HomeMy WebLinkAboutHCDC 9.21.17Agenda
Housing & Community Development
Commission (HCDC)
Thursday, September 21, 2017 at 6:30 P.M.
Senior Center, Room 202
28 S. Linn Street, Iowa City
Use the Washington Street entrance or
2nd floor skywalk via Tower Place parking garage
1. Call meeting to order
2. Approval of the August 17, 2017 minutes
3. Public comment of items not on the agenda
4. Tentative schedule of project monitoring visits in FY18
5. Consider recommendation to City Council regarding commitment of
local funds to proposed Low Income Housing Tax Credit projects
6. Consider approval of the FY17 Consolidated Annual Performance &
Evaluation Report (CAPER) – online at www.icgov.org/actionplan
7. Update on Invest Health initiative
8. Update on annual input for Consolidated Plan - IC Compassion back-
to-school event
9. Staff/commission announcements
10. Correspondence
11. Adjournment
If you will need disability-related accommodations to participate in this
program/event, please contact Kristopher Ackerson at kristopher-ackerson@iowa-
city.org or 319-356-5247. Early requests are strongly encouraged to allow sufficient
time to meet your access needs.
MINUTES PRELIMINARY
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
AUGUST 17, 2017 – 6:30 PM
SENIOR CENTER, ROOM 202
MEMBERS PRESENT: Syndy Conger, Charlie Eastham, Vanessa Fixmer-Oraiz,
Christine Harms, Bob Lamkins, John McKinstry, Harry
Olmstead, Paula Vaughan
MEMBERS ABSENT: Maria Padron
STAFF PRESENT: Kris Ackerson
OTHERS PRESENT: Mary Ann Dennis
CALL MEETING TO ORDER:
Ackerson called the meeting to order at 6:30 PM.
APPROVAL OF THE JUNE 15, 2017 MINUTES:
Olmstead moved to approve the minutes of June 15, 2017 with edits. Conger
seconded the motion. A vote was taken and the motion passed 8-0.
PUBLIC COMMENT FOR TOPICS NOT ON THE AGENDA:
None.
NOMINATION & ELECTION OF OFFICERS:
Ackerson stated the Commission nominates and elects a new Chair and Vice Chair
each year.
Eastham nominated Olmstead as Chair, McKinstry seconded the motion, a vote was
taken and the motion passed 8-0.
McKinstry nominated Paula Vaughn to be the Vice Chair, Harms seconded the
motion, a vote was taken and the motion passed 8-0.
CONSIDER A RECOMMENDATION TO CITY COUNCIL REGARDING
UNALLOCATED LOCAL FUNDS SET - ASIDE FOR LOW INCOME HOUISNG
TAX CREDIT PROJECTS:
Ackerson reminded the Commission that last year the City Council started setting
aside money for affordable housing projects. It is split up 50% goes to the Housing
Trust Fund, 25% goes to land banking, 20% goes to tax credit and 5% to emergent
situations (case-by-case basis). When the fiscal year ended on June 30 there were no
tax credit applications so that $200,000 will rollover to the FY18 pot of funds.
Housing and Community Development Commission
August 17, 2017
Page 2 of 6
Without any action the money just rolls over, however Ackerson noted that there was
interest among the last Commission to discuss possibly allocating that left over money
to land banking. Ackerson wanted to bring this before the Commission before they
received applications for the low-income housing tax credit funds. The City published
an announcement and sent it to tax credit developers. The applications are due at the
end of this month so if the Commission is interested in taking that $200,000 and
putting it towards land banking that needs to be presented to City Council.
Fixmer-Oraiz asked Ackerson to outline what land banking is for the new members of
the Commission. Ackerson explained it just means they are putting money aside to buy
presumably vacant property for the development of affordable housing units. The City
would work with a developer or sell the land to a developer contingent on them
providing affordable units. Ackerson noted that most of the land the City can afford is
on the outskirts of town and might not be developable right away (could be five or ten
years).
Conger asked how much land would that amount of money purchase if in land banking
or how many projects it might attract if it were put in tax credits.
Lamkins asked if a parcel costs more than what is in the land banking account would
the City borrow the rest. Ackerson thought that would not be likely. Eastham felt the
Commission could make a recommendation to Council to purchase the land with
general funds and then increase the allocation to pay back that cost over the next few
years. Lamkins agreed with Eastham noting that if the City postpones purchasing a
parcel of land there may not be another opportunity for quite some time due to rapid
increase of land values.
