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HomeMy WebLinkAbout1984-07-31 ResolutionRESOLUTION NO. 84-210 RESOLUTION TO ISSUE CIGARETTE PERMITS WHEREAS, the following firms and persons have made appli- cation and paid the mulct tax required by law for the sale of cigarettes and cigarette papers; therefore, BE IT RESOLVED BY THE CITY COUNCIL OF IOWA CITY, IOWA, that the applications be granted and the City Clerk be and he/she is hereby directed to issue a permit to the following named persons and firms to sell cigarette papers and cigarettes: Stonewall's Lounge 127 Iowa Avenue Iowa City, IA 52240 It was moved by Zuber and seconded by Ambrisco that the Resolution as read be adopted, and upon roll call there were: Ambrisco Baker Dickson Erdahl McDonald Strait Zuber AYES: X X X X X X NAYS: ABSENT: X Passed and approved this 31st day of July 19 84 ayor Attest: azfze� City Clerk 14-15- Council Member Zuber introduced the following Resolution— e—ntitled"RESOLUTION ACCEPTING WOseconded moved its adoption. Council Member _RK" and lled Ambrisco the motion to adopt. The roll was caand the vote was, i AYES: Ambrisco, Baker, DicksonyTlcDonald�— . Strait_Zuber NAYS: None Whereupon the Mayor declared the following Resolution duly adopted: 84-211 RESOLUTION ACCEPTING WORK WHEREAS on September 2B, 1983: Iowa City. Iowa. entered into contract with Ahrens Construction of Harper, Iowa, for the construction of the 1983 Paving Improvements (Ly on'sAddition), within the City as therein described; and WHEREAS said contractor has fully completed the construc- tion of said improvements known as the 1983 Paving Improvements (Lyon's 2nd Addition), in accordance with the terms and conditions of said contract and plans and specifications, as shown by the certificate984of the Engineer filed with the Clerk on —_Jud 25 _._ NOW THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF IOWA CITY, IOWA: Section 1. That said report of the Engineer be and the same is hereby approved and adopted and said hereby accepted as having improvements are been fully completed in accordance with the said plans. specifications and contract. The total contract cost of the improvements payable under said contract is hereby determined to be $ 78,979.97 — — _- Section 2. The total project cost including construction, engineering, legal and administrative costs is determined to be $.9560_90 ___ -2- IW9 po-rur �•.ri✓y -� 3;vsrM (This Notice to be posted) NOTICE AND CALL OF PUBLIC MEETING Governmental Body: The City Council of Iowa City, Iowa. 'Date of Meeting: July 31, 1984 Time of Meeting: 7:30 P.M. Place of Meeting: Council Chambers, City Hall. Iowa City Iowa. PUBLIC NOTICE IS HEREBY GIVEN that the above mentioned governmental body will meet at the date, time and place above set out. The tentative agenda for said meetipg is as follows: Resolutions in connection with the 1983 Paving Improvements (Lyon's 2nd Addition). - Resolution accepting work. - Resolution ordering preparation of final plat and schedule of assessments Such additional matters as are set forth on the addi- tional 17__ page(s) attached hereto. (number) This notice is given at the direction of the Mayor pursuant to Chapter 28A, Code of Iowa, and the local rules of said governmental body. City Clerk Iowa City, Iowa V (CITY OF IOWA, CITY CMC CENTER 410 E. WASHNGTON ST. IOWA CITY, IOWA 52240 (319) 356-5000 ENGINEER'S REPORT July 24, 1984 Honorable Mayor b City Council Iowa City, Iowa Dear Honorable Mayor and Councilpersons: I hereby certify that the construction of the improvements listed below have been completed in substantial accordance with the plans and specifi- cations of the Engineering Division of the City of Iowa City. The required maintenance bond is on file in the City Clerk's office. 1983 Paving Improvements (Lyons 2nd Addition) Assessment Project as constructed by Ahrens Construction of Harper, Iowa. I hereby recommend that the above mentioned improvements be accepted by the City of Iowa City. Total project cost of the improvements is $97,560.90 which will be assessed to the adjoining property owners. Re p ctfully,Subm ted, Frank K. Farmer City Engineer tp2/I �0a�M JUL 251983 MARIAN K. KARR CITY CLERK (3) RESOLUTION NO. 84-212 RESOLUTION AUTHORIZING ADOPTION OF BY-LAWS FOR THE IOWA CITY COMMITTEE ON COMMUNITY NEEDS. WHEREAS, the Iowa City Committee on Community Needs is required by City Ordinance to adopt by-laws governing the operation of the Committee; and WHEREAS, the Iowa City Committee on Community Needs has unanimously approved acceptance of the proposed by-laws which are attached as Exhibit A to this document and by this reference made a part thereof; and WHEREAS, the Rules Committee of the Iowa City Council has recommended adoption of the by-laws for the Iowa City Committee on Community Needs. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF IOWA CITY, IOWA, that the by-laws of the Iowa City Committee on Community Needs be formally adopted by the Iowa City Council. It was moved by Zuber and seconded by Ambrisco the Resolu- tion be adopted, an upon roll call there were: AYES: NAYS: ABSENT: X AMBRISCO X BAKER X DICKSON X EROAHL X MCDONALD X STRAIT X — ZUBER Passed and approved this 31st day of July 1984. YOR ATTEST: CI Y CLERK Reaiwd 6 Approved BY TIM UW DspMwo Ll /1/40 EXHIBIT A Bylaws for Committee on Community Needs Article I Section 1. Regular Meetings. Regular meetings of this Committee shall be held monthly. Section 2. Special Meeting. Special meetings of the members may be called pe by the chairrson and shall be called by the chairperson at the request of three committee members. Section 3. Place of Meetings. Meetings shall be held in the Iowa City Public Library or any other public meeting place. Section 4. Notice of Meetings Notice and agenda for all regular meetings shall be dis ri uted to all members and the press. Special meetings may be called upon notice to all members and the media at least 24 hours before a special meeting is held. All provisions of the State Open Meetings Law shall be followed. Section 5. Quorum. A majority of the members of the Committee shall constitute a quorum of any meeting and the majority of votes cast at any meeting at which a quorum is present shall be decisive of any motion or election. Section 6. Proxies. There shall be no vote by proxy. Section 7. Public Discussion. Time shall be made available during all regular meetings or open pub is discussion. Article II Section 1. Membership. The CCN Committee shall consist of 11 members; term of membership shall be 3 years. The chairperson and co -chairperson will be elected annually from the committee members. All members of the Committee shall be qualified electors of the City of Iowa City, Iowa, and shall serve as members without compensation but shall be entitled to the necessary expenses, including travel expenses, incurred in the discharged of their duties. Section 2. Nomination. The City Council shall appointed members to CCN as vacancies occur. Section 3. Orientation. Prior to the first regular meeting following their appointment, new members shall be provided with copies of the Committee (CCN) bylaws. Section 4. Absences. Three consecutive, unexplained absences of a Committee member from regu ar meetings will result in a recommendation to the City Council from the Commission to discharged said member and appoint a new member. Page 2 Article III Section 1. Chair erson. The chairperson shall, when present, preside at all meetings, appoin�committees with the approval of the committee, call special meetings and in general perform all duties included in the office of a chairperson and such other duties as may be prescribed by the members from time to time. Section 2. Co -Chairperson. eerrson. The co -chairperson shall take over the above duties of the c airi person _in the event of the latter's absence. Article IV Section 1. Agenda. The chairperson or a designated representative, together with appropriate members of the City staff or City Council, shall prepare an agenda for all regular committee meetings. Agendas are to be sent to committee members, the City Council and and the media at least three days prior to the regular meetings. Section 2. Minutes. Minutes of all regular and special meetings are to be prepared andid'siributed to the City Council within two weeks of the meeting, in the manner prescribed by the Council. Minutes of all regular and special meetings will be mailed to all committee members during the week prior to the next meeting. Specific recommendations for the Council are to be set off from the main body of the minutes and appointments identified. Section 3.Policies and Programs. Periodically the Committee shall review RT the policies and programs of the City, relating to the Committee's functions and make such recommendations to the City Council as are deemed appropriate. ///0?0 RESOLUTION N0, 84-213 RESOLUTION APPROVING THE FINAL PLAT OF BDI FIFTH ADDITION, A SUBDIVISION OF JOHNSON COUNTY, IOWA WHEREAS, the owner, Business Development Inc., has filed with the City Clerk of Iowa City, Iowa, an application for approval of the final subdivision plat of BOI Fifth Addition, which property is legally described as: Part of Lot 6 Auditor's Plat 32, Iowa City, Johnson County, Iowa, as recorded in Johnson County Recorder's Office Plat Book 16, page 79 and also all of Lots 5 and 6, BDI Subdivision, Second Addition to Iowa City, as recorded in Johnson County Recorder's Office, Plat Book 19, page 80, more particularly described as follows: Commencing as a point of reference at the center of Section 24, Township 79 North, Range 6 West of the 5th Principal Meridian, Iowa City, Johnson County, Iowa (for this description only, the north line of the southwest quarter of said Section 24 is assumed to have a bearing of South 83040'00" West); Thence North 88051109" East 1508.15 feet along the south line of the Northeast quarter of said Section 24 to a point of intersection with the westerly line of the East 68 rods of the Southeast quarter of said section; Thence North 00003'29" East 333.54 feet along said westerly line of the East 68 rods of the Southeast quarter of said Section 24 to the point of beginning; Thence South 74003'05" West 499.56 feet along the north line of Lot 7, BDI Subdivision, Second Addition, to a point of intersection with the easterly right-of-way line of Heinz Road; Thence North 21035'08" West, 467.50 feet along said easterly right-of-way line of Heinz Road to a point of curvature; Thence Northeasterly 258.36 feet along a 200.00 foot radius curve concave easterly and subtended by a 240.77 foot chord bearing North 15025'19" East to a point of intersection with the northeasterly line of Lot 4, BOI Second Addition extended southeasterly; Thence North 37034115" West 376.81 feet along the northeasterly lot line of said Lot 4 to a point of intersection with the northerly line of said Lot 4; Thence North 62009130" West 545.00 feet along said northerly line of Lot 4 to a point of intersection with the East line of Lot 3, Auditor's Plat No. 32; Thence North 00029'22" West 182.53 feet along the easterly line of Lot 3 of said Auditor's Plat 32 to a point; Thence North 00006100" West 114.68 feet along the easterly line of Lots 2 and 1 of said Auditor's Plat 32 to a point of curvature on the easterly line of said Lot 1 of Auditor's Plat 32, ///S/ 4-2^PResolution No. 84-2- Page age 2 Thence Northwesterly 312.80 feet along a 382.04 foot radius curve concave southwesterly and subtended by a 304.14 foot chord bearing North 23058'11" West to a point of intersection with the southerly line of the Chicago, Rock Island and Pacific Railroad right-of-way; Thence South 62009'30"East 1870.28 feet along said southerly right-of-way line to a point; Thence South 27050'30" West 490.01 feet to a point of intersection with the westerly line of said east 68 rods of the southeast quarter of said Section 24; Thence South 00003'29" East 351.08 feet along said westerly line of the east 68 rods of the southeast quarter of Section 24 to the point of beginning, subject to easements of record. The area of this described parcel is 25.9 acres, more or less. WHEREAS, the Department of Planning and Program Development and the Public Works Department have examined the proposed final plat and have recommended approval of same; and WHEREAS, the final plat has been examined by the Planning and Zoning Commission and after due deliberation the Commission has recommended that it be accepted and approved; and WHEREAS, the final plat is found to conform with all of the requirements of the City Ordinances of the City of Iowa City, Iowa. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA: 1. That the final plat of BDI Fifth Addition is hereby approved. 2. The Mayor is hereby authorized to sign and the City Clerk to attest an Agreement Allocating Special Assessments on the land within the subdivi- sion, as authorized by Iowa Code Sec. 384.61. 2. That the Mayor and City Clerk of the City of Iowa City, Iowa, are hereby authorized and directed to certify this resolution which shall be affixed to the plat after passage and approval by law. The owner/subdivider shallbe responsible for recording at the office of the County Recorder of Johnson County, Iowa, a copy of the plat and resolution along with all legal documents required pursuant to the provisions of Chapter 409 of the Code of Iowa and Chapter 32 of the Iowa City Code of Ordinances, and returning a copy of such recorded documents to the office of the City Clerk before the issuance of any building permit is authorized. /qS/ 1 K Resolution No. gg- _ Page 3 It was moved by Zuber and seconded by Strait the Resolution be adopted, and upon rol ca 1 there were: AYES: NAYS: ABSENT: X Ambrisco X Baker X Dickson —� Erdahl X McDonald X Strait X Zuber Passed and approved this 31st day, of July , 1984. ATTEST: i Rncaived b Approved By The Legal papaftwd �e i i qe STAFF REPORT To: Planning d Zoning Commission Prepared by: Bruce Knight Item: S-8408. BDI Fifth Addition, Date: February 23, 1984 . Final Plat GENERAL INFORMATION Applicant: Business Development Inc. 129 East Washington Street Iowa City, Iowa 52240 Requested action: Final plat approval Purpose: To subdivide four new lots and extend Heinz Road Location: The northernmost end of Heinz Road Size: 25.8 acres Comprehensive plan: Industrial Existing land use and zoning: Undeveloped and I1 Surrounding land use and zoning: North - Undeveloped and RS5 East - Undeveloped and I1 South - Industrial and II West - Industrial and I1 Applicable regulations: Provisions of the Subdivision Code and Stormwater Management Ordi- nance 45 -day limitation period: 03/23/84 60 -day limitation period: 04/07/84 SPECIAL INFORMATION Public utilities: Water service is available. Sanitary sewer service is also available and will drain into the Heinz lift station as covered by agreement. Public services: Police and fire protection are available. Sanitation service would be provided by a private hauler. '1 Transportation: Physical characteristics: 2 Vehicular access is proposed from Highway 6 via Heinz Road. The topography is slightly sloping to relatively flat ANALYSIS The preliminary plat of SDI Fifth Addition was approved by City Council on February 14, 1983. The applicant is now requesting approval of the final plat of SDI Fifth Addition which conforms with the approved preliminary plat. Staff sees no problems with this subdivision, and upon submission of the legal papers, would recommend approval. STAFF RECOMMENDATIONS Staff recommends that the final plat of DDI Fifth Addition be deferred. Upon resolution of the deficiencies and discrepancies listed below, staff would recommend approval. DEFICIENCIES AND DISCREPANCIES 1. Legal papers have not yet been submitted. 2. Construction plans have not been submitted. 3. The legal description does not close within the required limits. ATTACHMENTS 1. Location map. Approved by: onald Sc meiser, Director Departme t of Planning 8 Program Development I RESOLUTION NO. 84-214 RESOLUTION APPROVING THE LARGE SCALE NON-RESIDENTIAL DEVELOPMENT (LSNRD) PLAN FOR LOT 1 OF BDI FIFTH ADDITION FOR PHASE I OF PHARMACEUTICAL DEVELOPMENT SYSTEMS, INC. WHEREAS, the owner, Pharmaceutical Development Systems, Inc., has filed with the City Clerk of Iowa City, Iowa, an application for approval of the preliminary and final LSNRD plan for Lot 1 of BDI Fifth Addition for Pharmaceutical Development Systems, Phase 1; and WHEREAS, the Department of Planning and Program Development and the Public Works Department have examined the proposed preliminary and final plan and have recommended approval of same; and WHEREAS, the preliminary and final plan has been examined by the Planning and Zoning Commission and after due deliberation the Commission has recommended that it be accepted and approved; and WHEREAS, the preliminary and final plan is found to conform with all of the requirements of the City Ordinances of the City of Iowa City, Iowa. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA: 1. That the preliminary and final LSNRD plan for Lot 1 of BOI Fifth Addition, Pharmaceutical Development Systems, Phase 1, is hereby approved. 2. That the Mayor and City Clerk of the City of Iowa City, Iowa, are hereby authorized and directed to certify this resolution which shall be affixed to the plat after passage and approval by law; and the owner shall record them at the office of the County Recorder of Johnson County, Iowa, before the issuance of any building permits is authorized. It was moved by Zuber and seconded by Ambrisco the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Ambrisco X Baker X Dickson X Erdahl X McDonald X Strait X Zuber Passed and approved this 31st day of _ July 1984. ATTEST:] Pacelved g Approvad CITY CLERK A Dy The Legal Depadimnt /yso2 U� --� City of Iowa Cifal MEMORANDUM Date: July 13, 1984 To: Planning & Zoning Commission From: Bruce A. Knight, Associate Planner Re: 5-8409. Pharmaceutical Development Systems, Inc. Large Scale Non -Residential Development (LSNRD) Plan On April 19, 1984, the Planning & Zoning Commission recommended approval of a revised preliminary and final LSNRD plan for Lot i of BDI Fifth Addition for Pharmaceutical Development Systems Inc. Subsequently, the City Council acted to defer this item indefinitely at the request of the applicant. The applicant has now revised the LSNRD plan again and is resubmitting it for the Planning & Zoning Commission's consideration. The revised plan is almost identical to the originally approved plan except that the locations of the manufacturing/warehouse building and the office building have been reversed (see Attachment B1 for original layout.) Staff sees no problem with this alteration and, therefore, recommends that the revised plan be approved. Vu naia scnmeiser, uirector epartment of Planning and Program Development bc5 10--p-. City of Iowa City MEMORANDUM Date: April 13, 1984 To: Planning and Zoning Commission kk From: Bruce A. Knight, Associate Planner Re: 5-8409. Revised Preliminary and Final LSNRD Plan for Pharmaceutical Development Systems, Inc. At the February 23, 1984, meeting, the Planning and Zoning Commission recommended by a 5-0 vote approval of the above item subject to receipt of construction a decision lhas cbeen tmade dbyathe applicant nce No. 7to reducerthe�size of the proposed building from 46,800 square feet to 24,137 square feet, for a total of 22,663 square feet. As a result of this change, parking require- ments for the proposed facility are reduced from 101 spaces to 60 spaces and the number of trees required by the tree ordinance for coverage of the parking lot are reduced proportionally. The only other significant change is a relocation of the drive into the loading dock in conjunction with the relocation of the loading dock.. which resulted from the change in building size. This application was never acted upon by the City Council and, therefore, the revised LSNRD plan is viewed as an amendment of the original application rather than a new item. Staff sees no problems with the proposed changes, and would recommend that the Commission take action to approve the prelimi- nary and final LSNRD plan for Pharmaceutical Systems, Inc., as revised, subject to approval of the construction plans. bj5/11 /4.5-z i 0 STAFF REPORT To: Planning E Zoning Commission Prepared by: Bruce Knight Item: S-8409. Pharmaceutical Date: February 23, 1984 Development Systems LSNRD plan, Preliminary and Final GENERAL INFORMATION Applicant: Pharmaceutical Development Requested action: Purpose: Location: Size: Comprehensive plan: Existing land use and zoning: Surrounding land use and zoning: Applicable regulations: 45 -day limitation period: SPECIAL INFORMATION Public utilities: Systems, Inc. P 1027 Hollywood Boulevard Iowa City, Iowa 52240 Preliminary and Final Large Scale Non -Residential Development Plan Approval To permit development of a 51,800 square, foot building for manufac- turing, warehouse and office uses. Lot 1 of BDI Fifth Addition 7.8 acres Industrial Undeveloped and I1 North - Undeveloped and 11 East - Undeveloped and I1 South - Warehouse and I1 West - Undeveloped and I1 Provisions of the Large Scale Non -Residential Development, Stormwater Management, and Zoning ordinances. 3/23/84 Sewer and water services are available. /// 5-.:,- Public services: Transportation: Physical characteristics: ANALYSIS Police and fire protection are available. Sanitation service would be provided by a private hauler. Vehicular access is proposed via Heinz Road. The topography is slightly sloping to relatively flat. Chapter 27 of the Iowa City Code of Ordinances defines a Large Scale Non -Residential Development as "...an office, commercial or industrial building built upon a separate tract greater than two (2) acres in area." In this case, the applicant, Pharmaceutical Development Systems Inc., is proposing to construct two buildings - one housing manufacturing and warehouse uses and one housing an office use for a total square footage of building coverage of 51,800 square feet on a 7.8 acre lot. Therefore, an LSNRD plan must be approved before issuance of a building permit can be authorized. The tree ordinance provisions of the Zoning Ordinance requiring trees adjacent to the right-of-way and in the parking area apply to this development. Large trees are required adjacent to the right-of-way at a ratio of one tree per 40 feet of lot frontage. The property in question has a total of 1,376 feet of frontage on Heinz Road, and therefore, 35 large trees are required. The applicant has shown 18 large trees adjacent to the right-of-way and omitted the remainder of the required trees due to interference of utilities and the location of the drainage swale. The ordinance sates that "if any provision of this Chapter would preclude the planting of one or more trees adjacent to the right-of-way, the trees unable to be planted adjacent to the right-of-way shall be provided within the right-of-way according to the provisions of paragraph (3). However, trees excluded by the provisions of paragraph (3) may be omitted." In this case, because of the drainage swale'no trees can be planted in the ROW. Therefore, if the applicant can demonstrate that they cannot plant all of the required trees adjacent to the ROW, those trees which cannot be planted may be omitted. However, staff does not feel that the applicant has adequately shown that the required trees cannot be planted. Trees are also required to be located in parking areas in such a manner that "...every parking space or portion thereof is not more than 40 feet from a small size tree within a tree island or 60 feet from a medium or large size tree within a tree island." The tree locations proposed on the LSNRD plan would comply with this requirement. STAFF RECOMMENDATION Staff recommends that the preliminary and final Large Scale Non -Residen- tial Development plan of Pharmaceutical Development Systems be deferred. Upon resolution of the above concerns, and the deficiencies and discrepan- cies listed below, staff would recommend approval. /ysz 3 DEFICIENCIES AND DISCREPANCIES 1. Final plat of BDI Fifth Addition should be approved before this plan is approved; therefore, the subdivision should not be labeled as proposed. 2. Construction plans and calculations should be submitted regarding the proposed culverts under the drives and how they will function with the required drainage swales. 3. A signed statement of intent is required from the developer which includes: a. Evidence of ownership of the property or options to purchase or concurrence in the application by the owner. b. A description of the proposed development. c. An intended time schedule for the completion of the development. 4. All required parking stalls should be clearly denoted on the plan. ATTACHMENTS 1. Location map. Approved by: rna m iser, Director ept. of anning R Program Development LQGAT -A NU&P 5-a6r RESOLUTION NO. 84-215 RESOLUTION APPROVING THE PRELIMINARY AND FINAL LARGE SCALE NON-RESIDENTIAL DEVELOPMENT PLAN OF H. P. SMITH COMPANY. WHEREAS, the owners, H. P. Smith Company, a division of James River Corporation, have filed with the City Clerk of Iowa City, Iowa, an application for approval of the preliminary and final Large Scale Non - Residential Development Plan of the H. P. Smith Company. WHEREAS, the Department of Planning and Program Development and the Public Works Department have examined the proposed preliminary and final plan and have recommended approval of the same; and WHEREAS, a preliminary and final plan has been examined by the Planning and Zoning Commission and after due deliberation the Commission has recommended that it be accepted and approved; and WHEREAS, the preliminary and final Large Scale Non -Residential Development Plan is found to conform with all of the requirements of the City ordi- nances of the City of Iowa City, Iowa. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA: 1. That the preliminary and final Large Scale Non -Residential Development Plan for H. P. Smith Company is hereby approved. 2. That the Mayor and City Clerk of the City of Iowa City, Iowa, are hereby authorized and directed to certify approval of this resolution which shall be affixed to the plan and of the preliminary and final plan after passage and approval by law; and the owner/subdivider shall record the final plan at the office of the County Recorder of Johnson County, Iowa, before issuance of any building permits is authorized. It was moved by Ambrisco and seconded by Dickson the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Ambrisco X Baker X Dickson _T_ Erdahl X McDonald X Strait X Zuber Passed and approved this 31st day of July 1984. LZ YOR ATTEST: e CITY CLERK pheeived & Approved By The Legal Deparinftd ab 94- 7-3 To: Planning & Zoning Commission Item: S-8423. H.P. Smith-LSNRD Preliminary and Final GENERAL INFORMATION Applicant: Requested action: Purpose: Location: Size: Existing land use and zoning: Surrounding land use and zoning: Comprehensive Plan: Applicable Regulations: 45 -day limitation period: SPECIAL INFORMATION Public utilities: Public services: STAFF REPORT Prepared by: Karin Franklin Date: July 19, 1984 Ragnar Benson, Inc. 250 South NW Highway Park Ridge, Illinois 60068 Approval of a preliminary and final LSNRD plan To expand the existing plant to include additional manufacturing space. In the northeast quadrant of the intersection of Highway 6 Bypass and Industrial Park Road. 15.12 acres M/L Industrial; I-1 North - warehouse; I-1 East - industrial; I-1 South - convenience store; CN -1 West - industrial; I-1 Industrial Large Scale Non-residential Development regulations; zoning ordinance, stormwater management ordinance August 20, 1984 Water and sanitary sewer service are available. The plant receives sanitary sewer service through the Fairmeadows lift station. The anticipated increase in effluent will be restricted to domestic sewage, that is, sewage generated by employees. The process at H.P. Smith is a dry use. Municipal police and fire protec- tion will be provided. ldls�5 2 Transportation: Physical characteristics: ANALYSIS Vehicular access is provided from Industrial Park Road off of Highway 6. The plant and the proposed expan- sion are in the Snyder Creek watershed; the lot is bound on the northwest, north and east by gently sloping terrain. The H.P. Smith Paper Company processes paper to make release paper which is used on the back of self-adhesive materials. The company proposes to expand its plant on Industrial Park Road to include nearly 76,000 square feet of additional manufacturing space, a new chemical storage area, and an expansion of the men's locker room. The plan submitted is in substantial compliance with the applicable regula- tions. Additional parking spaces and trees for compliance with the off-street parking requirements and the tree regulations have been shown. A fire access road, which was constructed with a previous expansion in 1982, is being relocated to the northeast to accommodate the current expansion and to provide room for future expansion. (Approval of the plan before the Commission does not grant approval of the future expansion at this time.) STAFF RECOMMENDATION The staff recommends approval of the preliminary and final LSNRD plan for the H.P. Smith plant upon resolution of the deficiencies and discrepancies cited below. DEFICIENCIES AND DISCREPANCIES 1. Existing parking spaces are no longer completely covered under the tree regulations. Ten spaces do not fall within the coverage radius. 2. An access easement for the stormwater detention area is required. ATTACHMENTS 1. Location map. 2. Letter of intent. ACCOMPANIMENTS 1. LSNRD Plan. Approved by: Departm'..e of1P1anning and Program Development le" H. P. SMITH DIVISION OF JAMES RIVER CORPORATION 5001 W &.IpSi.In S1.. Sedlofd Pafk. IL 6OG381012145H777 July 11, 1984 Mr. Doug B00thr0y Senior Planner CPPV OF Im CITE Iowa city, IA. 52240 SUa=: Large Scale Non-residential Development Plan H.P. Snith Paper Co., Iowa City, Iowa (RWISED) Dear Mr. Boothroy: As per the request of Ms. Karin Franklin, this letter is to serve as a state- ment of intent of the large Scale Mon -residential Development for the H.P. Smith Paper Co. in Iowa City, Iowa. OWNMWIP: James River Corporation, a Virginia incorporated company, owns the lard on which the current H.P. Smith Paper Co. plant exists. H.P. Smith Paper Co. is a division of the James River Corporation. The proposed expansion includes a 78,490 S.F. manufacturing addition, expansion to our existing chemical storage building, and expansion of our existing men's locker roan. INTENDED TIME SCHEDULE FOR CCMPI,EI'iCN OF DEVEUJPMMU: The following is an intended time schedule for the proposed development: August, 1984 - CamLence building construction Spring, 1985 - Complete building construction CERTIFICATE OF IMPA7JEI'ZNTS• The H.P. Smith Paper Co. is in agreement with the improvements, including an expansion of the storm water retention pond, and parking improvements as shown on the Shriver-Hattery & Associates drawing for large Scale Non -Resid- ential Developnent Plan, and intends to install sale in accordance with said plan. (rontd) RECEIVED JA 1 198 /7 Page 2. Mr. Doug Boothroy City of Iowa City FUMCN: July 11, 1969 The proposes] additions will function in aocordance with descriptive desig- nations. The relocation of the water main and drive, as shsa*m on the large Scale Non-Hesidential Development Plan, are in accordanoe with item requested by the Iowa City Fire Chief. The proposed parking lot expansion is in accordance with the number of parking spaces deemed necessary by the Iowa City Building Inspector, as well as the number of proposed trees. Respectfully submitted, H.P. SMITH PAPER OJ. '�� rZ- J.T. i,@bb Vice President Manufacturing J1W/if cc: E. D. Bunyea - H.P. Smith Paper Co. J.L. Rooney - H.P. Smith Paper Co. /ys3 I H. P. SMITH DIVISION OF JAMES RIVER CORPORATION i 5701 W. snysnin Sl.Bealola Park, IL60638131214584177 JAMES L. ROONEY Vice Plawdent/Geemal Manager July 11, 1984 Ms. Karin Franklin Iowa City Planning & zoning CJ:nmission 410 E. Washington St. Iowa City, IA. 52240 Dear Ms. Franklin: H.P. smith, Division of Janes River corporation, is planning an expansion of its facility located at 2000 Industrial Park Road, Iowa City, Iowa. If our forecasted business growth materializes, we anticipate additions to our workforce to take place in two separate phases. Phase 1 will be the calendar years of 1985-1986 with a budgeted incremental increase of personnel to be 46 maximus. Phase 2 would take place in the calendar years of 1987-1989 with an additional budgeted increnental increase of 30 personnel maximum. We hope that this information will be helpful to you. Please feel free to call me if any further information is required. very truly yours, H.P. SMITH ' I 4Lne7y JLR/if cc: E.D. Bunyea - HPS RECEIVED JUL ! 11934 J. T. Webb - HPS J.T. Doyle - IC E.J. SC unacher - Shive-Hattery /4S3 p RESOLUTION NO. 84-216 RESOLUTION APPROVING PLANS, SPECIFICATIONS, FORM OF CONTRACT, AND ESTIMATE OF COST FOR THE CONSTRUCTION OF THE SANITARY SEWER IMPROVEMENTS -SEWER SYSTEM REHABILITATION ESTABLISHING AMOUNT OF BID SECURITY TO ACCOMPANY EACH BID, DIRECTING CITY CLERK. TO PUBLISH NOTICE TO BIDDERS, AND FIXING TIME AND PLACE FOR RECEIPT OF BIDS. WHEREAS, notice of public hearing on the plans, specifications, form of contract, and estimate of cost for the construction of the above-named project was published as required by law, and the hearing thereon held. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF IOWA CITY, IOWA: 1. That the plans, specifications, form of contract, and estimate of cost for the construction of the above-named project are hereby approved. 