HomeMy WebLinkAboutHCDC 10.22.15.pdfAgenda
Housing & Community Development
Commission
Thursday, October 22, 2015
6:30 P.M.
Senior Center, Room 202
Please use the Washington Street entrance –
all other entrances will be locked.
28 S. Linn Street, Iowa City
1) Call meeting to order
2) Approval of the September 17, 2015 minutes
3) Public comment of items not on the agenda
4) Staff/commission comment
5) Discussion Regarding Community Development Block Grant (CDBG)
Requests
• Develop CDBG Budget Recommendation to Council
6) Discussion of Southgate Development Services’ CDBG application for the rehabilitation of the Walden Ridge Townhomes and support
for a Iowa Workforce Housing Tax Credit Application
• Develop Recommendation to City Council
7) Discussion of scoring criteria and application form for CDBG and HOME grant applications
8) Adjournment
MINUTES PRELIMINARY
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION SEPTEMBER 17, 2015 – 6:30 PM HELLING CONFERENCE ROOM, CITY HALL
MEMBERS PRESENT: Peter Byler, Michelle Bacon Curry, Jim Jacobson, Bob Lamkins,
Dorothy Persson, Emily Seiple, Mark Signs
MEMBERS ABSENT: Syndy Conger, Angel Taylor
STAFF PRESENT: Kris Ackerson, Tracy Hightshoe
OTHERS PRESENT: None
RECOMMENDATIONS TO CITY COUNCIL:
By a vote of 7-0 the Commission recommends approval of the FY15 Consolidated Annual
Performance Evaluation Report (CAPER).
CALL TO ORDER:
Hightshoe called the meeting to order at 6:30 PM.
NOMINATE AND ELECT OFFICERS:
Persson nominated Byler for chair. Jacobson seconded the nomination. A vote was taken and
the nomination carried 7-0. Byler assumed duties of commission chair. Lamkins nominated Jacobson for vice chair. Persson seconded the nomination. A vote was
taken and the nomination carried 7-0.
APPROVAL OF JUNE 18, 2015 MINUTES:
Persson questioned the vote and unanimous approval of amendment #2 stating she agreed with
the staff recommendation. Hightshoe noted the vote was unanimous, but Persson’s concerns
were noted in the minutes and shared with the memo that went to City Council.
Persson moved to approve the minutes of June 18, 2015. Lamkins seconded the motion. A vote was taken and the motion carried 7-0.
Hightshoe explained to the new members that legal prefers that unless there is a conflict of
interest that members do not abstain from votes, even if a member missed a meeting.
PUBLIC COMMENT:
None.
STAFF/COMMISSION COMMENT:
Hightshoe noted that City Council approved The Housing Fellowship’s request for the full award
Housing and Community Development Commission September 17, 2015 Page 2 of 6
of $150,000 to acquire two properties. The Housing Fellowship was able to secure a purchase offer for the second property before the item went before Council. Staff’s recommendation was
to approve The Housing Fellowship for both properties because they secured needed purchase
agreements in areas that do not have affordable (subsidized) housing sites (Abbey St. and N. Dubuque), the organization has the capacity to administer HOME fund, and they are a HOME
certified CHDO. The memo to City Council noted HCDC’s concerns about a non-competitive allocation process and their request to fund one property and reallocate the remainder. City Council approved the full request and The Housing Fellowship acquired both properties.
Hightshoe also noted they have three new commission members and asked if the time of the meeting works for all, or if they wanted to change it. The Commission decided to keep the
meeting time at 6:30.
Ackerson said they are opening another funding round for CDBG. There is $200,000 available
and a press release will go out for that tomorrow. It is live on the website now. Applicants are encouraged to apply for at least $50,000. Staff will email all the applicants that have applied in
the past three years to let them know these funds are available as well as sending out the
typical press releases. Applications are due Thursday, October 8. HCDC meets October 15 where funding recommendations will be made. If that is not enough time it can be done at the
October 22 meeting. Hightshoe said the money became available because Community Mental Health sold their facility less than five years after using CDBG funds on the site. Additionally Extend the Dream Foundation sold their property and the funds returned. These funds can be
used for anything except public services because public services have already been allocated up to the cap. Hightshoe explained there is an additional $47,000 but Staff needs to hold those funds in case program income is lower than expected.
Byler noted that on October 5 there is a roundtable discussion on affordable housing hosted by the Human Rights Commission at the Iowa City Public Library at 6:00 p.m.
Byler also stated that while this Commission focuses on housing and funding, it is in their
purview to discuss employment. The Council will discuss the minimum wage issue at their next
meeting. He asked if the Commission would want to draft a memo of support. Hightshoe noted that a formal memo would have to go on the next HCDC agenda but as individuals the members
can contact Council.
Byler asked Staff about the Riverfront Crossings inclusionary zoning policy. Hightshoe replied
that Development Services staff is drafting the zoning ordinance at Council’s direction. Byler questioned if a member of Development Services could come to a Commission meeting and present. Hightshoe said that would be possible.
PUBLIC MEETING & APPROVAL OF THE FY15 CONSOLIDATED ANNUAL
PERFORMANCE & EVALUATION REPORT (CAPER) – ONLINE AT
www.icgov.org/actionplan: Hightshoe noted that this report is required by HUD and must be submitted within 90 days of the
end of the City’s fiscal year, so it’s due September 30. The report highlights how the City has used their federal funds. Hightshoe noted there are two key tables in the report: the summary of CDBG projects and HOME assisted projects. It identifies the project, how much was spent in the
fiscal year, beneficiaries served and leveraged funds. As a reminder beneficiary and leverage information is only provided when the project is completed so as to not double count
accomplishments during the 5-year plan.
Housing and Community Development Commission September 17, 2015 Page 3 of 6
Signs observed that priority #3 speaks to increasing wages and economic self-sufficiency around the housing issue. There was some mention of federal funds that we don’t access as a
community and questioned what those funds do. He commented that the down payment
assistance was small and is there opportunity for more. Down payments are often the limitation for folks in purchasing a home. Signs noted that under the Fair Housing Impediments they talk
about the need for inclusionary zoning, which was clearly laid out in the plan. He also noted that assistance with the acquisition of land is an important issue for him, it all starts with land and hopes the City can help with that. He would encourage that the affordable housing model be
reviewed again. He also pointed out some typos in the report, on page 33 the last line on item #4 the word to should be two (“to rehab two affordable units”). He then noted on page 11 there is a reference to City Staff meeting with the Greater Iowa Apartment Association that should be
Greater Iowa City Apartment Association.
Signs also wondered if we are leveraging enough, are our funds being used enough to leverage
other funds.
Byler asked about the treating of housing choice vouchers as a protected class and how that
can be enforced without asking landlords to lower the market rent. Hightshoe said we can’t make landlords charge lower rent, however the proposed ordinance wouldn’t allow landlords to
advertise “Section 8 not accepted.” The ordinance would make landlords use the same criteria when accepting tenants. They can’t accept someone who has a voucher simply based on the voucher alone. That being said landlords can deny a tenant based on items such as credit
score, bad references, prior evictions, lack of security deposit, etc. Hightshoe stated the proposed changes will not affect our voucher utilization rate, which is already high. Staff believed it was the right thing to do. The Human Rights Commission recommended this addition
and staff will present the recommendation to City Council for approval sometime this fall. Byler asked about the #2 Impediment which states, “The Affordable Housing Location Model is
a well-constructed effort to disperse certain types of assisted housing; however the model may significantly reduce the parcels of land where new assisted rental housing may be built or
acquired.” The recommendation is, “For projects that require compliance with the Affordable
Housing Location Model, the City should provide land and locations permitted by this model at prices comparable to land at locations not permitted by this model. Alternatively, the City could
provide cash supplements from non-CDBG/HOME sources that offset land cost differentials to
such projects.” Byler feels that is 100% unrealistic, the City doesn’t have a pile of money to assist with this.
Staff noted that CDBG funds are made available to help meet the gap of lot prices so homes can be built or acquired. The Affordable Housing Location Model is intended to prevent all
affordable housing being built in one area or section of town. Many times lots in other parts of town will be more expensive. City Council did review the importance of scattering affordable housing with the outcome that possibly less housing may be built/acquired. The #2 Impediment
is just a recommendation that the City should try to do more and find additional funds for this purpose.
Jacobson asked if there was a way to provide local tax credits as a subsidy method as opposed to direct funds. Hightshoe said that the affordable housing providers in Iowa City are already tax
exempt. Byler said he spoke with the City Manager and he stated that if a developer did a mixed
income development the City would be amendable to consider a TIF on the market rate units to help with the affordable units.
Byler’s last comment on the report was in the tables where it talked about economic
Housing and Community Development Commission September 17, 2015 Page 4 of 6
development. The numbers are very small. He noted that when improvement projects are noted in the paper, the amounts can be deceiving so staff need to convey what the City actually
contributed, not just the whole project cost.
Bacon Curry asked about the goal for five new units of rental housing annually and goals of
construction of new rental housing, and were these goals met. Hightshoe said those numbers were based on the five year plan, and the City exceed the goals.
The commission discussed the lack of affordable housing and the hope that inclusionary zoning will aid in getting more units into the community. There is a shortage of one-bedroom units in the City as well so elderly clients of affordable housing have to use their vouchers on two-
bedroom units and pay more in rent than needed.
Jacobson moved to approve the FY15 Consolidated Annual Performance Evaluation Report (CAPER). Lamkins seconded the motion. A vote was taken and the motion passed 7-0.
TENTATIVE SCHEDULE OF PROJECT MONITORING VISITS IN FY16:
Staff will invite entities to HCDC meetings to discuss the status of their projects:
• November 19
The Housing Fellowship o FY15 Acquisitions on Dubuque Road and Abbey Lane o FY15 Rehab of Keokuk Court and Hawaii Court
o FY16 CHDO Operating Systems Unlimited
o FY16 Acquisition of three SRO units
Mayor’s Youth o FY16 Acquisitions on Shamrock Drive and Elmridge Avenue
• February 18 Habitat for Humanity
o FY15 Property acquisition and construction for two homes on Prairie Du Chien
Road CHARM Homes
o FY16 Acquisition of eight single-room-occupancy (SRO) units
Shelter House o FY15 Rapid Rehousing Program
• March 17 Neighborhood Centers of Johnson County
o FY16 Daycare operations (Aid to Agencies) o FY16 Broadway Neighborhood Center Rehab Domestic Violence Intervention Program
o FY16 Shelter operations (Aid to Agencies) o FY16 Facility rehab Crisis Center
o FY16 Emergency Assistance Program Byler also said it is nice to tour the entities and welcomes Commission members to visit the
entities. Hightshoe said the March 17 visits will be moved to April. Also the Commission members are welcome to tour the entities but cautions against groups larger than four as that
represents a quorum. Public meeting rules must be following if over four members. Staff can
assist with coordination.
Housing and Community Development Commission September 17, 2015 Page 5 of 6
DISCUSSION AND RECOMMENDATION REGARDING WALDEN RIDGE PROPOSAL BY
SOUTHGATE DEVELOPMENT SERVICES:
Southgate Development Services requests to pay off their CDBG loan for the Wetherby Condos
South L.L.C. project and have these funds applied to the rehabilitation of units on Sylvan Glen Court (Walden Ridge Townhomes) and requests City support for a Iowa Workforce Housing Credit application.
Hightshoe explained that back in fiscal year 2011 there was windfall program income due to a low-income housing tax credit project. So in 2011 the City allocated $900,000 to the Broadway
Wetherby Condos. $300,000 was a grant and $600,000 was a loan to be repaid. Southgate rehabbed the whole complex and only one unit is currently vacant. Southgate also owns
apartments on Sylvan Glen Court (Walden Ridge Townhomes) and proposes paying back the
$600,000 loan they received early if it will be reallocated to the Walden Ridge rehab project. They are requesting it as a grant. Staff is asking the Commission if they support the request for
further review and consideration. As with any housing project, staff would analyze the proforma
and make financing recommendations that may not be what the applicant requested. It is likely after review, staff will recommend financing terms that include loan repayment.
Jacobson noted that this area is in the red zone so no more rental units could be acquired. Southgate could rehab the 45 units they already have with the money. They would have to use
private funding to acquire and rehab the other units. There was discussion on when Southgate was to originally pay back the $600,000 they owe and
why the City would be willing to grant them that money. Hightshoe said Southgate would have to start making repayments in 2018 on the $600,000. Persson noted it is in the City’s interest to improve the Walden Ridge Townhome area to make those affordable houses attractive to the
neighborhood.
Signs noted he is working with a client that has been in conversations with Southgate about this
property. Hightshoe said Signs should recuse himself from the conversation and not vote on this item.
The commission discussed how long the units would have to stay affordable if the money was given by the City. Hightshoe said following the HOME guidelines it would be at least 10 years.
By a vote of 6-0-1 (Signs abstaining) the Commission recommends support of an application by Southgate to repay their existing CDBG loan and apply it to the renovation of Walden Ridge
Townhomes subject to an application and staff review of the financial terms requested. These items to be reviewed at their October HCDC meeting.
Lamkins departed the meeting. ADJOURNMENT:
Jacobson moved to adjourn. Bacon Curry seconded the motion. A vote was taken and
motion carried 6-0.
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION ATTENDANCE RECORD
NAME TERM EXP. 11/20/14 1/15/15 2/19/15 3/12/15 4/16/15 6/18/15 9/17/15
BACON CURRY, MICHELLE 9/1/2016 O/E X X X O/E X X
LAMKINS, BOB 9/1/2016 --- --- X X X O/E X
PERSSON, DOTTIE 9/1/2016 X X X X X X X
BYLER, PETER 9/1/2017 X X X X X X X
JACOBSON, JIM 9/1/2017 X X X X X O/E X
TAYLOR, ANGEL 9/1/2017 X O/E X O X X O
CONGER, SYDNY 9/1/2018 --- --- --- --- --- --- O/E
SEIPLE, EMILY 9/1/2018 --- --- --- --- --- --- X
SIGNS, MARK 9/1/2018 --- --- --- --- --- --- X
Key:
X = Present O = Absent
O/E = Absent/Excused
--- = Vacant
Housing 2 FY16 Mid-Year CDBG Funding Request
Housing
Project Name: Affordable Rental Rehabilitation
Type of Project (check one): Homeownership Rental Tenant Based Rent Asst. Rehabilitation
(Rental and Rental Rehabilitation projects require the completion of rental housing pro forma)
General Information
1. Lead Applicant Name: The Housing Fellowship
Applicant Address: 322 E. 2nd Street
Contact Person and Title: Maryann Dennis, Executive Director
Phone Number: 319-358-9212
E-mail Address: mdennis@housingfellowship.com
2. Lead Applicant DUNS Number: 964658236
3. Secondary Applicant (if applicable):
Applicant Address:
Contact Person and Title:
Phone Number:
E-mail Address:
4. Type of Applicant (check one):
Community Housing Development Organization Private non-profit organization
Private for-profit, individual or partnership applicant Public Organization
5. Amount of CDBG Funds Requested: $ 49,998.00
6. Provide a brief description of the proposed project & complete the table below. Funds will be used to rehabilitate two affordable rental properties owned by The Housing Fellowship since 1996; two single family, three bedroom homes at 1017 Dover Street and 2600 Wayne Avenue. Both properties are occupied by low-income families.
Description of rehab: 1017 Dover (built in 1965) – windows, kitchen and baths re-model, flooring, HVAC.
2600 Wayne (built in 1958) – bath and kitchen re-model, HVAC, water heater, carpet
The rehab (i.e. preservation) of existing affordable rental homes is a high priority in the City STEPS plan. The Housing
Fellowship has the capacity to carry out the project and budget projections are reasonable.
Type of Units: Total Number of Units Proposed:
Single Room Occupancy
Efficiency
1 - Bedroom
2 - Bedroom
3 - Bedroom 2
4+ Bedrooms
Housing 3 FY16 Mid-Year CDBG Funding Request
Section 1 – Need/Priority
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.icgov.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.) Rental Prices:
*The Housing Fellowship
Project units as of 2015 –
1017 Dover Street, $620
2600 Wayne Avenue, $923 * THF has an agreement with Iowa City to offer a certain number of properties at rents equal to 30% of the AMI for
family size. The family at 1017 Dover receives reduced rent. The rent at 2600 Wayne is the HOME program allowable rent. Vacancy rate (all THF rental units) –
2014 3.4%
2015 (to date) 2.0%
Change in rental rates for the last two years;
2013: 1017 Dover = $626 2600 Wayne = $910 2014: 1017 Dover = $596 2600 Wayne = $917 Cook’s Area Apartment Survey –
2013 Average rent, three bedroom = $1,016
2011 – Average rent, three bedroom = $ 961
2013 Vacancy rate, three bedroom .9%
2011 Vacancy rate; three bedroom 2.58% Condition of Building Yr. Built Purchased by THF Price Amt. Rehab at Purchase Current Assessment
1017 Dover 1965 12/1996 $85,000 $4,159 $128,740
2600 Wayne 1958 12/1996 $76,000 $6,991 $110,060
Other maintenance/rehab has been completed over the years. 2600 Wayne Avenue’s foundation was excavated and
re-sealed in 2002. Upon tenant turnover, the property was painted, etc., but no significant rehab/replacement of
major systems has been done. 1017 Dover has been occupied by the same family since February, 1997; maintenance has been done as needed. New water heater was installed in 2014.
Flooring and appliances fully depreciate after five years for residential rental properties.
7b. How will this project meet the needs identified in the 2011-2015 CITY STEPS (www.icgov.org/actionplan)
The rehabilitation of existing affordable rental units is a high priority in the STEPS plan. Iowa City is committed to serve the needs of LMI residents. Households with incomes less than 50%
AMI, particularly those with incomes less than 30% AMI, are particular priorities. The City has also
Housing 4 FY16 Mid-Year CDBG Funding Request
identified special needs individuals as among those who should receive high priority in the expenditure
of funds, including at-risk children and youth, low income families, the homeless and persons threatened
with homelessness, the elderly, and persons with disabilities. Both homes are occupied by families who have a member that is disabled. The STEPS plan further states; “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. 48 units originally constructed with Low Income Housing Tax Credit financing were
converted to market-rate apartments (Villa Garden Apts.). There is a relative lack of available vacant housing units
that are affordable and available for purchase and/or rehabilitation for lower income households. More than half of
the privately assisted housing inventory in Iowa City is at risk for conversion to market rate housing. The City of Iowa City expects to focus its CDBG and HOME entitlement funds towards improving the quality of life in City neighborhoods for extremely low, very low, and low income households, and to preserve and increase the stock of affordable owner and renter housing units. With this in mind, the following housing priorities and objectives have
been established: preserve existing affordable housing units. Work with local non-profits that own and operate
privately subsidized housing that is at risk for conversion to market rate units. In many cases, these older affordable
housing units are in need of rehabilitation. Iowa City and other local units of government should establish a
preservation dialogue with the owners of these older properties in an effort to
rehabilitate the units and maintain affordable rents. In many cases, these projects may require an infusion of HOME financial assistance.” 7c. Will this project address the established priorities in the City’s Strategic Plan? Please identify the priority(s). (www.icgov.org/strategicplan)
Yes. Rehabilitation of existing rental units
8. Please specify the one most applicable priority need and priority need level, as shown in the 2011-2015 CITY STEPS Plan. Priority Need: Rehabilitation of existing rental units HIGH _____________________
Section 2 – Leveraging Resources/Budget
9. Please provide the requested loan terms and affordability period:
Principal Amount
Interest Rate
Loan
Amortization (Years)
Affordability
Period (Years)
Yearly Payment
Terms Requested* $49,998 0% 10 (declining balance forgivable)
10 $0
*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
Funds:
Funding
Amount
Interest
Rate
Amortization
Term Committed?