Lamkins asked how the tax credits work. Ackerson explained that the State provides
tax credits that are federally funded. The most recent one funded in Iowa City was on
Arthur Street which is under construction right now. He noted there are a lot of
Housing and Community Development Commission
August 17, 2017
Page 3 of 6
requirements for a tax credit application as they are very competitive and the City’s
contribution is usually fairly small.
Mary Ann Dennis (The Housing Fellowship) stated that the tax credits have eligible
basis for the developer and the land is not an eligible basis under the low-income
housing tax program. Dennis believes either option is good because it is money being
used for land. She said for the projects and credits they use the credits pay for about
70% of the project cost. The 30% gap is usually the land and paid for from other
sources (such as private donations or local support).
Eastham asked if the land can come out of a land bank to be used in a tax credit
project. Dennis replied not if it is City-owned unless there is a long-term land lease.
The Housing Fellowship has done two projects with land leases simply because the
land is too expensive in Johnson County. The Iowa Finance Authority doesn’t like the
land leases as they are much more complicated.
Ackerson noted the City would buy the land, issue an RFP (request for proposal –
competitive application process) and it’s possible that a tax credit developer would
apply and pursue a tax credit project on that land.
Dennis added that the Iowa Finance Authority has rules regarding cost caps for tax
credit projects and they just recently stated that the cost of land is not included in the
cost caps.
Dennis elaborated that in a tax credit project, not all of the units need to be affordable
but the financing from the credit program would only go towards the affordable units.
Olmstead asked how the developers would know if the City has land available. Dennis
said those developers are constantly searching so they would know.
Eastham stated that increasing the amount of money that is spent for, or allocated in
the coming budget, for land banking seems pretty wise because then the City controls
the land and it can be used for tax credit projects and those developers are then not
bidding for land amongst other developers, causing a higher price. Therefore the key is
to get the land first, so then affordable housing can be put on that land. Therefore the
Commission should allocate the money for land banking.
Dennis stated that is correct generally, however currently she has a willing seller in an
appropriated zoned land area to construct 28 one- and two-bedroom, fully-accessible
units in the Riverfront Crossings District. The tax credits would pay for about 70% of
the total project cost, land is not in the eligible basis for the tax credits. Dennis stated
that the preliminary budget states if The Housing Fellowship was awarded the credits
(the application is due November 7) the tax credit would provide about $4 million in
equity (cash) to the project. The project can then support $1.7 million in private debt
and they already have $800,000 committed from the Johnson County Housing Trust
Fund, which leaves a gap of $326,777. If the Commission could allocate the funds to
tax credits it could be used for this project.
Dennis also noted another common barrier is that an applicant must have an executed
and exclusive purchase option or contract from the seller that is valid for nine months
Housing and Community Development Commission
August 17, 2017
Page 4 of 6
after the date of the application due date. Therefore when they are trying to buy land
in Iowa City and the seller doesn’t want to wait until the following year to close the
deal it is hard to find sellers.
Ackerson reminded the Commission that if the funds are allocated to tax credits,
anyone can apply and The Housing Fellowship is not guaranteed those funds, but they
will apply for them.
Dennis noted that often the investors are huge corporations (US Bank, big energy
corporations, insurance companies, etc.) that apply for the tax credits to build
affordable housing units because they want the credits, but then have no interest in
owning or managing affordable rental housing. Those companies will get the credits for
ten years, the units must be affordable for fifteen years, then after that they sell them
and get out so any qualified non-profit is eligible to pursue the right of first refusal and
purchase those units for $1 and any debt that is owed on the units.
Ackerson echoed what Eastham said earlier about leveraging and the millions of
dollars of corporate funds that will come into the community and allow the local banks
to have funds to do other projects.
Eastham feels it is best to keep the allocations the way they are and let the surplus roll
over into tax credits. Ackerson stated that if a project became available where land
banking would be needed, then they could do some reallocation at that time, if funds
are available.
Dennis shared with the Commission that the Iowa Finance Authority is having their
annual housing conference September 6, 7, & 8 and the tax credit syndicators all come
to that conference and one of the syndicators that The Housing Fellowship has worked
with for years is trying to organize a state-wide coalition of developers. She showed
him the City’s Affordable Housing Plan and he was impressed with it and said no other
community in Iowa is as forward thinking regarding affordable housing as Iowa City.
Ackerson noted the City issued the request for proposals for the tax credit application
for $330,000 and those applications will be reviewed at the Commission’s next meeting.
Ackerson and Dennis had discussed earlier this week that instead of having a deadline
(or application window) leaving it open next year so anybody that has a project can
come to the City and make a proposal because negotiating the deals is very difficult
and it is hard to time when the developer and land owner will come to an agreement so
that should be put on a future agenda to discuss.
