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HomeMy WebLinkAbout02-21-2019 Housing and Community Development CommissionAgenda Housing & Community Development Commission (HCDC) Thursday, February 21, 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 Call meeting to order 2. Approval of the January 17, 2019 minutes 3. Public comment of items not on the agenda 4. Monitoring Reports • The Housing Fellowship (FY17, FY18, and FY19 Rental Rehab, FY19 Rental Acquisition, and FY19 CHDO Operating) • Habitat for Humanity (FY17 Acquisition on N. Governor, FY18 Acquisition at 2629 Blazing Star, and FY19 Acquisitions at 2764-2774 Blazing Star) • Mayor's Youth Empowerment Program (FY19 Acquisition) 5. Question/answer session for FY2020 Emerging Aid to Agencies applications — available online at www.icgov.org/actionplan 6. Question/answer session for FY2020 Community Development Block Grant (CDBG) and HOME Investment Partnership Program (HOME) applications — available online at www.icgov.org/actionplan 7. Staff/commission comment 8. Adjournment If you will need disability -related accommodations to participate in this program or event, please contact Kirk Lehmann at kirk-lehmarm(4dowa-city.org 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: February 14, 2019 To: Housing and Community Development Commission (HCDC) From: Neighborhood Service Staff Re: February 21, 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-Lehmann@Iowa-City.ore. * Indicates Action Item Item 1. Call Meeting to order Item 2. Approval of the January 17, 2019 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: The Housing Fellowship (FY17, FY18, and FY19 Rental Rehab, FY19 Rental Acquisition, and FY19 CHDO Operating) Habitat for Humanity (FY17 Acquisition on N. Governor, FY18 Acquisition at 2629 Blazing Star, and FY19 Acquisitions at 2764-2774 Blazing Star) Mayor's Youth Empowerment Program (FY19 Acquisition) Item 5. Question/answer session for FY2020 Emerging Aid to Agencies applications Applications can be found online at www.iceov.ore/actionnlan. At this meeting, HCDC will host a question and answer session with applicants. Applicants are strongly encouraged to send a representative to answer any questions. No action will be taken. HCDC's funding recommendations for Council will be made next meeting (March 21). Item 6. Question/answer session for FY2020 Community Development Block Grant (CDBG) and HOME Investment Partnership Program (HOME) applications Applications can be found online at www.iceov.ore/actionnlan. At this meeting, HCDC will host a question and answer session with applicants. Ranking sheets should help guide any questions, and applicants are strongly encouraged to attend. Applicants have also been instructed that this session is not for them to provide an agency presentation, simply to answer HCDC's questions concerning their application. Applicants are instructed not to submit additional documents at this meeting. If HCDC requests additional information, the applicant will submit the requested item and staff send it to all members to ensure everyone has the same information. Funding recommendations and finalized rankings will be due on March 7. No action will be taken. HCDC's funding recommendations for Council will be made next meeting (March 21). Item 8: Staff/Commission Comment Item 9: Adjournment* MINUTES HOUSING AND COMMUNITY DEVELOPMENT COMMISSION JANUARY 17, 2019 — 6:30 PM SENIOR CENTER, ASSEMBLY ROOM PRELIMINARY MEMBERS PRESENT: Megan Alter, Mitch Brouse, Charlie Eastham, Christine Harms, John McKinstry, Maria Padron and Paula Vaughan MEMBERS ABSENT: Vanessa Fixmer-Oraiz STAFF PRESENT: Kirk Lehmann, Enka Kubly OTHERS PRESENT: Kristie Doser, Lauri Mitchell, Christi Regan, Ellen McCabe, Sara Barron, Barbara Vinograde, Susan Gray, Ron Berg, Brian Loring, Becci Reedus, Genevieve Anglin, Mark Sertterh, Jamie Kearney, Jenny Winegarden, Nicki Ross, Sara Barron RECOMMENDATIONS TO CITY COUNCIL: By a vote of 7-0 the Commission recommends to City Council funding the full requested amount of Legacy Aid to Agencies applications as shown below for FY20 and FY21, and that Council invite HCDC to discuss this recommendation at their soonest available work session. Agency Request 4 Cs Community Coordinated Child Care $20,000 Arc of Southeast Iowa $20,000 Big Brothers Big Sisters of Johnson County $25,000 Crisis Center of Johnson County $66,000 Domestic Violence Intervention Program $50,000 Elder Services Inc. $40,000 Free Lunch Program $16,000 HACAP $25,000 Housing Trust Fund of Johnson County (HTFJC) $30,000 Inside Out Reentry Community $30,000 Iowa City Free Medical Clinic/Dick Parrott Free Dental Clinic $17,500 Iowa Valley Habitat for Humanity $25,000 Neighborhood Centers of Johnson County $55,000 Pathways Adult Day Health Center/ Aging Services, Inc. $25,000 Prelude Behavioral Services $20,000 Rape Victim Advocacy Program $23,000 Shelter House $85,000 Table to Table $20,000 United Action for Youth $33,000 Total $625,500 Housing and Community Development Commission January 17, 2019 Page 2 of 12 CALL MEETING TO ORDER: Vaughan called the meeting to order at 6:30 PM. APPROVAL OF THE DECEMBER 20, 2018 MINUTES: McKinstry noted that Eastham is active member of the Johnson County Affordable Housing Coalition but not a member of the Board as listed on page 5. Eastham moved to approve the minutes of December 20, 2018, with correction. McKinstry seconded. A vote was taken and the motion passed 7-0. 01:114[d*L4h41=1 L,Yd7d:i[e7;j[440Njd1dL,00:I=W=1 L,IBL1 Becci Reedus (Crisis Center) appreciates the effort of the Commission as this is her 101h year of application cycles. In those 10 years the allocation from the Crisis Center has gone from $40,000 to $39,000 and hasn't seen any increases. In 2008, pre -flood numbers for food services at the Crisis Center was about 32,000 for the year and this year they will see about 54,000 to 55,000 and the $40,000 allocation is slipping in terms of its impact for the agency. Reedus noted that each agency could talk about how the impact and the dollars received is not growing and that is concerning. Reedus noted she sits on the steering committee for the Access Center and greatly supports it but is concerned by the number of dollars that is being considered for its support. For example, the City is proposing to raise the utility tax to support the Access Center but Reedus wonders why the City cannot raise the utility tax to support nonprofits in the community. She attended Council's budget work session and asked some councilors if they get requests for increased nonprofit funding and the answer was no. There was no information in the budget workshop information that indicated there was communication at all from this Commission to City Council to alert them nonprofits are falling behind. Reedus has seen the growth in the budget and city population, and is concerned that with that growth comes more problems, more people that need to be fed each year, and more people relying solely on the food bank forfood. Other issues the City talked about were the closing of Proctor & Gamble which also concerns the Crisis Center. There is not a lot of corporate support in Iowa City, there are not a lot of big foundations to turn to, and nonprofits trying to increase their budgets are doing so using development staff who need to be paid well. Reedus feels this Commission could help nonprofits advocate to City Council for additional money each year. Council even talked about a local option sales tax which Reedus supports, but Council is not talking about any of that additional income going towards nonprofit funding. Nonprofits address needs that exist in the community, they do not create the need, and without addressing the need, problems will be even greater in this community. She thinks the Commission needs to address this with City Council. Vaughan thanked Reedus for her comments and asked Staff to put this item on next month's agenda. Sara Barron (The Johnson County Affordable Housing Coalition) will be resuming their community meetings on the fourth Friday of every month presenting housing topics of interest to people. The topic in January will be Habitat for Humanity sharing initiatives they are working on as well as talking about the new interfaith committee that they are developing. The meeting is at noon on Friday, January 25 at the Johnson County Health and Human Services Building. hrdd�lY[�]:11RH:1�1�73� Kristie Doser reported on the Domestic Violence Intervention Program (FY19 Aid to Agencies). She noted CDBG and Aid to Agencies funding supports their shelter services, specifically staffing so they can have additional support for individuals staying in the shelter. She shared a couple of stats on shelter services for FY18, they housed 298 individuals and children in the shelter (pretty much a 50/50 split on adults and Housing and Community Development Commission January 17, 2019 Page 3 of 12 children), they are full 100% of the time and therefore also sheltered 72 adults and children in hotels for short periods until space opened in the shelter. Doser noted they had 170 families that contacted them that they were not able to house when needed and therefore had to negotiate with those families about their safety, and work on options with them on how to respond to their situation. Doser noted that about five years ago services for domestic violence and sexual violence in Iowa was restructured, which reduced domestic violence shelters from 26 to 8 in the entire state. Therefore, CDBG money is incredibly important and allows DVIP to do support services for victims such as support groups, counseling, and advocacy in court and help victims work with DHS and other systems within the community. Doser noted they are looking to expand nights of safety services, last year they served 13,030 nights (meaning for every person that stayed at the shelter, they calculated how many nights they stayed there), which is higher, meaning the average length of stay in shelter is growing, which relates to resources that are or aren't available. The average night length of stay has been as low as 21 nights per family to the current average of 26 nights. That means they lose resources in the community, or housing is difficult to find, so they stay in shelter longer and fewer people can get in. The 170 families not able to get in would have equated to 4,470 nights needed. Doser gave an example of how devastating domestic violence is and how much a dollar can leverage. When people think of domestic violence, the first question is "why did they stay She says the question is what would it take for a person to remain safe from the one person that knows everything about them including their home (does the partner have access to it), the children, the car, money, the job, etc. For domestic violence, perpetrators have more leverage than most criminals, so the amount of impact they can have on a victim's life is tremendous. On average, perpetrators will stalk their partners for 21 months, that is almost two years of harassment that affect yourjob, children, school, etc. These services are immediate and urgent and that is why the funds are so important to DVIP. Eastham asked to see what a fully funded DVIP program would look like in the future. Doser said she would be happy to have that conversation. Eastham stated he has heard a major issue is placing people from DVIP into housing and wonders what types of available housing are needed. Doser noted their services are in no way comprehensive, they are crisis intervention solely and the care and healing they must give to the victims and how to support them moving forward. Mark Sertterh reported for Shelter House (FY17 Cross Park Place, FY19 A2A & Rental Acquisition). He began with the Cross Park Place project which funded land acquisition for the new facility at 820 Cross Park Place. It just held its open house and will have 24 units of permanent housing for the chronically homeless. The land was purchased in April 2016 and individuals should be able to move in at the end of this month. With FY19 Rental Acquisition funds, they are looking to purchase a fourth house for permanent housing but are still finding other funding streams to buy a home. If they cannot obtain the additional funding they will then go to a bank to see about a possible mortgage to proceed. Sertterh noted with the Aid to Agencies money is used for staff support at the emergency shelter, which provides for the immediate needs of people in housing crisis. They serve more people every year, last year they served over 900 people in shelter. Aid to Agencies provides staff support for people's needs and safety. He noted that DVIP and Shelter House have partnered in the past couple years for Rapid Rehousing dollars from HUD to help people who experiencing homelessness. It has been a win/win for both agencies. Eastham asked for clarification on how the Rapid Rehousing money from HUD is used. Sertterh said the money is for anyone who is literally homeless and on the streets or in shelter to be used for short-term rental assistance (up to one year). Vaughan expressed congratulations as she attended the open house for the new facility. Eastham made the same request to Shelter House he made for DVIP, if they could provide what a fully funded program would look like. Sertterh agreed it would be a great discussion to have. Ron Berg from Prelude gave an update on their project (FY19 Rental Rehab). The CDBG funds are to replace a hot water heater at their 12 unit transitional housing complex. They expect to have the bid documents out for that project in the next couple of weeks. Susan Gray from 4Cs presented an update on their project (FY19 Daycare Technical Assistance). She Housing and Community Development Commission January 17, 2019 Page 4 of 12 noted all agencies do amazing work and it is hard to compete with domestic violence, free medical or free lunch programs and other first level of needs for families to survive, but if the community doesn't support childcare no one has an opportunity to break out of the cycle of poverty. They just received the CDBG funding in November but Johnson County Empowerment funding allowed them to fund their project before the CDBG funding. The 4 C's program works with childcare providers that serve at least 51% of children on childcare assistance, that is, lower income and at -risk children. Currently, they actually serve 100% of children with childcare assistance which shows the lowest income providers (87.5% of the providers) participating in this program are at 0-30% income. Last year there were 17 on the program and they now have 21, 12 of which have their first language as something other than English and the other 9 are English speaking but serve minority children. 18 of the 21 have become registered with the Iowa Department of Human Services and 2 more are ready to submit. Gray noted last year they worked really closely with 5 providers to get them registered which was a lot of work. Another issue the providers work with is that everyone in the child's family needs a physical which requires to educating them on cultural differences that doctor visits are needed when healthy as well as when sick. The program helps childcare providers become more financially viable with their small business. Gray noted that childcare assistance is a huge problem in Johnson County due to childcare fees being so much higher and they struggle to find places for children. CDBG funding helps increase the opportunities for childcare and it is critical that young children receive good quality care and are well nurtured to have a better chance in school. 4C's motto is to support the providers until the work is done. A challenge of the past few months has been when providers must move from one apartment to another due to landlord issues and they can lose the DHS funding during the move time. 4C's held a meeting recently at the Neighborhood Centers with 100% of the providers and they are incredibly appreciative of the support and are excited to learn more. This meeting on business practices, keeping records up-to-date, and other business tips was well received. Harms asked how many children are in each of the 21 providers. Gray said the immigrant family childcare providers can have up to 6 children, but those in apartments will usually have 3 or 4. Other home facilities can have 12 children with 2 providers and 4 extra after school. Overall Gray feels around 200 children are impacted. Harms asked for an estimate in Johnson County for the number of children ages 0-5 who need childcare versus number of available slots. Gray does not have that statistic, but noted that Johnson County is not as bad as other areas in Iowa. She noted there is a difference in slots available in childcare centers versus homes, home childcare is now down to 10% which may be impacted by places such as North Liberty that have centers with 200-300 slots in one center. Lehmann noted these were CDBG Economic Development dollars and is technical business assistance for low income children providers. This comes from a different pot of funds than Aid to Agencies. UPDATE ON ARTHUR STREET HEALTHY LIFE CENTER PUBLIC FACILITY PROJECT: Lehmann noted the presenter had a conflict with students so she was not able to get away. She instead sent a brief written statement. The Arthur Street Healthy life Center is still working to engage stakeholders for the building purchase. The proforma for the clinic practice looks promising and potential partners looked at the building last week. She would like to be able to give another update at the next meeting. Eastham asked if there was a deadline they were working against for using the funds allocated. Lehmann said the deadline was originally June 30 but the fact that they haven't signed an agreement means another deadline in March will be initiated as half of theirfunds should be expended per HCDC policy. Lehmann said it is a local deadline based on fiscal years and can be flexible as long as other CDBG projects are expending funds. DISCUSS FY2020-2021 LEGACY AID TO AGENCIES FUNDING REQUESTS AND CONSIDER BUDGET RECOMMENDATION TO CITY COUNCIL: Lehmann asked if the Commission wanted to discuss the priorities first or go off the points allocated. The Housing and Community Development Commission January 17, 2019 Page 5 of 12 priorities come into play in the point totals and based on their allocation targets. Vaughan suggested starting with the priorities because that will determine the funding. Based on the initial allocations most Commissioners agreed with a few exceptions. For 4C's Harms had a different priority. Harms noted at the last meeting, HCDC decided to determine the priority based on the use for funding requested. She changed her priority to medium because it is employment training to certify caregivers and not as much childcare services. Padron asked if they are ranking based on the mission of the whole agency orjust the project because the Commission needs to be consistent. Vaughan noted they clarified last time they would rank based on the project. Alter offered a counter perspective that there is such a need and it is difficult to get certified this type of training, so it creates better quality childcare and therefore should be a high priority. Padron agreed it should be a high priority as the training is necessary for quality childcare. Brouse stated the intent of the program is to create more caregivers through the training which will help people sustain a job and have a career. Harms agrees to the consensus of a high priority. Vaughan noted Arc of Southeast Iowa is next, which is evenly divided as a medium or high priority. Padron added her priority of medium. Brouse noted he originally had it as a medium but after HCDC's conversation last meeting, it seemed to him they intend to spend the money on a daycare program so he switched it to high. Padron noted it is not daycare of everyone but for special needs and that is why she ranked it medium for disability services. Harms admitted she was unsure but feels it could be a high priority because it is for childcare, and while it is not impacting many people it is so specialized and so needed because it is difficult to find this type of childcare. Vaughan agreed with Harms but agrees it could be high priority. It was decided to leave it as a Medium/High category. Vaughan moved on to Big Brothers Big Sisters, most Commissioners ranked it as medium but a couple said high. Alter ranked it as high because of the mental health services aspect of the children served, the kids come from homes with single parents, parents in jail, substance abuse, have many siblings and underlying mental health issues that are sometimes overlooked by parents and schools. A lot of these children can feel overlooked and no one takes the time to do anything about it. This organization can spot some of these issues and pair children with caregivers and bring stability into their lives. Vaughan and Padron both chose medium priority as it is a youth service, the majority agreed. Elder Services was majority of medium but Alter also gave that a high priority because it is Meals on Wheels and transportation which are both high priorities. Vaughan noted the majority of the Commission ranked it medium and with no further discussion it would remain listed as medium. Vaughan moved on to The Housing Trust Fund of Johnson County (HTFJC), everyone else listed it as high priority, Vaughan ranked it low because it would be used for operations rather than direct services. McKinstry noted that with HTFJC many municipalities designate certain projects with their funding and therefore HTFJC is limited on how they cover operating expenses. Additionally HTFJC multiplies by many times the money that is given to them through other sources (federal funds, tax credits, etc.) and for that reason he feels it is a high priority. Vaughan concurred with the group and agreed it could be a high priority. Harms noted the impact HTFJC is huge. Next discussed was Inside Out Reentry. Vaughan also noted she was the only one that ranked it as low since it was to be used for services and administration but again consented to the majority of high priority. Vaughan moved along to Neighborhood Centers and noted she ranked it medium because it was listed as indirect costs but is okay with high priority if that is the rank of the group. McKinstry noted it will go directly to subsidized childcare and Vaughan agreed that was a high priority. Prelude was next, Alter feels they are addressing the homelessness and mental health, many of their clients have mental health issues that result in substance abuse which results in homelessness, a lot of these clients have worn out their welcome with friends, family and because of their issues with mental health they turn to alcohol and drugs and are put out on the street. Harms agreed and would be willing to change her ranking to high. Padron understands that everything is high priority but they cannot rank everything high priority, Harms understands and notes everyone's heart says high but the reality is they Housing and Community Development Commission January 17, 2019 Page 6 of 12 cannot all be. Alter agreed and is fine with a medium priority ranking. Finally was United Action for Youth, Alter felt it was a high priority as it funded homelessness and mental health for the youth. Teenagers have a child, their parents kick them out, they have nowhere to go, and it is a big issue and needs to be addressed. Vaughan also rated it high because of the homelessness piece. Padron agreed it should be high. The consensus of the group was to change it to a high priority. Vaughan thought moving to allocations they would start with low priority allocations, as there is only one agency that scored as a low priority, the Iowa Valley Habitat for Humanity. Eastham noted 5% of the total allocation was targeted to low priority activities and there is a minimum of $15,000 for any agency. Eastham therefore he feels Habitat should be allocated $15,000. The rest of the Commission agreed. Next agencies with a medium priority ranking were discussed. Everyone assigned the Iowa City Free Medical Clinic $15,000. Vaughan suggested funding $15,000 to all medium priorities to see how funding played out. The Commission agreed. That left high priority agencies to discuss, the highest ranked was the Crisis Center followed by Shelter House. Vaughan noted some of the average allocations came in below the minimum of $15,000 so they either need to be raised to $15,000 or not given any funding. Padron said they should be moved to $15,000 because all the ones in the medium category below a $15,000 average were moved to $15,000. Brouse noted the Crisis Center ranked the highest and the average allocation was $33,500. Eastham supported the Crisis Center having a higher allocation because it emphasized shelter and food services. Brouse agreed and had a higher allocation as well. HCDC decided to round the average of the Commissioner's individual funding down to the nearest $1,000 and see what the tally looked like. That brought the total allocation to $368,000 which was $13,000 over the total funds to allocate. Discussion began on how to reallocate to stay within budget. Vaughan suggested taking $1,000 off of each of the high priority categories that are above the minimum which left HCDC $6,000 over budget. Eastham asked about Habitat and why they have not received funds the past few years. Lehmann noted they received CDBG/HOME funds for specific projects but not funding for operating funds since FY15. Eastham suggested allocating zero dollars to Habitat and redistribute that it to cover the overage and use the $9,000 to support other agencies. Vaughan noted no one in the low category would receive funding. Harms noted that the Commission agreed that whatever is allocated this year to an agency, the same amount is guaranteed next year, so agencies can have some consistency. That would mean if nothing was given to an agency this year, such as Habitat, then they would also not receive any funding next year. Lehmann said Habitat would no longer be eligible for legacy Aid to Agencies but could apply for emerging funds if that happened. Padron stated while it is a low priority on the list, it is still a high priority in the community as homeownership is important. McKinstry agreed that