Iowa City CDBG Funding $49,998 0 10 10 Yes No
Housing 5 FY16 Mid-Year CDBG Funding Request
(public)
State of Iowa HOME or CDBG (public) $ Yes No
IFA – Low Income Housing Tax Credits (public) $ Yes No
Bank Loan (private) $ Yes No
Applicant Contribution of
Equity (private)
$ 15,000 n/a n/a n/a Yes No
Other Public Resources
(please list)
$ Yes No
Other Private Resources
(please list)
$ Yes No
TOTAL $64,998
10b. Please provide the uses of funds for the project.
Uses of Funds Amount
Acquisition:
Building Acquisition $
Land Acquisition $
Site Improvements $
Construction $64,098
Professional Fees $
Construction Finance $
Permanent Finance $
Developer Fee $
Reserves $
Other (please specify):Lead $ 900
$
TOTAL (Must equal TOTAL in 10a.) $64,998
Amount of Private Funds $ 15,000 _______ (a)
Amount of Public Funds $ 49,998 _______ (b)
Total Project Funding $ 64,998 _______ (c) a + b
Number of bedrooms 6 ________ (d)
Total Cost Per Unit $___32,499_______ (e) c ÷
#Units
10c. What percentage of the proposed budget will be made up of private funds? _23%_%
Housing 6 FY16 Mid-Year CDBG Funding Request
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.
N/A: HOME program requires non-profits to competitively bid the rehab work and award construction contracts.
Unskilled labor _______ hours x $10 per hour = $_________________
Skilled labor (_____________ ) _______ hours x $___ per hour = $_________________
Skilled labor (_____________ ) _______ hours x $___ per hour = $_________________
Skilled labor (_____________ ) _______ hours x $___ per hour = $_________________
Total $_________________
12. Please identify any identity of interest (IOI) relationships with the applicant and/or project owner, i.e. General Partner
has a financial interest in the construction company, etc.
N/A 13. Describe what efforts have been taken to secure private or other public funding.
The Housing Fellowship has secured standing lines of credit from Great Western Bank for private loan funds to be
used for rehab, acquisition, pre-development costs and operations. This structure provides immediate access to loan
funds and the loans are renewed annually. All of the loans have funds available. No other public sources have been
sought.
Both properties are included in a consolidated commercial property loan from Great Western Bank (as indicated on pro forma).
Section 3 – Feasibility/Need for Subsidy
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). If applicant plans
to apply for funds not committed to the project yet, include the anticipated date for application. Please Note: If funded, this schedule will be used for any project agreement for the use of CDBG funding. Date: Description of Activity:
Dec 1, 2015 Project Start Date
1- 2016 Lead testing
1-2016 – 3-2016 Prepare work list and rehab specifications
4-2016 Advertise for sealed bids and hold bid opening
5-2016 Award rehab contracts
6-2016 Begin rehab
9-2016 Project Close-Out
15. 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).
Housing 7 FY16 Mid-Year CDBG Funding Request
The project will assure the preservation of existing affordable rental housing in Iowa City owned by a
Community Housing Development Organization. THF’s objective is to provide families with decent, affordable and stable housing. Even though all funding covenants and restrictions have been released on the project properties, THF has continued to offer the homes at rents that meet prior funding agreements. The rents at the project properties are significantly lower than current market rate rental homes and are affordable to the occupants.
The incomes of the occupied project homes are below 50% AMI. The family at 1017 Diana Street has been there
since June 1997; 446 Hawaii since 2010. Both families have a member who is disabled.
The properties were acquired by THF in 1996. THF completed minimal rehabilitation (as needed) at purchase, but
after 19 years, the homes are in need of rehabilitation. When City HOME funds were invested in the properties, it was not allowed for the HOME funds recipient to budget for repairs or capital improvements. THF has since budgeted for capital improvements with cash flow and loans from other funders. Funding for significant rehab will help a great deal to preserve the homes.
16. 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 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. The Housing Fellowship will maintain the properties as permanent affordable rental housing for the life of the properties. The project provides for affordable rental rates at far below the current rents charged in the Iowa City rental market. (See 7.a. Market Analysis)
17. Explain why this project needs and is worthy of the requested public subsidy.
This fits with the City STEPS top priority of allocating funds; “the following housing priorities and objectives have been established: preserve existing affordable housing units.” The Housing Fellowship has a long history of partnership with Iowa City and is capable of completing the project on time within the proposed budget. The tenants have incomes below 50% AMI and both include a family member with a disability.
The Housing Fellowship has grown to be a very well respected non-profit developer and property manager; has
received millions of dollars in public funding toward addressing the severe shortage of affordable rental homes in
Iowa City and surrounding communities. Projects are completed on schedule, within budgets and compliance with all
funding regulations have been maintained throughout the term of affordability. 18. If funding is granted for this project, what steps are in place to decrease the likelihood it will require further subsidy in the future?
Further subsidy will not be necessary (or allowed) for at least 10 years. The Housing Fellowship has established
replacement/repair reserves which reduce the need for additional subsidies during the required term of affordability.
19. If partial funds are awarded, will the project/program continue? Yes No
If yes, at what level? The properties will remain as rental properties within The Housing Fellowship’s portfolio and rehab items will be completed on a piecemeal basis; an inefficient way to adequately maintain the properties.
The proposed rehabilitation items include major improvements to the properties and the materials and labor have long
warranties (e. g. windows). The steps implemented by THF to minimize future subsidies include the approved tenant
selection plan, responsible property management and attention to regular, routine repairs. THF has a capital
improvement budget for rental homes and regularly seeks other sources of funding for needed rehabilitation of properties.
Housing 8 FY16 Mid-Year CDBG Funding Request
Reminder: Rental housing (including acquisition, rental rehab, and new construction) projects MUST complete and submit the pro forma (excel format) provided by the City with this application. Rental housing applications submitted without the City’s pro forma will not be considered.
Section 4 – Impact/Benefit to the Community
20. 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.
The target population for this project is households with incomes below 80% AMI, although the occupants’ incomes
are below 50% AMI. The properties are modest, decent homes within established, modest neighborhoods. The
properties fit in nicely and are indistinguishable from nearby residences. Locating affordable rental homes in market rate neighborhoods increases diversity in our neighborhoods. 21. Identify the location of the proposed project.
1017 Dover Street
2600 Wayne Avenue
22. Also, please indicate the number of persons or households that will be served by the proposed project by income category. (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 _______ households (a)
Number between 31 – 50% median income _______ households (b)
Number between 51 – 60% median income _______ households (c)
Number between 61 - 80% median income ___2____ households (d)
Number over 80% median income ___0____ households (e)
Total ___2____ households (f)
Percent LMI ___100____ (a+b+c+d) ÷ f
23. Does the proposed project pay full property taxes? Yes No
Iowa City Attorney opined that THF owned homes are tax exempt.
If YES, what is the estimated value of taxes generated from this Project? $ N/A
If NO, does the proposed project make a Payment In Lieu Of Taxes or pay at a reduced rate?
Yes No If yes, what is the percent of full taxes paid? _____% and amount paid is $______________
24. Does your project represent an innovative solution to meet the specific need it is intended to satisfy? If so, please
explain.
The project properties have been part of THF’s rental portfolio for over 19 years. The scattering of affordable rental homes was innovative when the properties were purchased and scattered site affordable housing has long been an objective of Iowa City governing bodies and of THF. The partnership between the City and a well-established and responsible non-profit has been and continues to be somewhat distinctive in our area. Many metro areas in Iowa rely
Housing 9 FY16 Mid-Year CDBG Funding Request
on for-profit housing developers to provide affordable rental housing. For-profit affordable housing developers typically
revert the affordable homes to market rate when affordability terms expire. THF is unique in that the homes will remain
affordable for the life of the property in order to preserve affordable rental housing.
Section 5 – Capacity/History of the Applicant
25. 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 Budgeted Amount Amount Expended (as of 10/8/15) Date All Units Completed
FY13 (July 2012 - June 2013) $ 19,260 $ 19,260 N/A CHDO Operating
FY14 (July 2013 - June 2014) $ 91,997 $ 91,997 3/1/2015
FY15 (July 2014 - June 2015) $165,000 $165,000 The 2 homes will be leased
11/1/2015
FY16 (July 2015 - June 2016)* $316,000 $0 n/a
*Eight months remaining in FY16 at time of this application.
26. 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.
27. 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. Maryann Dennis has been the Executive Director of the Housing Fellowship since January 1993. She has extensive
experience in working with low-income families and the administration of federal and private funding sources. She
oversees all aspects of THF; prepares applications for funding and manages agreements with private lenders, HTFJC,
CDBG, HOME, FHLB contracts and LIHTC partnership agreements. She prepares all correspondence/information
packets for the Board of Trustees and serves on all Trustee Committees. Ms. Dennis is a certified Housing
Development Finance Professional through the National Development Council. She holds a Master of Social Work Administration and Social Development from the University of Iowa. She serves as ex-officio of the Housing Trust Fund of Johnson County, and the Vice-Chair of the Johnson County Affordable Homes, and served on the Iowa City ad hoc work committee for the Riverfront Crossing Inclusionary Housing Ordinance. She is the past member and chair of
the Iowa City Committee on Community Needs (nka Housing and Community Development Commission).
Barbara Bailey was the contracted accountant for over eight years and joined The Housing Fellowship full-time in
February 2007 as the fiscal officer of the Corporation. Ms. Bailey attended the U of I for three years and apprenticed
under a non-profit accountant for over 10 years. She has over 20 years in non-profit accounting. She maintains financial records, reconciles all accounts, and prepares all financial reports and balance sheets for the Board of Trustees. She coordinates all information for the annual independent audit of THF and consolidated entities. She prepares budgets for THF and Limited Partnerships. Ms. Bailey is certified as a Development Finance Professional through the National Development Council. She is the founder of Iowa City Cohousing and serves on the Riverfront
Crossings District Streetscape Committee.
Tashundra Gathright Compliance Specialist re-joined the staff in May 2008. Ms. Gathright holds a B.A. Degree in
Sociology from the U of I. She served as Office Manager at THF from 2004 – 2005, leaving to be an Income
Maintenance Worker at DHS. Ms. Gathright is the only Certified Credit Compliance Manager4 in Johnson County and has received extensive training in HOME Compliance from the IA Finance Authority; completes HUD Part 5 income verification and LIHTC tenant qualifications. Ms. Gathright completes all compliance reports, tracks income requirements for available units, and compiles program and tenant statistics.
Housing 10 FY16 Mid-Year CDBG Funding Request
Tammy Spies, Project Manager, joined THF staff in September 2003 after serving as Office Manager and Estimator of
Arena Auto Body for over 12 years. She holds an Associate of Arts Degree from Ellsworth Community College in Sales Management. She has demonstrated excellent skills in property management practices and project management; lease-ups and renewals and repairs. She has completed compliance training for federal funds sponsored by the Iowa Department of Economic Development, the Iowa Finance Authority and the Iowa City and Linn County Civil Rights Commissions.
Tom Costa, Maintenance and Repair, joined THF in October 2013. Mr. Costa has extensive experience in facilities
maintenance and previously was the maintenance supervisor at Walden Place.
28. Please describe your organization’s structure, officers and staff, as it relates to the overhead cost for this project. No overhead costs are being requested for this project. Overhead costs are paid for with rental income, grants and fundraising.
29. 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.
THF currently manages 171 affordable rental homes scattered throughout Iowa City and Coralville. THF owns 101 of the homes. # New Construction: Rental = 89 (10 sold to ICPHA) Owner-Occupied = 27
# Rehabbed: Rental = 111
Owner-Occupied = 2
Projects in the pipeline - River Front Crossings District – The Housing Fellowship will purchase and manage three
townhomes in the Sabin project and manage 11 affordable apartments in the Emrico project. The Housing Fellowship is looking to purchase land to submit a Low-Income Housing Tax Credit application.
The Housing Fellowship Rental Rehab 10-8-2015
Proforma Spread Sheet
FY16 Rental Housing Projects
Please enter information into "grey" fields only if you are using excel.
Line Description Symbols YR1 YR2 YR3 YR4 YR5 YR6 YR7 YR8 YR9 YR10
Revenues
1 Gross Rental Income + G. Rent 18,516$ 18,886$ 19,264$ 19,649$ 20,042$ 20,443$ 20,852$ 21,269$ 21,694$ 22,128$
2 Other Income + O. Income -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
3 Tenant Contributions +T. Contrubution -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
4 Gross Revenues = G. Income 18,516$ 18,886$ 19,264$ 19,649$ 20,042$ 20,443$ 20,852$ 21,269$ 21,694$ 22,128$
5 Vacancy Loss - Vac 926$ 944$ 963$ 982$ 1,002$ 1,022$ 1,043$ 1,063$ 1,085$ 1,106$
(5% Vac. Rate x Gross Income)
6 Effective Gross Income = EGI 17,590$ 17,942$ 18,301$ 18,667$ 19,040$ 19,421$ 19,809$ 20,206$ 20,610$ 21,022$
Operating Expenses
7 Insurance 851$ 876$ 902$ 929$ 957$ 986$ 1,016$ 1,046$ 1,077$ 1,110$
8 Maintenance & Structural Repairs 780$ 803$ 828$ 852$ 878$ 904$ 931$ 959$ 988$ 1,018$
9 Management Fees 1,167$ 1,202$ 1,238$ 1,276$ 1,314$ 1,353$ 1,394$ 1,436$ 1,479$ 1,523$
10 Misc. Operating Expenses 5,004$ 5,154$ 5,309$ 5,468$ 5,632$ 5,801$ 5,975$ 6,154$ 6,339$ 6,529$
11 Property Tax -$ -$ -$ -$ -$ -$ -$ -$ -$
12 Reserves (Operating reserve no less than $350/unit)900$ 927$ 955$ 983$ 1,013$ 1,043$ 1,075$ 1,107$ 1,140$ 1,174$
13 Total Operating Expenses - OPR. Expenses 8,702$ 8,963$ 9,232$ 9,509$ 9,794$ 10,088$ 10,390$ 10,702$ 11,023$ 11,354$
14 Net Operating Income =NOI 8,888$ 8,979$ 9,069$ 9,158$ 9,246$ 9,333$ 9,419$ 9,503$ 9,587$ 9,668$
15 Debt Service First Mortgage 6,855$ 6,855$ 6,855$ 6,855$ 6,855$ 6,855$ 6,855$ 6,855$ 6,855$ 6,855$
16 Debt Service Subordinate Mortgage(s)-$
17 Total Debt Service -D\S 6,855$ 6,855$ 6,855$ 6,855$ 6,855$ 6,855$ 6,855$ 6,855$ 6,855$ 6,855$
18 Cash Flow =CF 2,033$ 2,124$ 2,214$ 2,303$ 2,391$ 2,478$ 2,564$ 2,648$ 2,732$ 2,813$
18(b)Equity Investment In Project -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
19 Cash -on- Cash ROI CF #DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!
Cash Flow divided by Equity Investmentt in Project Equity Invest.
Debt Coverage Ratio (after Year 3, shall be no less than 1.20 DCR 1.30 1.31 1.32 1.34 1.35 1.36 1.37 1.39 1.40 1.41
during compliance period. Encourage 1.20-1.50.)
The total of items
#7-10 shall be no less than $2,750/unit
The Housing Fellowship Rental Rehab 10-8-2015
Line YR1 YR2 YR3 YR4 YR5 YR6 YR7 YR8 YR9 YR10
Determining Taxes
20 Cash Flow CF 2,033.37$ 2,124.12$ 2,214.07$ 2,303.13$ 2,391.21$ 2,478.19$ 2,563.98$ 2,648.45$ 2,731.50$ 2,813.00$
21 Depreciation Expenses - DEPR -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
22 Amortization of Fees -AMORTZ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
23 Principal Payments +P -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
24 Reserves +RESERVES 900.00$ 900.00$ 900.00$ 900.00$ 900.00$ 900.00$ 900.00$ 900.00$ 900.00$ 900.00$
25 Earnings (Loss) Before Taxes =EBTx 2,933.37$ 3,024.12$ 3,114.07$ 3,203.13$ 3,291.21$ 3,378.19$ 3,463.98$ 3,548.45$ 3,631.50$ 3,713.00$
26 x Tax Rate (35% or 0%)xRATE 0%0%0%0%0%0%0%0%0%0%
27 Tax Incurred (Saved)=TAX or (Savings)-$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Cash Flow After Tax
28 Cash Flow CF 2,033.37$ 2,124.12$ 2,214.07$ 2,303.13$ 2,391.21$ 2,478.19$ 2,563.98$ 2,648.45$ 2,731.50$ 2,813.00$
29 Tax Incurred (Tax Saved)- TAX (+SAV)-$ -$ -$ -$ -$ -$ -$ -$ -$ -$
30 Cash Flow After Tax =CFATx 2,033.37$ 2,124.12$ 2,214.07$ 2,303.13$ 2,391.21$ 2,478.19$ 2,563.98$ 2,648.45$ 2,731.50$ 2,813.00$
Line Total Benefit Analysis
31 Cash Flow After Tax CFATx 2,033.37$ 2,124.12$ 2,214.07$ 2,303.13$ 2,391.21$ 2,478.19$ 2,563.98$ 2,648.45$ 2,731.50$ 2,813.00$
32 Rehabilitation Tax Credit +RTC -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
33 Low Income Housing Tax Credit +LIHTC -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
34 Net Sale Proceeds +NSP -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
35 Total Benefits After Tax (NCFAT)=NCFATx 2,033.37$ 2,124.12$ 2,214.07$ 2,303.13$ 2,391.21$ 2,478.19$ 2,563.98$ 2,648.45$ 2,731.50$ 2,813.00$