Ackerson also mentioned another benefit of the tax credits is because there are all
these outside investors there are strict management guidelines for the maintenance of
the properties so they are often some of the best housing you can find in addition to be
affordable.
Ackerson stated that he will keep the Commission posted on allocations for these
funds.
STAFF/COMMISSION COMMENT:
Housing and Community Development Commission
August 17, 2017
Page 5 of 6
Ackerson reminded the Commission to not “reply all” to emails.
Also Stan Laverman (Housing Inspection Services Division) went with Ackerson to Iowa
City Compassion and met with people that were there for a back to school event. They were
handing out backpacks and clothes and had a barbeque dinner. They asked for input on
what the City could do to improve neighborhoods and Ackerson will report on those
comments at the next meeting.
Finally, Ackerson passed around a sign-up sheet for people who are planning to attend the
Johnson County Affordable Housing Coalition meetings to avoid having a quorum present.
Only four commissioners should be in attendance at any one meeting.
CORRESPONDENCE:
None.
ADJOURNMENT:
Eastham moved to adjourned. Lamkins seconded, a vote was taken and the motion passed.
Housing and Community Development Commission Attendance Record 2017 - 2018 Key: X = Present O = Absent O/E = Absent/Excused --- = Vacant or prior commissioner Name Terms Exp 9/15 10/20 11/17 12/15 1/19 2/9 2/16 3/7 4/20 6/15 8/17 Conger, Syndy 7/1/2018 X O/E X X X O/E X X X X X Eastham, Charlie 7/1/2020 ---- --- --- --- --- --- --- --- --- --- X Fixmer-Oraiz, Vanessa 7/1/2020 ---- --- --- --- --- --- --- --- --- --- X Harms, Christine 7/1/2019 X X X X X X X X X X X Lamkins, Bob 7/1/2019 X O/E X O/E X O/E X X O/E X X McKinstry, John 7/1/2020 O/E X X X X X X X O/E X X Olmstead, Harry 7/1/2018 X O/E X X X X X X X X X Padron, Maria 7/1/2018 --- --- --- --- --- --- --- --- --- --- O/E Vaughan, Paula 7/1/2019 X O/E X X X X X X X X X
Date: September 6, 2017
To: Housing and Community Development Commission
From: Community Development Staff
Re: September 19 Meeting
The following is a short description of agenda items. If you have any questions about
the agenda, or if you are unable to attend the meeting, please contact Kris Ackerson
at 356-5247 or Kristopher-Ackerson@Iowa-City.org.
Tentative schedule of project monitoring visits in FY18
November 16
• 4Cs, FY17 Technical assistance to new in-home daycare providers
• Bilam Properties, LLC, FY16 Rehab of Walden Ridge
• Domestic Violence Intervention Program, FY18 Aid to Agencies
• Neighborhood Centers of Johnson County, FY18 Aid to Agencies
• Shelter House
o FY15 Rapid Rehousing Program
o FY17 FUSE land acquisition and construction
o FY18 Aid to Agencies
April 19
• The Housing Fellowship
o FY16 Acquisition of Sabin Townhouses
o FY17 and FY18 Rehab of affordable rental units
o FY18 CHDO Operating
• Mayor’s Youth Empowerment Program
o FY18 Facility Parking Resurfacing
o FY18 Acquisition of housing
• Successful Living
o FY18 Acquisition of affordable rental
o FY18 Affordable rental rehab
May 17
• Habitat for Humanity
o FY17 Property acquisition and construction for one home on North Governor
o FY18 Property acquisition and construction
• Crisis Center, FY18 Food bank renovation
• Little Creations Academy, FY18 Daycare interior renovation project
Consider recommendation to City Council regarding commitment of local
funds to proposed Low Income Housing Tax Credit projects
Two proposals are attached for your reference. For comparison purposes, the
following table provides basic information about each proposal.
