity, the Housing Authority communicates and shares
information with all law enforcement agencies. Our communication with the Iowa
City Police Department occurs virtually on a daily basis;
c. The Iowa City Housing Authority has a zero (0) tolerance policy for drug related and
violent criminal activity. The Housing Authority enforces leases to the greatest extent
provided under Iowa and Federal Law;
d. HUD pays for the maintenance and repair of the units; therefore, the Housing
Authority adheres to strict maintenance schedule and does not defer maintenance as
Operating Subsidy and Capital Funds offset low and lost rental income;
4. The existing Public Housing units generate approximately $400,000 is federal revenue
annually. For FYI I, the Housing Authority paid $334,009 to local small businesses for
upgrades, maintenance and repair.
5. The existing Public Housing units allow the Housing Authority to transfer $43,000/year to
the General Fund to support Housing and Inspection Services, Legal, and Accounting.
How many Public Housing unfits should the City of Iowa City retain?
Answer: 80 Public Housing units. HUD provides the Housing Authority with two (2) formula based
funding steams: Operating Subsidy and Capital Improvement funds. The formulas are based on # of
units and # of units occupied during the Fiscal year. Staff economic analysis indicates the per unit
month revenue generated by 80 units covers the yearly Public Housing expenses (e.g., repair and
maintenance, transfer to the General fund, staff, etc.). 80 units represent the "break-even point" which
ensures the Housing Authority receives adequate funds from HUD to manage and maintain the
quality of the public housing units and the financial viability of the Public Housing program.
Will a reduction in Public Housing units lead to a reduction of expenses?
Answer: To a certain extent yes; however, staff analysis shows 80 units are a "break-even" or the
balancing point between revenues and expenses. HUD is already and will continue to reduce revenue,
while operational costs continue to rise. Maintaining at least 80 units ensures that the Housing
Authority receives a sufficient amount of funds from HUD to manage and maintain the quality of the
Public Housing units and the financial viability of the Public Housing program.
Recommendation.
1. Maintain at least 80 Public Housing units to ensure well maintained and well managed permanent
low-income housing;
2. Reduce the Housing Authority's Public Housing presence on Indigo Court by selling the existing
8 units. HUD does not require replacement, but there is a significant fiscal reason to replace these
units to keep the inventory at 80 Public Housing units,
3. Replace the 8 Public Housing units sold on Indigo Court with scattered site Public Housing units
in other parts of Iowa City either by new construction or rehabilitation;
4. Continue to make funds available to the UniverCity program for down payment assistance and
provide funds to rehabilitate homes to a maximum of 50% of the balance of funds in the
TOP/ADHOP account (families must be at 800/o or below the median income).
September 26, 2013
Steven Rackis, Executive Director
410 E Washington Street
Iowa City, IA 52240
Re: 13reakeven
Dear Mr. Rackis,
housingunits available.
funding operating expenses from prior year earned reserves or reducing services
provided r _
If you have any further questions, please feel free to contact me.
Prepared By:
Sean Barrera, Vice-Presidpnt
Blosky &:associates, LLC
370 High Street - Souderton, PA 18964 - Phone. 610-937-0326 - www.bloskyassociates.com