36 Return on Investment ROI #DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!
The Housing Fellowship Rental Rehab 10-8-2015
YR11 YR12 YR13 YR14 YR15 YR16 YR17 YR18 YR19 YR20 Line Description
Revenues
22,571$ 23,022$ 23,483$ 23,952$ 24,431$ 24,920$ 25,419$ 25,927$ 26,445$ 26,974$ 1 Gross Rental Income
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 2 Other Income
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 3 Tenant Contributions
22,571$ 23,022$ 23,483$ 23,952$ 24,431$ 24,920$ 25,419$ 25,927$ 26,445$ 26,974$ 4 Gross Revenues
1,129$ 1,151$ 1,174$ 1,198$ 1,222$ 1,246$ 1,271$ 1,296$ 1,322$ 1,349$ 5 Vacancy Loss
(5% Vac. Rate x Gross Income)
21,442$ 21,871$ 22,309$ 22,755$ 23,210$ 23,674$ 24,148$ 24,631$ 25,123$ 25,626$ 6 Effective Gross Income
Operating Expenses
1,143$ 1,177$ 1,213$ 1,249$ 1,286$ 1,325$ 1,365$ 1,406$ 1,448$ 1,491$ 7 Insurance
1,048$ 1,080$ 1,112$ 1,145$ 1,180$ 1,215$ 1,252$ 1,289$ 1,328$ 1,368$ 8 Maintenance & Structural Repairs
1,569$ 1,616$ 1,664$ 1,714$ 1,766$ 1,819$ 1,873$ 1,929$ 1,987$ 2,047$ 9 Management Fees
6,725$ 6,927$ 7,135$ 7,349$ 7,569$ 7,796$ 8,030$ 8,271$ 8,519$ 8,775$ 10 Misc. Operating Expenses
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 11 Property Taxes
1,210$ 1,246$ 1,283$ 1,322$ 1,361$ 1,402$ 1,444$ 1,488$ 1,532$ 1,578$ 12 Reserves
11,695$ 12,045$ 12,407$ 12,779$ 13,162$ 13,557$ 13,964$ 14,383$ 14,814$ 15,259$ 13 Total Operating Expenses
9,748$ 9,826$ 9,902$ 9,976$ 10,048$ 10,117$ 10,184$ 10,248$ 10,309$ 10,367$ 14 Net Operating Income
6,855$ 6,855$ 6,855$ 6,855$ 6,855$ 6,855$ 6,855$ 6,855$ 6,855$ 6,855$ 15 Debt Service First Mortgage
16 Debt Service Subordinate Mortgage(s)
6,855$ 6,855$ 6,855$ 6,855$ 6,855$ 6,855$ 6,855$ 6,855$ 6,855$ 6,855$ 17 Total Debt Service
2,893$ 2,971$ 3,047$ 3,121$ 3,193$ 3,262$ 3,329$ 3,393$ 3,454$ 3,512$ 18 Cash Flow
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 18(b)Equity Investment In Project
#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!19 Cash -on- Cash ROI
Cash Flow divided by Equity Investmentt in Project
1.42 1.43 1.44 1.46 1.47 1.48 1.49 1.49 1.50 1.51 Debt Coverage Ratio
The Housing Fellowship Rental Rehab 10-8-2015
YR11 YR12 YR13 YR14 YR15 YR16 YR17 YR18 YR19 YR20 Line Description
Determining Taxes
2,892.82$ 2,970.83$ 3,046.89$ 3,120.86$ 3,192.59$ 3,261.92$ 3,328.69$ 3,392.72$ 3,453.85$ 3,511.88$ 20 Cash Flow
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 21 Depreciation Expenses
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 22 Amortization of Fees
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 23 Principal Payments
900.00$ 900.00$ 900.00$ 900.00$ 900.00$ 900.00$ 900.00$ 900.00$ 900.00$ 900.00$ 24 Reserves
3,792.82$ 3,870.83$ 3,946.89$ 4,020.86$ 4,092.59$ 4,161.92$ 4,228.69$ 4,292.72$ 4,353.85$ 4,411.88$ 25 Earnings (Loss) Before Taxes
0%0%0%0%0%0%0%0%0%0%26 x Tax Rate (35% or 0%)
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 27 Tax Incurred (Saved)
Cash Flow After Tax
2,892.82$ 2,970.83$ 3,046.89$ 3,120.86$ 3,192.59$ 3,261.92$ 3,328.69$ 3,392.72$ 3,453.85$ 3,511.88$ 28 Cash Flow
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 29 Tax Incurred (Tax Saved)
2,892.82$ 2,970.83$ 3,046.89$ 3,120.86$ 3,192.59$ 3,261.92$ 3,328.69$ 3,392.72$ 3,453.85$ 3,511.88$ 30 Cash Flow After Tax
Line Total Benefit Analysis
2,892.82$ 2,970.83$ 3,046.89$ 3,120.86$ 3,192.59$ 3,261.92$ 3,328.69$ 3,392.72$ 3,453.85$ 3,511.88$ 31 Cash Flow After Tax
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 32 Rehabilitation Tax Credit
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 33 Low Income Housing Tax Credit
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 34 Net Sale Proceeds
2,892.82$ 2,970.83$ 3,046.89$ 3,120.86$ 3,192.59$ 3,261.92$ 3,328.69$ 3,392.72$ 3,453.85$ 3,511.88$ 35 Total Benefits After Tax (NCFAT)
#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!36 Return on Investment
Housing 3 FY16 Mid-Year CDBG Funding Request
Housing
Project Name:
Type of Project (check one): Homeownership X Rental Tenant Based Rent Asst. Rehabilitation
(Rental and Rental Rehabilitation projects require the completion of rental housing pro forma)
General Information
1. Lead Applicant Name: Systems Unlimited Inc.
Applicant Address: 2533 Scott Boulevard Iowa City, IA.
Contact Person and Title: Casey Westhoff, Executive Director
Phone Number: 319-338-9212 ext.126
E-mail Address: casey.westhoff@sui.org
2. Lead Applicant DUNS Number: 087119194
3. Secondary Applicant (if applicable):
Applicant Address:
Contact Person and Title:
Phone Number:
E-mail Address:
4. Type of Applicant (check one):
Community Housing Development Organization X Private non-profit organization
Private for-profit, individual or partnership applicant Public Organization
5. Amount of CDBG Funds Requested: $150,000
6. Provide a brief description of the proposed project & complete the table below. Systems Unlimited serves people with intellectual and developmental disabilities through
Supported Community Living in Johnson and surrounding communities. This project would
allow for the purchase of a 3 bedroom home in Iowa City to replace a current rental home
leased by Systems Unlimited. This project would provide long-term, accessible and
affordable living in Iowa City for 3 people with significant intellectual disabilities.
Type of Units: Total Number of Units Proposed:
Single Room Occupancy
Efficiency
1 - Bedroom
2 - Bedroom
3 - Bedroom 1
4+ Bedrooms
Housing 4 FY16 Mid-Year CDBG Funding Request
Section 1 – Need/Priority
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.icgov.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.)
This project seeks down payment assistance in the purchase of property.
7b. How will this project meet the needs identified in the 2016-2020 CITY STEPS (www.icgov.org/actionplan)
This project seeks down payment assistance ($50,000) for the purchase of an existing home in Iowa City for 3 people currently served by Systems Unlimited Inc. The people who have been identified to reside in the home will meet the classification low/moderate individuals with special needs. The CITY STEPS action plan states “Iowa City will invest its CDBG funds in the areas primarily impacted by non-student LMI persons. CDBG funds will be focused in areas that are home to families, the elderly, the disabled and the homeless.
The project will allow people with significant disabilities to establish permanent, affordable and
accessible housing that will empower them to achieve the highest level of self sufficiency, while
taking advantage of the great civic and cultural activities offered in Iowa City.
7c. Will this project address the established priorities in the City’s Strategic Plan? Please identify the priority(s).
MA-10 Number of Housing Units-91.20 (a) (b) 2. Does the availability of housing units meet the needs of the population? No. This project will assist the city to reach its goals and priorities by assisting 3 individuals achieve permanent, affordable housing in Iowa City SP-25 Priority Needs 91.215 (a) (2) Iowa City is committed to allocating funds that serve the needs of low to moderate income residents. Households with incomes less than 50% of the area median income, particularly those with extremely low incomes are priorities. The city has also identified special needs individuals as among those who face the greatest challenges and who should receive high priority in the expenditure of federal funds, including persons with
disabilities.
8. Please specify the one most applicable priority need this application addresses, as shown in the 2016-2020
CITY STEPS Plan.
Priority: High
Priority Need Name: Expanding Affordable Rental and Housing Opportunities. Population: Persons with Disabilities and Very Low Income. This application addresses the housing needs of three very low income Iowa city residents with disabilities by offering them an opportunity to live in a home that is custom built to meet their behavior and physical challenges. Existing rental homes in Iowa City do not offer the special features needed for individuals with behavior and destructive tendencies. All three individuals who have been identified to benefit from this project have one or more of the following diagnoses: severe/profound intellectual disability, Autism, Co-Occurring Disorder, Obsessive Compulsive
Disorder, Psychotic Disorder and Seizure Disorders. Behaviors exhibited by these individuals
include: self-injury, physical aggression, destruction of property, hyperactivity, impulsivity and
elopement.
Housing 5 FY16 Mid-Year CDBG Funding Request
Section 2 – Leveraging Resources/Budget
9. Please provide the requested loan terms and affordability period:
Principal Amount
Interest Rate
Loan Amortization (Years)
Affordability Period (Years)
Yearly 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.
*Systems Unlimited seeks a $50,000 grant for the down payment assistance of a 3 bedroom
home in Iowa City for people with intellectual disabilities.
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
Funds:
Funding
Amount
Interest
Rate
Amortization
Term Committed?
Iowa City CDBG Funding
(public)
$50,000 Yes No
State of Iowa HOME or
CDBG (public)
$ Yes No
IFA – Low Income Housing
Tax Credits (public)
$ Yes No
Bank Loan (private) $150,000 6% 20 15 Yes No
Applicant Contribution of
Equity (private)
$ Yes No
Other Public Resources
(please list)
$ Yes No
Other Private Resources
(please list)
$ Yes No
TOTAL $200,000
Housing 6 FY16 Mid-Year CDBG Funding Request
10b. Please provide the uses of funds for the project.
Uses of Funds Amount
Acquisition:
Building Acquisition $200,000
Land Acquisition $
Site Improvements $
Construction $
Professional Fees $
Construction Finance $
Permanent Finance $
Developer Fee $
Reserves $
Other (please specify): $
$
TOTAL (Must equal TOTAL in 10a.) $200,000
Amount of Private Funds $150,000__________ (a)
Amount of Public Funds $50,000___________ (b)
Total Project Funding $ ________________ (c) a + b
Number of bedrooms 3 _______________ (d)
Total Cost Per Unit $66,666____________ (e) c ÷ #Units
10c. What percentage of the proposed budget will be made up of private funds? 75_______%
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 x $10 per hour = $_________________
Skilled labor (_____________ ) _______ hours x $___ per hour = $_________________
Skilled labor (_____________ ) _______ hours x $___ per hour = $_________________
Skilled labor (_____________ ) _______ hours x $___ per hour = $_________________
Total $__0______________
12. Please identify any identity of interest (IOI) relationships with the applicant and/or project owner, i.e. General Partner has a financial interest in the construction company, etc. None
Housing 7 FY16 Mid-Year CDBG Funding Request
13. Describe what efforts have been taken to secure private or other public funding. This is Systems
Unlimited first attempt to secure private/public funding for the project. We do not anticipate any
concerns with securing private funding.
Section 3 – Feasibility/Need for Subsidy
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). If
applicant plans to apply for funds not committed to the project yet, include the anticipated date for application. Please Note: If funded, this schedule will be used for any project agreement for the use of CDBG funding.
Date: Description of Activity:
12-01-2015 Project Start Date
01-01-2016 Identification of housing.
03-01-2016 Closing on property.
03-01-2016
04-30-2016
Remodel/make necessary modifications in order to make accessible.
05-01-2016 3 Iowa City residents move into new property.
15. 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).
This project expands the number of affordable housing units to people with disabilities (special needs population) in Iowa City. The 2014 HUD Fair Market Rate (FMR) for 3BDR
Iowa City unit is $1254. The projected initial rental rate for this project is $1000-$1200 per
unit, depending upon final costs. Three individuals, who currently reside together and
targeted for the project, currently pay $1450 per month plus utilities for a 3 bedroom home
on Iowa City’s east side.
16. 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 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. HOME funds will allow these units to be priced well under FMR for Iowa City. These funds will allow for ‘permanent affordability’ as they allow for loans to be paid off in shorter time frames, lower interest rates, and lower loan amounts. Income levels for people with intellectual disabilities (served through this project) do not generally reflect significant
fluctuations during their lifetime; therefore, affordable, accessible housing is a long-term
need.
17. Explain why this project needs and is worthy of the requested public subsidy.
Housing 8 FY16 Mid-Year CDBG Funding Request
HOME funds will allow these units to be priced well under FMR for Iowa City. These funds
will allow for ‘permanent affordability’ as they allow for loans to be paid off in shorter time
frames, lower interest rates, and lower loan amounts. Income levels for people with intellectual disabilities (served through this project) do not generally reflect significant fluctuations during their lifetime; therefore, affordable, accessible housing is a long-term need.
18. If funding is granted for this project, what steps are in place to decrease the likelihood it will require further
subsidy in the future?
This project will benefit three Iowa City residents for a lifetime. Individuals with intellectual
disabilities and autism, who exhibit behaviors such as destruction of property, still deserve
an adequate home environment, which allow them to participate in community activities.
Custom “Homes that Work’ can be the difference maker for these individuals and their
caretakers to successfully live in the community for a lifetime. The individuals that will
benefit from the project are worthy of our support and public subsidy. If they continue
renting typical market homes in Iowa City, damages and fees will continue to mount. Institutional care may need to be considered if appropriate and affordable housing can not be secured-which will cost the public taxpayer significantly more money than community-based housing.
19. If partial funds are awarded, will the project/program continue? X Yes No
If yes, at what level? Depending upon the amount of the award, it is likely the project would
continue as planned.
Reminder: Rental housing (including acquisition, rental rehab, and new
construction) projects MUST complete and submit the pro forma (excel
format) provided by the City with this application.
Rental housing applications submitted without the City’s pro forma will
not be considered.
Section 4 – Impact/Benefit to the Community
20. 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.
The target population will be people with disabilities (Special Needs Population.) Systems
Unlimited provides services in many neighborhoods in Iowa City and surrounding communities.
The population served by this project (low income, special needs) often brings out the best in
neighborhoods-people are quick to recognize that these individuals are great neighbors who want and deserve an opportunity to enjoy their homes and community- just like every citizen. 21. Identify the location of the proposed project. As funds are secured a location in Iowa City will be finalized. Systems Unlimited will work with the identified tenants to determine best location based upon ‘walkability’ factors and accessibility to public transportation, parks and amenities.
Housing 9 FY16 Mid-Year CDBG Funding Request
22. Also, please indicate the number of persons or households that will be served by the proposed project by
income category. (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 ___3__ households (a)
Number between 31 – 50% median income _______ households (b)
Number between 51 – 60% median income _______ households (c)
Number between 61 - 80% median income _______ households (d)
Number over 80% median income _______ households (e)
Total _______ households (f)
Percent LMI __100%__ (a+b+c+d) ÷ f
23. Does the proposed project pay full property taxes? Yes X 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?
Yes XNo If yes, what is the percent of full taxes paid? _____% and amount paid is $ _____________
24. Does your project represent an innovative solution to meet the specific need it is intended to satisfy? If so,
please explain. Providers of people with intellectual disabilities who work with people with extremely challenging behaviors are under pressure to serve people in community-based housing. To custom design homes for people with physical challenges is not that uncommon (wheelchair accessibility, wider halls, etc). To custom design and build a home for people with behavior challenges and autism is innovative and needed.
Housing 10 FY16 Mid-Year CDBG Funding Request
Section 5 – Capacity/History of the Applicant
25. 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 Budgeted Amount
Amount Expended (as of 10/8/15) Date All Units Completed
FY13 (July 2012 - June 2013) $ $
FY14 (July 2013 - June 2014) $ $
FY15 (July 2014 - June 2015) $184,000 $160,000 September 2015
FY16 (July 2015 - June 2016)* $50,000 $
*Eight months remaining in FY16 at time of this application.
26. 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? X 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.
27. 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.
Project Manager: Casey Westhoff, Systems Unlimited Inc. Executive Director, 14 years of
experience as Executive Director in non-profit organizations serving people with disabilities. 30 years in Human Services Field. Obtained, implemented and managed awards from public and private sector ranging in scope and reporting requirements. He has previous experience with building and housing projects for people with disabilities (DAC Inc. Lutheran Services in Iowa).
Housing 11 FY16 Mid-Year CDBG Funding Request
Key staff: Michelle Lloyd Director of Finance, over 30 years experience in
Finance/Accounting for both non-profits and for profit business including 16 years with
Systems Unlimited Inc. Current responsibilities include oversight of System Unlimited owned
homes, leased homes and maintenance staff. Has experience with administration of CDBG awards including receipts, project reports, etc. Key Staff: Muriel Nisley, Senior Accountant/HUD Project Manager, over 15 years of experience with Systems Unlimited overseeing two HUD Corporations that house 84 people with disabilities in Iowa City and surrounding communities. She was the facilitator of the three Federal government appropriations to Systems Unlimited in the past 15 years. Key Staff: Marc Hines, Director of Supported Living, over 8 years of experience working with Systems Unlimited. Focus areas are training of staff in appropriate behavioral interventions and oversight of 35 agency homes which serve people with intellectual disabilities
28. Please describe your organization’s structure, officers and staff, as it relates to the overhead cost for this
project.
This project will be administered by the Executive Director of Systems Unlimited with
support from the key staff listed. Once project is complete, the Director of Supported Community Living will oversee program and service implementation. Additional costs for overhead have not been written into costs.
29. 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.
Systems Unlimited Inc has been in existence since 1971 providing Supported Community Living (SCL) services to people with intellectual and developmental disabilities. In 2014,
Systems Unlimited provided services to over 300 individuals in the SCL Division in eight
Eastern Iowa counties. Systems Unlimited currently employs over 1000 people in a variety of
positions with over 500 Direct Support Professionals providing the day- to-day direct
support to people served.
Systems Unlimited currently owns 16 single-family homes in Iowa City. Four of these homes have gone through extensive renovations within the past two years in which private financing and donations were utilized. One home is slated for extensive renovations in 2015 that will utilize Housing Trust Funds of Johnson County (HTFJC) for a portion of the project. Systems Unlimited most recent purchase (2015) of a single family home was on California Ave. in Iowa City with assistance from CDBG/Home funds. System Unlimited Building Corporation (HUD #1) manages 25 homes that serve a total of 77 people in 6 communities (Iowa City, Washington, Coralville, Williamsburg, Monticello and
Vinton). HUD’s extensive documentation and reporting requirements, including on-site
visits, has allowed Systems Unlimited to gain extensive experience in property management
for public entities. The most recent Management and Occupancy Review from HUD
(December, 2014) reported ‘0 Findings” and a “Superior” rating.
Systems Unlimited Building Corporation (HUD #2) manages two homes that serve a total of 6 individuals in Iowa City. This Corporation was formed approximately 10 years after the initial HUD development building project and is overseen by same (HUD #1) Manager. Systems Unlimited holds the property lease for 6 other single family homes in which individuals served reside. Landlords negotiate leases with the agency who in turn sublease properties back to the individuals served.
Proforma Spread Sheet
FY16 Rental Housing Projects
Please enter information into "grey" fields only if you are using excel.
Line Description Symbols YR1 YR2 YR3 YR4 YR5 YR6 YR7 YR8 YR9 YR10
Revenues
1 Gross Rental Income + G. Rent 12,600.00$ 12,852.00$ 13,109.04$ 13,371.22$ 13,638.65$ 13,911.42$ 14,189.65$ 14,473.44$ 14,762.91$ 15,058.17$
2 Other Income + O. Income -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
3 Tenant Contributions +T. Contrubution -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
4 Gross Revenues = G. Income 12,600.00$ 12,852.00$ 13,109.04$ 13,371.22$ 13,638.65$ 13,911.42$ 14,189.65$ 14,473.44$ 14,762.91$ 15,058.17$
5 Vacancy Loss - Vac 630.00$ 642.60$ 655.45$ 668.56$ 681.93$ 695.57$ 709.48$ 723.67$ 738.15$ 752.91$
(5% Vac. Rate x Gross Income)
6 Effective Gross Income = EGI 11,970.00$ 12,209.40$ 12,453.59$ 12,702.66$ 12,956.71$ 13,215.85$ 13,480.16$ 13,749.77$ 14,024.76$ 14,305.26$
Operating Expenses
7 Insurance 625.00$ 643.75$ 663.06$ 682.95$ 703.44$ 724.55$ 746.28$ 768.67$ 791.73$ 815.48$
8 Maintenance & Structural Repairs 600.00$ 618.00$ 636.54$ 655.64$ 675.31$ 695.56$ 716.43$ 737.92$ 760.06$ 782.86$
9 Management Fees -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
10 Misc. Operating Expenses 600.00$ 618.00$ 636.54$ 655.64$ 675.31$ 695.56$ 716.43$ 737.92$ 760.06$ 782.86$
11 Property Tax -$ -$ -$ -$ -$ -$ -$ -$ -$
12 Reserves (Operating reserve no less than $350/unit)350.00$ 360.50$ 371.32$ 382.45$ 393.93$ 405.75$ 417.92$ 430.46$ 443.37$ 456.67$
13 Total Operating Expenses - OPR. Expenses 2,175.00$ 2,240.25$ 2,307.46$ 2,376.68$ 2,447.98$ 2,521.42$ 2,597.06$ 2,674.98$ 2,755.22$ 2,837.88$
14 Net Operating Income =NOI 9,795.00$ 9,969.15$ 10,146.13$ 10,325.98$ 10,508.73$ 10,694.43$ 10,883.10$ 11,074.79$ 11,269.54$ 11,467.38$
15 Debt Service First Mortgage 8,640.00$ 8,640.00$ 8,640.00$ 8,640.00$ 8,640.00$ 8,640.00$ 8,640.00$ 8,640.00$ 8,640.00$ 8,640.00$
16 Debt Service Subordinate Mortgage(s)
17 Total Debt Service -D\S 8,640.00$ 8,640.00$ 8,640.00$ 8,640.00$ 8,640.00$ 8,640.00$ 8,640.00$ 8,640.00$ 8,640.00$ 8,640.00$
18 Cash Flow =CF 1,155.00$ 1,329.15$ 1,506.13$ 1,685.98$ 1,868.73$ 2,054.43$ 2,243.10$ 2,434.79$ 2,629.54$ 2,827.38$
18(b)Equity Investment In Project 200,000.00$ 200,000.00$ 200,000.00$ 200,000.00$ 200,000.00$ 200,000.00$ 200,000.00$ 200,000.00$ 200,000.00$ 200,000.00$
19 Cash -on- Cash ROI CF 0.6%0.7%0.8%0.8%0.9%1.0%1.1%1.2%1.3%1.4%
Cash Flow divided by Equity Investmentt in Project Equity Invest.
