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HomeMy WebLinkAbout01-18-2018 Housing and Community Development CommissionAGENDA Housing & Community Development Commission Thursday, January 18, 2018 6:30 P.M. Senior Center, Assembly Room 28 S. Linn Street, Iowa City Use the Washington Street entrance or 2" d floor skywalk via Tower Place parking garage 1) Call meeting to order 2) Approval of the November 16, 2017 minutes 3) Public comment for topics not on the agenda 4) Discuss the FY2019 Aid to Agencies funding requests and consider budget recommendation to City Council (www.icgov.org/actionplan) 5) Consider The Housing Fellowship's Request for change of use of their FY18 HOME allocation 6) Staff/commission comment 7) Adjournment If you will need disability -related accommodations to participate in this program/event, please contact Tracy Hightshoe at trace-hightshoe(c)iowa-city.org or 319.356.5230. Early requests are strongly encouraged to allow sufficient time to meet your access needs. r i^�h.®�a CITY OF IOWA CITY - MEMORANDUM Date: January 12, 2018 To: Housing and Community Development Commission From: Tracy Hightshoe, NDS Director Re: January 18, 2018 HCDC Meeting The following is a short description of the January 181h agenda items. If you have any questions about the agenda or if you are unable to attend the meeting, please contact Tracy Hightshoe at 356-5244 or by email at tracy-hightshoe@iowa-city.org as soon as possible. FY19 Aid to Agencies Funding Requests The FY19 Aid to Agency applications are available online at www.icgov.org/acitonplan. A paper copy has been mailed to those members who requested them. At this meeting, HCDC will formulate a budget recommendation to the City Council. If not already done, please have your Aid to Agency recommendations to me by 10:00 AM Tuesday, January 16. At the meeting, staff will provide a spreadsheet that identifies each HCDC member's budget and provides an average allocation for each application. This spreadsheet only serves as a guide during your deliberation process. It allows you to see if there is a consensus in funding an organization, at what level, or if discussion is needed due to a wide range of recommendations. Consider The Housing Fellowship's request to change the use of their FY18 HOME allocation of $100,000. The Housing Fellowship applied for $245,000 to acquire a parcel in the Riverfront Crossings District to build 20 affordable and 8 market rate apartments as part of a Low Income Housing Tax Credit (LIHTC) project. They were awarded $100,000 in FY18 HOME funds. The applicant has applied for LIHTCs, but does not propose to use the HOME funds if awarded LIHTC funds for this project. Applicant proposes to use these funds to acquire one property for an affordable rental home in combination with Iowa Finance Authority funds. The request is attached. HCDC has a policy for the allocation of uncommitted CDBG and HOME funds. The policy is attached. HCDC will review the policy and the applicant's request at this meeting. If HCDC approves the request, staff will initial a FY18 Annual Action Plan amendment. NOTE: The January 18, 2018 HCDC meeting will be held at the Senior Center, Assembly Room (26 S. Linn St.) at 6:30 PM. Please use the Washington St. entrance and use the elevators to the first floor. MINUTES PRELIMINARY HOUSING AND COMMUNITY DEVELOPMENT COMMISSION NOVEMBER 16, 2017-6:30 PM SENIOR CENTER, ROOM 202 MEMBERS PRESENT; Charlie Eastham, Vanessa Fixmer-Oraiz, Christine Harms, John McKinstry, Harry Olmstead, Maria Padron MEMBERS ABSENT: Syndy Conger, Bob Lamkins, Paula Vaughan STAFF PRESENT: Tracy Hightshoe OTHERS PRESENT: Sara Barron and Peggy Aguilar RECOMMENDATIONS TO CITY COUNCIL: By a vote of 6-0 the Commission recommends to City Council that rent charged is requested on the Informational Disclosure and Acknowledgement Form (in relation to getting a rental permit), the farm is available online and that language is added on the form that tenants shall receive a copy. By a vote of 6-0 the Commission recommends to City Council that the Informational Disclosure and Acknowledgement Form be available in the five languages (City's standard languages provided when translation needed) for easy download by landlords. Form available online so that website translator is available for other languages when needed. CALL MEETING TO ORDER: Olmstead called the meeting to order at 6:30 PM. APPROVAL OF THE OCTOBER 30, 2017 MINUTES: Eastham moved to approve the minutes of October 30, 2017. Harms seconded the motion. A vote was taken and the motion passed 5.0 (Padron arrived after vote). PUBLIC COMMENT FOR TOPICS NOT ON THE AGENDA: None. UPDATE ON FY18 PROJECTS WITHOUT A SIGNED AGREEMENT: Hightshoe stated there is a local policy that CDBG agreements are entered within 90 days of the start of the fiscal year. However, since the City did not have HUD agreements until two weeks ago a lot of the agencies have not entered into agreements yet so staff is working on getting those done. She noted that HOME agreements can't be entered until the recipient has identified property and staff completes the underwriting review, environmental review and market analysis. Therefore there is no one here to present this evening as agreements are just now being drafted. Eastham asked if there is now a new deadline and Hightshoe stated that there is nothing written in the City's policies regarding that, however the next check point is that 50% of the funds must be spent by March 15, The public service agreements state they're effective July 1, so all costs incurred since July 1 are eligible for that type of activity. The City did sign agreements with a Housing and Community