HomeMy WebLinkAbout01-17-2019 Housing and Community Development CommissionAgenda
Housing & Community Development
Commission (HCDC)
Thursday, January 17, 2019
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 December 20, 2018 minutes
3. Public comment of items not on the agenda
4. Monitoring Reports
• Domestic Violence Intervention Program (FY19 Aid to Agencies)
• Shelter House (FY17 Cross Park Place, FY19 A2A & Rental Acquisition)
• Prelude (FY19 Rental Rehab)
• 4Cs (FY19 Daycare Technical Assistance)
5. Update on Arthur Street Healthy Life Center Public Facility Project
6. Discuss FY2020-2021 Legacy Aid to Agencies funding requests and consider
budget recommendation to City Council
7. Overview of Housing Pro Forma Template
8. Staff/commission comment
9. Adjournment
If you will need disability -related accommodations to participate in this program or event, please
contact Kirk Lehmann at kirk-lehmann(4dowa-citv.ore or 319-356-5230. Early requests are strongly
encouraged to allow sufficient time to meet your access needs.
r
�.® CITY OF IOWA CITY
MEMORANDUM
Date: January 10, 2019
To: Housing and Community Development Commission (HCDC)
From: Neighborhood Service Staff
Re: January 17, 2019 meeting
The following is a short description of the agenda items. If you have any questions about the
agenda, or if you are unable to attend the meeting, please contact Kirk Lehmann at 319-356-
5247 or Kirk-Lehmannglowa-City.ore-
* Indicates Action Item
Item 1. Call Meeting to order
Item 2. Approval of the December 20, 2018 minutes*
Item 3. Public comment of items not on the agenda
Item 4. Monitoring Reports
We invite CDBG and HOME recipients to provide annual updates on projects. The updates
help inform the commissioners about the progress and learn about the agencies' roles serving
the community. Staff or project recipients will provide updates on the following projects:
• Domestic Violence Intervention Program (FY19 Aid to Agencies)
• Shelter House (FY17 Cross Park Place, FY19 A2A & Rental Acquisition)
• Prelude (FY19 Rental Rehab)
• 4Cs (FY19 Daycare Technical Assistance)
Item 5. Update on Arthur Street Healthy Life Center Public Facility Project
Following the Arthur Street Healthy Life Center's (HLC) review on October 11, 2018, the
HLC team agreed to provide an update to HCDC on progress towards finding additional
funding and developing a business plan at HCDC's January meeting.
Item 6. Discuss FY2020-2021 Legacy Aid to Agencies funding requests and consider
budget recommendation to City Council*
FY20-21 Legacy Aid to Agency applications are available online at www.icgov.org/
actionplan. At this meeting, HCDC will discuss Legacy A2A application and Commissioners'
individual ranking and funding recommendations. HCDC will then consider a
recommendation to City Council for FY20-21 Legacy Aid to Agencies funding totaling
$355,000, in addition to a contingency plan depending on actual funding amounts. Applicants
are strongly encouraged to attend. City Council will provide final funding allocations when
it adopts the City's Annual Action Plan.
Item 7. Overview of Housing Pro Forma Template
Staff will provide a brief overview of the housing pro forma template that will be included
with housing CDBG/HOME applications next month.
Item 8: Staff/Commission Comment
Item 9: Adjournment*
MINUTES
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
DECEMBER 20, 2018 — 6:30 PM
SENIOR CENTER, ROOM 202
PRELIMINARY
MEMBERS PRESENT: Megan Alter, Mitch Brouse, Charlie Eastham, Vanessa Fixmer-Oraiz,
Christine Harms, John McKinstry, Maria Padron and Paula Vaughan
MEMBERS ABSENT: Bob Lamkins
STAFF PRESENT: Kirk Lehmann, Erika Kubly
OTHERS PRESENT: Nicki Ross, Lauri Mitchell, Barbara Vinograde, Ellen McCabe, Kristie
Doser, Stu Mullins, Daleta Thurness, Ron Berg, Sofia Mehaffey, Christi
Regan, Adam Robinson, Crissy Canganelli, Heath Brewer, Michelle
Heinz, Chelsey Markle, Chastity Dillard, Diane Dingbaum, Susan Gray,
Genevieve Anglin, Becci Reedus, Anthony Smith, Whitney Martiago
RECOMMENDATIONS TO CITY COUNCIL:
By a vote of 7-0 the Commission recommends approval of the FY18 Annual Action Plan Amendment #4.