Debt Coverage Ratio (after Year 3, shall be no less than 1.20 DCR 1.133680556 1.153836806 1.17432066 1.195136405 1.216288344 1.237780799 1.259618103 1.281804605 1.30434466 1.327242636
during compliance period. Encourage 1.20-1.50.)
The total of items
#7-10 shall be no less than $2,750/unit
Line YR1 YR2 YR3 YR4 YR5 YR6 YR7 YR8 YR9 YR10
Determining Taxes
20 Cash Flow CF 1,155.00$ 1,329.15$ 1,506.13$ 1,685.98$ 1,868.73$ 2,054.43$ 2,243.10$ 2,434.79$ 2,629.54$ 2,827.38$
21 Depreciation Expenses - DEPR 5,666.67$ 5,666.67$ 5,666.67$ 5,666.67$ 5,666.67$ 5,666.67$ 5,666.67$ 5,666.67$ 5,666.67$ 5,666.67$
22 Amortization of Fees -AMORTZ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
23 Principal Payments +P -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
24 Reserves +RESERVES 350.00$ 350.00$ 350.00$ 350.00$ 350.00$ 350.00$ 350.00$ 350.00$ 350.00$ 350.00$
25 Earnings (Loss) Before Taxes =EBTx (4,161.67)$ (3,987.52)$ (3,810.54)$ (3,630.69)$ (3,447.94)$ (3,262.24)$ (3,073.57)$ (2,881.88)$ (2,687.13)$ (2,489.29)$
26 x Tax Rate (35% or 0%)xRATE 0%0%0%0%0%0%0%0%0%0%
27 Tax Incurred (Saved)=TAX or (Savings)-$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Cash Flow After Tax
28 Cash Flow CF 1,155.00$ 1,329.15$ 1,506.13$ 1,685.98$ 1,868.73$ 2,054.43$ 2,243.10$ 2,434.79$ 2,629.54$ 2,827.38$
29 Tax Incurred (Tax Saved)- TAX (+SAV)-$ -$ -$ -$ -$ -$ -$ -$ -$ -$
30 Cash Flow After Tax =CFATx 1,155.00$ 1,329.15$ 1,506.13$ 1,685.98$ 1,868.73$ 2,054.43$ 2,243.10$ 2,434.79$ 2,629.54$ 2,827.38$
Line Total Benefit Analysis
31 Cash Flow After Tax CFATx 1,155.00$ 1,329.15$ 1,506.13$ 1,685.98$ 1,868.73$ 2,054.43$ 2,243.10$ 2,434.79$ 2,629.54$ 2,827.38$
32 Rehabilitation Tax Credit +RTC -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
33 Low Income Housing Tax Credit +LIHTC -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
34 Net Sale Proceeds +NSP -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
35 Total Benefits After Tax (NCFAT)=NCFATx 1,155.00$ 1,329.15$ 1,506.13$ 1,685.98$ 1,868.73$ 2,054.43$ 2,243.10$ 2,434.79$ 2,629.54$ 2,827.38$
36 Return on Investment ROI 0.58%0.66%0.75%0.84%0.93%1.03%1.12%1.22%1.31%1.41%
YR11 YR12 YR13 YR14 YR15 YR16 YR17 YR18 YR19 YR20 Line Description
Revenues
15,359.33$ 15,666.52$ 15,979.85$ 16,299.44$ 16,625.43$ 16,957.94$ 17,297.10$ 17,643.04$ 17,995.90$ 18,355.82$ 1 Gross Rental Income
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 2 Other Income
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 3 Tenant Contributions
15,359.33$ 15,666.52$ 15,979.85$ 16,299.44$ 16,625.43$ 16,957.94$ 17,297.10$ 17,643.04$ 17,995.90$ 18,355.82$ 4 Gross Revenues
767.97$ 783.33$ 798.99$ 814.97$ 831.27$ 847.90$ 864.85$ 882.15$ 899.80$ 917.79$ 5 Vacancy Loss
(5% Vac. Rate x Gross Income)
14,591.36$ 14,883.19$ 15,180.85$ 15,484.47$ 15,794.16$ 16,110.04$ 16,432.24$ 16,760.89$ 17,096.11$ 17,438.03$ 6 Effective Gross Income
Operating Expenses
839.95$ 865.15$ 891.10$ 917.83$ 945.37$ 973.73$ 1,002.94$ 1,033.03$ 1,064.02$ 1,095.94$ 7 Insurance
806.35$ 830.54$ 855.46$ 881.12$ 907.55$ 934.78$ 962.82$ 991.71$ 1,021.46$ 1,052.10$ 8 Maintenance & Structural Repairs
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 9 Management Fees
806.35$ 830.54$ 855.46$ 881.12$ 907.55$ 934.78$ 962.82$ 991.71$ 1,021.46$ 1,052.10$ 10 Misc. Operating Expenses
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 11 Property Taxes
470.37$ 484.48$ 499.02$ 513.99$ 529.41$ 545.29$ 561.65$ 578.50$ 595.85$ 613.73$ 12 Reserves
2,923.02$ 3,010.71$ 3,101.03$ 3,194.06$ 3,289.88$ 3,388.58$ 3,490.24$ 3,594.94$ 3,702.79$ 3,813.88$ 13 Total Operating Expenses
11,668.35$ 11,872.48$ 12,079.82$ 12,290.41$ 12,504.28$ 12,721.46$ 12,942.01$ 13,165.95$ 13,393.32$ 13,624.15$ 14 Net Operating Income
8,640.00$ 8,640.00$ 8,640.00$ 8,640.00$ 8,640.00$ 8,640.00$ 8,640.00$ 8,640.00$ 8,640.00$ 8,640.00$ 15 Debt Service First Mortgage
16 Debt Service Subordinate Mortgage(s)
8,640.00$ 8,640.00$ 8,640.00$ 8,640.00$ 8,640.00$ 8,640.00$ 8,640.00$ 8,640.00$ 8,640.00$ 8,640.00$ 17 Total Debt Service
3,028.35$ 3,232.48$ 3,439.82$ 3,650.41$ 3,864.28$ 4,081.46$ 4,302.01$ 4,525.95$ 4,753.32$ 4,984.15$ 18 Cash Flow
200,000.00$ 200,000.00$ 200,000.00$ 200,000.00$ 200,000.00$ 200,000.00$ 200,000.00$ 200,000.00$ 200,000.00$ 200,000.00$ 18(b)Equity Investment In Project
1.5%1.6%1.7%1.8%1.9%2.0%2.2%2.3%2.4%2.5%19 Cash -on- Cash ROI
Cash Flow divided by Equity Investmentt in Project
1.350502903 1.374129838 1.398127819 1.42250122 1.447254415 1.472391768 1.497917637 1.523836364 1.550152277 1.576869684 Debt Coverage Ratio
YR11 YR12 YR13 YR14 YR15 YR16 YR17 YR18 YR19 YR20 Line Description
Determining Taxes
3,028.35$ 3,232.48$ 3,439.82$ 3,650.41$ 3,864.28$ 4,081.46$ 4,302.01$ 4,525.95$ 4,753.32$ 4,984.15$ 20 Cash Flow
5,666.67$ 5,666.67$ 5,666.67$ 5,666.67$ 5,666.67$ 5,666.67$ 5,666.67$ 5,666.67$ 5,666.67$ 5,666.67$ 21 Depreciation Expenses
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 22 Amortization of Fees
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 23 Principal Payments
350.00$ 350.00$ 350.00$ 350.00$ 350.00$ 350.00$ 350.00$ 350.00$ 350.00$ 350.00$ 24 Reserves
(2,288.32)$ (2,084.19)$ (1,876.85)$ (1,666.26)$ (1,452.39)$ (1,235.21)$ (1,014.66)$ (790.72)$ (563.35)$ (332.52)$ 25 Earnings (Loss) Before Taxes
0%0%0%0%0%0%0%0%0%0%26 x Tax Rate (35% or 0%)
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 27 Tax Incurred (Saved)
Cash Flow After Tax
3,028.35$ 3,232.48$ 3,439.82$ 3,650.41$ 3,864.28$ 4,081.46$ 4,302.01$ 4,525.95$ 4,753.32$ 4,984.15$ 28 Cash Flow
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 29 Tax Incurred (Tax Saved)
3,028.35$ 3,232.48$ 3,439.82$ 3,650.41$ 3,864.28$ 4,081.46$ 4,302.01$ 4,525.95$ 4,753.32$ 4,984.15$ 30 Cash Flow After Tax
Line Total Benefit Analysis
3,028.35$ 3,232.48$ 3,439.82$ 3,650.41$ 3,864.28$ 4,081.46$ 4,302.01$ 4,525.95$ 4,753.32$ 4,984.15$ 31 Cash Flow After Tax
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 32 Rehabilitation Tax Credit
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 33 Low Income Housing Tax Credit
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 34 Net Sale Proceeds
3,028.35$ 3,232.48$ 3,439.82$ 3,650.41$ 3,864.28$ 4,081.46$ 4,302.01$ 4,525.95$ 4,753.32$ 4,984.15$ 35 Total Benefits After Tax (NCFAT)
1.51%1.62%1.72%1.83%1.93%2.04%2.15%2.26%2.38%2.49%36 Return on Investment
Public Facility, Planning & Other Projects 3 FY16 Mid-Year CDBG Funding Request
Public Facility, Planning, and Other Projects
1. Name of Project: Repair of disabled assistance door mechanism
2. Total Amount of CDBG Funds Requested: $ 24,255
3. Applicant Name: The Crisis Center of Johnson County
Applicant Address: 1121 Gilbert Court, Iowa City, IA 52240-4528 4. DUNS Number: 16-849-0613
5. Contact Person: Becci Reedus
Phone Number: 319-351-2726 ext. 109
Fax Number: 319-351-4671 Email Address: becci.reedus@jccrisiscenter.org 6. Location of proposed project: 1121 Gilbert Court, Iowa City, IA 52240-4528
7. Brief summary of the proposed project (please limit response to a paragraph).
The Crisis Center is requesting assistance with facility repairs and/or upgrades. We have unexpected repairs
beyond our budget this year. These issues, without repair, often make it difficult, or sometimes impossible to
provide services. We are requesting $24,255 in financial assistance for:
1. replacement motors for three ADA accessible doors
2. replacement of the condenser on the walk-in freezer in the food bank
3. broken window replacement in the client shopping area
4. installation of ceiling fans to help with temperature control in the client shopping area
5. installation of security cameras exterior to the Crisis Center building
Public Facility, Planning & Other Projects 4 FY16 Mid-Year CDBG Funding Request
Section 1 – Need/Priority
8. Please specify the one most applicable priority need this application addresses, as shown in CITY STEPS
2016-2020 (www.icgov.org/actionplan).
Priority Need: Homeless
• This priority was chosen because the greatest number of persons to be served are identified as homeless or near-homeless
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.
We request for financial assistance for unanticipated repairs and/or replacement of equipment for The Crisis
Center. We provide supplemental food and emergency financial assistance to all residents in Johnson County.
According to the latest data published by Feeding America, the rate of food insecurity in Johnson County is 14%
or 18,760 individuals in Johnson County who lack consistent access to adequate food limited by a lack of money
and other resources. In FY15, The Crisis Center served 10,023 individuals in Iowa City with supplemental food,
or 53% of those identified as food insecure in our county. Families who seek services at the Crisis Center make
difficult choices in determining how to allocate their limited financial resources. In a recent survey,
approximately 80% of our clients reported spending fifty percent or more of their monthly income on housing
costs. Individuals and families may visit the Crisis Center once a week to supplement their food budgets.
The majority of our building (90%)is used for program purposes, and recently, the Crisis Center remodeled a
portion of our facility to create additional offices and program space. Because of the growth in services we have
limited ability for other organizations to utilize our 1121 Gilbert Court facility. However, we are a “satellite” spot
for other agencies and programs to provides services, such as Johnson County Health Department, who uses our
location and access to individuals to provide HIV testing once a month.
9b. Will this project address the established priorities in the City’s Strategic Plan? Please identify the priority(s). (www.icgov.org/strategicplan)
Public facility improvements are a priority in the CITY STEPS plan noting that facility improvements for service
providers and accessibility modifications are specified as the goals the city will address.
Public Facility, Planning & Other Projects 5 FY16 Mid-Year CDBG Funding Request
Section 2 – Leveraging Resources\Budget
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. 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 (e.g. 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
In
-Ki
n
d
Ca
s
h
An
t
i
c
ip
a
t
e
d
Da
t
e
Co
m
m
it
t ed
$ Please place an “xX” in the box that applies:
Ceiling fans $1,200 $500 private x
Window replacement $500 $500 private x
ADA door replacement $8,400 $4,200 private x
Security Cameras,
exterior
$8,955 $0
Replace freezer
condenser
$5,200 $1,800 private x
$ $
Total $24,255 $7000
Amount of private\agency\other funds $__________7,000_______________ (a)
Amount of CDBG funds $___________24,255______________ (b)
Total Project Funding $_________31,255________________ (c) (a + b) Number of persons assisted ____________13,590______________ (d) (see
question 19)
Total cost per person $____________________2.30_____ (e) (c ÷ d) Total CDBG Cost Per Person $____________________1.78_____ (f) (b ÷ d)
Public Facility, Planning & Other Projects 6 FY16 Mid-Year CDBG Funding Request
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 x $10 per hour = $
Skilled labor (_____________ ) _______ hours x $___ per hour = $
Skilled labor (_____________ ) _______ hours x $___ per hour = $
Total $
12. What percentage of the proposed budget will be made up of private funds? _22_%
13. Describe what efforts have been taken to secure private or other public funding?
We received funds from a private foundation to address some of our facility issues.
Public Facility, Planning & Other Projects 7 FY16 Mid-Year CDBG Funding Request
Section 3 – Feasibility/Need for Subsidy
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: If funded, this schedule will be used for any project agreement for the use of CDBG
funding.
Date: Description of Activity:
December 1, 2015 Council approval of funding and project start date
January 2016 Installation of doors
April 2016 Installation of freezer condenser
March 2016 Installation of security cameras
April 2016 Installation of ceiling fans
May 2016 Window replacement in the client shopping area
15. Explain why this project needs and is worthy of the requested public subsidy.
Since 2008, we have experienced a rise in the demand for all of our services, however the number of individuals
and families who seek help from the Food Bank has resulted in a 65% increase in services in that seven year
period of time. Prior to 2008, the Crisis Center received CDBG funding for a warehouse addition to the food bank and our facility remains the most suitable operations space for our programs. However, the age of our building and program equipment, along with the increase in services sometimes create difficulty in the ability to meet all the increase costs. In order to continue to serve our families without compromising the direct assistance we give to them, we are seeking financial assistance for these facility projects.
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?
For the past five years, The Crisis Center, through the budget process, has been allocating funding to repairs and maintenance of our building and equipment. Many issues of the building have been addressed since 2008 with a combination of CDBG awards and Crisis Center funding. A remodel of our crisis intervention program space was completed early 2015 through our own budget. This remodel provided us with more office and program space
we desperately need because of increased services. We have a maintenance plan and annually allocate funds
to address the plan.
17.In what manner or form will the project proceed if it is awarded less than full funding? If the project has several individual
If we receive partial funding, we will prioritize the proposed projects and complete the more urgent repairs of the ADA doors and the freezer condenser.
Public Facility, Planning & Other Projects 8 FY16 Mid-Year CDBG Funding Request
Section 4 – Impact/Benefit to the Community
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 ____12,430___ persons (a)
Number between 31 - 50% median income ____960___ persons (b)
Number between 51 - 80% median income _____177__ persons (c)
Number over 80% median income _____23__ persons (d)
Total ____13,590___ persons (e)
Percent LMI _____98__% (a + b + c) ÷ e
Percent Iowa City Residents ___76____%
Please describe the basis or methodology used to estimate the number of clients to be served
(i.e. survey, last year’s reports, etc.)
We track service delivery on a monthly basis and review quarterly and annual trends in order to project
service numbers for budgeting purposes.
19. Does your project represent an innovative solution to meet the specific need it is intended to satisfy? If so,
please explain. no
20. Does the proposed project pay full property taxes? Yes 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?
Yes No If yes, what is the percent of full taxes paid? _____% and amount paid is $ _______________
Public Facility, Planning & Other Projects 9 FY16 Mid-Year CDBG Funding Request
Section 5 – Capacity/History of the Applicant
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)
Fiscal Year Funds Recv’d
Budgeted
Amount
Amount
Expended
(as of 10/8/15)
Date All Units
Completed
FY13 (July 2012 - June 2013) $187,400 $187,400 10/2013
FY14 (July 2013 - June 2014) $100,000 $100,000 08/2014
FY15 (July 2014 - June 2015) $ $
FY16 (July 2015 - June 2016)* $ $
*Eight months remaining in FY16 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 the 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.
n/a
24. Please describe your organization’s structure, officers and staff, as it relates to the overhead cost for this project.
We do not anticipate overhead cost to complete these projects beyond the normal time the administrative staff
spend on facility
Public Facility, Planning, and Other Projects !!
1. Name of Project: CSCC Child Care Expansion !
2. Total Amount of CDBG Funds Requested: $35,000 !
3. Applicant Name: Community Serving Community Center !
A p p l i c a n t A d d r e s s : 2 0 2 4 G S t r e e t , I o w a C i t y , I o w a 5 2 2 4 0
4. DUNS Number: !
5. Contact Person: Thomas McInerney !
P h o n e N u m b e r : 3 1 9 - 3 3 1 - 0 3 6 5 !
F a x N u m b e r : N / A !
E m a i l A d d r e s s : t h o m a s @ t h o m a s a r c h i t e c t . c o m
6. Location of proposed project: 921 3rd Street, Iowa City !
7. Brief summary of the proposed project (please limit response to a paragraph). !
The proposed project is to provide accessibility to an existing basement of the King of Glory Church, 921 3rd
Street, Iowa City. The proposed improvements would allow approximately 35 children of pre-school age to occupy
the facility. The Community Serving Community Center child care facility is adjacent to the church and the
improvements would allow an expansion of the child care services to low-income families. Improvements include
providing a ramp with an entrance and one accessible restroom at the basement level. !!
