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HomeMy WebLinkAbout11-21-2013 Housing and Community Development CommissionAGENDA HOUSING AND COMMUNITY DEVELOPMENT COMMISSION DALE HELLING CONFERENCE ROOM 410 E. WASHINGTON ST., IOWA CITY THURSDAY, NOVEMBER 21, 2013 6:30 P.M. 1. Call Meeting to Order 2. Approval of the October 17, 2013 Minutes 3. Public Comment of Items Not on the Agenda 4. Staff/Commission Comment 5. Presentation by the University of Iowa Public Policy Center on the Draft Analysis of Impediments to Fair Housing Choice icgov.org/actionulan) • Opportunity for Commission and Public to Comment 6. New Business • Discuss and Review FY15 CDBG/HOME Funding Process Timeline • Review and Approve FY15 CDBG/HOME Application Materials • Discuss and Review FY15 Aid to Agency Funding Process & Timeline 7. Monitoring Reports • FY14 MECCA — Aid to Agencies (Chappell) • FY14 Neighborhood Centers of JC — Aid to Agencies (Chappell) • FYI Neighborhood Centers of JC — Facility Rehab. (Bacon Curry) • FYI Mayor's Youth — Rental Housing (Bacon Curry) 8. Adjournment i r � MAN",,� CITY OF IOWA CITY MEMORANDUM Date: November 14, 2013 To: Housing & Community Development Commission (HCDC) From: Tracy Hightshoe, Community Development Planner Re: November Meeting Packet Below is a brief description of the November agenda items. Presentation by the University of Iowa Public Policy Center (PPG) on the Draft Analysis of Impediments to Fair Housing Choice ()ffiww.icgov.oWjaactionplan) • Opportunity for Commission and Public to Comment Jerry Anthony, PPC, will provide a brief overview of the Analysis and then open up the meeting to comments and questions. Due to the length of the draft Analysis, it is not included in the packet and must be downloaded at www.icaov.orgtactionplan. Discuss and Review FY15 CDBG/HOME Funding Process Timeline The proposed FY15 CDBG/HOME funding process timeline is enclosed. Please review the entire timeline and also check your calendars to make sure that you will be able to attend the allocation meetings in February and March. Review and Approve FY16 CDBGtHOME Application Materials Enclosed in your packet are drafts of the FYI CDBG/HOME applications and application guide. There will be no funds available for public services. All funding, up to the maximum cap for public services under the CDBG program, will go to Aid to Agencies. Like last year, staff is recommending a minimum award of at least $50,000 for all housing and public facility applications. Congress has not approved a CDBGIHOME budget yet. The amounts identified in the application guide are only estimates until the final budget is approved. for the upcoming allocation period. Monitoring Reports • FYI MECCA —Aid to Agencies (Chappell). Agency contact: Ron Berg, 351,4357, rberg@meccaia.com • FYI Neighborhood Centers of JC — Aid to Agencies (Chappell) Agency contact: Brian Loring, 358.0438, brian-loring@ncjc.org • FYI Neighborhood Centers of JC — Facility Rehab. (Bacon Curry) Agency contact: Brian Loring, 358,0438, brian-loring@ncjc.org • FY12 Mayor's Youth — Rental Housing (Bacon Curry) Agency contact: Roger Lusala, 341.0060 x7001, r.lusala@myep.us 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 OCTOBER 17, 2013 — 6:30 PM DALE HELLING CONFERENCE ROOM, CITY HALL MEMBERS PRESENT: Andrew Chappell, Cheryll Clamon, David Hacker, Dottie Persson, Christine Ralston, Rachel Zimmerman Smith MEMBERS ABSENT: Michelle Bacon Curry, Jim Jacobson, Peter Matthes STAFF PRESENT: Tracy Hightshoe OTHERS PRESENT: Tracey Achenbach, Crissy Canganelli, Maryann Dennis, and University of Iowa students Krista Johnson, Robert Wong Kamalasai, Stine Dybdal RECOMMENDATIONS TO COUNCIL: No recommendations. CALL TO ORDER: The meeting was called to order by Chair Andrew Chappell. APPROVAL OF SEPTEMBER 19, 2013 MINUTES: Ralston moved to approve. Zimmerman Smith seconded. A vote was taken and the motion carried 6-0. PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA: Tracey Achenbach, Director of the Housing Trust Fund of Johnson County (HTF), requested that the funds provided by the City to their agency come from the City directly. In previous years, this was the regular procedure. Now the organization must apply through the Aid to Agency fund. Their Board is concerned at this change as they are now competing against the same agencies they fund with trust fund dollars. She said Steve Long approached City Council last Monday about their agency's possible involvement in organizing/leading a regional concept for housing and they are also going to staff a part-time person to work in conjunction with the Local Homeless Coordinating Board. She said the HTF provides a different perspective than most of the applicants for Aid to Agencies. Maryann Dennis, a board member of the HTF, said since the agency is a source of funding for affordable housing entities, she wondered if it was appropriate or if this Commission would consider discussing and making a recommendation to either the City Manager or the City HOUSING AND COMMUNITY DEVELOPMENT COMMISSION OCTOBER 17,2013 PAGE 2 of 4 Council that the HTF be removed from the competitive process of Aid to Agencies and that the City provide a permanent source of match. Chappell stated the commission may consider an agenda item concerning this request at a later meeting. STAFF/COMMISSION COMMENT: Hightshoe said the University of Iowa Public Policy Center (PPC) is performing the Analysis of Impediments to Fair Housing Study and this item will be on the November agenda. The final draft will be ready and sent in the November packet. Jerry Anthony, PPC, will be present to answer questions. She stated that the survey mailed to residents receiving housing assistance went well. 26% (over 200 tenants) completed and returned the survey. Public Meeting — Annual Review of the 2011-2016 Consolidated Plan (a.k.a. City Steps) Discussion of the 2011-2015 Consolidated Plan Hightshoe explained that Consolidated Plan for Housing, Jobs and Services (CITY STEPS) is the City's 5-year plan that identifies how the City will utilize its CDBG and HOME dollars to meet the goals and priorities identified in the Plan. FY15 is the last year of the 5-year Plan. This winter the City will begin the process of formulating the next 5-year Plan for 2016-2020. The commission annually reviews the plan to determine if the priorities and goals identified within the plan need to be changed. Hightshoe stated the packet included a summary of the comments received from community members and at the last Local Homeless Coordinating Board meeting. The Commission reviewed all the comments received to date. Chappell invited public discussion Maryann Dennis, Executive Director of the Housing Fellowship, said she likes that affordable rental housing is a high priority in CITY STEPS. She said increasing the affordable housing stock should be the absolute #1 priority in CITY STEPS. She said the available data is clear that the need for affordable rental property outweighs the need for affordable homeownership, although in the last five years, Iowa City assisted in the creation of 200+ owner occupied homes versus the construction, acquisition or rehab of 160 affordable rental units. She stressed that while it is a high priority, the City needs to fund projects that increase the number of new, affordable rental units. Chappell explained how the ranking system works for establishing priorities. Crissy Canganelli, Executive Director of Shelter House, said she thinks homeless services continue to be a high priority. She said that permanent supportive housing is an area where Iowa City continues to lag behind in the state. She urged support for rapid rehousing services so Iowa City can be more in alignment with the changing HUD requirement for homeless services. She said that also applies to the Domestic Violence Intervention Program. Chappell asked if there's a specific category she thinks should be changed. Canganelli said there is a huge need for rental assistance and/or security deposit assistance. Chappell said rental assistance is a high priority. This does align with the priorities identified in HOUSING AND COMMUNITY DEVELOPMENT COMMISSION OCTOBER 17, 2013 PAGE 3 of 4 the Plan; however agencies must apply and provide the services. Shelter House will consider this possibility. Chappell said that would be a good thing to specifically have an application for Chappell said there were comments that requested domestic violence services to be moved up from medium to high priority. He stated there are many services that the commission members would agree are very needed in the community, but because of services already in place they may not be ranked as high. Hightshoe said there were a number of factors that contribute to the funding decisions such as other funds available, how many clients served, etc. Zimmerman Smith stated was comfortable with the priorities as stated in the Plan. Chappell said they will have a much more detailed discussion when they start working on the upcoming 2016-2020 Plan. No one had any motions to make a change at this point. Update on FY14 Projects — CDBG projects that have not entered a formal agreement with the City of Iowa City Hightshoe explained that it's a Council policy that CDBG recipients have 90 days after the start of the fiscal year to enter a CDBG agreement with the City. She said all of CDBG recipients entered agreements. Monitoring Reports FY14 The Housing Fellowship — CHDO Operating (Persson) Persson went for a visit and a tour. Persson reported on the agency. Dennis told her that she appreciated the funds the Commission had provided for operations, specifically for a much needed staff position. Dennis said she appreciated the fact that Persson came and visited. FY14 DVIP — Aid to Agencies (Persson) Persson said she also visited DVIP and was given a complete tour and a copy of the FY14 Joint Funding Report. She said they are pleased with their new kitchen and flooring. DVIP was appreciative of the operational funds to maintain the shelter and support services. Chappell asked if they identified anything specific that the Aid to Agencies funding is going toward. Hightshoe said it's going toward staff salaries for the shelter. FYI Visiting Nurse Association — Property Acq. (Clamon) Clamon said this was a $200,000 award for land acquisition which was purchased in December 2011. She said then they spent a year fund-raising for the building, construction started in January 2013 and they opened the building in August 2013. She said they occupy about 12,000 square feet of the total 18,000 square feet, and the extra space will be used as rental to help pay off the mortgage. She said the overhead is the same as it was at the previous building. She said they house home health and wellness services. She said they are very happy with the location as there is adequate parking and it's on a bus stop. She said they are collaborating with the College of Nursing for Nurse Practitioners and are staffing a Monday -Friday clinic. She said their goal is to become a destination for primary care. ADJOURNMENT: Persson moved to adjourn. Zimmerman Smith seconded. Motion to adjourn carried 6-0. 