homeownership an important part of overall services in the City but understands it doesn't score as high on priorities, but the Commission also committed to fund lower priority agencies. Eastham feels Habitat will continue to function without funding and the $9,000 should be allocated to Shelter House which does provide homes to people who are in dire straits. Becci Reedus (Crisis Center) asked to have all the priorities read to the audience as well as the allocations from the previous year. Lehmann read through the spreadsheet which totaled up to $361,000, $6,000 over budget as follows: Recommended FY19 FY20-21 Priority allocation allocation Iowa City Free Medical Clinic/Dick Parrott Free Dental Clinic Medium $15,000 $15,000 Prelude Behavioral Services Medium $16,000 $15,000 Housing and Community Development Commission January 17, 2019 Page 7 of 12 Elder Services Inc. Medium $20 000 $15,000 Big Brothers Big Sisters of Johnson County Medium $15,000 $15,000 Pathways Adult Day Health Center/ Aging Services, Inc. Medium $15,000 $15 000 Arc of Southeast Iowa Medium $0 $15,000 Iowa Valley Habitat for Humanity Low $0 $157000 Crisis Center of Johnson County High $407000 $337000 Shelter House High $507000 $477000 HACAP High $157000 $157000 Neighborhood Centers of Johnson County High $34 300 1 $25 000 Domestic Violence Intervention Program High $407000 $277000 4 Cs Community Coordinated Child Care High $157000 $157000 Rape Victim Advocacy Program High $207000 $157000 Table to Table High $157000 $157000 Free Lunch Program High $157000 $157000 Housing Trust Fund of Johnson County (HTFJC) High $24 000 $157000 United Action for Youth High $27 400 $19 000 Inside Out Reentry Community High $157000 $157000 Reedus questioned if the Crisis Center was the highest scorer in the highest category then why aren't they receiving a bigger allocation than others. She would like to have justification so she can relay that back to her board of directors. A member of the audience asked if there was less funding this year than allocated last year. Vaughan stated the allocation was $391,000 last year and $355,000 this year. Lehmann noted part of the change is splitting off money for emerging agencies. Eastham responded to Reedus' question on the Crisis Center allocation, he acknowledged it was a good point, the average ranking for the Crisis Center was 58 which was the highest ranking and is willing to revise the allocations to reflect the higher ranking. Vaughan noted since they are already over the budgeted allocation, they would need to figure out a way to allocate more to higher ranked agencies. The first discussion is whether to keep the allocation to the low priority, it was decided that the Commission would fund low priorities at an earlier meeting. Alter stated she was for funding it initially but after listening to the discussion about the long-term repercussions she would be okay with reallocating that $15,000 to other agencies. Vaughan asked for the consensus of the Commission to drop the low priority category and to allocate those funds elsewhere. Brouse would be in favor of taking the $9,000 from the allocation and giving $3,000 to Shelter House to get them to $50,000 and the other $6,000 to the Crisis Center. That would put Crisis Center at 59% of the funding they asked for and the Shelter House at 58% of the funding they asked for. Eastham supports that reallocation, but notes the ranking scores rest on several considerations not all of which strictly applicable to his thinking of the need for the specific kind of service the application is for and the need for that service and activity. He is inclined to support a higher dollar allocation to Shelter House than Crisis Center at this point. It is his assessment that sheltering people is a bit of a greater need than food distribution, which is also a big need. Genevieve Anglin (United Action for Youth) noted that it is understood there are limited dollars but part of what was discussed was the need of nonprofits in the community to have reliable funding from year to year and while she doesn't want to take money away from Crisis Center or Shelter House but they are Housing and Community Development Commission January 17, 2019 Page 8 of 12 getting close to what they got last year whereas UAY is going down by $8,000 which is less than 1/3 of what they received this year. In the last five years their allocation has reduced more than 50%. Padron stated the Commission talked about giving new agencies money so it is hard to fulfill every need. Padron wanted to hear from the Shelter House as to why they asked for $35,000 more this year than last. Mark Sertterh (Shelter House) stated the amount of services they are providing is exponentially more with the new services and new project they have coming online with the Cross Park Place building and will be doing more services for the community. Becci Reedus (Crisis Center) asked if there was no chance for the Commission to go to Council and ask for more money to fund nonprofits. Lehmann stated the Commission could request additional funding from Council with their allocation recommendation. Eastham agreed the Commission should do so. Lehmann noted some preliminary allocations made here may change based on unknown federal CDBG allocations. Lehmann said they are using a conservative estimate at this time because last year's funding was so unusual. Eastham noted that the Johnson County Board of Supervisors is now awarding $1.5 million to basically this same group of service providers. Kristie Doser (Domestic Violence Intervention Program) shared that because they received reduced local and state funding over the past five years they are in jeopardy of losing federal funding which would be a loss of $200,000 to $400,000. She knows they are not the only program dealing with this issue. Eastham asked forthe timeline forthese recommendations. Lehmann said it is taken to Council in May when CDBG/HOME allocations are made. He added the next two Commission meetings will be used for question and answer for CDBG/HOME applications and for allocating CDBG/HOME funds. Vaughan noted that when the Commission makes a recommendation tonight they can also request more funding from Council. Lehmann agreed, noting the Commission makes recommendations while Council makes the final allocation decision. Eastham stated that if Council were to allocate an additional $270,000 to the Aid to Agency budget it would allow the full requests from all applicants. The full request total is $625,500, the current budget is $355,000 so an additional $270,500 would meet the requests. Padron agrees with Eastham to ask for the full amount. Alter added that Council is discussing the FY20 budget right now so it is urgent to ask for additional funding now rather than waiting. Eastham noted at the budget meeting last week the City Manager pointed out that Council had $2.5 million in funds from this current fiscal year that is available for a variety of purposes and the City Manager suggested four of five specific allocations for those funds. $1.5 million or so of those funds was for a reserve fund to build another repair/maintenance facility which the City needs, but that reserve funding can also come from bonding so he is suggesting to taking $270,500 from the reserve fund to coverthe nonprofit allocations. Lehmann said the Commission could recommend what they want Council to consider in the motion, he suggests they make allocations based on the amount they have been given and suggest that additional funds be awarded to meet the agency requests. Lehmann said they did not need to specifically state where they want the funds to come from. Kubly agreed they didn't need to say where the money would come from. McKinstry suggested sending along a statement that says with the funds that have been allocated the allocations are as such, but with shrinking funds over the past several years and the needs are increasing, and additional funding should be considered because agencies need some relief. Lehmann stated they could defer the recommendation. Eastham stated he thinks it should be on the agenda as soon as possible because it seems to take Council time to absorb recommendations from this Commission. Ellen McCabe (Housing Trust Fund Johnson County) mentioned that if the Commission were to submit the table showing full recommendations along with requested amounts perhaps a column should be Housing and Community Development Commission January 17, 2019 Page 9 of 12 added to show the net impact from current allocations. Vaughan agreed showing the Council all the information is important. Ron Bgra (Prelude) noted if the trend continues as it is currently it won't be long before every agency is just getting $15,000. Eastham feels if a recommendation is made to Council for allocations that total $355,000 he would vote against that as he doesn't want Council to be able to start off their discussion that option. He wants them to have the $625,500 as the option to consider. He feels this needs to go before Council sooner rather than later and that membership from this Commission should be present at the meetings where these allocations are discussed as well as the agency representatives. Kubly noted that the Council agenda is already set for the next meeting, if a letter was to be drafted from HCDC it could go in next week's Council information packet. Eastman added Council will have to vote on the FY20 budget in March so he would want this on their agenda before the March budget vote. McKinstry asked if they were to send a letter to Council from this meeting that requests full funding for A2A, if Council comes back and states HCDC only has the $355,000 to spend will there be time for the Commission to make those allocations. Lehmann said they might have to add in a special meeting. Padron noted the Neighborhood Centers scored pretty high and the first three agencies are around 58% of ask and the Neighborhood Centers is less than 50%. Alter feels it is best to table the discussion on the allocations, send in the recommendation request for full funding and see what Council does. Barbara Vinograd (Iowa City Free Medical Clinic) acknowledged the Commission has an impossible task, but wanted to note that had she known there was a possibility of getting more than the $17,500 she would have asked for more, she made a small request knowing in the past how small the allocations had been. If the City really has money available many of the agencies would advocate for more. Eastham moved to recommend that City Council fund the full requested amount of Legacy Aid to Agencies applications as shown below for FY20 and FY21, and that Council invite HCDC to discuss this recommendation at their soonest available work session. Harms seconded the motion. Agency Request 4 Cs Community Coordinated Child Care $20,000 Arc of Southeast Iowa $20,000 Big Brothers Big Sisters of Johnson County $25,000 Crisis Center of Johnson County $66,000 Domestic Violence Intervention Program $50,000 Elder Services Inc. $40,000 Free Lunch Program $16,000 HACAP $25,000 Housing Trust Fund of Johnson County (HTFJC) $30,000 Inside Out Reentry Community $30,000 Iowa City Free Medical Clinic/Dick Parrott Free Dental Clinic $17,500 Iowa Valley Habitat for Humanity $25,000 Neighborhood Centers of Johnson County $55,000 Pathways Adult Day Health Center/ Aging Services, Inc. $25,000 Prelude Behavioral Services $20,000 Housing and Community Development Commission January 17, 2019 Page 10 of 12 Rape Victim Advocacy Program $23,000 Shelter House $85,000 Table to Table $20,000 United Action for Youth $33,000 Total $625,500 Eastham strongly suggested that Vaughan, as chair of HCDC, contact the Mayor and discuss the results of this meeting and let him know HCDC would like to come to the next available work session to discuss. Vaughan agreed to reach out. Kubly added that anyone can go to the Council meetings and talk during the "items not on the agenda" public comment portion of the meeting. Eastham stated he doesn't like that opportunity because he feels Vaughan needs to talk directly to the Mayor. Sara Barron (Johnson County Affordable Housing Coalition) asked if the funding for Habitat for Humanity is included in recommendation to Council. Eastham agreed it would be included in the recommendation. A vote was taken and the motion passed 7-0- OVERVIEW OF HOUSING PRO FORMA TEMPLATE: Lehmann gave an update on the Housing Pro Forma noting it only affects rental housing projects, though HCDC will have expected rents and sales prices for owner -occupied projects from the application. Lehmann explained various items on the Pro Forma. The Pro Forma spreadsheet has instructions which explains each line item and what they need. Generally when looking at rental projects, costs are anticipated to increase faster than rents, so the City assumes 2% rent and 3% expense increases. The Gross Amount of Income is revenue coming in from rents based on the HUD -allowable rent times by the number of units. There is a line for other income, but it is almost never used because it can be difficult to anticipate what that income might be, usually it's things like money -operated laundry machines, etc. Tenant Contribution is other payments like parking or storage space. Gross revenue is all those items added up. For vacancy loss, we generally assume 5% but it can be higher depending on demographics or clientele. Revenue minus vacancy creates the Effective Gross Income which is the amount of revenue expected in a given year. Expenses are pretty straightforward; insurance, maintenance and structural repairs (which is generally around 1% of the price of the property), management fees (usually between 5% and 7% but some nonprofits don't charge management fees), miscellaneous expenses (accounting, legal, advertising, etc.). Lehmann noted the City bases their estimates on the Iowa Finance Authority. With regards to property taxes, a lot of nonprofits do not have to pay property taxes other than the first year which may result in a negative cash flow that year. The actual cash flow is revenue minus expenses. Operating reserves should be no less than $350 per unit, it is better to see more as IFA has higher reserve requirements than the City. Finally the debt coverage ratio is important, a 1:1 debt coverage ratio means the operating income exactly matches operating expenses. The City needs to see a minimum of 12:1 by year three to show enough cash flow to support the project in case something not anticipated occurs. Some affordable housing lenders use a debt coverage ratio of 1.15. Vaughan thanked Lehmann for the information as it is very helpful. Eastham feels the City should follow IFA levels, that their standards are currently different. Lehmann agreed and will double check that for the future to make sure the City is lined up with IFA for consistency- STAFF/COMMISSION COMMENT: Lehmann announced that Bob Lamkins has officially resigned from HCDC due to time constraints. The vacancy will be announced on January 22 and per bylaws, the preference is for someone who is Housing and Community Development Commission January 17, 2019 Pagel 1 of 12 receiving rental assistance or for someone with a financial background Lehmann noted the next meeting is February 21. The agenda will include monitoring reports, CDBG/ HOME application question and answer session (applications are due January 18), the emerging funds applications and the fair housing study. Regarding emerging applications Lehmann wanted to know the Commission's preference on doing a question/answer period or just allocating amounts due to the small funding. The consensus of the Commission was to see how many applications and if there were more than 5 applications to do two sessions, but if under 5 then review at the next meeting with the CBDG/HOME applications. Brouse noted that if the deadline for applications has to be flexible so more agencies can get them submitted they should extend the deadline. Currently there is only one application Lehmann has talked to others so thinks there are a few more applications in process; he will extend the deadline if they don't receive at least 3 applications. Lehmann passed out to the Commission an Income by Age, Race, and Location table that the City put together after receiving questions, he thought the Commission might be interested in the data. The Request for Proposals is out for the Consolidated Plan so that review will begin shortly. The City is also reviewing affordable housing programs and staff will bring it to the Commission when it is complete. Eastham asked about the Housing Pro Forma template and if there would be a rental table included. Lehmann confirmed it is included in the application. Eastham noted the Council decided not to follow HCDC's recommendation to allocate an additional $200,000 to the NEX Project to further reduce rents. He stated the project will build 32 units termed "affordable" and they provided a rent table for each of those units. He examined the rent table from the perspective of a tenant making $18,000 annually, which is higher than the average income for the City's Section 8 program, and within the range of households with rent costs more than 50% of their income (called high cost burden households). When reviewing the proposed rents from that perspective, 27 of the 32 so-called affordable units would require more than 50% of the income of the tenants. He wanted HCDC to be aware that low income housing tax credit (LIHTC) projects are not automatically an avenue for low cost burden rental housing. In fact most LIHTC projects' proposed rents provide high cost burden housing. That is why he requested HCDC to ask Council for additional funds. The Council declined the request in part because they interpreted $200,000 resulting in only an increase of three units having very low rents over the one unit in the developer's original proposal. The reason Council thought $200,000 would not "buy" enough additional low rent units was because in the developer's scenario presented to Council, the $200,000 would reduce the commercial borrowing and the debt from the commercial borrowing by about $12,000 per year but the $200,000 would be paid back to the City at 1% over a 17 year period which would be additional debt service. Eastham feels Council did not get accurate and complete information on HCDC's wishes to understand how much that $200,000 would decrease rents over how many units. Looking at the letter the developer wrote to Council with their suggestion, they did not have all the information and didn't realize they didn't have to pay that $200,000 back and it would not increase their debt service. Eastham proposes that future LIHTC applicants be instructed better on measures to decrease their proposed rents down to a level that is actually affordable to low income households. He added that just using 40% or 60% of the AMI as a rent guide is not actually affordable as most rent prices are well above what can be afforded at the average medium income. It is important to look at what the rents are, not want the percent of AMI is and if the Commission is going to negotiate with Council we need to make sure Council understands clearly what is being negotiated. McKinstry acknowledged it was good Eastham brought this topic up and that the Commission made that recommendation because it is a process of education for Council, the Commission, and the applicants. ADJOURNMENT: Brouse moved to adjourn. Alter seconded. Passed 7-0 Housing and Community Development Commission January 17, 2019 Page 12 of 12 Housing and Community Development Commission Attendance Record Name Terms Exp. 7/10 9/20 10/11 11/15 12/20 1/17 Alter, Megan 7/1/21 X X X X X X Brouse, Mitch 7/1/21 X X X X X X Eastham, Charlie 7/1/20 X X X X X X Fixmer-Oraiz, Vanessa 7/1/20 X O/E X X X O/E Harms, Christine 7/1/19 X 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 X Padron, Maria 7/1/20 X X O/E O/E X X Vaughan, Paula 7/1/19 X X X X X X • Resigned from Commission Key: X = Present O = Absent O/E = Absent/Excused --- = Vacant FY20 CDBG/HOME Applications Summary Requested CDBG HOME Housing Projects (CDBG & HOME eligible unless noted) Amount Recomm. Recomm. Habitat - Lot Acquisition $120,000 MYEP - Lot Acquisition $200,000 Successful Living - Rental Acquisition $240,000 Successful Living - Rental Rehabilitation $75,000 THF- CHDOOperating(HOME-eligibleonly) $26,500 NA Max: $23,000 THF - Rental Rehabilitation $69,108 Min: $70,000 Subtotal $730,608 $0 $0 Public Facilities Projects - CDBG eligible only DVIP- Shelter Repair $120,000 NA Little Creations Academy - Renovation Phase 3 $51,968 NA Old Brick - ADA Improvements $40,553 NA Old Brick - Structural Fortification/Water Mitigation $67,670 NA Subtotal $280,191 $0 TOTAL: $1,010,799 $0 $0 Funds Available $640,000 $100,000 $540,000 CDBG Eligible Only Parts of project may not be eligible Project . .Homebuyer Lot Acquisition Project Address 2752 Whispering Meadows and 2612, 2784, & 2794 Blazing Star Activity Type Homebuyer Housing CITY STEPS Priority Expanding affordable rental and owner housing opportunities CITY STEPS Goal Improve access to affordable owner housing Amount Requested $120,000 Project Description Acquire four lots and construct four zero lot homes to be sold to low income homebuyers (<60%AMI). Mortgage payments will be affordable (i.e. less than 30% of household income) and are typically well below Fair Market Rent for a similar -sized unit. Repayment Terms Coniditional Occupancy Loan with Recapture Provision: portion of loan repaid upon sale if during the affordability period; forgiven if maintained as primary residence through affordability period. Affordability Period 15 years proposed (10 years required) Property Taxes Esimated $4,700/property ($18,800 total) % CDBG/HOME Funded 16% Project Budget Discussion Total budget is $760,000 with matching funds coming from private financing and fundraising. Total CDBG/HOME cost per unit is $30,000. Expected sales price of $200,000 per unit (minus forgiven CDBG/HOME and Habitat funds). If not awarded full funding, properties will be available only to higher income households and Habitat's capacity for future ro'ects will decrease. Beneficiaries 1 five -or -more person household at 31-50%AMI 3 five -or -more person households at 51-60%AMI Project Coordination with IVHFH partners with local vendors, many of whom offer discounts in labor and/or Existing Services & other materials at a range of 25-100% off normal pricing. Also use over 1200 hours of Services Available in the volunteer labor. Community Timeliness and Capacity to Applicant is in good standing and has successfully completed previous CDBG/HOME Successfully Complete the homebuyer projects, though some projects have been delayed. Staff has no current Proposed Project concerns about capacity to successfully administer this project. Staff Concerns/Notes 1) May need to comply with federal procurement standards (competitive bids) for the proposed work. 2) Section 3 may require opportunities for training and employment for LMI persons if a contractor performs construction duties which total $100,000 in HUD funds. 3) Construction must begin within one year and units must be sold within 9 months of completion. 4) Sales price must be below HUD HOME sales price limits, currently at $228,000 for single family new construction. 5) Project will require two forms of underwriting, developer and homebuyer S:\DEV\CDBGHOME\FY20`Applications\FY20 Staff reports FINAL.xlsx General Information and Project Need Ci Select Language I Community Development Block Grant (CDBG) and/or HOME Investment Partnership (HOME) programs provide funding to aid in the development of viable urban communities and in the provision of safe and decent affordable housing. Applications are due Tuesday, January 18, 2019 at noon. This year, $625,000 are estimated to be available through this competitive process. Please reviewthe FY20 CDBG/HOME Application Guide for more information about eligible activities. Please submit one project proposal per application. Questions can be directed to kirk-lehmann@iowa-city.org or contact Neighborhood Services at 319-356-5230. Additional assistance, and hard copy applications, are available upon request Project Information ' . Project name * Saddlebrook Meadows Project Address* Street Address 2752 Whispering Meadows, 2612 Blazing Star, 2784 Blazing Star, 2794 Blazing Star Address Line 2 City Iowa City Fbstal / Zip mde 52240 Type of Project(?) ❑ Rental Housing © Owner Housing ❑ Public Facility ❑ Other Type of Activity(?) n Acquisition © New Construction ❑ Rehabilitation ❑ Direct Assistance ❑ Other Applicants Applicant Name * Iowa Valley Habitat for Humanity Applicant Address* State / Province / I Lgion IA CcunUy USA Street Address 2401 Scott Blvd. SE Address Line 2 City Iowa City Fbstal / Zip Oxle 52240 Contact Person, Title* Heath Brewer, Executive Director Phone Number* 319-519-6122 Email* heath@iowavalleyhabitat.org DUNS Number(?) 123204880 State / Province / fisgion IA Counfiy USA DUNS # Verification*(?) Go to http:#fedgov.dnb.com`webfamto lookup a create a DINS number. Provide a copy of the email you readve with your confirmed DINS number. SAM.gov verification email.pdf 97.28KB CAGE Code M Obtain by registering on SAMgov 83S48 SAM.gov Registration*(?) All subreapienls crust register on SAMgov before a legally binding agreement can be signed. Attach your SAMgov Entity F4egistraton Summery as evidence that this has been completed. SAM.gov Entity Reg. Summary.pdf 95.88KB General Information Type of Lead Applicant* G Community Housing Development Organization O Private non-profit organization 6 Private for -profit, individual or partnership applicant O Public Organization W-9 Form*(?) (F4equest forTaxpayer ID# & Cerlificaton) IVHFH W9.pdf 74.57 KB Organizational Status * (?) Go to https://sm.ima.gm/smmhtbusiness to lookup the organizafion applying fa funds. Provide a copy of the Business Entity Sumrery, screen. Business Entity Summary Screen.pdf 60.63KB Amount of Funds Requested* $ 120,000.00 Did you attend an Applicant Workshop?