Public Facility, Planning & Other Projects ! FY16 Mid-Year CDBG Funding Request4
!
8. Please specify the one most applicable priority need this application addresses, as shown in CITY STEPS
2016-2020 (www.icgov.org/actionplan).
P r i o r i t y N e e d :
P r o v i d e p u b l i c s e r v i c e s - P r o p o s e d f u n d i n g s h a l l i n c r e a s e t h e e f f e c t i v e n e s s o f p h y s i c a l i n v e s t m e n t s t h a t
i m p r o v e c o n d i t i o n s f o r t h e e l d e r l y , y o u t h , l o w - i n c o m e p e r s o n s , a n d o t h e r s p e c i a l p o p u l a t i o n s .
!
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.
By providing affordable child care services for low income families during the week, families will have more
opportunities for economic advancement. !
During off hours of child care operations, the accessible space shall be used for educational programming (not
funded by the local school district) such as American cultural studies and English language classes for non-English
speaking adult individuals. !!!
9b. Will this project address the established priorities in the City’s Strategic Plan? Please identify the priority(s).
(www.icgov.org/strategicplan) !
This proposed project shall foster a more INCLUSIVE and SUSTAINABLE Iowa City through a commitment to
Healthy Neighborhoods. !!!
Section 1 – Need/Priority
Public Facility, Planning & Other Projects ! FY16 Mid-Year CDBG Funding Request5
!
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. The Housing and Community Development
Commission may request a copy of your overall agency budget.
!!
Amount of private\agency\other funds $0________________________ (a) !
Amount of CDBG funds $35000____________________ (b) !
Total Project Funding $35000_____________________ ( c ) (a + b) !
Number of persons assisted 35 (d) (see question 19) !
Total cost per person $1000 (e) (c ÷ d) !
Total CDBG Cost Per Person $1000 (f) (b ÷ d) !
Section 2 – Leveraging Resources\Budget
!Budget Breakdown
(Include only those costs directly related to the project.)
Expense Category
(e.g. 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
In-
Kin
d
Cas
h
Anti
cipa
ted
Dat
e
Co
mm
itte
d
Please place an “X” in the box that applies:
Construction Contract $28500 $0 None
Professional Design Fees $6500 $0 None
$$
$$
$$
$$
Total $35000 $0 None
Public Facility, Planning & Other Projects ! FY16 Mid-Year CDBG Funding Request6
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. !
!
12. What percentage of the proposed budget will be made up of private funds? 100% !
13. Describe what efforts have been taken to secure private or other public funding? !
Currently, the Community Serving Community Center child care facility is paying back a $5,000 loan to the City of
Iowa City and has not been able to secure additional funding for expansion of their facility's service capacity. !
!
Unskilled labor _______ hours x $10 per hour =$0
Skilled labor (_____________ )_______ hours x $___ per hour =$0
Skilled labor (_____________ )_______ hours x $___ per hour =$0
Total $0
Public Facility, Planning & Other Projects ! FY16 Mid-Year CDBG Funding Request7
!
!!
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: If funded, this schedule will be used for any project agreement for the use of CDBG
funding. !
D a t e : D e s c r i p t i o n o f A c t i v i t y :
December 1, 2015 Council approval of funding and project start date
December 15, 2015 Begin Design of Construction Documents
January 11, 2016 Submit Building Permit Application
January 15, 2016 Provide Bidding Documents to Contractors for Bidding
March 1, 2016 Begin Construction
June 1, 2016 Substantial Completion of Project !
15. Explain why this project needs and is worthy of the requested public subsidy. !!
The improvements shall allow an increase in the capacity to serve more low income families within the community.
Such improvements promote long-term community viability and the empowerment of low-income persons to
achieve self-sufficiency. !
The Community Serving Community Center child care facility provides transportation for their clients upon request. !
!
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? !
T h e p r o j e c t s h a l l b e d e s i g n e d c o m p l e t e . W e d o n o t a n t i c i p a t e a n y f u t u r e r e q u e s t s f o r f u n d i n g a f t e r c o m p l e t i o n .
!
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. !
If the project does not receive the requested funds in total, the proposed project shall be put "on hold"
indefinitely.
!
Section 3 – Feasibility/Need for Subsidy
Public Facility, Planning & Other Projects ! FY16 Mid-Year CDBG Funding Request8
!
!
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). !
!
Please describe the basis or methodology used to estimate the number of clients to be served
(i.e. survey, last year’s reports, etc.) !
All children currently be served at the existing daycare are from families receiving state assistance for child care.
All families served qualify as low or extremely low income family units. !
19. Does your project represent an innovative solution to meet the specific need it is intended to satisfy? If so,
please explain. !
By providing an accessible restroom and a compliant accessible ramp to the basement level of the church, the
proposed solution shall provide a reactivated space for a child care facility serving up to 35 pre-school children from
low income families. !
!
20. Does the proposed project pay full property taxes? Yes !
I f y e s , w h a t i s t h e e s t i m a t e d v a l u e o f t a x e s g e n e r a t e d f r o m t h i s P r o j e c t ? $ 1 0 0 0 / y e a r
I f p r o p e r t y t a x e s a r e n o t p a i d , d o e s t h e p r o p o s e d p r o j e c t p a y a P a y m e n t I n L i e u o f T a x e s o r a r e d u c e d t a x r a t e ?
❒Yes ❒No If yes, what is the percent of full taxes paid? _____% and amount paid is $ _______________!
Section 4 – Impact/Benefit to the Community
Number between 0 - 30% median income _____35 persons (a)
Number between 31 - 50% median income _______ persons (b)
Number between 51 - 80% median income _______ persons (c)
Number over 80% median income _______ persons (d)
Total _____35 persons (e)
Percent LMI ____100% (a + b + c) ÷ e
Percent Iowa City Residents ____100%
Public Facility, Planning & Other Projects ! FY16 Mid-Year CDBG Funding Request9
!
!
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) !
*Eight months remaining in FY16 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
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 the 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. !
The child care facility was opened in 2014 with a 15 child capacity.
In 2015, the facility increased its capacity of child care services to 30. !
24. Please describe your organization’s structure, officers and staff, as it relates to the overhead cost for this project. !
Since 2009, when our community outreach non-profit 501(c)(3) organization was established, we've participated in
many initiatives including partnering with others in the Coralville area to form a food pantry that serves the poor and
homeless. In our own efforts, at times, we've provided over 200 sandwiches twice per week as well as providing 45
hot meals once a week for the homeless. !
In addition to our child care services we provide support to families who have recently moved to the area.
Immigrants have additional challenges beyond just being unfamiliar with the city. There may be language barriers,
and lack of support networks that long-time residents with family and friends can fall back on. We try to provide that
much needed support for families by offering meals, clothing, employment assistance, transportation, school
enrollment support, and assistance with housing. !
The organization's structure is composed of the following staff:
Justin Matiyabo, Executive Director
Binua Matiyabo, Director !
Please note: the requested funds shall not be allocated to the staff of the Community Serving Community Center.
Website: http://www.cscchildcare.com/
Section 5 – Capacity/History of the Applicant
Fiscal Year Funds Recv’d
Budgeted
Amount
Amount
Expended
(as of 10/8/15)
Date All Units
Completed
FY13 (July 2012 - June 2013)$0 $0
FY14 (July 2013 - June 2014)$0 $0
FY15 (July 2014 - June 2015)$0 $0
FY16 (July 2015 - June 2016)*$0 $0
Public Facility, Planning & Other Projects ! FY16 Mid-Year CDBG Funding Request10
Public Facility, Planning & Other Projects 1 FY16 Mid-Year CDBG Funding Request
Public Facility, Planning, and Other Projects
1. Name of Project: Fairmeadows Park Playground
2. Total Amount of CDBG Funds Requested: $ 85,000
3. Applicant Name: City of Iowa City
Applicant Address: 410 East Washington St., Iowa City
4. DUNS Number: 782621940
5. Contact Person: Geoff Fruin
Phone Number: 319.356.5013
Email Address: Geoff-fruin@iowa-city.org
6. Location of proposed project: Fairmeadows Park
7. Brief summary of the proposed project (please limit response to a paragraph):
Grant Wood Elementary and Fairmeadows Park are integral open space areas identified in the South District.
Due to safety concerns and the age of the existing equipment, the focus of this project is the replacement of
outdated playground equipment originally installed approximately twenty years ago with new ‘naturescape’
equipment. The proposed improvements will provide a safe environment that promotes physical activity and
meets outdoor recreation and fitness needs of the community.
Section 1 – Need/Priority
8. Please specify the one most applicable priority need this application addresses, as shown in CITY STEPS
2016-2020 (www.icgov.org/actionplan).
Priority Need: Public Facility Improvements An overarching goal of the Consolidated Plan is to provide a suitable living environment through safer, more livable and accessible neighborhoods, greater integration of low and moderate income residents, and reinvestment in aging neighborhoods. The City’s Action Plan encourages funds dedicated to public infrastructure in non-student, low/moderate income neighborhoods. An investment in Fairmeadows Park, within the South
District, helps the City to meet these identified goals.
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.
Support for the Fairmeadows Park Playground at Grant Wood addresses a gap identified in CITY STEPS
Consolidated Plan 2016-2020. The plan identifies Public Facility Improvements as a priority that addresses the
need for activities for unaccompanied youth. The City and School District have invested in recreation facilities in the neighborhood, including gymnasiums available to the public after school hours at Grant Wood and Alexander Elementary Schools. Yet, access to adequate playground facilities for children living in the Grant Wood area continues to be an issue.
The limited resources of the families in the Grant Wood Elementary School attendance area, a Census Tract in
which 51 percent or more of households are below 80 percent of the median family income for Iowa City, are
less able to raise funds for needed park updates.
Public Facility, Planning & Other Projects 2 FY16 Mid-Year CDBG Funding Request
9b. Will this project address the established priorities in the City’s Strategic Plan? Please identify the priority(s). (www.icgov.org/strategicplan)
Neighborhood stabilization is identified as a priority in the City’s Strategic Plan. Specifically, this project will
address the priority of preventing blight and stagnation in various neighborhoods. The existing playground
equipment has exceeded its useful life and needs to be updated with new facilities. The playground will also be
relocated to a different location in the park that will facilitate a better transition with the splash pad.
Section 2 – Leveraging Resources\Budget
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. 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 (e.g. 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
In
-Ki
n
d
Ca
s
h
An
t
i
c
i pa
t
e
d
Da
t
e
Co
m
m
it
t ed
Please place an “X” in the box that applies:
ADA connections $35,000 $ X X
Playground $50,000 $ X X
$ $
$ $
$ $
$ $
Total $85,000 $
Amount of private/agency/other funds $_________________________ (a) Amount of CDBG funds $85,000___________________ (b)
Total Project Funding $85,000___________________ (c) (a + b)
Number of households assisted 3,593 (d) (see question 19)
Total cost per household $24/household______________ (e) (c ÷ d)
Public Facility, Planning & Other Projects 3 FY16 Mid-Year CDBG Funding Request
Total CDBG Cost Per Household $24/household________________ (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 x $10 per hour = $
Skilled labor (_____________ ) _______ hours x $___ per hour = $
Skilled labor (_____________ ) _______ hours x $___ per hour = $
Total $
12. What percentage of the proposed budget will be made up of private funds? No 0% 13. Describe what efforts have been taken to secure private or other public funding?
The neighborhood is in a low-moderate income neighborhood with limited disposable income. The Park would be
greatly assisted by new equipment. The existing playground equipment is at the end of its useful life and in
need of update.
Section 3 – Feasibility/Need for Subsidy
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: If funded, this schedule will be used for any project agreement for the use of CDBG
funding.
Date: Description of Activity:
December 1, 2015 Council approval of funding and project start date January 1, 2015 Conduct environmental review
June 1, 2015 Bidding process for equipment and construction
September 1, 2015 Construction begins
November 1, 2015 Project completion
15. Explain why this project needs and is worthy of the requested public subsidy.
It is long standing tradition that parks are a gift to the citizens and therefore a fiscal responsibility of city
government. The land acquisition and previous construction costs were paid by the City through issuance of General Obligation Bonds.
The replacement of the outdated playground equipment cannot be solely funded through local resources at this time. Growing deferred maintenance projects, the unexpected drain on capital funds due to the 2006 Tornado and 2008 Flood events, and the shrinking property tax base due to State reform have created significant budget
Public Facility, Planning & Other Projects 4 FY16 Mid-Year CDBG Funding Request
pressures for the City of Iowa City. The playground updates are currently not programmed in the City’s Five-Year Capital Improvement Program and zero ‘Neighborhood Open Space’ funds are available for this park. These factors compromise Iowa City's ability to construct this necessary update without grant assistance.
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?
The City will purchase equipment with a minimum useful lifespan of 20 years or more. The parks department will
continue to maintain the park grounds as usual.
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. The City is committed to completing the project, even with partial funding.
Section 4 – Impact/Benefit to the Community
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 963 households (a)
Number between 31 - 50% median income 719 households (b)
Number between 51 - 80% median income 675 households (c)
Number over 80% median income 1,236 households (d)
Total 3,593 households (e)
Percent LMI 66% (a + b + c) ÷ e
Percent Iowa City Residents 100%
Please describe the basis or methodology used to estimate the number of clients to be served (i.e. survey, last year’s reports, etc.) The values above include the number of households in Census Tract 18 by income level.
19. Does your project represent an innovative solution to meet the specific need it is intended to satisfy? If so,
please explain.
N/A
20. Does the proposed project pay full property taxes? Yes 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?
Yes No If yes, what is the percent of full taxes paid? _____% and amount paid is $ ______________
Public Facility, Planning & Other Projects 5 FY16 Mid-Year CDBG Funding Request
Section 5 – Capacity/History of the Applicant
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)
Fiscal Year Funds Recv’d
Budgeted
Amount
Amount
Expended
(as of 10/8/15)
Date All Units
Completed
FY13 (July 2012 - June 2013) $ $
FY14 (July 2013 - June 2014) $ $
FY15 (July 2014 - June 2015) $ $
FY16 (July 2015 - June 2016)* $ $
*Eight months remaining in FY16 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 the 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.
N/A
24. Please describe your organization’s structure, officers and staff, as it relates to the overhead cost for this project. Staff time will not be applied to the cost of this project. All federal funds will be used to purchase and install
playground equipment.
Public Facility, Planning & Other Projects 6 FY16 Mid-Year CDBG Funding Request
Existing playground equipment
Public Facility, Planning & Other Projects 7 FY16 Mid-Year CDBG Funding Request
Proposed playground equipment
Public Facility, Planning & Other Projects 3 FY16 Mid-Year CDBG Funding Request
Public Facility, Planning, and Other Projects
1. Name of Project: Prelude’s Future
2. Total Amount of CDBG Funds Requested: $200,000
3. Applicant Name: Prelude Behavioral Services
Applicant Address:430 Southgate Ave., Iowa City, IA 52240 4. DUNS Number: 080310204
5. Contact Person: Ron Berg
Phone Number: 319-351-4357
Fax Number: 319-248-3826 Email Address: rberg@preludeiowa.org 6. Location of proposed project:
7. Brief summary of the proposed project (please limit response to a paragraph).
Prelude seeks to purchase property adjacent to our current properties on Southgate Avenue that will
allow for the expansion and improvement of our existing facilities and services. As changes continue
to impact the service delivery system it is increasingly evident that we will be expected to collaborate
with additional partners and provide medical and case management services that we do not currently
offer. In addition, our current residential center is overcrowded, does not offer space for recreational
activities and lounging that are important for individuals recovery program. Owning the property next to
us will allow us to pursue these improvements over time as resources become available.
Public Facility, Planning & Other Projects 4 FY16 Mid-Year CDBG Funding Request
Section 1 – Need/Priority
8. Please specify the one most applicable priority need this application addresses, as shown in CITY STEPS
2016-2020 (www.icgov.org/actionplan).
Priority Need:
Public Facility Improvements
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.
This project is needed to secure the future of Prelude Behavioral Services in our community. This project will
allow Prelude to buy the adjacent property, allowing for more space to provide services for more community
members in need of services. This expanded space will allow for Prelude to better provide: Integrated Health
Homes, Medication Assisted Treatment, Case Management, Family Services, Recreational Activities for clients
and space for privacy and lounging areas. These are all services that Prelude is currently unable to provide to
clients due to limited space available.
9b. Will this project address the established priorities in the City’s Strategic Plan? Please identify the priority(s).
(www.icgov.org/strategicplan)
This project will address the established priority of Public Facilities Improvement and will serve the population of
Chronic Substance Abusers. This project will provide facility improvements for Prelude Behavioral Services to
better meet the needs of our clients and community by providing more space with the availability to serve more
clients, meet better accessibility for clients and staff.
Public Facility, Planning & Other Projects 5 FY16 Mid-Year CDBG Funding Request
Section 2 – Leveraging Resources\Budget
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. 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 (e.g. 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
In
-Ki
n
d
Ca
s
h
An
t
i
c
ip
a
t
e
d
Da
t
e
Co
m
m
it
t ed
Acquisition $200,000 $ Please place an “X” in the box that applies:
Acquisition $ $750,000 Sale of current
assets
x Within 4 mont
hs
Acquisition $ $600,000 Loan plus cash reserves
x Within 4 months
Financing costs $ $15,000
$ $
$ $
$ $
Total $200,000 $1,365,000
Amount of private\agency\other funds $_____1,365,000___________________ (a)
Amount of CDBG funds $______200,000_________________ (b) Total Project Funding $_____1,565000_____________ _ (c) (a + b)
Number of persons assisted 657 (d) (see question 19)
Total cost per person $2382 (e) (c ÷ d)
Public Facility, Planning & Other Projects 6 FY16 Mid-Year CDBG Funding Request
Total CDBG Cost Per Person $304 (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 na _______ hours x $10 per hour = $
Skilled labor (__na___________ ) _______ hours x $___ per hour = $
Skilled labor (__na___________ ) _______ hours x $___ per hour = $
Total $ na
12. What percentage of the proposed budget will be made up of private funds? 87%
13. Describe what efforts have been taken to secure private or other public funding?
At the time of this grant submission, Prelude is seeking an agreement with the seller of the property to exchange
Prelude’s current property at 238 Stevens Drive and 325 First Street as partial payment toward the purchase of
the adjacent property located on Boyrum Street. Prelude has engaged an architect to develop schematic plans
for the redevelopment of our current property at 430 Southgate to a dedicated residential treatment space and
move all outpatient operations to the new facility. Prelude has also engaged a fund raising consultant to conduct
a feasibility study for a capital campaign. That study suggests that Prelude would be able to expect to raise
$750,000 towards this project. The architect is also working with Prelude to develop a scaled back version of the
original plan to allow us to stage the build out and remodeling of current facilities in a manner that would allow
us to remain within our financial resources while still allowing us to expand to better serve our community.
Public Facility, Planning & Other Projects 7 FY16 Mid-Year CDBG Funding Request
Section 3 – Feasibility/Need for Subsidy
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: If funded, this schedule will be used for any project agreement for the use of CDBG
funding.
Date: Description of Activity:
December 1, 2015 Council approval of funding and project start date December 31, 2015 We want to close the purchase this calendar year
January through June, 2016 Remodel and relocate Prelude staff to vacate current properties
15. Explain why this project needs and is worthy of the requested public subsidy. This project is worthy of the requested public subsidy because it will allow Prelude to expand and serve more
community members in need. This expansion would be sufficient enough to allow Prelude to ensure sufficient
room for services so that an expansion would not be needed again.