By a vote of 8-0 the Commission recommends City Council a letter regarding additional funding for NEX
Apartments Low Income Housing Tax Credit Project, with changes as discussed in the meeting.
CALL MEETING TO ORDER:
Vaughan called the meeting to order at 6:30 PM.
APPROVAL OF THE NOVEMBER 15, 2018 MINUTES:
Eastham moved to approve the minutes of November 15, 2018, with changes as discussed in the
meeting. McKinstry seconded. A vote was taken and the motion passed 7-0 (Padron not present for
vote).
PUBLIC COMMENT FOR TOPICS NOT ON THE AGENDA:
None.
REVIEW AND CONSIDER RECOMMENDATION TO CITY COUNCIL ON APPROVAL OF FY18
ANNUAL ACTION PLAN AMENDMENT #4
Lehmann noted the Commission has the resolution and exhibit explaining the amendment. As discussed
at the last meeting, Little Creations discovered many of their items costed more than expected when they
went out to bid, so the original budget of $73,000 was not enough to complete their original scope of
work. Little Creations would need approximately $110,000 to complete the project's original scope of work
(specifically $109,141). Pastor Anthony Smith came before the Commission and requested a substantial
amendment, and because the request was more than 25% of the original budget, the Commission must
evaluate and make a recommendation on the amendment, after which it must go to Council for their
approval. This substantial amendment before the Commission will allow Little Creations to complete the
rest of the scope of work as stated in the original agreement, including new windows, room dividers and
Housing and Community Development Commission
December 20, 2018
Page 2 of 6
an outdoor storage shed. Lehmann noted the original agreement states it will serve 15 low to moderate
income children, but that is being increased to 20 children because of the increased funding. The City
has not received any comments regarding the resolution to date, it was sent out to other CDBG recipients
because it was for use of uncommitted funds so recipients get an opportunity to provide alternative uses
for those funds; no alternative proposals were received. Lehmann noted Little Creations has recently
experienced some turnover in staff and children, but new staff have been hired and the facility is currently
on track to meet the obligations stated in its agreement regarding the number of children.
Eastham moved to recommend to City Council approval of the FY18 Annual Action Plan
Amendment #4. McKinstry seconded the motion, a vote was taken and it passed 7-0 (Padron not
present for the vote)-
QUESTION/ANSWER SESSION FOR FY20-21 LEGACY AID TO AGENCIES APPLICATIONS
Vaughan thanked all the agency partners that were present this evening and being available to answer
extra questions.
Lehmann noted that in addition to the direct responses to questions from the Commission there was also
two additional comments. One was with regards to Arc requesting a new category, which was included in
the Commission packet, and the other comment was from the Free Medical Clinic. Lehmann also
included the census population estimates for populations 60 and over and for Iowa it is 97% white, for
Johnson County it is over 96% white and in Iowa City it is 94%. African American and Hispanic Latino
were the other two populations specifically mentioned and they are 1% in Iowa, 1% in Johnson County
and 2% for Iowa City each.
Eastham noted that data shows the minority population in Iowa City is about 8.5% and he will keep that in
mind when looking at the agency requests.
Vaughan stated that at the last meeting the Commission decided to prioritize the project based on what
the money was being requested for, not the overall mission of the agency.
Vaughan has one question for Prelude with regards to the numbers they filled in on their chart and asked
for clarification.
Ron Berg (Prelude) explained the chart shows the income range and the number of patients at each
income range and overall percentage of patients at each income level.
Vaughan questioned the RVAP amount of restricted funds and if it is just not separated out in the budget.