* 0 Yes 0 No Provide a few lines describing the proposed project* IVHFH is hoping to develop several new homes for affordable home ownership in SE Iowa City. The HOME/CDBG funds will be used to acquire 4 lots for $30,000 each. The 4 lots hold two units of two separate zero lot homes. The addresses 2752 Whispering Meadows and 2612 comprise lots 1 and 2 of one duplex and addresses 2784 and 2794 Blazing Star represent lots 19 and 20 of the second duplex. In total, the projects will cost roughly $190,000 each and be sold to a Habitat applicant with income under 60% AMI in Johnson County, however we will target homebuyers under 50%, if available. The homes will maintain affordability and stay owner -occupied for no less than 15 years. The following is an example of the financing structure for our latest Habitat project: Sale/Appraisal Price: $225,000 1st Mortgage - Hills Bank: $140,000 (30 years 4.875%fixed) 2nd Mortgage - IVHFH: $85,000 Silent for first 7 years, forgiven 1/7th per year for 7 years. Fully forgiven year 15. The homebuyer income is 54%AMI and the payment for mortgage, taxes, and insurance was 26% of gross income. Based on the partnership with Hills Bank, this will be similar to the projected financing for the proposed project. However, the financing from Hills will most likely be lower in order to serve <50%AMI households. Also, the projected appraisals will be closer to $200,000. As suggested, the value of these projects has a generational affect on wealth as equity is made available at a much quicker rate than typical. Please specifythe one or two most applicable priority need(s) this application addresses, as shown in the 2016-2020 CITY STEPS Plan. Explain how this project will meet this/those need(s).* Expanding Affordable Owner Housing Opportunities is a High priority in the CITY STEPS Plan. Specifically, projects serving low-income populations with large families including children. One of the featured goals of the priority is to assist with down payment assistance. While this proposal does not directly fulfill this goal, it does aid the organization in the development of a more affordable property that does not require a down payment from the buyer beyond sweat equity. Iowa Valley Habitat for Humanity is one of the very few organizations in Iowa City working with the low-income population to provide affordable opportunities for homeownership. For the last 26+ years the organization has developed over 100 newaffordable homeownership opportunities in the area. With the use of volunteers, community partners, and a knowledgable staff, IVHFH is able to build a home that will maintain affordability for a low-income homebuyer for the foreseeable future. The funds granted will be used as a forgivable loan to the homebuyer to reduce payable costs of a new home that will be built to house a family of up to 7 people. The grant investment will be included in the purchase price of the home, but will remain silent for up to 15 years upon which time it will be fully forgiven. The mortgage placed on the property for this amount of money acts much like a down payment, reducing the payable portion of the purchase price and increasing equity in the property. IVHFH has been given the opportunity to purchase the lots at a steeply discounted rate. This opportunity and price will be difficult to match in the future making the award of funds even more important to our organization and the affordable housing objectives of our community. Budget and Resources Type of Funding Requested* Financing tears will be based on project feasibility and the ability to repay. Terms approved by City Council may be different than what is requested. Grant Requested Grant Terms Principal Amount Affordability Period M $ 120,000.00 15 years Source of Funds a Rease enter belov the types of funding and arrounls requested for the proposed project, including it the funding is conTifted. If not a loan, leave loan tears blank Select the blank space for possible sources of income, a enter your own. Public Resources Funding Source and Type (?) Amount Interest rate Term(?) Committed Iowa City HOMEiCDBG $ 120000.00 0 0 No Total Public Funds $ 120,000.00 For uncommitted funds, please indicate when the applicant will applyfor funds This application represents the request for funds. Private Resources Funding Source & Type (?) Amount Interest rate Term(?) Committed Applicant Equity $ 260,000.00 0 0 Yes Bank Loan $ 260,000.00 4.5 12 No months Fundraising $ 120,000.00 0 0 No Total Private Funds $ 640,000.00 Total Project Funding $ 760,000.00 Evidence of Funding Commitments*(?) Upto four pages of additional information about the capacity of the agan¢afion may be included. Examples of rmy include graphics supporting the previous questions, resumes of key staff, additional descripfims of agan¢atJmal activities, a other relevant infarrer im. Proof of funding.docx 12.31 KB Use of Fund - _ Please enter below the uses of funding and amounts requested for the proposed project, including whether formal cost estimates were received. Select the blank space for possible use of funds, or enter your own." Type (?) Land Acquisition Total Use of Funds Amount $ 120,000.00 Amount $ 120,000.00 Scope of work(?) Attach any documantaton used fa cost esUrretes Lot agreement.pdf Other Considerations Formal Cost Name of Entity Estimate providing cost estimate Yes Sycamore Develope rs/Monic a Hayes, Skogman Realty Number of households or persons served* 4 Total cost per household or person served $ 190,000.00 What percentage of the proposed budget will be made up of private funds?* 84.21 Dollars Leveraged Per City Dollar Spent $ 5.33 443.86KB Describe any community partnerships or volunteers that will contribute to the project. IVHFH partners with local vendors of whom share in the mission of providing affordable homeownership opportunities. Many of the vendors offer discounts in labor and/or materials at a range of 25-100% off normal pricing. These partnerships paired with the use of over 1200 hours of volunteer labor make the development of a truly affordable unit a reality. Describe any identity of interest (101) relationships with the applicant and/or project owner, i.e. General Partner has a financial interest in the construction company, etc.* No conflicts of interest recognized for this project. Iowa Valley Habitat for Humanity Secured Funding—Saddlebrook Meadows IVHFH will use operational cash flows from Financing Activities, Fundraising, and Restore sales to provide the necessary cash for the development of the four properties in Saddlebrook Meadows. The project will take 12 months to complete from receipt of funding, upon time of sale, the homebuyer will finance a portion of the purchase with traditional financing through a program offered by Hills Bank. The remainder of the purchase will be a combination of a silent mortgage from the City of Iowa City for HOME/CDBG funds; 0% interest loan from Habitat; and silent/forgivable mortgage from Habitat. The payable portion will be structured so the homebuyer does not pay more than 27%of their gross income to mortgage payments, taxes, and insurance. The financing provided by Hills Bank will allow IVHFH to acquire funds through a construction line of credit from Hills Bank to assist in payment for materials and labor. This note will carry an interest rate of approximately 4.5% on drawn funds. Each project will take 4-6 months to complete and will have minimum carrying costs. SKOGMAN RESIDENTIAL LOTSNACANT LAND PURCHASE AGREEMENT IR aaALry This form approved by the Iowa City Area Association of REALTORS® aEAL1OR`e iki{'u,�i i Data of Agreement 09/0812017 TO Brad Houser - Saddlebrook Meadows Develoment Inc,Member 1. REAL ESTATE DESCRIPTION. The undersigned BUYERS hereby offer to buy reel estate In Johnson County County, Iowa, locally known as: Saddlebrook Meadows Development Lots 40, 41, 42, 1-2, 17-18, 19-20 AND FOLLOWING THE LEGAL DESCRIPTION CONTAINED IN THE TITLE DOCUMENT BY WHICH SELLERS RECEIVED TITLE TO THE PROPERTY, SUBJECT TOAPPROVAL OF BUYERS' ATTORNEY, or described as follows: with any easements and appurtenant servient estates. 3 2. PURCHASE PRICE. The purchase price shall be $300,000.00 i@� See;Fyes (Three hundred thousand dollars and 00/S00 ) and the method of payment shall be as follows: $25,000.00 with this offerto be deposited upon acceptance of this offer, In the trust account of Skogman Realty to be delivered to the SELLERS upon performance of SELLERS' obigatlons and satisfaction of BUYERS' contingencies, if any, and the balance of the purchase price as designated below. Select: (A) (B) and/or (C)or(D) A. ❑ NEW MORTGAGE. This agreement is contingent upon the BUYERS obtnining a written commitment for a that real estate mortgage for / of the purchase price with Interest on the promissory note secured thereby of not more than '/e amortized over a term of not less than years, with a balloon due date of not less then years. BUYERS agree to pay no more than '/o far loan origination fees and points, and to pay In addition all other customary loan costs. BUYERS agree upon acceptance of this offer to immediately make application for such mortgage with a commercial mortgage fender and to exercise good faith efforts to obtain a mortgage commitment as above provided. Upon recelving written loan commitment, (supported by the lender's required appraisal), BUYERS shall release this contingency In writing. If BUYERS have not obtained a written mortgage loan commitment containing the above terms, or terms acceptable to BUYERS on or before the day of either SELLERS or BUYERS may declare Oils agreement null and void and of payments made hereunder shall be returned. BUYERS shall pay the balance ofthe purchase price at he time of the closing by combination of BUYERS' personal funds and the net mortgage proceeds. B. ®CASH; BUYERS will pay the balance of the purchase price In cash at the time of closing. This agreement Is not contingent upon BUYERS obtaining sughlunds. C. OTHER FINANCING TERMS: D. U If a Mortgage Assumption, Installment contract Assumption, or Installment contract Sale, see attached addendum. 1 3. POSSESSION. if BUYERS timely perform all obligations, possession for the Real Estate shall be delivered to BUYERS on %t yt c6 vn .23 with any adjustments of rent, taxes, interest, and other applicable matters to be made as of the date of transfer of possession. Closing of the transaction shell occur after approval of its and all personal property and equipment is removed from the promises by the SELLERS. Possession shall not be delivered to the BUYERS until completion of the closing, which shall mean delivery to the BUYERS of all title transfer documents and receipt of the purchase pdce funds then due from BUYERS. If by mutual agreement the parties select a different possession or closing date, they shag execute a separate agreement setting forth the terms thereof. 4. REAL ESTATE TAXES. SELLERS shag pay all real estate taxes which are due and payable, as of the date of possession, and constitute a Ilan against the above described Real Estate and any unpaid real estate taxes for any prior years. Except for the tax proration hereinafter set forth. BUYERS shall pay all subsequent real estate taxes. SELLERS shall also pay a prorated share, based on the date of possession, of the real estate taxes for the fiscal year ending June 30, 2018 and payable in the fiscal year commencing July 1, 2018 based upon one of the following formulas: Select(A)or(B) A. ❑ Net taxes payable In the current flecal year In which possession Is given to BUYERS. B. ® An amount calculated based upon the assessed valuation, legislative tax rollback, and real estate tax exemptions that will actually be applicable to and used for the calculation of taxes payable in the fiscal year commencing July 1, 2018 If, at the time of closing, the tax rate Is not certified, then the mast current, certfied tax rate shell he used, ,$® C sP cSE"rc.,, :73 5, SP ALASSESSMENTS. Select: (A)ar(B) A. SELLERS shall pay all special assessments which are a lien on the Real Estate as of the dale of closing. B. SELLERS shall pay all installments of special assessments which are a lien on the Reel Estate and, If not paid, would become delinquent during the calendar year this offer Is acccepted, and al prior Installments thereof. All other special assessments shall be paid by BUYERS. 6.DEED. Upon paymentof the purchase price, SELLERS shall convaythe Real Estate to BUYERS or their assignees, by General Warranty Deed,free and clear of all lens, restrictions, and encumbrances, Any general warranties of title shall extend only to the time of acceptance of this offer, with special warren lasso as to acts of ELLERS continuing up to time of delivery of the deed. 7. TIME IS OF THE ES CE. lime Is of the essence In this contract. Buyer's Ioltl Seller's killers Page 1 of 4 8. OPTIONAL CONDITIONS. Provisions B-A through 8-E, If Initialed by BUYERS are Included In this agreement: =A. SURVEY. Upon acceptance of this offer, BUYERS shall have the property surveyed by a licensed surveyor at the expense of the ❑BUYERS ❑SELLERS. The surveyor shall set and gag all property pins, to be approved by BUYERS before . If the survey, ceHiged by a Registered Land Surveyor, shows any encroachment on said property a If any Improvements (not excluding landscaping, landings or fencing) located on the subject property encroach on lands of others, such encroachments shall be treated as a title defect. B. SOILS TEST. Upon acceptance of this offer, BUYERS shall have the right to have Solis Investigations conducted by a licensed soils engineer. Including, but not limited to, percolation tests, to ascre—rti In whether the property Is suitable for the Improvements which BUYERS propose to make. All expenses for the tests shall be borne by UBUYERS OSELLERS, BUYERS shall be responsible for the repair and restoration of any damage to the property which may be caused by such tests. If In the reasonable opinion of the soils engineer, the property, Is not suitable for the proposed development, this agreement, at the option of BUYERS, may be terminated and all earnest money shall be refunded. BUYERS shall be deemed to have waived this conditlon unless written notes to the contrary Is delivered to SELLERS' agent within days of acceptance. COVENANTS. SELLERS shall provide the BUYERS with the covenants within days of acceptance of this offer. BUYERS shall then have ____days form receipt of these covenants to review and provide written approval to SELLERS' agent. . WELL WATER TEST. Upon acceptance o offer, BU, ERS shall obtain a water test limited to sanitary or safe water supply, per the State Hygienic Laboratory report, at the expense ofthis BUYERS SELLERS. BUYERS shell be deemed to have approved said report unless written notice Is delivered to SELLERS' agent within days of acceptance. In the event of disapproval. BUYERS may terminals this greement and all earnest money shall be returned. . WELL REPORT. Upon acceptance of this offer, BUYERS shall obtain a well report ofthe existing well(s) from a licensed well drilling contractor at the expense of th E] BUYERS ❑ SELLERS. BUYERS shall be deemed to have approved said report unless written notice to the contrary Is delivered to SELLERS' agent within —days of acceptance. In the event of disapproval, BUYERS may terminate this agreement and all earnest money shall he returned. 9. PROPERTY INVESTIGATIONS. This agreement is contingent upon BUYERS' Independent Investigation within days from the acceptance of this offer of the following examples of conditions relating to the property: A. Zoning, other ordinances, general plan description, environmentally protected areas, food zones, master plans of drainage, dedication of land for puhllc use, topography, or (other) B. Availability of uflitlea and costa of development. C. Building Department requirements, fees, and costs of offside and onsite Improvements. D. Any easements of record for public utilities, roads or highways. Also consider liens, other easements, and Interests of others. BUYERS shell be deemed to have approved of said investigations unless written notice Is delivered to SELLERS' agent vdi days of acceptance of this Purchase Agreement. In the event of disapproval, BUYERS may terminate this agreement and all earnest money shall be returned, 10. USE OF PURCHASE PRICE. Attlme of settlement, funds of the purchase price maybe used to pay taxes and other lions end to acquire outstanding Interests, if any, of othors. 11. ABSTRACTAND TITLE. SELLERS, at their expense, shall promptly obtain an abstract of file to the Real Estate continued through the date of acceptance of this offer, and deliver it to BUYERS for examination. It shall show merchantable life In SELLERS' names In conformity with this agreement, Iowa law, and Title Standards of the Iowa State Bar Association. The abstract shall become the property of the BUYERS when the purchase price is paid in full, SELLERS shall pay the costs of any additional abstracting and title work due to any act or omisslon of SELLERS, including transfers by a the death of SELLERS or their assignees. If, at the fine of closing there remain unresolved title objections, the parties agree to escrow from the sale proceeds a sufficient amount to protect the BUYERS' Interests until said objections are corrected, allowing a reasonable time for the corrections of said objections: provided however that If the commercial mortgage lender of the BUYERS will not make the mortgage funds available with such escrow, the provisions for escrow for title defects shall not applicable. 12. JOINT TENANCY IN PROCEEDS AND IN REAL ESTATE. If SELLERS, immediately preceding acceptance of the offer, hold the to the Real Estate In Joint tenancy with full right of survivorship, and the joint tenancy is not later destroyed by operation of law or by acts of the SELLERS, then the proceeds of this sale, and continuing or recaptured rights of SELLERS In the Reel Estate, shall belong to SELLERS as joint tenants with full rights ofsurvivaship and not as tenants In common; and BUYERS, in the event of the death of either SELLER, agree to pay any balance of the price due SELLERS under this contract to the surviving SELLER and to accept a deed from the surviving SELLER consistent with paragraph 7. 13. JOINDER BYSELLER'S SPOUSE. SELLER'S spouse, If not a titleholder Immediately preceding acceptance of this offer, executes this contract only for the purpose of relinquishing of all rights or dower, homestead and distributive share or In compliance with Section 661.13 of the Iowa Code and agrees to execute the deed areal estate contract for this purpose. 14. REMEDIES OE THE PARTIES. A. If BUYERS fall to timely perform this contract, SELLERS may forfeit It as provided In the Iowa Code, and all payments made shall be forfeited or, at SELLERS' opllon, upon Thirty (30) days written notice of intention to accelerate the payment of the entire balance because of such failure (during which thirty days such failure Is not corrected) SELLERS may declare the entire balance immediately due and payable. Thereafter this contract may he foreclosed In equity and the Court may appoint a receiver. B. If SELLERS fall to timely perform this contract, BUYERS❑have the right to have all payments made returned to them. C. BUYERS and SELLERS also are entitled to utilize any and all other remedies or actions at law or In equity available to them and shall be entitled to obtain judgement for casts and attorney fees as permitted by law. D. In the event BUYERS fall to perform their obligations hereunder and the SELLERS successfully forfeit any paymonts made under this contract, the Broker shall receive from the SELLERS one-half of the forfeited payment, said one-half not to exceed the total commission due to the Broker. In the event the SELLERS fail to perform SELLERS' obllgatlons under this contract when required to do so, SELLERS shall pay to Broker the Broker's commission In the amount set forth In the SELLERS" Listing Agreement with the SELLERS' Broker. 15. STATEMENT AS TO LIENS. If BUYERS Intend to assume or take subject to a Ilan on the Real Estate, SELLERS shall furnish BUYERS with a written statement prior to closing from the holder of such Ilan, showing the correct balance due. 16. APPROVAL OF COURT. If the sale of the Real Estate is subject to Court approval, the fuduclary shall promptly submit this contract for such approval. trials contractis not soapproved bylbeNA day of either party may declare this contract null and void, and all payments made hereunder shall be returned to BUYERS. 17. CONTRACT BINDING ON SUCCESSORS IN INTEREST. This contract shall apply to and bind the successors and Interest of the parties. iB. CONSTRUCTION. Words and phrases shall be construed as In the singular or plural number, and as masculine, feminine or neuter gender, according to context. Buyer's Initl s 1�lSeller's Initlels <-c- Page 2 of 4 19. AGENCY DISCLOSURE. The Listing and Selling Agents/Brokers are agents of the parties hereto as outlined below, and their fuduclary duties of loyalty and faithfulness are owed to the party thoy represent. However, they must treat the other party with honesty and fairness. The SELLERS in this transaction are represented by: Brad Houser and Monica Hayes Skogrnan Realty (Agenl/Brokerage Names). The BUYERS In this transaction are represented by: Brad Houser and Monica Hayes Skolrman Realty (Agent/Brokerage Names). If Agent (Including Appointed Agency) and/or Brokerage (Including Consensual Dual Agency) Namos are shown as representing both parties, a dotalled explanation of representation shell be attached. Further, the BUYERS and SELLERS acknowledge that prior to signing this agreement that their respective Listing or Selling Agent made a written disclosure of type of representation being provided, 20. NOTICE, Any notice required under this agreement shall be doomed perfected when it Is received In writing either by personal delivery or upon the data of the posting of sold notice posted by Certified Mail. Copies of all such notices shall be also sent to the Listing Agent and Selling Agent as designated In this ageement, or their Brokers. For the SELLERS: SaddlebrookMeadows Development Address: Heinz Ave Iowa City IA 52240 For the SE�G Iowa Valley Habitat for Humanity Address: 2401 Scott Blvd Iowa Ctty IA 21. REPRESENTATIONS. It is understood that no representations made by the agent In the negotiation ofthis sale are being railed upon unless Incorporated herein or endorsed In wrli ng. 22. COUNTER PARTS CLAUSE. AN parties agree to be bound to this contract even If every party does not sign on one original, as long as each copy that Is signed is identical to every other signed copy. 23. OTHER PROVISIONS. imyer unaerstanos that one or more sewers are licensect real estate agents. �oSS9r5•S/,r•, Zvd'Gl�i(4rs 6-r� -�rv«•,- Cju.7'�" 'f•'e, �.al L.r, /'// Lr.3�SS yr%// �v ("'Sr�C h`rSte,� treat I" f.t%re 1, e�s�l1-� Cvfi P(•tz,--� l� �s-�r(,.�� C.� �-a ��d�,eran o,oCej Lam- L ur� y / �e� a, pe 6 n G-'y e)d>� Buyer's Initial i I] Seller's Initials ^ C I I Page 3 of 4 24. TIME FOR ACCEPTANCE. If this offer Is not accepted by SELLERS on or before o'clock t ]A.M. ❑P.M,) or shall become vold and all payments shall be repaid to the BUYERS. "' THIS IS A LEGAL, BINDING CONTRACT. IF NOT UNDERSTOOD, SEEK COMPETENT LEGALADVICE "' DATED: 1 2D1�at/D 041-T�7A.M.❑P.M.) Mark Patton ,f k V ' 011/'2G� `j-�1,t+fahtr4, BUYER (PRINT) BUYER (PRINT) BU E ATURE) BUYER (SIGNATURE) This offer Is accepted: 5/-v a 60,4-- Deediiens -Seddlebrook Meadows Develament Inc, Member SELLER (PRINT) SELLER (SIGNATURE) For information only. The Seller(s) acknowledge recelpt of the (DATE) Buyer's Initl Seller's Initials' 20 1/ at /0'-a (A.M.❑P.M.) SELLER (PRINT) SELLER (SIGNATURE) Page 4 of 4 Rvsd 9112 Feasibility and Community Impact Outline the proposed timetable and expected impact for the project. For the timetable, include when requested funding will be committed, project milestones such as rezoning or construction, and when funds will be spent. If applicant plans to apply for funds not committed, include the anticipated date for application and when funds will be awarded. For expected impact, break out beneficiaries by income group. If funded, both the schedule and income breakdown will be used for any project agreement. Project Benefit Narrative Describe project benefits and requirements Such as beneficiary eligibility requirenurts, targeted beneficiaries, etc. In order to be eligible for purchase of a home in this project the applicant must: -be approved into the IVHFH program through an application process that determines income, ability to pay (debt -to -income <43%), and need (e.g. overcrowding, unsafe living conditions, cost burdened, etc.) -have an income less than 60%AMI for Johnson County -have agreed to partner with IVHFH -willing to perform 250 hours of sweat equity per qualified adult -have a family size of at least 5 members Owner Housing Expected Number of Units* Expected Sales Price* 1 $ 200,000.00 1 $ 200,000.00 1 $ 200,000.00 1 $ 200,000.00 Time Table Date Description of Activity 8/1/2019 Use of HOME/CDBG funds to purchase 4 lots To promote the efficient use of public funds, describe how the project will continue to provide public benefits through and beyond the required compliance period. Describe how the project will provide public benefits below rates in the existing market The project will require the units maintain affordability and owner -occupancy for at least 15 years. IVHFH will also maintain a right of first refusal for the life of the mortgage. Historically, Habitat homeowners stay in their homes as they recognize the benefit of a truly affordable home. Of over 100 new homes sold to low income buyers, less than 10 have been sold on the open market. With the value of a well-built home, the community stands to benefit from a reliable source of property tax payments and a sustainable, efficient home that will provide value to the entire neighborhood. In what manner or form will the project proceed if it is awarded less than full funding? If there are several components, how will they be prioritized? The projects will be developed as scheduled with or without funding. However, without the requested funding, the properties will be available to any income at or below 80%AMI. Also, without funding, the homebuyer will be responsible for a substantially higher payment as the lot purchase price will need to be included in the payable portion of the mortgage. The overall cascading affect of less/no funding will result in the decreased number of projects by IVHFH as the need for org. funds goes up. Income Breakdown 0 1 _ Please indicate the population to be served by the proposed program according to the linked income categories. If requesting money for a specific administrative expense (like a staff member's salary), indicate the population served by your entire agency. (Please Note: If funded, this information voII be used as income targeting for your Agreement). Median Income Number of Persons 0 - 30% 31 - 50% 5 51 - 60% 15 61 - 80% Over 80% Total Persons/Households 20 Percent LMI 100.00 Please note the basis for these estimates* The average family size served by IVHFH is 5. Also, the design projected for use for these projects have the capacity for 5 bed. Based on current approved applicants the organization projects to serve 3 households under 60% AMI and one under 50%AMI. Capacity and Applicant History Please list amount of CDBG and/or HQME funds received Wthin the lad four Qtyfsal years and the status of the pmject(s) undertalxn. CDBG and/or HOME funds received Fiscal Year Funds Received Budgeted Amount July 1, 2015 to June 30, 2016 $ 70,000.00 July 1, 2017 to June 30, 2018 $ 40,000.00 July 1, 2018 to June 30, 2019 $ 80,000.00 Amount Date Project Expended Completed $ 70,000.00 6/30/2016 $ 40,000.00 11/30/2019 $ 70,000.00 7/31/2019 Please describe your organization's structure, officers, and staff.