7/ x x; x!§§ x x x ( x x\.,. , x x g x x u ) § x x x LUx ! ; x x ! ! / LU §§ x x§ 0;; x x;; x x S x x x x x;!§ x;; x x x x x x x x x;, x § x x x x x\ x x;; x 7 x x x\\ x x x(\ [ x x x§ x x 3 x x§ Ix x x§ x§; x x,; x § x x x x x x x q ;; x XV 0 r* r n to o n v« o r< O Q / ) ) ) ) ) ) ) ) ) w/ « « m « m « « » « » » _ LLI w § § z L § 3 § k 0 q§ t\ 7§ 0 x K o w■« 2 w o o z z w I 8 6\ o z LU ( U) m= LU 0 0 -J LU k \ ) x } § < < ) u w w < LU § 3 z■ o 0 0 0 10=_ ■ m w CITY OF IOWA CITY FY15 ALLOCATIONS TIMELINE Dates subject to Change Dec. 4, 2013 Public notice that CDBG and HOME applications are available Dec. 18, 2013 CDBG/HOME Applicant Workshop, Emma Harvat Hall, City Hall, 4:00 PM Jan. 6, 2014 CDBG/HOME Applicant Workshop Emma Harvat Hall, City Hall, 10:30 AM Jan. 17, 2014 Applications due to City of Iowa City by 12 noon Feb. 20, 2014 HCDC meeting: question/answer discussion with CDBG/HOME applicants. Iowa City Senior Center, 28 S. Linn St., 6:30 PM Feb. 24, 2014 HCDC ranking forms due to City staff` Mar. 6, 2014 HCDC meeting: review of groupings and consensus funding scenario. Possible recommendation to City Council on CDBG/HOME funding awards. Iowa City Library, Meeting Room A, 6:30 PM (CDBG/HOME applicants encouraged to attend, but not mandatory) Mar. 13, 2014 HCDC meeting: recommendation on CDBG/HOME funding awards (if necessary). Iowa City Library, Meeting Room A, 6:30 PM (CDBG/HOME applicants encouraged to attend, but not mandatory) April 1, 2014 HCDC justifications memo due for council packet April 4, 2014 Draft FY15 Annual Action Plan done — 30-day comment period begins April 17, 2014 HCDC meeting: Review FY15 Annual Acton Plan and recommendation to City Council May 6, 2014 Expiration 30-day comment period on the FY15 Annual Action Plan May 6, 2014 City Council: public hearing on the FY15 Annual Action Plan (If needed, joint HCDC/City Council meeting) and resolution -approving the FY15 Annual Action Plan July 1, 2014 Start FY15 projects (If awarded funding, no expenses may be incurred prior to both July 1 AND execution of a CDBG/HOME agreement) 11/13/2013 December 2013 FY15 APPLICANT GUIDE IOWA CITY CDBG AND HOME PROGRAMS This guide outlines requirements for individuals/organizations (applicants) applying for and receiving Community Development Block Grant (CDBG) and/or HOME Investment Partnership (HOME) program funds through the City of Iowa City. The applications for FY15 funding (housing and public facilities) include a number of narratives, statistical and financial questions so please contact staff if you have questions or need technical assistance. HCDC strongly encourages all applicants to attend one of the CDBG/HOME Applicant Workshops. THE APPLICANT WORKSHOPS • • AS FOLLOWS: WEDNESDAY,DECEMBER 18, 2013,I i " • • i i I AM Notes for FY15: 1) First consideration for funding will go to housing (not including CHDO operating expenses) and public facility projects of $50,000 or more. It is anticipated that no more than 10 projects will be funded. 2) Funds are not available for public service eligible activities such as operations or salaries. 3) Funding priorities will be based on the goals and objectives of the 2011-2015 CITY STEPS Plan 4) Applicants must submit all application materials by the application deadline. The Housing and Community Development Commission (HCDC) will not review any materials submitted by the applicant after the deadline unless the Commission specifically requests an item to be submitted for review by all Commission members. 5) The application and the proforma (for rental housing - acquisition or rehabilitation applications) must be substantially complete for HCDC consideration. 6) Please review the City's Strategic Plan (www.icgov.orp/strateoicolan) to determine if your project fits into the identified priorities. If so, please identify in the application. Financial Information for CDBGIHOME Applicants • The U.S. Department of Housing and Urban Development (HUD) is encouraging both grantees (cities, counties and states) and applicants (subrecipients such as yourselves) to maximize private investment. The City requests that applicants leverage private funding, volunteers and in - kind contributions whenever possible and to include this information on your application. Both volunteers and in -kind donations are very important. These contributions are worth points in the ranking sheets and are included in HCDC's evaluation of your application. Copies of the ranking sheets are attached herein. • Applicants can apply for grants and/or loans from CDBGIHOME per the policy. • All applications received by the due date will be evaluated and ranked by HCDC. Rental housing projects must submit the City provided proforma with their application. FY15 Applicant Guide CDBGIHOME Funding Process The following is the proposed timeline for the FY15 CDBG\HOME funding process 1. Applications Due 12 noon — January 17, 2014 2. HCDC Meeting — Question\Answer with Applicants February 20, 2014 3. HCDC Meeting — Review Rankings and Recommendations March 6, 2014 4. HCDC Meeting — Funding Recommendations (if necessary) March 13, 2014 :7-1 :4 A 4114 ILI M:*3:J:[4J 4 Qk 1[61:1:ill I 11 -14:111 W& In FY15 the City of Iowa City is expecting to have available approximately $1,103,000 in federal funds (including FY15 entitlements plus program income) from the U.S. Department of Housing and Urban Development (HUD). Of this figure, Community Development Block Grant (CDBG) funds account for about $671,000. The HOME Investment Partnership program accounts for about $432,000. The focus of the HOME program is for affordable housing activities; homeownership opportunities, rehabilitation or new construction for rental or owner -occupied units and tenant based rent assistance. The City of Iowa City adopted the 2011-2015 Consolidated Plan (a.k.a. CITY STEPS), as the overall guide for allocating CDBG and HOME funds. CITY STEPS has five-year priorities, strategies and goals designed to address the needs of low-income persons for housing, jobs and services in Iowa City. Priorities as outlined in CITY STEPS are attached, Because CITY STEPS is a multi -year plan it is important to structure each annual action plan so that the overall strategies and goals are being met. The City Council will review and approve the FY15 Annual Action Plan before it is submitted to HUD. These goals, and the City's efforts to meet these goals, will be the method HUD will use to measure the City's performance and compliance with the CITY STEPS Plan. The City has approximately $530,000 available for allocation to recipients after Council set -asides have been removed for administration, economic development, owner -occupied housing rehabilitation and aid to agencies. It is the City Council's policy to allocate 15% of the CDBG entitlement to annual operating expenses of human service agencies, as part of the City's Aid to Agencies budget. There is a HUD regulation that caps public service funding to no more than 15% of the City's CDBG entitlement amount plus prior year program income. $100,000 will be directed to the City's Aid to Agencies budget and the City will not be accepting additional public service applications. Of the $530,000 available for allocation, at least $316,000 must be allocated to HOME eligible housing activities. $214,000 is available for public facilities and CDBG eligible housing activities. A requirement of the HOME program states that not less than 15% of the HOME entitlement be reserved for Community Housing Development Organizations (CHDOs). In FY15 this set -aside is to be a minimum of $52,800. Council's policy is to set -aside 15% of the CDBG entitlement to allocate to economic development activities. For profit businesses, providers of technical assistance to businesses or employment training may apply to this fund. There is a separate application process for economic development activities. Please contact community development staff for information about these funds. The FY15 economic development set -aside is approximately $89,000. The funding amounts identified are estimates. The amount available for allocation will be revised upon adoption of the final CDBG and HOME budget by Congress and as program income is received during the current fiscal year. FY15 Applicant Guide PART II. APPLICATION REQUIREMENTS AND CONSIDERATIONS Applicants for these federal funds should evaluate the following HUD guidelines as well as City policies contained in CITY STEPS when considering the types of proposals, funding estimates, and time schedules for achieving their program\project goals. ALL Proposals must address a Low -Moderate Income Benefit �+I7'-ZHi11TiT'fl The National Objective of the CDBG Program is the "development of viable urban communities by providing decent housing and suitable living environments, and expanding economic opportunities, principally for persons of low and moderate income." At least 51 % of the program beneficiaries (persons or households) must have incomes at or below 80% of the local median income category. (Where assistance is provided directly to individual households (e.g. housing rehab), all of the households must