2. That the amount of bid security to accompany each bid for the construction of the above-named project shall be in the amount of 5% of the bid payable to Treasurer, City of Iowa City, Iowa. 3. That the City Clerk is hereby authorized and directed to publish notice for the receipt of bids for the construction of the above-named project in a newspaper published at least once weekly and having a general circulation in the city not less than four (4) nor more than twenty (20) days before the date established for the receipt of bids. 4. That bids for the construction of the above-named project are to be received by the City of Iowa City, Iowa, at the Office of the City Clerk, at the Civic Center, until 10:00 A.M. on the 21st day of August 19 84. Thereafter, the bids wt b'T1— a opened by the City Engineer or his designee, and thereupon referred to the Council of the City of Iowa City, Iowa, for action upon said bids at its next meeting to be held at the Council Chambers, Civic Center, Iowa City, Iowa, at 7:30 p.m. on the 25.t day of August , 19 84. It was moved by Zuher and seconded by Ambrisco _ that the resolution as read be adoptU, andupon roll call there were: AYES: NAYS: ABSENT: Ambrisco _ Baker X Dickson _ X Erdahl McDonald X Strait X Zuber Passed and approved this 31st day of Jul 1984 . GIJ�(T MAYOR Rocolved $ Approved ATTEST: w.�.,���� _ By,j}+i(fin Legal Department CITY LI.ERK 'I��S�QY q.5 Council Member Zuber introduced the following Resolution entitled "RESOLUTION ORDERING PREPARATION OF FINAL PLAT AND SCHEDULE OF ASSESSMENTS" and moved its adoption. Council Member Strait___— . seconded the w motion to adopt. The roll as called and the vote was, AYES: Strait,_AT_*rj_ �aker_,_Dickson,-- McDonald Zuber NAYS: None Whereupon the Mayor declared the following Resolution duly adopted: 84-217 RESOLUTION ORDERING PREPARATION OF FINAL PLAT AND SCHEDULE OF ASSESSMENTS BE IT RESOLVED, that the Engineer is hereby instructed to prepare a final plat and schedule showing the separate lots or parcels of ground subject to assessment for the cost of the 1983 Paving Improvements (Lyon's 2nd Addition), together with the names of the owners thereof, so far as practicable, and the amount assessable by law against each lot or parcel of ground so assessable. and against any railway or street railway legally assessable therefor, and _pr100%____—_— of the whole amount of the cost of said imovements shall be assessed against the benefited properties, but not in excess of the amounts so assessed in the preliminary plat and sche- dule for the improvement and filed in the office of the Clerk. PASSED AND APPROVED this 31�t__ day of . Aft 1984. _.� yor ALO�. ATTEST: Clbrk SC IZ1G? CIG -3 1-79 CERTIFICATE STATE OF IOWA ) SS COUNTY OF JOHNSON ) I, the undersigned City Clerk of Iowa City. Iowa, do hereby certify that attached is a true and complete copy of the portion of the corporate records of said Municipality showing proceedings of the Council and the same is a true and complete copy of the action taken by said Council with respect to said matter at the meeting held on the date indicated in the attachment, which proceedings remain in full force and effect, and have not been amended or rescinded in any way; that meeting and all action thereat was duly and publicly held in accordance with a notice of meeting and tentative agenda a copy of which was timely served on each member of the Council and posted on a bulletin board or other prominent place easily accessible to the public and clearly designated for that pur- pose at the principal office of the Council (a copy of the face sheet of said agenda being attached hereto) pursuant to the local rules of the Council and the provisions of Chapter 28A, Code of Iowa, upon reasonable advance notice to the public and media at least twenty-four hours prior to the com- mencement of the meeting as required by said law and with mem- bers of the public present in attendance; I further certify that the individuals named therein were on the date thereof duly and lawfully possessed of their respective city offices as indicated therein that no council vacancy existed except as may be stated in said proceedings. and that no controversy or litigation is pending. prayed or threatened involving the incorporation, organization, existence or boundaries of the City or the right of the individuals named therein as officers to their respective positions. WITNESS my hand and the seal of said Municipality hereto affixed this _31st day of __ July 1984. City Clerk Iowa City, Iowa SEAL /116 9 �W 1 July 31 , 1984 The City Council of Iowa City, Iowa, met in regular session, in the Council Chambers, Civic Center, 410 E. Washington Street, Iowa City, Iowa, at 7:30 o'clock P.M., on j the above date. There were present Mayor John McDonald I in the chair, and the following named Council Members: Ambrisco Baker Dickson McDonald Strait Zuber 1 Absent: Erdahl i _I_ AHLERS. GOONEY. DORWEILER• HAYNIEA SMITH. LAWYERS. DEE MOINES. IOWA Pt71� i Council Member Dickson introduced the following Resolution entitled "RESOLUTION APPROVING CONTRACT AND BOND FOR IMPROVEMENTS" and moved its adoption. Council Member Zuber seconded the motion to adopt. The roll was called and the vote was, AYES: Zuber, Ambrisco, Dickson, McDonald, Strait NAYS: None ABSTAINING: Baker Whereupon, the Mayor declared the following Resolution duly adopted: 84-218 RESOLUTION APPROVING CONTRACT AND BOND FOR IMPROVEMENTS BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA: That the construction contract and bond executed for the construction of certain public improvements described in general as Tanglewood -Ventura, St. Anne's Drive Special Paving Assessment Project, and as described in detail in the plans and specifi- cations heretofore approved, and which have been signed by the Mayor and Clerk on behalf of the City and proof of insurance coverage be and the same are hereby approved as follows: Contractor: Mptrn Pavprc, Tnr of Iowa City, Iowa Date of contract: December 2, 1983 Bond surety: United Fire & Casualty Company; Cedar Rapids, IA Date of bond: November 23, 1983 Portion of project: Entire Project PASSED AND APPROVED, this 31st day of July , 1984 . L4 yor ATTEST: Clerk -2- MILERS, COONEY. DORWEILER, HAYNIES SMITH, LAWYERS, DES MOINES, IOWA /#�o CIG -3 1-79 CERTIFICATE STATE OF IOWA ) SS COUNTY OF JOHNSON ) I, the undersigned City Clerk of Iowa City, Iowa, do hereby certify that attached is a true and complete copy of the portion of the corporate records of said Municipality showing proceedings of the Council, and the same is a true and complete copy of the action taken by said Council with respect to said matter at the meeting held on the date indicated in the attachment, which proceedings remain in full force and effect, and have not been amended or rescinded in any way; that meeting and all action thereat was duly and publicly held in accordance with a notice of meeting and tentative agenda, a copy of which was timely served on each member of the Council and posted on a bulletin board or other prominent place easily accessible to the public and clearly designated for that pur- pose at the principal office of the Council (a copy of the face sheet of said agenda being attached hereto) pursuant to the local rules of the Council and the provisions of Chapter 28A, Code of Iowa, upon reasonable advance notice to the public and media at least twenty-four hours prior to the com- mencement of the meeting as required by said law and with mem- bers of the public present in attendance; I further certify that the individuals named therein were on the date thereof duly and lawfully possessed of their respective city offices as indicated therein, that no council vacancy existed except as may be stated in said proceedings, and that no controversy or litigation is pending, prayed or threatened involving the incorporation, organization, existence or boundaries of the City or the right of the individuals named therein as officers to their respective positions. WITNESS my hand and the seal of said Municipality hereto affixed this 31st day of jifly , 1984. SEAL Cit Clerk, Iowa City, Iowa AHLER6. COONEY. DOR WEILER. HAYNIE 6 SMITH. LAWYERS, DEB MOINES. IOWA 070 A 7- 7- 8y 8-f:oean.. (This Notice to be posted) NOTICE AND CALL OF PUBLIC MEETING Governmental Body: The City Council of Iowa City, Iowa. Date of Meeting: July 31, 1984 Time of Meeting: 7;30 P.M. Place of Meeting: Council Chambers, Civic Center, 410 E., Washington Street, Iowa City, Iowa. PUBLIC NOTICE IS HEREBY GIVEN that the above mentioned governmental body will meet at the date,, time and place above set out. The tentative agenda for said meeting is as follows: Re¢olution a provin cont acts d b nd. `Tanglewood-l�entura a2d St. Me s�'rivep Such additional matters as are set forth on the addi- tional 17 page(s) attached hereto. (number) This notice is given at the direction of the Mayor pursuant to Chapter 28A, Code of Iowa, and the local rules of said governmental body. City Clerk, Iowa City, Iowa AHLERS. COONEY. DORWCILER. HAYNIE O SMITH. LAWYERS. DES MOINES. IOWA /z/ 7o \^ RESOLUTION NO. 84-219 RESOLUTION AWARDING CONTRACT AND AUTHORIZING MAYOR TO SIGN AND CITY CLERK TO ATTEST CONTRACT FOR THE CONSTRUCTION OF THE FY85 BRIDGE PAINTING PROGRAM WHEREAS, Da_irv13p51� ement Co.. Inc. of Cottage Grave Wisconsin has submitted the best bid of 23.626.38 for the construction of the above-named project. IOWA: NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF IOWA CITY, 1. That the contract for the construction of the above-named project.is hereby awarded to lair land Im rovement Co., Inc. of Cottage Grove, Wisconsin subject to the condition tat awar ee secure adequate performance band, insurance certificates, and contract compliance program statements. I 2. That the Mayor is hereby authorized to sign and the City Clerk to attest the contract for the construction of the above-named project, subject to the condition that awardee secure adequate performance bond, insurance certificates, and contract compliance program statements. It was moved by Strait and seconded by AnbriscO that the resolution as reg e a opted, an upon roll call there were: AYES: NAYS: ABSENT: X Ambrisco X Baker X Dickson X Erdahl X _ McDonald X Strait R Zuber Passed and approved this 31st day of .July , 1984 . MAYOR ATTEST: _7%ld,._�,� yi!, . ,._CTY CLERK kgeolved A Approved by the Lead Do rt 'I zs 8r /417/ AUVERTISEMENT FOR BIDS FY85 BRIDGE PAINTING PROGRAM Sealed proposals will be received by the City Clerk of the City, of Iowa City, Iowa, until 10:00 A.M. on the 24th day of July, 1984, and opened immediately thereafter by the City Engineer. Proposals will be acted upon by the City Council at a meeting to be held in the Council Chambers at 7:30 P.M. on July 31, 1984, or at such later time and place as may then be fixed. The work will involve the following: Cleaning and painting of steel on three (3) bridges (Woolf Avenue bridge over Highway 6/218 and Cedar Rapids & Iowa City Railroad; Melrose Avenue bridge over C.R.I.&P. Railroad; and Johnson Street bridge over Ralston Creek) and all work incidental thereof. All work is to be done in strict compliance with the plans and specifi- cations prepared by Dennis S. Gannon, P.E., Assistant City Engineer of Iowa City, Iowa, which have heretofore -been approved by the City Council, and are on file, for public examination in the Office of the City Clerk. Whenever reference is made to the "Standard Specifications", it shall be the "Standard Specifications for Highway and Bridge Construction", Series of 1977, Iowa Department of Transportation, Ames, Iowa. Each proposal shall be made on a form furnished by the City and must be accompanied by a bid bond or cashier's or certified check drawn on an Iowa bank and filed in a sealed envelope separate from the one containing the proposal, and in the amount of 10% of bid made payable to the Treasurer of the City of Iowa City, Iowa, and may be cashed by the Treasurer of the City of Iowa City, Iowa, as liquidated damages in the event the successful bidder fails to enter into a contract within ten (10) days and post bond satisfac- tory to the City insuring the faithful performance of the contract. Checks of the lowest two or more bidders may be retained for a period of not to exceed fifteen (15) days until a contract is awarded or rejection is made. Other checks will be returned after the canvass and tabulation of bids is completed and reported to the City Council. 1 �7/ Page 2 Payment to the Contractor will be made as specified in the "Standard Specifications", Article 1109.06. The successful bidder will be required to furnish a bond in an amount equal to one hundred percent (100%) of the contract price, said bond to be issued by a responsible surety approved by the City Council and shall guarantee the prompt payment of all materials and labor and protect and save harmless the City from claims and damages of any kind caused by the operation of the contract, and shall also guarantee the maintenance of the improvement for a period of 1 year from and after its completion and acceptance by the City. The following limitations shall apply to this project: j Working Days: 30 Completion Date: September 24, 1984 Liquidated Damages: $100.00 per day The plans, specifications, and proposed contract documents may be examined at the Office of Francis K. Farmer, P.E., by bona fide bidders. Return all plans and specifications to the City Engineer's office in good conditiop within fifteen (15) days after the opening of the bids. Prospective bidders are advised that the City of Iowa City desires to employ minority contractors and subcontractors on City projects. The Contractor awarded the contract shall submit a list of proposed s,ubcontractors along with quantities, Unit prices and amounts before starting construction. If no minority business enterprises (MBE) are utilized, the Contractor shall furnish documentation of all efforts to recruit MBE's. A listing of minority contractors is available and can be obtained form the Civil Rights Specialist, at the Iowa City Civic Center, by calling 3191356-5022. The City reserves the right to reject any or all proposals and to waive technicalities and irregularities. Published upon order of the City Council of Iowa City, -Iowa. MARIAN KARR, CITY CLERK -71 I_J RESOLUTION NO. 84-220 RESOLUTION AWARDING CONTRACT AND AUTHORIZING MAYOR TO SIGN AND CITY CLERK TO ATTEST CONTRACT FOR THE CONSTRUCTION OF THE WHEREAS, Iowa Culvert Builders, Inc. of Sigourney, Iowa has submitted the best bid of S 160,167.72 for the construction o above-named project. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF IOWA CITY, IOWA: 1. That the contract for the construction of the above-named project is hereby awarded to Iowa CulvertBuilders, Inc. of Si ourne Iowa. subject to the condition that awar ee secure adequate performance bond, insurance certificates, and contract compliance program statements. 2. That the Mayor is hereby authorized to sign and the City Clerk to attest the contract for the construction of the above-named project, subject to the condition that awardee secure adequate performance bond, insurance certificates, and contract compliance program statements. It was moved by Zuber and seconded by Dickson that the resolution as read be adopted, an upon roll call there were: AYES: NAYS: ABSENT: X Ambrisco X Baker X Dickson X Erdahl X McDonald X Strait X Zuber Passed and approved this 31st day of July 1984 . v 1 MA OR ATTEST: TTY CL RFK RmIved & Approved By The Legal Department x� 0 —.IERTISEMENT FOR BIDS REINFORCE, CONCRETE BOx CULVERT AT FIRST AVENUE AND NORTHEAST BRANCH RALSTON CREEK. Sealed proposals will be received by the City Clerk of the City of Iowa City, Iowa, until 10:00 A.M. on the 24th day of July, 1984, and opened immediately thereafter by the City Engineer. Proposals will be acted upon by the City Council at a meeting to be held in the Council Chambers at 7:30 P.M. on July 31, 1984, or at such later time and place as may then be fixed. The work will involve the following: Construction of a twin 12' by 12' by 85' reinforced concrete box culvert, excavation, backfill, channel relocation, erosion control and all other associated miscellaneous work. All work is to be done in strict compliance with the plans and specifi- cations prepared by MRS Consultants, Inc, and N.W., Inc. of Iowa City, Iowa, .Nwhich have heretofore been approved by the City Council, and are on file for public examination in the Office of the City Clerk. Whenever reference is made to the "Standard Specifications", it shall be the "Standard Specifications for Highway and Bridge Construction", Series of 1977, Iowa Department of Transportation, Anes, Iowa. Each proposal shall be made on a form furnished by the City and must be accompanied by a bid bond or cashier's or certified check drawn on an Iowa bank and filed in a sealed envelope separate from the one containing the proposal, and in the amount of 5% of bid made payable to the Treasurer of the City of Iowa City, Iowa, and may be cashed by the Treasurer of the City of Iowa City, Iowa, as liquidated damages in the event the successful bidder fails to enter into a contract within ten (10) days and post bond satisfac- tory to the City insuring the faithful Performance of the contract. Checks of the lowest two or more bidders may be retained for a period of not to exceed fifteen (15) days until a contract is awarded or rejection is made. Other checks will be returned after the canvass and tabulation of bids is completed and reported to the City Council. T %.2— Page 2 Payment to the Contractor will be made as specified in the "Standard Specifications", Article 1109.06. The successful bidder will be required to furnish a bond in an amount equal to one hundred percent (100%) of the contract price, said bond to be issued by a responsible surety approved by the City Council and shall guarantee the prompt payment of all materials and labor and protect and save harmless the City from claims and damages of any kind caused by the operation of the contract, and shall also guarantee the maintenance of the improvement for a period of 5 years from and after its completion and acceptance by the City. The following limitations shall apply to this project: Working Days: 30 Completion Date: September 17, 1984 Liquidated Damages: $200.00 per day The plans, specifications, and E proposed contract documents may be examined at the Office of Francis K. j Farmer, P.E., by bona fide bidders. If Return all plans and specifications to the City Engineer's office in good condition within fifteen (15) days after the opening of the bids. Prospective bidders are advised that the City of Iowa City desires to employ minority contractors and subcontractors on City projects. The Contractor awarded the contract shall submit a list of proposed subcontractors along with quantities, unit prices and amounts before starting construction. If no minority business enterprises (MBE) are utilized, the Contractor shall furnish documentation of all efforts to recruit MBE's. A listing of minority contractors is available and can be obtained form the Civil Rights Specialist, at the Iowa City Civic Center, by calling 319/356- 5022. The City reserves the right to reject any or all proposals and to waive technicalities and irregularities. Published upon order of the City Council of Iowa City, Iowa. MARIAN KARR, CITY CLERK 1117.2- DEFEATED RESOLUTION N0. -------- RESOLUTION PROHIBITING PARKING AT ALL TIMES ON THE EAST SIDE OF SOUTH JOHNSON STREET FROM BURLINGTON STREET TO RAILROAD RIGHT-OF-WAY WHEREAS, the ordinances of the City of Iowa City, Iowa, allow the City Council to prohibit parking by resolution on its streets, and WHEREAS, the City Council deems it in the public interest to prohibit parking at all times on the east side of South Johnson Street between Burlington Street and the railroad right-of-way in Iowa City, Iowa. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF IOWA CITY, IOWA that: Parking is hereby prohibited at all times on the east side of South Johnson Street between Burlington Street and the railroad right-of- way. The City Traffic Engineer is hereby authorized and directed to cause appropriate signs to be posted to effectuate the provisions of this resolution. It was moved by Baker and seconded by Ambrisco the Resolution be adopted, an upon roTT call there were: AYES: NAYS: ABSENT: X Ambrisco x_ Baker X Dickson X Erdahl McDonald T- Strait ---T- Zuber Passed and approved this day of 1984. MAYOR ATTEST: CITY CLERK Recelved & Approved' By a Leo DepeThmro /'f 73 Iy RESOLUTION NO. 1 \RESOLUTION PROHIBITING PARKING AT ALL TIMES ON SOUTH JO NSON STREET FROM BURLINGTON STREET TO BOWERY STREET WHEREAS, the ordinances of the City of Iowa City, Iowa, allow the City Council to prohibit parking by resolution on its streets, and WHEREAS, the City Council deems it in the pub17i interest to prohibit parking at ali\\times on the east side of South Johnson Street between East Burlington Stredt and Bowery Street in Iowa 59y, Iowa. NOW, THEREFORE, BEE T RESOLVED BY THE C TY COUNCIL OF IOWA CITY, IOWA that: Parking is hereby prohibited at/al" 1 times on the east side of South Johnson Street between East Burrl'ington Street and Bowery Street. The City Traffic Engineer i hereby authorized and directed to cause appropriate signs to be pose to effectuate the provisions of this resolution. It was moved by nd seconded by the Resolution be adopted, a d upon roll c 11 there were: AYES: NAYS: ABSENT: Ambrisco Baker Dickson Erdahl McDonald Strait Zuber Passed and approved t is day of \ , 1984. ATTEST: M BrA41ved d Approved Ly T5o lyalLcyal Depaftwl 7¢ 173 1R City of Iowa Cvty MEMORANDUM Date: January 18, 1984 To: Neal Berlin and City Council From: Charles Schmadeke, Director of Public Works James Brachtel, Traffic Engineer Re: Removal of Calendar Parking on Johnson Street In the fall of 1983, the City received a request to remove CALENDAR PARKING on Johnson Street between Burlington Street and Bowery Street. The request was a suggestion to reduce the difficulty of driving on Johnson Street during the times that parking is permitted on both sides (5:00 p.m. to B:00 pm. of the following day). The Traffic Engineering Division conducted a postcard survey of the affected residents to determine their opinion of the proposed change. Letters and postcards were sent to 205 residential units. Of these, 132 postcards were returned. Fifty-eight percent of the returned postcards favored changing from CALENDAR PARKING to a permanent NO PARKING ANYTIME on one side of Johnson Street. Twenty-five percent opposed the change and 18% had no opinion. Of the responding residents, 41% preferred the NO PARKING ANYTIME prohibition be placed on the east side; 45% preferred the west side and 8% expressed no opinion. There are advantages and disadvantages to all parking schemes. The principal disadvantage and advantages of the two schemes being considered for Johnson Street are: CALENDAR PARKING Advantages: - Cars are moved from alternating sides of the street which allows City crews to provide necessary street maintenance in an orderly fashion without undue confusion for abutting residents. The two principal functions affected are streetsweeping and snow removal. - Long-term street storage is eliminated. The City currently permits 48 hour street storage on unregulated streets. However, this is difficult and costly to enforce. Disadvantages: - Cars are permitted to park on both sides of the street from 5:00 p.m. to 8:00 a.m. the following day. On a 31 foot wide street this results in driving lanes which are nominally eight feet wide. - Residents are required to move their vehicles every day Monday through Saturday. IY73 3 NO PARKING ANYTIME on one side Advantages: - On a 31 foot wide street the resulting driving lanes are 11 feet wide. - Residents are not required to move their vehicles on a daily basis. Disadvantages - Street maintenance becomes very difficult on the side of the street where parking is permitted. Confusing and lengthy advanced notice must be given to affected parkers before the maintenance activity occurs. - There is a tendency for long-term on -street storage to occur which again is difficult and costly to enforce. Public Works recognizes the difficulty with eight foot driving lanes. However, this driving lane dimension is a reasonable compromise on residential streets for residential traffic. This assumes that the principal users of these blocks of Johnson Street will be the adjacent property owners and not through traffic. Public Works recommends CALENDAR PARKING be kept in place as this will permit better and more efficient street maintenance. This is particularly true during the snow season. City crews can provide a much better snow removal effort during the snow season when calendar parking regulations are in place and snow may be plowed to the curb on alternate days without the need for advanced notice to remove parked cars. bdw/sp /y 73 City of Iowa C" y MEMORANDUM Date: July 23, 1984 To: City Council From: City Manager Re: Easement 64-1a Some weeks ago the City Council approved an easement for the hotel through parcel 64-1a to provide vehicular delivery access to the hotel. At that time we provided a 25 foot air right easement over the area. Recently, the parking consultant for the City concluded that a 16 foot air right easement rather than a 25 foot air right easement would provide sufficient access for semi -trailers to delivery to the hotel and would facilitate better utiliza- tion of parcel 64-1a for mixed use, including parking. As this change is in the best interest of both the hotel and the City, the enclosed resolution will adjust the air right space from 25 to 16 feet. The developer has been notified of this change. /sp 1417.3 Iowa City, Iowa, July 31, 1984 The City Council of Iowa City, Iowa, met on the above date in the Council Chambers, Civic Center, 410 East Washington Street, in Iowa City, Iowa at 7:30 o'clock P.M., in open regular session, pursuant to law and the rules of said Council. The meeting was called to order by John McDonald, Mayor, presiding, and on roll call the following Council Members were present: Ambrisco Baker Dickson McDonald Strait Zuher Absent: Erdahl -1- AHLC95. COONcy. DOBwtRtn. HwwiL SNITn n ALLSCt. LAWYCn S. DES MoiNES. 10*A Matters were discussed relative to final authorization and issuance of $900,000 in aggregate principal amount of the City's Commercial Development Revenue Bonds (Jackson Square Associates Project) Series 1984. Following a report on the proposed Project by representatives of said Company and a discussion of the Bond issue, Council Member Zuber proposed the following Resolution and moved its adoption. Council Member Strait seconded the motion to adopt. Ater due consideration of said motion, the roll was called and the Resolution adopted by the following vote: AYES: McDonald, Ambrisco Raker Dickson Strait Zuber NAYS: None The Resolution was thereupon signed by the Mayor and in evidence of his approval, was attested by the City Clerk, and was declared to be effective. The Resolution is as follows: -2- A NICKS. COONC.. Do nwCI,". N...0 C. SNI•N M AtLDFC L.wvCO S. DIS MOMC.S. 10w RESOLUTION NO. 84-221 RESOLUTION AUTHORIZING THE ISSUANCE OF $900,000 IN AGGREGATE PRINCIPAL AMOUNT OF THE CITY OF IOWA CITY, IOWA, COMMERCIAL DEVELOPMENT REVENUE. BONDS (JACKSON SQUARE ASSOCIATES PROJECT) SERIES 1984, WITH THE PROCEEDS FROM THE SALE OF THE BONDS TO BE LOANED TO JACKSON SQUARE ASSOCIATES, AN IOWA GENERAL PARTNERSHIP, FOR THE PURPOSE OF DEFRAYING ALL OR A PORTION OF THE COST OF ACQUIRING, IMPROVING AND EQUIPPING LAND, BUILDINGS AND IMPROVEMENTS SUITABLE FOR USE AS A 27 UNIT HOUSING COMPLEX FOR THE ELDERLY; THE EXECUTION AND DELIVERY OF AN INDENTURE OF TRUST TO SECURE SAID BONDS; THE EXECUTION AND DELIVERY OF A REAL ESTATE MORTGAGE; THE EXECUTION AND DELIVERY OF A DEED RESTRICTIONS; THE EXECUTION AND DELIVERY OF A LOAN AGREEMENT BETWEEN THE CITY AND JACKSON SQUARE ASSOCIATES: THE ASSIGNMENT BY THE CITY TO THE TRUSTEE OF THE RIGHTS AND INTEREST OF THE CITY IN AND TO SAID REAL ESTATE MORTGAGE AND SAID LOAN AGREEMENT; THE SALE OF SAID BONDS; APPOINTMENT OF A TRUSTEE; AND RELATED MATTERS. WHEREAS, the City of Iowa City, Iowa, a municipal corporation duly organized and existing under and by virtue of the Constitution and laws of the State of Iowa (the "City") proposes to issue its Commercial Development Revenue Bonds (Jackson Square Associates Project) Series 1984, in the aggregate principal amount of $900,000 (the "Bonds"), with the proceeds from the sale of the Bonds to be loaned by the City to Jackson Square Associates, an Iowa general partnership (the "Company"), for the purpose of defraying all or a portion of the cost of acquiring, improving and equipping land, buildings and improvements suitable for use as a 27 unit housing complex for the elderly (the "Project"), the Project to be owned by Company, with the financing of the Project to be undertaken in accordance with the provisions of Chapter 419 of the Code of Iowa (the "Act"); and WHEREAS, the City Council of the City has determined the Project is located within the area of and is consistent with and authorized by the Neighborhood Development Plan (the "Urban Renewal Plan") and there is a public need in the City and the surrounding environs for implementation of said Urban Renewal Plan, which will promote urban renewal, rehabilitation and redevelopment of the City, will eliminate blighted areas within the City and will promote employment opportunities for residents of the City and the surrounding area; and -3- AwLC"S, COONEY. DOnw[M1Cq H.vviL SMilu 8 ALL"Er L,wvCns DES MOi"C5, IOwI 1117E WHEREAS, the Bonds are to be issued pursuant to provisions of an Indenture of Trust (the "Indenture") dated as of July 1, 1984, between the City and First National Bank, Iowa City, Iowa, as Trustee thereunder (the "Trustee") and; WHEREAS, the proceeds from the sale of the Bonds are to be loaned by the City to the Company pursuant to provisions of a Loan Agreement (the "Loan Agreement") dated as of July 1, 1984, between the City and the Company; and WHEREAS, as additional security for payment of the Bonds, the Company has agreed to execute a Real Estate Mortgage (the "Mortgage") dated as of July 1, 1984, between the Company, as the mortgagor, and the City, as the mortgagee, thereunder, pursuant to which the Company grants and conveys to the City a mortgage lien in the real estate described in the Mortgage, subject to Permitted Encumbrances; and WHEREAS, the rights and interest of the City in and to the Loan Agreement and the Mortgage will be assigned by the City to the Trustee pursuant to the Indenture; and WHEREAS, the loan is made subject to certain deed restrictions under a Deed Restrictions dated as of July 1, 1984 (the "Deed Restrictions"), by and among the City, the Company and the Trustee; and WHEREAS, as additional security for payment of the Bonds, James A. and Loretta C. Clark have agreed to execute a Guaranty Agreement dated as of July 1, 1984 (the "Guaranty"), between Guarantors and Trustee, pursuant to which Guarantors guarantee the full and prompt payment of the principal of, premium, if any, and interest on the Bonds, as the same shall become due; and WHEREAS, pursuant to published notice of intention this City Council has conducted a public hearing, as required by Section 419.9 of the Act and Section 103(k) of the Internal Revenue Code of 1954, as amended (the "Code"), and this City Council has deemed it to be in the best interests of the City that the Bonds be issued as proposed; and WHEREAS, the City has arranged for the sale of the Bonds to First National Bank, Iowa City, Iowa (the "Original Purchaser"); and WHEREAS, there has been presented to this meeting the following documents, which the City proposes to enter into: 1. The form of Loan Agreement between the City and Company; and -4- A..,rns, COO"[Y. DOn WCILnn. HA,"Ir. Smae4 n ALLnr[. LAWan6. Ors Idol"r5. low• 1117y 2. The form of Indenture between the City and the Trustee setting forth the terms of the Bonds including (without limitation) the maturity dates, rates of interest and redemption provisions, and the conditions and security for payment of the Bonds; and 3. The form of Bond Purchase Agreement dated July 31, 1984, (the "Bond Purchase Agreement"), by and among the Original Purchaser, the Company and the City relating to the issuance, sale and purchase of the Bonds; and 4. The form of the Mortgage and the Assignment thereof; and 5. The form of an Inducement and Indemnity Letter dated July 31, 1964 (the "Inducement Letter") from the Company and Guarantors to the City and the Original Purchaser; and 6. The form of Deed Restrictions; and 7. The form of the Bonds, as set forth in the Indenture. WHEREAS, it appears that each of the instruments above referred to, which are now before each of the Council Members of the City Council, is in appropriate form and is an appro- priate instrument for the purposes intended; NOW, THEREFORE, Be It Resolved by the City Council of the City of Iowa City, Iowa, as follows: Section 1. That the City defray all or a portion of the cost of acquiring, improving and equipping land, buildings and improvements suitable for use as a 27 unit housing complex for the elderly (the "Project") by issuing the Bonds and loaning the proceeds of the sale of the Bonds to Company, which Project is consistent with and located within the area of the City's Neighborhood Development Plan adopted by the City pursuant to Chapter 403 of the Code of Iowa. Section 2. That in order to defray the cost of the Project, the issuance'of the Bonds in the aggregate principal amount of $900,000, maturing on such dates, in such amounts and bearing rates of interest as set forth in the Indenture, in substantially the form and content set forth in the Indenture now before this meeting, subject to appropriate insertion and revision in order to comply with provisions of the Indenture, be and the same hereby are in all respects authorized, approved and confirmed, and the form and content of the Bonds set forth in the Indenture now before this meeting be