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?
There is currently fundraising and the beginning stages of a capital campaign in place to prevent the likelihood
that this project would need further subsidy in the future. Prelude has a well-laid plan in place to prevent this
type of need from happening 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.
If less funding is awarded, it would means that funds that could be used towards clients would need to be used
towards this project, thus depleting funds Prelude has for client needs.
Public Facility, Planning & Other Projects 8 FY16 Mid-Year CDBG Funding Request
Section 4 – Impact/Benefit to the Community
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 436 persons (a)
Number between 31 - 50% median income 155 persons (b)
Number between 51 - 80% median income 48 persons (c)
Number over 80% median income 18 persons (d)
Total 657 persons (e)
Percent LMI .97% (a + b + c) ÷ e
Percent Iowa City Residents 60%
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. Yes. Prelude has worked out an agreement with the seller of the new property to buy 2 of Prelude’s current
properties as down payment. This would allow Prelude to use funding for this purchase to be used towards the
purchase amount, thus resulting in needing to request a less amount from funders.
20. Does the proposed project pay full property taxes? Yes x 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?
Yes xNo If yes, what is the percent of full taxes paid? _____% and amount paid is $ _______________
Public Facility, Planning & Other Projects 9 FY16 Mid-Year CDBG Funding Request
Section 5 – Capacity/History of the Applicant
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)
Fiscal Year Funds Recv’d
Budgeted
Amount
Amount
Expended
(as of 10/8/15)
Date All Units
Completed
FY13 (July 2012 - June 2013) $11,692 $11,692 4/16/13
FY14 (July 2013 - June 2014) $23,850 $23,850 4/23/14
FY15 (July 2014 - June 2015) $0 $0
FY16 (July 2015 - June 2016)* $0 $0
*Eight months remaining in FY16 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? x 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 the 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.
Prelude has received funding in the past.
24. Please describe your organization’s structure, officers and staff, as it relates to the overhead cost for this project.
There is no overhead cost related to this project other than $15,000 that is included in the budget for financing
costs associated with the purchase of the project
Public Facility, Planning & Other Projects 3 FY16 Mid-Year CDBG Funding Request
Public Facility, Planning, and Other Projects
1. Name of Project: Towncrest Investment, L.P. Demolition
2. Total Amount of CDBG Funds Requested: $112,000
3. Applicant Name: Towncrest Investment, L.P.
Applicant Address: 2405 Towncrest Drive, Iowa City, IA 52240
4. DUNS Number: To be established
5. Contact Person: Ernest Stoppelmoor
Phone Number: 312.331.0925
Fax Number: None
Email Address: erniestop@iowatelecom.net
6. Location of proposed project:
1030-1070 William Street, at the intersection of Towncrest Drive and William Street. The project site is located in
the Southeast Planning District and in the Towncrest Urban Renewal Area.
7. Brief summary of the proposed project (please limit response to a paragraph).
Towncrest Investments, L.P. is the owner of property located at 1030 William Street in Iowa City. The owner is
applying to the City for CDBG funds to demolish a vacant and deteriorating property. The site is located within
the boundaries of the Towncrest Urban Renewal Area, which was designated by the City as a slum and blighted
area. The removal of the building and clearing of the site will encourage investment by making a currently
blighted site available for new development. The building that was previously used as a medical office building
has not tenants and no pending leased. The proposed demolitions meets the goals of the Towncrest Urban
Renewal Plan to diversify and broaden the property tax base, provide and protect areas for future commercial
development and foster strong community neighborhoods with a mix of housing, churches, schools, recreation
facilities, commercial areas, and historic landmarks. The value of the site will be improved once the existing
building is demolished and will make the redevelopment of the property much more likely.
Public Facility, Planning & Other Projects 4 FY16 Mid-Year CDBG Funding Request
Section 1 – Need/Priority
8. Please specify the one most applicable priority need this application addresses, as shown in CITY STEPS
2016-2020 (www.icgov.org/actionplan).
Priority Need: Economic Development
The project will assist the City to address its priority need of Economic Development. This need has been
identified in the CITY STEPS plan as a High priority for the City, and will improve conditions in Urban Renewal
Areas founded on slum and blight conditions. The project’s subject property and site is located in the
Towncrest Urban Renewal Area.
Specifically, this project will address façade improvements in an Urban Renewal Area. The building is vacant,
old, and continues to deteriorate. It is important to demolish the building so that a more productive use can
be built on the site. The site was re-zoned for affordable senior housing in 2012, which is the anticipated
future use.
Public Facility, Planning & Other Projects 5 FY16 Mid-Year CDBG 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.
The CITY STEPS plan describes three overarching goals, one of which is to expand economic opportunities
through development activities that promote long-term community viability. This project proposes a private
site improvement to demolish an existing building that is currently vacant and contributing to the blighted
conditions of the Towncrest neighborhood. Removing this property will make way for new development
which will improve the neighborhood. Also this site has been rezoned to accommodate an affordable senior
development and this would help address the City’s affordable housing goals. The development of that project is
not part of this application and would be owned and completed by a different organization.
CITY STEPS calls for façade improvements in Urban Renewal Areas as well as removal of architectural barriers.
The vacant structure is both unattractive and impedes further retail/office development in the corridor.
9b. Will this project address the established priorities in the City’s Strategic Plan? Please identify the priority(s).
(www.icgov.org/strategicplan)
This proposal will directly address an established priority as put forth in the City’s Strategic Plan. The plan’s first
priority is for Strategic Economic Development Activities. One area that has been specifically targeted for such
action is the Towncrest Neighborhood located in the Southeast Planning District. The applicant is proposing the
City support its efforts to redevelop part of the Towncrest Neighborhood by demolishing an unoccupied and
deteriorating building. The plan also states future plans will identify further redevelopment options in the district.
Clearing and preparing the site will make it available for development and attract new investment in the
neighborhood. This effort will also satisfy an objective of the Towncrest Urban Renewal plan to encourage the
revitalization of commercial and residential activity in the area.
Public Facility, Planning & Other Projects 6 FY16 Mid-Year CDBG Funding Request
Section 2 – Leveraging Resources\Budget
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. 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
(e.g. 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
In
-
K
i
n
d
Ca
s
h
An
t
i
c
i
p
a
t
e
d
Da
t
e
Co
m
m
i
t
t
e
d
Demolition/Site clearing $112,000 $ Please place an “X” in the box that applies:
$ $
$ $
$ $
$ $
$ $
$ $
$ $
Total $112,000 $
Amount of private\agency\other funds $_____________________ (a)
Amount of CDBG funds $112,000___________________ (b)
Total Project Funding $112,000___________________ (c) (a + b)
Number of persons assisted ________N/A________________ (d) (see question 19)
Total cost per person $_______N/A_________________ (e) (c ÷ d)
Total CDBG Cost Per Person $_______N/A_________________ (f) (b ÷ d)
Public Facility, Planning & Other Projects 7 FY16 Mid-Year CDBG Funding Request
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. Not applicable.
Unskilled labor _______ hours x $10 per hour = $
Skilled labor (_____________ ) _______ hours x $___ per hour = $
Skilled labor (_____________ ) _______ hours x $___ per hour = $
Total $
12. What percentage of the proposed budget will be made up of private funds? 0.00%
13. Describe what efforts have been taken to secure private or other public funding?
We are in negotiations to sell the property for a new development project. The proposed buyer will be
responsible to provide any environmental or soil reports required for the demolition.
Public Facility, Planning & Other Projects 8 FY16 Mid-Year CDBG Funding Request
Section 3 – Feasibility/Need for Subsidy
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: If funded, this schedule will be used for any project agreement for the use of CDBG funding.
Date: Description of Activity:
December 1, 2015 Council approval of CDBG funding
June 30, 2016 Phase I completed
July 30, 2016 Demolition and site clearing begun
August 30, 2016 Demolition and site clearing completed
15. Explain why this project needs and is worthy of the requested public subsidy.
The proposed project will meet a number of goals as stated in several of the City’s planning documents, such
as the City’s Strategic Plan, Southeast District Plan, Towncrest Urban Renewal Plan, and the City Steps plan.
Additionally, removing a vacant and deteriorating building will have a positive and focused impact on a
neighborhood that the City has identified for Urban Renewal efforts and authorized to support with public
subsidy. The project will help to revitalize the area by eliminating blight and encourage investment and new
development in a renewal area.
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?
This application is solely for demolition of a commercial property that has become vacant and is deteriorating.
The applicant plans to sell the property to a developer that is able to successfully redevelop the property
according to the City’s vision.
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. The applicant requests the cost for demolition and site clearing be fully funded with a CDBG award.
Public Facility, Planning & Other Projects 9 FY16 Mid-Year CDBG Funding Request
Section 4 – Impact/Benefit to the Community
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 _______ persons (a)
Number between 31 - 50% median income _______ persons (b)
Number between 51 - 80% median income _______ persons (c)
Number over 80% median income _______ persons (d)
Total _______ persons (e)
Percent LMI _______% (a + b + c) ÷ e
Percent Iowa City Residents _______%
Please describe the basis or methodology used to estimate the number of clients to be served
(i.e. survey, last year’s reports, etc.)
This application is solely for demolition of a commercial property that has become vacant and is deteriorating.
19. Does your project represent an innovative solution to meet the specific need it is intended to satisfy? If so, please explain.
The project will eliminate blight and create an opportunity for redevelopment and encourage private
investment, thereby revitalizing the neighborhood and satisfying the goals as put forth in several City
planning documents.
20. Does the proposed project pay full property taxes? X Yes No
If yes, what is the estimated value of taxes generated from this Project? $40,000
If property taxes are not paid, does the proposed project pay a Payment In Lieu of Taxes or a reduced tax rate?
Yes No If yes, what is the percent of full taxes paid? _____% and amount paid is $ ______________
Public Facility, Planning & Other Projects 10 FY16 Mid-Year CDBG Funding Request
Section 5 – Capacity/History of the Applicant
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)
Fiscal Year Funds Recv’d
Budgeted
Amount
Amount Expended
(as of 10/8/15)
Date All Units
Completed
FY13 (July 2012 - June 2013) $ $
FY14 (July 2013 - June 2014) $ $
FY15 (July 2014 - June 2015) $ $
FY16 (July 2015 - June 2016)* $ $
*Eight months remaining in FY16 at time of this application.
Not applicable.
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? X 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 the 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.
The demolition will be done by Portzen Construction, Inc. out of Dubuque, Iowa. The company possesses
over 25 years of construction experience that includes general construction, construction management,
demolition, site clearing, excavation, and carpentry for commercial, industrial, and residential structures.
24. Please describe your organization’s structure, officers and staff, as it relates to the overhead cost for this project.
The project’s budget consists solely of costs for demolition and clearing the site.
Date: October 15, 2015
To: Housing and Community Development Commission
From: Kris Ackerson, Community Development Planner
Re: Request for Financial Assistance – Bilam Properties LLC
Introduction The City received a request for financial assistance from Bilam Properties LLC (a SouthGate Companies entity) to rehabilitate units in the Walden Ridge Townhomes development on Shady Glen Court, Sylvan Glen Court, Bittersweet Court, and Clearwater Court. This memorandum provides background information and staff’s recommendation regarding the proposal. The developer also proposes applying for Iowa Workforce Housing Tax Credits from the Iowa Finance Authority (IFA) for this project. The developer’s application for Community Development Block Grant funds is attached for your review. History/Background SouthGate applied for and received CDBG funds in 2012 for the rehabilitation of the Orchard Place condos at 1956-1960 Broadway Street in Iowa City. Today the vacancy rate for the project is below one percent. Additionally, calls for assistance to the Iowa City Police Department have been dramatically reduced between 2010 and 2015. The project has been a success and good example of a public-private partnership. There is concern that Pheasant Ridge and Walden Ridge are becoming hotspots in terms of calls for police service and need reinvestment. According to SouthGate, Walden Ridge has seen increasing vacancies (currently approximately 20 percent) in recent years and needs upgrades. Bilam Properties LLC (a SouthGate Companies entity) is the current owner of 53 units in Walden Ridge Townhomes. The developer proposes to acquire additional units for a majority stake on the condominium board and rehabilitate interior and exterior spaces (see application enclosed). The total project cost is estimated at $3.975 million and includes 53 units. The condominium board recently approved a long-term budget of $500,000 for repairs to the exterior. Discussion of Solutions The developer wants to acquire additional units to establish a majority stake in the properties condominium regime. However, the City’s affordable housing location model prohibits the acquisition of subsidized rental housing in this location. The CDBG assistance is limited to rehabilitation of only the units owned at the time the CDBG application was submitted. The National Development Council reviewed the developer’s budget and pro forma. Due to the amount of equity in the project, the proposed improvements do not require grant funds to produce a positive cash flow, even if the developer is unsuccessful getting Iowa Workforce Housing Tax Credit funds. To be clear, due to the use of federal funds the project would trigger Davis-Bacon wage regulations, federal procurement procedures, relocation (if required) and Section 3 requirements. This project meets the City Strategic Plan Priority to ensure healthy neighborhoods by promoting affordable housing and stabilizing neighborhoods.
October 15, 2015 Page 2
Recommendation Staff recommends a CDBG loan of $600,000 to Southgate to rehabilitate 53 units with the following financial terms: 15 year amortization, 15 year term, 3% full amortizing. Payments would begin once the rehabilitation is completed. The proposed funding would limit rent to at or below the CDBG Fair Market Rent for up to 5-10 years. 51% of the 53 households would need to be below 80% of area median income. Staff also supports the applicant applying for Iowa Workforce Housing Tax Credits for up to 10 units. This is the number of units that have been vacant at Walden Ridge for six months or more and would qualify for the program.
Housing 2 FY16 Mid-Year CDBG Funding Request
Housing
Project Name: Walden Ridge Townhomes
Type of Project (check one): Homeownership Rental Tenant Based Rent Asst. Rehabilitation
(Rental and Rental Rehabilitation projects require the completion of rental housing pro forma)
General Information
1. Lead Applicant Name: Bilam Properties LLC
Applicant Address: 755 Mormon Trek Blvd, Iowa City, IA, 52246
Contact Person and Title: Jerry Waddilove, Chief Operating Officer
Phone Number: 319-337-4195
E-mail Address: jwaddilove@southgateco.com
2. Lead Applicant DUNS Number:
3. Secondary Applicant (if applicable):
Applicant Address:
Contact Person and Title:
Phone Number:
E-mail Address:
4. Type of Applicant (check one):
Community Housing Development Organization Private non-profit organization
Private for-profit, individual or partnership applicant Public Organization
5. Amount of CDBG Funds Requested: $600,000
6. Provide a brief description of the proposed project & complete the table below. As you know, SouthGate applied for and received CDBG funds in 2012 for the Rehabilitation of the Orchard Place condos at 1956-1960 Broadway Street in Iowa City. Bilam Properties LLC (a SouthGate Companies entity) is the current owner of 53 units in Walden Ridge Townhomes.
We believe the public-private partnership between SouthGate Companies and the City of Iowa City on Orchard
Place is a success we can both celebrate. As of this letter, we have only 1 vacancy of the 108 units in this
project. Furthermore, City staff has shared with us the study of service calls by the Iowa City Police Department
and how it has been dramatically reduced between 2010 and 2015. This is a story that we would like to repeat at Walden Ridge on the west side of Iowa City. Unfortunately, some of the service calls have concentrated in this area as well as Pheasant Ridge to the north. There have been
serious violent crime calls at Pheasant Ridge with shootings and drug-related incidents going on there, as
reported by the media. SouthGate’s desire is to prevent Walden Ridge from becoming like the former Broadway
Condos or a current Pheasant Ridge.
Housing 3 FY16 Mid-Year CDBG Funding Request
Bilam Properties LLC would like to apply for a $600,000 grant to provide funding for rehabilitation. This would
include new cabinets, flooring, appliances, light fixtures, and the like. Our estimate is $20,000 per unit. 8 of the
units have already been rehabbed. Total rehab cost is projected to be $900,000. Our experience indicates we are able to attract a higher quality resident when the units are rehabbed. We are requesting a grant due to the higher cost relative to value or acquisition cost. The Walden Ridge Townhomes are worth approximately $75,000 each so putting $20,000 into them is a significant expense.
In addition to this request, the Walden Ridge Homeowners Associated Board voted, in early 2015, to approve a
long-term budget including $500,000 over 5 years to replace facades, fix landscaping, fix sidewalks and steps,
and repair retaining walls and decks.
Type of Units: Total Number of Units Proposed:
Single Room Occupancy
Efficiency
1 - Bedroom
2 - Bedroom 5
3 - Bedroom 37
4+ Bedrooms 11
Section 1 – Need/Priority
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.icgov.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.)
Number of units for rent, rental prices and change in rental prices over the last 2 years. Vacancy rate for rental units Condition of building
7b. How will this project meet the needs identified in the 2016-2020 CITY STEPS (www.icgov.org/actionplan)
Rehabilitation of the Walden Ridge Townhomes will preserve these affordable housing units. Furthermore,
our experience with Orchard Place indicates we are able to attract a higher quality renter and we’ll continue
with our Crime Free lease. This will provide a safer, more livable and accessible neighborhood.
7c. Will this project address the established priorities in the City’s Strategic Plan? Please identify the priority(s). (www.icgov.org/strategicplan)
Yes, specifically, as noted above the rehabilitation project will help prevent stagnation of rental housing in this
part of Iowa City. In addition, an improvement in calls for crime will help reduce the stigma tied to affordable
housing.
8. Please specify the one most applicable priority need this application addresses, as shown in the 2016-2020 CITY STEPS Plan. Priority Need: Preserving Existing Affordable Rental and Owner Housing Units
Housing 4 FY16 Mid-Year CDBG Funding Request
Section 2 – Leveraging Resources/Budget
9. Please provide the requested loan terms and affordability period:
Principal Amount
Interest Rate
Loan Amortization (Years)
Affordability Period (Years)
Yearly Payment
Terms
Requested*
$ 0% 15 15
*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
Funds:
Funding
Amount
Interest
Rate
Amortization
Term Committed?
Iowa City CDBG Funding
(public)
$600,000 Yes No
State of Iowa HOME or
CDBG (public)
$ Yes No
IFA – Low Income Housing
Tax Credits (public)
$ Yes No
Bank Loan (private) $2,439,750 Yes No
Applicant Contribution of
Equity (private)
$537,500 Yes No
Other Public Resources
(please list)
Workforce Housing Tax Credits $397,750 Yes No
Other Private Resources (please list)
$ Yes No
TOTAL $3,975,000
Housing 5 FY16 Mid-Year CDBG Funding Request
10b. Please provide the uses of funds for the project.
Uses of Funds Amount
Acquisition:
Building Acquisition (Fair Market Value) $4,050,000
Land Acquisition $
Site Improvements $
Construction $900,000
Professional Fees $
Construction Finance $
Permanent Finance $
Developer Fee $
Reserves $
Other (please specify): Equity $(975,000)
$
TOTAL (Must equal TOTAL in 10a.) $3,975,000
Amount of Private Funds $2,977,250 ________ (a)
Amount of Public Funds $997,750 _________ (b)
Total Project Funding $3,975,000 ________ (c) a + b
Number of bedrooms 165 _____________ (d)
Total Cost Per Unit $75,000___________ (e) c ÷
#Units
10c. What percentage of the proposed budget will be made up of private funds? 75________% 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. – N/A
Unskilled labor _______ hours x $10 per hour = $_________________
Skilled labor (_____________ ) _______ hours x $___ per hour = $_________________
Skilled labor (_____________ ) _______ hours x $___ per hour = $_________________
Skilled labor (_____________ ) _______ hours x $___ per hour = $_________________
Total $_________________
12. Please identify any identity of interest (IOI) relationships with the applicant and/or project owner, i.e. General Partner has a financial interest in the construction company, etc.