have incomes below 80% of the median household income). Applicants must document that the National Objective is being met. While the CDBG program allows self -certification of income, the household must certify their income with their signature. HUD also requires that a certain percentage of the participants provide source documentation such as pay stubs or a Social Security statement to further verify the household's income. This source documentation must be kept in the client's file and is subject to monitoring when City or HUD staff review the client files. The City has set this percentage at 5% of the programs beneficiaries, b. HOME Funds The national objective of the HOME program is the provision of safe and decent affordable housing. All activities undertaken with HOME funds must benefit persons or households below 80% of median family income. An additional income restriction is added for rental housing projects funded by HOME. For these rental projects, 90% of the HOME assisted units must be targeted to persons and/or households below 60% of the median family income. Following are the median income limits established for Iowa City released December 11, 2012 Persons per household 30% 60% 80% 1 person $16,050 $32,100 $42,750 2 persons $18,350 $36,660 $48,850 3 persons $20,650 $41,220 $54,950 4 persons $22,900 $45,780 $61,050 5 persons $24,750 $49,500 $65,950 6 persons $26,600 $53,160 $70,850 7 persons $28,400 $56,820 $75,750 8 persons $30,250 $60,480 $80,600 The CDBG statute pertaining to the low -moderate income national objective specifies criteria for deter- mining low- and moderate -income benefit. FY15 Applicant Guide 1. The activity must be carried out in an area or neighborhood consisting predominantly of low - moderate income persons, or the activity must involve facilities or services designed for use predominantly by low -moderate income persons. Demographic information is available at the Planning Department. In some instances, applicants may need to conduct a survey of the potential beneficiaries to determine income eligibility. 2. Housing that is being improved, as part of a project must be occupied predominantly by low - moderate income persons. 3. Job creation or retention as an activity must involve employment of predominantly low and moderate -income persons. ELIGIBLE ACTIVITIES a. Activities that can be carried out with CDBG funds include, but are not limited to, the following: • Acquiring real property, demolishing structures and clearing property, and relocation assistance for residents of property being demolished. + Rehabilitation or preservation of residential and nonresidential structures, including weatherization, painting, accessibility improvements, emergency repairs and comprehensive rehabilitation. • Construction of public facilities and improvements, such as water and sewer facilities, infrastructure repairs and installation of curb ramps, construction of neighborhood centers and installation of accessible playground equipment. b. Activities that can be carried out with HOME funds include the following: • Acquisition of real property (including Homeownership Assistance), payment of "soft" costs associated with a project, demolition and clearing property, site and infrastructure improve- ments, and relocation assistance for persons being displaced by a HOME activity. • Rehabilitation or preservation of residential structures (comprehensive rehabilitation only). • Tenant Based Rental Assistance (TBRA) for a period of up to 24 months. • New construction of affordable housing units (rental or owner -occupied). • Operational expenses and Capacity Building for Community Housing Development Organi- zations (CHDOs) within the limit of 5% of Iowa City's HOME allocation. INELIGIBLE ACTIVITIES The following types of activities that are ineligible include, but are not limited to, the following: • Buildings for general conduct of government and expenses required to conduct the regular responsibilities of local government, e.g. street maintenance, public buildings for government. • Political, religious and lobbying activities, income payments, such as rent assistance and mortgage payments. HOME ONLY: tenant based rent assistance is an allowable activity. • CDBG ONLY: New housing construction, except for residential facilities providing shelter for FY15 Applicant Guide 4 persons with special needs (homeless shelters, convalescent homes, halfway houses, and group homes). • Purchase of construction equipment. NOTE: The purchase or lease of furnishings, equipment, or other personal property (such as vehicles) needed for an eligible public service is eligible only under the CDBG public service category; however, the City will not be considering public service activities this year. Additional requirements and CDBG award limitations may apply, please contact community development staff to discuss. Performance schedules will be outlined with the goal of completing the project within the City's fiscal year (July 1-June 30), Disbursements can be made AFTER the contract has been formalized. Expenses incurred before July 1, 2015 AND before a contract has been entered may not be reimbursable and may jeopardize all the CDBWHOME funds awarded to the project. Disbursements can be made upon receipt of 1) invoices for labor, materials and services rendered, and 2) signed lien waivers (as appropriate) covering all amounts to be paid. In some instances, pre -agreement costs may be reimbursed to applicants; however, Community Development staff must be contacted prior to making any pre -agreement disbursements to verify if the cost may be reimbursed. In case of minor cost overruns or requests for additional funding the City Manager and staff may approve a contract amendment that is non -substantial. In the case of substantial changes (as defined in the Citizen Participation Plan) the Housing and Community Development Commission and City Council must approve the change and an amended agreement is required. In estimating the amount of the proposal or the project budget, applicants should try to obtain documentation for the costs and consider the following expenses: • Appraisals, legal fees, title opinions and surveying costs for property acquisition projects. Construction estimates should be realistic. Funds remaining after the proposed work as identified in the CDBG agreement is completed may revert back to the CDBG line of credit. Other project costs such as compliance with HUD regulations (audits, labor standards, environmental studies, fair housing, etc.) which are listed in Part ill of this guide should also be included. Applicants should become familiar with that section of the Guide prior to submitting an application. NOTE: Rental housing projects, regardless of funding sources, will be required to complete and submit the proforma attached to the FY15 application form. FY15 Applicant Guide HOME PROJECTS ONLY: HOME funds are required to be matched at the rate of one match dollar for each four HOME dollars or 25% of the HOME funds being requested. The City has made a commitment to match local HOME dollars, however, we also expect applicants for local HOME funds to contribute to meeting this matching contribution (see HOME regulations for eligible forms of match). ** Applicants may wish to meet with staff before idling out the application to discuss the project budget, potential costs and the estimates for project expenses. All CDBG\HOME contracts include requirements imposed by various Federal -sponsoring agencies. These include procurement standards for labor, materials, supplies and services not only related to the project but also to the applicant's operation. Procurement standards and subcontracting requirements are set forth in OMB Circular A-110 and 24 CFR Part 84 (for non-profit organizations). The following list briefly describes the main points in contracting for services and purchasing supplies and materials. 2. Affirmative efforts shall be made to utilize small and minority -owned businesses or sources of supplies and services. Conflict of Interest rules will also apply. 3. Construction contracts in excess of $2,000 shall comply with the Fair Labor Standards Acts, Specifically, 1) The Davis -Bacon Act which requires contractors to pay wages to laborers and mechanics at a rate not less than the minimum wages specified in a wage determination made by the Secretary of Labor, 2) Copeland Anti -Kick Back Act which prohibits employers from inducing employees to give up any part of the compensation to which they are otherwise entitled, and 3) The Contract Work Hours and Safety Standards Act which requires contractors to compute wages on the basis of a standard work week of 40 hours. Work in excess of the standard workweek shall be permissible if the worker is compensated at a rate of 1'l: times the basic rate of pay for all hours worked in excess of 40 hours in the workweek. No worker shall be required to work in unsanitary, dangerous or hazardous surroundings. 4. Contracts over $10,000 shall contain requirements relating to Equal Employment Opportunity, 5. Provisions for termination shall also be included in all contracts. 6. Records should be kept for all procurements. Construction projects for more than $100,000 must utilize the competitive sealed bids (formal advertisement) method of procurement. Procurement by small purchase procedures shall be utilized for projects $100,000 or less. Price or rate quotations shall be obtained from an adequate number of qualified sources under this method. 7. Contracts in excess of $25,000 shall contain provisions and conditions that allow for administrative, contractual or legal remedies in instances in which contractors violate or breach contract terms. 8. Contracts in excess of $100,000 shall meet bonding and Section 3 requirements. Minimum bond requirements include: bid guarantee equal to 5% of bid price, performance bond for 100% of contract price and payment bond for 100% of contract price. FY15 Applicant Guide 9. Provisions regarding federal regulations on Non-discrimination, Equal Employment, Affirmative Marketing and Fair Housing. 10. Acquisition, Displacement and Relocation are also contained in the Agreement. 