and the same hereby are in all respects authorized, approved, ratified and confirmed, and the Mayor and the City Clerk be and they hereby are authorized, empowered and directed to execute, whether by -5- AML["5. CODL[v, DOn w[.IIC B, 11.r NlC. $wrtN "All "f C.. L.w r[."S. D[5 MOiN [5. IO w. �y�y manual or facsimile signatures, impress the official seal of the City (or cause to have printed a facsimile thereof) thereon and deliver for and on behalf of the City the Bonds to the Trustee for authentication and the Trustee is hereby authorized and directed to authenticate the Bonds, and the provisions of the Indenture with respect to the Bonds (including without limitation the maturity dates, rates of interest and redemption provisions) be and the same hereby are authorized, approved and confirmed and are incorporated herein by reference. Section 3. That the City loan to Company the proceeds from the sale of the Bonds pursuant to the Loan Agreement, which provides for repayment by Company of such loan in an amount equal to principal of, premium, if any, and interest on the Bonds when and as due, and the form and content of the Loan Agreement, the provisions of which are incorporated herein by reference, be and the same hereby are in all respects author- ized, approved and confirmed and the Mayor and the City Clerk be and they hereby are authorized, empowered and directed to execute, attest, seal and deliver the Loan Agreement prior to or simultaneously with the issuance of the Bonds for and on behalf of the City, including necessary counterparts in substantially the form and content now before this meeting but with such changes, modifications, additions or deletions therein as shall to them seem necessary, desirable or appro- priate, their execution thereof to constitute conclusive evidence of their approval of any and all changes, modifications, additions or deletions therein from the form and content of the Loan Agreement now before this meeting, and that from and after the execution and delivery of the Loan Agreement, the Mayor and the City Clerk are hereby authorized, empowered and directed to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the Loan Agreement as executed. Section 4. That First National Bank, Iowa City, Iowa, is hereby appointed Trustee under the Indenture and the form and content of the Indenture, the provisions of which are incorporated herein by reference, and the assignment of the City's rights and interest in and to the Loan Agreement (with certain exceptions as stated in the Indenture), be and the same hereby are in all respects authorized, approved and confirmed, and the Mayor and the City Clerk be and they hereby are author- ized, empowered and directed to execute, attest, seal and deliver the Indenture for and on behalf of the City to the Trustee for the security of the Bonds and the interest thereon, including necessary counterparts in substantially the form and content now before this.meeting but with such changes, modifi- cations, additions and deletions therein as shall to them -6- ANLEnS, GOONEY Donwblr.n. MA,,E SYItM n AtLnEr.. LA%YrnS. DES MOINES. low. /y7'� seem necessary, desirable or appropriate, their execution thereof to constitute conclusive evidence of their approval of any and all changes, modifications, additions or deletions therein from the form and content of the Indenture now before this meeting, and that from and after the execution and delivery of the Indenture, the Mayor and the City Clerk are hereby authorized, empowered, and directed to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the Indenture as executed. Section 5. That the form and content of theMothea a con- stituting a conveyance and grant by the Company t ity Of a mortgage lien in and to the property subject to the Mortgage and described therein, and the assignment to the Trusteeof thtoe City's rights and interest in and to the Mortgage, pursuant the Indenture. and andthe confirmed, andare thenall Mayorrandethe City authorized, approved Clerk be and they hereby are authorized, empowered and directed to execute, attest, seal and deliver the Mortgage anedtthere- Assignment for and on behalf of the City, as mortgage under, including necessary counterparts, in substantially the form and content now before this meeting but with such changes, additions, modifications and deletions therein as shall to them seem necessary, desirable or appropriate, their execution thereof to constitute conclusive evidence of their approval of any and all changes, modifications, additions or deletions therein from the form and content of the Mortgage and Assign- ment now before this meeting and that from and after the execution and delivery of the Mortgage and Assignment, the Mayor and City Clerk are hereby authorized, empowered and directed td do all such acts and things and ato execute complywall the ddocuments as may be necessary to carry out provisions of the Mortgage and Assignment as executed, and the' provisions of the Mortgage and Assignment are hereby incorporated herein by reference. Section 6. That the the Projectorm annbenanditheesamedhereby are Restrictions relating roved and confirmed, and the in all respects authorized, app Mayor and the City Clerk be and they hereby are authorized, empowered and directed to execute, attest, seal and deliver the Deed Restrictions for and on behalf of the City, including necessary counterparts, insubstantially the th such changesfo forment now before this meeting but fications and deletions thereinshall to otheir ethem seem ee thereof to necessary, desirable or appropriate, constitute conclusive evidence of their approval of any and all changes, modifications, additions or deletions therein from the form and content of the Deed Restrictions now before this meeting and that from and after the execution and delivery of the Deed Restrictions, the Mayor and City Clerk are hereby -7- A..rrns. COOVC.. DOnwr.Lr nn AILOrr, r.w.rns. Drs 1e0111r5. iow• / I / authorized, empowered and directed to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the Deed Restrictions as executed, and the provisions of the Deed Restrictions are hereby incorporated herein by reference. Section 7. That the sale of the Bonds to the Original Purchaser at the purchase price of 1008 of the par value thereof, subject to the terms and conditions set forth in the Bond Purchase Agreement, is hereby authorized, approved and confirmed, and that the form and content of the Bond Purchase Agreement be and the same hereby are, authorized, approved and confirmed and the Mayor be, and he hereby is, authorized, empowered and directed to execute and deliver to the Original Purchaser the Bond Purchase Agreement for and on behalf of the City, including necessary counterparts in the form and content now before this meeting, and that from and after the execution and delivery of the Bond Purchase Agreement, the Mayor and the City Clerk are hereby authorized, empowered and directed to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the Bond Purchase Agreement. Section 8. That the form and content of the Inducement Letter be and the same hereby are authorized, approved and confirmed and the Mayor be, and he hereby is, authorized, empowered and directed to accept the Inducement Letter for and on behalf of the City by execution thereof, including necessary counterparts in the form and content now before this meeting, and that from and after the execution and delivery of the Inducement Letter, the Mayor and the City Clerk are hereby authorized, empowered and directed to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the Inducement Letter as executed. Section 9. That the Mayor and the City Clerk of the City be and they hereby are authorized to execute and deliver for and on behalf of the City any and all additional certificates, documents, opinions or other papers and perform all other acts (including without limitation the filing of any financing statements or any other documents to create and maintain a security interest on the properties and revenues pledged or assigned under the Indenture, the Loan Agreement and the Mortgage and the execution of all closing documents as may be required by Ahlers, Cooney, Dorweiler, Haynie, Smith & Allbee, as Bond Counsel, and the acceptance of any documentation evidencing indemnification of the City by Company in connection with the transactions contemplated hereby) as they may deem necessary or appropriate in order to implement and carry out the intent and purposes of this Resolution. go ANLLn S. COON P, Donwru.rn. HANK. SMr.n a At nLr L.w.L.s Drs MOINC s. Iowa /47� Section 10. That the Loan Agreement requires Company in each year to pay amounts as Loan Payments sufficient to pay the principal of, premium, if any, and interest on the Bonds when and as due, and the payment of such amounts by Company to the Trustee pursuant to the Loan Agreement is hereby authorized, approved and confirmed. Section 11. That the Bonds are limited obligations of the City, payable solely out of the Loan Payments required to be paid by Company pursuant to and in accordance with provisions of the Loan Agreement and as provided in the Indenture, and are secured pursuant to and in accordance with provisions of the Mortgage, the Guaranty and the Indenture. The Bonds and interest thereon shall never constitute an indebtedness of the City, within the meaning of any state constitutional provision or statutory limitation, and shall not give rise to a pecuniary liability of the City or a charge against its general credit or taxing powers. Section 12. That the provisions of this Resolution are hereby to be separable and if any section, phrase or provision shall for any reason be declared to be invalid, such declaration shall not affect the validity of the remainder of the sections, phrases or provisions. Section 13. All Resolutions and orders or parts thereof, in conflict herewith are, to the extent of such conflict, hereby repealed and this Resolution shall be in full force and effect immediately upon its adoption. Adopted and approved this 31st day of July, 1984. City of Iowa City, Iowan (Seal) — ohn McDonald, Mayor Attest: MaYian K. Karr, City Clerk -9- Awl[n5. COON". DOnWrtLE". nA.H IV 51,1164 n Ari ncC. I. A w.rns ors MOinr S. IOWA /µ7f CLERK'S CERTIFICATE I, Marian K. Karr, being first duly sworn do hereby depose and certify that I am the duly appointed, qualified, and acting City Clerk of the City of Iowa City, in the County of Johnson, State of Iowa; that as such I have in my possession, or have access to, the complete corporate records of said city and of its Council and officers; that I have carefully compared the transcript hereto attached with the aforesaid corporate records; that said transcript hereto attached is a true, correct and complete copy of all the corporate records showing the action taken by the City Council of said City at a meeting open to the public on July 31, 1984, for the purpose of considering a Resolution authorizing the issuance of $900,000 aggregate principal amount of Commercial Development Revenue Bonds (Jackson Square Associates Project) Series 1984, of the City of Iowa City, Iowa, the execution and delivery of an Indenture of Trust to secure said Bonds, the execution and delivery of a Real Estate Mortgage, the execution and delivery of a Deed Restrictions; the execution and delivery of a Loan Agreement between the City and Jackson Square Associates, the Assignment by the City of the rights and interest of the City in and to said Real Estate Mortgage and said Loan Agreement, the sale of said Bonds, appointment of a Trustee and related matters; that said proceedings remain in full force and effect and have not been amended or rescinded in any way; that said meeting and all action thereat was duly and publicly held, with members of the public in attendance, in accordance with a notice of meeting and tentative agenda, a copy of which was timely served on each member of the Council and posted on a bulletin board or other prominent place easily accessible to the public and clearly designated for that purpose at the principal office of the Council (a copy of the face sheet of said agenda being attached hereto) pursuant to the local rules of the Council and the provisions of Chapter 28A, Iowa Code, and upon reasonable advance notice to the public and media at least twenty-four hours prior to the commencement of the meeting as required by said law. Witness my hand and the Corporate Seal of said City hereto affixed this 1st day of July, 1984. (SEAL) Marian K. Karr, City Clerk State of Iowa ) SS.. County of Johnson ) Subscribed and sworn to before me this day, the date last above written. Notaiy P blic in -and for the (SEAL) ote State of Iowa -10- Ant Ins. Coovr.. Don writ r.n. Hwrwr. 5—In A A,I n I I I..w.rn5 Drs Mo. rs now. �,// /H Iy� / / I (This Notice to be Posted) NOTICE AND CALL OF COUNCIL MEETING Governmental Body: Date of Meeting: The City Cotincil Iowaf Iowa City, July 31, 1984 Pard,a7 a m fk+>�a0 B-l-�BY 8: aa4A Time of Meeting: 7:30 P.M.' Council Chambers place of Meeting: Civic Center ton Street 410 East Washing Iowa City, Iowa iY GIVEN ed PUBLIC NOTICE 15 "Emeet at thetdate, time hat the oand mplace nabove governmental body is as follows: set out. The tentative agenda for said meeting 1. Resolution Authorizing the Issuance of $900,000 in Aggregate Principal Amount of the City of Iowa square City,Associates Commercial Development Revenue Bonds (Jackson from he Project) Series 1984. With the Proceedssoc atese anlIowa the Bonds to be Loaned tofJackson Purpose of Defraying All or a General Partnership, Im roving and Equipping Land, Portion of the Cost of Acquiring, P Buildings and Improvements Suitable for Use as a 27 Unit Housing Complex for the Elderly; the Execution andds, the Del ion very an Indenture of Trust to Secure SeidthenExecution and Delivery Delivery Of a Real Estate Mortgag of a Deed Restrictions; theExecution aSquarelAssociatespothe Agreement Between the City n e and Assignment by the City to the Trustee of the Rights and Interest of the City in and to Said Real Estate ointment of a Said Loan o naAgree Agreement; the Matters. of Said Bonds; App Trus nd ated n t 2. Such additional matters as are beret tforth o (attachcopy of additional � page agenda). This notice ter928An IowahCo direction, asamendedl,eandyort the local pursuant to Chap rules of said governmental bo__dy.__ �..'' —`�% M�a a4r City Clerk of the City of Iowa City, Iowa -11- A14EnS. COoN[r, DOnwc'LER. II.r N¢. SMO" a AU.n[[. L.w1Cnv. DES MOINES, IOw• 1 /# 7� a� RESOLUTION NO. 84-222 RESOLUTION AUTHORIZING EXECUTION OF AN AMENDED ACCESS EASEMENT FOR URBAN RENEWAL PARCEL 64 -Ib (HOTEL SITE). WHEREAS, the City of Iowa City, Iowa, acting as the Local Public Agency, did by Resolution 83-419 authorize execution of an alley access easement for Urban Renewal Parcel 64-1b (Hotel Site), which easement was recorded in the Johnson County Recorder's Office in Book 682, p. 66; and WHEREAS, by Resolution 84-75 the City Council approved an Amended Easement Agreement enlarging the easement area, but said Amended Easement Agreement has not been delivered to the Developer, or recorded; and WHEREAS, it has been found that the airspace reserved in said amended easement is inadequate if the City determines to enlarge the Dubuque Street Parking Ramp onto Urban Renewal Parcel 64-1a; and WHEREAS, reducing the height of the reserved airspace from 25 feet to 16 feet will not adversely affect access to the hotel site. NOW, THEREFORE, BE IT RESOLVED THAT 1. Resolution 84-75 is hereby repealed, and 2. An Amended Access Easement (Attachment 1) be approved by the City Council of the City of Iowa City and that the Mayor of Iowa City, Iowa, is authorized to sign the amended easement agreement and that the City Clerk is authorized to attest said agreement. It was moved by Ambrisco and seconded by Nickson the Resolution be adopted, and upon roll call there were: AYES: NAYS: ABSENT: X Ambrisco X Baker XDickson �— Erdahl X McDonald X Strait X Zuber Passed and approved this 31st day of July , 1984. ATTEST: b$*Q d Avner++ sy 1M legal D "ftwd z6 r IV16 CITY OF IOWA CITY HARRY A. JOHNSON, JR. AMENDED EASEMENT AGREEMENT This agreement is entered into this 31st day of July , 1984, between the City of Iowa City, Iowa, a municipal corporation, eFeinafter referred to as City, and Harry A. Johnson, Jr., doing business as Mid -City Hotel Associates - Iowa City, hereinafter referred to as Hotel Associates. WHEREAS, Hotel Associates has purchased land from the City on Urban Renewal Parcel 64-1b, Iowa City, upon which to construct a hotel facility, and, WHEREAS, Hotel Associates wishes to purchase from the City a perpetual alley easement for access purposes through a portion of Block 64, as more particu- larly defined in this agreement, and, WHEREAS, the parties to this agreement wish to set out the specific terms and conditions of their agreement concerning this easement. NOW, THEREFORE, IT IS AGREED as follows: 1. Easement Area. The easement area shall be a strip of land legally described as follows: Part of Block 64, Original Town, Iowa City, Iowa, as shown on plan recorded in Johnson County Recorder's Office, Book 1, page 116, more particularly described as follows: Commencing as a point of reference at the Northeasterly corner of said Block 64; thence South 89059'20" West 222.00 feet along the Northerly line of said Block 64 to a point (this is an assumed bearing for purposes of this description only); thence South 0007'00" East 144.54 feet along a line parallel with the Easterly line of said Block 64 to the point of beginning; thence North 89053'00" East 50.00 feet to a point; thence South 45007100" East 49.50 feet to a point; thence North 89053'00" East 137.00 feet to the Westerly right-of-way line of Linn Street; thence South 00007'00" East 17.35 feet along said Westerly right-of-way line to a point; thence South 89051'17" West 20.04 feet to a point; thence South 00004'14" West 3.30 feet to a point; thence North 89055'47" West 201.95 feet to a point; thence North 00007'00" West 55.00 feet to the point of beginning. 0 Page 2 2. Nature and Extent of Easement. Hotel Associates and its assigns are herebygranted a permanent nonexclusive easement for ingress and egress purposes across the surface of the easement area. City expressly reserves all rights to the airspace beginning sixteen (16) feet above the surface of the easement area. This easement is to provide for service access to the hotel facility. The easement area also is intended to provide for access to other building sites located in Block 64 and the City reserves the right to grant to other owner of property in Block 64 access to the alley easement. 3. Dedication as Public Alley. The City also reserved the right and intends to dedicate all or part of the easement area as a public alley subject to all of the rules and regulations of the City of Iowa City govern- ing such alleys. 4. Pavement and Maintenance. The City agrees to pave the alley portion of the easement area within a reasonable time after completion of construe tion of the hotel facility. Further, the City agrees to maintain the alley at the same level of maintenance as is provided for other public alleys in downtown Iowa City. 5. EasementPrice. Promptly upon execution of this agreement, Hotel Associates agrees to pay to the City the sum of $18,350.40. 6. Future Condemnation. While the City has granted to Hotel Associates the easement rights provided in this agreement on a perpetual basis, the City does reserve the right to institute condemnation proceedings if necessary in the future to retake possession of the alley. 7. Reversion to City. In the event Hotel Associates defaults upon its obligation to construct a hotel on Urban Renewal Parcel 64-1b, this easement granted by the City to Hotel Associates shall automatically terminate and all rights granted hereunder shall revert to the City. If this happens, the City agrees to refund to Hotel Associates any portion of the purchase price outlined in paragraph 5 above which has not already been used for the purposes of constructing public facilities on or about the alley. In the event the use of Urban Renewal Parcel 64-1b changes from a hotel, the easement granted by the City to Hotel Associates shall automatically termi- nate and all rights granted hereunder shall revert to the City. 8. Successors and Assigns. The provisions stated herein shall be for the benefit of and bind the personal representatives, heirs, successors and assigns of Hotel Associates and the City, and the terms and conditions set forth above shall constitute covenants running with the land. g. Effect on Prior Easement. This Amended Easement Agreement supersedes and revokes the Easement Agreement recorded in Book 682 at page 66 of the Johnson County Recorder's Office. Dated at Iowa City, Iowa, the date first above given 1876 Page 3 CITY OF IOWA CITY, IOWA BY:,//K &is.. hn McDona d, Mayor ATTEST: STATE OF IOWA ) ) SS: JOHNSON COUNTY ) marry o nson,J. On this 31st day of Jul A.D., 1984, before me, a Notary Public du—Ty commissioned and —qualified in and for said County and State, personally appeared John McDonald, Mayor of the City of Iowa City, Iowa, and Marian K. Karr, City Clerk of said City, each being to me personally known to be the identical persons and officers named in the foregoing instrument, who executed the same under and by virtue of the authority vested in them by the City Council of said City, and each for himself/herself acknowledged the execution thereof to be his/her voluntary act and deed for purposes herein expressed. IN TESTIMONY WHEREOF, I have hereunto set my hand and Notarial Seal at Iowa City, Iowa, the day and year last above written. 4.4 Notary Public in and tO the State of Iowa STATE OF MINNESOTA ) SS: HENNEPIN COUNTY ) On this S"ay of 1984, before me, the undersigned, a Notary Pu c n and for sa State, personally appeared Harry A. Johnson, Jr., to me known to be the ident cal person named in and who executed the foregoing instrument, and acknowledged that he executed the same as his voluntary act and deed. CYNTHIA HENNEK NOTARY WBUC-MINNESOTA Notary blit in and for the State of Minnesota MY COMM.ST RE%P. JUNE 8, 1988 Roeeived A Approved By The LeOel Depertmenl IYX RESOLUTION N0, 84-223 RESOLUTION RESCINDING RESOLUTION 84-141 AND ADOPTING A NEW RESOLUTION ESTABLISHING REGULATIONS FOR OPERATION OF OUTDOOR SERVICE AREAS BY BUSINESSES LICENSED UNDER CHAPTER 123 OF THE CODE OF IOWA. WHEREAS, Resolution 84-141 was previously adopted by the City Council on June 5, 1984 which adopted certain regulations for operation of outdoor service areas and those regulations should be revised to exempt, with certain exceptions, outdoor service areas established prior to May 1, 1984 and certain other changes, and WHEREAS, Chapter 123 of the Code of Iowa provides for the licensing of establishments to sell, dispense or serve for consumption on the premises beer or alcoholic beverages, and WHEREAS, this license may extend to outdoor service areas immediately adjacent to such premises, and WHEREAS, such license to operate an outdoor service area within the corporate limits of Iowa City requires approval by the City Council, and WHEREAS, outdoor service areas established prior to May 1, 1984 shall be exempted, with certain exceptions, from the regulations for operation of outdoor service areas, and WHEREAS, the City Council wishes to establish criteria to serve as a basis for its approval of the operation of outdoor service areas, and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF IOWA CITY, IOWA that: 1. Resolution 84-141 previously enacted on June 5, 1984 is hereby rescinded by action of the Council. 2. The "Regulations for Operation of Outdoor Service Areas by Businesses Licensed under Chapter 123 of the Code of Iowa, attached to and made a part of this resolution, are hereby adopted by the City of Iowa City as minimum criteria for the licensing and operation of an outdoor service area as part of any establishment licensed under Chapter 123 of the Code of Iowa and in which any alcoholic beverage is dispensed, sold or consumed. These regulations shall apply as indicated, the only exceptions being those specifically set forth in the regula- tions. /y71 Page 2 It was moved by Dickson and seconded by Ambrisco the Resolution be adopted, and upon rolT call there were: i AYES: NAYS: ABSENT: X Ambrisco X Baker X Dickson X Erdahl X McDonald X Strait X Zuber Passed and approved this 31st daylof July 1984. ATTEST: /y77 REGULATIONS FOR OPERATION OF OUTDOOR SERVICE AREAS BY BUSINESSES LICENSED UNDER CHAPTER 123 OF THE CODE OF IOUA These regulations shall apply to those outdoor service areas located on PRIVATE PROPERTY adjacent to any business licensed under Chapter 123 of the Code of Iowa and as defined in Chapter 123.3(31). These regulations shall NOT apply to outdoor service areas located on or directly adjacent to the City Plaza as defined in Chapter 9.1-2 of the Code of Iowa City. An outdoor service area shall include any such area where beer or liquor is sold and served, carried, or consumed by the public. It shall be considered as part of the licensed premises, and the same Federal, State, and local laws which apply to the licensed premises shall also apply to the outdoor service area. Any establish- ment operating an outdoor service area as defined above shall be subject to the following: 1. Outdoor service areas must be located on private property and may not encroach on any public right-of-way. Such area must be immediately adjacent to the licensed establishment of which it is a part. 2. Outdoor service areas shall not be located in the front yard of any licensed premises. 3. Outdoor service areas shall be screened on all sides from public view. Screening shall consist of a fence or other suitable barrier of not less than five feet in height nor more than eight feet in height. It shall be of solid construction which will effectively prevent normal access and/or egress from the premises except by way of an emergency fire exit only. Such fire exit shall be required of all outdoor service areas. 4. Seating or other accommodations in an outdoor service area shall not exceed one (1) person per fifteen (15) square feet of floor area accessible to the public. 5. Outdoor service areas shall not be accessible except from the licensed premises which it adjoins. The required fire exit shall be an emergency exit only. 6. Outdoor service areas shall be permitted only in those zones which permit other than residential uses and shall not be permitted to exist within 100 feet of any lot zoned for residential use. 7. Outdoor service areas shall comply with appropriate building, housing, and fire codes and with all other applicable State and City laws. 8. The City shall inspect outdoor service areas at least annually at the same time inspection of the adjacent licensed establishment occurs. The City may, at its discretion, inspect an outdoor service area at any other time. 9. Applications for the approval of outdoor service areas shall include all required information and be submitted with applications for beer and liquor licenses. Such application shall be submitted to the City Clerk at least 15 days prior to the date it is to be considered by the City Council. Outdoor service areas shall be subject to the same annual renewal require- ments as are all beer and liquor licenses. Approval by the City Council of an outdoor service area shall be by letter to the Iowa Beer and Liquor A/17 Control Department and such approval shall be separate and distinct from approval of the beer or liquor license. Said approval shall be subject to the applicant also meeting all requirements of the Iowa Beer and Liquor Control Department with regard to diagram, dram shop coverage, and all other State requirements. 10. Amplified sound equipment in an outdoor service area shall not be permit- ted. Compliance with the City noise ordinance shall be required. Addi- tional advertising or identification signage beyond that permitted for the main licensed establishment shall not be permitted. 11. The City may, after notice to the license or permit holder and a reasonable opportunity for hearing, revoke authorization for the operation of an outdoor service area for any establishment where excessive noise or other problems, as determined by the City, result directly from the operation of the outdoor service area. The revocation procedure shall be initiated by the City Attorney filing an administrative hearing complaint with the City Council. Written notice of hearing, as well as a copy of said complaint, shall be served upon the license or permit holder, at least 10 days prior to the date set for hearing. The hearing shall be before the City Council and shall be governed by the procedures as established by Sections 2-186 and 2-187 of the Code of Ordinances of the City of Iowa City, Iowa. In the event of revocation, the City shall notify the Iowa Beer and Liquor Control Department. The license or permit holder may appeal the revocation to the Iowa Beer and Liquor Control Department Hearing Board, pursuant to Section 123.32, Code of Iowa. Revocation of authorization by the City for opera- tion of an outdoor service area shall not affect the licensing of the principal establishment, unless separate action to suspend or revoke that license/permit is also initiated. 12. Upon submitting an application for an outdoor service area, applicant shall provide the name and address of the owner of each abutting property as well as every other property which is within one hundred (100) feet of appli- cant's premises. The City will then notify these property owners by letter of the nature of the application and the date and time when it will appear on the agenda for approval by the City Council, so that these property owners will have an opportunity to comment on the application if they wish. 13. Approval or disapproval of an application for an outdoor service area shall be at the discretion of the City Council. Such discretion shall be exercised with due regard to public health, safety and welfare considera- tions. 14. Outdoor service areas established prior to May 1, 1984 shall be exempt from these regulations except that regulations 8, 10, 11 and 15 shall be applicable to these outdoor service areas. In the event that there is a change of ownership, the outdoor service area use shall be permitted to continue provided that the usage is continuous. 15. These regulations are established by resolution of the City Council and may be amended from time to time by further resolution of the City Council. /4(77 RESOLUTION NO. 84-224 RESOLUTION AUTHORIZING THE CITY OF IOWA CITY TO AMEND THE LOW INTEREST LOAN AND FORGIVABLE LOAN MANUALS FOR THE HOUSING REHABILITA- TION PROGRAM. WHEREAS, The City of Iowa City is empowered pursuant to Chapter 403, Code of Iowa (1983), to formulate a program for utilizing appropriate private and public resources to eliminate slums and prevent the development or spread of urban blight and to encourage urban rehabilitation, and WHEREAS, the City Council has budgeted Community Development Block Grant funds to engage in Housing Rehabilitation Programs within the designated Neighborhood Improvement Areas, and WHEREAS, part of said program involves Low Interest Loans and Forgivable Loans as a method of financing rehabilitation, and WHEREAS, the City Council has approved and authorized the implementation of the Forgivable Loan Program by Resolution 79-577 and the Low Interest Loan Program by Resolution 82-91, and Therefore, for the purpose of amending the Low Interest and Forgivable Loan Programs, the revised Manuals are as shown in the attached copies and by this reference are made part of this resolution. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY, IOWA: The Procedural Manuals be amended for the Housing Rehabilitation Low Interest and Forgivable Loan Programs in accordance with the attached. It was moved by Strait and seconded by Ambrisco the Resolution be adopted, and upon rol call there were: AYES: NAYS: ABSENT: X Ambrisco X Baker X Dickson X Erdahl X McDonald X Strait X Zuber Passed and approved this 31st day of July , 1984. ATTEST: 1"(W01vnri A Approval Hyl ear IV -7e i TABLE OF CONTENTS Chapter 1. General Chapter 2. Project Financing and Eligible Project Costs Chapter 3. Eligibility Requirements Chapter 4. Cost Includable in Rehabilitation Loans Chapter 5. Limitations on Amount of the Loans Chapter 6. Processing d Submissions for a Rehabilitation Loan Chapter 7. Loan Settlement Chapter 8. Loan Closeout Chapter 9. Terms 4 Conditions Under Which Rehabilitation Loans are Made Chapter 10. Funding of Individual Loans d Management of Accounts Chapter 11. Property Appraisal Chapter 12. Determining Work to be Done with a Rehabilitation Loan Chapter 13. Contracting for Repair Work Chapter 14. Inspection of Repair Work Chapter 15. Applicants Income Chapter 16. Truth in Lending Requirements for Rehabilitation Loans Chapter 17. Grievance Procedure 178 CHAPTER 1. GENERAL 1. LEGAL AUTHORITY. Loans are authorized by City Council utilizing Title I assistance under the Housing and Community Development Act of 1974, as amended. 