* Iowa Valley Habitat for Humanity is a 501(c)3 nonprofit housing organization. It is governed by a Board of Directors and staffs 12 individuals in various areas of the organization. There are currently 17 members of the Board made up of area professionals and supporters. Our Board President is a Principal at Neumann Monson Architects and the Vice President is a Commercial Lender at MidwestOne Bank. IVHFH staffs an Executive Director, Development Director, Finance Manager, Volunteer Coordinator, Community Outreach Director, Helping Hands Coordinator, 2 Construction Managers, 2 Americorps Construction Staff, and 4 Re Store employees (2 managers, 2 staff). IVHFH has been in existence for over 26 years and has been building capacity for the last 15. Please describe the education and experience of key staff who will implement the project (excluding volunteers, board members, and consultants). If consultants are utilized, identify what role theywill play in the project.* Heath Brewer is in his second year as Executive Director and sixth year on staff. Heath ran the Re Store in his previous position and helped increase sales over $500,000 annually and net proceeds over $215,000 annually. Heath attended UNI and Iowa and majored in Accounting and worked in construction throughout high school and college. Christy Shipley, Construction Manager, is in her 15th year with the organization and has overseen the development of over 60 new/rehabbed homes. Christy is trained in the HVAC field and has learned a tremendous amount about energy efficiency throughout her time with Habitat. She is responsible for building our program into one that only builds 5 Star Energy Star rated homes. Tami Bennett, Development Director, is in her 6th year with the organization. Tami is a graduate from the University of Iowa with strong community ties. Tami is responsible for building a sustainable and consistent pipeline of funding for the organization. Theresa Burns, Finance Manager, is in her 12th year with IVHFH. Theresa has developed and maintained all accounting and finance practices for the organization which currently carries over $4 million in mortgage receivables. Theresa is very familiar with all aspects of grant reporting and assists in administering all IVHFH programming. Steve Van Abbema, Construction Manager, is in his 4th year with the organization. Steve previously lived in Maryland where he owned his own residential construction firm. Please summarize your organization's portfolio, including how many units you own and/or manage, how many homes you have built/rehabilitated/sold, and what projects are underway.* IVHFH Mortgage Portfolio: $4.5 million Homes built/rehabbed: 110 Currently underway: New home construction in Tipton. In design process for 3 new homes in Iowa City to begin construction in March. Two will be completed in July and the third in November. Evidence of Fiscal Capacity(?) Audit Summary Issued Financial Statements (1).pdf 289.35KB Evidence of Organizational Capacity(?) Up to four pages of additional infanation about the capacity of the organ¢afion Trey be included. Exarrples of possible evidence Trey be resumes of toy staff, additional descriptions of organizational activities, a other relevant infonation. Is the applicant (including partners, co -applicants, etc.) currently in compliance with all federal, state and local laws, rules and regulations, including any CDBG and/or HOME funded projects?* 6 Yes O No O Currently in litigation Please identify relevant market factors that verify the demand for the proposed project based on the City of Iowa City Housing Program Guidelines policy. The City may require a Market Analysis for large or complicated projects to support the need before entering an agreement. "This does not apply to tenant based rental assistance, horn o na rehabilitation, down payment assistance, a OiDO operating expenses. IOWA VALLEY HABITAT FOR HUMANITY ._ lowa valley • ' • Habitat for Humanity' FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2018 AND 2017 TABLE OF CONTENTS Page No. INDEPENDENT AUDITOR'S REPORT ............... 1-2 FINANCIAL STATEMENTS Statements of Financial Position .................... 3-4 Statements of Activities ........................... 5 Statements of Functional Expenses .................. 6-7 Statements of Cash Flows ......................... 8 Notes to Financial Statements ..................... 9 - 22 @.,w Clifton LarsonAllen INDEPENDENT AUDITORS' REPORT Board of Directors Iowa Valley Habitat for Humanity Iowa City, Iowa CliftonLarsonAllen LLP CLAconnect.com We have audited the accompanying financial statements of Iowa Valley Habitat for Humanity (the Organization), which comprise the statements of financial position as of June 30, 2018 and 2017, and the related statements of activities, functional expenses, and cash flows for the years then ended, and the related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. I Ame or 9Nexixia International Board of Directors Iowa Valley Habitat for Humanity Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Iowa Valley Habitat for Humanity as of June 30, 2018 and 2017, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. IdIiiMG, WTz-:MG , I IMI 44 Cedar Rapids, Iowa December 18. 2018 (z) IOWA VALLEY HABITAT FOR HUMANITY STATEMENTS OF FINANCIAL POSITION JUNE 30, 2018 AND 2017 2018 2017 ASSETS CURRENT ASSETS Cash and Cash Equivalents $ 40,382 $ 71,272 Restricted Cash 26,065 44,587 Accounts Receivable 23,389 12,101 Contribution and Grant Receivables 27,761 - Inventory - Land 239,816 225,235 Inventory - Houses - 53,930 Inventory - Houses Under Construction 246,891 369,361 Current Portion of Land and Building Usage Lease 70,000 70,000 Current Maturities of Mortgages Receivable 335,713 330,561 Total Current Assets 1,010,017 1,177,047 PROPERTY AND EQUIPMENT Land 85,500 85,500 Buildings and Improvements 377,039 377,039 Leasehold Improvements 43,129 43,129 Equipment 107,004 132,385 Total 612,672 638,053 Less: Accumulated Depreciation (178,879) (175,338) Net Property and Equipment 433,793 462,715 OTHER ASSETS Prepaid Loan Reserve 21,379 21,379 Investment in ICID Habitat Leverage, LLC 741,212 749,071 Guaranty Fee, Net Amortization of $21,548 and $17,854, Respectively 4,310 8,004 Present Value of Land and Building Usage Lease, Less Current Portion Above 175,363 241,985 Mortgages Receivable, Less Current Maturities and Unamortized Mortgage Discount of $2,797,004 and $2,737,993, Respectively 2,137,095 2,138,056 Total Other Assets 3,079,359 3,158,495 Total Assets $ 4,523,169 $ 4,798,257 See accompanying Notes to Financial Statements. IOWA VALLEY HABITAT FOR HUMANITY STATEMENTS OF FINANCIAL POSITION JUNE 30, 2018 AND 2017 LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts Payable Accrued Payroll Liabilities Accrued Expenses Short -Term Notes Payable Current Maturities of Long -Term Notes Payable Current Maturities of Grants Payable Total Current Liabilities LONG-TERM LIABILITIES Notes Payable, Less Current Maturities and Unamortized Loan Closing Costs of $10,596 and $11,751, Respectively Grants Payable, Less Current Maturities Above Total Long -Term Liabilities Total Liabilities NET ASSETS Unrestricted Temporarily Restricted Total Net Assets Total Liabilities and Net Assets iieyf:�ieyrr $ 68,002 $ 127,999 31,583 24,167 8,070 8,070 206,323 168,379 172,364 200,792 158,498 68,664 644,840 598,071 2,436,030 2,532,635 421,714 499,090 2,857,744 3,031,725 3,502,584 624,412 396,173 1,020,585 3,629,796 710,973 457,488 1,168, 461 $ 4,523,169 $ 4,798,257 See accompanying Notes to Financial Statements. 4 r r F Z ON � w Z Z = F Q >� 0 U o Q O � w m Q O w Z aZ = w p w 0 Q Q w ~ (n U Of Q O w r rn rrn vrn �rn corm rnu�v m ov vm u� co m rn� NN v� rm� rvu� m co co u�r rn u� co r mco cov corn rnu�rn ��m r �v u�� m m v N LL� O N LL� V rn rn � M N fA fA N N rn rn W W N fA fA of I� rn V of � rn O � m rn LL� V V (O O V V of N LL� M OQ N V O N V of LL� M V N V m LL� V (O IN � O rn W r � N N c D fA fA of V in mN cornm ro v rn o yr rn� v co N o m m v O v rm co 0 F � N N N N v N IN r �yj of M v v o co co u� rn K fA fA rn r W W LL� V O N r M M I� W O V LL� rn M N of V LL� N O O V of (O of N LL� r LL� U) N V U) O V m m m of V rn m O N V I� rn W N c fA fA E N F c O N O i c W V! c O Z U O O 1/10 i O j 1/1 X w 0N Q K U O O O Q W OKC l0 N } W a U O w- O } z 10 a a Q - E m o a a D W LL F 3 Z (n c O J (n "O N O 3 (n N 1/1 N u)) f' m O 0 = c O U a 0 O Y U U d O N l0 c O U N c c 'm Z O C U c j E O> N � U O O_ W W oao >roa 0 m_WK K a m z m a w mw y y� n n i» m m U q5 O W Y m o m o W o w �0 o E D F o y U o ~ F C C !� t w Q (� F Z m F ( w U) J n O O a�i d O1 a` S O O N .- .- l0 "O m e "O z O Q Q co �U UC�cn m�� �O�-CD m m m 0 3 Q F nm Of z xm�w m m w m w U z z N U Q in N H� N N X W Ff3 O H fA � �� �� c L W � 2 m VPI (6 V (O V (O O c r O N V O M N YO H rfl in m O N ly Mc c0 r O co N O fA N I� L O M O Im O O M O N I� O M O � V (O O m Z N N M M M N N O d ) � fA I O N mw a m'Q N 'E 1 t N (n E m W N UI c Q m 9C- N C O O O Q N N LL c m w 2 L x CO 0-N p E c jn c W W d d H w N (6 N 'U C c U= m O Z� O O O N E O a MD N N O =O ' E ~ W m E E m 2 -moo c"i o w w ow L Y L X cn W W a a Q O O F U- 0 0 00 �— 0 w C N E N (6 in (6 U (6 LL O N U Q U) HV � N X W Ff3 H fA V V V O' N� O O O'''''' � (6 � C J LL � 2 m VPI � H rfl N U_ Z O (6 � O A V N m � V (O OL O N ,IKVZ VPI I I c O O N a 'E t (n E m W N UI c Q w O Q LL c N c N - X [0 0-X m m U' a co E c -- c W W N N H .0 .c -O C '� U= O O N .� N Z.� 0 0 0 !1 ) w N O N O 0 E H W m E E m 2 ->o tF c"i o w w o L L L Xcn W WaaQOO U 0 000E —O w IOWA VALLEY HABITAT FOR HUMANITY STATEMENTS OF CASH FLOWS YEARS ENDED JUNE 30, 2018 AND 2017 CASH FLOWS FROM OPERATING ACTIVITIES Change in Net Assets Adjustments to Reconcile Decrease in Net Assets to Net Cash Used by Operating Activities: Bad Debt Depreciation and Amortization In -Kind Contributions Forgiveness of Debt Discount on Contributed Lease Amortization of Mortgages Receivable Discount Decrease in Deposits Restricted for Operating Purposes (Gain) Loss on Sale of Assets Changes in Operating Assets and Liabilities: Accounts and Grants Receivable Inventory Accounts Payable Accrued Expenses Net Cash (Used in) Provided by Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES Collections on Mortgages Receivable Proceeds from Sale of Property and Equipment Purchases of Property and Equipment Distribution from Investment Net Cash Provided by Investing Activities CASH FLOWS FROM FINANCING ACTIVITIES Borrowings on Short -Term Debt Payments on Short -Term Debt Borrowings on Long -Term Debt Payment on Long -Term Debt Proceeds on Grants Payable Net Cash (Used in) Provided by Financing Activities NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS Cash and Cash Equivalents - Beginning CASH AND CASH EQUIVALENTS - ENDING SUPPLEMENTARY CASH FLOW INFORMATION Interest Paid NONCASH ITEMS Inventory and Equipment Contributed by Donors Mortgages Received in Exchange for Homes Sold Noncash Purchases of Property and Equipment 2018 2017 $ (147,876) $ (192,395) 7,363 3,374 32,874 36,827 (23,002) (91,590) (57,542) (176,780) 66,622 65,827 (59,011) (75,665) 18,522 15,196 2,263 (13,145) (46,412) (13,067) (156,373) (479,684) (15,599) (12,651) 7,416 (13,237) (370,755) (946,990) 355,218 361,954 2,000 - (2,800) (104,642) 7,859 7,859 362,277 265,171 100,000 50,685 (17,883) (54,611) 193,444 653,000 (367,973) (191,198) 70,000 79,999 (22,412) 537,875 (30,890) (143,764) 71,272 215,216 $ 40,382 $ 71,272 $ 58,601 $ 52,015 $ 27,170 $ 80,224 $ 418,422 $ 15,968 $ 554,809 See accompanying Notes to Financial Statements. IOWA VALLEY HABITAT FOR HUMANITY NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018 AND 2017 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organizational Description Iowa Valley Habitat for Humanity (the Organization) is an Iowa nonprofit corporation, incorporated in 1993. The Organization provides housing for persons that would not otherwise qualify for conventional financing in Iowa City, Iowa and surrounding areas. The Organization provides interest free mortgages to families with payments over fifteen to thirty year periods. Each family receiving a home is required to provide five hundred hours of donated labor to the construction of their home. The title of the home transfers to the homebuyer at the date of sale. The Organization funds its operations through contributions, grants, and other fundraising events, and uses these funds to construct the housing. The Organization operates a "ReStore" facility that offers new and used construction materials and supplies to the public. The ReStore receives substantially all items for sale through donation from businesses and individuals. All proceeds from ReStore sales are used in the operations of the Organization. The Organization's fiscal year ends on June 30. Significant accounting policies are presented below. Use of Estimates in Preparing Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenses, gains, losses and other changes in net assets during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents The Organization considers all highly liquid investments purchased with an initial maturity of three months or less to be cash and cash equivalents. At times, amounts may exceed FDIC insured limits. Restricted Cash Restricted cash consists of cash held in separate accounts for purposes designated by New Markets Tax Credit or donors. Recognition of Contribution and Grant Revenue All contribution and grant revenue are considered to be available for unrestricted use unless specifically restricted by the donor or by law. Amounts received which are designated for future periods or restricted by the donor for specific purposes are reported as temporarily restricted support. However, if a restriction is fulfilled in the same time period in which the revenue is received, the Organization reports the support as unrestricted. IOWA VALLEY HABITAT FOR HUMANITY NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018 AND 2017 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Recognition of Contribution and Grant Revenue (Continued) When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. No allowance for doubtful accounts was deemed necessary. The Organization received donated materials for use in home construction. Donated materials not used in home construction are made available to the public at salvage values through the Restore. The amount of donated materials used in construction are estimated and reflected as revenue and costs. Materials sold through the Restore are recorded as revenue at the time of the sale. Mortgages Receivable Mortgage notes receivable represent the amount charged to the homeowners for Habitat houses built and secured by real estate that are to be paid back over an established and mutually agreed period of time. Mortgages are typically paid back on a monthly basis over 15-30 years. The mortgages receivable bear no interest. Notes are discounted for reporting purpose based on the date of origination. Habitat for Humanity International develops a discount rate once a year on June 30. The difference between the face amount of the note and its present value is accounted for as a discount that is recorded as a reduction to the mortgages receivable and amortized over the life of the mortgage. At June 30, 2018 and 2017, the Organization has individually evaluated mortgage notes for impairment. Management believes all mortgages receivable are realizable through either collection or foreclosure proceeds therefore no allowance is deemed necessary. Inventories Inventories consist of land, houses, and houses under construction. Inventories are valued at cost based on a specific identification method. In -kind inventory is recorded at its estimated market value when received. Inventory for homeownership is expensed to cost of production sold at time of sale to homeowners. Property and Equipment Property and equipment purchased are stated at cost. The Organization typically capitalizes items over $500. Contributed items are recorded at fair market value at date of donation. If donors stipulate how long the assets must be used, the contributions are recorded as restricted support. In the absence of such stipulation, contributions of property and equipment are recorded as unrestricted. Depreciation of property and equipment is computed on a straight-line basis over the estimated useful lives of the assets, which range from five to thirty- nine years. 10 NOTE 1 IOWA VALLEY HABITAT FOR HUMANITY NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018 AND 2017 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Impairment of Long -Lived Assets The Organization reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount of by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of carrying amount or the fair value less costs to sell. Investment in ICD Habitat Leverage, LLC The Organization participates in a New Markets Tax Credit (NMTC) program. The program provides funds to eligible organizations for investment in "qualified low-income community investment'. Program compliance requirements include creations of a promissory note and investment in a qualified community development entity. Tax credit recapture is required if compliance requirements are not met over a seven-year period. Management records the investment at cost and estimates the fair value of the investment to be no less than cost. Net Assets Net assets and revenues, gains, and losses are classified based on donor imposed restrictions. Accordingly, net assets of the Organization and changes therein are classified and reported as follows: Unrestricted — Resources over which the board of directors has discretionary control. Temporarily Restricted — Those resources subject to donor imposed restrictions which will be satisfied by actions of the Organization or passage of time. Permanently Restricted —Those resources subject to a donor imposed restriction that they be maintained permanently by the Organization. Management has determined that the Organization has no permanently restricted net assets. Advertising The Organization expenses advertising costs as incurred. Mortgages Received Transfers to homeowners represent the amount of completed homes built by the Organization. These homes are sold to families that have qualified for a Habitat home (earn less than 80% of median income) during the current fiscal year. The home buyer secures some of all of the financing from a third party lender. At the time of the sale a mortgage is recorded as well as revenue for the sale. Total payments of all mortgages will not exceed the affordability factor. Noninterest-bearing mortgages have been discounted based upon prevailing market rates for low-income housing at the inception of the mortgages. Utilizing the effective interest method, this discount will be recognized as income over the term of the mortgage. 11 NOTE 1 NOTE 2 IOWA VALLEY HABITAT FOR HUMANITY NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018 AND 2017 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Tithe to Habitat for Humanity International The Organization disburses a voluntary approved tithe to Habitat for Humanity International. Functional Allocation of Expense The costs of providing various program and supporting activities have been summarized on a functional basis in the statement of functional expenses. Accordingly, certain costs have been allocated among the programs and supporting activities benefitted. Income Taxes The Organization is exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code and a similar section of the Iowa income tax law, which provides income tax exemption for corporations organized and operated exclusively for religious, charitable, or educational purposes. The Internal Revenue Service has not classified the Organization as a private foundation. The Organization files informational returns in the U.S. federal jurisdiction. The Organization follows the accounting standard for evaluating uncertain tax positions and has determined that it was not required to record a liability. RESTRICTED CASH Restricted cash consists of the following for the years ending June 30: 2018 2017 NMTC Purposes $ 18,573 $ 37,095 Washington County Homeowners Escrow Payments 2,260 2,260 Helping Hands Projects 5,232 5,232 $ 26,065 $ 44,587 NOTE 3 OPERATING LEASE The Organization entered into a lease agreement with the City of Iowa City for office and warehouse space beginning in January 2012. The lease agreement calls for semi-annual rental payments of $10,066. The lease expires in December 2021. The lease also has three options to renew for five-year terms each. Based on the estimated fair value of the space, the Organization has recorded an asset for the present value of the land and building usage lease. The calculation of the present value of the lease and the related discount to present value, 1.2%, are based on certain estimates of the fair value of the space, its annual lease value, and a discount rate. The land and building usage receivable is amortized to rent expense over the life of the lease. For the years ending June 30, 2018 and 2017, the Organization recognized $70,000, respectively, of rent expense under this lease. 12 IOWA VALLEY HABITAT FOR HUMANITY NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018 AND 2017 NOTE 3 OPERATING LEASE (CONTINUED) The calculation of the land and building usage receivable from the City of Iowa City and the related discount to present value is based on certain estimates of the fair value of the space, its annual lease value, and a discount. Management believes the land and building usage receivable and discount to present value are reasonable estimates based on information currently known. However, circumstances impacting these estimates could occur which could significantly changes these calculations. Land and Building Usage Receivable Less: Discount to Present Value Net Present Value of Land and Building Usage Receivable Amounts due in Years Ending June 30: Less than One Year One to Five Years More than Five Years Total Future minimum rental payments to the City of Iowa City are as follows: Year ending June 30 $ 250,799 (5,436) $ 245,363 $ 70,000 180,799 $ 250,799 2019 $ 20,131 2020 20,131 2021 20,131 2022 11,743 $ 72,136 NOTE 4 MORTGAGES RECEIVABLE Mortgages receivables consisted of 84 mortgages bearing no interest. The mortgages mature from January 2019 to February 2048. The mortgages are discounted for reporting purposes at rates ranging from 7.39%to 9.0%. Total mortgages receivable, less unamortized discounts were $2,472,808 and $2,468,617 at June 30, 2018 and 2017, respectively. Many of these mortgages serve as collateral for the various notes and grants payable of the Organization. The mortgage receivables are noninterest-bearing mortgages. When the first mortgage on each home is less than the market value, the Organization also obtains a second mortgage for the difference between the first mortgage and market value. The second mortgage, which is forgiven at the end of the first mortgage term, is assumed to have no economic value and, accordingly, is not recognized in the Organization's financial statements. 13 IOWA VALLEY HABITAT FOR HUMANITY NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018 AND 2017 NOTE 4 MORTGAGES RECEIVABLE (CONTINUED) At June 30, the composition of mortgages receivable is as follows: 2018 2017 Mortgages Receivable $ 5,269,812 $ 5,206,610 Less: Unamortized Discount (2,797,004) (2,737,993) Subtotal 2,472,808 2,468,617 Less: Current Portion (335,713) (330,561) Mortgages Receivable, Net of Current Portion $ 2,137,095 $ 2,138,056 The following tables show an aging analysis of the loan portfolio by time past due as of June 30: June 30, 2018 30-89 90 Days or Current Days Past Due More Past Due Total Mortgages Receivable $ 4,737,927 $ 332,883 $ 199,002 $ 5,269,812 June 30, 2017 30-89 90 Days or Current Days Past Due More Past Due Total Mortgages Receivable $ 4,696,574 $ 320,628 $ 189,408 $ 5,206,610 NOTE 5 INVESTMENT IN ICD HABITAT LEVERAGE, LLC In 2012, the Organization participated in a new Markets Tax Credit (NMTC) program to create an investment in a community development entity (CDE), namely ICD Habitat Leverage, LLC. The goal of the NMTC program is to spur revitalization efforts of low-income and impoverished communities across the United States and its Territories by providing tax credit incentives to investors in a certified community development entity. NMTC financing allows organizations such as affiliates of Habitat for Humanity International to receive low -interest loans or investment capital from community development entities, primarily financial institutions, which allow their investors to receive tax credits. As a result of participation in the NMTC program, the Organization has obtained low interest rate loans. The loans are guaranteed by Smith NMTC Associates, LLC which also provides administrative support for the NMTC program on behalf of affiliates participating in the NMTC program. 