Development Commission November 16, 2017 Page 2 of 6 couple CDBG recipient in the anticipation of the funds and that the project could proceed once bids documents were finalized. CONSIDER APPROVAL OF DRAFT FY19 CDBG AND HOME APPLICATION MATERIALS: Hightshoe stated that each year applicants apply for public facility and housing funds in January and the Commission awards funds based on the priorities decided upon by the Commission and Council in the City's Consolidated Plan (CITY STEPS). Public service applications were submitted through the United Way Joint funding process in September. The Commission will start reviewing these applications in December. The commission will make a funding recommendation for public service funds at their January meeting. Hightshoe noted that the commission raised the domestic violence priority to high (this includes counseling, outreach, etc.). DVIP has typically applied for funds for their shelter which makes it a high priority as well as for homeless services. The applications will be sent to the Commission in early December (typically available online unless you request a paper copy). Harms asked how many applications would need reviewed this year and Hightshoe replied there are about 25 applications. She reminded the Commission that the minimum applicationlaward is $15,000 for public services. Hightshoe also stated that the application materials to be approved today is just for public facilities and housing. The budget numbers are all preliminary and will change before final allocation. There is no federal budget at this time so the City does not know what will be approved. She also noted that the Commission allocated The Housing Fellowship $100,000 in FY16. While The Housing Fellowship hasn't officially turned down that allocation, they do not want the funds for the Del Rey project. They will either submit a project for consideration or that money will be added to the available FY19 funds. Staff will discuss with the THE and come back to HCDC to discuss. Olmstead asked if on the application it reflects what the Council's priorities are. Hightshoe said the priorities are listed in CITY STEPS. Eastham asked about the word "targeted" on page three of the application guide and what is the definition of target in that context. Hightshoe noted that the rules state that upon occupancy 90% of the HOME funds have to benefit people below 60% of medium income. Eastham would like to propose that the Commission change the allocation of scoring points on page five of the application. Eastham noted that this evaluation form assigns points on a number of criteria and two of the major criteria have to do with leveraging of other financial resources and the other major criteria "impact benefit" and with that criteria the first statement discusses whether primary percent of medium income persons are targeted. Eastham feels that the leveraging of resources criteria equals a total of 50 percent of the total points available to the applicant whereas the impact benefit criteria has a maximum of 20 points, only 20 percent of the total points available to the applicant. Eastham believes those two areas of criteria and points should be reversed because the impact benefit criteria looks at specifically whether or not the funds are going to be used for low income households. The leveraging resources criteria mainly looks at if some funds have been matched or leveraged in some way. McKinstry noted that it was just last year that the section on leveraging was added and the point of adding it was to encourage applicants to look for other resources and not just rely on CDBG or HOME funding. Hightshoe stated it was added specifically for the public facility projects knowing that City funds could not fund entire projects. Fixmer-Oraiz asked if instead of changing it 50120 could the change be 35/35 for both leveraging and impact benefit. Harms agreed noting that both areas are important. Eastham agreed since these two criteria do equal 70 percent of the total points, and they are both important, they could split the points between the two but he still feels personally that leveraging should be weighted less. Housing and Community Development Commission November 16, 2017 Page 3 of 6 Eastham moved to Amend CDBGlHOME Evaluation Criteria: II. Leverage Resources, reduce from 50 points to 35. Adjust 11.3 to 0-25% = 0 to 6 Points 26-50% = 7-12 Points 51-76% = 13-19 Points 76-99% = 20-25 Points AND IV. Impact/Benefit, increase points from 20 to 35 as follows: 0-30% = 25 Points 31-50% = 15 Points 51.60% = 10 Points 61-60%= 2 Point McKinstry moved to approve the application materials with the edit approved above. Harms seconded and the vote passed 5-1 (Eastman dissenting). Eastham noted he is not in favor of including the affordable housing location map in its present form as a criteria for a location for relevant affordable housing that is supported by City funds. Eastham added he has a long standing objection to this map and the criteria used construct it as it greatly limits the ability to build or acquire and rehab affordable rental units at the expense of everyone in the community who needs affordable rental units. Eastham has done a personal analysis that shows impact based on white, Hispanic and black households which is not necessarily caused by economic factors. Hightshoe noted the model was created to disburse affordable housing throughout the City. Rehab of existing rental units in any neighborhood remains eligible. Eastham understands that but does not feel that has been its effect. McKinstry added that the model has been changed in the past year to open more areas. Eastham staled it would be loosened up