11. Lead Based Paint regulations regarding interim controls and abatement may also apply. PART IV. FINANCIAL MANAGEMENT Standards for financial management and record keeping are provided in OMB Circulars A-110 and A- 122 and 24 CFR Part 84. Local accountants and agency directors experienced with federal requirements may be helpful resources. • Each recipient shall have a financial management system that provides effective control over and accountability for all funds, property, and other assets, must identify the source and application of funds for federally -sponsored activities, and permit the accurate, complete, and timely disclosure of financial results in accordance with the reporting requirements of the City and HUD. • A separate ledger for the CDBG and/or HOME account is strongly recommended. • Appropriate time distribution records must be kept for employees paid with CDBG funds in addition to other funds. • All project -related expenditures must be supported by third party documentation (invoices, contracts, and purchase orders). Lien waivers are required from all contractors and subcontractors. • Reductions in project costs or increases in the commitment of other funding, if any, shall be brought to the immediate attention of staff. The impacts of these changes must be discussed with staff and appropriate reductions in CDBG and/or HOME funds may be made on a pro -rated, case -by -case basis. PART V. REPORTING AND MONITORING Community Development staff will monitor all aspects of the project beginning with pre -agreement activities, goal setting to project closeout. Any project changes must be approved by the City. All notices and reports should be directed to: Community Development Department 410 East Washington Street Iowa City, Iowa 52240. Periodically, Community Development staff and HCDC members will conduct monitoring visits to review project progress, financial management, construction contracts, time records related to the project as well as client statistics. Staff will attempt to give reasonable notice prior to the site visit. In most cases, a financial audit of the project expenditures will be required. Qualified individuals who are sufficiently independent of the agency and can produce unbiased opinions and conclusions should conduct these audits. Audit reports should be submitted within six months of project completion and final disbursement of funds. For organizations that expect to receive more than $500,000 in federal assistance from all sources are required to have an audit covering the financial activities of the organization as well as the project FY15 Applicant Guide 7 disbursements will be required as set forth in OMB Circular A-133 For CDBG projects, all records relating to the project should be kept at least four years after the submission of the Consolidated Annual Performance and Evaluation Report (CAPER) in which the activity is reported as complete. The CDBG Agreement should be retained until the end of the compliance period. For HOME projects, all records shall be maintained as required in 92.508 Recordkeeping depending on the type of project (rental, homeownership, or tenant -based rental assistance). The City of Iowa City requires quarterly reports and has a standardized reporting form. For rental and homeownership projects, the applicant must complete project close-out forms and submit to the City upon project completion. The period of affordability does not begin until the City has been notified and the data entered into HUD's information and management system (IDIS). The compliance period will vary depending upon the regulatory requirements of the CDBG and/or HOME program and the information contained within the CDBG\HOME application. During the compliance period, Community Development staff will request records relating to the stated purpose of the project to see if goals have been carried out, to review the low and moderate income benefit requirements as established by HUD, and to monitor the financial status of the organization. PART VI. HOUSING RELATED ITEMS Site Location. One of the City's goals is to encourage the distribution of housing and residential facilities (e.g. permanent housing — rental and homeownership, transitional housing, homeless shelters, and special needs housing) throughout Iowa City. See the attached Affordable Housing Location Model to view where City assisted rental housing may be located. The Location Model is also available at www.icgov.org/actionplan. Additional Information Requirements. Before an applicant may enter an agreement with the City, the applicant must submit updated information such as, but not limited to, the project schedule, sources and uses statement, construction budget (if applicable), and proforma (if applicable). All other funding sources must be identified and verification submitted to the City to complete a subsidy layering analysis when multiple public funding sources are utilized. Appraised Value at Project Completion. Each housing project, except minor home repairs, funded with CDBG and/or HOME funds must have an appraised value at project completion that demonstrates adequate equity to secure any liens. FY15 Applicant Guide 8 CITYOI JMYA CITY - Funding unavailable for assisted rental housing (new construction & acquisition)` -- F Funding available for assisted rental housing " Restriction does not apply to assisted rental housing protects - for elderly and persons with disabilities or rehabilitation of r existing rental properties y.' 7 ( R w A.r r2sFF s' r I�� �__ ��prc yFFP �. .�low o Document Path: S:\Iowa City GIS`,PCD_Maps\_Comm_DevlLocation Crite ria\Data Analysis_10_18_13.mxd FY15 Applicant Guide 9 Summary of High Priority Needs (2011-2016 CITY STEPS) For the five-year period of 2011 through 2015, the City has identified the following needs as high priorities: 0 Housina Needs o Non -student renter households up to 50% of MFI: Small families, specifically renters, experience the greatest degree of housing problems. Existing affordable housing demand exceeds projected demand, and the need for rental units far outpaces the need for owner units. With the cost of home ownership outpacing real median household income, providing assistance to rental households would be more cost-effective at this time. And, even with the rising demand for affordable rental housing units, 48 units originally constructed with Low Income Housing Tax Credit financing were converted to market -rate apartments (Villa Garden Apts.). This category would also include SRO rental units. o Persons and families at -risk for homelessness: With more "new homeless" being created during the recession, it is critical that efforts be made to assist them in maintaining their current housing, and not increase the number of homeless in Iowa City. Rental assistance, including rent and utility deposits, achieves this objective and is far more cost-effective than transitioning out of homelessness. o Owner -occupied housing units: Elderly and small family owner households experience very high degree of housing problems, especially cost burden. Weatherization, emergency rehab and rehab activities help to decrease monthly utility costs and preserve and maintain the City's affordable owner housing stock. In addition, physical improvements including handicap accessibility features that may assist elderly owners to age -in -place is a high priority. . Community Development Needs Public service activities that focus on crime prevention and awareness, child care, youth services, life skills, financial literacy, substance abuse services, mental health services, employment training and transportation are high priorities. As a result of the recession, there are many more households at -risk for becoming homeless due to job loss, etc. Assisting these families with day care, life skills, etc. to maintain their job and housing will be a priority. o Public facilities, specifically the structural facilities that house the public service providers listed above. In addition, child care facilities that are affordable to LMI households or accept Title 20 funding would be a high priority. Investing in the physical facilities used by non-profit organizations would prolong the life of their facilities and enable the agencies to continue their missions. Park and recreational facilities, flood prevention and mitigation strategies in low income neighborhoods are also high priorities, o Economic development activities, specifically employment training and micro - enterprise loan financing. FY1 5 Applicant Guide 10 Homeless Needs o Advocate human services coordination. o Pursue a single application for service system entry. o Pursue the formation of a local computerized system that connect clients with services, serves as a database, and provides inter -agency referrals. o Support continued funding of Johnson County Council of Governments (JCCOG) Human Services Coordinator. o Support the Local Homeless Coordinating Board (LHCB). o Increase understanding of issues surrounding Johnson County homelessness. o Conduct a survey to determine community attitudes surrounding affordable housing and homeless organizations and participants. o Expand/Rehabilitate Emergency Shelter. o Improve and maintain existing shelter facilities. o Support expansion or addition of facilities to meet increased demand. o Expand staff within existing system to provide improved service. o Expand available services such as social/case worker availability, facilities, childcare opportunities, improved public and private transportation access, showers. o Supported Training and Access to Resources (STAR) program continuation. o Improve transitional housing programs for families. a Continue to develop scattered site, transitional housing programs requiring participation in supportive services. o Provide transitional housing for single individuals. o Continue to develop Single Room Occupancy (SRO) type housing for persons living alone with access to supportive services. o Continue support of transitional housing for unaccompanied youth. o Provide special needs transitional housing. o Continue to