Adam Robinson (RVAP) confirmed the budged provided is collective and noted the majority of the funds
are restricted.
Brouse asked UAY if they were using the majority, if not all, of the requested money to match other
programs and if UAY does not get the full request will it hurt the changes for the matching funds.
Genevieve Anglin (UAY) confirmed it would affect their ability to receive the matching funds and UAY will
have to go into debt to match those funds otherwise.
Vaughan noted for the Neighborhood Centers, the request was to use 2018 data and they used 2017
data so she is wondering if they have 2018 data on the question regarding leveraging of funds.
Chastity Dillard (Neighborhood Centers) said they would have some numbers for FY18 and can get them
to the Commission but noted they would be very similar to the FY17 numbers.
Harms has a question for Pathways regarding the added explanation there is a question about adult
daycare for clients from assisted living listed and is wondering if they could state what percentage of
Housing and Community Development Commission
December 20, 2018
Page 3 of 6
clients come from assisted living
Sofia Mehaffev (Pathways) noted not a lot of clients come from assisted living, maybe just three or four,
the majority of the clients are coming from a group home setting or private homes.
Brouse asked about Pathway's financial charts and why the carryover funds did not carryover. Mehaffey
replied those fields auto populated and could not figure out how to edit.
Eastham asked if Arc's question of priorities could be discussed at this point of the agenda. Vaughan said
it was decided at the last meeting the priorities would be decided on project and not agency mission for
this funding cycle.
Brouse questioned The Housing Trust Fund requesting funds for operational costs.
Ellen McCabe The Housing Trust Fund) said it was their understanding this funding of Aid to Agencies
was for operating costs and can be used for the match from the Iowa Finance Authority.
Fixmer-Oraiz asked if any of the agency partners had questions for the Commission or thoughts on the
application process. Vaughan said they can send those questions comments to City Staff as well.
One audience member noted that when the Commission asks about restricted funds, it can mean
different things to difference agencies. For one it can mean anything that is restricted in one way or
another, like a grant, however to an auditor it means something else.
Another member also noted issues with the auto populated fields. Lehmann asked if those issues had
been seen in the past and if the agency was using the same software as in the past. It was noted the
United Way form can be touchy and not user friendly.
Eastham asked if the information provided was reliable enough for HCDC to make funding decisions
given these complications.
Lehmann said any of the applicants should review their applications and any agency who felt their
information was not presented how they wished on the application could send him an email to explain
what they want the Commission to know.
CONSIDER RECOMMENDATION TO CITY COUNCIL ON A LETTER REGARDING ADDITIONAL
FUNDING FOR NEX APARTMENTS LOW INCOME HOUSING TAX CREDIT PROJECT:
Eastham shared some proposed changes to the letter and passed them out to the other Commissioners
He noted he listened to the Council's discussion of this idea at the last meeting and reread the transcript
and wouldn't characterize the Council's discussion in anyway as a consideration of the HCDC
recommendation, it was a discussion and therefore would like the Commission to move forward with a
letter to the Council. His edit changed to the wording in the letter to indicate HCDC did not think that
Council considered this matter.
Alter noted in the second paragraph if we are saying it has not yet been considered, then the tense
should not be in the past. It should not read HCDC "hoped to add" more units but rather that HCDC
"hopes to add
Eastham stated his proposed changes specifically state "while providing additional funds" change
"reconsider" to "consider' and remove the last phrase "hopes you will reconsider'- The last sentence
should read "HCDC feels this is an important request
Brouse feels before they vote, perhaps they need to hear what the benefit of the additional funds will be.
Kubly noted the developer provided a scenario for Council to consider, that it is not a final proposal, but it
shows if the developer were to receive $200,000 in additional funding, then they could provide additional
Housing and Community Development Commission
December 20, 2018
Page 4 of 6
low-income housing. They based their request off their proforma and are trying to maintain a debt
coverage ratio of 1.15 in year one. The proposal states they could have four additional units at different
bedroom sizes (one two -bedroom, two three -bedroom and one one -bedroom units at 30% and 40% of the
area income medium) with rents of $450 per month for an additional $200,000 in assistance from the City.