14 IOWA VALLEY HABITAT FOR HUMANITY NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018 AND 2017 NOTE 5 INVESTMENT IN ICD HABITAT LEVERAGE, LLC (CONTINUED) Transaction with the CDE for the years ended June 30 at cost basis is as follows: 2018 2017 Investment - Beginning of Year $ 749,071 Distributions (7,859) Investment - End of Year $ 741,212 NOTE 6 NOTES PAYABLE Short-term notes payable consist of the following as of June 30: Description Note payable to Great Western Bank, requiring monthly payments of $389 at 0% interest, with final payment due November 2018. This note is secured by property located in Iowa City, Iowa. Note payable to Hills Bank calling for monthly interest payments and a final payment of unpaid principal and interest in September 2017. The note carries an interest rate of 4.75% and is secured by a specific property located in Tiffin, Iowa. $ 756,930 (7,859) $ 749,071 2018 2017 $ 68,853 Note payable to Hills Bank, requiring monthly interest payments, at 5% interest, with final payment of principal and interest due October 2018. This note is secured by substantially all assets of the Organization. 87,470 Note payable to Hills Bank, requiring monthly interest payments, at 4.75% interest, with final payment of principal and interest due January 2019. This note is secured by a specific property located in Iowa City, Iowa. Total $ 73,521 50,685 44,173 50,000 $ 206,323 $ 168,379 15 NOTE 6 IOWA VALLEY HABITAT FOR HUMANITY NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018 AND 2017 NOTES PAYABLE (CONTINUED) Long-term notes payable consist of the following as of June 30: Description Notes payable to Habitat for Humanity of Iowa, requiring monthly installments ranging from $246 to $1,321, interest ranging from 2% to 4% with final payments due between February 2020 and December 2033. Notes are secured by certain 2018 2017 mortgage notes secured by property in Coralville, Iowa City, Marengo, North Liberty, Tipton, and Washington, Iowa. $ 526,725 $ 584,261 Notes payable to the City of Iowa City, requiring annual installments ranging from $1,619 to $2,320, at 0% interest, with final payment due March 2032. Notes are secured by certain mortgage notes that are also secured by property in Iowa City, Iowa. 55,555 59,494 Notes payable to the Housing Trust Fund of Johnson County, requiring monthly installments ranging from $131 to $647, with interest rates ranging from 0% to 3%, with final payments due between July 2020 and January 2029. Imputed interest totals $41,801 as of June 30, 2018. Notes are secured by certain mortgage notes that are also secured by property in Iowa City, Coralville, and Hills, Iowa. Note payable to the Housing Trust Fund of Johnson County, requiring annual payment of $1,000, at 0% interest, with final payment due April 2025. Note payable to WB Microloan Fund, requiring annual payments of $500 and $1,000 plus interest, at 2.5%, with final payments due in December 2022. Note payable to US Bank, requiring monthly payments of $521 at 2.5% interest, with final payment due November 2018. This note is unsecured. 399,633 405,613 6,000 7,000 7,500 9,000 2,693 9,042 16 NOTE 6 IOWA VALLEY HABITAT FOR HUMANITY NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018 AND 2017 NOTES PAYABLE (CONTINUED) Description (Continued) Notes payable to MidWestOne Bank, requiring monthly payments ranging from $385 to $489 at interest rates ranging from 0% to 1.5%, with final payments due between October 2031 and October 2037. Imputed interest totals $11,434 as of June 30, 2018. Notes are secured by property located in Iowa City, Iowa. Note payable to ICD AV, LLC, maturing August 2027, requiring semi-annual interest payments at an interest rate of 0.7309% for the first seven years of the loan. The loan has a put option that is exercisable after year seven at which time if the loan is not called, then fully amortizable semi-annual payments are required over the remaining term of the note. The loan is secured by substantially all the assets acquired by the Organization from project loan proceeds (See Note 5). 2018 2017 $ 155,453 $ 164,733 1,075,480 1,075,480 Note payable to University of Iowa Community Credit Union, requiring monthly payments of $375, at 0% interest, with final payment due January 2034. Imputed interest totals $15,311 as of June 30, 2017. This note is secured by property located in Iowa City, Iowa. 70,500 75,000 Note payable to Hills Bank, requiring monthly payments of $333, at 0% interest, with final payment due October 2038. Imputed interest totals $21,873 as of June 30, 2018. This note is secured by property located in Iowa City, Iowa. 81,334 85,333 Note payable to Hills Bank, requiring monthly payments of $435, at 1.5% interest, with final payment due October 2033. Imputed interest totals $8,608 as of June 30, 2018. This note is secured by property located in Iowa City, Iowa. 71,302 75,367 17 IOWA VALLEY HABITAT FOR HUMANITY NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018 AND 2017 NOTE 6 NOTES PAYABLE (CONTINUED) Description (Continued) Notes payable to Hills Bank, requiring monthly payments ranging from $1,292 - $1,880, carrying interest rates of 4.75%, with final payments of principal and interest due between July 2021 and December 2021. The notes are secured by specific properties located in Iowa City and Kalona, Iowa. Note payable to Sheffield, requiring monthly payments of $115, at 0% interest, with final payment due August 2019. This note is secured by equipment. Note payable to Direct Capital, requiring monthly payments of $540, at 6.02% interest, with final payment due October 2019. This note is secured by a vehicle. Total Notes Payable Less: Current Portion Less: Unamortized Loan Closing Costs Less: Imputed Interest on 0% Loans Long -Term Portion Maturities of long-term notes payable are as follows: Year ending June 30 2018 $ 255,550 1,956 2017 $ 280,648 3,337 8,336 14,066 2,718,017 2,848,374 (172,364) (200,792) (10,596) (11,751) (99,027) (103,196) $ 2,436,030 $ 2,532,635 2019 $ 172,364 2020 169,390 2021 155,863 2022 289,752 2023 105,427 Thereafter 1,825,221 Total $ 2,718,017 NOTE 7 GRANTS PAYABLE Grants received with conditions and or continuing compliance requirements are recognized when earned and conditions are satisfied. If mortgages are obtained to secure the grantor's interest, grant revenue is recognized over the term of mortgages. Grants payable consists of the following as of June 30: 18 IOWA VALLEY HABITAT FOR HUMANITY NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018 AND 2017 NOTE 7 GRANTS PAYABLE (CONTINUED) Description 2018 2017 Grants payable to the City of Iowa City at 0% interest, with release on dates ranging from July 2018 to February 2033, provided certain terms are fulfilled. These grants are pledged by certain mortgages that are secured by property located in Iowa City, Iowa. $ 412,120 $ 357,120 Grants payable to the City of Iowa City at 0% interest, with amounts forgiven each year ranging from $2,182 to $7,333, with full release on dates ranging from October 2020 to October 2021. These grants are pledged by certain mortgages that are secured by property located in Iowa City, Iowa. Grant payable to Iowa Finance Authority at 0% interest, with release based on five year retention by the owners of property located in Tipton, Iowa. Grant payable to Iowa Finance Authority at 0% interest, with release based on ten year retention by the owners of property located in Iowa City, Iowa. Grant payable to Housing Trust Fund of Johnson County at 0% interest, with release March 2022. This grant is pledged by certain mortgage notes that are secured by property located in Iowa City, Iowa. Grant payable to Housing Trust Fund of Johnson County at 0% interest, with release evenly over five years until maturity January 2021. This grant is pledged by certain mortgage notes that are secured by property located in Tipton, Iowa. Grants payable to Federal Home Loan Bank (FHLB) at 0% interest with release dates based on five year retention by the owners of property located in Iowa City, Iowa. Total Grants Payable Less: Current Portion Long -Term Portion 72,293 83,037 17,500 31,000 24,500 28,000 25,000 25,000 14,999 19,999 13,800 23,598 580,212 567,754 (158,498) (68,664) $ 421,714 $ 499,090 19 IOWA VALLEY HABITAT FOR HUMANITY NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018 AND 2017 NOTE 7 GRANTS PAYABLE (CONTINUED) Grants are scheduled to be released over the following years: Year ending June 30 2019 $ 158,498 2020 30,412 2021 40,245 2022 41,928 2023 7,129 Thereafter 302,000 Total $ 580,212 NOTE 8 TEMPORARILY RESTRICTED NET ASSETS Temporarily restricted net assets are available for the following purposes for the years ending June 30: Home Construction Future Operations NMTC Building Lease Total NOTE 9 RETIREMENT PLAN 2018 2017 $ 33,229 $ 5,232 99,028 103,196 18,553 37,075 245,363 311,985 $ 396,173 $ 457,488 The Organization sponsors a SIMPLE IRA Plan (the Plan) covering all employees who received at least $5,000 in compensation, as defined by the Plan, during the previous year and who are reasonably expected to receive at least $5,000 in compensation during the current year. The Organization matches participant's contributions to the Plan up to 3% of the individual participant's compensation. The Organization's contribution into the Plan for the years ended June 30, 2018 and 2017 totaled $8,874 and $8,823, respectively. NOTE 10 COMMITMENTS The Organization entered into a contract with a third party service provider for communication services beginning February 2017. The contract is for 36 months calling for monthly payments of $390. Commitments are as follows: Year ending June 30: 2019 $ 4,680 2020 3,120 Total $ 7,800 20 IOWA VALLEY HABITAT FOR HUMANITY NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018 AND 2017 NOTE 11 EQUIPMENT LEASE The Organization entered into an agreement to lease equipment beginning May 2018. The lease agreement is for 60 months calling for monthly payments of $236 plus applicable taxes. Commitments are as follows: Year ending June 30 2019 $ 2,833 2020 2,833 2021 2,833 2022 2,833 2023 2,597 Total $ 13,929 NOTE 12 RELATED PARTY TRANSACTIONS The Organization contributed $9,000 and $12,000 to Habitat for Humanity International for the years ended June 30, 2018 and 2017, respectively. The Organization paid $7,500 to Habitat for Humanity International for association fees for each of the years ended June 30, 2018 and 2017. The Organization also paid $4,800 and $600 to Habitat for Humanity International for a Restore collaborative project for the years ended June 30, 2018 and 2017, respectively. The Organization has outstanding notes payable to Habitat for Humanity of Iowa (HFHIA) totaling $526,725 and $584,261 as of June 30, 2018 and 2017, respectively. Total payments to HFHIA were $78,893 and $57,269 for the years ended June 30, 2018 and 2017, respectively. The Organization also paid HFHIA $20,400 and $18,000 for Americorp fees for the years ended June 30, 2018 and 2017, respectively. The Organization also made a contribution to HFHIA in the amount of $1,250 for the year ended June 30, 2018. The Organization has one mortgage receivable from an employee. The mortgage agreement originated prior to employment of the individual. The Organization received $4,452 in mortgage payments from this employee for each of the years ended June 30, 2018 and 2017. The Organization sold a previously donated vehicle during the year ended June 30, 2018 to a previous employee of the organization for $1,500 resulting in a gain on the sale of $866. During the year ended June 30, 2018, one of the homes sold on the open market was sold to a current employee of the Organization. The employee obtained financing with a third party financial institution and the Organization holds a silent second mortgage of $25,500, of which, 50% is due to the Organization only upon future sale of the property. NOTE 13 RECLASSIFICATION OF AMOUNTS Certain amounts have been made to the 2017 financial statement presentation to correspond to the current year format. Total assets, net assets and change in net assets were unchanged due to these reclassifications. 21 IOWA VALLEY HABITAT FOR HUMANITY NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018 AND 2017 NOTE 14 SUBSEQUENT EVENTS Management has evaluated subsequent events through December 18, 2018, the date the financial statements were available to be issued. Events or transactions occurring after June 30, 2018, but prior to December 18, 2018, that provided additional evidence about conditions that existed at June 30, 2018, have been recognized in the financial statements for the year ended June 30, 2018. Events or transactions that provided evidence about conditions that did not exist at June 30, 2018, but arose before the financial statements were available to be issued, have not been recognized in the financial statements for the year ended June 30, 2018. Subsequent to year end, the Organization obtained a line of credit with a local financial institution to finance construction costs. The line of credit allows for borrowings up to $60,000 bearing a variable interest rate of 0.75% above the Index (which is the prime rate as published in the Wall Street Journal). Balance of principal and interest is due at maturity March 2019. In August 2018, the first draw was made in the amount of $18,169. In August 2018, subsequent to year end, the Organization sold a home to a partner family in which the homeowner financed with a local financial institution and the Organization holds a forgivable mortgage. Two properties in Iowa City, Iowa were purchased for a total of $60,000 with HOME funds from the City of Iowa City in September 2018, subsequent to year end. 22 ProjectAcquisition Project Address To be determined Activity Type Rental Housing CITY STEPS Priority Expanding affordable rental and owner housing opportunities CITY STEPS Goal Increase the supply of affordable rental housing Amount Requested $200,000 Project Description Acquire two lots and construct two 3-bedroom, fully accessible homes to be operated as 6 SRO units in the Supported Community Living Program which provides supportive services to low income adults with intellectual disabilities. Repayment Terms Conditional occupancy loan (forgiven if follows requirements) Affordability Period 10 years proposed Property Taxes Tax exempt % CDBG/HOME Funded 33% Project Budget Discussion Total budget is $600,000 with matching funds coming from private financing. Total CDBG/HOME cost per unit is $33,333. Expected rents of $468 per SRO unit. If not awarded full funding, MYEP will make an effort to utilize any funds awarded. Beneficiaries 0-30% AMI 100% 6 households Project Coordination with None noted for this project Existing Services & other Services Available in the Community Timeliness and Capacity to Applicant is in good standing and has successfully completed previous CDBG/HOME Successfully Complete the rental projects, often exceeding beneficiary targets. Staff has no current concerns Proposed Project about capacity to successfully administer this project. Staff Concerns/Notes 1) May need to comply with federal procurement standards (sealed construction bids) for the proposed work. 2) Section 3 may require opportunities for training and employment for LMI persons if a contractor performs construction duties which total $100,000 in HUD funds. 3) Construction must begin within one year and units must be occupied within 6 months of completion or a marketing plan will be required. Project location must also meet HUD site and neighborhood standards 4) If 5 or more HOME -assisted units, must implement City's Affirmative Marketing Plan through the projects affirmative marketing plan. 5) Project must comply with City underwriting requirements. With mortgage interest rates increasing and HOME rents expected to decrease, is there any concern about adequate cash flow or borrowing the required money for an expected monthly payment of $870? 6) Pro Forma should show first year loss from delay in tax exemption. S:\DEV\CDBGHOME\FY20`Applications\FY20 Staff reports FINAL.xlsx General Information and Project Need Ci Select Language I Community Development Block Grant (CDBG) and/or HOME Investment Partnership (HOME) programs provide funding to aid in the development of viable urban communities and in the provision of safe and decent affordable housing. Applications are due Tuesday, January 18, 2019 at noon. This year, $625,000 are estimated to be available through this competitive process. Please reviewthe FY20 CDBG/HOME Application Guide for more information about eligible activities. Please submit one project proposal per application. Questions can be directed to kirk-lehmann@iowa-city.org or contact Neighborhood Services at 319-356-5230. Additional assistance, and hard copy applications, are available upon request Project Information ' . Project name * MYEP- Lots For Accessible Homes Project Address* Street Address unknown Address Line 2 City Iowa City Fbstal / Zip mde 52245 Type of Project(?) © Rental Housing ❑ Owner Housing ❑ Public Facility ❑ Other Type of Activity(?) © Acquisition ❑ New Construction ❑ Rehabilitation ❑ Direct Assistance ❑ Other Applicants Applicant Name * Mayor's Youth Empowerment Program Applicant Address* State / Province / fiagion IA CcunUy USA Street Address 407 Highland Ct. Address Line 2 City Iowa City Fbstal / Zip Oxle 52240 Contact Person, Title* Kari Wilken, Chief Operating Officer Phone Number* 319-341-0060 Email* k.wilken@myep.us DUNS Number(?) 011402877 State / Province / fisgion IA Counfiy USA DUNS # Verification*(?) Go to http:#fedgov.dnb.com`webfamto lookup a create a DINS number. Provide a copy of the email you readve with your confirmed DINS number. DUNS.docx 11.48KB CAGE Code (?) Obtain by registering on SAMgov 3YXT9 SAM.gov Registration*(?) All subreapienls rrust register on SAMgov before a legally binding agreement can be signed. Attach your SAMgov Entity F4egistraton Sumrery as evidence that this has been completed. SAM verification.pdf 412.9KB General Information Type of Lead Applicant* G Community Housing Development Organization O Private non-profit organization 6 Private for -profit, individual or partnership applicant O Public Organization W-9 Form*(?) (F4equest forTaxpayer ID# & Cerlificaton) W-9 Form MYEP.pdf 98.73 KB Organizational Status * (?) Go to https://sm.ima.gm/smmhtbusiness to lookup the organizafion applying fa funds. Provide a copy of the Business Entity Sumrery screen. Certificate of Existence.pdf 338.84KB Amount of Funds Requested* $ 200,000.00 Did you attend an Applicant Workshop?* 0 Yes 0 No Provide a few lines describing the proposed project* We propose the purchase of land. We will purchase two lots with the awarded funds. We will then finance the construction of two, 3-bedroom fully accessible homes. These two homes will be operated within our Supported Community Living Program where we provide 24-hour daily supports and services to adults with intellectual disabilities. We currently have a waiting list of individuals needing accessible living environments and are unable to meet this need. Please specifythe one or two most applicable priority need(s) this application addresses, as shown in the 2016-2020 CITY STEPS Plan. Explain how this project will meet this/those need(s).* Expanding Affordable Rental and Owner Housing Opportunities For Low -Income and Persons With Disabilities. With the help of these funds, we will provide a decent housing opportunity for individuals with disabilities who do not have other reasonable options. Accessible housing options are very limited and we have a waiting list of people needing this specific type of housing. Budget and Resources Type of Funding Requested* Financing tears will be based on project feasibility and the ability to repay. Terms approved by City Council may be different than what is requested. Grant Requested Grant Terms Principal Amount Affordability Period M $ 200,000.00 10 years Source of Funds a Rease enter below the types of funding and arrounls requested for the proposed project, includingif the funding is conTifted. If not a loan, leave loan tears blank Select the blank space for possible sources of income, a enter your own. Public Resources Funding Source and Type (?) Amount Interest rate Term(?) Committed Iowa City HOME/CDBG $ 200000.00 0 5 yrs No Total Public Funds $ 200,000.00 For uncommitted funds, please indicate when the applicant will applyfor funds If awarded we will begin the financing for the homes with one of our partner banks. Private Resources Funding Source & Type (?) Amount Interest rate Term(?) Committed Bank Loan $ 400,000.00 prime 30 No Total Private Funds $ 400,000.00 Total Project Funding $ 600,000.00 Use of Fund Please enter below the uses of funding and amounts requested for the proposed project, including whether formal cost estimates were received. Select the blank space for possible use of funds, or enter your o wn." Type (?) Amount Formal Cost Name of Entity Estimate providing cost estimate Land Acquisition $ 200,000.00 No local research Total Use of Funds Amount $ 200,000.00 Scope of work M Attach any documentation used for cost esfirretes Other Considerations Number of households or persons served* Total cost per household or person served $ 100,000.00 What percentage of the proposed budget will be made up of private funds?* 66.67 Dollars Leveraged Per City Dollar Spent $ 2.00 Describe any community partnerships or volunteers that will contribute to the project. None. Describe any identityof interest (101) relationships with the applicant and/or project owner, i.e. General Partner has a financial interest in the construction company, etc.* None. Pro forma * (?) Find the prof a " and profor" instruction at www.icgw.orgVactcnplan FY20 Proforma for CDBG application - 2 accessible homes.xlsx 26.13KB Proforma Spread Sheet MYEP Rental Housing Projects Please enter in/ormob m into bmv'hi bs only T wu am usm excel. Line Descri tion Symbols YR1 YR2 YR3 YR4 YR5 YR6 YR7 YRB YR9 YR70 Revenues $ 33696W $ 3436992 $ - $ $ 1 Gross Rental Income +G. Rent $ 35,057 32 $ 35,75846 $ 36,47363 $ 37,2W 11 $ 37,94].17 $ W,706.11 $ 39,48023 $ 40269.84 2 Otherincone +O. Income $ $ $ $ $ $ 8 $ 3 Tenant Contributions +T. eommbmion $ $ $ $ $ $ $ $ 4 Gross Revenues =G. Income $ 33,696.00 $ 3436992 $ 35,057 32 $ 35,]5846 $ 36,47363 $ 37,2W 11 $ 37,94717 $ W,706.11 $ 39,48023 $ 40269.84 5 Vacancy Loss -vac $ 168480 $ 1j18W $ 1j5287 $ 1j8792 $ 182368 $ 1860.16 $ 189736 $ 193531 $ 197401 $ 2,01349 (5%vacaae. crass Inc-) 6 Effective Gross Income EGI $ 32,01120 $ 3265142 $ 3 30,1 5 $ 3 9]054 $ 3464995 $ 3 34295 $ 36,04981 $ 36,77081 $ 3],50622 $ 3825635 Operating Expenses $ 1,500W $ 1,54 On, The total of items #]-10shall be no $ 140000 $ 144200 $2sthan i $ $ - $ 3240W $ 333720 $ - $ $ 70000 $ 721W 7 Insurance $ 1,59135 $ 1,63909 $ 1,68826 $ 1,]3891 $ 1,791W $ 1,84481 $ 1,900-16 $ 1,95716 8 Maintenance &Structural Repairs E 148526 E 1629.82 E 16]6]1 E 1622.96 E 1671 67 $ 1j2182 $ 1j7348 $ 182608 9 Fees Managementles501un E - E - E - E - E - 8 - 8 - $ - 10 Misc. Operating Expenses (Utilities) E 3,437 32 E 3540.4a E 364665 $ 3,756 05 $ 3868.73 $ 3984 ]9 $ 4,104.34 $ 4,22747 11 Property Tax (Taxes for 1 st year only) Reserves(Opeohing e,ery no less than EA`A0ma E $ $ E 8 $ 8 8 12 $ 74263 $ ]64.91 $ 78785 $ 81149 1$ 83584 $ BW91 $ 88674 1$ 91334 13 Total Operating Expenses -OPR Expenoes $ 6840On $ ],045.20 $ ],25656 $ 7,47425 $ 7,69848 $ 7,92943 $ 8,16732 $ 841234 $ 8664.71 $ 892465 14 Net Operating Income -NG1 $ 25,171 20 $ 25,6%6 $ 26,047 90 $ 26,496 28 1 $ 26,951 47 1 $ 27,413 52 $ 27,88249 $ 28,35847 $ 28,84152 $ 29,331 70 15 Debt Service First Mortgage $ 20,88000 $ 20,880W $ 20880W $ 20,880W $ 20,880 On $ 20,88000 $ 20,88000 $ 20,880W $ 20,88000 $ 20,88000 E E E $ $ E E E E E 16 Debt Service Subordinate Mortgage(s) 17 Total Debt Service -Dvs $ 20,88000 $ 20,88000 $ 20,88000 $ 20,88000 $ 2088000 $ 2088000 $ 2088000 $ 2088000 $ 2088000 $ 20880.00 18 Cash Flow -GF $ 4,29120 $ 4,72622 - $ 5,16790 $ 5,61629 -m #DIVIOI $ 8 O71 47 $ - #DIVIOI 3 i 533 52 $ - #DIVIOI 3 T 002 49 $ - #DIVIOI 3 T 478 47 $ - #DIVIOI 3 7 981 52 $ - #DIVIOI 3 8 451 70 $ - #DIVIOI 18(b) Equity Investment In Project 19 Cash -on- Cash ROI GF #DIVKl #DIVIOI #DIVIOI casnF-wd dedsvF 0 mesmem nPoed pod co.e xRatio (arler Yeer3, shinlo, no less Man 1.2 Burma-plonBeanod. Enceiagal.ml. aj Equity lnwn DGR 1206 1226 1248 12W 1291 1313 1335 134 1W1 14% Line YR1 YR2 YR3 YR4 YR5 YR6 YR7 YR8 YR9 YR10 Detenntnino Taxes 20 Cash Flow CF $ 4,29120 $ 4,72622 $ 5,167W $ 561629 $ 6,07147 $ 653352 $ 7,002.49 $ 7,47847 $ 7,96152 $ 845170 21 Depreciation Expenses -DEER $ $ $ $ $ $ $ $ $ 22 Amortization of Fees AU ORTz $ $ - - $ 70000 $ $ - $ 70000 $ $ $ $ $ $ $ 700.00 23 Principal Payments +P $ 70000 $ 70000 $ 70000 $ 70000 $ 70000 24 Reserves +RESERVES $ 70000 $ 70000 25 Earnings (Loss) Before Taxes =EBTx E 4,991 20 $ 5,426.22 $ 5,867 90 $ 6 316 29 $ 6,77147 $ 7,23352 $ 7,702.49 $ 8,17847 $ 866152 $ 9,151 70 26 x Tax Rate (35% or 0%) xRATE M 0% B% D% 0% 0% 0% 0% 0% 0% 27 Tax Incurred Saved -TAX $ $ E $ E 8 E E 8 $ Cash Flow After Tax 28 Cash Flow CF $ 4,29120 $ 4,726.22 $ 5,16700 $ 561629 $ 6,07147 $ 653352 $ 7,002.49 $ 7,47847 $ 7,96152 $ 845170 29 Tax Incurred (Tax Saved) -TAX (+SAV) $ $ $ $ $ $ $ 8 $ $ 30 Cash Flow After Tax =CFATx $ 4,29120 $ 4,726.22 $ 5,16700 $ 561629 $ 6,07147 $ 653352 $ 7,002.49 $ 7,47847 $ 7,96152 $ 845170 Line Total Benefit Analysis 31 Cash Flow After Tax CFATx $ 4,291A $ 4,726.22 $ 5,16700 $ 561629 $ 6,07147 $ 653352 $ 7,002.49 $ 7,47847 $ 7,96152 $ 845170 32 Rehabilitation Tax Credit +RTe $ $ $ $ 8 $ E $ $ 33 Low Income Housing Tax Credit +uuTe $ $ $ $ 8 $ $ $ $ 34 Net Sale Proceeds +NSP $ $ $ $ $ 8 $ $ $ $ 35 Total Benefits After Tax(NCFAT) =NCFATx $ 4,291A $ 472622 $ 5,16790 $ 561629 $ 6,07147 $ 6533.52 $ 7,002.49 $ 7,47847 $ 7,96152 $ 8,45170 36 Return on Investment RDi #Diwo! #Diwo! #Diwo! #Diwo! #Diwo! #DiwD! *Diwo! #Diwo! #Diwo! #Diwo! YR11 YR12 YR13 YR14 YR15 YR16 YR17 YR18 YR19 YR20 Line Descri tion Revenues $ 4107524 $ 418%74 $ 42,]3468 $ 4358937 $ 44,461.16 $ 453WW $ 4625739 $ 47,18253 $ 4812619 $ 49,088.]1 1 Gross Rental Income 8 8 $ $ $ $ $ 8 $ $ 2 Other Income 8 8 $ 8 I $ 8 I $ 8 $ 8 1 3 Tenant Contributions $ 4107524 $ 418%74 $ 42,]3468 $ 4358937 $ 44,46116 $ 453WW $ 4625739 $ 47,18253 $ 4a,12619 $ 49,088.71 4 Gross Revenues $ 2,05376 $ 2,09484 $ 2,136.73 $ 2,17947 $ 2223W $ 226752 $ 231287 $ 235913 $ 2,40631 $ 2,454.44 