Project
Del Rey Limited
Partnership
Sand Companies,
Inc
Planning district Downtown North East
Units 28 50
Affordable 20 TBD
Market rate 8 TBD
Rezoning required No Yes
Project cost $5,813,496 $10,441,216
City funds requested $330,000 $330,000
Target demographic Low income families Low income families
Sidewalk access Yes Yes
Transit service Yes Yes
Walking distance to elem.0.9 miles 0.9 miles
Proposal for Iowa City Funds for
New Construction of Affordable
LIHTC Rental Housing
Iowa City, Iowa
August 31, 2017
Iowa City, Iowa
Project Summary:
The proposed development in Iowa City is located on Herbert Hoover Highway, just east of
Eastbury Drive on approximately 2.6 acres. The development will consist of approximately 50 units,
within one building and will target general occupancy, single heads of households with children,
families/individuals of color, single men and women. According to CITY STEPS, the most common
housing problem in Iowa City is cost-burdened households with 8,155 renter occupied households
with housing costs greater than 30% of their income. The current proposal targets these household
by providing a mixed income community consisting of 30% area median income, 40% area median
income, 60% area median income and market rate, which allows households at various income levels
to find affordable housing in Iowa City. The project with benefit low and moderate income residents
in Iowa City and Johnson County communities by providing affordable housing for individuals and
families, which consists of one, two, three and four bedroom units.
Unit amenities will include Energy Star appliances, washer, dryer, dishwasher, and microwave, as
well as HERS rating less than 62, and meeting Olmstead goals through Iowa Finance Authority. Other
resident amenities include a community room, outdoor children’s play area with picnic area,
underground parking, storage lockers and secure access. The building will be three stories above
grade and will incorporate wood frame construction. The below grade parking area will consist of
poured concrete or block walls with structural concrete precast decking and columns. The exterior of
the building will be texture stone and steel or cement board siding and will incorporate accents and
decorative louvers. All of these features are designed to make the building accessible, affordable and
sustainable.
Sand Companies, Inc. and their subsidiaries (Sand) will develop, design, build and manage the
property. Sand has nineteen years of experience in low and moderate income housing in Minnesota
and Iowa. Currently Sand Property Management, LLC manages thirty-nine (1,555 units) housing
communities, of which thirty-three are low and moderate income communities. In addition, Sand is
currently developing and constructing a 56 unit low-income housing tax credit community in
Coralville, which is anticipated to open in November 2017. Sand’s current portfolio has an occupancy
of 98%.
An application for 2018 tax credits will be submitted to Iowa Finance Authority (IFA) in November.
A request for Johnson County Housing Trust Fund and Iowa Economic Development Authority will be
submitted in the coming weeks. All of these will be used for gap funding.
Project Location:
Project Location
NOTE: FOR DISCUSSION PURPOSES ONLY. THESE PROJECTIONS ARE BASED ON ESTIMATES. ACTUAL RESULTS
MAY DIFFER OR MAY BE AFFECTED BY FUTURE OR UNFORESEEN EVENTS.
Uses of Funds >
Acquisition & Site Improvements (road, utilities)900,000
Construction Contract/Contingency 7,489,254
Soft Cost 561,645
Developers Fee 1,000,000
Financing Costs 354,117
Letters of Credit/Operating Reserves 266,200
TOTALS 10,441,216
Sources of Funds >
First Mortgage 2,125,000
City Loan 330,000
LIHTC Equity 6,684,444
Deferred Developer Fee/Other Funding 1,153,022
Investment Tax Credit 148,750
TOTAL SOURCES OF FUNDS 10,441,216
Herbert Hoover Highway Project
Iowa City, IA
Sources and Uses
August 31, 2017
NOTE: FOR DISCUSSION PURPOSES ONLY. THESE PROJECTIONS ARE BASED ON ESTIMATES. ACTUAL RESULTS MAY DIFFER OR MAY BE AFFECTED BY FUTURE OR UNFORESEEN EVENTS.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Year 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
GROSS POTENTIAL RENT
Housing Rent Potential 507,048 517,189 527,533 538,083 548,845 559,822 571,018 582,439 594,088 605,969 618,089 630,450 643,059 655,921 669,039
Parking Rent Potential (1 space included in Contract Rent)0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL GROSS POTENTIAL RENT 507,048 517,189 527,533 538,083 548,845 559,822 571,018 582,439 594,088 605,969 618,089 630,450 643,059 655,921 669,039
RENTAL LOSS
Housing Vacancy 7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%7.0%