On the proforma, the rents would increase annually projecting a 2% increase in revenue and 3% increase
in expenses. She also noted the difference in rents it would provide. Brouse asked if the current rents
are market rate, Kubly said those would be the rents Iowa Finance Authority requires for the tax credit
program. Lehmann noted based on those numbers the developer proposed the period of reduced
affordability would be for the period of the City loan which is 17 years. Eastham said that is a negotiable
term. Lehmann agreed noting this was just a starting point and it would be up to Council to negotiate the
terms. Eastham said it should not be up to Council but rather for Council to decide on a recommendation
and he feels the Council should consider this recommendation and ask Staff and HCDC to give a
complete recommendation after HCDC sits with the developer and review their numbers and options.
Brouse asked how many affordable units were in the original proposal. Eastham said there were 32
affordable units and 4 at market rate. Affordable is defined as being 30% of a household's income at
differing percentages of the area median income.
Eastham commented that after reading the transcript from the Council's work session where this was
discussed, it is still perplexing to him how a conclusion can be drawn from their discussion that Council
actually considered the Commission's recommendation. He also wondered why the Commission had to
come back and discuss this more and how whoever reached this conclusion could interpret Council's
discussion as considering this proposal and deciding not to provide any additional funding.
Lehmann stated this letter will be submitted to the following week's City Council packet, they will have to
decide if they want to discuss further either at a work session or to be placed on an agenda.
Fixmer-Oraiz asked if it was normal to have Council to have HCDC and the developer iron out the details
of a proposal or is that something they should suggest as the outcome of the consideration. Kubly said
typically those types of negotiations are done at the staff level, so if there is something specific HCDC
wants to participate in it should be included in the memo so Council can give direction. Eastham felt it
should be added to the memo, Alter agreed. An additional line was added to the memo stating HCDC
"would like to be further involved in the process."
Eastham noted he is actively negotiating working with Council members on this item and will continue that
work.
Alter moved to recommend to City Council a letter regarding additional funding for NEX
Apartments Low Income Housing Tax Credit Project, with changes as discussed in the meeting.
Eastham seconded the motion, a vote was taken and motion passed 8.0.
STAFF/COMMISSION COMMENT
Lehmann noted the next meeting is January 17. At that meeting the Arthur Street Healthy Living will give
an update, there will be a few other monitoring reports, there will be a review of the basics of proformas
as well as the Aid to Agencies recommendations. Lehmann requested the Commissioners complete their
funding and ranking sheets and get them to him by January 3 it would be ideal. Lehmann reminded
everyone the goal of the process is to carry out the City Steps Plan so that should be the guidance for
awards and also in the upcoming year they will begin to look at any need for changes in priorities in the
City Steps Plan.
Lehmann stated they are putting together the RFP (request for proposal) for the Consolidated Plan,
hoping to have it out in January and begin work early next year.
The CDBG/HOME and Emerging Agency applications are out currently, they will close on January 18.
One work session for CDBG/HOME is scheduled for January 3 at 1 lam at City Hall and an optional
Housing and Community Development Commission
December 20, 2018
Page 5 of 6
session on January 10. For Emerging Agency they have set up three sets of office hours, 9-11am on
January 2, 4 and 8 for help with applications.
There is a Social Justice and Racial Equity Grant application also open at this time, please spread the
word. The grant is for $75,000. The application closes January 2.
Lehmann next gave an update on the transit study, the City has received statements of qualifications from
interested consultants, and they will review the proposals and narrow down the selections. Once a
consultant is chosen he will request they come speak to HCDC.
Lehmann noted a policy clarification, there was a question of joining a board of an agency the City funds
and to avoid conflicts of interest if a member of HCDC serves on a board for an agency it must be
disclosed and the person must recuse themselves from all discussion and voting for any funding rounds
that agency is part of. For CDBG and HOME it also includes the following year after one quits a board.
Lehmann asked what boards current HCDC members serve currently or in the last year.