Bilam Properties LLC will utilize Southgate Construction LLC, a related company, to construct the
improvements on this project.
Housing 6 FY16 Mid-Year CDBG Funding Request
13. Describe what efforts have been taken to secure private or other public funding.
Bilam Properties has a current loan in place on the Walden Ridge Townhomes. Upon a decision on the Iowa
City CDBG application and Iowa Workforce Housing Tax Credits application, we plan to discuss refinance this loan with a local lender. The Iowa Workforce Housing Tax Credit application is complete with the exception of the Resolution of Support to be provided by The City of Iowa City.
Section 3 – Feasibility/Need for Subsidy
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). If
applicant plans to apply for funds not committed to the project yet, include the anticipated date for
application. Please Note: If funded, this schedule will be used for any project agreement for the use of CDBG funding. Date: Description of Activity:
Nov 1, 2015 Submit completed Iowa Workforce Housing Tax Credit application
Nov 1, 2015 Discuss private local lender financing with lender
Dec 1, 2015 Project starts on 20% of the units
Jul 31, 2015
Project completed – rehab’s taking place as residents move out or are
provided alternative housing
15. 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).
The goal of this project is to provide a safe, livable neighborhood in Iowa City that preserves affordable
housing. Asking rents are currently around $975 per month for a 3BR unit and $1,075 for a 4BR unit.
These are significantly lower than the Fair Market Rent of $1,182 per month and $1,420 per month, respectively. Maintaining the affordable housing period will continue to keep these rentals affordable.
16. 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 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.
Asking rents are currently around $975 per month for a 3BR unit and $1,075 for a 4BR unit. These are
significantly lower than the Fair Market Rent of $1,182 per month and $1,420 per month, respectively. Maintaining the affordable housing period will continue to keep these rentals affordable. The cash flow at the asking rents is satisfactory to provide a reasonable return for the owner while meeting the goals of affordable housing in Iowa City. The difference of Project Rents and Fair Market Rent represents a more
than 20% gap. It is unlikely this gap will be lessened over the short term due to market dynamics. In
addition, the density and location of this project to grocery, bus lines, and schools will help to continue to
keep it affordable.
Housing 7 FY16 Mid-Year CDBG Funding Request
17. Explain why this project needs and is worthy of the requested public subsidy.
The Walden Ridge Townhomes are worth approximately $75,000 each so putting $20,000 into them is a
significant expense. Furthermore, the public will benefit from a safer neighborhood that will serve low and moderate income households. In addition, the public does not desire to have blighted neighborhoods which this area could become if not for this project.
18. If funding is granted for this project, what steps are in place to decrease the likelihood it will require further
subsidy in the future?
Reserves for maintenance items will be utilized in financing. In addition, the HOA has approved a 5-year
$500,000 exterior improvement plan. Completion of this will set up the exteriors for decades to come
and prudent management of the HOA will make sure future improvements will be planned for.
19. If partial funds are awarded, will the project/program continue? Yes No
If yes, at what level? Partial compared to the amount funded.
Reminder: Rental housing (including acquisition, rental rehab, and new construction) projects MUST complete and submit the pro forma (excel format) provided by the City with this application.
Rental housing applications submitted without the City’s pro forma will not be considered.
Section 4 – Impact/Benefit to the Community
20. 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.
The target population of this project is families, young professionals, student households, and work force.
This project is existing, so it already provides a diversity of housing compared to the attached two-family housing to its south and single family homes further west.
21. Identify the location of the proposed project.
Shady Glen Court, Sylvan Glen Court, Bittersweet Court, Clearwater Court
22. Also, please indicate the number of persons or households that will be served by the proposed project by income category. (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 _______ households (a)
Number between 31 – 50% median income _______ households (b)
Number between 51 – 60% median income _______ households (c)
Number between 61 - 80% median income __27___ households (d)
Number over 80% median income __26___ households (e)
Total __53___ households (f)
Percent LMI __50___ (a+b+c+d) ÷ f
Housing 8 FY16 Mid-Year CDBG Funding Request
23. Does the proposed project pay full property taxes? Yes No
If YES, what is the estimated value of taxes generated from this Project? $95,000
If NO, does the proposed project make a Payment In Lieu Of Taxes or pay at a reduced rate?
Yes No If yes, what is the percent of full taxes paid? _____% and amount paid is $ _____________
24. Does your project represent an innovative solution to meet the specific need it is intended to satisfy? If so,
please explain.
N/A
Housing 9 FY16 Mid-Year CDBG Funding Request
Section 5 – Capacity/History of the Applicant
25. 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 Budgeted Amount
Amount Expended (as of 10/8/15) Date All Units Completed
FY13 (July 2012 - June 2013) $900,000 $900,000 December 2012
FY14 (July 2013 - June 2014) $0 $
FY15 (July 2014 - June 2015) $0 $
FY16 (July 2015 - June 2016)* $0 $
*Eight months remaining in FY16 at time of this application.
26. 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.
27. 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. See below - #29. Chris Villhauer will be the Property Manager. Chris Villhauer has been with SouthGate Companies since December 2004 and currently is the Director of
Property Management. Chris’ responsibilities include managing over 700 residential properties and
overseeing the leasing of apartments, condominiums, townhouses, duplexes, houses, and garages.
These properties are located in Iowa City, Coralville and North Liberty, Iowa.
Chris is a licensed Real Estate agent and has consistently exceeded the continuing education requirements for
Real Estate agents in the state of Iowa, including the following: Mold Identification & Solutions Meth & Its Makers: New Hazards in Housing Developing Professional Conduct & Ethical Practices The Basics (Listing & Buying Practices Combo)
Landlord and Tenant Law
REALTOR® Safety
“Identity Theft: Protecting You and Your Clients”
Chris is a lifelong resident of Iowa City, Iowa.
28. Please describe your organization’s structure, officers and staff, as it relates to the overhead cost for this project. Our Property Management Division will provide the leasing, maintenance, and tenant relations for this project.
We typically assess a 5% management fee for inter-company projects.
Housing 10 FY16 Mid-Year CDBG Funding Request
29. 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. SouthGate Companies traces its humble beginnings to Polish immigrant David Braverman, who started a business selling melons out of the back of a truck. That business grew into a grocery store and ultimately Hawkeye Foods.
As Braverman’s business grew, he began to invest in real estate in Iowa City and SouthGate was born in
1962.
SouthGate Companies has developed more than 600,000 square feet of commercial real estate including build
to suit properties, turnkey sales and multi-tenant facilities. Currently, SouthGate manages more than
300,000 square feet of office, retail and industrial space. SouthGate’s residential construction accomplishments include the development of more than 1,000 apartments, condominiums and single-family residences. Currently, SouthGate manages approximately 700 residential units, including condos, apartments, townhouses, duplexes and houses.
SouthGate Companies is directed by Jody Braverman, the youngest son of David Braverman.
Proforma Spread Sheet
FY16 Rental Housing Projects
Please enter information into "grey" fields only if you are using excel.
Line Description Symbols YR1 YR2 YR3 YR4 YR5 YR6 YR7 YR8 YR9 YR10
Revenues
1 Gross Rental Income + G. Rent 624,570.00$ 637,061.40$ 649,802.63$ 662,798.68$ 676,054.65$ 689,575.75$ 703,367.26$ 717,434.61$ 731,783.30$ 746,418.97$
2 Other Income + O. Income -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
3 Tenant Contributions +T. Contrubution -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
4 Gross Revenues = G. Income 624,570.00$ 637,061.40$ 649,802.63$ 662,798.68$ 676,054.65$ 689,575.75$ 703,367.26$ 717,434.61$ 731,783.30$ 746,418.97$
5 Vacancy Loss - Vac 31,228.50$ 31,853.07$ 32,490.13$ 33,139.93$ 33,802.73$ 34,478.79$ 35,168.36$ 35,871.73$ 36,589.16$ 37,320.95$
(5% Vac. Rate x Gross Income)
6 Effective Gross Income = EGI 593,341.50$ 605,208.33$ 617,312.50$ 629,658.75$ 642,251.92$ 655,096.96$ 668,198.90$ 681,562.88$ 695,194.13$ 709,098.02$
Operating Expenses
7 Insurance 1,465.96$ 1,509.94$ 1,555.24$ 1,601.89$ 1,649.95$ 1,699.45$ 1,750.43$ 1,802.95$ 1,857.03$ 1,912.75$
8 Maintenance & Structural Repairs -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
9 Management Fees 30,781.98$ 31,705.44$ 32,656.60$ 33,636.30$ 34,645.39$ 35,684.75$ 36,755.29$ 37,857.95$ 38,993.69$ 40,163.50$
10 Misc. Operating Expenses 169,090.66$ 174,163.38$ 179,388.28$ 184,769.93$ 190,313.03$ 196,022.42$ 201,903.09$ 207,960.18$ 214,198.99$ 220,624.96$
11 Property Tax 91,012.05$ 93,742.41$ 96,554.68$ 99,451.32$ 102,434.86$ 105,507.91$ 108,673.15$ 111,933.34$ 115,291.34$ 118,750.08$
12 Reserves (Operating reserve no less than $350/unit)18,550.00$ 19,106.50$ 19,679.70$ 20,270.09$ 20,878.19$ 21,504.53$ 22,149.67$ 22,814.16$ 23,498.59$ 24,203.54$
13 Total Operating Expenses - OPR. Expenses 310,900.65$ 320,227.67$ 329,834.50$ 339,729.53$ 349,921.42$ 360,419.06$ 371,231.64$ 382,368.58$ 393,839.64$ 405,654.83$
14 Net Operating Income =NOI 282,440.85$ 284,980.66$ 287,478.00$ 289,929.21$ 292,330.50$ 294,677.90$ 296,967.26$ 299,194.29$ 301,354.49$ 303,443.19$
15 Debt Service First Mortgage 231,540.00$ 231,540.00$ 231,540.00$ 231,540.00$ 231,540.00$ 231,540.00$ 231,540.00$ 231,540.00$ 231,540.00$ 231,540.00$
16 Debt Service Subordinate Mortgage(s)-$ -$ -$ -$ -$ -$ -$ -$ -$ -$
17 Total Debt Service -D\S 231,540.00$ 231,540.00$ 231,540.00$ 231,540.00$ 231,540.00$ 231,540.00$ 231,540.00$ 231,540.00$ 231,540.00$ 231,540.00$
18 Cash Flow =CF 50,900.85$ 53,440.66$ 55,938.00$ 58,389.21$ 60,790.50$ 63,137.90$ 65,427.26$ 67,654.29$ 69,814.49$ 71,903.19$
18(b)Equity Investment In Project 537,500.00$ 537,500.00$ 537,500.00$ 537,500.00$ 537,500.00$ 537,500.00$ 537,500.00$ 537,500.00$ 537,500.00$ 537,500.00$
19 Cash -on- Cash ROI CF 9.5%9.9%10.4%10.9%11.3%11.7%12.2%12.6%13.0%13.4%
Cash Flow divided by Equity Investmentt in Project Equity Invest.
Debt Coverage Ratio (after Year 3, shall be no less than 1.20 DCR 1.219836097 1.230805306 1.241591073 1.252177645 1.262548591 1.272686778 1.282574346 1.292192679 1.301522385 1.31054326
during compliance period. Encourage 1.20-1.50.)
The total of items
#7-10 shall be no less than $2,750/unit
Line YR1 YR2 YR3 YR4 YR5 YR6 YR7 YR8 YR9 YR10
Determining Taxes
20 Cash Flow CF 50,900.85$ 53,440.66$ 55,938.00$ 58,389.21$ 60,790.50$ 63,137.90$ 65,427.26$ 67,654.29$ 69,814.49$ 71,903.19$
21 Depreciation Expenses - DEPR 159,000.00$ 159,000.00$ 159,000.00$ 159,000.00$ 159,000.00$ 159,000.00$ 159,000.00$ 159,000.00$ 159,000.00$ 159,000.00$
22 Amortization of Fees -AMORTZ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
23 Principal Payments +P 111,000.00$ 117,000.00$ 122,000.00$ 127,000.00$ 132,000.00$ 137,000.00$ 142,000.00$ 147,000.00$ 152,000.00$ 157,000.00$
24 Reserves +RESERVES 18,550.00$ 18,550.00$ 18,550.00$ 18,550.00$ 18,550.00$ 18,550.00$ 18,550.00$ 18,550.00$ 18,550.00$ 18,550.00$
25 Earnings (Loss) Before Taxes =EBTx 21,450.85$ 29,990.66$ 37,488.00$ 44,939.21$ 52,340.50$ 59,687.90$ 66,977.26$ 74,204.29$ 81,364.49$ 88,453.19$
26 x Tax Rate (35% or 0%)xRATE 35%35%35%35%35%35%35%35%35%35%
27 Tax Incurred (Saved)=TAX or (Savings)7,507.80$ 10,496.73$ 13,120.80$ 15,728.72$ 18,319.18$ 20,890.76$ 23,442.04$ 25,971.50$ 28,477.57$ 30,958.62$
Cash Flow After Tax
28 Cash Flow CF 50,900.85$ 53,440.66$ 55,938.00$ 58,389.21$ 60,790.50$ 63,137.90$ 65,427.26$ 67,654.29$ 69,814.49$ 71,903.19$
29 Tax Incurred (Tax Saved)- TAX (+SAV)7,507.80$ 10,496.73$ 13,120.80$ 15,728.72$ 18,319.18$ 20,890.76$ 23,442.04$ 25,971.50$ 28,477.57$ 30,958.62$
30 Cash Flow After Tax =CFATx 43,393.05$ 42,943.93$ 42,817.20$ 42,660.49$ 42,471.33$ 42,247.13$ 41,985.22$ 41,682.79$ 41,336.92$ 40,944.57$
Line Total Benefit Analysis
31 Cash Flow After Tax CFATx 43,393.05$ 42,943.93$ 42,817.20$ 42,660.49$ 42,471.33$ 42,247.13$ 41,985.22$ 41,682.79$ 41,336.92$ 40,944.57$
32 Rehabilitation Tax Credit +RTC -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
33 Low Income Housing Tax Credit +LIHTC -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
34 Net Sale Proceeds +NSP -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
35 Total Benefits After Tax (NCFAT)=NCFATx 43,393.05$ 42,943.93$ 42,817.20$ 42,660.49$ 42,471.33$ 42,247.13$ 41,985.22$ 41,682.79$ 41,336.92$ 40,944.57$
36 Return on Investment ROI 8.07%7.99%7.97%7.94%7.90%7.86%7.81%7.75%7.69%7.62%
YR11 YR12 YR13 YR14 YR15 YR16 YR17 YR18 YR19 YR20 Line Description
Revenues
761,347.34$ 776,574.29$ 792,105.78$ 807,947.89$ 824,106.85$ 840,588.99$ 857,400.77$ 874,548.78$ 892,039.76$ 909,880.55$ 1 Gross Rental Income
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 2 Other Income
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 3 Tenant Contributions
761,347.34$ 776,574.29$ 792,105.78$ 807,947.89$ 824,106.85$ 840,588.99$ 857,400.77$ 874,548.78$ 892,039.76$ 909,880.55$ 4 Gross Revenues
38,067.37$ 38,828.71$ 39,605.29$ 40,397.39$ 41,205.34$ 42,029.45$ 42,870.04$ 43,727.44$ 44,601.99$ 45,494.03$ 5 Vacancy Loss
(5% Vac. Rate x Gross Income)
723,279.98$ 737,745.58$ 752,500.49$ 767,550.50$ 782,901.51$ 798,559.54$ 814,530.73$ 830,821.34$ 847,437.77$ 864,386.53$ 6 Effective Gross Income
Operating Expenses
1,970.13$ 2,029.23$ 2,090.11$ 2,152.81$ 2,217.40$ 2,283.92$ 2,352.44$ 2,423.01$ 2,495.70$ 2,570.57$ 7 Insurance
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 8 Maintenance & Structural Repairs
41,368.41$ 42,609.46$ 43,887.74$ 45,204.38$ 46,560.51$ 47,957.32$ 49,396.04$ 50,877.92$ 52,404.26$ 53,976.39$ 9 Management Fees
227,243.71$ 234,061.02$ 241,082.85$ 248,315.33$ 255,764.79$ 263,437.74$ 271,340.87$ 279,481.10$ 287,865.53$ 296,501.50$ 10 Misc. Operating Expenses
122,312.58$ 125,981.96$ 129,761.42$ 133,654.26$ 137,663.89$ 141,793.81$ 146,047.62$ 150,429.05$ 154,941.92$ 159,590.18$ 11 Property Taxes
24,929.65$ 25,677.54$ 26,447.86$ 27,241.30$ 28,058.54$ 28,900.30$ 29,767.30$ 30,660.32$ 31,580.13$ 32,527.54$ 12 Reserves
417,824.48$ 430,359.21$ 443,269.99$ 456,568.09$ 470,265.13$ 484,373.08$ 498,904.27$ 513,871.40$ 529,287.55$ 545,166.17$ 13 Total Operating Expenses
305,455.50$ 307,386.37$ 309,230.50$ 310,982.41$ 312,636.38$ 314,186.46$ 315,626.45$ 316,949.94$ 318,150.23$ 319,220.35$ 14 Net Operating Income
231,540.00$ 231,540.00$ 231,540.00$ 231,540.00$ 231,540.00$ 231,540.00$ 231,540.00$ 231,540.00$ 231,540.00$ 231,540.00$ 15 Debt Service First Mortgage
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 16 Debt Service Subordinate Mortgage(s)
231,540.00$ 231,540.00$ 231,540.00$ 231,540.00$ 231,540.00$ 231,540.00$ 231,540.00$ 231,540.00$ 231,540.00$ 231,540.00$ 17 Total Debt Service
73,915.50$ 75,846.37$ 77,690.50$ 79,442.41$ 81,096.38$ 82,646.46$ 84,086.45$ 85,409.94$ 86,610.23$ 87,680.35$ 18 Cash Flow
537,500.00$ 537,500.00$ 537,500.00$ 537,500.00$ 537,500.00$ 537,500.00$ 537,500.00$ 537,500.00$ 537,500.00$ 537,500.00$ 18(b)Equity Investment In Project
13.8%14.1%14.5%14.8%15.1%15.4%15.6%15.9%16.1%16.3%19 Cash -on- Cash ROI
Cash Flow divided by Equity Investmentt in Project
1.319234265 1.327573495 1.335538146 1.343104485 1.350247818 1.356942456 1.363161676 1.368877692 1.374061612 1.378683401 Debt Coverage Ratio
YR11 YR12 YR13 YR14 YR15 YR16 YR17 YR18 YR19 YR20 Line Description
Determining Taxes
73,915.50$ 75,846.37$ 77,690.50$ 79,442.41$ 81,096.38$ 82,646.46$ 84,086.45$ 85,409.94$ 86,610.23$ 87,680.35$ 20 Cash Flow
159,000.00$ 159,000.00$ 159,000.00$ 159,000.00$ 159,000.00$ 159,000.00$ 159,000.00$ 159,000.00$ 159,000.00$ 159,000.00$ 21 Depreciation Expenses
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 22 Amortization of Fees
162,000.00$ 167,000.00$ 172,000.00$ 177,000.00$ 182,000.00$ 187,000.00$ 192,000.00$ 197,000.00$ 202,000.00$ 207,000.00$ 23 Principal Payments
18,550.00$ 18,550.00$ 18,550.00$ 18,550.00$ 18,550.00$ 18,550.00$ 18,550.00$ 18,550.00$ 18,550.00$ 18,550.00$ 24 Reserves
95,465.50$ 102,396.37$ 109,240.50$ 115,992.41$ 122,646.38$ 129,196.46$ 135,636.45$ 141,959.94$ 148,160.23$ 154,230.35$ 25 Earnings (Loss) Before Taxes
35%35%35%35%35%35%35%35%35%35%26 x Tax Rate (35% or 0%)
33,412.93$ 35,838.73$ 38,234.18$ 40,597.34$ 42,926.23$ 45,218.76$ 47,472.76$ 49,685.98$ 51,856.08$ 53,980.62$ 27 Tax Incurred (Saved)
Cash Flow After Tax
73,915.50$ 75,846.37$ 77,690.50$ 79,442.41$ 81,096.38$ 82,646.46$ 84,086.45$ 85,409.94$ 86,610.23$ 87,680.35$ 28 Cash Flow
33,412.93$ 35,838.73$ 38,234.18$ 40,597.34$ 42,926.23$ 45,218.76$ 47,472.76$ 49,685.98$ 51,856.08$ 53,980.62$ 29 Tax Incurred (Tax Saved)
40,502.58$ 40,007.64$ 39,456.33$ 38,845.07$ 38,170.15$ 37,427.70$ 36,613.70$ 35,723.96$ 34,754.15$ 33,699.73$ 30 Cash Flow After Tax
Line Total Benefit Analysis
40,502.58$ 40,007.64$ 39,456.33$ 38,845.07$ 38,170.15$ 37,427.70$ 36,613.70$ 35,723.96$ 34,754.15$ 33,699.73$ 31 Cash Flow After Tax
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 32 Rehabilitation Tax Credit
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 33 Low Income Housing Tax Credit
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 34 Net Sale Proceeds
40,502.58$ 40,007.64$ 39,456.33$ 38,845.07$ 38,170.15$ 37,427.70$ 36,613.70$ 35,723.96$ 34,754.15$ 33,699.73$ 35 Total Benefits After Tax (NCFAT)
7.54%7.44%7.34%7.23%7.10%6.96%6.81%6.65%6.47%6.27%36 Return on Investment
Applications are due on Friday, January 16, 2015 by noon. NO EXCEPTIONS!