support the development of transitional housing for persons with mental illness. o Provide services to support special needs populations in non -facility based care environments (i.e. Compeer, Buddy System, Coaches). Prevention and Outreach Activities o Assist low-income households in maintaining and retaining their existing housing. o Establish/improve emergency rent, mortgage and utility assistance. o Expand in -home support systems such as: living skills training; check in/on service; "buddy system" supports/mentor program. o Increase accessibility to physical/mental health care. o Facilitate the development of countywide housing rehab programs. FY15 Applicant Guide 11 Homelessness Prevention During the five years covered by the CP, the City will apply CDBG and HOME funding to activities that will directly address the prevention of homelessness. Many of the activities undertaken by human service organizations (funded by CDBG, Aid to Agencies are other sources) are designed to prevent homelessness. Public facilities funding is allocated to several service providers whose mission is to assist persons who are homeless or providing services to prevent homelessness. Non -Homeless Special Needs The non -homeless special needs populations in Iowa City have a wide range of service needs including transitional housing, supportive housing, counseling, case management, transportation to health care facilities and employment, and more. Data and information used to determine priority supportive housing and supportive service needs of the non -homeless special needs populations in the City were derived from responses to surveys distributed to organizations that serve these special needs populations. In addition, information was also retrieved from interviews and focus group sessions with area organizations during the planning process. Several priorities identified were common across the various subcategories of special needs populations. For example, one such priority need identified was more affordable housing, especially for families below 30% MR. Another need recognized was supportive housing facilities with adequate case management components. Access to health care and employment opportunities was also a common priority for all special needs populations. These populations need access to dental appointments, doctor appointments, employment centers, and job training and placement services. In regard to the elderly and frail elderly populations, services such as benefits counseling and care coordination were identified as priority needs. The appendix table "Non -Homeless Special Needs" provides quantitative estimates for housing and services necessary to serve each of the City's various special needs subpopulations. FY15 Applicant Guide 12 2 Son p-j U V L± U l,}u uV u sseiPPV ol surNort® � W O J ':. x x= z z J Z .. J J. 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These circumstances may be due to unforeseen events (e.g. unfunded applications for other financing). HCDC recognizes the need to utilize CDBG, HOME and other funding as effectively and efficiently as possible to meet the needs of low -moderate income household for housing, jobs and services within Iowa City. To assist HCDC in evaluating a project's status and ability to proceed the following policy is hereby adopted to begin with Fiscal Year'04 projects beginning July 1, 2003: All CDBG and HOME projects Will have entered into a formal agreement with the City of Iowa City for the utilization of federal funds by September 30 each year. Should a recipient fail to meet this threshold, the project will be reviewed by HCDC to evaluate if extenuating circumstances exist if extenuating circumstances exist and it is anticipated the project will proceed, a new timeline will be established for the completion of the project, if circumstances do not warrant an extension of time, HCDC may recommend the recapture and re -use of the funds to the City Council. All CDBG projects (except applicants for LIHTCs) will have expended a minimum of fifty percent (50%) of the assistance provided for the proposed project by March 15 each year. This provides the recipient with approximately 255 days following the start of the fiscal year to reach this threshold for CDBG projects. All HOME projects will expend their funds on a timely basis per the applicable HOME regulation. Should a recipient fail to meet these thresholds, all unexpended CDBG/HOME funding will be recaptured by the City of Iowa City and recommendations be made by the HCDC for re -use of the funds or HCDC may allow the recipient to retain the funds for the previously approved project. 3. If housing projects are applying for other funds through various state or federal agencies, the recipient must apply for those funds in the first available application period offered. Should a recipient fail to meet this application threshold, all CDBG/HOME funding will be recaptured by the City of Iowa City and recommendations be made by the HCDC for re -use of the funds, 4. Should a recipient be unsuccessful in obtaining the funds listed in the application in the application round immediately following the allocation of local CDBG\HOME funds, and the project will not be able to proceed without the aforementioned funds, all CDBG/HOME funds will be recaptured by the City of Iowa City and recommendations be made by the HCDC for re -use of the funds or HCDC may allow the recipient to retain the funds for the previously approved project. If the project is unsuccessful in obtaining the required funds listed in the application after two consecutive funding rounds following the allocation of local CDBG/HOME funds, the City of Iowa City will recapture all CDBG/HOME funds. FY1 5 Applicant Guide 16 Resolution 10-393, Approved 9/7/2010 Economic Development Economic development projects making application to the CDBG Economic Development Fund will be reviewed by the Council Economic Development Committee. The Council Economic Development Committee will make a recommendation to the City Council for each project proposed for funding. Said recommendation shall include the amount of CDBG assistance to be allocated and the terms of investment. Typically, for -profit business projects will receive low -interest loans; whereas, non -profits may be recommended for forgivable loans or grants. Decisions regarding investment terms for economic development projects will be made based on the nature of the project including, but not limited to, the risk, potential for growth, the number of and quality of jobs created for low -moderate income persons, the ability to repay a loan and the amount of other funding leveraged. Housing Rental Housing. Except as noted below, the interest rate for rental housing activities will be zero percent (0%) for non-profit owned projects and prime rate (determined at the time the CDBG\HOME agreement is executed by the City) minus two points for for -profit owned projects with an amortization period up to thirty (30) years or the period of affordability, whichever is less. Homeownership. Each year Iowa City adopts resale/recapture provisions that apply to all HOME assisted homebuyer projects. The recapture/resale provisions shall be the same for both CDBG and HOME assisted homebuyer projects. These provisions are set forth in the Annual Action Plan for the year the funds were allocated to the SubrecipientlRecipient. Tenant Based Rental Assistance (TBRA). All HOME funds provided for TBRA will be in the form of a grant. Exceptions. The City may grant a different interest rate and/or a different repayment option based on the nature of the project including, but not limited to, the revenue generated, the ability to repay a loan, the type of housing provided, the beneficiaries, the amount of other funding leveraged and the location of the site. Public Facilities The City of Iowa City, as the recipient of Community Development Block Grant (CDBG) funds, utilizes these funds for "public facilities" projects as defined in 24 CFR 570.201 (c) that are completed by the City and\or subrecipents. The following policy applies to CDBG assistance provided to non -governmental subrecipients ("governmental' includes only jurisdictions with taxing authority as provided for in Iowa Code). Projects that receive an allocation by the City of Iowa City will receive an earned grant, as defined herein, which will be secured by a mortgage or other comparable security instrument. The compliance term of the earned grant will be determined by the formula also provided herein. At the end of the applicable compliance term the lien or other security instrument will be released by the City. If the real property is leased, the lease shall be for a period that matches or exceeds the compliance term of the earned grant. Earned Grant: Alien against the real property being assisted, or other comparable security, which is repaid only upon transfer of title, rental of the property, or termination of services or occupancy as outlined in the applicable CDBG Agreement if the subrecipient fully satisfies the terms outlined in the applicable CDBG Agreement the mortgage against the property, or other security instrument, will be released by the City following the completion of the compliance period that begins on the date of execution of the mortgage or security instrument. FY15 Applicant Guide 17 Earned Grant Formula: The total amount of CDBG assistance allocated to a subrecipient in any one City fiscal year fora public facility" project divided by $10, 000 equals the number of CDBG compliance years for the Earned Grant. (.For example: $20,000 in CDBG assistance divided by $10,000 would equal a compliance term of 2 years or 24 months). If the Earned Grant Formula results in a compliance term of less than one year (12 months) the minimum compliance term shall be one year (12 months). The maximum compliance term for any CDBG assistance shall be no more than twenty (20) years. FY15 Applicant Guide 18 EVALUATION CRITERIA HOUSING PROJECTS This evaluation sheet will be used as a guide to assist the Housing and Community Development Commission (HCDC) in the FY15 allocation process. HCDC members