5 Vacancy Loss (5%Vac Rae. crass Inc-) $ 39,02147 $ 39801 W $ 4959794 $ 41409W $ 422W10 $ 43,08286 $ 43944.52 $ 44,82341 $ 45,]1988 $ 4663427 6 Effective Gross Income Operating Expenses $ 2,01587 $ 2,07635 $ 2,13864 $ 220280 $ 226888 $ 2336% $ 2,407W $ 2,47927 $ 255365 $ 26W 26 7 Insurance $ 188148 $ 193793 $ 19%07 $ 2,05595 $ 2,11763 $ 2,18115 $ 224659 $ 2313% $ 2383.41 $ 2,45491 8 Maintenance& Structural Repairs 8 E $ $ $ E $ $ $ 8 9 Management Fees $ 4,35429 $ 4,48492 $ 4,61947 $ 4,7W 05 $ 4,900.79 $ 5,04781 $ 5,1%25 $ 535523 $ 551588 $ 568136 10 Misc. Operating Expenses 8 8 8 $ $ $ $ $ $ $ 11 Property Taxes $ 94074 $ 96898 I $ 99803 E 1,02]-97 E 1,OW81 E 1,09058 $ 1,12329 E 1,f $ 1,19170 $ 1,22]-45 12 Reserves $ 9,19239 E 9,48816 E 9,]5220 E 10,0. $ 10,346-it E 10,85850 $ 10, 7 E 11,3. $ 11,64464 E 11,99396 13 Total Operating Expenses $ 29,82909 $ 30,33374 $ 30,84574 $ 31,36513 $ 31,89198 $ 32,42636 $ 32,96833 $ 33,51793 $ 34,07523 $ 34,64029 14 Net Operating Income $ 20,88000 S $ 20,88000 $ $ 20,88000 8 $ 20,880W $ $ 20,880W $ $ 2D880.00 E $ 20,88000 E $ 2D88090 E $ 2D88090 E $ 20,88000 E 15 Debt Service First Mortgage 16 Debt Service Subordinate Mortgage(s) $ 20,88000 $ 20,88000 $ 20,88000 $ 20,88000 $ 20,88000 $ 20,88000 $ 20,88000 $ 20,88000 $ 20,88000 $ 20,88000 17 Total Debt Service $ B,94909 $ *DN101 $ 9,453]4 $ 996574 $ 10,485-13 $ 11,01196 $ 11,54636 - $ 12,08833 - $ 12,63793 $ - *DIvrDI $ 13,19523 $ - #Dimm $ 13,76029 $ - #Div(m 18 Cash Flow 18(b) Equity Investment In Project #Div(m #DN101 ttDiv(m ttDimm #Div(m #DN101 1 19 1 Cash -on- Cash ROI cam Fmw d.ded m F.a, ne%rrem naoe 1429 1453 1477 1502 152] 1553 1579 1605 1632 1659 oen cwe•aAe Raeo YR11 YR12 YR13 YR14 YR15 YR16 YR17 YR18 YR19 YR20 Line Description Determininc Taxes $ 8,94909 $ 9,45374 $ 9,96574 $ 10,48513 $ 11,01198 $ 11,54636 $ 12,08833 $ 12,63793 $ 13,19523 $ 13,76029 20 Cash Flow S S $ E $ $ $ $ $ $ 21 Depreciation Expenses S $ $ 8 $ $ - $ - $ 70000 $ $ $ 70000 E 8 8 22 Amortization of Fees S 70090 $ 70090 $ 70090 23 24 Principal Payments Reserves $ 70090 $ 70090 $ 70090 $ 70090 $ 70090 $ 9,64909 $ 10Q5374 $ 10,66574 $ 11,18513 $ 11,71198 $ 12,24636 $ 12,78833 $ 13,33793 $ 13,8%23 $ 14,46029 25 Earnings (Loss) Before Taxes 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 26 x Tax Rate (35% or 0%) S 8 $ E E E E E E E 27 Tax Incurred Saved Cash Flow After Tax S 8,94909 $ 9,45 74 $ 9965.74 $ 10,485.13 $ 1101198 $ 1154636 $ 12,08833 $ 1263793 $ 13,1%23 $ 13,76029 28 Cash Flow $ 8 $ E $ $ $ E E $ 29 Tax Incurred (Tax Saved) $ 894909 $ 9,4574 $ 9,965.74 $ 10,48513 1 $ 1101198 $ 1154636 $ 12,08833 $ 1263793 $ 13,1%23 $ 13,76029 30 Cash Flow After Tax Line Total Benefit Analysis $ 8,94909 $ 9,45374 $ 9,9674 $ 10,48513 $ 11,01198 $ 11,54636 $ 12,08833 $ 12,637-93 $ 13,19523 $ 13,76029 31 Cash Flow After Tax S $ S E $ $ $ $ $ E 32 Rehabilitation Tax Credit $ $ $ $ $ $ $ $ $ 8 $ E 33 Low Income Housing Tax Credit $ $ $ $ $ $ $ E 34 Net Sale Proceeds $ 8,94909 $ 9,45 74 $ 9,96574 $ 10,485-13 $ 11,011% $ 11,546--36 $ 12,08833 $ 12,637-93 $ 13,19523 $ 13,76029 35 Total Benefits After Tax(NCFAT) #MV101 #MV101 #MV101 #MV101 #MV101 #MV101 #MV101 #DiwO! *DiwO! *DiwO! 36 Return on Investment Feasibility and Community Impact Outline the proposed timetable and expected impact for the project. For the timetable, include when requested funding will be committed, project milestones such as rezoning or construction, and when funds will be spent. If applicant plans to apply for funds not committed, include the anticipated date for application and when funds will be awarded. For expected impact, break out beneficiaries by income group. If funded, both the schedule and income breakdown will be used for any project agreement. Project Benefit Narrative Describe project benefits and requirements Such as beneficiary eligibility requirerrents, targeted beneficiaries, etc. Fully accessible housing is difficult to find- especially for individuals with intellectual disabilities who need daily assistance and also live on limited incomes. We currently have approximately 10 referrals on our waiting list who need this exact type of housing and service provision. Rental Housing Expected Number of Units* Expected Rent* 6 $ 468.00 Time Table Date Description of Activity 12/31/2019 Lots will be purchased and building of homes will have started. To promote the efficient use of public funds, describe how the project will continue to provide public benefits through and beyond the required compliance period. Describe how the project will provide public benefits below rates in the existing market Our primary service to the people who live in our grant assisted sites is not just providing suitable and affordable housing, That is the first and very important step to achieving our actual mission of providing advocacy and person -centered services which facilitate personal growth and community inclusion to people with disabilities. We will continue to use these homes for this essential service provision well after any compliance period. Our goal to is provide high quality service provision to people with disabilities; our goal is not to profit from rental income. In what manner or form will the project proceed if it is awarded less than full funding? If there are several components, how will they be prioritized? We will make every effort to utilize any funds we may be awarded. Income Breakdown Please indicate the population to be served by the proposed program according to the linked income categories. If requesting money for a specific administrative expense (like a staff member's salary), indicate the population served by your entire agency. (Please Note: If funded, this information will be used as income targeting for your Agreement). Median Income Number of Persons 0 - 30% 6 31 - 50% 51 - 60% Median Income Number of Persons 61 - 80% Over 80% Total Persons/Households 6 Percent LMI 100.00 Please note the basis for these estimates* The individuals we serve all have income of less than $15,000 per year. Capacity and Applicant History Please list amount of CDBG and/or HOME funds received Wthin the lad four Qtyfsal years and the status of the pmjec[(s) undertalxn. CDBG and/or HOME funds received Fiscal Year Funds Received Budgeted Amount Date Project Amount Expended Completed July 1, 2015 to June 30, 2016 $ 60,000.00 $ 60,000.00 12/13/2015 July 1, 2016 to June 30, 2017 $ 50,000.00 $ 50,000.00 6/6/2017 July 1, 2017 to June 30, 2018 $ 50,000.00 $ 50,000.00 2/1/2018 July 1, 2018 to June 30, 2019 $ 70,000.00 $ 35,000.00 Please describe your organization's structure, officers, and staff.* Organizational chart attached below. Please describe the education and experience of key staff who will implement the project (excluding volunteers, board members, and consultants). If consultants are utilized, identify what role theywill play in the project.* We have successfully implemented identical projects several times using CDBG funds. The Director of HR & Support Services, Kari Wilken, will work with our realtor to identify and purchase a suitable home in Iowa City. Once the home is purchased, it will be managed through our well -established Residential Program. Please summarize your organization's portfolio, including how many units you own and/or manage, how many homes you have built/rehabilitated/sold, and what projects are underway.* The MYEP Residential Program currently operates 16 homes. We own 11 of these homes and rent 5 from area landlords. Evidence of Fiscal Capacity(?) Audit Summary FY18 Preliminary Independent Financial Audit.pdf 8.2MB Evidence of Organizational Capacity(?) Upto four pages of additional inforrretion about the capacity of the organization may be included. Examples of possible evidence may be resumes of Icy staff, additional descriptions of organizational activities, a other relevant infonrefion. OrgChart2019.pptx 60.22 KB Is the applicant (including partners, co -applicants, etc.) currently in compliance with all federal, state and local laws, rules and regulations, including any CDBG and/or HOME funded projects?* O Yes f No f Currently in litigation Please identify relevant market factors that verify the demand for the proposed project based on the City of Iowa City Housing Program Guidelines policy. The City may require a Market Analysis for large or complicated projects to support the need before entering an agreement. "This does not apply to tenant based rental assistance, honoc�ner rehabilitation, down payment assistance, a CHDO operating expenses. 177 MAYOR'S YOUTH EMPOWERMENT PROGRAM FINANCIAL STATEMENTS JUNE 30, 2018 Approved By Date TABLE OF CONTENTS INDEPENDENT AUDITOR'S REPORT .............................................. FINANCIAL STATEMENTS Statement of Financial Position .............................................. Statement of Activities............................................................ Statement of Functional Expenses ......................................... Statement of Cash Flows ....................................................... Notes to Financial Statements ................................................ :AFT PAGE ............................ .......... I "] � P AFT Jr� Independent Auditor's Report To the Board of Directors Mayor's Youth Empowerment Program Iowa City, Iowa Report on the Financial Statements We have audited the accompanying financial statements of Mayor's Youth Empowerment Program (a not -for -profit corporation), which comprise the statement of financial position as of June 30, 2018, and the related statements of activities, functional expenses, and cash flows for the year then ended, and the related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 1 LJ. AFT Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Mayor's Youth Empowerment Program as of June 30, 2018, and the results of its operations and its cash flows for year then ended in accordance with accounting principles generally accepted in the United States of America. Iowa City, Iowa December_, 2018 2 MAYOR'S YOUTH EMPOWERMENT PROGRAM STATEMENT OF FINANCIAL POSITION JUNE 30, 2018 ASSETS Cash and cash equivalents $ 90,046 Accounts receivable, net of allowance of $25,000 for uncollectible accounts 523,425 Prepaid expenses 4,525 Rental security deposits 6,860 Designated agency endowment fund 10,061 Property and equipment 2,701,205 TOTAL ASSETS $ 3,336,122 LIABILITIES AND NET ASSETS LIABILITIES Accounts payable $ 13,397 Accrued and withheld payroll taxes and benefits 43,549 Accrued wages payable 225,615 Accrued compensated absenses payable 62,629 Accrued interest payable 4,961 Accrued property taxes 12,506 Income taxes payable 418 Deferred insurance proceeds 10,606 Long-term debt 2,611,720 Total Liabilities 2,985,401 NET ASSETS Unrestricted 350,721 Temporarily restricted - Permanently restricted Total Net Assets 350,721 TOTAL LIABILITIES AND NET ASSETS $ 3,336,122 The accompanying notes are an integral part of the financial statements. 3 AFT MAYOR'S YOUTH EMPOWERMENT PROGRAM STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2018 UNRESTRICTED NET ASSETS REVENUES, GAINS, AND OTHER SUPPORT Contributions and fundraising - Cash contributions $ 1,952 Fundraising 27,879 Purchase of service fees - Medicaid Waiver services 4,691,149 Rental income 225,199 "✓ Return on investement- Interest and dividend income 939 Realized and unrealized gains on designated agency endowment fund 753 Total Revenue, Gains and Other Support 4,947,871 �✓ EXPENSES AND LOSSES Program Services - Medicaid Waiver services 4,169,080 Management and General 974,500 Fundraising 6,743 Total Expenses and Losses 5,150,323/ CHANGE IN NET ASSETS (202,452) 4L`� NET ASSETS, BEGINNING OF YEAR 553,173 NET ASSETS, END OF YEAR $ 350,721 The accompanying notes are an integral part of the financial statements. n A FT MAYOR'S YOUTH EMPOWERMENT PROGRAM STATEMENT OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED JUNE 30, 2018 Personnel costs Salaries and wages Payroll taxes Employee insurance and benefits Retirement Total personnel costs Accreditation Accounting and audit services Telephone and communications Postage Copies and printing Office supplies Dues and memberships Staff travel and training Insurance Permits and licenses Supplies Vehicle and travel expenses Repairs and maintenance Rent Utilities Property taxes Interest expense Depreciation Incentives and activities Miscellaneous Income tax expense TOTAL EXPENSES Program Management Services and General Fundraising Total $ 3,212,093 $ 476,781 $ - $ 3,688,874 238,062 42,418 - 280,480 241,790 28,306 - 270,096 55,164 15,772 - 70,936 3,747,109 563,277 4,310,386 5,860 5,860 - 8,850 8,850 25,652 13,841 - 39,493 - 875 250 1,125 - 3,805 - 3,805 3,079 26,317 342 29,738 1,590 11,228 - 12,818 270 3,389 - 3,659 65,260 37,494 - 102,754 - 3,060 - 3,060 12,437 8,950 1,628 23,015 30,187 46,320 - 76,507 23,868 97,648 1,379 122,895 79,300 600 - 79,900 21,453 14,586 - 36,039 8,457 2,360 - 10,817 64,293 27,880 - 92,173 83,234 76,219 - 159,453 1,665 - - 1,665 1,226 21,523 3,144 25,893 - 418 - 418 $ 4,169,080 $ 974,500 $ 6,743 $ 5,150,323 The accompanying notes are an integral part of the financial statements. '.7 FT MAYOR'S YOUTH EMPOWERMENT PROGRAM STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2018 CASH FLOWS FROM OPERATING ACTIVITIES Cash received from contributors and general supporters for operations $ 29,581 Cash received form service fees 4,685285 Cash received from other revenue 225:199 Interest income received 777 Cash paid to employees and suppliers (4,817,226) Interest paid (90,318) Net Cash Provided By Operating Activities 33,298 CASH FLOWS FROM INVESTING ACTIVITIES Purchase property and equipment (222,592) - CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from short-term borrowings 1,760,000 Repayment of short-term borrowings (1,760,000) Proceeds from long-term debt 212,050 Repayment of long-term debt (84,577) Net Cash Provided By Financing Activities 127,473 NET (DECREASE) IN CASH AND CASH EQUIVALENTS (61,821) CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 151,867 CASH AND CASH EQUIVALENTS, END OF YEAR $ 90,046 The accompanying notes are an integral part of the financial statements. 2 `AFT MAYOR'S YOUTH EMPOWERMENT PROGRAM STATEMENT OF CASH FLOWS FOR THE YEAR ENDED JUNE 30, 2018 Reconciliation of Change in Net Assets to Net Cash Provided By Operating Activities: Change in net assets $ (202,452) , Adjustments to reconcile change in net assets to net cash provided by operating activities: _ Depreciation 159,453 W Net increase in designated agency endowment fund (1,002) Change in operating assets and liabilities: Grants and accounts receivable, net (5,864) Rent security deposits 120 Prepaid expenses 10,080 Accounts payable (9,313) Accrued wages payable, compensated absences payable, and accrued and withheld payroll taxes 68,563 Accrued interest payable 1,855 Accrued property taxes 834 Income taxes payable 418 Deferred insurance proceeds 10,606 Net Cash Provided By Operating Activities $ 33,298 Supplemental Information: Interest paid during the year ended June 30, 2018: Short-term debt $ 3,206 Long-term debt 87,112 $ 90,318 Noncash investing activities: Designated agency endowment fund - Direct contribution by donor $ 250 Allocated interest and dividend income 162 Allocated realized and unrealized gains and losses 753 Allocated management fees (163) $ 1,002 The accompanying notes are an integral part of the financial statements. MAYOR'S YOUTH EMPOWERMENT PROGRAM NOTES TO FINANCIAL STATEMENTS AFT JUNE 30, 2018 NOTE 1 - NATURE OF THE ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of the Organization - The Organization provides services to children and adults with developmental disabilities and employment training and counseling in Johnson County, Iowa, primarily in the Iowa City, Iowa area. The Organization's programs are funded primarily by purchase of service fees through the Medicaid Waiver program and secondarily, by grants and awards. Financial Statement Presentation - The Organization is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. In addition, the Organization is required to present a statement of cash flows. The Organization does not use fund accounting. Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Fair Value Measurements - Certain assets of the Organization are reported at fair value. Additional disclosures define fair value, establish a framework and hierarchy for measuring fair value and provide expanded information fair value measurements. Impairment of Long -Lived Assets - The Organization reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of carrying amount or the fair value less costs to sell. Cash and Cash Equivalents - For purposes of the statement of cash flows, the Organization considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Grants and Accounts Receivable - Substantially all receivables are due from governmental agencies. An allowance for uncollectible accounts is maintained at 4.5% of the gross amounts receivable. Unoollectible accounts are charged off when there is no reasonable chance of collection. MAYOR'S YOUTH EMPOWERMENT PROGRAM NOTES TO FINANCIAL STATEMENTS R FT JUNE 30, 2018 NOTE 1 - NATURE OF THE ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Property and Depreciation - Property and equipment with a cost of $1,000 or more is recorded in the accounts of the Organization at cost. Additions and improvements are capitalized. Ordinary maintenance and repair expenses are charged to income as incurred. The cost of depreciable property retired or sold is removed from the property accounts, and the accumulated depreciation thereon is charged to the accumulated depreciation account. Profit or loss applicable to disposals of property is recorded in the income accounts. Depreciation is provided by the straight-line method over the following useful lives: Buildings and improvements Office and program equipment Vehicles 10-20 years 3-5 years 5 years Contributions and Gifts - Contributions are recorded as unrestricted, temporarily restricted, or permanently restricted support depending on the existence or nature of any donor restrictions. The Organization reports gifts of cash and other assets as restricted support if they are received with donor stipulations that limit the use of donated assets. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. The Organization reports gifts of equipment as unrestricted support unless explicit donor stipulations specify how the donated assets must be used. Gifts of long-lived assets with explicit restrictions that specify how the assets are to be used and gifts of cash or other assets that must be used to acquire long-lived assets are reported as restricted support. Absent explicit donor stipulations about how long those long-lived assets must be maintained, the Organization reports expirations of donor restrictions when the donated or acquired long-lived assets are placed in service. Functional Expenses - The functional expenses are allocated to the programs based on actual expenses incurred, or estimated amounts where actual amounts cannot be determined. Income Tax - The Organization is a not -for -profit organization that is generally exempt from income taxes under Section 501(c)(3) of the Internal Revenue Code. The Organization is not classified as a private foundation under Section 509(a)(2). Unrelated business income is subject to federal and state income taxes at corporate tax rates. 0 MAYOR'S YOUTH EMPOWERMENT PROGRAM NOTES TO FINANCIAL STATEMENTS J "AFT JUNE 30, 2018 NOTE 2 - PROPERTY AND EQUIPMENT Property and equipment owned by the Organization at June 30, 2018 is as follows: Land Buildings and improvements Office equipment Program equipment Vehicle Cost or Accumulated Net Book Basis Depreciation Value $ 621,450 $ - $ 621,450 2,665,504 654,381 2,011,123 67,803 61,803 6,000 4,089 4,089 - 299,802 237,170 62,632 $ 3,658,648 $ 957,443 $ 2,701,205 Depreciation expense for the year ended June 30, 2018 amounted to $159,453. NOTE 3 - RETIREMENT PLAN The Organization adopted a 401(k) employee retirement plan effective November 1, 2009, which covers employees who meet certain eligibility requirements. Effective January 1, 2011, the plan will match 100% of deferral contributions up to 5% of compensation for all employees. The matching contribution to the plan for the year ended June 30, 2018, net of forfeitures, was $70,371. Employee deferrals to the plan during the year ended June 30, 2018, amounted to $70,565. NOTE 4 - LEASES The Organization leases six homes for housing for clients in the community that have disabilities. The leases vary in terms from month -to -month to over three years. The Organization also leases storage unit space. Total rent paid under these leases during the year ended June 30, 2018 was $79,900. The Organization also leases three trucks, a copier and a computer system for administrative purposes. Total rent paid under these leases during the year ended June 30, 2018 was $60,938. Lease commitments as of June 30, 2018 with terms in excess of one year are as follows: Homes Trucks Computer Copier Total Year ending June 30, 2019 $ 71,680 $ 15,116 $ 45,600 $ 7,881 $ 140,277 2020 34,880 13,857 45,600 7,881 102,218 2021 15,000 - 7,600 7,881 30,481 2022 - - - 7,881 7,881 2023 - - - 1,312 1,312 Total $ 121,560 $ 28,973 $ 98,800 $ 32,836 $ 282,169 Ir MAYOR'S YOUTH EMPOWERMENT PROGRAM NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018 _� D. A AFT NOTE 5 — CONCENTRATIONS The Organization provides a significant amount of services through the Medicaid Waiver program. Revenues for this program during the year ended June 30, 2018 amounted to $4,691,149, which was approximately 95% of all revenue and support to the Organization during the year. Loss of this source of revenue could have a significant impact on the financial condition and operations of the Organization. NOTE 6 — RESTRICTIONS ON NET ASETS There were no temporarily or permanently restricted net assets as of June 30, 2018 and for the year then ended. NOTE 7 — INCOME TAXES The Organization is subject to rules for the recognition, measurement, classification, and disclosure in the financial statements of uncertain tax positions taken or expected to be taken in the Organization's income tax returns. Management is not aware of any tax positions that would have a material effect on the financial statements that are more likely than not to change in the next twelve months, or that would not sustain an examination by applicable taxing authorities with full knowledge of the position and all relevant facts. Since tax matters are subject to some degree of uncertainty, there can be no assurance that the Organization's income tax returns will not be challenged by the taxing authorities and that the Organization will not be subject to additional tax, penalties, and interest as a result of such challenge. The Organization recognizes penalties and interest arising from uncertain tax positions when incurred. No such penalties or interest were recognized during the year ended June 30, 2018. The Organization is liable for federal and state income taxes on business income which is unrelated to the tax-exempt purpose of the Organization, which consists of income derived from rental income. During the year ended June 30, 2018, federal income tax expense of $268 and state income tax expense of $150 was accrued. The Organization files income tax returns with the Internal Revenue Service. The Organization's income tax returns for the years ended June 30, 2015 through 2018 are subject to examination by the taxing authorities generally for a period of three years after they were filed. NOTE 8 — COMPENSATED ABSENCES Organization employees accumulate paid -time -off hours for subsequent time off or for payment upon termination, retirement, or death. The liability for employee paid -time -off hours was $62,629 at June 30, 2018. 11 MAYOR'S YOUTH EMPOWERMENT PROGRAM NOTES TO FINANCIAL STATEMENTS JUNE30,2018 ' . t"AFT NOTE 9 — DESIGNATED AGENCY ENDOWMENT FUND In 2005, the Organization established the Mayor's Youth Empowerment Program Endowment Fund with the Community Foundation of Johnson County ("Foundation") for the benefit of the Organization. The Foundation will make distributions to the Organization in accordance with the Foundation's spending policy for the year as determined annually by the Foundation's Board of Directors. In the event that the Organization should decide to terminate, or cease to exist, as a legal entity, the assets and any other income received from those assets shall be redirected to support another charitable agency as determined by the Foundation's Board of Directors. The Organization may also elect to redirect any amounts of assets and/or income from those assets to another charitable agency. The assets may also be returned to the Organization in special circumstances upon request to the Foundation. Activity of the fund during the year ended June 30, 2018 is as follows: Balance, June 30, 2017 Contribution received directly from donor Allocated interest and dividend income Allocated investment management fees Allocated net realized gains and losses Allocated net unrealized gains and losses Balance, June 30, 2018 NOTE 10 — NOTES PAYABLE AND LONG-TERM DEBT Short-term debt at June 30, 2018 consists of the following: Line of credit loan with US Bank, N.A. variable rate of interest at 1.5% plus t demand. During the year ended June $1,760,000 was repaid. There was no Interest expense of $3,206 was incurred assets of the Organization. $ 9,059 250 162 (163) 359 394 $ 10.061 in the amount of $500,000. The credit line carries a ie prime rate announced by the bank and is due on 10, 2018, $1,760,000 was borrowed on the loan and outstanding balance on the loan at June 30, 2018. on the loan during the year. The loan is secured by all Long-term debt at June 30, 2018 consists of the following: Equipment Finance Two vehicle finance contracts with U.S. Bank Equipment Finance, original contract amounts total $95,334. The contracts mature at various dates through June 19, 2021. Interest rates on the contracts range from 4.5% to 5.79%. Monthly payments under the contracts total $1,828. The contracts are secured by vehicles purchased with these finance contracts. 