2. DEFINITIONS. Following are definitions of various terms as used with respect to rehabilitation activities. a. Disabled. For the purposes of this program a person shall be considered disabled when that person received social security disability compensation or disability compensation from other public assistance organizations. b. Elderly. For the purposes of this program it shall mean any one or more of the property's title holders who are sixty two (62) years of age or older. c. Family. The applicant's family includes the applicant and any other person or persons related by blood, marriage or operation of law, who share the same dwelling unit. d. Liquid Assets. Property than can be readily converted into cash without appreciable loss in value such as: savings accounts, and/or stocks and bonds. Equity in the property to be rehabi- litated or a motor vehicle when used for transportation to and from employment or school is not considered when computing liquid assets. e. Owner. Means one or more natural person who hold legal title to a property to be rehabilitated. f. Owner-Occupied_Praperty. A property occupied by that owner that it is used entire y for residential purposes and that contains one dwelling unit. g. Repair Cost. The total cost of repairs or improvements incurred by the owner that are includable in a rehabilitation contract, whether or not financed in part with funds from other sources. h. Rehabilitation Officer. An employee of the City's Department of Planning & Program Development charged with the duties of admini- stering the specific aspects of the rehabilitation program. i. Flood Insurance. Insurance coverage provided to those areas participating in the National Flood Insurance Program to compen- sate for damages which have been incurred, thus reducing the overall impact and financial loss to affected property owners or tenants. Flood insurance coverage must be in an amount at least equal to the development or project cost. J471 CHAPTER 2. PROJECT FINANCING AND ELIGIBLE PROJECT COSTS GENERAL. This chapter covers City Council provisions required for the making of rehabilitation loans, sources of funds to be used for making loans, program reimbursement for advanced fees, and the costs in connection with rehabilitation loans that are eligible projects costs. PROJECT FINANCING. Rehabilitation loans may be made only if there exists a City Council resolution approving the area(s) for rehabilita- tion and a sufficient appropriation of funds to finance said loans. a. Inclusion of Loan in Project Budgets. The amounts for rehabilita- tion loans shall be included in the Community Development Block Grant budget as approved by the City Council. b. Source of Funds for Rehabilitation Loans. Funds to cover an approved rehabilitation loan shall be provided by the City from project funds in accordance with the procedures established herein. ELIGIBLE PROJECT COSTS. The costs described below, related to the processing of rehabilitation cases are eligible project costs in a neighborhood as approved by the City Council. Provision shall be made for these eligible project costs in the budget which is appropriate for the program involved. a.City Overhead and Third -Party Contracts. The following costs incurred in the processing and administering of rehabilitation loans are eligible project costs, to the same extent as costs incurred for other eligible project activities. (1) City cost for staff salaries, wages, and related personnel expenses. (2) Costs incurred under contract or agreement with organi- zations, firms, and individuals for technical and profes- sional services. Contracts and agreements must meet the City's requirements for third -party contracts as to form and methods of solicitation and execution, and, where appropri- ate, shall be concurred in by the City Attorney's office and the City Manager. b. Other Costs Related to Loans. In addition to those costs set forth in paragraph 3.a. above, other costs for goods and services required for the processing of a rehabilitation loan application may be considered eligible project costs. Advancin Funds for Includable Costs. As necessary, the City sha 1 advance protect funds to pay for processing fees, credit reports and charges for title reports and recordation fees. p/ lip CHAPTER 3. ELIGIBILITY REQUIREMENTS 1. GENERAL. This chapter sets forth eligibility requirements as to the property, and the applicant for a rehabilitation loan. A rehabilita- tion loan may be made only with respect to a property located within: the concentrated rehabilitation area(s) as approved by the City Council. The property must need rehabilitation to meet the Rehabili- tation Standards. Neither an individual family nor a structure may participate more than once in this program. 2. REQUIREMENTS APPLICABLE TO EVERY LOAN. In order to be eligible for a rehabilitation loan. A rehabilitation loan cannot be approved if the applicant's record shows a disregard for former obligations, or if there is a clear inability to make the payment that will be required. In addition, depending upon the type of applicant and property involved, the requirements as described below also apply. 3. REQUIREMENTS APPLICABLE TO LOAN FOR RESIDENTIAL PROPERTY. An appli- cant for a rehabilitation loan on residential property must be the owner of the property. 4. REHABILITATION LOAN INVOLVING A LAND SALES CONTRACT. All land sales contracts must Teere financed or retired before an applicant can apply for a Low Interest Loan. CHAPTER 4. COSTS INCLUDABLE IN REHABILITATION LOANS 1. GENERAL. A rehabilitation loan may be made only with respect to a property which needs to be brought up to Rehabilitation Standards, and, after rehabilitation, the property must, at a minimum, conform to the Iowa City Housing Code. Within the limitations on amount of loan as set forth in Chapter 5, a rehabilitation loan may also include amounts for purposes other than meeting the Iowa City Housing Code, as set forth in this section. a. Energy Conservation Measures. A home weatherization loan may provide or specific energy conservation measures such as storm windows, caulking and weather stripping and attic and wall insulation. b. Building Permits and Related Fees. A rehabilitation loan may provide funds to cover the cost of building permits and related fees that are required to carry out the proposed rehabilitation work. However, since the construction contract documents will require the contractor to pay for them, this cost ordinarily would be included in the contract amount. c. Architectural Services. In some unusual cases, an applicant may employ a private architect to prepare plans and drawings for the rehabilitation of his property. In these cases, the City rehabilitation loan may include an amount to cover the cost of the architectural services for the foregoing rehabilitation work to be financed by the City rehabilitation loan. d. Certain Related Costs. A City rehabilitation loan may include funds to cover certain costs and charges related to processing the loan application and to obtaining security for the loan. (1) T e of Related Costs. A City rehabilitation loan may provide- the costo the following: (a) Appraisal fee. (b) Title reports. (c) Fees for recordation and filing. (d) Abstracting. (e) Termite Inspection. (f) Bank servicing charge. (g) Hazard or flood insurance. (h) Architectural fees. (i) Current accruals for: taxes, insurance, and special assessments. (j) Credit reports. (k) Debtor's life insurance. (1) Lead Based Paint Analysis. (2) Advance of Funds. As necessary, the City may advance funds to pay for appraisal fee, title reports, termite inspection, lead based paint analysis and credit reports prior to formal commitment on the rehabilitation loan application. If the loan is approved, the City shall be reimbursed from the proceeds of the loan at the time of loan settlement. If the loan is not approved, and the application withdrawn, the City advances shall be regarded as eligible project costs. lg7f 5 e. General Improvements. A rehabilitation loan which includes funds to cover cost of meeting the requirements of the Rehabilitation Standards may include, in addition, funds for general improvements the owner may wish to perform and can financially afford to do. The maximum dollar amount available for general improvements shall be limited to 40% of the cost of correcting to Rehabilitation Standards, and incipient work. 2. WORK WRITE-UP. The Rehabilitation Officer shall prepare a Deficiency List in accordance with this manual, to document the rehabilitation work to be financed with the rehabilitation loan. 3. ASSURANCE THAT REPAIRS WILL BE COMPLETED. In some instances the repair cos s may excee a dMOUAL UY UM loan. In such cases, the loan will not be made unless the applicant can provide whatever additional amount is needed to assure completion of the work so that the property will meet at least the Housing Code. 4. LOAN CANCELLATION. Should a loan be cancelled after rehabilitation work has begun due to some unforeseen occurrence, the City reserves the right to withdraw their loan unless the property can be brought up to meet the Iowa City Housing Code. If the homeowner changes his/her mind and decides not to do incipient or general repairs, the loan will be reduced to the actual amount of money used rather than the full amount. 5. SUPPLEMENTAL FUNDS. When the applicant is furnishing supplementary funds from sources other than the rehabilitation loan, evidence that actual funds are available shall consist of verification and documen- tation by the staff that the applicant can deposit the required amount in a rehabilitation escrow account. 6. COST NOT INCLUDABLE. A Rehabilitation Loan shall not provide for: a. New construction, substantial reconstruction, expansion of the size of a structure, or the finishing of unfinished spaces such as an attic or basement. b. Materials, fixtures, equipment, or landscaping of a type or quality which exceeds that customarily used in the locality for properties of the same general type as the property to be rehabilitated. c. Appliances not required by the Housing Code. d. Purchase, installation, or repair of furnishings or trade fixtures. / Y 6 CHAPTER 5. LIMITATIONS ON THE AMOUNT OF THE LOAN 1. GENERAL. This section sets forth the eligibility requirements for applica program, City hereinafter referred of owa to to asiayRehabilitation L wInteresttPrincipal Loan Loan. 2. MAXIMUM LOW INTEREST LOAN FOR COMPREHENSIVE REHABILITATION. The maximum loan on residential property shall be the lowest amount determined using the following three criteria, regardless of whether the loan is secured or unsecured. a. The actual, approved construction costs. b. $17,500 per dwelling unit. c. An amount which when added to any outstanding indebtedness related to the property, creates a total outstanding indebtedness which does not exceed: 97 percent of the sum of as -is value of the property and estimated rehabilitation costs up to and including $25,000. 90 percent of the next $10,000 and 80 percent of any balance of the sum that exceeds $35,000. unt of 3 weatherizat onNthatSanlOAN app i�antWmayErelceivleNshallhbe limited byhthe following: For an applicant whose income and liquid assets are in accord with the established formulas, the loan amount shall not exceed the lesser of: to a the property(and conform to dthecost minimumthe repairs The actual energy conse vation necessarymake The amount shall be established in accordance with this manual. b. $2,500 Home Winterization Loan. 4, APPLICANT licant musticompTy with the follidered for' a owing criteria: INterest Loan, the ontaining a. Be the owner occupant of an dwellingl residential unit and locatedtwithure thec not more than one (1) Rehabili- tation Area currently designated for service by the City Council. b. Have maximum adjusted gross income not in excess of the following: 80% of the median income for the Iowa City MSA, as established by the U.S. Department of Housing 8 Urban Development (HUD) based on wthe illnhaverof the currents incomeer ochartld. The availableRuponilitation Officer request. c. Have liquid assets which do not exceed those established for elderly or handicapped persons are shown on the following table which is based on family size and income. s assets (1) Conversion of of Assets: smaximum anapplicant asset level, which level, the excess amount may be reduced by applying them toward the actual cost /y 7Y 7 of the rehabilitation of the property. The excess assets must be escrowed to the City of Iowa City to pay for reha- bilitation. st 5 To REPAY. considbe Y— ere-- d t—e anAadequate aability to repay nt for a Low nthe eloan oif if the loan is made, the following tests can be met: ses shall not a theax xadjusted egr ssreincome for housing of nthexphonexceed household. Housing expenses include: (1) Principal and interest on mortgage. (2) Principal payments on City of Iowa City rehabilitation loan. (3) Taxes. (4) Utilities (5) Hazard or flood insurance premium. (6) Maintenance. rson main b, A minimum of $2.00 cal expenses, tcer 1.,m afteust r available er the fixed monthly food, clothing, g have been deleted from the adjusted expenses for the followin gross income: (1) Housing expense (2) Automobile payments (3)Life insurance loan (4) Notes payable (5) Mortgages or land contract payments for other real estate (6) Monthly installment credit accunts (7) Life and health insurance prem 6, All Low Interest Loan promissory notes shall be signed and duly recorded. �Xcess of all be secured by In addition, all loans naming the City o�fSIowaha in eCity as Mortgagee. mortgage, duly 7, TERMS AND CONDITIONS: FOR A COMPREHENSIVE REHAB LOAN a. Terms and Conditions. Maximum percentLow (6%)nterest interestoan shall be 15 years, and per annum. b. Assianylity• The Low Interest Loan is not assigna Selling the property le and shall be dby uue se of la land or transfer of the property. and the Low Interest tLoan shall beract shallnpayable in fulls at thafer of t time. C. Repayment and Debt Service. (1) Payments shall be made in 180 consecutive monthly install- ments to a local lending institution designated by the City. Each monthly payment shall be for 1/180 of the original loan amount plus interest. 1#71 0 (2) The Low Interest loan may be retired in a period of less than 15 years without penalties. d. Service and Closing Costs. The closing costs for a Low Interest Loan may include the follow- ing: (1) Fees for establishing debt service account. (2) Appraisal fees. (3) Title search and abstracting fee. (4) Recording fees. e. Delinquency and Late Payment Penalty. A late payment charge shall accrue on any amounts delinquent by one month or more. The amount will be specified at the loan closing and if altered, the mortgagor will be notified 60 days prior to the effective date. 8. TERMS AND CONDITIONS: FOR A WEATRERIZATION LOAN a. Terms and Conditions. The Maximum term of the Weatherization Loan shall be 5 years, and it shall bear three percent (3%) interest per annum. b. Assignability. The Weatherization Loan is not assignable and shall be due upon sale or transfer of the property. Selling the property by use of a land contract shall constitute a transfer of property and the Weatherization Loan shall be payable in full at that time. c. Repayment and Debt Service. (1) Payments shall be made in 60 consecutive monthly installments to a local lending institution designated by the City. Each monthly payment shall be for 1/60 of the original loan amount plus interest. (2) The Weatherization Loan may be retired in a period of less than 5 years without penalties. d. Service and Closing Costs. The closing costs for a Weatherization Loan may include the following: 1) Fees for establishing debt service account. 2) Appraisal fees. 3) Title search and abstracting fee. 4) Recording fees. po f to CHAPTER 6. PROCESSING AND SUBMISSIONS FOR A REHABILITATION LOAN 1. REHABILITATIONLOAN ON RESIDENTIAL PROPERTY. The material under this heading is in connection with a renaoillUdLIon loan an residential property that by itself or in conjunction with funds to be provided by the applicant, is sufficient to accomplish the required rehabilita- tion. a. Outline of Rehabilitation Staff Functions. Listed below are the functions to be performed by the Rehabilitation Staff for a rehabilitation loan on a residential property. Regardless of the sources of funds to rehabilitate a property, the Rehabilitation Staff shall assist the property owner by performing functions (1) through (7) listed below: (1) Interview and advise the property owner on the general program objectives for the project area, and explain the application form must be completed in full. (2) Advise the applicant on the availability and benefits of a rehabilitation loan, and on other Federal and private programs and resources for financing rehabilitation. (3) Inspect the property. (4) Prepare a Deficiency List and cost estimate of the rehabili- tation work. (5) Financial interview by Rehabilitation Officer to determine eligibility of the applicant for a rehabilitation loan. (6) Determine what items in the Deficiency List will conform to purposes for which a rehabilitation loan may be used. (7) Advise applicant concerning the conditions under which a rehabilitation loan is made. (8) Obtain following information with respect to the applicant for all residential properties: (a) Verification of Mortgage or Deed of Trust from each 4 holder of lien secured by the property. I (b) Credit report from recognized credit bureau. (c) Verification of employment. (d) Statement of verification of other earnings. (e) Verification of deposits. (9) Make a preliminary evaluation of ability of applicant to repay indicated loan amount. (10) Final consultation with applicant on preliminary Deficiency List and cost estimate to reach agreement on work to be done within applicant's ability to repay. j#70 (11) Prepare final Deficiency List. (12) Request as -is appraisal. (13) Encourage applicant to obtain an acceptable bid. If appli- cant is unable to locate an acceptable contractor, a listing of past participant contractors will be provided. (14) Take "before" pictures. (15) Assign loan number and set up separate file for each case. (16) Deliver case to Director for submission to Housing Commission for conditional commitment. Include the following papers and/or forms: (a) As -is appraisal. (b) Two (2) copies of accepted bid. (c) "Before" pictures. (17) Order abstract update and legal opinion, if applicable. (18) Complete CDR -7630 or CDR -7632. (19) Determine that through the rehabilitation loan the property will conform to the Iowa City Housing Code requirements. If additional financing is required, assist applicant in obtaining the needed funds. (20) Deliver to Director for submission to the Housing Commission for firm commitment (loan approval). Include the following as applicable: (a) CDR -7630 or CDR -7632. (b) Credit Report (original). (c) Verification of Deposit(s) (original). (d) Verification of employment(s) (original). (e) Verification of Income from Other Sources (original). (f) Verification(s) of Mortgage or Deed of Trust (origi- nal). (g) Copy of Deed. (h) Current balance sheet, operating statement and/or most recent copy of tax returns if applicant is self-em- ployed. (i) City Attorney's opinions. pl7 ef 12 (21) When the firm commitment has been received by the Rehabilita- tion Officer, advise applicant and loan servicing agency and set date for the settlement of the loan. (22) Along with 20(a) through (i), include for the retention at closing, the following: (a) Hazard insurance policy on property (Flood Insurance if applicable). (b) Copy of payment schedule breakdown. (c) Copy of agreement on low interest loan. (d) Debtor's life insurance policy, if applicable. (23) Prepare "Request for Loan Account," and hold in file until date certain. (24) On date certain, pick up the applicant, or meet at designated loan closing location and assist in getting all necessary papers signed. (a) Have applicant(s) sign: 1. All copies of construction contract. 2. Proceed order. 3. Promissory note or mortgage. (b) Provide in writing and explain to the borrower the amount of their monthly payments and when the first and all subsequent payments are due. (Truth in Lending Disclosure Statement.) (c) Staff will explain their responsibility in recording all security instruments. (d) Continue abstract and return to the City Attorney for final opinion. (e) Record promissory note or mortgage at Courthouse. (f) Deposit borrower's supplemental funds in escrow account. Borrower will be given receipt with photocopy of check. (25) Assure compliance with equal employment opportunity require- ments. This is a continuing responsibility until the work is completed. j (26) Inspect the rehabilitation work and make progress payments, if provided in construction contract. (27) Make final inspection of completed rehabilitation work. (28) Issue Form CDR -7645, "Certificate of Final Inspection." 1471 13 (29) Take "after" pictures. (30) Obtain from contractor guarantee of work, manufacturers' and suppliers' warranties, and release of liens from the general contractor, subcontractors and suppliers prior to final payment for rehabilitation work. (31) Request final payment to contractor for completed rehabilita- tion work. (32) Place in the file, the following papers and/or forms: (a) Copy of signed promissory note, if applicable. (b) Copy of signed and recorded mortgage, if applicable. (c) Copy of firm commitment signed by authorized City employee. (d) Copy of City's Request for Loan Account, CDR -7636. (e) Copy of all lien waivers. (33) Make follow-up inspection of rehabilitation work. b. Disapproval of Loan Application. Disapproval by the Housing Commission for any loan application constitutes a formal turn down and the Rehab Officer shall advise the applicant accordingly and properly document the file. In the case of special or extenuating circumstances, the Rehabilitation Officer may ask the Housing Commission to re-examine an application along with the documenta- tion necessary to support the request for reconsideration. c. Applicant Cancels Loan Application. In the event the applicant chooses to cancel the loan application prior to Date Certain, the Rehab Officer shall prepare CDR -7630C and obtain the applicant(s) signature(s). If the applicant(s) refuses to sign, the Rehab Officer shall document this refusal by so indicating an the CDR -7630C by a settlement signed by the Rehab Officer. 3. DOCUMENTATION FOR LOAN ON RESIDENTIAL PROPERTY. This material sets forth required documentation in conjunction with an application recommended for approval by the Rehabilitation Officer for a rehabili- tation loan on residential property. The forms and other documentati- on to be included with the application by the Rehabilitation Officer to the Housing Commission are listed in paragraph 1. Instructions concerning some of the documents listed are as follows: a. Application Form. (1) If a rehabilitation loan is to be supplemented with a rehabilitation grant, CDR -7630 will also be completed. (2) Each applicant shall be given a copy of Form CDR -7631. lg7f 14 b. Verification of Employment. Include a completed CDR -7633 "Request for Verification of Employment" for each position held within the last 12 months. Verifications of employment must be completed on all persons whose signatures will appear on the promissory note and mortgage. c. Verification of De osits. COR -7634 must be completed for each C_ and or savings account listed by the applicant(s). d. Verification of Income from Other Sources. Verify all other income received by the applicant(s), such as pensions, social security, ADC, disability benefits, rentals, income from care of foster children, interest on investments, etc. If the principal source of income of the applicant(s) is from his own business, include a currently dated balance sheet and operating statement, or a copy of his most recent tax return. e. Verification Mortgage or Deed of Trust. Complete CDR -7639 for each outstanding mortgage or land sales contract on all properties being purchased by the applicant(s). f. Credit Data. (1) Obtain a written credit report from the Credit Bureau. g. Construction Contract Document. See Chapter 13. Ownership Data. The Rehabilitation Officer shall make a prelimi- nary informal determination of ownership. The citation from the land records or other official records used in the verification shall be retained in the file. This informal verification shall be followed, at the appropriate time, by a formal verification in the form of a written title search and the continuation of the abstract. i. Rehabilitation Loan Involving a Land Sales Contract. All land sales contracts must be refinanced or retired before an applicant can apply for a Low Interest Loan. /97f 15 CHAPTER 7. LOAN SETTLEMENT 1. GENERAL. This chapter sets forth the staff responsibilities with respect to a City of Iowa City rehabilitation loan for: (a) preparing for loan settlement; (b) completing loan settlement; and (c) carrying out post settlement activities. 2. PREPARING FOR LOAN SETTLEMENT. The following actions shall be taken in preparation for lFan settlement: a. Establish a date certain for loan settlement that allows a minimum of 15 days for processing. b. Prepare Form CDR -6236 for a loan encumbrance to be dated the date certain. c. After the loan encumbrance is requested, the Rehabilitation Officer shall promptly take the following actions: (1) Prepare a promissory note (original) in accordance with the form of promissory note approved by the City Attorney's Office. (2) If the loan is to be so secured, prepare a mortgage (origi- nal) in accordance with the form of mortgage approved by the City Attorney's Office for use in this Housing Rehabilitation program. (a) For a loan under $5,000, recheck the ownership informa- tion in the case file. (b) For a loan of $5,000 or more, arrange for updating the title report to the date certain. (3) Prepare a proceed order to be signed by the borrower at settlement. For a secured loan, the executed proceed order shall be retained by the Rehabilitation officer for five working days from the date of signing in order to give the borrower time to exercise his rights of rescission under the Truth in Lending Act. (4) Instruct the borrower to obtain: (a) Original and memorandum copy of insurance policies for fire and extended coverage that provides coverage in accordance with the local coinsurance clause percentage of the value of the property, or an insurance binder or other evidence of insurance. (b) Original or certified copy of receipt for payment of initial or current insurance premium, whichever is applicable. (5) Make arrangements for loan settlement on the date certain. 3. DELAY IN LOAN SETTLEMENT. Loan settlement shall be effected on the established settlement date, provided that the approved Form CDR -6236 and the loan check have been received from the Finance Department. If 17 7a 16 for any reason loan settlement cannot be accomplished on the estab- lished date, it shall be accomplished as soon thereafter as possible. Such later settlement shall, with the written consent of the borrower, be effected as of the originally established settlement date. In the absence of that written consent, the loan check must be returned to the Finance Department. The Rehabilitation Officer shall then set a new settlement date and shall prepare and submit to the Finance Director a new Form CDR -6236 (original and one copy) with the new date certain specified thereon. 4. COMPLETING LOAN SETTLEMENT. The Rehabilitation Officer shall proceed with oan sett emen on the date certain as follows: a. Review the approved Form CDR -6236 with the borrower. If applica- ble, emphasize that the borrower must include not only in his/her first monthly payment, but also in his/her subsequent monthly payments, an amount for accrued escrow expense account items. b. Secure the borrower's signature in block M of each of the three copies of Form CDR -6236, and witness the signature. C. Secure the borrower's signature on the original promissory note. d. If applicable, secure the borrower's signature on the original mortgage or deed of trust. e. If necessary, review with the borrower the copy of Form CDR -7631, which was previously given to him before he signed the application form CDR -7630. f. Obtain opinion of City Attorney (original) concerning the legality and sufficiency of the executed promissory note and, if any, the mortgage or deed of trust. The City Attorney shall participate in any proceedings as may be necessary to assure the legal validity of the loan application. g. Obtain from the borrower the required fire and extended coverage insurance policies and premium payment receipts. h. Obtain from the borrower evidence of current tax and special assessment payments in the form of most recent receipts. i. Secure the borrower's endorsement on the loan check. J. Advise the borrower with regard to: (1) Name of the loan servicer to whom monthly payment checks shall be made payable, where to send the first and subsequent monthly payments, and the obligation to remit the first monthly payment even though the borrower may not receive a payment notice. (2) Need to make all monthly payments on the date due to avoid legal action. k. If applicable, obtain check from borrower to cover accrued escrow expense account items. The check shall be forwarded to loan servicing agent. 17 1. Obtain borrower's signature on proceed order and hold until it is evident that the borrower does pcttnd to cancel the loan in accordance with the Truth inLending 5. POST SETTLEMENT. The Rehabilitation Officer shall record all recordable instruments and obtain evidence of recordation promptly after completing loan settlement. The Rehabilitation Officer shall prepare a transmittal letter (original and one copy) to the local lender under contract to the City for loan servicing. Preparation and release of the original and copies of the transmittal letter and accompanying documents shall not be delayed, pending receipt of the rarnrded instruments and evidence of recordation. 18 APPENDIX 1. GUIDE FORM OF TRANSMITTAL LETTER FOR TRANSFER OF REHABILITATION LOANS TO SERVICE AGENT Gentlemen: Exhibit A The following City of Iowa City rehabilitation loans have been settled and are being transferred to you for loan servicing in accordance with the agreement between the City of Iowa City and your lending institution. For each loan listed below, there are enclosed, as applicable, checks to cover accrued escrow expense account items for the following loans: The first monthly payment for each loan listed below is due , 19___, and the amount of the first monthly payment and subsequent mommy payments for each loan is indicated on the corresponding Form CDR -6236. The following loans are covered by this transmittal: Loan Number Name of Borrower Amount of Loan Type of Loan Securit (Signature of Rehabilitation Officer) (Title) Enclosures %7 V 19 CHAPTER 8. LOAN CLOSEOUT 1. GENERAL. This chapter sets forth the staff responsibilities for loan closeout and transmittal of related documents for a rehabilitation loan. 2. DISPOSITION OF FUNDS STATEMENT. After all funds have been disbursed from the rehabilitation escrow account and the account has been closed, the Rehabilitation Officer shall prepare a Disposition of Funds Statement in which the Rehabilitation Officer shall account for the disposition of the full loan amount and any other funds deposited in the rehabilitation escrow account for the borrower. 3. TRANSMITTAL REQUIREMENTS. After final payment for all rehabilitation costs an a ter closing the borrower's account, the Rehabilitation Officer shall transmit the documents prescribed below to the borrower and the Finance Department, in accordance with the following: a. Transmittals to Finance Department. (1) Disposition of funds (copy). (2) Contractor's final invoice. (3) Form CDR -7645 (copy). i (4) Release of liens. b. Transmittals to Borrower. (1) Disposition of funds (copy). (2) Form CDR -7645 (original). 20 CHAPTER 9. TERMS AND CONDITIONS UNDER WHICH REHABILITATION LOANS ARE MADE 1. GENERAL. This chapter sets forth City requirements with respect to terms and conditions to which an applicant must agree in order to obtain a rehabilitation loan. 2. REHABILITATION LOAN CONDITIONS. The specific terms and conditions with respect to rehabilitation loan to a residential property are incorporated in Form CDR -7631, the mortgage or other security instru- ments as applicable, and the promissory note. Cancellation Provision. Under paragraph 3 of Form CDR -7631, concerning the City s right to cancel a loan if within 60 days from the note's execution the rehabilitation work has not com- menced, the City may extend the 60 -day period by not more than 30 days, due to unforeseen and extenuating circumstances. b. Additional Extension. The Rehabilitation Officer shall not grant any further extensions of time without prior written concurrence by the Director, Department of Planning A Program Development. If the loan is to be canceled because of failure to begin anticipated rehabilitation work within the allowed period of time, the Rehabilitation Officer shall initiate cancellation. 3. INTEREST RATE. The interest rate to the borrower for a comprehensive reWa-ST—aatfon loan shall be six percent (6%) per annum. A weather- ization loan shall be three percent (3%) per annum. 4. TERM OF LOAN. The maximum term for a City rehabilitation loan shall be 15 years for comprehensive rehabilitation and five years for a weatherization loan. S. POINTS OF AGREEMENT. The applicant shall agree, as required by the related documents, to abide by the following terms and conditions. a. Civil Rights. Comply with all Federal and City requirements with respect to the Civil Rights Act of 1964 and the Civil Rights Act of 1968, to not discriminate upon the basis of race, color, creed, religion, national origin, age, sex, marital status, disability and sexual orientation, presence or absence of dependents, or public assistance source of income, in the sale, lease, rental, use or occupancy of the subject property. b. Use of Proceeds. Use the loan proceeds only to pay for costs of vices and materials necessary to carry out the rehabilitation work for which the loan will be approved. c. Completion of Work. Assure that the rehabilitation work shall be carried out promptly and efficiently through written contract. d. Ineligible Contractors. Not award any contract for rehabilitation work to be paid for in whole or in part with the proceeds of the loan to any contractor, who, at the time, is ineligible under the provision of any applicable regulation issued by the Secretary of Labor to receive an award of such contract. 