will rank each project according to the questions\criteria shown below. However, the scores will not be the sole determinant of a funding decision. I. NeedlPriority (maximum 20 points) Meets identified need in CITY STEPS? Yes No If yes: 1. What priority level in CITY STEPS? (High=15, Medium=7, Low=2 points) 2. How well has the applicant documented the ability of the project to meet this need? (0-5 points) SUB -TOTAL II. Leveraging ResourceslBudget (maximum 25 points) Project budget is justified? (Costs are documentedlreasonable) Yes _ No If yes: 1. How well does the organization and/or project leverage human resources or utilize community partnerships? [Volunteers, collaboration, etc.] (0-10 points) 2. Does the project leverage private financial resources? [Including in -kind] (0-10 points) 0 to 25% Private Funds (0-1 point) 26 to 50% Private Funds (2-4 points) 51 % to 75% Private Funds (5-7 points) 76% to 99% Private Funds (8-10 points) 3. Has applicant documented adequate efforts to secure other private or public funding? (0-5 points) SUB -TOTAL III. FeasibilitylNeed for Subsidy (maximum 20 points) 1. How well has applicant demonstrated the requested level of public subsidy is necessary? [Private\other funds not available?] (0-8 points) 2. Does the project schedule adequately demonstrate the project will be completed within the required time period? (0-4 points) 3. How well does the proposed budget establish the project is viable without further subsidy? (0-8 points) SUB -TOTAL IV. Impact\Benefit (maximum 30 points) 1. What primary level of low- to median -income persons are targeted? (0-30%=10, 31-50%=6, 51-60%=4 points, 61-80%=1) 2. How innovative of a solution to the problem does the project represent? (0-10 points) 3. Does project pay full property taxes (5) or provide payment in lieu of taxes (3)? (0-5 points) 4. Does the project propose to utilize a site that is appropriate based upon City policies and/or community interests? (0-5 points) SUB -TOTAL V. CapacitylHistory (maximum 5 points) Applicant can maintain regulatory compliance throughout the project, including the affordability period? Yes No If yes: 1. Has applicant demonstrated strong financial skills or arrangements for necessary financial management and established the administrative capacity to successfully complete this project? (0-5 points) SUB -TOTAL PROJECT NAME: PROPOSED ALLOCATION: (Maximum amount of points — 100, Projects under 60 points receive $0) GRAND TOTAL FY15 Applicant Guide 19 EVALUATION CRITERIA PUBLIC FACILITY, PLANNING & OTHER PROJECTS This evaluation sheet will be used as a guide to assist the Housing and Community Development Commission (HCDC) in the FYI allocation process. HCDC members will evaluate each project according to the questions\criteria shown below. However, the scores will not be the sole determinant of a funding decision. I. NeedlPriority (maximum 20 Points) Meets identified need in CITY STEPS? Yes No If yes: 1. What priority level in CITY STEPS? (High=15, Medium=7, Low=2) 2. How well has applicant documented the ability of the project to meet this need? (0-5 points) It. Leveraging Resources/Budget (maximum 25 Points) Project budget is justified? (Costs are documented\reasonable) Yes No If yes: 1. How well does the organization and/or project leverage human resources or utilize community partnerships? [Volunteers, collaboration, etc.] (0-10 points) 2. Does the project leverage private financial resources? [including in kind] (0-10 points) 0 to 25% Private Funds (0-1 point) 26% to 50% Private Funds (2-4 points) 51% to 75% Private Funds (5-7 points) 76% to 99% Private Funds (8-10 points) 3. Has applicant documented adequate efforts to secure other private or public funding? (0-5 points) III. Feasibility/Need for Subsidy (maximum 20 points) 1. How well has applicant demonstrated the requested level of public subsidy is necessary? [Private\other funds not available?] (0-8 points) 2. Does the project schedule adequately demonstrate the project will be completed within the required time period? (0-4 points) 3. How well does the proposed budget establish the project is viable without further subsidy? (0-8 points) IV. Impact\Benefit (maximum 30 points) Does the project help persons gain self-sufficiency? Yes _ No If yes: 1. What primarily level of low- to median -income persons are targeted? (0-30%=10, 31-50%=6, 51-60%=4 points, 61-80%=1) 2. How innovative of a solution to the problem does the project represent? (0-10 points) 3. Does the project (or related facility) pay full property taxes (5) or provide payment in lieu of taxes (3)? (0-5 points) 4. Is the project likely to produce a demonstrable benefit to the community in comparison to its cost? (0-5 points) V. CapacitytHlstorV (maximum 5 points) Applicant can maintain regulatory compliance? Yes No If yes: 1. Has applicant demonstrated strong financial skills or arrangements for necessary financial management and established the administrative capacity to successfully complete this project? (0-5 points) PROJECT NAME: GRAND TOTAL PROPOSED ALLOCATION: $ (Maximum amount of points — 100) FY15 Applicant Guide 20 � r � • ,wr CITY OF IOWA CITY Housing Application for FY2015 CDBG/HOME funds ■ Complete Application. Should you have any questions while completing the application contact Community Development staff at 319.356.5230 or by email at tracy-hightshoe@iowa-city.org. ■ Submit the original application to the City of Iowa City, Planning and Community Development Department. The application may not be longer than 13 pages (17 pages including the 20-year proforma), must be typed (10 point font or larger), and must be single sided. ■ Rental housing projects (rehabilitation or new construction) MUST complete and submit the proforma (excel format) provided by the City with this application. ■ Send your application by certified or registered mail; overnight delivery service e.g., Federal Express; deliver in person and have the application date/time stamped by a Planning & Community Development representative OR email the completed application to both tracy-hightshoe@iowa-city.org and steve-Iong@iowa-city.org. Emailed applications will receive a confirmation email from City staff before the application deadline. ■ Please remember that only one project proposal may be submitted on each application. Please use separate applications for each project proposal. Housing Project Name: Type of Project (check one): 0 Homeownership 0 Rental 0 Tenant Based Rent Asst. 0 Rehabilitation (Rental and Rental Rehabilitation projects require the completion of rental housing pro forma) 1. Lead Applicant Name: Signature: Applicant Address: Contact Person: Title: Phone Number: Fax Number: E-mail Address: DUNS Number: 2. Secondary Applicant (if applicable): Signature: Applicant Address: Contact Person: Title: Phone Number: Fax Number: E-mail Address: 3. Type of Applicant (check one): 0 Community Housing Development Organization 0 Private for -profit, individual or partnership applicant 4. Amount of HOME/CDBG Funds Requested: $ 0 Private non-profit organization 0 Public Organization 5. Did you attend the Applicant Workshop? 0 NO ® YES - Please indicate date attended: 0 12/18/13 or 0 1/6/14 Housing 1 FY15 CDBG/HOME Funding Request 6. Provide a brief description of the proposed project & complete the table below. Total Number of Units Proposed: Type of Units: Number of Units: Single Room Occupancy Efficiency 1 - Bedroom 2 - Bedroom 3 - Bedroom 4+ Bedrooms 7a. Based on the City of Iowa City HOME Market ,Analysis Policy for New Rental Construction, Rental Rehab. & Acquisition of Existing Homes (rental), or New Owner -Occupied Home Construction & Acquisition of Existing Homes (owner -occupied), please identify the relevant market factors that will assist the City in verifying the demand for the proposed housing. The HOME Market Analysis Policy may be found at www.icqov.org/actionplan. (If the project is large or complicated, the City may require a Market Analysis to support the project before entering a legally binding agreement for funds. This policy is not applicable to projects requesting funds for tenant based rental assistance, homeowner rehabilitation, downpayment assistance and CHDO operating expenses.) 7b. How will this project meet the needs identified in the 2011-2015 CITY STEPS (www.icgov.orglactionplan) 7c. Will this project address the established priorities in the City's Strategic Plan? Please identify the priority(s). (www.icqov.org/strategici)lan) 8. Please specify the one most applicable priority need and priority need level, as shown in the 2011-2015 CITY STEPS Plan. Priority Need Priority Need Level (High, Medium or Low) Housing 2 FY15 CDBG/HOME Funding Request 9. Please provide the requested loan terms and affordability period: Loan Affordability Principal Interest Amortization Period Yearly Amount Rate (Years) (Years) Payment Terms Requested* *Financing terms will be based on project feasibility and the ability to repay the loan. Terms approved by City Council may be different than what is requested. 10a. Please complete the table below showing the types and amounts of funding being requested for the proposed project. Please check the appropriate box if the funding source is committed. If not committed, please indicate when the applicant will apply for funds in Question #15, Project Timetable. Funding Source & Type of Funding Interest Funds: Amount Rate Amortization Term Committed? - - - OYes ONo Iowa City CDBG or HOME $ Funding (public) State of Iowa HOME or $ OYes ONo CDBG (public) IFA — Low Income Housing $ OYes ONo Tax Credits (public) Bank Loan (private) $ $ OYes ONo Applicant Contribution of OYes ONo Equity (private) Other Public Resources (please list) $ OYes ONo Other Private Resources (please list) $ OYes ONo TOTAL $ Housing 3 FY15 CDBG/HOME Funding Request 10b. Please provide the uses of funds for the project. Uses of Funds Amount Acquisition: Building Acquisition $ Land Acquisition $ Site Improvements $ Construction $ Professional Fees Construction Finance Permanent Finance Developer Fee Reserves Other (please specify): $ $ $ $ $ $ TOTAL (Must equal TOTAL in 10a.) $ Amount of Private Funds $ (a) Amount of Public Funds $ (b) Total Project Funding $ (c) a + b Number of bedrooms (d) Total Cost Per Unit $ (e) c _ # Units loc. What percentage of the proposed budget will be made up of private funds? % 11. If volunteers are used please describe how these volunteers are utilized for the proposed activity and estimate the amount of volunteer time and value dedicated to the identified tasks. Unskilled labor Skilled labor ( ) Skilled labor ( ) Skilled labor ( ) hours x $10 per hour hours x $_ per hour = hours x $_ per hour = hours x $_ per hour = Total 12. Please identify any identity of interest (I0I) relationships with the applicant and/or project owner, i.e. General Partner has a financial interest in the construction company, etc. Housing 4 FY15 CDBG/HOME Funding Request 13. Describe what efforts have been taken to secure private or other public funding. 