12 MAYOR'S YOUTH EMPOWERMENT PROGRAM NOTES TO FINANCIAL STATEMENTS ;k D � ,llp CT �J IJ /`61'- i JUNE 30, 2018 NOTE 10 - NOTES PAYABLE AND LONG-TERM DEBT (CONTINUED) Bank Real Estate Mortaaaes Twelve real estate mortgages payable to four local banks, original mortgage amounts total $2,342,003. The mortgages mature at various dates through June 10, 2022. Interest rates on the mortgages range from 4.0% to 4.95%. Monthly payments under the mortgages total $11,946. The mortgages are secured by real estate purchased with the loan proceeds. During the year ended June 30, 2018, one mortgage was entered into totaling $137,500. City of Iowa City Real Estate Mortoaaes Repayable Loan - One real estate mortgage payable to the City of Iowa City, original amount of $14,000. The mortgage requires an annual payment of $1,400.00 beginning July 1, 2027 and continuing each year on July 1 until paid in full. Interest rate on the mortgage is 0%. The mortgage is secured by real estate purchased with the proceeds of the loan. Forgivable Loans - Nine real estate mortgages payable to the City of Iowa City, original amounts total $429,542. The mortgages are forgivable on various dates through June 30, 2040, as long as the Organization is in compliance with the provisions of the Community Development Block and the HOME Investment Partnership Program grants under which the original mortgages were made. No interest is due under these mortgages. The mortgages are secured by real estate purchased with proceeds of the loans. During the year ended June 30, 2018, .the Organization borrowed $74,550 under two mortgages entered into during the year. Interest expense of $88,967 was incurred on long-term debt during the year ended June 30, 2018. A summary of long-term debt at June 30, 2018 is as follows: Equipment finance contracts $ 50,707 Bank real estate mortgages 2,117,471 Repayable mortgage - City of Iowa City 14,000 Forgivable mortgages - City of Iowa City 429,542 Total $ 2 611.720 Estimated maturities of long-term debt, except for forgivable mortgages with the City of Iowa City, at June 30, 2018 are as follows: Year ending June 30, 2019 $ 636,117 2020 600,567 2021 330,774 2022 477,635 2023 123,085 Beyond five years 14,000 Total $ 21821Z$ 13 MAYOR'S YOUTH EMPOWERMENT PROGRAM NOTES TO FINANCIAL STATEMENTS , A JUNE 30. 2018 NOTE 11 —GRANT CONTINGENCIES During the year ended June 30, 2011, the City of Iowa City provided the Organization with $90,000 of Community Development Block Grant funds to be used for building improvements at 407 Highland Court, Iowa City, Iowa. Under the terms of the CDBG loan, the Organization is prohibited from selling, assigning or transferring its interest in the property, or renting the property, prior to June 30, 2040 without written concurrence of the City. In the event that the Organization should sell, assign or transfer its interest in the property, or rents the property prior to June 30, 2040, the Organization must pay to the City the outstanding balance of the loan. If the Organization fully complies with the obligations of the loan agreement through and including June 30, 2040, then the loan will be forgiven and the lien against the property will be released by the City. During the year ended June 30, 2012, the City of Iowa City provided the Organization with $49,800 of HOME Investment Partnership Grant funds to be used for purchase of land to build a house at 80 White Chapel Drive, Iowa City, Iowa. Under the terms of the HOME loan, the Organization is prohibited from selling, assigning or transferring its interest in the property, or renting the property, prior to December 31, 2032 without written concurrence of the City. In the event that the Organization should sell, assign or transfer its interest in. the property, or rents the property prior to December 31, 2032, the Organization must pay to the City the outstanding balance of the loan. If the Organization fully complies with the obligations of the loan agreement through and including December 31, 2032, then the loan will be forgiven and the lien against the property will be released by the City. During the year ended June 30, 2013, the City of Iowa City provided the Organization with $51,000 of HOME Investment Partnership Grant funds to be used for purchase of land to build a house at 15 Colchester Drive, Iowa City, Iowa. Under the terms of the HOME loan, the Organization is prohibited from selling, assigning or transferring its interest in the property, or renting the property, prior to December 31, 2033 without written concurrence of the City. In the event that the Organization should sell, assign or transfer its interest in the property, or rents the property prior to December 31, 2033, the Organization must pay to the City the outstanding balance of the loan. If the Organization fully complies with the obligations of the loan agreement through and including December 31, 2033, then the loan will be forgiven and the lien against the property will be released by the City. During the year ended June 30, 2014, the City of Iowa City provided the Organization with $68,192 of Community Development Block Grant funds to be used for remodeling of the second floor at 407 Highland Court, Iowa City, Iowa. Under the terms of the CDBG loan, the Organization is prohibited from selling, assigning or transferring its interest in the property, or renting the property, prior to June 30, 2020 without written concurrence of the City. 14 MAYOR'S YOUTH EMPOWERMENT PROGRAM NOTES TO FINANCIAL STATEMENTSijsL 4 I y �AAFT JUNE 30, 2018 NOTE 11 —GRANT CONTINGENCIES (CONTINUED) In the event that the Organization should sell, assign or transfer its interest in the property, or rents the property prior to June 30, 2020, the Organization must pay to the City the outstanding balance of the loan. If the Organization fully complies with the obligations of the loan agreement through and including June 30, 2020, then the loan will be forgiven and the lien against the property will be released by the City. During the year ended June 30, 2016, the City of Iowa City provided the Organization with $60,000 of HOME Investment Partnership Grant funds to be used for the purchase of 3335 Shamrock Drive and 403 Elmridge Avenue, Iowa City, Iowa. Under the terms of the HOME loan, the Organization is prohibited from selling, assigning or transferring its interest in the properties, or renting the properties, prior to January 10, 2022 without written concurrence of the City. In the event that the Organization should sell, assign or transfer its interest in the property(ies), or rents the property(ies) prior to January 10, 2022, the Organization must pay to the City the outstanding balance of the loan. If the Organization fully complies with the obligations of the loan agreement through and including January 10, 2022, then the loan will be forgiven and the lien against the properties will be released by the City. During the year ended June 30, 2017, the City of Iowa City provided the Organization with $50,000 of Community Development Block Grant funds to be used for the purchase of one residential property which is to be rented to qualifying low-income tenants. Under the terms of the loan agreement, the Organization is prohibited from selling, assigning or transferring its interest in the property prior to the end of the loan compliance period (five years from the date the last unit is occupied by an eligible tenant). In the event the Organization sells, assigns or transfers its interest in the property before the end of the compliance period, the balance of the loan is payable in full. If the Organization fully complies with the obligations of the loan agreement through and including July 1, 2036, then the lien against the property will be released by the City. During the year ended June 30, 2018, the City of Iowa City provided the Organization with $50,000 of HOME Investment Partnership Grant funds to be used for the purchase of one residential property which is. to be rented to qualifying low-income tenants. Under the terms of the loan agreement, the Organization is prohibited from selling, assigning or transferring its interest in the property prior to the end of the loan compliance period (ten years from the date the last unit is occupied by an eligible tenant). In the event the Organization sells, assigns or transfers its interest in the property before the end of the compliance period, the balance of the loan is payable in full. If the Organization fully complies with the obligations of the loan agreement through and including January 10, 2029, then the lien against the property will be released by the City. 15 MAYOR'S YOUTH EMPOWERMENT PROGRAM NOTES TO FINANCIAL STATEMENTS �4 AFT JUNE 30, 2018 NOTE 12 — RELATED PARTY TRANSACTIONS The Organization leases a residential property from Kim Downes, Treasurer of the Organization. The property provides permanent supportive housing to certain income -qualified tenants. Monthly rental is $1,200 per month and rent paid during the year ended June 30, 2018 amounted to $14,400. NOTE 13 — SUBSEQUENT EVENTS Management has evaluated events through December _, 2018, the date which the financial statements were available to be issued. 16 PRESIDENT/CEO Roger Lusala Chief Quality Chief Finance Advancement Chief Program Officer Officer Officer Karen Scott Chris Campbell IMegan Gerber SENIOR ACCOUNTANT QA & TRAINING . RESIDENTIAL SERVICE SPECIALISTS COORDINATORS LDSP 'PROGRAf SERVICE JRDINATO STAFF MANAGER �J L e m DSP Chief Operating Officer Kari Wilken FACILITIES MANAGER Project Project Address To be determined Activity Type Rental Housing CITY STEPS Priority Expanding affordable rental and owner housing opportunities CITY STEPS Goal Increase the supply of affordable rental housing Amount Requested $240,000 Project Description Acquire four4-bedroom houses to be operated as 16 SRO units with supportive services for low income persons who are chronically mentally ill. A 5th bedroom will be added to each house as soon as possible, potentially increasing the homes by 4 additional SRO units. Repayment Terms Conditional occupancy loan (forgiven if follows requirements) Affordability Period 5 years proposed Property Taxes Tax exempt %CDBG/HOME Funded 26% Project Budget Discussion Total budget is $940,000 with matching funds coming from private financing. Total CDBG/HOME cost per unit is $15,000. Expected rents of $450 per SRO unit. Pro Forma depends on a 5th unit for each property; needs to pass underwriting for 4 units. If not awarded full funding, SL will use any funds awarded though the number of houses ac uired may be reduced. Beneficiaries 0-30% AMI 100% 20 households(assuming 5th bedroom Project Coordination with Successful Living partners with a wide range of community groups: Abbe Center, NAMI, Existing Services & other Hills Bank, DHS, the East Central Region, the City, UIHC, Mercy, local churches, food Services Available in the banks (including Crisis Center), Arc and the NAACP. Community Timeliness and Capacity to Previous CDBG/HOME projects have been delayed and have required amended Successfully Complete the agreements due to lower than expected beneficiaries. Staff has concerns about the Proposed Project number of homes proposed while FY18 and FY19 projects are outstanding. Staff Concerns/Notes 1) May need to comply with federal procurement standards (competitive bids) for the proposed work. 2) Potential conflict of interest if allocated CDBG funds. 3) Section 3 may require opportunities for training/employment for LMI persons if a contractor performs construction duties which total $100,000 in HUD funds. 4) If 5 or more HOME -assisted units, must implement City's Affirmative Marketing Plan through the project's affirmative marketing plan. 6) May be subject to relocation requirements if property is occupied by tenants at the time of acquisition 7) Pro forma assumes 5 units per property - must pass underwriting for 4 units per property unless purchasing 5 bedroom homes 8) Pro forma assumes an 8%vacanc loss - what is that based on? 9) Maintenance & Repairs is about $9,000 over expected 10) Property tax should be shown in the first year and SL must demonstrate ability to make up for that loss 11) For SROs, utilities must be included under Misc Operating Expenses, will likely need to be higher 12) Operating expenses are higher at 8% but still within requirements 13) May be subject to federal labor provisions (Davis Bacon — prevailing wages). S:\DEV\CDBGHOME\FV20\_Applications\FV2D Staff reports FINA Lxls General Information and Project Need Select Language I Community Development Block Grant (CDBG) and/or HOME Investment Partnership (HOME) programs provide funding to aid in the development of viable urban communities and in the provision of safe and decent affordable housing. Applications are due Tuesday, January 18, 2019 at noon. This year, $625,000 are estimated to be available through this competitive process. Please reviewthe FY20 CDBG/HOME Application Guide for more information about eligible activities. Please submit one project proposal per application. Questions can be directed to kirk-lehmann@iowa-city.org or contact Neighborhood Services at 319-356-5230. Additional assistance, and hard copy applications, are available upon request Project Information W . Project name * Affordable Rental Housing down payments for 4 houses Project Address* Street Address To be determined Address Line 2 City Iowa City Fbstal / Zip mde 52240 Type of Project(?) © Rental Housing ❑ Owner Housing ❑ Public Facility ❑ Other Type of Activity(?) © Acquisition ❑ New Construction ❑ Rehabilitation ❑ Direct Assistance ❑ Other Applicants Applicant Name * Successful Living Supportive Housing Applicant Address* State / Province / fiagion Iowa CcunUy United States Street Address 2406 Towncrest Drive Address Line 2 City Iowa City Fbstal / Zip mde 52240 Contact Person, Title* Carla Phelps, Director of Grants & Dev. Phone Number* 3194711809 Email* cphelps@icsuccess.org DUNS Number(?) 055386861 State / Province / I Lgion IA Counfiy United States DUNS # Verification*(?) Go to http:#fedgov.dnb.com`webfamto lookup a create a DINS number. Provide a copy of the email you readve with your confirmed DINS number. DUNS letter.pdf 418.35KB CAGE Code (?) Obtain by registering on SAMgov 831330 SAM.gov Registration*(?) All subreapienls crust register on SAMgov before a legally binding agreement can be signed. Attach your SAMgov Entity F4egistraton Summery as evidence that this has been completed. SAM letter.pdf 441.33KB General Information Type of Lead Applicant* G Community Housing Development Organization O Private non-profit organization 6 Private for -profit, individual or partnership applicant O Public Organization W-9 Form*(?) (F4equest forTaxpayer ID# & Cerlificaton) W9 wtaxlD.pdf 767.79KB Organizational Status * (?) Go to https://sm.ima.gm/smmhtbusiness to lookup the organizafion applying fa funds. Provide a copy of the Business Entity Sumrery, screen. Iowa SOS letter.pdf 588.09KB Amount of Funds Requested* $ 240,000.00 Did you attend an Applicant Workshop?* 0 Yes 0 No Provide a few lines describing the proposed project* Our non-profit agency serves only the Chronically Mentally III who are impoverished in Iowa City. They come to us from shelters, off the street and other unfortunate circumstances. We have a long waiting list for our houses and will use this funding for down payments on 4 house acquisitions. Each house will have 4 bedrooms and we will add a 5th bedroom as soon as possible. We will get commercial funding from Hills Bank for the balance of each mortgage and to add the 5th bedroom, an office and privacy fencing. Experience has taught us this model works for our clients. We charge low rents in accordance with city guidelines. We will have mentally ill clients ready to move into each house right away. We help them enroll in Medicaid, get to drs, apply for SSI, take them to food banks and generally counsel and mentor them as they journey toward recovery (which means something different for each person). Living in safe, secure, affordable housing provides an appropriate and healthy setting necessary to promote mental health improvement. Behaviors change, moods lift, sleeping and eating and physical health all improve as a result of moving into comfortable, welcoming housing. Please specifythe one or two most applicable priority need(s) this application addresses, as shown in the 2016-2020 CITY STEPS Plan. Explain how this project will meet this/those need(s).* Expanding affordable housing is a priority (01) which describes our agency. We help battle homelessness (03C) and care for the Mentally III ((03P), which are also City Step priorities. Some of our client population have substance problems, which we help them to conquer (03P). Most of our clients are 100% disabled (03B). We will house clients in the houses we will buy with this funding, get them on to Medicaid and into treatment by psychiatrists and other doctors. Our houses provide safety and security. Our counselors will see these clients daily, and drive them to appointments and help them meet other daily needs so that their lives will begin to improve and behaviors are modified and isolation defeated. Budget and Resources Type of Funding Requested* Financing tears will be based on project feasibility and the ability to repay. Terms approved by City Council may be different than what is requested. Grant Requested Grant Terms ........................................................ Principal Amount Affordability Period M $ 240,000.00 5 years Source of Funds Rease enter below the types of funding and arrounls requested fa the proposed project, including if the funding is conTifted. If not a loan, leave loan tears blank Select the blank space for possible sources of income, a enter your own. Public Resources Funding Source and Type (?) Amount Interest rate Term(?) Committed Iowa City HOME/CDBG $ 240000.00 0 No Total Public Funds $ 240,000.00 For uncommitted funds, please indicate when the applicant will applyfor funds These public funds represent this CDBG/HOME grant proposal for total down payments for 4 houses. Private Resources Funding Source & Type (?) Amount Interest rate Term(?) Committed Bank Loan $ 700,000.00 5% 20 No Total Private Funds $ 700,000.00 Total Project Funding $ 940,000.00 Use of Fund Please enter below the uses of funding and amounts requested for the proposed project, including whether formal cost estimates were received. Select the blank space for possible use of funds, or enter your o wn." Type (?) Amount Formal Cost Name of Entity Estimate providing cost estimate 1. House & land acquisition $ 235,000.00 No Successful Living recent purchase 2. House & land acquisition $ 235,000.00 No Successful Living recent purchase 3. House & land acquisition $ 235,000.00 No Successful Living recent purchase Type (?) Amount Formal Cost Name of Entity Estimate providing cost estimate 4. House & land acquisition $ 235,000.00 No Successful Living recent purchase $ No $ No $ No $ No Total Use of Funds Amount $ 940,000.00 Scope of work(?) Attach any documantaton used fa cost esUrretes Other Considerations Number of households or persons served* 20 Total cost per household or person served $ 47,000.00 What percentage of the proposed budget will be made up of private funds?* 74.47 Dollars Leveraged Per City Dollar Spent $ 2.92 Describe any community partnerships or volunteers that will contribute to the project. We partner with: the Abbe Center, NAMI, Hills Bank, DHS, the East Central Region and various city departments help our agency run successfully while we take care of clients. Our staff are on a first name basis with Social Security. We get referrals from UIHC and Mercy & are often back & forth with clients. Local churches help with our client holiday parties and food banks (incl Crisis Ctr). We take them to city hall to check on their Section 8 applications. All agencies work with one another to help all of our clients. The ARC works some with our clients to see if they are suited to work. Our agency work is a community effort and we all necessarily know and work well with one another. We will be entering into some joint fund-raising endeavors with NAMI soon. We have a close relationship with NAACP and will be jointly planning activities with them soon, to strengthen our outreach with minorities. Describe any identity of interest (101) relationships with the applicant and/or project owner, i.e. General Partner has a financial interest in the construction company, etc.* A board member's real estate firm helps us find houses to buy,. Pro forma * (?) Find the prof a" and profor" instruction at www.icgw.agVacticnplan down pymts HOME Pro Forma 2019 January.xls 62.5KB Proforma Spread Sheet FY20 Rental Housing Projects Please eme, mf. obm into'omv'!dsonlvT wu ae, usm excel. Line Descri tion Symbols YR1 YR2 YR3 YR4 YR5 YR6 YR7 YR8 YR9 YR10 Revenues +C_Rent $ 108,000On $ 110,1D000 +D. Income $ - $ +T. eomn,bunnn $ $ 1 Gross Rental Income $ 112,36320 $ 114,61046 $ 116,902.67 $ 119,240]3 $ 121,62554 $ 124,058DO $ 126,53921 $ 129,070On 2 Otherincorne E $ $ $ $ $ $ $ 3 Tenant Contributions $ $ $ $ $ $ $ $ 4 Gross Revenues =G. Income $ 108,000.00 $ 110,16000 $ 112363.On $ 114,61046 $ 116902.67 $ 11s240.]3 $ 12162554 $ 124,05805 $ 12653921 $ 129,07000 5 Vacancy Loss -vac $ 8,64000 $ 881280 $ 8989 DO $ 9,1 On 84 $ 935221 $ 953926 $ 9,]3004 $ 992464 $ 10,12314 $ 10,325 DO t5aevaeaae. doss Ioeoiva 6 Effective Gross Income =EGI $ 99,36000 $ 101,34720 $ 103,37414 $ 105,441 63 $ 10],550.46 $ 109,]0147 $ 111,895 W $ 114,133.41 $ 116,416On $ 118,]4440 Operating Expenses $ 3200 On $ 3296 On The total items #7-10 shall be no E 16,000.00 $ 16,480.00 less than $2,8501unIt $ 8,640On $ 8,89920 $ 2,000On $ 2,060On $ - $ $ 14000n $ 1442 On 7 Insurance $ 339488 $ 3,496.73 $ 360163 $ 3,709 On $ 38209] $ 3935 DO $ 4,05 DO $ 4,17527 8 Maintenance &StmctUral Repairs $ is 9]440 $ 1],48363 E 18,008.14 E 18548.39 E 19,104.84 8 196T/.96 E 20,26632 E 20,8]63] 9 Management Fees $ 9,1DO18 $ 9,44116 $ 9,]2440 $ 10,01613 $ 10,31661 $ 10,626.11 $ 10,94489 $ 11,27324 10 Misc. Operating Expenses $ 2,12180 $ 2,18545 $ 2,25102 $ 2,31855 $ 2,38810 $ 2,45975 $ 2,53354 $ 2,60955 11 Property Tax Reserves(oponng gene no than$35aunnl E $ E $ E $ $ $ 12 $ 148526 $ 152982 $ 15]5]t $ i6zP.96 $ i6]i 67 $ ij2182 $ ij]348 $ 182668 13 Total Operating Expenses -OPR Expences $ 31240 DO $ 32,1 H 20 $ 33,14252 $ 34,136.]9 $ 35,Jer. $ 36215 ]2 E 3],302.19 E 38,42126 E 395]390 E 40,]6111 14 Net Operating Income =N01 $ 68,12000 $ 69,17000 $ 70,23163 $ ]1,304.84 $ 72,389% $ 73,48575 $ 74,59330 $ 75,71215 $ 76,84218 $ 77,98328 15 Debt Service First Mortgage 20 yrs@5% $ 55,428 00 $ 55,428 DO $ 55,428 00 $ 55,428 00 $ 55,428 DO $ 55,428 DO $ 55,428 DO $ 55,428 DO $ 55,428 DO $ 55,428 On E E E E E E E $ E E 16 Debt Service Subordinate Mortgage(s) 17 Total Debt Service Tl $ 55,428 00 $ 55,428 00 $ 55,428 00 $ 55,428 00 $ 55,428 00 $ 55,428 00 $ 55,428 00 $ 55,428 00 $ 55,428 00 $ 55,428 00 18 dash Flow =CF $ 12,692.00 $ 13,742On $ 14,803DO $ 15,87684 $ 16,96156 $ 18,05775 $ 19,165DO $ 20,28415 - #DIVIOI $ 21,41418 $ - #DIV10I $ 22,55528 $ - *DIv101 18(b) Equity Investment In Project $ #DIVI01 #DIVI01 #DIVI01 #DIVI01 - #DIVI01 #DIVI01 19 Cash -on- Cash ROI CF #DIVI01 r0111F1111111111tE11111mesmem n Poed peck-.eRatio (anal vra;suueeno n«mm tin on-e=omvlon.vnnoe. soeoo�l.misoa Equity Invest DCR 1228981742 1247925236 126]0]8516 1286440705 1WW10756 1325]8]445 1345769363 1365%4903 1386342259 140692941 Line YR1 YR2 YR3 YR4 YR5 YR6 YR7 YR8 YR9 YR10 Determtmno Taxes 20 Cash Flow CF E 12,89200 $ 13,74200 $ 14,8W63 $ 15,87684 $ 16,96156 $ 18,05775 $ 19,18530 $ 20,284.15 $ 21,41418 $ 22,55528 21 Depreciation Expenses -DEER $ $ S $ E $ $ E $ 22 Amortization of Fees AMORTL $ $ S - $ E $ - $ - $ 1140000 $ - $ . - $ 1,40000 $ 8 $ 1,40060 $ 23 24 Principal Payments Reserves +P +RESERVES E 1,49000 $ 1,40060 $ 1,40060 $ 1,40000 $ 1,40060 $ 1AMM $ 1,40060 25 Eamings(Loss) Before Taxes =EBTx E 14,09200 $ 15,14200 $ 1620363 $ 17,27684 $ 18361% $ 19,45775 $ 20,56530 $ 21684.15 $ 2281418 $ 2395528 26 Ix Tax Rate (35% or 0%) xRATE 0% 0% 0% 0% 0% o% o% 0% 0% 27 Tax Incurred Saved =TAXor(Sav,i ) E E $ $ E E E E E E Cash Flow After Tax 28 Cash Flow CF $ 12,69200 $ 13,74200 $ 14,80363 $ 1587684 $ 1696156 $ 18,05775 $ 19,16530 $ 20,284.15 $ 2141418 $ 22,55528 29 Tax Incurred (Tax Saved) -TAX (+SAV) E 8 $ $ $ E $ $ E E 30 Cash Flow After Tax =CFATx $ 1269200 $ 13,74200 $ 14,803.63 IS 1587684 $ 1696156 $ 18,05775 $ 19,16530 $ 20,284.15 $ 2141418 $ 22,55528 Line Total Benefit Analysis 31 Cash Flow After Tax CFATx $ 12,69200 $ 13,74200 $ 14,803.63 $ 15,87684 $ 16,96156 $ 18,05775 $ 19,16530 $ 20,284.15 $ 2141418 $ 22,55528 32 Rehabilitation Tax Credit +RTe E $ S S 8 $ $ 8 $ 33 Low Income Housing Tax Credit +uuTe E $ S S $ $ $ $ $ 34 Net Sale Proceeds +NSP E $ $ $ $ $ $ $ S S 35 Total Benefits After Tax (NCFAT) =NCFATx $ 12,69200 $ 13,74200 $ 14,80363 $ 1587684 $ 1696156 $ 18,05775 $ 19,16530 $ z ,28415 $ 21,414 .18 $ z ,55528 36 Retum on Investment Roi ttDiwo! #Diwo! #Diwo! #Diwo! #Diwo! #Diwo! #Diwo! #Diwo! ttorv101 #Diwo! YR11 YR12 YR13 YR14 YR15 YR16 YR17 YR18 YR19 YR20 Line Description Revenues $ 131,65140 $ 134,28443 $ 136,97011 $ 139,]0952 $ 142,50371 $ 145,35378 $ 148,26086 $ 151,2260] $ 154,25059 $ 15],33561 1 Gross Rental Income E $ $ $ $ $ $ $ $ $ 2 Other Income $ 8 I $ 8 I $ 8 I $ 8 I $ 8 1 3 Tenant Contributions $ 13165140 $ 13428443 $ 13697011 $ 139,]0952 $ 142503.71 $ 145353.78 $ 1 48,260 86 $ 15122607 $ 15425059 $ 15],33561 4 Gross Revenues $ 10,53211 $ 10,74275 $ 10,95761 $ 1117676 $ 1140030 $ 1162830 $ 1186087 $ 12,09869 $ 1234065 $ 1258685 5 Vacancy Loss (5%Vac Rae. crass Inc-) $ 12111929 $ 12354167 $ 126,012GO $ 12853275 $ 131103.41 $ 133,72548 $ 13639999 $ 139,12799 $ 14191055 $ 144j48.]6 6 Effective Gross Income Operating Expenses $ 4,30053 $ 4,42955 $ 4,56243 $ 4,69931 $ 4,84029 $ 4,98550 $ 5,13506 $ 528911 $ 5,44179 $ 5611?2 7 Insurance $ 2150266 $ 22,14774 $ 22,81217 $ 23,49654 $ 24,20144 $ 24,9274 $ 2567530 $ 26,44556 $ 2],23893 $ 28,056.10 8 Maintenance & Structural Repairs $ 11,61144 $ 11,95978 $ 12,31857 $ 12,68813 $ 13,06878 $ 13,46084 $ 13,86466 $ 14,28060 $ 14,]0902 $ 15,1Go2 9 Management Fees $ 2,687 83 $ 2,]684] 1 $ 285152 $ 293707 1 $ 3,02518 $ 3,11593 1 $ 320941 1 $ 3305.70 1 $ 3,4048] $ 350701 10 Misc. Operating Expenses 8 8 8 8 E 8 $ $ 8 $ 11 Property Taxes $ 1,88148 $ 1,937-93 $ 1,99607 $ 2,05595 $ 2,11763 $ 2,18115 $ 2,246-59 $ 2,31399 $ 2,38341 $ 2,45491 12 Reserves $ 4198395 $ 43243.47 $ 44,540.Tr $ 