McKinstry and Eastham are on the Affordable Housing Coalition Board and they do receive funds from
The Housing Trust Fund. McCabe noted The Housing Trust Fund gives $5,000 per year to the Affordable
Housing Coalition Board but those funds come from a number of sources and they do not directly track
them. Lehmann said in that case then it should be okay because those funds are directed from The
Housing Trust Fund and not the City.
Padron noted she was on the library board, but resigned as it was too much, but they do have some
programs they were working on with the Neighborhood Centers. Lehmann said that may be indirect, but
will ask the City Attorney about both situations. Padron is also on the Summer of the Arts board.
Alter said she volunteers with the South District Neighborhood Association as a citizen member, but this
association would like to get a mural so they are interested in applying for the equity grant, can she help
write the proposal. Lehmann said she can because HCDC has no control over the granting of those
funds.
Alter is on a couple boards but not located in Iowa City and do not receive any Iowa City funds.
Vaughan is on the League of Women Voters of Johnson County.
Harms and Brouse are not on any boards.
Eastham is also on the board of the Center for Worker Justice and was a member of the board of Little
Creations Academy but resigned over a year ago.
Lehmann noted The Housing Trust Fund currently has their open funding round which closes January
11 rh.
Eastham asked if the City has acquired any land in the land banking program that would be relevant as
they go into the CDBG/HOME funding cycle. Lehmann has no answer to that question.
ADJOURNMENT
Brouse moved to adjourn. Fixmer-Oraiz seconded. Passed 8-0
Housing and Community Development Commission
December 20, 2018
Page 6 of 6
Housing and Community
Development Commission
Attendance Record
Name
Terms Exp.
7/10
9/20
10/11
11/15
12/20
Alter, Megan
7/1/21
X
X
X
X
X
Brouse, Mitch
7/1/21
X
X
X
X
X
Eastham, Charlie
7/1/20
X
X
X
X
X
Fixmer-Oraiz, Vanessa
7/1/20
X
O/E
X
X
X
Harms, Christine
7/1/19
X
X
X
X
X
Lamkins, Bob
7/1/19
O/E
O/E
X
O/E
O/E
McKinstry, John
7/1/17
X
X
X
X
X
Padron, Maria
7/1/20
X
X
O/E
O/E
X
Vaughan, Paula
7/1/19
X
X
X
X
X
• Resigned from Commission
Key--
X = Present
O = Absent
O/E = Absent/Excused
--- = Vacant
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Kirk Lehmann
From: Ronda Lipsius <icfreelunch@gmail.com>
Sent: Monday, January 07, 2019 9:56 AM
To: Kirk Lehmann
Subject: Re: Legacy A2A Question
Kirk,
Jama and I are Co- Directors for Free Lunch.
I am the Administrative Director and get paid for 10 hours per week. My duties are all financial, grant apps, meetings,
attend events, create thank you letters, prep materials for board meetings, contracts with hacap, united way, city of la
City etc. I am receiving the standard 2% cost of living raise.
Jama is the meal and volunteer Director. She oversees all volunteers, open serving day meals, the kitchen and pantry.
Jama's hours per week have been raised per week. She may be getting 20 hours per week this year- I can't say for sure -
it's a personnel thing. I only oversee the custodial for personnel things. Jama is receiving a 2% cost of living raise as well.
The difference is the number of hours Jama has been increased this year. Rest assured we aren't receiving huge raises!
We both have to have other jobs to sustain our living-jama part time and me full time.
Let me know if there are other questions,
Ronda
Sent from my iPhone
On Jan 7, 2019, at 8:07 AM, Kirk Lehmann <Kirk-Lehmannpiowa-city.org> wrote:
Hello Ronda,
I received one more question from an HCDC Commissioner regarding your Legacy A2A application. It
was noticed that the Executive Director got a salary increase of 28.75%. Could you please elaborate on
the salary difference from FY18 to FY19?
Let me know if you have any questions.