considerably to change the 400 foot distance variab€e to something more reasonable like 50 feet. Hightshoe said the map is meant to allow for a diversity of incomes and housing types in all neighborhoods. Eastham still fees this scheme denies people to live anywhere they want to in the community and feels it was developed without input for lower income households and specifically Hispanic and African American households. Hightshoe noted that there has not been any analysis done to show if the model has dispersed affordable (subsidized) housing in more neighborhoods, but the model has been successful at not furthering to place additional subsidized housing in areas with concentrated poverty. Eastham noted that the school district also includes Coralville and North Liberty so it is not always an accurate variable, especially at the secondary level as it relates to free and reduced lunch, a criterion factored in the model. McKinstry agrees that this topic should be revisited in the future. DISCUSS THE INFORMATIONAL DISCLOSURE AND ACKNOWLEDGEMENT FORM FOR RENTAL HOUSING PERMITS: Hightshoe noted this is an item that Eastham asked to be placed on the agenda. Eastham stated his purpose for asking the Commission to consider this item is the possibility of adding to the City's Rental Housing Permit process asking rental property owners that when they renew their rental permits that they show on their rental renewal application the rental amount they are charging for each unit. Harms asked if there was any legai precedent forbidding the City asking that information. Hightshoe stated the City legal department did have some concerns because there is nothing in the Code {health or Housing and Community Development Commission November 15, 2017 Page 4 of 6 safety reasons) tojustify including it on a rental permit. If the landlord did not provide, would the City deny solely based on the rent charged is not included. The rental amount is solely a function between the landlord and tenant, the City does not receive copy of the leases and has no way of confirming if the amount the landlord says is being charged is correct. Olmstead asked if the rental permit renewals was an annual process. Hightshoe replied that it is every other year but there are some situations where an owner is just paying the inspection fee and not filling out a new application every two years. Olmstead asked if the recycling question (the new requirement that apartment buildings have to have recycling bins) is on the application. Hightshoe said that as each permit comes due, the City enforces the recycling requirements. However the actual date of when that requirement will begin being enforced has not yet been set and Hightshoe would have to get back to the Commission on the details. Harms understands Eastham's purpose for asking for the rental amounts, the purpose is to gather data however agrees with Legal and wonders how the City could enforce that data is correct. Hightshoe added that some landlords will oppose disclosing their rental amounts because some landlords may charge different rents for maybe long term good tenants. Some tenants may not want their rent amount disclosed as well. McKinstry asked if it would become public record if it is reported to the City. Hightshoe stated that if the City asks for the data, it is then public record. Eastham pointed out that anyone that has sold or bought a house the sale information is public information collected by the Recorder's office and made available to anyone for any purpose. Harms agreed but in the case of rentals, there could be a building with four units and four different rental amounts and that could cause problems if made public. Eastham noted that the reason to get rental amounts within a community is to get a handle on where lower priced or higher priced incomes are distributed within a community and how many of each there actually are so that information can be used to improve policy decisions for what kinds of additional affordable housing is needed to be located. McKinstry agrees there is a legitimate public interest in knowing what the rents are within in the City and it could help City Staff in future housing decisions, but with no place in the Code that requires this there is also no way to require this information. Harms stated there could be a voluntary disclosure and there would have to be a lot of education on why this is needed. McKinstry noted that Eastham once said the City could just ask what the advertised rent is for the units, that would then already be public information, but that also would just be voluntary because it is not required under Code. However if the information is not verified (the City does not keep leases on file) then is the information of any use and would it be accurate. Fixmer-Oraiz noted that landlords would have no reason to lie if advertised rental amounts is already public information. McKinstry asked the Affordable Housing Coalition Board their thoughts on this agenda item and staff time was a key concern. Would the information gathered be of quality and useful enough tojustify the staff time. No one is arguing that this information wouldn't be helpful to know. Harms asked if there are other cities that have collected this information. Hightshoe was unsure. Eastham stated is unsure if other cities use the rental permitting process to obtain ongoing information about rental amounts but there are some with rental reporting requirements due to the funding mechanisms. Hightshoe stated that is only for subsidized housing, not for privately owned. Eastham agreed but noted that because it is a requirement Staff is already doing this work so it is not onerous