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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. Z LD U Z W a O w w a Z D �M ON 0, QX n co Z W O �Fw 0a< Tcwna Z O y N d U F- Z UJ d d 0 OQ U awM 0 DU N Z Z N ttJ gQ U 0 Z ,a V Z N O w x x 6 _ X x 1 x x W O 1 X x X O X X X j LLJ d x x I O x x X x w x X x x x x x x M X x x x x x x X x X x x x O X x X X X X O Q x x X I x x x X X x x ? r co X X x LU X Ill= X X X P 0 N X x x x x X X I X co 1 x x X ` x x 1 Ill O x 1 1 1 L O coO X Vt to 't M M LO 0 M V CD CD � to W r 0 N r 0 N r 0 N r 0 N r 0 N r 0 N r 0 N r 0 CV r 0 N r 0 N r 0 N r 0 N r 0 N r r r r r r r r r r r r r W N O> OY 61 07 O\i 0) W 0) a) 65 W W J J w s U W Z W `( w W W Z U) s a a Q O W v w a CL O U Z nW ?J a U z w s pp = 0 0 ww M U Q w Q D F v ° J �U Q Z 4 m 1 s 0 s 0 O I 0 4 @} 4 s Q s a -7 Q 2 W CL MQ N w II II II II w �xoo 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. 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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. 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J Q p A G a o 2 a=i '� r �' W = y c d d x a p Q U _ J ro O Y J LL O _ N Q 0) U U a) U j G Q E C Q O T5 f1 'O W i M Q Z O y =O a) H m c O v Q °o y b °o E K O c_ t o m ¢ :° E v LL g .E O } rn E m r rn >. _ a 2 ¢ U n U r E i d 5 Z 2 2 U U e- d U W U ay) 2 !0 �. o 2 pc {8 C CO M CO LL 9 0 z V z U V d >� }N_ >N_ >M_ LL S � 0 � [i [i fi fi li [i ii r =,°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