4L79 21 e. Inspection. Permit inspection by the City or its designee of the property, the rehabilitation work, and all contracts, materials, equipment, payrolls, and conditions of employment pertaining to the work. f. Records. Keep such records as may be required by the City with respect to the rehabilitation work. g. Interest of Certain Officials. Not permit any member of or Delegate to the Congress of the united States, and no Resident Commissioners, to share in any proceeds of the loan, or to any benefit to arise from the same. h. Bonus Commission or Fee. Not pay any bonus, commission, or fee or the purpose o obtaining the City's approval of the loan application, or any other approval or concurrence required by the City or its designee to complete the rehabilitation work, financed in whole or in part with the rehabilitation loan. i. Interest of the City. Allow no member of the governing body of the City who exercises any functions or responsibilities in connection with the administration of the concentrated rehabilita- tion project, and no other officer or employee of the City who exercises such functions or responsibilities to have any direct interest in the proceeds of the rehabilitation loan, or in any contract entered into by the applicant for the performance of work financed, in whole or in part, with the proceeds of the rehabili- tation loan. j. Preservation of the Security. Maintain the property at the requirements of the Rehabilitation Standards level and permit the City or its designee to inspect the property during the term of the loan. k. Hazard Insurance. Maintain hazard insurance on the property with a oss payab e clause to the City as applicable. 1. Transfer of the Property. Not sell, or transfer the property without repaying the entire loan, unless prior written consent of the City is sought and received. m. Loan Securit Re uirements. Provide security for the loan, the orm o a mortgage, on the property, if applicable. n. Debtor's Insurance. Maintain a debtor's life insurance policy in the amourthe mortgage or lien as applicable. o. Flood Insurance. If property is located in a designated flood hazard area, the owner agrees to: (1) Purchase the requisite flood insurance coverage. (2) Renew and maintain the coverage so that the flood insurance policy does not lapse during the term of the loan. (3) Provide proof of insurance coverage to the City. /y71 22 CHAPTER 10. FUNDING OF INDIVIDUAL LOANS AND MANAGEMENT OF ACCOUNTS 1. GENERAL. This chapter sets forth policies for funding the individual loan and also the policies for City management of loan funds. 2. FUNDING REPAIR LOANS. When an application for financial assistance has been processed and approved, the staff shall enter the total amount of assistance in the program account ledger as encumbered monies. The staff must be certain that adequate funds are budgeted and uncommitted before processing applications for loans. Program budgets will be established annually by the City Council according to local, state and federal funding availability. 3. FUNDING REPAIR PROJECTS SUPPLEMENTED BY PRIVATE FUNDS. When supple- mental funds are utilized to complete a project, these funds are collected when the application is approved and deposited into the program account awaiting disbursement. An entry of fund receipt shall be made in the program account ledger. The Iowa City Department of Finance is responsible for depositing the check and reporting the transaction in the department computer printout by case number and finance program. 4. MANAGEMENT OF THE REPAIR LOAN AND SUPPLEMENTAL FUNDS ACCOUNT. All private repair program funds shall be deposited in a non-interest earning bank account. Accounting records will be maintained to keep private funds separate from other City funds. a.Separate Case Numbers for Each Program Participant. The Rehabili- tation Officer will assign case numbers to each program applicant. The accounting computer printout will log all credits and debits according to assigned case numbers. b. Disbursements of Repair Funds. Disbursements from repair funds will be authorized by the Director of Planning and Program Development. A check request will be prepared and submitted to the Department of Finance properly identifying the case number and expenditure. The Rehabilitation Officer will maintain a file of all invoices and receipts. The Department of Finance will prepare a check, as directed, payable to the applicant/borrower and the payee for the following purposes, as may be appropriate: (1) Make progress and final payment for rehabilitation work. Progress payments are limited to 80% of the value of the work satisfactorily completed. (2) Pay for insurance binder, if required. (3) Reimburse the City for advanced loan expenses. (4) Closeout individual rehabilitation accounts by appropriately disbursing any unutilized funds remaining in the rehabilita- tion account. A check to return to the applicant/borrower unutilized funds in the rehabilitation account shall be made payable to the appli- cant/borrower only. ' 147f 23 c. Transmittal of Checks. The Rehabilitation Officer" shall secure the endorsement of the grantee on checks payable to the grantee and the payee. The Rehabilitation Officer shall transmit the endorsed check to the payee. Checks which include any amounts previously withheld from progress payments shall be accompanied by an explanation of the computation. d. Disputes. In the event a dispute exists between the homeowner and the contractor with respect to the repair work, the Rehabilitation Officer shall take appropriate action in accordance with the pro- visions of the construction contract to assure that the parties are satisfied before making any payment to the contractor. e. Ae,2tment and Closeout of the Case Account. Usually disburse- mnts ma a or t e purposes stated under paragraph 2 will closeout the case account. However, if unutilized funds remain in for individual cases because the actual repair costs were less than anticipated or for other reasons, the unutilized funds shall be disbursed as follows: (1) If all the funds were provided by a rehabilitation loan, the unutilized funds shall be disbursed to apply to the principal amount of the loan. A check to be applied to the rehabilita- tion loan amount shall be made payable jointly to the borrower and the lender, and transmitted with instructions that the check shall be applied to the reduction of the loan's principal balance. (2) If the loan was supplemented by private funds, the unutilized funds, up to the amount of the private contribution, shall be disbursed to the homeowner at his option. 1 g7f 24 CHAPTER 13. PROPERTY APPRAISAL L. GENERAL. An appraisal is required for every property to be rehabilitated with a rehabilitation loan. The type of appraisal varies depending on whether the loan involved is secured or unsecured. a. For a rehabilitation loan on residentialproperty an as -is appraisal is required. An as -is appraisal is defined as the highest price which a property will bring, if exposed for sale in the open market, allowing a reasonable time to find a purchaser who buys with knowledge of all the uses to which it is adapted and for which it is capable of being used. The value sought presup- poses all cash to the seller, with the purchaser financing the transaction by the most advantageous means and terms generally available throughout the entire city. The value must also take into consideration the neighborhood upgrading expected as a result of the Neighborhood Revitalization Plan or local code enforcement program. 2. APPRAISAL FOR REHABILITATION LOAN. The Rehabilitation Officer should make a preliminary evaluation to ascertain the loan approval is likely, before requesting an appraisal. a. Appraisal by City Staff. For loans under $5,000 the appraisal shall be made whenever possible by City staff. (1) The appraisal information shall be recorded on Farm CDR -7632, completed in its entirety and signed by an authorized member of the staff. This action will confirm the City's acceptance of and concurrence in the report. The completed Form CDR -7632 shall be retained in the case file. The estimates of value, remaining economic life, and age of structure shall be entered in the spaces provided on Form CDR -7630. b. 8,,r b Inde endent A raiser. For loans of $5,000 or more, the Rehabi itation Officer shall obtain an appraisal from an independent FHA -approved appraisal agency. %7 to 25 CHAPTER 12. DETERMINING WORK TO BE DONE WITH A REHABILITATION LOAN 1. GENERAL. This section sets forth the responsibilities of the Reha- i nation Officer for determining the repair work necessary to bring a property into conformance with the requirements for a home rehabili- tation program and for providing assistance in the repair of the property. In carrying out these responsibilities, the Rehabilitation Officer shall: a. Inspect the property. I b. Make a preliminary deficiency list and cost estimate of the work to be done. c. Consult with and advise the owner on the work to be done and the availability of a rehabilitation loan. d. Prepare a final deficiency list and cost estimate as the basis for a loan and for contracting for the repair work. 2. WORK WRITE-UP AND COST ESTIMATE. A deficiency list and cost estimate is a statement prepared by the Rehabilitation Officer based on the property inspection report that itemizes all the repair work to be done on the property, and includes an estimate of the cost of each item. The cost estimate shall be reasonable and shall reflect actual costs prevailing in the locality for comparable work. /y7f IR CHAPTER 13. CONTRACTING FOR REPAIR WORK INTRODUCTION. This chapter sets forth requirements and procedures with respect to construction contracts for repair financed through a Rehabilitation Loan. Repair work shall be undertaken only through a written contract between the contractor and the recipient of the loan. Whenever possible the owner shall be encouraged to obtain their own bids and enter into the repair contract with little or no City involvement. The Rehabilitation Officer shall assist each applicant as needed, in arranging for and obtaining an acceptable construction contract. a. Form of Contract. The construction contract shall consist of a single document form provided by the City and signed by the con- tractor and accepted by the homeowner, only following approval of the repair loan. It shall contain a bid and proposal by the contractor. b. Procurement of Bids. An acceptable contractor's bid and proposal must be obtained before the Director approves Form CDR -7630 for the repair loan. 2. GENERAL CONDITIONS. The Rehabilitation Officer shall prepare "general conditions' f' or use in all construction contracts for the repair of the property. 3. SPECIFICATIONS AND DRAWINGS. A deficiency list and illustrative sketches, if any, covering the specific repair work for each property on which a repair loan will be made shall be prepared by the Rehabili- tation Officer. Drawings shall be prepared only when essential to show the scope of the work involved so that a fair bid for the work can be obtained, and to avoid misunderstandings with the bidder. The deficiency list and drawings shall be based on the inspection of the property and interviews, as indicated, with the applicant. The deficiency list shall clearly establish the nature of the work to be done and the material and equipment to be installed. 4.' INVITATION TO CONTRACTORS FOR BID AND PROPOSAL. a. Contractor Selection. The owner shall be asked for the name of a contractor he/she would like to bid on the repair of his/her prop- erty. If the owner does not know of a contractor, the staff shall provide the property owner with two contractor names from the list of contractors maintained at the Department of Planning and Program Development. b. Invitation to Bid. Once the contractor has been selected accord - ng to paragraph 4a, above, the homeowner shall contact the selected contractor and invite him/her to bid the proposed repair. The homeowner shall negotiate with the contractor to obtain an acceptable bid. c. Bid Review. Upon receipt of the bid proposal from the bidding contractor, the homeowner shall review the bid for completeness and accuracy making special note to assure that the deficiency list has been adhered to. /y71 27 d. Acceptable Bid. An acceptable bid is one that upon review under 4c. above is not in excess of 10% of the Rehabilitation Officer's estimate. The bidding contractor shall provide a cost for each repair item. If the costs are not acceptable, the Rehabilitation Officer shall work with the homeowner and contractor to negotiate a cost that is reasonable and acceptable to all parties. e. Maintenance of the Contractor's List. (1) The Rehabilitation Officer shall be responsible for maintain- ing a list of all contractors including minority and female contractors who have expressed an interest in bidding on repair construction and who can provide the following as contained on Form CDR -7946: (a) Adequate active liability insurance. (b) The name of his/her company bank. (c) the names of his/her usual subcontractors. (d) The names of his/her principal suppliers. (e) The names and addresses of at least two (2) recent residential repair or construction jobs. (f) Iowa City contractor's license as applicable. (2) The Contractor List shall be maintained in a conspicuous place within the Department of Planning and Program Develop- ment office, open to public review. The Contractor List shall be grouped according to the category of specialization the contractor requests to be listed (e.g. general contrac- tors, electrical, plumbing/heating, masonry, dry wall, etc.). 6. AWARD OF CONSTRUCTION CONTRACT. The contract shall be awarded by having the applicant for the can properly execute the contract with the assistance of the Rehabilitation Officer. a. Issuance of Proceed Offer. At the time the award is made, the Rehabilitation Officer shall remind the applicant and the success- ful contractor that the undertaking of the work covered by the contract is subject to issuance by the owner of a proceed order, within the number of days stated in the general conditions of the contract from the date of the award. Upon award of the contract, the homeowner shall notify unsuccessful bidders that they have not been awarded the contract. b. Award within 30 days of Cutoff Date. In order for the bid and proposal to be binding, the award shall be made within a period of 30 days from the cutoff date established by the homeowner for the receipt of the bid and proposal, unless a later date is agreed upon in writing. 28 Contract Award. The ward of a construction contract shall be accomplished by the owner executing the original and two copies of the contract documents. The homeowner shall distribute the execute contract to documents as follows: (1) Executed original retained by homeowner. (2) Executed copy to contractor. (3) Executed copy to the City of Iowa City in care of the Reha- bilitation Officer. 7. LABOR PERFORMED BY OWNER IN REPAIRING PROPERTY. Type ofWork and Skill of Owner. A property owner may complete some or all of the tasks required to repair his/her property, if he/she has the degree of skill required to perform the work involved. Self-help is usually appropriate for the accomplishment of tasks of an unskilled nature such as general clean-up, demoli- tion of small buildings on a property, removal, cartage, and disposal of the debris, and for work that involves minimal use of costly materials and equipment. Work of a skilled nature and work involving the extensive installation of costly materials and equipment are appropriate if the Rehabilitation Officer is assured the property owner has the ability and experience required to do the work properly without supervision or that he/she has suffi- cient skill to do the work properly with technical advice and guidance from the Rehabilitation Officer. Provision for Self -Help in Loan. Whenever self-help is necessary, indicate or desired and the Rehabilitation Officer considers that with or without technical assistance and guidance a property owner will be able to perform the work in a reasonably acceptable and expeditious manner, he/she may process an application for a loan on that basis. In such a case, the amount of the loan would provide funds to pay for the materials and equipment to be installed by self-help, as well as an additional funds needed to pay for other work to be performed by a contractor. The loan shall not include funds to pay the owner or members of his/her am y or their labor. Further, the Rehabilitation Officer must exercise good judgement and prudence as to avoid a situation in which an owner could place himself or herself in financial difficulty through improper use, installation or even destruction of the materials and equipment purchased with loan funds. For this reason, the owner should understand that the proceeds of a loan to pay the supplier for materials and equipment involved in a self-help will be disbursed from the loan account by the staff, only after they have been properly installed. / 4171 29 CHAPTER 14. INSPECTION OF REPAIR WORK 1. GENERAL. This chapter sets forth the requirements for the inspection of repair work financed in whole or in part with a rehabilitation loan. RESPONSIBILITY FOR MAKING INSPECTIONS. The Rehabilitation Officer shall make inspections of construction work in cases involving a repair loan. To accomplish this, the Rehabilitation Officer shall make: (1) Compliance inspection, as necessary, to assure that the construc- tion work is being completed in accordance with the construction contract. (2) A final inspection to determine that the construction work has been completed in accordance with construction contract. The Building Inspector and any specialists from the Building Inspec- tion Division, as may be required, shall accompany the Rehabili- tation Officer on the final inspection and shall provide the Rehabilitation Officer with a written report of their findings. 3. INSPECTIONS FOR PAYMENT. Inspection of construction work shall be made in accordance with the following: a. Inspections. Upon completion of the repair work and receipt of the contractor's invoice containing his certification of satisfac- tory completion of the work in accordance with the contract and his/her warranty, the Rehabilitation Officer shall arrange for inspection of the completed work. b. Making Payments. When the inspection determines that the work is satisfactorily When in accordance with the contract, the homeowner shall be advised to obtain from the contractor a release of liens and a copy of each warranty due the owner for the work. After receipt of a release of liens, including releases from all subcontractors and suppliers and a copy of each warranty, the homeowner shall make payment. 4. CERTIFICATION OF FINAL INSPECTION. After the Rehabilitation Officer determines that the rehabilitation work has been satisfactorily completed and the final inspection report obtained, the staff shall prepare a Form COR -7945 (original and one copy). Distribution. Form COR -7945 shall be distributed as follows: (1) Signed original to the property owner. (2) Signed copy to the property file. Coordination with Contractor. When some of the repair work is to ST performed through self-help and the remainder is to be com- pleted by the contractor, the Rehabilitation Officer should assure that the work is accomplished by each of them so as not to interfere with or jeopardize the other's work. In cases where a separation in the timing of the work is not feasible, the Reha- bilitation Officer should urge the owner and the contractor to make their own arrangements on the timing, so that each may do l 7 70 30 his/her work without causing any interference in the work to be done by the other. In all instances, the owner will be better protected if work to be performed through self-help is completed before the contractor starts his/her work. Such completion will help avoid claims by the contractor for extras or damages he/she may claim are caused by the self-help efforts and will assure that when all work is finished, the property will comply with the City loan requirements. 5. OTHER PROVISIONS. a. The Contractor Shall: Indemnify and hold harmless the owner, the owner's employees and the City employees and officials from any and all liability, loss, cost, damage, and expense (including reasonable attorney's fees and court costs) resulting from, arising out of, or incurred by reason of any claims, actions, or suits based upon or alleging bodily injury, including death, or property damage rising out of or resulting from the contractor's operations under this contract, whether such operations be by himself/herself or by any subcontractor or by anyone directly or indirectly employed by either of them. The contractor shall obtain insurance for this purpose, which shall insure the inter- ests of the owner and the City as the same shall appear, and shall file with the owner and the City certificates of such insurance. b. Correction of Faulty Work after Final Payment. The approval of the Request for Payment by the Rehabilitation Officer and the making of the payment by the owner to the contractor shall not relieve the contractor of responsibility for faulty materials or workmanship. 6. ONE-YEAR GUARANTEE ON WORK BY CONTRACTOR. All work performed by the contractor is covered by a one-year guarantee but property owners are not always aware that, for a period of one year, they may require the contractor to correct si nificant defects and inadequacies in the work performed under this contract. or th s reason, the Rehabilitation Officer shall inform the owner of the guarantee requirements upon completion of the contract. The contractor must be given written notice with reasonable promptness. Should the contractor fail to answer or correct the defect(s) within a reasonable time, the City, at owner request, will assist owner in the following manner: (1) Staff members of the Department of Planning and Program Develop- ment will investigate the complaint. (2) If the staff finds the complaint to be invalid, owner will be so notified. (3) If the staff finds the complaint to be valid, the homeowner will direct the contractor to take necessary corrective action within a specified length of time. (4) If the contractor complies, the staff will reinspect the work and, if it is satisfactory, the owner will be expected to sign a written statement withdrawing the complaint. I/ 7f 31 (5) If the contractor fails to respond to the request within the specified length of time, the staff, upon owner request, will prepare a letter for owner's signature notifying the contractor a second time that unless the complaint is abated by a specified time, a formal complaint will be filed with the City Attorney for appropriate action. (6) If the contractor fails to respond to the request for correction within the time specified: (a) The homeowner will take any necessary action to have the defects corrected, including but not limited to paying the reasonable costs of correcting work or materials determined by the homeowner to be defective. (b) The contractor may be prohibited by the City from contract- ing any other repair work under any loan program admini- stered by the City. 7. REHABILITATION OFFICER - OWNER - CONTRACTOR RELATIONS. Rehabilitation Officer's Responsibility and Authority: The Rehabilitation Officer shall observe the work on behalf of the City and will provide general assistance during construction insofar as proper interpretation of the loan requirements is affected. The Rehabilitation Officer and owner shall decide, when necessary, any and all questions which may arise as to the quality and acceptability of materials furnished, work performed, interpretation of work items on the Deficiency List and all questions as to the acceptable fulfill- ment of the Contract on the part of the Contractor. The Rehabilitation Officer will not be on the construction site at all times and as such cannot be responsible for the acts or omissions of the contractor or his/her employees. For the same reason, acceptance by the homeowner or the City of the contractor's work performed, does not release the contractor from the responsibility to provide quality performance on all contract specifications. 11W 32 CHAPTER 15. APPLICANT'S INCOME GENERAL. This chapter sets forth the basis for establishing an applicant's income for the purpose of a rehabilitation loan on a residential property, and takes into account the variations applicable to different types of applicant's and properties, and special consid- erations related to the type of project area in which the property is located. TYPE OF APPLICANT. In order to determine the purpose and amount of a rehabilitation loan, an applicant is identified as either an owner -occupant of a one- or two -dwelling unit property or an inves- tor -owner. For purposes of determining an applicant's income, an applicant must be identified additionally, either as a person or other legal entity, as defined below. a. Person. The term "person" means one or more natural persons who either hold legal title to, or occupy under a land sales contract, a property to be rehabilitated. b. Other Legal Entity. The term 'other legal entity" means nay legal entity other than a "person", such as a partnership or corporation that holds legal title to a property to be rehabilitated. Any "other legal entity" within the meaning of this definition is also an investor -owner. i 3. SOURCES OF FUNDS AND AMOUNTS COMPRISING APPLICANT'S INCOME. The following is a listing oft ems comprising income for purposes of a rehabilitation loan. Exleent clusions from income applicable in special circumstances are stated in paragraph 5 below. a. Portion of Income Derived from Rental Units. If the property contains more than one dwelling unif a ter rehabilitation, that portion of an applicant's income that is derived from the property shall be reported on Form CDR -7630, block D, line 4, as a net figure determined as follows: (1) Net Income. The net income from the rental units in the owner -occupied property to be rehabilitated is the gross rental income, less expenditures allocable to the rental units. These allocable expenditures including payments, on the basis of an average of one or more years for mortgage or land contract principal and interest, mortgage insurance premium, service charges, hazard insurance, real estate taxes and special assessments, maintenance and repairs, heating and utilities, and other cash expenditures for the property such as advertising vacancies. If the applicant has not owned the property for one or more years, the Rehabilitation Officer shall estimate the income and expenditures on the available experience. (2) Allocation of Expenditures to Rental Units. The allocation Of expenditures to the rental units may be established by dividing total monthly expenditures for the entire property by the number of units in the property. The result is the shared expenditures allocable to the owner -occupied dwelling units, which when subtracted from the expenditures for the entire property, produces the monthly expenditures allocable /�W 33 to the rental units (i.e., often units are rented with heat and water but under separate electrical meters; in these cases, the heat and water are shared expenses but the electrical cost to the tenants is not part of the building expense). (3) Net Rental Income on Form CDR -7630. The monthly expenditures allocable to the rental units, subtracted from the gross .rental income from the property, produces the net rental income to be entered on CDR -7630, block D, line 4. Portion of Income Derived from Roomers. If the property contains rooming units, that portion of an applicant's income that is derived from roomers shall be reported on Form CDR -7630, block D, line 4, as a net figure determined as follows: (1) Net Income. The net income from the roomers in the owner -occupied property to be rehabilitated is the gross rental income, less expenditures including payments, on the basis of an average of one or more years for mortgage or land contract principal and interest, mortgage insurance premium, service charges, hazard insurance, real estate taxes and special assessments, maintenance and repairs, heating and utilities, and other cash expenditures for the property for one or more years, the Rehabilitation Officer shall estimate the income and expenditures on the available experience. (2) Allocation of Expenditures to Roomers. The allocation of expenditures of the roomer may be established by determining the percentage of floor space that is used exclusively by the roomer(s). The allocable expenditures shall be reduced by the percentage of floor space as calculated above. Ali cant Who Is a Person. Income of an applicant who is a person nc udes the income of the applicant and his/her family. The applicant's family includes the applicant and any other person or persons related by blood, marriage, or operation of law, who share the same dwelling unit. If ownership of the property rests in more than one person, the applicant is each owner and family. The applicant's income, therefore, is the sum of the family incomes of all applicants. An applicant's income is established on an annual basis, at the time of applying for a rehabilitation loan, and includes: (1) The applicant's earnings. (2) Spouse's earnings. (3) Other family members living in the home, if their employment is a definite characteristic of family life. Excluded is the income of an adult family member, other than the applicant and spouse, who does not have an ownership interest in the property, but included are any funds 34 contributed or paid to the family, on a regular basis by an excluded adult family member (such as room and board, rent, etc.) Excluded are incomes of those under 18 or full-time students or mentally or physically disabled dependents. (4) Other income regularly received by applicant or his family. (5) Net income from real estate, other than the property to be rehabilitated, and any other net business income. (a) Gross rental income, and (b) On the basis of an average or experience for two or more years, expenditures for mortgage principal and interest, mortgage insurance premium, service charges, hazard insurance, real estate taxes and special assessments, maintenance and repairs, heating and utilities, ground rent, and other cash expenditures for the property, such as advertising vacancies. If the applicant has not owned the property for two or more years, the staff shall estimate the income and expendi- tures on the available experience. 4. REPORTING OF APPLICANT'S INCOME. The applicant's income is reported on the application form submitted by the applicant, as follows: a. Rehabilitation Loan. The applicant's income shall be reported on Form CDR -7630. (1) Owner-Occu ied Property. The applicant's income with respect to a rehabi itation loan on an owner -occupied property shall be reported on Form CDR -7630, as follows: The gross rental income from the property to be rehabilitated shall be included in block D, line 5, "Gross Income from Real Estate"; and the expenditures in block E, "Monthly Housing Expense", on lines 1 through 9, as appropriate. 5. EXCLUSIONS AND ADJUSTMENTS TO APPLICANT'S INCOME a. Loans. Deduct the following amounts from gross income: (1) $480 per child per month (child must be living in the home, under 18 years of age, or full-time student dependent). (2) Deduct 10% of gross income for taxes (persons not retired or disabled), OR see (3). (3) Deduct 25% of retirement benefits, disability benefits, or Social Security benefits. /Y V 01 CHAPTER 16. TRUTH IN LENDING REQUIREMENTS FOR REHABILITATION LOANS 1. PURPOSE. This chapter describes the Truth in Lending Act and its procedural and disclosure requirements which must be followed in the settlement of City of iowa City rehabilitation loan. 2. BACKGROUND. a. The Act. The Truth in Lending Act is Title I of the Consumer Credit Protection Act (Public Law 90-321); title 15, U.S. Code 1601 et. seq.), enacted by Congress on May 29, 1968. The act requires that borrowers in consumer credit transactions" be vested with certain rights and protections in connection with the transaction and receive specified written information from their lenders. The disclosures must be made before credit is extended and before the borrower becomes obligated in connection with the transaction; i.e., before execution of a note or mortgage. Among the required disclosures are: (1) The amount of credit a borrower will have for his actual use (the AMOUNT FINANCED; and (2) The FINANCE CHARGE (consisting primarily of interest) expressed both as a dollar amount and as an ANNUAL PERCENT- AGE RATE. b. Three -da Rescission Provision. In addition, the act enables a , w borrowerith n 3 days following the loan transaction, to rescind the transaction, if the loan is secured by a lien on the bor- rower's residence. 3. TRUTH IN LENDING DISCLOSURE STATEMENT: USE IN REHABILITATION LOAN SETTLEMENTS. Form CDR -7640, Truth in Lending Disclosure Statement shall be given to all borrowers of rehabilitation loans. a. A li�cability. A complete Disclosure Statement shall be given to al bol rrowers of rehabilitation loans. b. Time of Furnishin Disclosure Statement to Borrower. The Disclo- sure Statement sha begiven the borrowers at oan settlement but prior to the time he/she executes the mortgage and promissory note obligated his/her repayment of the loan. c. Recei ted Co of Disclosure Statement Retained b n Rehabi ation Officer. When the Disclosure Statement is given to the borrower, he/she shall be requested to sign and date an identically completed Disclosure Statqment in the presence of an employee or other authorized representative of the City who shall also sign as witness. The signed and witnessed copy of the Disclosure State- ment shall be retained by the City in the loan application file. /y7f 36 4. BORROWER'S RIGHT OF RESCISSION: SECURED LOANS. Under the law, certain borrowers have the right, within a 3 -day period, to rescind the entire loan transaction. The right of rescission applies to rehabilitation loans, secured by mortgage or deed of trust, on residential property owned and occupied by a borrower who is a natural person. 