Thanks,
<image001.png>
Kirk Lehmann
Community Development Planner
<image002.png><image003.png><image004.png><image005.png> Office:319-356-5247
410 E Washington St
Iowa City, IA 52240
Disclaimer
The information contained in this communication from the sender is confidential. It is intended solely for use by the
recipient and others authorized to receive it. If you are not the recipient, you are hereby notified that any
disclosure, copying, distribution or taking action in relation of the contents of this information is strictly prohibited
and may be unlawful.
Kirk Lehmann
From: Kirk Lehmann
Sent: Wednesday, January 02, 2019 11:40 AM
To: 'becci.reedus@jccrisiscenter.org'
Subject: Legacy A2A Question
Hey Becci,
I received one more question from an HCDC Commissioner regarding your Legacy A2A application:
[The Commissioner] compared this year's salaries with last year's using the data the agency provided. The
Executive Director got a salary increase of almost 15% (14.83% increase, from $82.139 to $94,350), and the
Director of Development got a salary increase of almost 20% (19.92%). The ED is listed as the same person[, but
not sure] if the DofD is a new hire or the same person from last year. The rest of the positions show much smaller
salary increases (1% or 2%).
Could you please elaborate on the salary differences from FY18 to FY19?
Thanks,
CITY OF IOWA C171r Kirk Lehmann
Jt1ES000TY()F UTTR TtAL Community Development Planner
Office: 319-356-5247
o o 410 E Washington St
Iowa City, IA 52240
rVN
the Crisis Center
your first call m Johnson county
January 9. 2019
Kirk Lehmann
The Crisis Center of Johnson County
1121 Gilbert Ct
Iowa City IA 52240-4528
www.jccrisiscenter.org
Community Development Planner
Iowa City, IA 52240
Kirk, I am responding to the questions asked by a commissioner:
24 Hour Crisis Line (319) 351-0140
Food Bank (319) 351-0128
Business Line (319) 351-2726
Fax (319) 351-4671
[The Commissioner] compared this year's salaries with last year's using the data the agency
provided. The Executive Director got a salary increase of almost 15% (14.83% increase, from
$82,139 to $94,350), and the Director of Development got a salary increase of almost 20% (19.92%).
The ED is listed as the same person [but not sure] if the DoO is a new hire or the same person from
last year. The rest of the positions show much smaller salary increases (1 % or 2516).
The Executive Director got a salary increase of almost 15% (14.83% increase, from $82,139 to
$94, 350)
1 am including a copy of our policy for executive compensation. I do not have input into setting my
salary and feel that it is very inappropriate for the HCDC to ask me to defend it. I did not receive a
15% increase in one year. In June 2017, the board chair had neglected to review the executive
director compensation and therefore, my compensation review was postponed for three months. The
joint funding request was due August 17, 2017 and the compensation for Executive Director was
voted on at the August 24, 2017 meeting. So the interpretation and subsequent communication of
the data from the chart was wrong.
The Director of Development got a salary increase of almost 20% (19.92%). The ED is listed as the
same person [but not sure] if the DofD is a new hire or the same person from last year
I review all salaries and may increase all salaries for a number of reasons such as performance,
survey of salaries of other positions in our community, increased job responsibilities due to funding
requirements; and even sometimes to retain employment of a valued employee. The position in
question received increases because of a base increase, bonus and annual increase in salary.
The rest of the positions show much smaller salary increases (1 % or 2%).
The conclusions drawn and reported through this question were completely false. The data collection
for this chart is not recorded in a way to draw conclusions as to salary increases as turnover is not
reflected in the chart.