14. Program regulations require a 25% match for HOME funding. Describe how your organization or the proposed project will help the City of Iowa City meet this match requirement for local HOME funds. Local HOME funds requested: x .25 = $ Local Match 15. Briefly outline the proposed timetable for the commitment and expenditure of the funding being requested (include other project factors such as rezoning, construction schedule, or application(s) for other funding). If applicant plans to apply for funds not committed to the project yet, include the anticipated date for application. Please (dote: If funded, this schedule will be used for any project agreement for the use of CDBG\HOME funding. Date: I Description of Activity: July 1, 2014 I Beginning of City Fiscal Year and Project Start Date 16. Briefly describe the project goals for providing or assisting in the preservation or expansion of affordable housing in Iowa City, and how the project will benefit the targeted income group (e.g. goal of providing rental housing to lower income persons without use of Section 8 rental assistance or level of subsidized rent compared to market rates). 17. To help promote the efficient use of federal, state and local funding please describe how the project will maintain long-term (in excess of CDBG\HOME program requirements) or permanent affordability; and, show how the project will provide for affordable housing at rental rates or purchase price for owner -occupied housing units lower than those in the existing market. Housing 5 FY15 CDBG/HOME Funding Request 18. Explain why this project needs and is worthy of the requested public subsidy. 19. If funding is granted for this project, what steps are in place to decrease the likelihood it will require further subsidy in the future? 20. If partial funds are awarded, will the project/program continue? ® Yes If yes, at what level? ® No Reminder: Rental housing (including rental rehabilitation) projects MUST complete and submit the pro forma (excel format) provided by the City with this application. Rental housing applications submitted without the Cityrs pro forma will not be considered. 21. An objective of the City of Iowa City Comprehensive Plan is to promote a diversity of housing types and mix of all income levels. Please describe the target population this project is to serve and how the project will promote diversity within the neighborhood. 22. Identify the location of the proposed project. 23. Also, please indicate the number of persons or households that will be served by the proposed project by income category. (Please !Vote: If this application is funded, the information in this table will be used as income targeting for the C®BG\HOME Agreement). Number between 0 - 30% median income Number between 31 — 50% median income Number between 51 — 60% median income Number between 61 - 80% median income Number over 80% median income Total Percent LMI households (a) households (b) households (c) households (d) households (e) households (f) (atbtc+d) = f Housing 6 FY15 CDBG/HOME Funding Request 24. Does the proposed project pay full property taxes? ® Yes ® No If YES, what is the estimated value of taxes generated from this Project? $ If NO, does the proposed project make a Payment In Lieu Of Taxes or pay at a reduced rate? OYes ®No If yes, what is the percent of full taxes paid? %and amount paid is $ 25. Does your project represent an innovative solution to meet the specific need it is intended to satisfy? If so, please explain. 26. Please list amount of CDBG and/or HOME funds received within the last four City fiscal years and the status of the project(s) undertaken. (City fiscal year July 1 to June 30) Fiscal Year Funds Recv'd FY11 (July 2010 - June 2011) Budgeted Amount Amount Expended Date All Units (as of 12/31/13) Completed $ $ FY12 (July 2011 - June 2012) $ $ FY13 (July 2012 - June 2013) $ $ FY14 (July 2013 - June 2014)* $ $ * Six months remaining in FY14 at time of this application. 27. Is the applicant (including partners, co -applicants, etc.) currently in compliance with all federal, state and local laws, rules and regulations, including any CDBG and/or HOME funded projects? ® Yes ® No If "NO" or a matter is currently in litigation please provide the name of the case and explain the basis for the case. 28. Please provide a narrative of the education and experience of the key staff who will be implementing the development project. Staff does not include volunteers, board members and consultants. If utilized, please identify what role a consultant will play in the development of this project. 29. Please describe your organization's structure, officers and staff, as it relates to the overhead cost for this project. 30. Provide a summary of your organization's portfolio. Include how many rental units you own/manage, how many homes you have built/rehabilitated/sold and what projects are in the pipeline. Housing 7 FY15 CDBG/HOME Funding Request PROFORNIA SPREAD SHEET Instructions for Completing This Attachment The Housing Application, as in the past, requires the developers of rental housing projects to complete and submit a proforma for the project being proposed. The purpose of this proforma is to help the Housing and Community Development Commission (HCDC) and staff to make informed decisions on the allocation of local HOME Investment Partnership and/or Community Development Block Grant funding. All applicants for rental housing (including rehabilitation projects) are required to complete the attached proforma. This form will provide HCDC with the needed information in a format that is uniform among all applicants. The following are instructions for completing this form and some basic `rules of thumb" for your consideration. This form allows for up to 20 years of information. If you have any questions about the form or need technical assistance please call Community Development staff at 356-5230. ***Fields shown in "erev" are for number cntry when using the excel spreadsheet*** Revenues (After YR I a rent escalator of 2% is calculated in the spreadsheet which is consistent with the Fair Market Rent (FMR) increases for Iowa City] Line I Gross Rent: Is the total amount of rent generated from the housing units, based on proposed rent levels (proposed rents may be less than FMRs but cannot exceed FMRs). Line 2 Other Income: Include laundry income, application or pet fees, and interest income. Line 3 'Tenant Contributions: Include other payments such as rent for parking or storage space. Line 4 Gross Income: Is the sum of Lines I through 3. Line 5 Vacancy Loss: Line I multiplied by 5%. Line 6 Effective Gross Income: Line 4 minus Line 5. Operating Expenses [An inflation escalator of 3% is calculated in the spreadsheet] Line 7 Operating Expenses: Estimated insurance expense (estimate from an agent). Line 8 Operating Expenses: Repairs and Replacements ($230 - $390 per unit depending on building age). Line 9 Operating Expenses: Management Fee (usually 5 — 7% of Gross Rent). Line 10 Operating Expenses: Miscellaneous Expenses (legal, accounting, advertising, water\sewer, etc.). The total of Imes 97-10 shall be no less than $2,750/unit. Line 11 Operating Expenses: Property Taxes (estimate may be obtained from the City Assessor's Office), Line 12 Operating Expenses: Reserves. Operating reserve no less than $350/unit. If new construction, include a rent -up reserve for Year 1 of gross monthly rent for all units a 3 months) Line 13 Total Operating Expenses: is the sum of Lines 7 through 12. Net Operating Income Line 14 Net Operating Income: Is Line 6 minus Line 13, Debt Service [list mortgage pavments for principal and interest only] Line 15 Debt Service for I` Mortgage. Line 16 Debt Service for 2id Mortgage(s) (include the total payments for all junior mortgages on this line). Line 17 Total Debt Service: Is the sum of Lines 15 and 16 (should not be less than 87% of Line 14). Cash Flow Available for Distribution Line 18 Cash Flow: Equals Line 14 minus Line 17. Equity Investment Line 18B is the amount of funds being invested in the project by the project developer\sponsor. This does not include the equity raised through the sale of Low Income Housing Tax Credits as they are accounted for on Line 33. Cash on Cash Return on Investment [shows return to developer or investors on their equity contribution before taxes or tax credits are includedl Line 19 Cash on Cash ROT: Equals Line 18 divided by equity investment as shown on the application. Debt Coverage Ratio Debt Coverage Ratio (DCR): ratio of estimated net operating income to debt service. Line 14 divided by line 17. After year 3, DCR shall be no less than 1.20 during the affordability period. Encourage L20-1.50. Determining Taxes Line 20 Cash Flow: Carry over the figure from Line 18. Line 21 Depreciation Expenses: Annual depreciation of property (27.5 year straight-line schedule). Line 22 Amortization of Pees: Annual amortization of project fees (I5-yearstraight-line schedule). Line 23 Principal Payments: Calculate the amount of principal paid on all loans for each year. Line 24 Reservos: Carry over the figure from Line 12. Earnings (Loss) Before Taxes Taxes Line 25 Earnings Before Tax: Equals (Line 20 minus Lines 21 and 22) plus Lines 23 and 24. Line 26 Fax Rate: Use a 35% tax rate on for -profit