5. NOTICE OF OPPORTUNITY TO RESCIND TRANSACTION. Borrowers entitled, by the preceding paragraph 5, to rescind the loan transaction shall receive a properly completed Notice of Opportunity to Rescind Transac- tion. a. Furnishing Notice to Borrower at Loan Settlement. The Rehabilita- tion Officer shall give the borrowers two copies of the notice at loan settlement, and prior to his execution of mortgage and note. The notice's nature and purpose shall be explained. An additional third copy of the notice shall be signed by the borrowers so as to evidence his/her receipt of two copies of the notice. The receipted copy shall be retained by the City in its loan applica- tion file. b. Format of Notice. The City shall, on its own letterhead, repro- duce the notice, both front and back. The text shall consist of the same language, with blanks completed, so as to show the application number, loan settlement date, deadline for rescission (three business days following loan settlement date). The para- graph entitled, "Effect of Rescission" shall appear on the reverse of the notice. The size of the text on both sides of the notice shall be not less than 12 -point bold-faced type. Three -Day Rescission Period. To compute the running of the 3 -day rescission period for entry on the notice, treat the date of loan settlement on which the borrower receives the notice as Day Zero and the next business day thereafter as Day 1, etc. Three business days must elapse following loan settlement date to complete the rescission period. A business day is any calendar day except Sunday and the following holidays on the dates established by Federal law: New Year's Day, Washington's Birthday, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving, and Christmas. (1) No Disbursements. The Rehabilitation Officer shall make no disbursement from the rehabilitation escrow account, with respect to the borrower, during the 3 -day rescission period. In this regard, the mortgage payoff check in connection with any refinancing shall be dated as the day next following the last day of the rescission period, with the amount of the check reflecting accrued interest and other charges accord- ingly. The check shall neither be released by the Rehabili- tation Officer nor endorsed by the borrower before such date. (2) Prompt Recordation. In every case, the Rehabilitation Officer shall record promptly after loan settlement the mortgage, deed of trust, and all instruments necessary to perfect the loan security without waiting for expiration of the 3 -day rescission period. 1y 7f 37 6. CANCELLATION OF LOAN TRANSACTION BY BORROWER. The loan transaction S be considered cancelled if the borrower's notice to that effect is given within the required 3 day period. Notification by mail shall be considered given at the time mailed as indicated by the postmark; notification by telegram shall be considered ogiven ther at the t she filed for transmission; and notification by any l be considered given at the time delivered to the Civic Center. 7. ACCOMPLISHMENT OF RESCISSION. It is expected in most cases that the borrower's re, bearoing phis ll bsignatureiandddatehis underithe cancellator ion re the notice, written recital. However, rescission may be accomplished by any communication signed by the borrowers or a telegram sent by the borrower. Oral communications cannot accomplish rescission, but they should be followed up by the Rehabilitation Officer to obtain written rescission. B. PUBLIC BODY'S ACTION ON Ktbtiri yr ^• I . .1 -1 --- Upon the Rehabilitation officer's r borrowereCorollow procedures for p of oa telegramf anesent written ytthe communication siby gned borrower, the Rehabilitation Officer shall f cancellation. In lieu of the borrower's signature in block F of Form of Rehabilitation COR 7630C, Cancellation can for Residential Property, the Rehabilitation Officer shall type in block F the following: "Borrower's signature on appropriate Notice of Rescission, as required under Truth in Lending Act a. Release of Liens U on Rescission. Appropriate release of liens City Attorrney�seoffice ha completed Form officer CDR-7630C.submitting to the b. ScOj3e of Rescission to rescissions requested yt erborrower�, within appn y y y foregoing the 3 -day rescission period, as described in this chapter, and no to other cancellations. 9, SUBMISSION OF COMPLIANCE STATEMENT AT POST SETTLEMENT. The Rehabili- Certification astion Officer to Compliance witall h T uithain Lending Actmwith the other ement.documents required to be transmitted to the applicant at post settlement. iy7ff 38 CHAPTER 17. GRIEVANCE PROCEDURE 1. Review Committee a. Purpose. A Review Committee is hereby established to review the complaint of any person aggrieved by the Department of Planning and Program Development handling of the application and processing of said person for assistance under rehabilitation programs funded by the Community Development Block Grant Program. Procedures as set out hereinafter are hereby established for the submission to and disposition of grievances by the Committee. The Committee shall function in an advisory role and it shall make recommenda- tions to the City Manager. The City Manager shall receive and review the recommendation of said Committee and respond within ten days of receipt. b. Designation of Committee. The Housing Commission shall act as the Review Committee. The Chair of the Housing Commission shall preside at all meetings conducted by the Housing Commission while convened as the Review Committee. In the absence of the Chair, the Vice Chair shall preside. The meetings shall be conducted in a timely, orderly, fair and dignified manner. All persons appeared before the Committee shall have an opportunity to be heard. A quorum of the Housing Commission must be present in order for the Housing Commission to be convened as the Review Committee. c. Power and Duties. The Committee shall have the following powers and duties: To review complaints of any persons aggrieved by determinations of the Planning & Program Development Department concerning: -The sufficiency of the application for assistance; -The eligibility of the application for assistance under the project; -The amount of the loan allocated or received by said person; -The quality and appropriateness of the work designated to be done; -The adequacy of the information and assistance concerning the project which is furnished by the Planning & Program Development Department. d. Standards. In exercising its powers and duties, the Committee sha be guided by the following standards: 1. Persons eligible for loans under provisions specified in rehabilitation programs operated by the Department of Planning and Program Development and funded by the Community Develop- ment Block Grant Program shall have full right to a loan sufficient to accomplish the purposes intended by the appli- cable program within the limitations specified therein. JI/V 39 2. Eligible persons should be provided adequate assistance in the determination of improvements that are needed and eligible and technical assistance related to cost estimates, contract negotiation and payment of contractors for work completed. 3. Service should be provided by the Department of Planning and Program Development in such a way to assure that the admini- stration of the program will not result in different or separate treatment on account of age, race, color, religion, national origin, sex, or source of income. 4. Eligible persons should be provided full information and advisory services relating to the programs and the way in which they may benefit from them. 5. Assistance to eligible persons should be provided as promptly as possible within the priority guidelines established by the programs and the time limitations of the staff assigned to the program. e. Staff. The Recording Secretary of the Housing Commission shall provide secretarial services for the Housing Commission while constituted as the Review Committee and shall assist in the preparation of the agenda items for meetings. 2. PROCEDURE. a. Filing. The Committee's jurisdiction may be invoked by or on behalf of any aggrieved person by filing a grievance with the Review Committee. A grievance may be filed at the Office of the City Clerk for the City of Iowa City. Grievances shall be filed in a timely manner and must be received hV r. P ritv nf TAw. t„ wur-R. Ine cummunicaLlon of the action shall be in written form and should contain a short, concise statement of the grievance and explanation of action desired. The aggrieved person may seek the assistance of the staff of the Department of Planning & Program Development in filing of an action. No filing or processing fees shall be required of any aggrieved person involving the Committee's jurisdiction. Notice. The Committee shall fix a reasonable time for hearing actions and the Department of Planning & Program Development shall give notice in writing of the time and place of the meeting to the aggrieved person. In no event shall the hearing be held more than 30 calendar days following receipt of the grievance at the Office of the City Clerk. Recording Secretary of the Housing Commission shall be responsible for coordinating and scheduling the hearing with the Chairperson of the Housing Commission. At the hearing, the aggrieved may appear in person, by agent or by attorney. If a grievance is resolved prior to the date of the hearing, the aggrieved party shall request in writing that the grievance be withdrawn. The Committee shall forward its recommendation in writing to the City Manager within ten (10) calendar days follow- ing the Grievance Hearing. 1471 TABLE OF CONTENTS Chapter 1. General Chapter 2. Project Financing & Eligible Project Costs Chapter 3. Cost Includable in Rehabilitation Loans Chapter 4. Forgivable Loan . Chapter 5. Processing & Submissions Procedures Chapter 6. Terms & Conditions Under Which Forgivable Loans are Made Chapter 7. Funding of Individual Loans & Management of Accounts Chapter S. Determining Work to be done with a 7 Yr. Forgivable Loan Chapter 9. Contracting for Repair Work. Chapter 10. Inspection of Repair Work. Chapter 11. Applicant's Income Chapter 12. Conversion of Rehab I Loan to a Forgivable Loan Chapter 13. Grievance Procedure I x{'19 CHAPTER 1. GENERAL 1. LEGAL AUTHORITY. Loans are authorized by City Council utilizing Title I assistance under the Housing and Community Development Act of 1974, as amended. 2. DEFINITIONS. Following are definitions of various terms as used with respect to rehabilitation activities. a. Disabled. For the purposes of this program a person shall be considered disabled when that person receives social security disability compensation or disability compensation for other public assistance organizations. b. Elderly. For the purposes of this program it shall mean any one or more of the property's title holders who are sixty-two (62) years of age or older. c. Family. The applicant's family includes the applicant and any other person or persons related by blood, marriage or operation of law, who share the same dwelling unit. d. Liquid Assets. Property that can be readily converted into cash without appreciable loss in value such as: savings accounts, and/or stocks and bonds. Equity in the property to be rehabili- tated or a motor vehicle when used for transportation to and from employment or school is not considered when computing liquid assets. e. Owner. Means one or more natural persons who hold legal title to a property to be rehabilitated. f. Owner -Occupied Property. A property occupied by the owner that is used entirely for residential purposes and that contains one dwelling unit. g. Repair Cost. The total cost of repairs or improvements incurred by the owner that are includable in a rehabilitation contract, whether or not financed in part with funds from other sources. h. Rehabilitation officer. An employee of the City's Department of Panning 8 Program Development charged with the duties of admini- stering the specific aspects of the rehabilitation program. i. Flood Insurance. Insurance coverage provided to those areas part c pat ng n the National Flood Insurance Program to compen- sate for damages which have been incurred, thus reducing the overall impact and financial loss to affected property owners or tenants. Flood insurance coverage must be in an amount at least equal to the development or project cost. / q'71 Page 2 CHAPTER 2. PROJECT FINANCING AND ELIGIBLE PROJECT COSTS GENERAL. This chapter covers City Council provisions required for the making of rehabilitation loans, sources of funds to be used for making loans, program reimbursement for advanced fees, and the costs in connection with rehabilitation loans that are eligible project costs. 2. PROJECT FINANCING. Rehabilitation loans may be made only if there exists a City Council resolution approving the area(s) for rehabilita- tion and a sufficient appropriation of funds to finance said loans. a. Inclusion of Loan in Project Budgets. The amounts for rehabilita- tion loans shall be included in the Community Development Block Grant budget as approved by the City Council. b. Source of Funds for Rehabilitation Loans. Funds to cover an approved rehabilitation loan shall be provided by the City from project funds in accordance with the procedures established herein. ELIGIBLE PROJECT COSTS. The costs described below, related to the processing of rehabilitation cases, are eligible project costs in a neighborhood as approved by the City Council. Provision shall be made for these eligible project costs in the budget which is appropriate for the program involved. City Overhead and Third -Party Contracts. The following costs incurred in the processing and administering of rehabilitation loans are eligible project costs, to the same extent as costs incurred for other eligible project activities. (1) City cost for staff salaries, wages, and related personnel expenses. (2) Costs incurred under contract or agreement with organiza- tions, firms, and individuals for technical and professional services. Contracts and agreements for the provision of technical or professional services must meet the City's requirements for third -party contracts as to form and methods of solicitation and execution, and, where appropri- ate, shall be concurred in by the City Attorney's office and the City Manager. b. Other Costs Related to Loans. In addition to those costs set forth In paragraph 3.a. above, other costs for goods and services required for the processing of a rehabilitation loan application may be considered eligible project costs. Advancin Funds for Includable Costs. As necessary, the City sha advance project tunas to pay tar processing fees, credit reports and charges for title reports and recordation fees. I7 7,f Page 3 CHAPTER 3. COST INCLUDABLE IN REHABILITATION LOANS 1. GENERAL. A rehabilitation loan may be made when a component of the structure is malfunctioning or has deteriorated to a point so as to be a violation of the Housing Code. Upon completion of repairs, the structure must pass Iowa City Housing Code inspections. 2. INCLUDABLE COSTS. Costs includable in a rehabilitation loan are the costs of: correcting incipient as well as actual violations of the Housing Code, building permits and sales tax as described below: REQUIREMENTS OF CODE. When necessary to meet a specific requirement of the Housing Code, a rehabilitation loan may be used, to the extent necessary for: a. The rehabilitation or removal of elements of the dwelling struc- ture, including basic equipment, and of other improvements to the property such as garages, fences, steps, walkways, and driveways. The term 'basic equipment" includes such items as heating furnace, water heater, and electrical and sanitary fixtures. b. The provision of sanitary or other facilities, including the provision, expansion and finishing of space necessary to accommo- date those facilities. c. The provision of additional or enlarged bedrooms, if required by the Housing Code. d. Grading, filling, or landscaping of the grounds, if required by the Housing Code. e. Building Permits and Related Fees. A loan may provide funds to cover the cost of building permits and related fees that are required to carry out theproposed corrective work. However, since the construction contract documents will require the contractor to pay for them, this cost ordinarily would be included in the contract amount. f. Sales Tax. Since the construction contract is a private contract between a property owner and a private contractor, the loan proceeds may be utilized to pay for required sales taxes. The contractor shall be required to include sales tax in the bid price. g. General Improvements. A rehabilitation loan which includes funds to cover costes meeting the requirements of the Housing Code may include, in addition, funds for general improvements the owner may wish to perform and can financially afford to do. The maximum dollar amount available for general improvements shall be limited to 40% of the cost of correcting to Housing Code standards, and incipient work. Page 4 3. COSTS NOT INCLUDABLE. A rehabilitation loan shall not provide for: a. New construction, substantial reconstruction, expansion of the size of a structure or the finishing of unfinished spaces such as an attic or basement. b. Materials, fixtures, equipment or landscaping of a type or quality which exceeds that customarily used in the locality for properties of the same general type as the property to be rehabilitated. c. Appliances not required by the Housing Code. d. Purchase, installation or repair of furnishings or trade fix- tures. 4. WORK WRITE-UP. The City staff shall prepare a Deficiency List in accordance with this manual, to document the repair work to be financed with a rehabilitation loan. 5. ASSURANCE THAT REPAIRS WILL BE COMPLETED. In some instances the repair cost may exceed the amount of the loan. In such cases, the loan will not be made unless the applicant can provide whatever additional amount is needed to assure completion of the work so that the property will meet at least the Housing Code. 6. SUPPLEMENTAL FUNDS. When the applicant is furnishing supplementary funds from sources other than the rehabilitation loan, evidence that actual funds are available shall consist of verification and documen- tation by the staff that the applicant can deposit the required amount in a rehabilitation escrow account. /I/70P Page 5 CHAPTER 4. FORGIVABLE LOAN 1. GENERAL. This section sets forth the eligibility requirements in regards to the property and the applicant for a rehabilitation loan. Loans are available to all eligible owner -occupants of single family residential properties which are located in the neighborhoods desig- nated by the City Council. 2. APPLICANT ELIGIBILITY. To be considered for a forgivable loan, the applicant must be in compliance with the following criteria: a. Be the owner -occupant of a single family dwelling which is located in the City Council designated neighborhood service area. b. Be eligible for the forgivable loan determined on the basis of the following income and asset limitations: (1) Maximum Income. Have an adjusted annual income for the household which does not exceed: 50% of the median income for the Iowa City MSA, as estab- lished by the U.S. Department of Housing & Urban Development (HUD) based on the number of persons per household. The Rehabilitation Officer will have the current income chart available upon request. (2) Have Liquid Assets not in excess of: (a) Applicant under 62 years of age or who is not disabled: $10,000 for a 1 person household $15,000 for a 2 person household $20,000 for a 3 person household (b) Applicant over 62 years of age or who is disabled: $25,000 for a 1 person household $30,000 for a 2 or more person household (3) Monthly Income Considerations (a) The City would collect and report the following gross monthly income data: (1) Base pay for Head of Household, spouse, other family members. (2) Any other earnings (other jobs, etc.) (3) Net income from property being rehabilitated (gross income from roomers, garage rental, etc., minus operating expenses) (4) Any other income source (interest, etc.) (5) Income from social security, pension, annuities, general relief, AOC. /If 7� Page 6 (b) The City would then adjust downward the income of the household by deducting: (1) 10% of 3a-1 through 4 above for Federal, State and local taxes and (2) 25% of 3a-5 above for fixed income consideration. (3) $480 for each child under 18 years of age or a full time student dependent residing in the home to be repaired. 3. LIMITATION ON THE AMOUNT OF FORGIVABLE LOAN. The amount of a reha- bilitation forgivable loan that an applicant may receive shall be limited by the following: For an applicant whose income and liquid assets are in accord with the established formulas, the loan amount shall not exceed the lesser of: a. The actual (and approved) cost of the repairs necessary to make the property conform to the Housing Code - and may include approved general property improvements. The amount shall be established in accordance with this manual. b. $17,500 per household. 4. TERMS AND CONDITIONS. a. Forgivable loans to homeowners shall be secured by a recorded lien against the property. b. Amortization. (1) If the repaired property is sold or transfers ownership prior to the first year anniversary of the loan, 100% of the lien shall be called due. (2) If the repaired property is sold or transfers ownership prior to the second year anniversary of the loan, 86% of the original lien shall be called due. The remaining 14% is forgiven. (3) If the repaired property is sold or transfers ownership prior to the third year anniversary, 71% of the original lien amount shall be called due. The remaining 29% is forgiven. (4) If the repaired property is sold or transfers ownership prior to the (4th) four year anniversary, 58% of the original lien amount shall be called due. The remaining 42% is forgiven. (5) If the repaired property is sold or transfers ownership prior to the (5th) fifth year anniversary, 42% of the original lien amount shall be called due. The remaining 58% is forgiven. (6) If repaired property is sold or transfers ownership prior to the sixth (6th) year anniversary, 29% of the original lien amount shall be called due. The remaining 71% is forgiven. Page 7 (7) If repaired property is sold or transfers ownership prior to the 7th anniversary, 14% of the original lien amount shall be called due. The remaining 86% is forgiven. (8) Any sale or transfer after the seventh year anniversary would mean that 100% of the original lien amount would be for- given. c. Penalties. In the event the loan recipient(s) fail to pay, the lien amount, or a portion thereof as prescribed in 41b above, when due, the whole principal amount of the lien shall become due and payable at the option of the City without notice. The loan recipient(s) in case of suit thereon, agrees to pay reasonable attorney's fees. 5. INCREASED LOAN AMOUNT FOR EMERGENCY REPAIRS. The forgivable loan amount may be increased in order to make repairs to the property which are necessitated by an emergency which makes the property not habit- able, as determined by the City, provided the following conditions are met: a. The emergency arises within two (2) years after the completion of the original repairs financed through this program, as evidenced by a Certification of Final Inspection (see Chapter 10). b. The increased loan amount, when added to the original loan amount, does not exceed $17,500. c. The applicant/owner is the same as the recipient of the original forgivable loan. d. The applicant executes an amended promissory note to include the increased loan amount, retroactive to the date of the original promissory note. No other increase in the loan amount will be authorized. /y 7f Page 8 CHAPTER 5. PROCESSING AND SUBMISSIONS PROCEDURES 1. GENERAL. This chapter contains an outline of the functions to be performed by the staff in connection with a rehabilitation loan, and sets forth the policies and procedures to be followed by the staff in preparing, processing, and approving an application for and in canceling an approved rehabilitation loan. 2. OUTLINE OF STAFF FUNCTIONS. Listed below are the functions to be performed by the staff in connection with a rehabilitation loan. Functions a. Advise applicant on the general program objectives and explain the application form which must be completed in full. b. Advise the applicant on the availability and benefits of the rehabilitation loan and other city and private programs and resources for financing repairs. c. Determine the eligibility of the applicant for a rehabilitation loan. d. Inspect the property. e. Prepare a deficiency list and cost estimate of the repair work needed. f. Obtain evidence of ownership of the property. This may include the property deed or other evidence that the staff has received from public records that the applicant is the owner of the property. g. Verify applicant's income, housing expense and assets. h. Establish amount of loan applicant may receive. i. Advise the applicant of the conditions under which a loan is made. J. Prepare construction contract documents and assist homeowner to obtain contractor's proposals for repair work and review proposals received as requested by owner. 1' 79 Page 9 PROMISSORY NOTE REHABILITATION LOAN Exhibit A CDR -7961A DATE: PLACE: CASE NUMBER: For value received, the undersigned jointly and severally promise(s) to pay to the order of the City of Iowa City acting by and through the Director, Department of Planning and Program Development the sum of . The full Principal on this Note is payable on the transfer of the property prior to the first year anniversary of this Note. Transfer of the property prior to the second year anniversary of this Note would require 86% of the Principal to be called due. The remaining 14% would be forgiven. Transfer of the property prior to the third year anniversary of this Note would require 71% of the Principal to be called due. The remaining 29% shall be forgiven. Transfer of this property prior to the fourth year anniversary of this Note would require 58% of the Principal to be called due. The remaining 42% shall be forgiven. Transfer of the property prior to the fifth year anniversary of this Note would require 42% of the Principal to be called due. The remaining 58; would be for- given. Transfer of the property prior to the sixth anniversary date would call 29% due. The remaining 71% would be forgiven. Transfer of property prior to the seventh anniversary date would call 14% due. The remaining 86% would be forgiven. After the seventh anniversary date of this Note, 100% of the Principal will be forgiven. Should the property be damaged to such an extent that the amount of money stated in this promissory note exceed the value of the dwelling located upon the premises, the Note shall be forgiven. Damages resulting from wanton or reckless conduct on the part of the borrower or with his/her consent shall not fall within the scope of this proposal. Also any transfer resulting from the death or incapacitating illness of one or more of the undersigned would mean 100% of the Principal will be forgiven. In the event the undersigned shall fail to pay the Principal, or a portion thereof, when due, the whole amount then unpaid shall become due and payable at the option of the holder without notice. The undersigned, in case of suit hereon, agrees to pay attorney's fees. All Endorsers agree to all of the provisions of this Note, and consent to the times of payment of all or any part hereof. In witness whereof, this Note has been duly executed by the undersigned, on the _ day of 19_. Sworn and subscribed to before me this _ day of 19_• Notary Public in and for Johnson County, Iowa /I/ 71e Page 10 k. Prepare Promissory Note (Exhibit A), contracts and for CDR -7660 for signature(s), obtain applicant's endorsement, and encumber monies for loan. 1. Assist applicant, as may be required, in execution of construction contract, and deliver to owner and selected contractor. m. Make final inspection of completed repair work. Close building permits as applicable. n. Have owner obtain from contractor guarantee of work, manufactur- ers' and suppliers' warranties, and release of liens from general contractor, subcontractors, and suppliers prior to final payment for contract work. o. Issue form CDR -7945, Certificate of Completion. p. Prepare Statement of Disposition of Funds and closeout finance records. 3. PROCESSING AND APPROVAL OF -LOAN APPLICATION. Processing by the staff of an application for a rehabilitation loan consists of the completion of the functions listed below, items a. through c., assembly in one file of the Form COR -7660 and all supporting documents, and the review of the file to determine approval. a. Preparation of Form. The staff shall prepare Form CDR -7660 (Application) (original and 1 copy) for the applicant, based on information furnished by the applicant and obtained by the staff from other sources, as documented in the file. Every space provided for an entry on Form CDR -7660 shall be completed. Entries of money amounts shall be made rounded to the nearest dollar. If no money is involved for an entry for a particular application, the entry shall be "none." Review and approval by the Director of Planning & Program Development of Form CDR -7660 shall be based on the form completed in this manner. b. Approval of Application for Loan. The Director of Planning & Program Development shall approve the Rehabilitation Loan Applica- tion by signing block J, on both the original and the copy of the form. The loan application is then referred to the Housing Commission for review and final approval. If the loan alone is sufficient to repair the property, or if the loan is to be supplemented by other funds and the staff is assured that the property will be repaired to meet manual requirements, the loan is considered to be approved, and the staff may notify the applicant, and proceed with the remainder of the functions for which it is responsible in order to complete the repair work. c. Loans Not Approved. If the staff determines that Form CDR -7660 cannot be approved, a written statement of the reasons for the determination shall be put in the application file. An applica- tion number shall not be assigned to a Form CDR -7660 the staff does not approve. /21i7F Page 11 d. Record Keeping. The originals of the completed approved Form COR -7660 and contract(s) shall then be retained in the property file with the supporting documentation. 4. LOAN CANCELLATION. An approved loan may need to be canceled because the applicant has requested cancellation or is unwilling or unable to proceed with the repair work, or for other reasons. a. Cancellation Letter. To cancel an approved loan the staff shall prepare a letter in accordance with Appendix 1, and distribute the letter as follows: 1. Original to applicant. 2. One copy to the property application file. b. Notification to Finance. If funds for the canceled loan have been transferrinto a loan ed escrow account, the staff shall notify the Finance Department to return the amount originally deposited back to the administrative account. 