information to gather. Housing and Community Development Commission November 16, 2017 Page 5 of 6 Hightshoe stated that Legal would have to decide if this is appropriate information to request and what language would be used if a landlord refused to disclose the information. The Commission can recommend to Council to look into rental disclosures and Council can choose whether to act on the recommendation or not. Eastham said the information gathered could be entered into a database easily (such a home sales information) and then used for many purposes. Padron agreed, it would be good to have information on rents and also in the future used to see if there is any discriminations in rentals. Olmstead feels the information gathered should be posted so the public and tenants can see the information. Eastham noted if it is in a database it can be viewed online. Harms noted that it is important that the form be available in multiple languages so the tenants know and understand what they are signing. Eastham moved to recommend to City Council that rent charged is requested on the Informational Disclosure and Acknowledgement Form (in relation to getting a rental permit), the form is available online and that language Is added on the form that tenants shall receive a copy. Padron seconded the motion and it passed 6-0. Harms moved to recommend to City Council that the Informational Disclosure and Acknowledgement Form be available in the five languages (City's standard languages provided when translation needed) for easy download by landlords. Form available online so that website translator Is available for other languages when needed. Padron seconded the motion and it passed 6-0. STAFF/COMMISSION COMMENT: Hightshoe will send via email to the Commission information on a training session for Boards and Commissions on procedures. ADJOURNMENT: Fixmer-Oraiz moved to adjourned. Harms seconded, a vote was taken and the motion passed the Fellawshi Opening the doors of Johnson County 322 E. 2nd St. Iowa City, IA 52240 Office 319-358-9212 Fax 319-358-0053 Tracy Hightshoe Housing and Community Development Commission 410 E. Washington Street Iowa City, IA 52240 RE: The Housing Fellowship $100,000 FY18 HOME allocation Dear Tracy and Commission Members: Please accept this letter as a request to allow The Housing Fellowship to use the $100,000 FY18 HOME allocation to acquire one property to be used as an affordable rental home. The Housing Fellowship received a FY16 CHDO set -aside allocation from IA HOME funds, administered by the IA Finance Authority, in the amount of $450,000 to acquire three properties. The State HOME funds require the acquired properties be less than ten years old and move -in ready. We have acquired two properties; total cost $292,849 (see attached breakdown of project funds). The State will allow a developer fee of up to $30,000 and The Housing Fellowship has agreed to a $10,000 contribution. We have received permission from the IA Finance Authority to allow a second mortgage, but IFA must be in the first security position; a private loan is not allowed. United Wny of Johnson a Washtagton Counties A search of properties on the market in Iowa City that are allowed according to the Affordable Housing Location Model and are less than 10 years old found four properties having three bedrooms, two baths ranging in asking prices of $225,000 to $235,000. If THE foregoes the developer fee a property would need to be acquired for $167,151 and there are no available newer properties on the market in that range. THE is not in a cash position to fill the gap that would be necessary to complete the project. Thank you for your consideration of this request and I will be available at your meeting on January 18 to answer any questions. Sincerely, Maryann Dennis Executive Director [Type text] THE Request for City FY18 HOME 1-18-2018 STATE HOME Allocation Acquired to date $ 450,000.00 2607 BlazinH Star 2910 Whisnerina Mp;idnw $ 148,962.63 $ 143,886.26 $ 147,224.63 $ 141,900.00 i State $ 1,738.00 $ 1,986.26 s $ 157,151.11 e $ 30,000.00 for Acquisition $ 127,151.11 $ 10,000.00 hate Project $ 137,151.11 $ 100,000.00 3st $ 237,151.11 12104 POLICY FOR ALLOCATION OF UNCOMMITTED CDBG AND HOME FUNDS (Funds that become available to the program after initial allocation either through windfall income, project cancellation or additional funds provided by HUD.) The Housing and Community Development Commission (HCDC) will determine if: 1. Existing projects that did not receive full funding will be considered. 2. Projects that had submitted applications but did not receive any CDBG or HOME funding will be considered. 3. New proposals will be considered. 4. Funds will go to the Contingency Fund If existing and/or unfunded projects are the only projects that will be considered, the applicants will be notified of the availability of funds and asked to provide a written request for funds and how they will be utilized to fund their original request. If new projects are being considered, HCDC must publish notice of funding availability and proceed with a formal application process. If funds are allocated to the Contingency Fund, no formal process is necessary other than the City Council approval. In all cases the public must be given the opportunity for comment on the proposed use of funds, either at a HCDC meeting or a Council meeting. (See Contingency Fund Use Policy for use of these funds) CONTINGENCY FUND USE POLICY The Contingency Fund can be utilized for the following purposes: a. Cost overruns of existing CDBG and HOME projects. Cost overruns of greater than $50,000 or 25% of initial project budget must be approved for eligibility by HCDC.