Housing Rent Vacancy 35,493 36,203 36,927 37,666 38,419 39,188 39,971 40,771 41,586 42,418 43,266 44,132 45,014 45,914 46,833
Garage Vacancy 0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Parking Rental Vacancy 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
TOTAL VACANCY LOSS 35,493 36,203 36,927 37,666 38,419 39,188 39,971 40,771 41,586 42,418 43,266 44,132 45,014 45,914 46,833
TOTAL NET REVENUES 471,555 480,986 490,605 500,418 510,426 520,634 531,047 541,668 552,501 563,551 574,822 586,319 598,045 610,006 622,206
GENERAL & ADMINISTRATE EXPENSES
TOTAL G & A EXPENSES 84,200 86,376 88,610 90,904 93,260 95,679 98,163 100,714 103,333 106,023 108,785 111,622 114,536 117,528 120,601
REPAIRS & MAINTENANCE EXPENSES
TOTAL R & M EXPENSES 47,300 48,719 50,181 51,686 53,237 54,834 56,479 58,173 59,918 61,716 63,567 65,474 67,438 69,462 71,545
UTILITIES
TOTAL UTILITIES 65,000 66,950 68,959 71,027 73,158 75,353 77,613 79,942 82,340 84,810 87,355 89,975 92,674 95,455 98,318
OTHER OPERATING EXPENSES (Real Estate Taxes, Insurance)
TOTAL OTHER OPERATING EXPENSE 56,372 58,063 59,805 61,599 63,447 65,351 67,311 69,330 71,410 73,553 75,759 78,032 80,373 82,784 85,268
TOTAL EXPENSES 252,872 260,108 267,554 275,217 283,102 291,216 299,566 308,159 317,002 326,102 335,467 345,104 355,022 365,229 375,733
Total Expenses Per Unit 5,161 5,308 5,460 5,617 5,778 5,943 6,114 6,289 6,469 6,655 6,846 7,043 7,245 7,454 7,668
NET OPERATING INCOME 218,683 220,878 223,051 225,201 227,324 229,418 231,481 233,509 235,500 237,450 239,356 241,215 243,023 244,778 246,474
Herbert Hoover Highway Project
Iowa City, Iowa
15 Year Proforma
August 31, 2017
2017 CITY STEPS ANNUAL REVIEW
IC Compassion at Church of the Nazarene
August 16, 2017 – 4:45-6:15PM Approximately thirty people in attendance City Staff: Kris Ackerson and Stan Laverman
Comments Received:
Staff attended the back-to-school BBQ at IC Compassion to get input from low income residents regarding opportunities to improve access to affordable housing, public services and public facilities. The event provided dinner, school clothes, backpacks, and books, as well as info tables by Kelly Services, City staff, and IC Compassion volunteers. The table on Page 2 provides a summary of input from three outreach efforts this summer. The top five items after three events include: 1. More decent, safe, affordable homes (without rent increases) – weatherization, pest control, mold mitigation a. City staff is working with local partners to implement a new rental housing rehab program. City inspectors and health professionals will work together to identify low income households with someone suffering from asthma and mitigate the causes (e.g., old carpet, air filters, water infiltration causing mold, etc.). 2. Affordable daycare centers that accept childcare vouchers a. City staff is exploring collaborations to expand and improve quality of birth-5 year old daycare opportunities in a publicly owned building close to Downtown. 3. Safe place and activities in immediate neighborhood for small children 4. Center for those in mental health or substance abuse crisis to avoid jail or the emergency room 5. Promote public art, dance studios, events in the neighborhood
Juneteenth
Mercer Park
6-24-17
Farmer's
Market
7-12-17
IC
Compassion
8-16-17 Total
1 Affordable daycare centers that accept childcare
vouchers
34 28 4 66
2 More decent, safe affordable homes (without rent
increases) - weatherization, spraying for bugs, no mold
35 40 14 89
3 Neighborhood Entrepreneurial Center 10 6 2 18
4 Cooking classes - prepare healthy food on a budget 12 17 1 30
5 Legal assistance (tenant/landlord, misc.)10 12 4 26
6 Summer camps for adults with mental illness 8 3 1 12
7 Additional community spaces for neighbors (Broadway
police substation, etc.)
6 12 0 18
8 Safe place and activities in immediate neighborhood for
small children
22 25 17 64
9 Affordable health and dental care, without long waiting
times
15 16 10 41
10 Medicaid representatives to explain benefits and enroll
residents
4 5 2 11
11 Neighborhood walking program with incentives 11 16 0 27
12 Organized neighborhood pot-lucks with sponsorships 8 5 1 14
13 Expanded hours at Free Medical Clinic 8 13 5 26
14 Sliding fee scale for mental health services 13 10 0 23
15 Areas to sell community garden produce and products
(vending stall/cart)
3 11 2 16
16 In home visits for asthma education 3 8 0 11
17 Center for those in mental health or substance abuse
crisis to avoid jail or the emergency room
26 33 2 61
18 Promote public art, dance studios, events in the
neighborhood
27 21 7 55
19 Improve access to farmland, encourage immigrants with
prior experience to get involved
3 16 3 22
20 Mental health education and training support for local
churches
17 14 4 35
665
Indicate your top 5 items with stickers