I have been extremely proud of my administration of our salary program at the Crisis Center. I
formalized the salary schedule for hiring which compensates individuals with experience and allows
us to be competitive in our community for talent and experience. We have steadily increased our
base rate for those employees we employ to answer our crisis line, text and chats. When Johnson
County raised minimum wage to $10.10 an hour, we raised from $10.00 to $10.50. In July 2018, we
raised the base rate to $12.50/hour. In addition to raising the base rate by 19% increase, this group
rVN
the Crisis Center
your first ca It in Johnson county
The Crisis Center of Johnson County
1121 Gilbert Ct
Iowa City IA 52240-4528
www.jccrisiscenter.org
24 Hour Crisis Line (319) 351-0140
Food Bank (319) 351-0128
Business Line (319) 351-2726
Fax (319) 351-4671
of employees also received a 2% cost of living increase. Someone coming in at the base making
10.50/hour was raised to $12.75/hour with the base increase and cost of living adjustment which is a
22% increase. It is my intent to raise our direct service worker base rate to $15.00/hour by July 2020.
Program coordinator level staff in our agency received base increases of $2,080 per year in addition
to a 2% cost of living increase. Someone working at the base level of pay for a coordinators position
received an 8% increase.
Kirk, would you please see that I get documentation from the commission in how this information
gathered from my agency, but not the others, will be used in the ranking and decision making process
for funding.
I would like to be present at the meeting where this information is discussed. Please let me know
when that meeting will be held.
Becci Reedus
Executive Director
The Crisis Center of Johnson County
the Crisis Center 1121 Gilbert Court *Iowa City, IA 52240.(319) 351-2726
POLICY: 02.06.00.00 Executive Compensation Policy
PURPOSE: To assure the Crisis Center of Johnson County retains high quality executive
leadership by identifying compensation that is reasonable and not excessive, and also attractive
enough to retain the best possible talent to lead the organization.
POLICY: It is the policy of the Board of Directors that the compensation of the Executive
Director shall be reviewed and established on an annual basis. The Board shall review and
approve executive compensation, after a review of comparability data or other evidence that
compensation is reasonable.
A. The Executive Committee of the board is authorized to make recommendations to
the Board regarding Executive Director compensation which may include bonuses
based on performance. Executive Director bonuses in any fiscal year shall not
exceed 5% of that person's salary for that fiscal year.
B. The Executive Committee shall document who was involved in the process; that
members were free from conflict and the process used to conduct the review. The
documentation should demonstrate that the Executive Committee took the
comparable data into consideration when it recommended the compensation
C. The board shall document how it reached its decisions, including the data on which it
relied, in minutes of the meeting during which the compensation was approved.
Documentation will include:
a) A description of the compensation and benefits and the date it was approved;
b) The members of the board who were present during the discussion about compensation and
benefits, and the results of the vote;
c) A description of the comparability data relied upon and how the data was obtained; and
d) Any actions taken (such as abstaining from discussion and vote) with respect to
consideration of the compensation by anyone who is otherwise a member of the board but
who had a conflict of interest with respect to the decision on the compensation and benefits.
Approved: 06/18
New Form: 08/2009 Page 1
PROFORMA SPREAD SHEET
Instructions for Completing This Attachment
The Housing Application, as in the past, requires the developers of rental housing projects to complete and submit a
proforma for the project being proposed. The purpose of this proforma is to help the Housing and Community
Development Commission (HCDC) and staff to make informed decisions on the allocation of local HOME Investment
Partnership and/or Community Development Block Grant funding.
All applicants for rental housing (including rehabilitation projects) are required to complete the attached proforma.
This form will provide HCDC with the needed information in a format that is uniform among all applicants. The
following are instructions for completing this form and some basic "rules of thumb" for your consideration. This form
allows for up to 20 years of information.
If you have any questions about the form or need technical assistance please call Community Development staff at
356-5230. "'Fields shown in "grey" are for number entry when using the excel spreadsheet"'
Revenues [After YR 1 a rent escalator of 2% is calculated in the spreadsheet which is consistent with the Fair Market
Rent WMRI increases for Iowa City]
Line 1 Gross Rent: Is the total amount of rent generated from the housing units, based on proposed rent
levels (proposed rents may be less than FMRs but cannot exceed FMRs).
Line 2 Other Income: Include laundry income, application or pet fees, and interest income.
Line 3 Tenant Contributions: Include other payments such as rent for parking or storage space.
Line 4 Gross Income: Is the sum of Lines 1 through 3.