City of Iowa City
Neighborhood Services 410 E. Washington Street Iowa City, IA 52240 319.356.5230
Housing
Application for FY2016 CDBG/HOME funds
Complete Application. Should you have any questions while completing the application contact Neighborhood Services staff at 319.356.5230 or by email at
tracy-hightshoe@iowa-city.org.
Submit the original application to the City of Iowa City, Neighborhood Services. 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 Neighborhood Services representative OR email the completed application to
tracy-hightshoe@iowa-city.org. Emailed applications must receive a confirmation email from City staff before the application deadline to be eligible for funding.
Please remember that only one project proposal may be submitted on each application. Please use separate applications for each project proposal.
Housing 1 FY16 CDBG/HOME Funding Request
Housing
Project Name:
Type of Project (check one): Homeownership Rental Tenant Based Rent Asst. Rehabilitation
(Rental and Rental Rehabilitation projects require the completion of rental housing pro forma)
General Information
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):
Community Housing Development Organization Private non-profit organization
Private for-profit, individual or partnership applicant Public Organization
4. Amount of HOME/CDBG Funds Requested: $
5. Did you attend the Applicant Workshop? NO
YES - Please indicate date attended: 12/18/14 or 1/5/15
Housing 2 FY16 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
Section 1 – Need/Priority
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.icgov.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 2016-2020 CITY STEPS (www.icgov.org/actionplan)
7c. Will this project address the established priorities in the City’s Strategic Plan? Please identify the priority(s). (www.icgov.org/strategicplan)
8. Please specify the one most applicable priority need this application addresses, as shown in the 2016-2020 CITY STEPS Plan. Priority Need:
Housing 3 FY16 CDBG/HOME Funding Request
Section 2 – Leveraging Resources/Budget
9. Please provide the requested loan terms and affordability period:
Principal Amount
Interest Rate
Loan
Amortization (Years)
Affordability
Period (Years)
Yearly 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
Funds:
Funding
Amount
Interest
Rate
Amortization
Term Committed?
Iowa City CDBG or HOME
Funding (public)
$ Yes No
State of Iowa HOME or
CDBG (public)
$ Yes No
IFA – Low Income Housing
Tax Credits (public)
$ Yes No
Bank Loan (private) $ Yes No
Applicant Contribution of Equity (private) $ Yes No
Other Public Resources
(please list)
$ Yes No
Other Private Resources
(please list)
$ Yes No
TOTAL $
Housing 4 FY16 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
10c. 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 _______ hours x $10 per hour = $_________________
Skilled labor (_____________ ) _______ hours x $___ per hour = $_________________
Skilled labor (_____________ ) _______ hours x $___ per hour = $_________________
Skilled labor (_____________ ) _______ hours x $___ per hour = $_________________
Total $_________________
12. Please identify any identity of interest (IOI) relationships with the applicant and/or project owner, i.e. General Partner has a financial interest in the construction company, etc.
Housing 5 FY16 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
Section 3 – Feasibility/Need for Subsidy
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 Note: If funded, this schedule will be used for any project agreement for the use of CDBG\HOME funding.
Date: Description of Activity:
July 1, 2015 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 6 FY16 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 No
If yes, at what level?
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 City’s pro forma will
not be considered.
Section 4 – Impact/Benefit to the Community
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 Note: If this application is funded, the information in this table will be used as income targeting for the CDBG\HOME Agreement).
Number between 0 - 30% median income _______ households (a)
Number between 31 – 50% median income _______ households (b)
Number between 51 – 60% median income _______ households (c)
Number between 61 - 80% median income _______ households (d)
Number over 80% median income _______ households (e)
Total _______ households (f)
Percent LMI _______ (a+b+c+d) ÷ f
Housing 7 FY16 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?
Yes 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.
Section 5 – Capacity/History of the Applicant
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 Budgeted Amount
Amount Expended (as of 12/31/14) Date All Units Completed
FY12 (July 2011 - June 2012) $ $
FY13 (July 2012 - June 2013) $ $
FY14 (July 2013 - June 2014) $ $
FY15 (July 2014 - June 2015)* $ $
*Six months remaining in FY15 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.
Applications are due on Friday, January 16, 2015 by noon. NO EXCEPTIONS!
City of Iowa City Neighborhood Services 410 E. Washington Street Iowa City, IA 52240 319.356.5230
Public Facility, Planning & Other Projects
Application for FY2016 CDBG/HOME funds
Complete Application. Should you have any questions while completing the
application contact Neighborhood Services staff at 319.356.5230 or by email at
tracy-hightshoe@iowa-city.org.
Submit the original application to the City of Iowa City, Neighborhood Services. 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 Neighborhood Services representative OR email the completed application to
tracy-hightshoe@iowa-city.org. Emailed applications must receive a confirmation
email from City staff before the application deadline to be considered for funding.
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 FY16 CDBG/HOME Funding Request
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? NO
YES - Please indicate date attended: 12/18/14 or 1/5/15
7. Brief summary of the proposed project (please limit response to a paragraph).
Section 1 – Need/Priority
8. Please specify the one most applicable priority need this application addresses, as shown in CITY STEPS
2016-2020 (www.icgov.org/actionplan or review Application Guide). Priority Need:
Public Facility, Planning & Other Projects 2 FY16 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.icgov.org/strategicplan)
Section 2 – Leveraging Resources\Budget
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
(e.g. 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
In
-Ki
n
d
Ca
s
h
An
ti
c
ip
a
t
e
d
Da
t
e
Co
m
m
it
t ed
Please place an “X” in the
box that applies:
$ $
$ $
$ $
$ $
$ $
$ $
Total $ $
Public Facility, Planning & Other Projects 3 FY16 CDBG/HOME Funding Request
Amount of private\agency\other funds $_________________________ (a)
Amount of CDBG funds $_________________________ (b) Total Project Funding $_________________________ (c) (a + b)
Number of persons assisted __________________________ (d) (see question 19)
Total cost per person $_________________________ (e) (c ÷ d) Total CDBG Cost Per Person $_________________________ (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 x $10 per hour = $
Skilled labor (_____________ ) _______ hours x $___ per hour = $
Skilled labor (_____________ ) _______ hours x $___ per hour = $
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?
Section 3 – Feasibility/Need for Subsidy
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: If funded, this schedule will be used for any project agreement for the use of CDBG funding.
Date: Description of Activity:
July 1, 2015 Beginning of City Fiscal Year and Project Start Date
Public Facility, Planning & Other Projects 4 FY16 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.
Section 4 – Impact/Benefit to the Community
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 _______ persons (a)
Number between 31 - 50% median income _______ persons (b)
Number between 51 - 80% median income _______ persons (c)
Number over 80% median income _______ persons (d)
Total _______ persons (e)
Percent LMI _______% (a + b + c) ÷ e
Percent Iowa City Residents _______%
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 5 FY16 CDBG/HOME Funding Request
20. Does the proposed project pay full property taxes? Yes 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? Yes No If yes, what is the percent of full taxes paid? _____% and amount paid is $ ______________
Section 5 – Capacity/History of the Applicant
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)
Fiscal Year Funds Recv’d Budgeted Amount
Amount
Expended (as of 12/31/14) Date All Units Completed
FY12 (July 2011 - June 2012) $ $
FY13 (July 2012 - June 2013) $ $
FY14 (July 2013 - June 2014) $ $
FY15 (July 2014 - June 2015)* $ $
*Six months remaining in FY15 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 the 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.
CITY OF IOWA CITY
MEMORANDUM
Date: August 25, 2015
To: Tom Markus, City Man
From: Douglas Boothroy, Director odf&t%!r7'elopmenI Tervices
Re: Riverfront Crossing Inclusionary Hou itg (IH) Ordinance
Introduction:
At the January 6, 2015 City Council meeting, Council directed the staff to convene an ad-hoc
work committee to study and develop the fundamental principles that would be the basis for an
IH requirement for the Riverfront Crossings area. This direction was consistent with the
discussion and recommendations found in the December 15th, 2014 Staff memo (see attached).
The ad-hoc work committee has completed its work and unanimously recommends that Council
proceed with the development and adoption of an IH ordinance based on the recommendations
outlined below.
Background:
In designing IH requirements for the Riverfront Crossings area, it's important to note that a
number of City studies document that the lack of affordable housing is a growing community
issue. The 2013 Iowa City Comprehensive Plan and the Riverfront Crossings Plan both support
measures to increase the supply of affordable housing and recognize the public benefit of mixed
income neighborhoods. The 2016-2020 City STEPS, 2014 Analysis of Impediments to Fair
Housing, and the 2014 Metropolitan Planning Organization's update of the 2007 Housing
Market Analysis all suggest policy and program initiatives to increase the supply of affordable
housing; use of IH requirements are identified as one such approach.
Committee Process:
Over the past six months, the ad-hoc work committee (composed of developers, a banker, and
affordable housing advocates) held a series of meetings to consider the possibility of requiring
affordable housing in Riverfront Crossings in exchange for zoning to a Riverfront Crossings
designation (includes density bonuses and mixed use options), and/or use of Tax Increment
Financing (TIF) for a development. Early in their deliberations, the committee agreed that, if an
IH regulation was established, it should: be designed to increase production of a relatively
permanent supply of affordable housing; be achievable; and, ensure that the amount of below
market -rate housing leveraged results with no net cost to a developer. Committee members
agreed that if IH requirements are to be effective, they must be workable and make sense to the
development community. - - - -
Using these parameters, the committee reached unanimous agreement on the following
fundamental principles upon which an IH regulation for the Riverfront Crossings area should be
based.
08-27-15
IP3
August 25, 2015
Page 2
Recommended Fundamental Principles of an Inclusionary Housing Regulation
PRINCIPLE #1 — Provision of inclusionary housing should be mandatory, not
voluntary.
Inclusionary Housing is mandatory:
When the City participates financially (e.g. TIF) in a development that includes
residential units regardless of zoning designation.
When property is zoned a Riverfront Crossings zoning designation.
Comment
These mandatory requirements guarantee that affordable housing is created with new
residential development. The affordable housing requirement applies only when the City
participates financially and/or when a property is zoned to a Riverfront Crossings
designation (allows higher densities and mixed uses).
PRINCIPLE #2 — A percentage of units in a development should be set aside for
housing that is affordable for an established period of time.
Set-aside percentage and term of affordability:
When the City participates financially in a development, 15% of the residential units must
be affordable for a minimum term of 20 years, or the life of the TIF, or term of
developer's agreement, whichever is longer.
When the City is not participating financially in a development, 10% of the residential
units must be affordable for a minimum term of 10 years.
Comment
Set-aside percentage is the requirement that a portion (percentage) of the total number of
residential units be affordable. The set-aside strongly impacts development revenues
possible financial viability of a project. Set-aside percentages generally range from 10 to 20
percent in 1H ordinances. The committee recommends a 15% set-aside if the City provides
financing and a 10% set-aside if no public financing is involved.
Term of affordability is the length of time residential units must stay affordable. Affordability
terms range from 10 to 99 years in 1H ordinances. To protect the public's investment in
affordable housing, the committee recommends a minimum of 20 year term of affordability
when TIF is used.
PRINCIPLE # 3 — Project size should be considered and a threshold established
for a set-aside requirement.
Development size threshold:
Developments that include 10 or more residential units are subject to the set-aside
requirement.
August 25, 2015
Page 3
Comment
Threshold size is the number of units that "trigger" the affordable housing set-aside
requirement. The 10 -unit threshold will require most new developments to include
affordable housing while also recognizing that an inclusionary housing requirement for
small projects is often not practical or financially feasible.
PRINCIPLE #4 — Requirements should be appropriate for the type of development
rental vs. owner -occupied housing).
Type of development:
Rental projects are required to provide affordable units within the development unless
the developer qualifies for a hardship exemption to provide a 'fee -in -lieu'.
Owner -occupied projects may choose to pay a 'fee -in -lieu' for their affordable housing
obligation, or may offer affordable for -sale units to non -profits for management and re-
sale to income -qualifying owners. Proceeds from the 'fee -in -lieu' fund may be used for
down payment assistance for income -qualifying households purchasing owner -occupied
units.
Comment
Affordable rental housing is the community's greatest housing need. Affordable rental units
must be developed on-site unless the development qualifies for a hardship exemption to
provide a `fee -in -lieu' (see below). To create economically integrated neighborhoods,
affordable housing units must be built within each development. This on-site requirement
prevents affordable housing from being clustered and prevents income -based
concentrations within the Riverfront Crossings area.
Developments designed for owner -occupied units are allowed to provide either a 'fee -in -
lieu' or provide units on-site. This flexibility is provided because it is more difficult for low
income families to qualify for mortgages. If the City participates financially, owner -occupied
units could be required to be on-site through the developer's agreement.
PRINCIPLE #5 — Alternatives to the on-site affordable housing set-aside should
be provided.
Alternatives:
Fee -in -lieu' contributions. These contributions may include money, land or other in-kind
contributions. Rental projects may appeal on site requirement in exchange for a `fee -in -
lieu' option. This may be provided off-site but only within the Riverfront Crossings Area.
Comment
A `fee -in -lieu' contribution allows a developer to make a cash payment instead of
constructing the required affordable housing units. The fee is to be based on the financial
clap between market rate units and affordable units. These payments are deposited into an
affordable housing fund or managed by the City to fund/assist other affordable housing
opportunities. Fee -in -lieu provisions are common in IH ordinances to provide flexibility and
to acknowledge that affordable housing may not be practical ( e.g. a development loses
money as an unavoidable consequence of the IH requirement). Fees allow for the creation
August 25, 2015
Page 4
of an affordable housing fund to provide housing in other locations, fund non -profits,
provide down -payment assistance for home ownership, or other similar types of affordable
housing funding.
PRINCIPLE #6 — Funds created from `fee -in -lieu' contributions should be used to
create an Affordable Housing Fund for the sole purpose of supporting affordable
housing in the Riverfront Crossings area.
Use of funds:
Funds can only be utilized for affordable housing located within the Riverfront Crossings
Area.
Funds may be used for down payment assistance for owner -occupied households.
Down payment assistance made available for income -qualifying households
must be repaid upon resale of the unit. Down payment assistance may then be
recycled to another income -qualifying household. Owner is able to keep any
equity over and above the down payment assistance.
Funds may be used to provide grants/low interest and/or forgivable loans to local non-
profit affordable housing agencies (e.g. Fellowship, Trust Fund, Habitat, other) for
affordable housing development.
Oversight of funds:
A third party agency should manage the Affordable Housing Fund. A third party(e.g. the
Housing Trust Fund or similar agency) has the expertise and staff to administer this fund
without having to add a City staff. The City may provide criteria by which the funds may
be used and request annual reports on use of the funds.
Comment
City legal staff advise that fees acquired as part of the development process in Riverfront
Crossings must be used solely for affordable housing in Riverfront Crossings.
PRINCIPLE #7 — Affordable housing should be provided to households of a
qualifying income level.
Income Target:
Renters: Not to exceed 60% of Area Median Income (AMI). With a TIF project, the City
may negotiate affordability level (i.e. some units at a lower percentage than 60% AMI).
Owners: Not to exceed 110% AMI. With a TIF project, the City may negotiate
affordability level (i.e. some units at a lower percentage than 110% AMI).
Elderly/Disabled: Developments designed and utilized for elderly/disabled are not
required to provide an affordable housing set-aside.
August 25, 2015
Page 5
Comment
The AMI for a 3 person household is $74,100. Affordable housing in Riverfront Crossings is
being defined at 60% AMI for rental housing ($44,460 for 3 person household and is the
funding level for federal Low Income Housing Tax Credit projects) and 110% AMI for owner
occupied units ($81,510 for 3 person household). The greatest need is for affordable rental
housing because almost 2/3 of all renters in the community are cost -burdened (i.e. pay more
than 30% of adjusted income for rent).
Recommendations:
1. City Council direct staff to develop an Inclusionary Housing ordinance for
consideration, applicable only to the Riverfront Crossings area, and that the ordinance
be based on seven fundamental design principles recommended by the ad-hoc work
committee.
2. City Council amend the Affordable Housing Location Model. This amendment is
necessary if the IH regulations are to be effective in increasing supply of affordable
housing in the Riverfront Crossings area. Attached to this document is a memo of
explanation from Tracy Hightshoe, Neighborhood Service Coordinator.
3. City Council direct staff to provide to Council a periodic review of the IH requirement's
impact in the Riverfront Crossings area.
Conclusion:
The development of a workable Inclusionary Housing requirement in the Riverfront Crossings
area would be a significant achievement, for which the committee's recommendations are a
ground breaking first step.
On behalf of the City Council and staff, I wish to thank the members of the ad-hoc work
committee who generously volunteered their time and expertise. This diverse group of citizens
worked together in a positive, solutions -focused manner to study, deliberate, find common
ground, and build consensus. This is a very complex set of issues, requiring a balance of
aspirations and practicality. I commend the committee for reaching consensus and developing a
set of recommendations that are unanimously supported.
Thank you to the members of the ad-hoc inclusionary housing work committee:
Tracey Achenbach, Housing Trust Fund of Johnson County
Maryann Dennis, Housing Fellowship
Chad Keune, Homebuilders Association President, 2014
Brad Langguth, Hills Bank and Trust
Scott McDonough, Iowa Valley Habitat for Humanity Chair, 2015
Sally Scott, Johnson County Affordable Homes Coalition
Glenn Siders, Siders Development
Attachments: August 25th, 2015 Tracy Hightshoe Affordable Housing Location Model memo
December 15th, 2014 Riverfront Crossings and Inclusionary Housing memo