76 Page 12 CHAPTER 6. TERMS AND CONDITIONS UNDER WHICH FORGIVABLE LOANS ARE MADE 1. GENERAL. This chapter sets forth City requirements with respect to terms and conditions to which an applicant must agree in order to obtain a forgivable loan. 2. FORGIVABLE LOAN CONDITIONS. The specific terms and conditions with respect to a forgivable loan are incorporated in Form CDR -7660. The applicant shall agree, and by signing Form CDR -7660 does agree to: a. Civil Rights. Comply with all applicable City requirements with respect to the Civil Rights Act of 1964 and the Civil Rights Actof 1968, to not discriminate upon the basis of age, race, color, creed, sex, sexual orientation, or national origin, presence or absence of dependents, or public assistance source of income in the sale, lease, rental, use, or occupancy of the subject prop- erty. b. Cancellation of Loan. Return of the loan proceeds with no right, interest or claim in the proceeds, if the loan is canceled before the repair work is started. c. Use of Proceeds. Use of loan proceeds only to pay for costs of services and materials necessary to carry out the repair work for which the loan will be approved. d. Comm letion of Work. Work. Assure that the repair work shall be carried out promptly and efficiently, through written contract let with the prior concurrence of the City. e. Inspection. Inspection by the City or its designee of the property, the repair work and all contracts, materials, equipment, payrolls, and conditions of employment to the work. f. Records. Keep such records as may be required by the City with respect to the repair work. g. Recapture Clause. The applicant shall agree to repay the full amount of the loan or that amount determined by the City if the applicant is found to be ineligible as a result of incorrect or fraudulent information in the approved Form CDR -7660. h. Interest of Certain Federal Officials. Not permit any member, or Delegate to the Congress of the United States, and no Resident Commissioner, to share in any proceeds of the loan, or in any benefit arising from the same. i. Bonus, Commission, or Fee. Not pay any bonus, commission, or fee for the purpose of obtaining the City approval of the loan application, or any other approval or concurrence required by the City or its designee, to complete the repair work, financed in whole or in part with the repair loan. /y79 Page 13 j. Interest of the City. Allow no member of the governing body of the City of Iowa City, an no other City official of the locality who exercises any functions or responsibilities in connection with the administration of the federally assisted project or program, and no other officer or employee of the City who exercises such functions or responsibilities, to have any direct interest in the proceeds of this• loan, or in any contract entered into by the applicant for the performance of work financed in whole or in part with the proceeds of the repair loan. k. Flood Insurance. If property is located in a designated flood azar area, t e owner agrees to: (1) Purchase the requisite flood insurance coverage. (2) Renew and maintain the coverage so that the flood insurance policy does not lapse during the term of the loan. (3) Provide proof of insurance coverage to the City. /y Xr Page 14 CHAPTER 7. FUNDING OF INDIVIDUAL LOANS AND MANAGEMENT OF ACCOUNTS 1. GENERAL. This chapter sets forth policies for funding the individual loan and also the policies for City management of loan funds. FUNDING REPAIR LOANS. When an application for financial assistance has been processed and approved, the staff shall enter the total amount of assistance in the program account ledgeras encumbered monies. The staff must be certain that adequate funds are budgeted and uncommitted before processing applications for loans. Program budgets will be established annually by the City Council according to local, state and federal funding availability. FUNDING REPAIR PROJECTS SUPPLEMENTED BY PRIVATE FUNDS. When supple- mental funds are utilized to complete a project, these funds are collected when the application is approved and deposited into the program account awaiting disbursement. An entry of fund receipt shall be made in the program account ledger. The Iowa City Department of Finance is responsible for depositing the check and reporting the transaction in the department computer printout by case number and finance program. 4. MANAGEMENT OF THE REPAIR LOAN AND SUPPLEMENTAL FUNDS ACCOUNT. All private repair program funds, shall be deposited in a non-interest earning bank account. Accounting records will be maintained to keep private funds separate from other City funds. a. Separate Case Numbers for Each Program Participant. The Rehabili- tation Officer will assign case numbers to each program applicant. The accounting computer printout will log all credits and debits according to assigned case numbers. b. Disbursements of Repair Funds. Disbursements from repair funds wil be authorized by the CDOG Program Coordinator. A check request will be prepared and submitted to the Department of Finance properly identifying the case number and expenditure. The Rehabilitation Officer will maintain a file of all invoices and receipts. The Department of Finance will prepare a check, as directed, payable to the homeowner/borrower and the payee for the following purposes, as may be appropriate: (1) Make payments for repair work. (2) Closeout individual repair accounts by appropriately dis- bursing any unutilized funds remaining in the repair ac- count. A check to return to the homeowner unutilized funds in the repair account shall be made payable to the homeowner only. c. Transmittal of Checks. The Rehabilitation Officer shall secure the endorsement of the homeowner on checks payable to the homeowner and the payee. The Rehabilitation Officer shall transmit the endorsed Page 15 check to the payee. Checks which include any amounts previously withheld from progress payments shall be accompanied by an explana- tion of the computation. d. Disputes. In the event a dispute exists between the homeowner and the contractor with respect to the repair work, the Rehabilitation Officer shall take appropriate action in accordance with the provisions of the construction contract to assure that the parties are satisfied before making any payment to the contractor. e. Adjustment and Closeout of the Case Account. Usually disburse- ments made for the purposes stated under paragraph 2 will closeout the case account. However, if unutilized funds remain in for individual cases because the actual repair costs were less than anticipated or for other reasons, the unutilized funds shall be disbursed as follows: (1) If all the funds were provided by a loan, the unutilized funds shall be disbursed to apply to the administrative account, the source from which they came. (2) If the loan was supplemented by private funds, the unutilized funds, up to the amount of the private contribution, shall be disbursed to the homeowner. 1#7y Page 16 CHAPTER 8. DETERMINING WORK TO BE DONE WITH SEVEN YEAR FORGIVABLE LOANS 1. GENERAL. This section sets forth the responsibilities of the Reha- biritation Officer for determining the repair work necessary to bring a property into conformance with the requirements for a home rehabili- tation program and for providing assistance in the repair of the property. In carrying out these responsibilities, the Rehabilitation Officer shall: a. Inspect the property. b. Make a preliminary deficiency list and cost estimate of the work to be done. c. Consult with and advise the owner on the work to be done, and the availability of a rehabilitation loan. d. Prepare a final deficiencies list and cost estimate as the basis for a loan and for contracting for the repair work. 2. DEFICIENCY LIST RND COST ESTIMATE. A deficiency list and cost estimate is a statement prepared by the Rehabilitation Officer based on the property inspection report that itemizes all the repair work to be done on the property, and includes an estimate of the cost of each item. The cost estimate shall be reasonable and shall reflect actual costs prevailing in the locality for comparable work. 3. SPECIFICATIONS IN CONSTRUCTION CONTRACT DOCUMENTS. Each item on the deficiency ist sha 1 be written so that it provides a clear under- standing of the nature and scope of the work to be done, with a letter/number reference to the Construction Performance Manual. The Construction Performance Manual shall refer to manufacturers' brand names or to association standards to identify the quality of materials and equipment required, and may make provision for acceptable substi- tutes. Page 17 CHAPTER 9. CONTRACTING FOR REPAIR WORK INTRODUCTION. This chapter sets forth requirements and procedures with respect to construction contracts for repair financed through a seven year forgivable loan. Repair work shall be undertaken only through a written contract between the contractor and the recipient of the loan. Whenever possible the owner shall be encouraged to obtain their own bids and enter into the repair contract with little or no City involvement. The Rehabilitation Officer shall assist each applicant as needed, in arranging for and obtaining an acceptable construction contract. a. Form of Contract. The construction contract shall consist of a Tingle document form provided by the City and signed by the contractor and accepted by the homeowner, only following approval of the repair loan. It shall contain a bid and proposal by the contractor. 2. GENERAL CONDITIONS. The Rehabilitation Officer shall prepare "general conditions for use in all construction contracts for the repair of the property. 3. DEFICIENCY LIST AND DRAWINGS. A deficiency list and illustrative sketches, if any, covering the specific repair work for each property on which a repair loan will be made shall be prepared by the Rehabili- tation Officer. Drawings shall be prepared only when essential to show the scope of the work involved so that a fair bid for the work can be obtained, and to avoid misunderstandings with the bidder. The deficiency list and drawings shall be based on the inspection of the property and interviews, as indicated, with the applicant. The deficiency list shall clearly establish the nature of the work to be done and the material and equipment to be installed. 4. INVITATION TO CONTRACTORS FOR BID AND PROPOSAL. Contractor Selection. The owner shall be asked for the name of a contractor he/she would like to bid on the repair of his/her property. If the owner does not know of a contractor, the staff shall provide the property owner with two contractor names from the list of contractors maintained at the Department of Planning & Program Development. b. Invitation to Bid. Once the contractor has been selected accord- ing to paragraph 4.a, above, the homeowner shall contact the selected contractor and invite him/her to bid the proposed repair. The homeowner shall negotiate with the contractor to obtain an acceptable bid. c. Bid Review. Upon receipt of the bid proposal from the bidding contractor, the homeowner shall review the bid for completeness and accuracy making special note to assure that the deficiency list has been adhered to. Page 18 d. Acceptable Bid. An acceptable bid is one that upon review under 4.c. above, is not in excess of 10% of the Rehabilitation Offi- cer's estimate. The bidding contractor shall provide a cost for each repair item. If the costs are not acceptable, the Rehabili- tation Officer shall work with the homeowner and contractor to negotiate a cost that is reasonable and acceptable to all par- ties. e. Maintenance of the Contractors' List (1) The Rehabilitation Officer shall be responsible for maintain- ing a list of all contractors who have expressed an interest in bidding on repair construction and who can provide the following as contained on Form COR -74946: All contractors who are on the contractors' list will receive a construction performance manual. (a) Adequate active liability insurance [see 2.h.(1) above]. (b) The name of his/her company bank. (c) The names of his/her usual subcontractors. (d) The names of his/her principal suppliers. (e) The names and addresses of at least two (2) recent residential repair or construction jobs. (f) Iowa City contractor's license as applicable. (2) The Contractor List shall be maintained in a conspicuous place within the Department of Planning & Program Development, open to public review. The Contractor List shall be grouped according to the category of specialization the contractor requests to be listed (e.g., general contractors, electrical, plumbing/heating, masonry, dry wall, etc.). 5. AWARD OF CONSTRUCTION CONTRACT. The contract shall be awarded by hav ng the app cant for the '0 an properly execute the contract with si the asstance of the Rehabilitation Officer. a. Issuance of Proceed Order. At the time the award is made, the Rehabi itation Officer shall remind the applicant and the success- ful contractor that the undertaking of the work covered by the contract is subject to issuance by the owner of a proceed order, within the number of days stated in the general conditions of the contract from the date of the award. Upon award of the contract, the homeowner shall notify unsuccessful bidders that they have not been awarded the contract. b. Award within 30 days of Cutoff Date. In order for the bid and proposa to be binding, the award shall be made within a period of receipt30 days from the or the cutoff b of the bid and proposal, unless a laterthe date homeowner f is agreed upon in writing. Page 19 Contract Award. The award of a construction contract shall be accomplished by the owner executing the original and two copies of the contract documents. The homeowner shall distribute the executed contract to documents as follows: (1) Executed original retained by homeowner. (2) Executed copy to contractor. (3) Executed copy to the City of Iowa City in care of the Rehabilitation Officer. 6. LABOR PERFORMED BY OWNER IN REPAIRING PROPERTY. a. Type of Work and Skill of Owner. A property owner may complete some or all of the tasks required to repair his/her property, if he/she has the degree of skill required to perform the work involved. Self-help is usually appropriate for the accomplishment of tasks of an unskilled nature such as general clean-up, demoli- tion of small buildings on a property, removal, cartage, and disposal of the debris, and for work that involves minimal use of costly materials and equipment. Work of a skilled nature, and work involving the extensive installation of costly materials and equipment, are appropriate if the Rehabilitation Officer is assured the property owner has the ability and experience required to do the work properly without supervision, or that he/she has sufficient skill to do the work properly with technical advice and guidance from the Rehabilitation Officer. b. Provision for Self-help in Loan. Whenever self-help is necessary, indicated, or desired, and the Rehabilitation Officer considers that with or without technical assistance and guidance a property owner shall be able to perform the work in a reasonably acceptable and expeditious manner, he/she may process an application for a loan on that basis. In such a case, the amount of the loan would provide funds to pay for the materials and equipment to be installed by self-help, as well as any additional funds needed to pay for other work to be performed by a contractor. The loan shall not include funds to pay the owner or members of his/her Ta—r their labor. Further, the Rehabilitation Officer must exercise good judgment and prudence as to avoid a situation in which an owner could place himself or herself in financial difficulty through improper use, installation, or even destruction of the materials and equipment purchased with loan funds. For this reason, the owner should understand that the proceeds of a loan to pay the supplier for materials and equipment involved in a self-help will be disbursed from the loan account by the staff, only after they have been properly installed. Coordination with Contractor. When some of the repair work is to be performed through self-help, and the remainder is to be completed by the contractor, the Rehabilitation Officer should assure that the work is accomplished by each of them so as not to interfere with or jeopardize the other's work. In cases where a Page 20 separation in the timing of the work is not feasible, the Reha- bilitation Officer should urge the owner and contractor to make their own arrangements on the timing, so that each may do his/her work without causing any interference in the work to be done by the other. In all instances, the owner will be better protected if work to be performed through self-help is completed before the contractor starts his/her work. Such completion will help avoid claims by the contractor for extras or damages he/she may claim are caused by the self-help efforts, and will assure that when all work is finished, the property will comply with the City loan requirements. 1. OTHER PROVISIONS. The Contractor Shall: Indemnify and hold harmless the owner, the owner's employees, the City Manager, and the City's employees from any and all liability, loss, cost, damage, and expense (including reasonable attorney's fees and court costs) resulting from, arising out of, or incurred by reason of any claims, actions, or suits based upon or alleging bodily injury, including death, or property damage rising out of or resulting from the contractor's operations under this contract, whether such operations be made by himself/herself or by any subcontractor or by anyone directly or indirectly employed by either of them. The contractor shall obtain insurance for this purpose, which shall insure the inter- ests of the owner and the City as the same may appear, and shall file with the owner and the City certificates of such insurance. b. Correction of Faulty Work after Final Payment: The approval of the Request for Payment by the Rehabilitation Officer and the making of the payment by the owner to the contractor shall not relieve the contractor of responsibility for faulty materials or workmanship. Page 21 CHAPTER 10. INSPECTION OF REPAIR WORK 1. GENERAL. This chapter sets forth the requirements for the inspection repair work financed in whole or in part with a forgivable loan. 2. RESPONSIBILITY FOR MAKING INSPECTIONS. The Rehabilitation Officer shall make inspections of construction work in cases involving a repair loan. To accomplish this, the Rehabilitation Officer shall make: (1) Compliance inspection, as necessary, to assure that the construc- tion work is being completed in accordance with the construction contract. (2) A final inspection to determine that the construction work has been completed in accordance with the construction contract. The Building Inspector and any specialists from the Building Inspec- tion Division, as may be required, shall accompany the Rehabili- tation Officer on the final inspection and shall provide the Rehabilitation Officer with a written report of their findings. 3. INSPECTIONS FOR PAYMENT. Inspection of construction work shall be made in accordance with the following: a. Inspections. Upon partial and total completion of the repair work an tl receipt of the contractor's invoice containing his certifica- tion of satisfactory completion of the work in accordance with the contract and his/her warranty, the Rehabilitation Officer shall arrange for inspection of the completed work. b. When the inspection determines that a portion of the work is sat- isfactorily completed, the contractor can request a partial payment. Partial payment request shall be accompanied by lien waivers for work that was completed. After receipt of a release of liens, including releases from all subcontractors and suppliers and a copy of each warranty, a request for final payment can be made after it is approved by the Legal Department. 4. CERTIFICATION OF FINAL INSPECTION. After the Rehabilitation Officer determines that the rehabilitation work has been satisfactorily completed and the final inspection report obtained, the staff shall prepare a Form CDR -7945 (original and one copy). Distribution. Form CDR -7945 shall be distr.ibuted as follows: (1) Signed original to the property owner. (2) Signed copy retained in the property file. S. ONE-YEAR GUARANTEE ON WORK BY CONTRACTOR. All work performed by the contractor is covered by a one-year guarantee but property owners are not always aware that, for a period of one year, they may require the contractor to correct significant defects and inadequacies in the work 10 Page 22 performed under this contract. For this reason, the Rehabilitation Officer shall inform the owner of the guarantee requirements upon completion of the contract. The contractor must be given written notice with reasonable prompt- ness. Should the contractor fail to answer or correct the defect(s) within a reasonable time, the City, at owner request, will assist owner in the following manner: (1) Staff members of the Department of Planning and Program Develop- ment will investigate the complaint. (2) If the staff finds the complaint to be invalid, owner will be so notified. (3) If the staff finds the complaint to be valid, the homeowner will direct the contractor to take necessary corrective action within a specified length of time. (4) If the contractor complies, the staff will reinspect the work and, if it is satisfactory, the owner will be expected to sign a written statement withdrawing the complaint. (5) If the contractor fails to respond to the request within the specified length of time, the staff, upon owner request, will prepare a letter for owner's signature, notifying the contractor a second time that unless the complaint is abated by a specified time, a formal complaint will be filed with the City Attorney for appropriate action. (6) If the contractor fails to respond to the request for correction within the time specified: (a) The homeowner will take any necessary action to have the defects corrected, including but not limited to paying the reasonable costs of correcting work or materials determined by the homeowner to be defective. (b) The contractor may be prohibited by the City from contract- ing any other repair work under any loan program admini- stered by the City. 6. REHABILITATION OFFICER - OWNER - CONTRACTOR RELATIONS. Rehabilitation Officer's Responsibility and Authority: The Rehabilitation Officer shall observe the work on behalf of the City, and will provide general assistance during construction insofar as proper interpretation of the loan requirements is affected. The Rehabilitation Officer and owner shall decide, when necessary, any and all questions which may arise as to the quality and acceptability of materials furnished, work performed, interpretation of work items on the deficiency list and all questions as to the acceptable fulfill- ment of the Contract on the part of the Contractor. IM Page 24 CHAPTER 11. APPLICANT'S INCOME GENERAL. This chapter sets forth the basis for establishing an appli- cant's income for the purpose of a seven year forgivable loan on a residential property, and takes into account the variations applicable to different type of applicants and properties, and special considera- tions related to the type of project area in which the property is located. SOURCES OF FUNDS AND AMOUNTS COMPRISING APPLICANT'S INCOME. The fol - owing is a listing—of the elements comprising income for purposes of a repair loan. Exclusions from income applicable in special circum- stances are stated in paragraph 5 below. a. Portion of Income Derived from Roomers. If the property contains rooming units, tFa—IF portion of an applicant's income that is derived from roomers shall be reported on Form CDR -7660, block C, line 3, as a net figure determined as follows: (1) Net Income. The net income from the roomers in the owner -occupied property to be repaired is the gross rental income, less expenditures allocable to the roomers. These allocable expenditures including payments, on the basis of an average of one or more years of mortgage or land contract principal and interest, mortgage insurance premium, service charges, hazard insurance, real estate taxes and special assessments, maintenance and repairs, heating and utilities, and other cash expenditures for the property for one or more years, the staff shall estimate the income and expenditures on the available experience. (2) Allocation of Expenditures to Roomers. The allocation of expenditures of the roomer may be established by determining the percentage of floor space that is used exclusively by the roomer(s). The allocable expenditures shall be reduced by the percentage of floor space as calculated above. b. A licant Who Is a Person. Income of an applicant includes the ncome o the app icant and his/her family. The applicant's family includes the applicant and any other person or persons related by blood, marriage, or operation of law, who share the same dwelling unit. If ownership of the property rests in more than one person, the applicant is each owner and family. The applicant's income, therefore, is the sum of the family incomes of all applicants. An applicant's income is established on an annual basis, at the time of applying for a loan and includes: (1) The applicant's earnings. (2) Spouse's earnings. (3) Other family members living in the home, if their employment is a definite characteristic of family life. Page 25 Excluded is the income of an adult family member, other than the applicant and spouse, who does not have an ownership interest in the property, but included are any funds contrib- uted or paid to the family, on a regular basis by an excluded adult family member. (Such as room and board, rent, etc.) Excluded are incomes of those under 18 or full-time students or mentally or physically disabled dependents: (4) Other income regularly received by applicant or his family. (5) Net income from real estate, other than the property to be rehabilitated, and any other net business income. (a) Gross rental income, and (b) On the basis of an average or experience for two or more years, expenditures for mortgages principal and inter- est, mortgage insurance premium, service charges, hazard insurance, real estate taxes and special assessments, maintenance and repairs, heating and utilities, ground rent, and other cash expenditures for the property, such ds advertising vacancies. If the applicant has not owned the property for two or more years, the staff shall estimate the income and expenditures on the available experience. 4. REPORTING OF APPLICANT'S INCOME. The applicant's income shall be reported on Form CDR -7660, 'Total Present Monthly Income of Appli- cant." 5. EXCLUSIONS AND ADJUSTMENTS TO APPLICANT'S INCOME. a. Loans. Deduct the following amounts from gross income: (1) $40 per child per month (child must be living in the home, under 18 years of age, or full-time student dependent). (2) Deduct 10% of gross income for taxes (persons not retired or disabled), OR see (3). (3) Deduct 25% of retirement benefits, disability benefits, or Social Security benefits. / N 7� Page 26 CHAPTER 12. CONVERSION OF REHAB I LOAN TO A FORGIVABLE LOAN 1. GENERAL This chapter establishes procedures and criteria to allow for the conversion of a Rehab I loan to a forgivable loan in cases of finan- cial hardship. 2. CONDITIONS To be considered for a conversion the applicant must be in compliance with the following criteria: A. Be a recipient of a Rehab I Loan from the City of Iowa City. B. Due to incapacitating illness or death of one of the borrowers of a Rehab I Loan, the applicant/borrower has suffered a decrease in income such that payments on the Rehab I loan cannot be made. C. Is now eligible based on the income and assets limitations as es- tablished in chapter four of the Forgivable Loan Program. 3. LIMITATIONS ON THE AMOUNT OF FORGIVABLE LOAN The amount of a Forgivable Loan that an applicant may receive shall be limited to the balance remaining on the Rehab I Loan. 4. TERMS AND CONDITIONS The staff shall prepare forgivable loan application forms, conduct such verifications and research as required, and prepare a promissory note in accord with Chapter 5 of this manual. The application and supporting documentation shall be presented to the Housing Commission along with a statement comparing the income and asset changes that have taken place causing the financial hardship and request for conversion to a forgivable loan. The Housing Commission shall act on the staff recommendations by either approving or rejecting a request for conversion. A. The conversion, if approved by the Housing Commission, shall be made in such manner that the Rehab I loan is converted to a forgivable loan with all income, assets, terms and notes computed as of the date of conversion. B. Requests for conversion disapproved by the Housing Commission shall be recorded in the City Rehabilitation records. Applicants for whom a conversion has been denied may 1) appeal the denial to the City Council in writing, 2) reapply for consideration of a conversion when income, assets or other factors affecting ability to pay make eligibility for conversion a possibility. C. All requirements regarding income, assets, limitations, terms and conditions and administrative procedures for forgivable loans shall be in accord with this Manual. IVY Page 27 CHAPTER 13. GRIEVANCE PROCEDURE 1. REVIEW COMMITTEE a. Purpose. A Review Committee is hereby established to review the complaint of any person aggrieved by the Department of Planning and Program Development handling of the application for and processing of assistance under rehabilitation programs funded.by Community Development Block Grant Program. Procedures as set out hereinafter are hereby established for the submission to and disposition of grievances by the Committee. The Committee shall function in an advisory role and it shall make recommendations to the City Manager. The City Manager shall receive and review the recommendation of said Committee and respond within ten days of receipt. b. Designation of Committee. The Housing Commission shall act as the Review Committee. The Chairperson of the Housing Commission shall preside at all meetings conducted by the Housing Commission while convened as the Review Committee. In the absence of the Chairper- son, the Vice Chairperson shall preside. The meetings shall be conducted in a timely, orderly, fair and dignified manner. All persons appearing before the Committee shall have an opportunity to be heard. A quorum of the Housing Commission must be present in order for the Housing Commission to be convened as the Review Committee. c. Power and Duties. The Committee shall have the following powers and -duties.- To uties:To review complaints of any persons aggrieved by determinations of the Department of Planning & Program Development concerning: -The sufficiency of the application for assistance; -The eligibility of the application for assistance under the project; -The amount of the loan subsidy allocated or received by said person; -The quality and appropriateness of the work designated to be done; -The adequacy of the information and assistance concerning the project which is furnished by the Department of Planning and Program Development. d. Standards. In exercising its powers and duties, the Committee sha be guided by the following standards: 1. Persons eligible for.loan subsidies under provisions specified in rehabilitation programs operated by the Department of Planning and Program Development and funded by the Community Development Block Grant Program shall have full right to a // 7f Page 28 subsidized loan sufficient to accomplish the purposes intended by the applicable program within the limitations specified therein. 2. Eligible persons should be provided adequate assistance in determination of improvements that are needed and eligible and technical assistance related to cost estimates, contract nego- tiation and payment of contractors for work completed. 3. Service should be provided by the Department of Planning and Program Development in such a way to assure that the admini- stration of the program will not result in different or separate treatment on account of age, race, color, religion, national origin, sex, or source of income. 4. Eligible persons should be provided full information and advisory services relating to the programs and the way in which they may benefit from them. 5. Assistance to eligible persons should be provided as promptly as possible within the priority guidelines established by the programs and the time limitations of the staff assigned to the program. e. Staff. The Recording Secretary of the Housing Commission shall provide secretarial services for the Housing Commission while constituted as the Review Committee and shall assist in the prepa- ration of the agenda items for meetings. 2. PROCEDURE a. Filing. The Committee's jurisdiction may be invoked by or on beh of any aggrieved person by filing a grievance with the Review Committee. A grievance must be filed at the Office of the City Clerk for the City of Iowa City. Grievances shall be filed in a timelv manner and must be received bv the Citv of Iowa Citv of the action sal be to written form and should contain a short, concise statement of the grievance and explanation of action desired. The aggrieved person may seek the assistance of the staff of the Department of Planning & Program Development in filing of an action. No filing or processing fees shall be required of any aggrieved person involving the Committee's jurisdiction. b. Notice. The Committee shall fix a reasonable time for hearing actions and the Department of Planning & Program Development shall give notice in writing of the time and place of the meeting to the aggrieved person. In no event shall the hearing be held more than 30 calendar days following receipt of the grievance at the Office of the City Clerk. Recording Secretary of the Housing Commission shall be responsible for coordinating and scheduling the hearing with the Chairperson of the Housing Commission. At the hearing, Page 29 the aggrieved may appear in person, by agent or by attorney. If the grievance is resolved prior to the date of the hearing, the aggrieved party shall request in writing that the grievance be withdrawn. The Committee shall forward its recommendation in writing to the City Manager within ten (10) calendar days follow- ing the Grievance Hearing. City of Iowa C(�� F- MEMORANDUM Date: July 25, 1984 To: City Manager and Members of the City Council From LJim Hencin, CDBG Program Coordinator am Barnes, Housing Rehabilitation Officer Re: Housing Rehabilitation Program Changes for Forgivable and Low Interest Loan Programs Following is a list of program changes that have been reviewed and approved by the Housing Commission and Committee on Community Needs. Because of the numerous changes and the bulk of the manuals, a listing of those changes is being provided to facilitate the review of this informa- tion. CHANGES MADE IN BOTH MANUALS: 1. Change age of elderly definition from 60 to 62, consistent with HUD's definition. 2. All references to Department of Housing & Inspection Services changed to Department of Planning & Program Development. 3. Added item of what costs are not includable in loans. 4. Owners will be encouraged to obtain own bids. 5. A Deficiency List will be provided to all owners/contractors instead of a detailed specification. 6. Construction Performance Manual will be given to all contractors. 7. Added flood insurance requirement if located in flood plain. 8. Lien waivers will be collected before requesting contractor payment. 9. Legal Department approval will be obtained before final payment to all contractors. CHANGES FOR FORGIVABLE LOAI4 PROGRAM ONLY: 1. Change income limit from 80% to 50% of median for this area. 2. Change maximum allowed for construction from $15,000 to $17,500. 