Line 5 Vacancy Loss: Line 1 multiplied by 5%.
Line 6 Effective Gross Income: Line 4 minus Line 5.
Operating Expenses [An inflation escalator of 3% is calculated in the spreadsheet]
Line 7 Operating Expenses: Estimated insurance expense (estimate from an agent).
Line 8 Operating Expenses: Repairs and Replacements ($230 - $390 per unit depending on
building age).
Line 9 Operating Expenses: Management Fee (usually 5 — 7% of Gross Rent). May not exceed 10% of
Gross Rent.
Line 10 Operating Expenses: Miscellaneous Expenses (legal, accounting, advertising, water\sewer, etc.).
The total of lines #7-10 shall be no less than $2,850/unit.
Line 11 Operating Expenses: Property Taxes (estimate may be obtained from the City Assessor's Office).
Line 12 Operating Expenses: Reserves. Operating reserve no less than $350/unit. If new
construction, include a rent -up reserve for Year 1 of gross monthly rent for all units x 3
months)
Line 13 Total Operating Expenses: Is the sum of Lines 7 through 12.
Net Operating Income
Line 14 Net Operating Income: Is Line 6 minus Line 13.
Debt Service [list mortgage payments for principal and interest only]
Line 15 Debt Service for V Mortgage.
Line 16 Debt Service for 2' Mortgage(s) (include the total payments for all junior mortgages on this
line).
Line 17 Total Debt Service: Is the sum of Lines 15 and 16 (should not be less than 87% of Line 14).
Cash Flow Available for Distribution
Line 18 Cash Flow: Equals Line 14 minus Line 17.
Equity Investment
Line 18B is the amount of funds being invested in the project by the project developer\sponsor. This does not
include the equity raised through the sale of Low Income Housing Tax Credits as they are accounted for on
Line 33.
Cash on Cash Return on Investment [shows return to developer or investors on their equity contribution
before taxes or tax credits are included]
Line 19 Cash on Cash ROI: Equals Line 18 divided by equity investment as shown on the application.
Debt Coverage Ratio
Debt Coverage Ratio (DCR): ratio of estimated net operating income to debt service. Line 14 divided by line
17. After year 3, DCR shall be no less than 1.20 during the affordability period. Encourage 1.20-1.50.
Determining Taxes
Line 20 Cash Flow: Carry over the figure from Line 18.
Line 21 Depreciation Expenses: Annual depreciation of property (27.5 year straight-line schedule).
Line 22 Amortization of Fees: Annual amortization of project fees (15-year straight-line schedule).
Line 23 Principal Payments: Calculate the amount of principal paid on all loans for each year.
Line 24 Reserves: Carry over the figure from Line 12.
Earnings (Loss) Before Taxes
Taxes
Line 25 Earnings Before Tax: Equals (Line 20 minus Lines 21 and 22) plus Lines 23 and 24.
Line 26 Tax Rate: Use a 35% tax rate on for -profit organizations and non -profits use 0%.
Line 27 Taxes Incurred (Saved): Equals Line 25 multiplied by Line 26.
Cash Flow After -Tax
Line 28 Cash Flow: Carry over figure from Line 20.
Line 29 Taxes Incurred (Saved): Carry over figure from Line 27.
Line 30 Cash Flow After-tax: Equals Line 28 minus Line 29.
Total Bene£t Analysis
Line 31 Cash Flow After-tax: Carry over figure from Line 30.
Line 32 Rehabilitation Tax Credits: Calculate full value of rehab tax credits.
Line 33 Low Income Housing Tax Credits: Calculate full value of LIHTC annually for each of the 1 �,10
years.
Line 34 Net Sale Proceeds: In year 20, calculate the estimated future market value of the property by
taking the total cost of the project as presented in this application and compound it by 2% for each
year. Place this amount on line 34.
Line 35 Net Cash Flow After-tax: Equals the sum of Lines 31 through 34.
Line 36 Return on Investment: Equals the Net Cash Flow After Tax divided by the Equity Investment.
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