organizations and non -profits use 0%. Line 27 1 axes Incurred (Saved): Equals Line 25 multiplied by Line 26. Cash Flow After -Tax Line 28 Cash Flow: Carry over figure from Line 20. Line 29 Taxes Incurred (Saved): Carry over figure from Line 27, Line 30 Cash Flow After-tax: Equals Line 28 minus Line 29. Total Benefit Analysis Line 31 Cash Flow After-tax: Carry over figure from Line 30. Line 32 Rehabilitation Tax Credits: Calculate full value of rehab tax credits. Line 33 Low Income Housing Tax Credits: Calculate full value of LIHTC annually for each of the L, 10 years. Line 34 Net Sale Proceeds: In year 20, calculate the estimated future market value of the property by taking the total cost of the project as presented in this application and compound it by 2% for each year. Place this amount on line 34. Line 35 Net Cash Flow After-tax: Equals the sum of Lines 31 through 34. Line 36 Return on Investment: Equals the Net Cash Flow After Tax divided by the Equity Investment. c � w a � , » » i j, Q is is Gt "^CL co CZct CL ® �° m ci16 c wa ii. ryryl ' G m r V 1E c a' U _ Y N .. y m E C C m 2 Z d N a L , y m 2 � � o w '- ®:� ® i 3 CC �� o _ - _ a r = r d j rc > � a r o > i a a 0 � I x N UI N x Z N i v N C U d N Y EL ifJ III (D h C O N M V m, W J N N N N N N N N N N MO o I v p I 5 - N 2 > I w w w w w w w w v+ w w w w a w tt � I O r C ". O U O v. mio o¢ ill N d K MCI V N m ol w x� N (O I� N, N U V� W (p O7 N U O I N O r I C I N v U NCI v p v z� M V r l¢L O v m h t0 III O N tt 0 j d• > } i O R } I � tt w M w of w w W j W M M Vs r9 r9 ai M cr > } m , Ln� rrrYY®� �®Imp CITY OF IOWA CITY Public Facility, Planning & Other Projects Application for FY2015 CDBG/HOME funds ■ Complete Application. Should you have any questions while completing the application contact Community Development staff at 319.356.5230 or by email at tracy-hightshoe@iowa-city.org. ■ Submit the original application to the City of Iowa City, Community Development Department. The application may not be longer than 10 pages, must by typed (10 point font or larger), and must be single sided. ■ Send your application by certified or registered mail; overnight delivery service e.g., Federal Express; deliver in person and have the application date/time stamped by a Planning & Community Development representative OR email the completed application to both tracy-hightshoegiowa-city.org and steve-Iong(c iowa-city.org. Emailed applications will receive a confirmation email from City staff before the application deadline. ■ Please remember that only one project proposal may be submitted on each application. Please use separate applications for each project proposal. Public Facility, Planning & Other Projects 1. Name of Project: 2. Total Amount of CDBG Funds Requested: $ 3. Applicant Name: Applicant Address: DUNS Number: Signature: 4. Contact Person: Phone Number: Fax Number: Email Address: 5. Location of proposed project: 6. Did you attend the Applicant Workshop? 11 NO M YES - Please indicate date attended: M12/18/13 or O 1/6/14 7. Brief summary of the proposed project (please limit response to a paragraph). 8. Please specify the one most applicable priority need and priority need level, as shown in CITY STEPS 2011-2015 (www.icgov.org/actionplan or review Application Guide). Priority Need Priority Need Level (High, Medium or Low) Public Facility, Planning & Other Projects 1 FY15 CDBG/HOME Funding Request 9a. Tell us why this project is needed (include information from studies\research or other supporting documentation) and how it fills a gap in the community as outlined in CITY STEPS. Also, indicate how the project partners with existing services/facilities, including whether other agencies will be housed in or will be allowed to use the facility. 9b. Will this project address the established priorities in the City's Strategic Plan? Please identify the priority(s). (www.icqov.org/strategicplan) 10. Provide a budget breakdown for your specific project. Complete the various categories appropriate for your project. Use categories such as property acquisition, architectural expenses, construction costs, material and administrative costs, etc. for construction/rehabilitation projects. The budget breakdown should only include those costs directly related to the project. If a construction project, provide the total estimated costs of the project, but do not include operational expenses or expenses not directly related to the construction project. Under the "status" column, indicate if funds are anticipated or committed for each source of funds. If anticipated, include the date the funds will be available if awarded funding. Please include the cost of an audit for any organization that expects to receive over $500,000 from all federal sources. Also include a budget for the other items under Budget Considerations in the FY15 Applicant Guide. Document Costs Whenever Possible. A construction estimate is strongly encouraged for all rehabilitation or new construction projects. PLEASE NOTE: The Housing and Community Development Commission may request a copy of your overall agency budget. Budget Breakdown (Include only those costs directly related to the project.) Expense Category (eg. salaries, acquisition, rehab) If possible, please prioritize the budget CDBG Funds Other Funds List Source of Other Funds including whether Public or Private Type Status c x FMMM yy rs B a C E Please place an 'X"in the box that applies: $ $ $ $ Total $ $ Public Facility, Planning & Other Projects 2 FY15 CDBG/HOME Funding Request Amount of private\agency\other funds Amount of CDBG funds Total Project Funding Number of persons assisted Total cost per person Total CDBG Cost Per Person (a) (b) (c)(afb) (d) (see question 19) (e) (c - d) (f) (b - d) 11. If volunteers are used please describe how these volunteers are utilized for the proposed activity and estimate the amount of volunteer time and value dedicated to the identified tasks. Unskilled labor hours Skilled labor ( ) hours x $10 per hour = $ x $ per hour = $ Skilled labor ( ) hours x $ per hour = 1 $ Total 12. What percentage of the proposed budget will be made up of private funds? 13. Describe what efforts have been taken to secure private or other public funding? 0 14. Briefly outline the proposed timetable for the commitment and expenditure of the funding being requested (include other project factors such as rezoning, construction schedule, or application(s) for other funding). Please Note. Ff funded, this schedule will he used for any project agreement for the use of CDEG funding. Date: Description of Activity: July 1, 2014 Beginning of City Fiscal Year and Project Start Date Public Facility, Planning & Other Projects 3 FY15 CDBG/HOME Funding Request 15. Explain why this project needs and is worthy of the requested public subsidy. 16. If funding is granted for this project, what steps are in place to decrease the likelihood it will require further subsidy in the future? 17. In what manner or form will the project proceed if it is awarded less than full funding? If the project has several individual components, please prioritize them according to your needs. 18. Please indicate the population to be served by the proposed project according to the income categories shown in the Applicant Guide. (Please Note. If this application is funded, the information in this table will be used as income targeting for the CDBG Agreement). Number between 0 - 30% median income Number between 31 - 50% median income Number between 51 - 80% median income Number over 80% median income Total Percent LMI Percent Iowa City Residents persons (a) persons (b) persons (c) persons (d) persons (e) (atb+c)=e Please describe the basis or methodology used to estimate the number of clients to be served (i.e. survey, last year's reports, etc.) 19. Does your project represent an innovative solution to meet the specific need it is intended to satisfy? If so, please explain. Public Facility, Planning & Other Projects 4 FYI CDBG/HOME Funding Request 20. Does the proposed project pay full property taxes? OYes []No If yes, what is the estimated value of taxes generated from this Project? $ If property taxes are not paid, does the proposed project pay a Payment In Lieu of Taxes or a reduced tax rate? OYes ONo If yes, what is the percent of full taxes paid? %and amount paid is 21. Please list amount of CDBG and/or HOME funds received within the last four City fiscal years and the status of the project(s) undertaken. (City fiscal year July 1 to June 30) Amount Budgeted Expended Date All Units Fiscal Year Funds Recv'd Amount (as of 12/31/13) Completed FY11 (July 2010 - June 2011) $ $ FY12 (July 2011 - June 2012) $ $ FY13 (July 2012 - June 2013) $ $ FY14 (July 2013 - June 2014)* $ $ * Six months remaining in FYI at time of this application. 22. Is the applicant (including partners, co -applicants, etc.) currently in compliance with all federal, state and local laws, rules and regulations, including any CDBG and/or HOME funded projects? ® Yes ® No If "NO" or a matter is currently in litigation please give the name of the case and explain the basis for the case. 23. If the applicant has not received HOME/CDBG funds in tiie past three years, please provide evidence of your organization's administrative capacity, financial skills, commitment and/or experience to undertake and complete the proposed project within the established timetable and budget. 24. Please describe your organization's structure, officers and staff, as it relates to the overhead cost for this project. Public Facility, Planning & Other Projects 5 FY15 CDBG/HOME Funding Request FY15 Aid to Agency Allocation Process • Summer 2013 United Way and Iowa City advertises funds available. (All applications submitted through United Way's eClmpact site at hftp://wvvw.unitedwayjc.org.) • Applications due September 4, 2013. • December 19, 2013 HCDC discusses allocation process. Copies of applications received by HCDC members. • January 16, 2014 HCDC reviews and formulates a budget recommendation to City Council. ® Recommendation for funding submitted to City Council for review/approval on May 6, 2014 (combined with the CDBG/HOME funding recommendation).