3. Increase term of lien from 5 years to 7 years. CHANGES FOR LOW INTEREST LOAN PROGRAM ONLY: 1. Keep income limit at 80% of median for this area. 2. Increase maximum amount for comprehensive rehab from $15,000 to $17,500. Also increase weatherization loan from $1,500 to $2,500. 3. Eliminate $3.00/month service charge on comprehensive loan. Please contact either of us if there is a question concerning these changes. bc3 RESOLUTION NO. RESOLUTION AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK TO ATTEST THE FY85 AGREEMENT BETWEEN THE CITY OF IOWA CITY AND THE CITY OF UNIVERSITY HEIGHTS FOR THE PROVISION OF TRANSIT SERVICE WITHIN THE CORPORATE LIMITS OF UNIVERSITY HEIGHTS. WHEREAS, Chapter 28E of the Code of Iowa provides, in substance, that any power which may be exercised by a public agency of this State, may be exercised jointly with another public agency having such power, and WHEREAS, it is in the mutual interest of the parties to encourage the use of public transportation by residents of Iowa City and University Heights, and WHEREAS, the City of Iowa City and the City of University Heights have negotiated a 28E Agreement for the provision of transit services within the corporate limits of University Heights, a copy of which agreement is attached and by this reference made a part hereof. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY THAT: 1. The Mayor is hereby authorized to sign and the City Clerk to attest the FY85 28E Agreement between the City of Iowa City and the City of j University Heights. 2. The City Clerk is directed to file a copy of said agreement with the Secretary of State and the Johnson County Recorder as required by Chapter 28E, Code of Iowa. It was moved by and seconded by the Resolu- tion be adopted,and upon call there were: AYES: NAYS: ABSENT: AMBRISCO _ BAKER DICKSON EROAHL MCDONALD STRAIT ZUBER Passed and approved this — day of 1984. MAYOR ATTEST: CITY CLERK Rooahved S Approved By legal rttnenf lT %/ AGREEMENT FOR TRANSIT SERVICES This Agreement, made and entered into this day of , 1984, by and between the City of Iowa City and the City of University Heights, municipal corporations. WHEREAS, Chapter 28E of the 1981 Code of Iowa provides, in substance, that any power which may be exercised by a public agency of this State, may be exercised jointly with another public agency having such power, and WHEREAS, it is in the mutual interest of the parties to encourage the use of public transportation by residents of Iowa City and University Heights. NOW, THEREFORE, IT IS HEREBY AGREED BY AND BETWEEN THE CITY OF IOWA CITY AND THE CITY OF UNIVERSITY HEIGHTS, AS FOLLOWS: I. SCOPE OF SERVICES: The City of Iowa City shall provide public transit services to the City of University Heights. It is hereby agreed that Iowa City shall determine the scheduling of buses, the routes and the location of bus stops within University Heights. It is agreed that residents of University Heights will obtain the same level of service as residents of Iowa City who are served by the same routes. II. DURATION: The term of this agreement shall commence July 1, 1984, and shall continue through June 30, 1985. III. TERMINATION: This agreement may be terminated upon 30 days written notice by either party. IV. COMPENSATION: The City of University Heights agrees to pay $21,745 for the provision of public transit services herein described. Payment shall be made in 12 monthly payments of $1,812.08 each, to be received by the City of Iowa City on or before the 15th of each month, with first said payment due upon execution of this agreement. V. This agreement shall be filed with the Secretary of the State of Iowa and the County Recorder of Johnson County, Iowa. CITY OF IOWA CITY, IOWA: CITY OF UNIVERSITY HEIGHTS, IOWA: By: John McDonald, Mayor ATTEST: By: Mayor ATTEST: By: By Marian K. Karr, City Clerk City Clerk Aboelved & Appoved By ThAm The Legal Depeent U 'lZtive- RESOLUTION NO. 84-225 RESOLUTION ADOPTING THE 1985-86 COMMUNITY DEVELOP14ENT BLOCK GRANT C014MUNITY DEVELOPMENT PLAN, AND AUTHORIZING THE CITY MANAGER TO CERTIFY THAT THE CITY OF IOWA CITY HAS DEVELOPED A COMMUNITY DEVELOP- MENT PLAN. WHEREAS, the City of Iowa City is eligible to receive Community Development Block Grant Metro Entitlement funding under Title I of the Housing & Commu- nity Development Act of 1974, as amended; and WHEREAS, the Housing and Urban -Rural Recovery Act of 1983 (the 1983 Amend- ments) requires cities to certify that they have developed a community development plan covering the Fiscal Years 1985 and 1986; and WHEREAS, the Committee on Community Needs has prepared such a plan, held a public hearing on the proposed plan, and recommended adoption of the final plan by the City Council; and WHEREAS, said plan identifies community development and housing needs in Iowa City and specifies long-term objectives to meet these needs; and WHEREAS, these objectives were developed in accordance with the primary objectives and requirements of the Housing and Community Development Act of 1974, as amended. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF IOWA CITY, IOWA, that the 1985-86 Community Development Plan be adopted and that the City Manager be authorized to certify to the Department of Housing and Urban Development that the City of Iowa City has developed such a plan. It was moved by Ambrisco and seconded by Dickson the Resolution be adopted, an upon roll call there were: AYES: NAYS: ABSENT: X Ambrisco X Baker X Dickson X Erdahl X McDonald X Strait X Zuber Passed and approved this 31st day of Julv , 1984. ATTEST: 7%J/IA/AwJ (i�lA/ t 1 - CLERK Rneeived d Approver BY-7he Lepel Deperfineef SD COMMUNITY DEVELOPMENT PLAN IOWA CITY • 1985 - 86 Department of Planning & Program Development /1" t VIS Q�N�4lh ! Department of Planning & Program Development /1" IOWA CITY COMMUNITY DEVELOPMENT PLAN 1985 - 1986 FOR COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM Committee on Community Needs Mickey Lauria, Chairperson *Ruth Becker Mary Parden Karen Kubby *Roberta Patrick David Leshtz Sally Smith Alvin Logan Steven Stimmel *Sadie May Reginald Williams *Community Development Plan Sub -Committee Department of Planning and Program Development City of Iowa City July 1984 /4g° PROPOSED IOWA CITY C014MUNITY DEVELOPMENT AND HOUSING PLAN INTRODUCTION The Housing and Urban -Rural Recovery Act of 1983 (Public Law 98-181) requires communities receiving Community Development Block Grant (CDBG) Entitlement funds to prepare a community development plan. Pursuant to Section 104(b)(4) of the Act, this plan must identify community develop- ment objectives that have been developed in accordance with the primary objective of the Housing and Community Development Act of 1974, as amended. Since Congress has authorized CDBG funds through FY1986, the Iowa City Committee on Community Needs (CCN) has prepared a connunity development plan for the calendar years 1985 and 1986. This plan provides a brief profile of Iowa City, identifies community development and housing needs, particularly in relation to lower income persons, and details long-term objectives to meet these needs. The Committee on Community Needs will translate the long-term objectives into short-term objectives at a later time when it makes specific recom- mendations to the City Council on the allocation of CDBG funds for 1985 and 1986. 1 J 44tb IOWA CITY COMMUNITY PROFILE' An Overview Iowa City, home of the second and third capitals of the territory of Iowa and of the first capital of the State of Iowa, was named before its location had even been determined. On January 21, 1839, Governor Robert Lucas signed a bill to locate the permanent seat of government of the territory at the most suitable point within the limits of Johnson County. This site was to be called Iowa City. By October of the same year, the site was selected, a town survey was completed, the first city map was drafted, and 209 lots within the commu- nity were sold. In December, 1846, Iowa became a State and Iowa City, thus, became the first capital of the State of Iowa. In February, 1841, the First General Assembly of the new state designated Iowa City as the location for the State University of Iowa. As the migration of the 1850s moved Iowa's center of population west- ward, however, the seat of government, in January, 1855, was moved from Iowa City to Des Moines. At the same time, the "Old Capitol" and ten acres of land were given to the newly founded University of Iowa. Thus, the shaping force of Iowa City shifted from its original purpose as a political capital to that of an educational and cultural center for the State. The community revolves around its two largest "industries" - the University of Iowa and the University of Iowa Hospitals & Clinics. Iowa City's population is partially composed of University students who enrolled at a record rate of over 29,000 during the 1983-1984 academic year. If the University is the source of Iowa City's prosperity, it also accounts indirectly for some of the City's problems. The startling growth at one f enrollment during the 1960s put a strain on the City's housing supply; time, rental vacancies were practically unheard of. Today, the rental vacancy rate still remains quite low. High demand by students for housing is coupled with their limited incomes. The result is overcrowding and a large amount of "wear and tear" on these units. Many landlords who can almost always find renters seem to have little incentive to maintain their properties at a high level. Since the University is tax exempt, Iowa City collects no property taxes from its largest "industry". The City, however, is compensated by the University for some services such as fire protection. In spite of this, there are other costs imposed on the City by the University and its students for which the City is not remunerated. As a result, the property tax burden falls heavily upon the owners of residential property. Nevertheless, the University of Iowa remains a major stabilizing force for the Iowa City economy. This section has presented an overview of the development of Iowa City. The following sections describe the City's population characteristics, income and employment characteristics, housing conditions, and the general condition of public facilities. *All figures quoted in this section are from the 1980 Census of Population and Housing, unless noted otherwise. 1410 Population Characteristics The 1980 Census of Population and Housing reveals that the population of Iowa City in 1980 was 50,508. This represents a 7.8% increase over the 1970 population. This growth rate is modest in comparison to the growth experienced by the City between 1960 and 1970 when the population increased by 40.1%. The growth in the 1960s is attributed to expansion at the University of Iowa when its enrollment doubled. The enrollment at the University continues to rise. According to the Univer- sity's records, from 1971 to 1983 the number of students has increased from 20,387 to 29,599. This is a 45.2% increase in a 12 year period. It is apparent, then, that the University of Iowa is a major economic force in the City. As expected, the young adult population within the community is very large. Over 59% of all persons within Iowa City are between 15-34 years of age. On the other hand, only 6.6% of local residents are aged 64 and older. This is considerably less than the 13.3% elderly individuals in the State as a whole. Consistent with State-wide population patterns, the minority population of Iowa City is small. In 1980, only 2.0% of the State's population was non-white; 5.6% of the Iowa City population was non-white. The Asian and Pacific Islander group comprises approximately 41.1% of the local minority population while 35.0% of the minority population is black. University enrollment data for 1983-1984 reveal that, whereas 27.4% of the Asian and Pacific Islander popula- tion are students, almost 60% of the black population consists of University students. Income and Employment Characteristics In 1979 dollars, the median family income in Iowa City is $22,325. This compares with a State-wide median family income figure of $20,062. Of 9,875 Iowa City families, 622 families or 6.3%, have incomes below poverty level. Of these 622 families, 184 are headed by a woman, with no spouse present, and 45 are headed by an individual 65 years of age or older. Although the median family income for Iowa City compares favorably with the State-wide figure, many Iowa City households are composed of unrelated indi- viduals living together. A comparison of median household income for Iowa City and the State reveals a $16,809 figure for the State and only $14,417 for Iowa City. This median household income figure is 14% below the State-wide amount. The 1980 Census indicates that 7,176 or 45.1% of all unrelated individuals, 15 years of age and older, who are living together earned incomes in 1979 below the poverty level. The poverty threshold for one person households and unrelated individuals was $3,686 in 1979. It must be taken into consideration, however, that the "unrelated individuals" classification includes University students residing in college dormitories. On the other hand, the "persons for whom poverty status is determined" category excludes persons in college dormitories and unrelated individuals under 15 years. Of 45,736 persons for whom poverty status was determined in the 1980 Census, 19.7% or 9,019 persons had incomes in 1979 below the poverty threshold of $3,686. Almost 87%, or 7,825 of these persons, were between 18 to 59 years of age. lged Within the State, 10.1% of persons for whom poverty status was determined had incomes in 1979 below the poverty level. The Iowa City figure of 19.7%, then, approaches almost twice the State-wide figure. While the percentage of Iowa City persons with incomes below poverty increased from 14.2% in 1970 to 19.7% in 1980, the percentage of persons with incomes below poverty decreased in the State as a whole from 13.7% to 10.1% between 1970 and 1980. The increase in the percentage of persons with incomes below the poverty level experienced by Iowa City between 1970 and 1980 may be a result of increased University enrollment. According to records in the Office of the Registrar at the University of Iowa, while the number of dormitory rooms available for University students remained constant between 1970 and 1980, student enrollment increased from 20,604 in 1970 to 25,100 in 1980. As a -result, many of •.these students relied upon housing available in the private market, which may account for the increase in the percentage of persons with incomes below the poverty level. The 1980 Census recorded 28,233 persons, 16 years and older, in the local labor force. Women constitute 49.1%, or 13,864, of this total.' The public sector is the major employer within the community. The State of Iowa employs about 17,000 people through the University of Iowa and University Hospitals d Clinics while another 2500 are employed by different federal agencies and local governments. Locally, 13,501 workers are identified as government employees within the 1980 Census. Manufacturing represents only 6.1% of the total employment within the City. A large number of service industries are also present in Iowa City to meet the needs of residents of the community. In spite of the recession that affected the State of Iowa the past few years, information from Job Services of Iowa indicates that the percentage of unem- ployed workers in Iowa City has remained low. Within the City there has been a gradual increase in unemployment from 1.7% in 1960, to 2.8% in 1970, to 3.5% in 1980. However, data for Johnson County, as a whole, reveal a decline in unemployment. The 3.2: unemployment rate recorded by the 1980 Census for Johnson County has been decreasing since 1980. The annual average rate for 1983 was 2.7%, and between January and March, 1984, the Johnson County unem- ployment rate diminished to 2.5%. Housing Conditions The 1980 Census counted 19,232 year-round housing units in Iowa City. Between January, 1981, and April, 1984, 579 permits were issued for construction of new residential structures. During this period, building permits were issued for 330 single family dwellings and 101 duplexes. Approximately 148 multi -family structures have been built which have made 1,660 more units available in the community. The increasing demands for residential living units created by'the increased enrollment at the University of Iowa have caused a continually expanding housing market. In 1982 the Iowa City Rental Housing Survey showed that the vacancy rate for rental housing was about 1.6%. It is expected that the 1984 Rental Housing Survey will show a higher rate. A continued low vacancy rate has contributed to higher housing costs in Iowa City than in other cities in Iowa. The results of the 1984 Rental Housing Survey are expected to reflect the effect of the recent surge of apartment construction on rental rates. lqd Using HUD standards of 1.01 or more persons per room for overcrowding, the 1980 Census for Iowa City reveals that approximately 2%, or 366, of the housing units were overcrowded. About 4.1%, or 787 year-round housing units lacked complete plumbing for exclusive use of each unit. A random sample housing survey, conducted by City staff in 1980, found that 13% of the units surveyed were substandard but suitable for rehabilitation, 0.2% were dilapidated, and approximately 870 were in sound condition. Most deteriorated housing is scattered throughout the City's older neighbor- hoods. These neighborhoods, located close to the central business district and the University of Iowa, are desirable locations for University students. A strong demand for housing in these neighborhoods has caused overcrowding of rental units, the conversion of single family homes to rental units, and the construction of apartment buildings next to single family structures. These pressures have caused some deterioration of the housing stock. However, these negative influences have been off -set to some extent by the City's housing code enforcement program, by the appeal of historic structures in older neighbor- hoods for single family use, and by the attraction to students of newly constructed apartment complexes within walking distance of the University. Condition of Public Facilities In general, the condition of the City's infrastructure, or public facilities, is good. Streets are well maintained and there is a continual effort to improve public works services provided by the City. Within some Neighborhood Improvement Areas, however, attention must be directed to upgrading storm sewer systems, providing additional street lighting, and constructing or repairing sidewalks. The sanitary sewer system serving the community must also be expanded and improved. lgf6 COMMUNITY DEVELOPMENT AND HOUSING NEEDS In order to identify the perceived community development and housing needs in the Iowa City area, the Committee on Community Needs (CCN) requested input from citizens in the community. Letters were sent to the Iowa City City Council, Iowa City boards, commissions and organizations; a large advertisement in the newspaper, a radio talk show, a TV news item, and short radio announcements were also used to inform citizens about the preparation of a community development and housing plan which was intended to address the primary objective of the Community Development Block Grant (COBG) program. This primary objective is the "development of viable urban communities by providing decent housing and a suitable living environment, and expanding economic opportunities, principally for persons of low- and moderate -income." The community development and housing needs described below are a combina- tion of suggestions from CCN, the City Council, several boards, commis- sions, and organizations, and individual citizens. HOUSING NEEDS As indicated in the community profile, the presence of the University of Iowa and the large hospital complexes has for years created housing problems in Iowa City. In particular the demand for housing negatively affects the elderly, new households and families, many of whom are competing with students for the same housing. Although the Iowa City building boom of the past two years has somewhat alleviated housing problems, many of these new units are too expensive or poorly located for lower income persons. There is a need to provide a variety of housing opportunities for the elderly. As the population ages, there is an increasing need to provide dent types of housing for the elderly. Not only is there a demand for low-cost housing for the elderly on fixed incomes, but also housing which will permit them to live independently for as long as possible. Some of the elderly have a desire to live with other persons of the same age, others prefer to be among mixed age groups. Many elderly need help with minor chore services, housing counseling and assistance with financing their housing. Also identified is the need to provide houslna opportunities for lower income ersons, especially families and new households. Rgain, there is a need or ow -cost rental and owner -occupied housing, and assistance in obtaining such housing in locations which are accessible to schools, jobs and shopping areas. With the hospital and other support facilities in Iowa City, there is an additional need for housing for the handicapped. Some handicapped persons require barrier -free residences, but others are capable of living in walk-up units with supervision. Once more, the need is for affordable units. 14�d0 1 - Continuing housing needs are the upgrading and maintenance of the housing stock. In some cases, lower income and eltleriy persons need assistance in maintaining their homes. In rehabilitating and maintaining older homes, consideration must also be given to preservation of historic structures and energy conservation measures which will reduce heating costs. NEIGHBORHOOD NEEDS During the past seven years, the COBG program has concentrated on revi- talizing a number of older, lower income neighborhoods in Iowa City. Some of these still require assistance and some additional needy areas have been identified. All the older, lower income neighborhoods would benefit from neighborhood beautification and curb ramps. Iowa AvenueNeighborhood. This neighborhood encompasses ten square blocks, with Ralston Creek running through much of the area. The land is predominantly multi -family residential, with about 2/3 of the structures in need of some repair. Problems in this area center on the need to rehabilitate deteriorated structures, particularly rental properties. Removal of dilapidated structures in the Ralston Creek floodway and creek cleanup are also needed. Miller/Orchard Street Neighborhood. This older, primarily residential neighborhood west of [he Iowa River, has a population of predominantly low -and moderate -income persons including both renters and homeowners. Deterioration of the housing stock and of public facilities such as strets and sidewalks, is evident in the area. The priority request from neighborhood residents is a park. Other neighborhood needs include housing rehabilitation and storm drainage improvements and new and improved sidewalks. 3. Muscatine Avenue Neighborhood. The area of Muscatine Avenue between Iowa Avenue and Burlington Street has been identified as needing sidewalk repairs and housing rehabilitation. 4. Creekside Neiohborhood. Problems in the Creekside neighborhood have centered on flooding due to poor stormwater drainage, inadequate sanitary sewers, and Ralston Creek which winds its way through the whole area. Much of the housing stock is old and deteriorating and some parts of the neighborhood are without sidewalks or storm sewers. While some improvements have been carried out in this area over the past three years, the need for sidewalks, creek cleanup and housing rehabilitation continues. 5. Lower Ralston Creek Nei hborhood. Over the past five years, intensive efforts in this area have resulted in the widening of Ralston'Creek so that its banks will contain the 100 year flood. The area is now zoned mainly for intensive commercial use, and relatively few single -and multi -family structures remain. While creek improvements in this area are complete, a need for rental rehabilitation and sidewalks still exists. 1�u COMMUNITY FACILITIES AND IMPROVEMENTS The City Council and local human service agencies have indicated a need for a 'o int Human Services Facility. The human service agencies are located a over town, resu ting in inconvenience and additional expense to clients, as well as a duplication of overhead costs. Housing a limited number of compatible agencies such as youth services agencies, under one roof would be beneficial. Many public buildings, notably the Civic Center, are not accessible to the handicapped. Continued effort in the removal of architectural barriers in public buildings is needed. In the past, cleanup of the Iowa River banks has been carried out by Mayor's Youth and Independent Living employees. Continued cleanup is needed. Suitable edestrian access to the west river bank below the Burlington Street dam is a so needetl, since this is a very popular fishing spot. OTHER NEEDS A number of other needs have been identified by the Iowa City community, which are not readily addressed through the Community Development Block Grant program. Other needs of the elderly include job development, peer counseling and a volunteer training program. The South Van Buren/South Johnson Street neighborhood (from Burlington Street to the CRISP railroad tracks) has changed from a largely sin- gle-family area, to a dense multi -family dominated neighborhood. Many of the remaining older houses are in poor repair, and there is a great need for some open space in this area. The dense, largely student population is also exacerbating the overcrowding at the Iowa City Recreation Center, and more recreational space is needed. The land use of the area west of Gilbert Street and south of Burlington Street is becoming increasingly high density residential as some of the area is now zoned for high rise and dense multi -family use. There is a need for open space in this neighborhood also. In addition, the committee wishes to identify three needs in particular which for various reasons are not appropriate for inclusion in the COBG community development plan. 1. Sanitary Sewer System For the past three years CDBG neighborhood activities have focused on the Creekside neighborhood. This neighborhood, location of the Rundell Street "horseshoe sewer," has for many years suffered from an inade- quate sanitary sewer system, exacerbated by development on the City's east side. This problem is only part of the overall problem of the water pollution control system which needs to be upgraded. l�v 2. Street Lighting In some areas of Iowa City the installation of more street lights would make the streets safer and more comfortable for pedestrians and bicyclists after dark. The Rape Victim Advocacy Program has identi- fied areas where lights are needed; this plan may serve as a guide for future action. 3. North Side Commercial District This six block area west of Mercy Hospital has been nominated for inclusion on the National Register of Historic Places. There is a need to rejuvenate the district by preserving and rehabilitating historic structures, reviewing local ordinances governing parking within the neighborhood, and by encouraging additional commercial development in the area. Various ways of meeting these housing and community development needs are addressed in the section of the plan titled "Long -Term Objectives to Meet Community Development and Housing Needs". 9 l 08b LONG TERM OBJECTIVES TO MEET COMMUNITY DEVELOPMENT AND HOUSING NEEDS This section discusses general objectives to meet the identified community development and housing needs in Iowa City. These objectives address the need to preserve and upgrade the City's housing stock, improve neighbor- hood conditions, provide affordable housing for lower income persons of all ages, promote energy conservation and historic preservation, and assist low- and moderate -income households and the elderly. Many of the long-term objectives in this plan will be translated into short-term objectives (specific projects) in the annual 1985 and 1986 CDBG programs. LONG-TERM OBJECTIVES FOR HOUSING It is the goal of Iowa City to protect the health, safety and welfare of its citizens. One of the most important ways of achieving this goal is to ensure that decent, safe, and sanitary housing exists which will ade- quately meet the needs of City residents, particularly those of low -and moderate -income. Three areas of low-cost housing need are identified as being of highest priority in Iowa City: i Housing for the elderly. Housing for new households and families. Housing for the handicapped. For all three target groups, there are continuing long-term objectives: - To support a program of owner -occupied and rental housing rehabilita- tion which includes energy saving measures and, where appropriate, a sensitivity to preserving and restoring the historical and architectur- al character of older homes. - To support the development of new housing units through appropriate public subsidies. - To encourage the development of lower cost housing through flexible development standards, innovative design, and provision of development incentives. Long-term objectives to address specific housing needs of the target groups are: Housing for the Elderly - To support the development of congregate housing which offers assisted independent living with minimal support services. - To support a shared housing program which offers the option of pairing (a) a well -elderly homeowner with a non -elderly roomer, 10 1X46 (b) a well -elderly homeowner with another elderly person or persons, or (c) an elderly homeowner with a handicapped person. - To encourage the option of mixed age housing through (a) shared housing arrangements, (b) multi -family complexes, and (c) single family neighborhoods. - To encourage elder' su ort services including: chore services, home delivered mea s, and financta counseling for housing alternatives. Housing for New Household and Families 1. To encourage the development of "no frills" apartments and houses. 2. To support the expansion of housing cooperatives. Housing for the Handicapped 1. To support the development of residential group homes resembling a family situation. 2. To support the development of low-cost housing, with barrier free units for handicapped persons requiring minimal supervision. LONG-TERM OBJECTIVES FOR NEIGHBORHOOD IMPROVEMENT AREAS The City of Iowa City has identified five Neighborhood Improvement Areas within the community. The long-term objectives identified in this plan address the needs of the low- and moderate -income households within these neighborhoods and speak to preserving neighborhoods affected by blight and deterioration. The following long-term objectives apply to each of the five Neighborhood Improvement Areas and address those needs common to all the neighborhoods. - To improve the condition of the housing stock in the neighborhoods by strictly enforcing the City Housing Code and by providing rental and owner occupied rehabilitation and weatherization assistance. - To improve the condition of public facilities in the neighborhoods by installing sidewa Fs where none exist, by replacing sidewalks which are badly cracked or broken, and by forming curb ramps at intersections where they presently do not exist. - To initiate neighborhoodbeautificationprograms in an effort to Improve the aesthetics of the ne ghborhoods and to foster neighborhood identity and pride. 11 146 A number of neighborhood needs are unique to a particular neighborhood. The long-term objectives which follow speak to these individual needs. Iowa Avenue Neighborhood To remove obstructions which impede the flow of Ralston Creek and to remove dilapidated structures located in the Ralston Creek floodway. Miller/Orchard Street Neighborhood - to purchase land and to develop the site as a neighborhood park. - To rectify storm water runoff problems in the neighborhood by making improvements to the storm drainage system in the area. Muscatine Avenue Neighborhood To focus attention on upgrading the housing stock within this predomi- nantly owner -occupied neighborhood by targeting housing rehabilitation programs in the area. Creekside Neighborhood To undertake cleanup activities within Ralston Creek to facilitate the flow of the creek and reduce flooding conditions within the neighbor- hood. Lower Ralston Creek Neighborhood To combine fragmented parcels of land which have been acquired and to sell these parcels for commercial redevelopment. LONG-TERM OBJECTIVES FOR COMMUNITY FACILITIES AND IMPROVEMENTS A number of conmunity-wide needs have been identified. Meeting these needs will generally benefit lower income persons throughout Iowa City. In some cases special groups such as the elderly and handicapped will benefit in particular. Human Service Agencies In order to provide more efficient and less costly services to lower income persons, the long-term objective is: - To purchase or construct a joint Human Services Facility which could house a limited number of the agencies serving Iowa City residents. Architectural Barrier Removal In order to assist Iowa City's handicapped population, long-term objec- tives are: - To provide curb ramps at street corners. 12 / 00 - To provide better access to public buildings through the installation of ramps, elevators, and other appropriate improvements. Riverfront Improvements In order to beautify the Iowa River banks and to help provide recreational and employment opportunities, particularly for lower income persons, long-term objectives are: - To cleanup the banks of the Iowa River, particularly below the Burling- ton Street dam. - To provide pedestrian access to the riverbank below the Burlington Street dam. 13 106