4587699 $ 4125330 $ 4867090 $ 50,13103 $ 5163496 $ 53,18401 $ 54,]]953 13 Total Operating Expenses $ 79,135 34 $ 80,29821 $ 81,471 73 $ 82,65576 $ 83,850 11 $ 85,054 58 $ 86,268 96 $ 87,493 03 $ 88,72654 $ 89,96923 14 Net Operating Income $ 55,42890 $ 55,428 00 E E $ 55,428 00 E $ 55,42860 E $ 55,42860 E $ 55,42860 E $ 55,42860 $ $ 55,428 00 E $ 55,428 00 E $ 55,428 00 E 15 Debt Service First Mortgage 16 Debt Service Subordinate Mortgage(s) $ 55,428 00 $ 55,428 00 $ 55,428 00 $ 55,428 00 $ 55,428 00 $ 55,428 00 $ 55,42890 $ 55,428 00 $ 55,428 00 $ 55,428 00 17 Total Debt Service $ 23,70734 $ - *DIV(m $ 24,87021 aDIV(m $ 26,043.73 $ 27,22]]6 $ 28,422.11 $ 29,62658 $ 30,84096 - aDimm $ 32,06503 $ - #DIV(m $ 3329854 $ - #DIV(m $ 3454123 $ - aDIV(m 18 Cash Flow 18(b) Equity Investment In Project #DIV(m aDIV(m #DIV(m aDIV(m 19 Cash -on- Cash ROI cam Flow a. aea m Eooi. ne%rrem n a o en 1 42H14113 1 448693894 1 469866035 1 49122]56] 1 512]]5256 1 534505593 1 556414]81 1 5]8498]26 1 600753019 1 6231]292] oen co.e•aAe Raeo YR11 YR12 YR13 YR14 YR15 YR16 YR17 YR18 YR19 YR20 Line Description Determininc Taxes $ 23,70734 $ 24,87021 $ 26,M 73 $ 27,22776 $ 28,4211 $ 2962658 $ 3084096 $ 32,06503 $ 3329854 $ 3454123 20 Cash Flow $ $ $ 8 $ $ $ $ $ $ 21 Depreciation Expenses $ - $ $ 8 $ $ - $ - $ 1,40000 $ $ $ 1,40000 E $ $ 22 Amortization of Fees $ 1,4WW $ 1,4WW $ 1,4WW 23 24 Principal Payments Reserves $ 1,4000D $ 1,4WW $ 1,4WW $ 1,4WW $ 1,4WW $ 25,10734 $ 2627021 $ 27,44 73 $ 28627.76 $ 2982 11 $ 31,02658 $ 3224096 $ 33,46503 $ 3469854 $ 3594123 25 Earnings (Loss) Before Taxes 0% 0% 0% 0% 0% D% 6% 0% 0% 0% 26 x Tax Rate (35% or 0%) $ $ 8 8 E $ E E $ E 27 Tax Incurred Saved Cash Flow After Tax $ 23,70734 $ 24,87021 $ 26,M 73 $ 27,227.76 $ 28,42 11 $ 29,62658 $ 3084096 $ 32,06503 $ 3329854 $ 3454123 28 Cash Flow $ $ $ 8 $ $ $ $ $ $ 29 Tax Incurred (Tax Saved) $ 23,70734 $ 24,87021 $ 26,M 73 $ 27,22776 1 $ 28,4211 $ 2962658 $ 3084096 $ 32,06503 $ 3329 $ 3454123 30 Cash Flow After Tax Line Total Benefit Analysis $ 23,70734 $ 24,87021 $ 26,M 73 $ 27,22776 $ 28,4211 $ 296265e $ 3084096 $ 32,06503 $ 3329 $ 3454123 31 Cash Flow After Tax $ 8 $ E $ $ $ $ $ $ 32 Rehabilitation Tax Credit $ $ $ $ $ $ $ $ $ $ $ - $ 33 Low Income Housing Tax Credit $ $ $ $ $ $ $ $ 34 Net Sale Proceeds $ 23,70734 $ 24,87021 $ 26,M 73 $ 27,22776 $ 28,4211 $ 29,62658 $ 3084096 $ 32,065.03 $ 3329854 $ 34,54123 35 Total Benefits After Tax(NCFAT) #MV101 #MV101 #MV101 #MV101 #MV101 #MV101 #MV101 ttoiwD1 ttoiw01 ttoiw01 36 Return on Investment Feasibility and Community Impact Outline the proposed timetable and expected impact for the project. For the timetable, include when requested funding will be committed, project milestones such as rezoning or construction, and when funds will be spent. If applicant plans to apply for funds not committed, include the anticipated date for application and when funds will be awarded. For expected impact, break out beneficiaries by income group. If funded, both the schedule and income breakdown will be used for any project agreement. Project Benefit Narrative Describe project benefits and requirements Such as beneficiary eligibility requirerrents, targeted beneficiaries, etc. CMI clients are our sole targeted beneficiaries. Our only criteria is that they have a psychiatric diagnosis. If no insurance, we help them get Medicaid; b/c they have nothing when they come to us (all are<30%AMI), all qualify for it. Some also have substance issues, common in CMI people who self -treat in the absence of psychiatric intervention. We work in tandem with medical providers for this treatment. Our high -needs houses are safe, secure, furnished, and staffed 24/7. We help them with getting food and other help. They can stay with us in our high -needs houses indefinitely. We keep our houses well -maintained, comfortable, clean, secure, all of which are espec important to this client population. Rental Housing Expected Number of Units* Expected Rent* 20 $ 450.00 Time Table .......................................................................... Date Description of Activity 6/15/2019 Begin to look at houses 7/3/2019 Make offer on one house, begin to negotiate, sched inspections 10/3/2019 Make offer on second house etc 1/6/2020 Make offer on third house etc 4/3/2020 Make offer on forth house etc To promote the efficient use of public funds, describe how the project will continue to provide public benefits through and beyond the required compliance period. Describe how the project will provide public benefits below rates in the existing market Our houses are fixed assets are depreciated over 20-30 years. We intend to keep them well -maintained and upgraded as needed for decades to house Iowa City's CMI population. Our 5-bedroom model works well and we plan to continue this programming into the distant future in the same way we administer it currently. We will always provide low-income rooms to the Chronically Mentally III who are indigent; that is why we exist. In what manner or form will the project proceed if it is awarded less than full funding? If there are several components, how will they be prioritized? We will use any funds awarded us as down payments for houses, although the number of total houses may be fewer if we are awarded less. Income Breakdown Please indicate the population to be served by the proposed program according to the linked income categories. If requesting money for a specific administrative expense (like a staff member's salary), indicate the population served by your entire agency. (Please Note: If funded, this information will be used as income targeting for your Agreement). Median Income Number of Persons 0 - 30% 20 31 - 50% 51 - 60% 61 - 80% Over 80% Total Persons/Households 20 Percent LMI 100.00 Please note the basis for these estimates* We help all clients with their finances and keeping Medicaid in the loop to verify their low incomes. These are estimates based on real (current) client financial positions. Capacity and Applicant History Please list amount of CDBG and/or HOME funds received Wthin the lad four Otyfsal years and the status of the pmject(s) undertalxn. CDBG and/or HOME funds received Fiscal Year Funds Received Budgeted Amount Date Project Amount Expended Completed July 1, 2017 to June 30, 2018 $ 87,000.00 $ 87,000.00 7/16/2018 July 1, 2017 to June 30, 2018 $ 50,000.00 $ 50,000.00 2/28/2019 July 1, 2018 to June 30, 2019 $ 59,999.00 $ 59,999.00 12/28/2018 July 1, 2018 to June 30, 2019 $ 59,999.00 $ 59,999.00 2/28/2019 July 1, 2018 to June 30, 2019 $ 59,999.00 $ 59,999.00 4/30/2019 July 1, 2018 to June 30, 2019 $ 14,003.00 $ 14,003.00 6/29/2019 Please describe your organization's structure, officers, and staff.* Our organization chart has been uploaded. See Evidence of Organizational Capacity (below). Please describe the education and experience of key staff who will implement the project (excluding volunteers, board members, and consultants). If consultants are utilized, identify what role theywill play in the project.* Roger Goedken, Executive Director, BA, BS, Psychology & Sociology, Successful Living 7 years, 20 years exp Patricia Meyer, Facilities Director, Successful Living 8 years & 30 years experience Steve Nachazel, Housing Intake Specialist, BA Psychology, 30 years experience Deb Watson, Quality Assurance, 30 years experience, 15 years at Successful Living Carla Phelps, Grant & Dec., BBA,Grad Dip Couns.&Psychotherapy, MA App.Psychotherapy, 30 years exp. Ashley Gillette, Finance Director, 20 years experience House leads & house staff, all with various educational backgrounds and many years experience Marc White, Maintenance Supervisor, BA, 30 years experience Please summarize your organization's portfolio, including how many units you own and/or manage, how many homes you have built/rehabilitated/sold, and what projects are underway.* We lease office space at 2406 Towncrest Drive, Iowa City. We sold off a 20-bedroom house on Dubuque Street 3 years ago because it was too large for us. We sold off a 9-bedroom house on Dodge St. in 2018 for the same reason. We still own a house on Church St which has 8 bedrooms, 5 of them occupied. We will sell it for the same reason. We will use the proceeds to buy a replacement house to move same tenants into. (We may also use $14k in FY19 grant funds we have available to go towards the purchase in June 2019.). Our house on N Johnson is treated by the city as a house to be historically preserved. It is currently undergoing some challenging rehab work to shore it up and address other issues (but is fully occupied). We own 5-bedroom houses at 3107 Village Rd, Iowa City; 821 N. Johnson, Iowa City, 1257 Esther Ct., Iowa City, 1403 Hollywood Blvd, Iowa City, and recently closed on 2209 Russell Dr, Iowa City in Dec 2018 (we are adding a 5th bedroom and fencing). We have grant funds for down payments for 2 more houses this fiscal year and expect those houses to be bought and occupied by July 1, 2019. Evidence of Fiscal Capacity(?) Audit Summary AUDIT LETTER Mar2018.pdf Audited Financials for Jan19CDBGHOME App.pdf Evidence of Organizational Capacity(?) 595.17KB 563.05KB Up to four pages of additional infanation about the capacity of the organ¢afion Trey be included. Examples of possible evidence Trey be resumes of lay staff, additional descriptions of organizational activities, a other relevant infonetion. ORG Chart 1-14-19.docx 102.46KB Is the applicant (including partners, co -applicants, etc.) currently in compliance with all federal, state and local laws, rules and regulations, including any CDBG and/or HOME funded projects?* O Yes 6 No O Currently in litigation Please identify relevant market factors that verify the demand for the proposed project based on the City of Iowa City Housing Program Guidelines policy. The City may require a Market Analysis for large or complicated projects to support the need before entering an agreement. "This does not apply to tenant based rental assistance, homeowner rehabilitation, down payment assistance, a Oi00 operating expenses. The closures of Iowa's longer -term mental health facilities, combined with multiple well-known hospitals and psychiatric resources in the Iowa City area, and Iowa City being on 1-80 and 1-380 - means Iowa City is an accessible destination for the Chronically Mentally III who somehow migrate this direction. This is why our housing prog always has a waiting list. A hallmark of the illness is isolation, and often sufferers cannot help themselves, falling away from supports and drifting, sometimes self -medicating in lieu of prescribed medications due to lack of insurance and lack of general care. All of our renters are "extremely low income" as defined by Iowa City's housing program. Rent is very Iow(in accordance with I.C. guidelines) and our agency pays all utilities. JAMES Q. BUXTON, C.P.A. 1B1,1 MUSCATINE AVENUE IOWA CITY, IOWA 52240-6414 MEMBER OF (319) 354-7262 AMERICAN INSTITUTE OF CERTIFIED FAX (319) 336-3090 PUBLIC ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT To the Board of Directors of Successful Living Supportive Housing Program MEMBER OF IOWA SOCIETY OF CERTIR PUBLIC ACCOUNTANTS I have audited the accompanying financial statements of Successful Living Supportive housing Program (a non-profit organization), which comprise the statements of financial position as of June 30, 2017 and 2016, and the related statements of activities, functional expenses, and cash flows for the years then ended, and the related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or 8rror. Auditor's Responsibility My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, I express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. I believe the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Opinion In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Successful Living Supportive Housing Program as of June 30, 2017 and 2016, and the changes in its net assets and its cash flows for the years then ended, in accordance with accounting principles generally accepted in the United States of America. IoYtM rad— C ? h a City, Iowa March 8, 2018 -I- SUCCESSFUL LIVING SUPPORTIVE HOUSING PROGRAM Iowa City, Iowa FINANCIAL STATEMENTS June 30, 2017 and 2016 TABLE OF CONTENTS INDEPENDENT AUDITOR'S REPORT ... FINANCIAL STATEMENTS Statements of Financial Position ..... Statements of Activities ................... Statements of Functional Expenses. Statements of Cash Flows ................ .................................................1 ....................................................................... 2 ....................................................................... 3 ................................................................... 4-5 ....................................................................... 6 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES....................................................... 7-9 NOTES TO FINANCIAL STATEMENTS.................................................................................. 10-13 MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS JAMES B. BUXTON, C.P.A. 1811 MUSCATINE AVENUE IOWA CITY, IOWA 52240-6414 (319) 354-7262 FAX (319) 338-3090 INDEPENDENT AUDITOR'S REPORT To the Board of Directors of Successful Living Supportive Housing Program MEMBER OF IOWA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS I have audited the accompanying financial statements of Successful Living Supportive Housing Program (a non-profit organization), which comprise the statements of financial position as of June 30, 2017 and 2016, and the related statements of activities, functional expenses, and cash flows for the years then ended, and the related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fain presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with auditing standards generally accepted ii the United States of America. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are fa-ee of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, I express no such opinion. An audit also includes evaluating the appropriateness of accorinting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. I believe the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Opinion In my opinion, the financial statements referred to above present fairly, in all material respects, the fmancial position of Successful Living Supportive Housing Program as of June 30, 2017 and 2016, and the changes in its net assets and its cash flows for the years then ended, in accordance with accounting principles generally accepted in the United States of America. IMn�— Ioa City, Iowa March 8, 2018 4- SUCCESSFUL LIVING SUPPORTIVE HOUSING PROGRAM Statements of Financial Position June 30, 2017 and 2016 2017 2016 Assets Current Assets Checking $110,433 $200,255 Cash -house account 13,132 61,935 Cash and cash equivalents 123,565 262,190 Accounts receivable 188,132 128,215 Deposits 6,231 6,231 Prepaid expenses 7,345 10,991 Total current assets 325,273 407,627 Property and Equipment Furniture and equipment 86,548 58,949 Buildings and improvements 1,133,362 900,366 Land 184,367 142,367 1,404,277 1,101,682 Less accumulated depreciation 286,361 247,451 1,117,916 854,231 Total assets $1,443,189 $1,261,858 Liabilities and Net Assets Current Liabilities Accounts and credit cards payable $29,184 $7,825 Current portion of long-term debt 126,966 11,311 Funds held for consumers 13,132 61,935 Deposits payable 435 100 Accrued expenses 125,699 78,914 Loan payable -bank -line of credit 74,627 0 Long -Term Debt Long-term debt, net of current portion 390,533 334,906 Total liabilities 760,576 494,991 Net assets Unrestricted 682,613 766,867 Total liabilities and net assets $1,443,189 $1,261,858 The accompanying summary of significant accounting policies and notes to financial statements are an integral part of these financial statements. -2- SUCCESSFUL LIVING SUPPORTIVE HOUSING PROGRAM Statements of Activities Years Ended June 30, 2017 and 2016 Support and Revenue Program service fees Rental income Grant income -mortgage principal forgiven Grant income -other Payee services Contributions Interest income Gain on sale of assets Other income Total support and revenue Expenses Program services Supportive Community Living Rental properties Fundraising General and administrative Total expenses Change in net assets Net assets, beginning of year Net assets, end of year 2017 2016 $1,511,552 $1,092,456 136,718 88,034 0 212,500 3,500 0 3,220 3,410 2,400 3,480 251 189 0 378,172 272 19 1,657,913 1,778,260 1,187,965 883,838 177,385 141,343 1,365,350 1,025,181 0 0 376,817 254,167 1,742,167 1,279,348 (84,254) 498,912 766,867 267,955 $682,613 $766,867 The accompanying summary of significant accounting policies and notes to financial statements are an integral part of these financial statements. -3- SUCCESSFUL LIVING SUPPORTIVE HOUSING PROGRAM Statement of Functional Expenses Year Ended June 30, 2017 Program Services Supported General Community Rental and Total Living Properties Administrative Expenses Salaries and wages $800,923 $89,406 $262,230 $1,152,559 Payroll taxes 70,847 7,400 20,275 98,522 Employee health and life insurance 39,340 4,392 11,660 55,392 Accounting fees 8,495 0 2,501 10,996 Advertising and promotion 0 0 5,134 5,134 Client needs 1,000 0 5,000 6,000 Communications 17,727 5,863 2,662 26,252 Depreciation 16,229 22,193 488 38,910 Insurance 27,732 5,005 7,870 40,607 Interest expense 7,716 7,789 1,943 17,448 Leased equipment 740 0 218 958 Legal and professional (83) 60 3,842 3,819 Licenses and permits 383 25 0 408 Mileage and auto 38,374 0 12,802 51,176 Office rent 63,772 0 18,780 82,552 Pension expense 3,633 0 4,666 8,299 Real estate taxes 4,192 3,442 0 7,634 Recreation 1,169 0 0 1,169 Repairs 25,700 12,379 4,930 43,009 Supplies 36,007 5,207 4,242 45,456 Tax penalties 0 0 1,046 1,046 Training 564 0 1,638 2,202 Travel and lodging 50 (875) 2,963 2,138 Utilities 20,823 13,988 1,312 36,123 Other expenses 2,632 1,111 615 4,358 Totals $1,187,965 $177,385 $376,817 $1,742,167 The accompanying summary of significant accounting policies and notes to financial statements are an integral part of these financial statements. -4- SUCCESSFUL LIVING SUPPORTIVE HOUSING PROGRAM Statement of Functional Expenses Year Ended June 30, 2016 Program Services Supported General Community Rental and Total Living Properties Administrative Expenses Salaries and wages $609,569 $23,925 $183,861 $817,355 Payroll taxes 52,854 2,122 14,279 69,255 Employee health and life insurance 36,754 1,443 10,116 48,313 Accounting fees 7,053 0 2,047 9,100 Advertising and promotion 11 0 3,503 3,514 Client needs 0 0 0 0 Communications 11,323 7,438 2,113 20,874 Depreciation 6,448 28,153 394 34,995 Insurance 21,834 3,715 6,452 32,001 Interest expense 796 16,903 0 17,699 Leased equipment 901 0 261 1,162 Legal and professional 220 212 3,455 3,887 Licenses and permits 756 1,871 258 2,885 Mileage and auto 37,699 0 1,040 38,739 Office rent 58,421 0 16,951 75,372 Pension expense 5,951 233 1,629 7,813 Real estate taxes 841 1,219 0 2,059 Recreation 631 0 0 631 Repairs 848 19,925 2,571 23,344 Supplies 22,306 5,711 2,511 30,528 Tax penalties 0 0 843 843 Training 112 0 466 578 Travel and lodging 0 5,860 0 5,860 Utilities 7,022 22,689 1,142 30,853 Other expenses 1,488 (75) 275 1,688 Totals $883,838 $141,343 $254,167 $1,279,348 The accompanying summary of significant accounting policies and notes to financial statements are an integral part of these financial statements. -5- SUCCESSFUL LIVING SUPPORTIVE HOUSING PROGRAM Statements of Cash Flows Years Ended Jume 30, 2017 and 2016 2017 2016 Cash flows from operating activities Change in net assets ($84,254) $498,912 Adjustments to reconcile change in net assets to net cash (used) in operating activities: Depreciation 38,910 34,995 Decrease (increase) in operating assets Accounts receivable (59,917) 8,236 Prepaid expenses 3,646 (5,035) Increase (decrease) in operating liabilities Accounts and credit cards payable 21,359 (3,075) Funds held for consumers (48,803) 34,579 Deposits payable 335 100 Accrued expenses 46,785 19,150 Net cash provided by operating activities (81,939) 587,862 Cash flows used by investing activities Purchase of furniture and equipment (27,599) 0 Purchase of land, buildings, and improvements (274,996) (25,518) Net cash (used) by investing activities (302,595) (25,518) Cash flows from financing activities Note proceeds -Hills Bank & Trust Co. 341,763 369,204 Payments on notes payable -Hills Batik & Trust Co. (95,854) (521,201) Payments on notes payable -City of Iowa City 0 (226,998) Net cash (used) by financing activities 245,909 (378,995) Net change in cash and cash equivalents (138,625) 183,349 Beginning cash and cash equivalents 262,190 78,841 Ending cash and cash equivalents $123,565 $262,190 Supplemental Disclosures of Cash Flow Information Cash payments for interest $16,644 $17,843 The accompanying summary of significant accounting policies and notes to financial statements are an integral part of these financial statements. 01 SUCCESSFUL LIVING SUPPORTIVE HOUSING PROGRAM Summary of Significant Accounting Policies June 30, 2017 and 2016 Nature of activities. Successful Living Supportive Housing Program is a not for profit organization incorporated in 1998 for the purpose of assisting homeless and/or very low income persons to find affordable housing along with on -site counseling support services to empower residents to live independently. Support services include employment counseling, assistance with handling daily living skills and personal finances, and services for persons with mental illnesses. Successful Living Supportive Housing Program serves persons, 18 years or older, in Johnson County, Iowa, and the surrounding area. The Corporation's fiscal year ends on June 30. Services are offered on a one-on-one and group basis. Services include teaching consumers skills in areas such as finance, housing, communication, socialization, self -care, nutrition, conflict resolution, and interpersonal relationship development. Payee services are available to consumers. Consumers enter into a written contract with Successful Living Supportive Housing Program that spells out both short and long -tern goals that the consumer would like to achieve. Persons receiving services must have a minimum of 30 days free of any substance abuse. The Organization also offers classes to consinuers through a Day-Hab program. Successful Living Supportive Housing Program owns five houses in Iowa City, which can be rented by the room for below -market rent by consumers served by the Organization. Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Accordingly, actual results could differ from those estimates. Certain significant estimates. The accrual for accounts receivable and the liability for estimated third party settlements involve certain significant estimates made by management. These estimates are reviewed by management routinely, and it is reasonably possible that circumstances that exist may change in the near -terra future and that the effect could be material to the financial statements. Revenue recognition Revenue from services is recognized as the services are performed, primarily on the basis of hours of service provided, at estimated net realizable amounts. Contract and grant revenue is recognized on a cost reimbursement basis as expenditures are incurred. Medicaid services are subject to animal audits of rates that are based upon actual costs and are subject to retroactive fee adjustments as determined by the Managed Care Organizations. Such adjustments are estimated and recorded when it is probable that an adjustment will be required. Fee adjustments are reported as a reduction or increase in revenue, if detenmined in the same period as the original billing is made, and adjustments determined in a subsequent year are included as revenue on the statement of activities in the year of the adjustment determination. Income taxes. The Organization is a non-profit organization and is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code of 1954 and classified by the Internal Revenue Service as other than a private foundation. There was no unrelated business income for the years ended June 30, 2017 and 2016. -7- SUCCESSFUL LIVING SUPPORTIVE HOUSING PROGRAM Summary of Significant Accounting Policies June 30, 2017 and 2016 Functional allocation of expenses. Directly identifiable expenses are charged to programs and supporting services. Expenses related to more than one function are charged to prograins and supporting services on the basis of periodic time and expense studies. General and administrative expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the Organization. Basis of presentation. Financial statement presentation follows the recommendations of the Financial Accounting Standards Board in its Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements of Not -for -Profit Organizations. Under SFAS No. 117, the Organization is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. As of June 30, 2017 and 2016 and for the years then ended, the Organization had no temporarily or permanently restricted net assets. Restricted and unrestricted revenue. The Organization follows SFAS No. 116, Accounting for Contributions Received and Contributions Made. This standard requires that contributions received be recorded as unrestricted, temporarily restricted, or permanently restricted support depending on the existence or nature of any donor restrictions. Contributions are recognized when the donor makes a promise to give to the Organization that is, in substance, unconditional. Contributions that are restricted by the donor are reported as increases in unrestricted net assets if the restrictions expire (when a stipulated time restriction ends or purpose restriction is accomplished) in the fiscal year in which the revenue is recognized. All other donor -restricted contributions are reported as increases in temporarily or pemnanently restricted net assets, depending on the nature of the restrictions. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the Statements of Activities as net assets released from restrictions. Cash and cash equivalents For purposes of the Statements of Cash Flows, the Organization considers all highly liquid investments available for current use with an initial maturity of three months or less when purchased to be cash equivalents. Accounts receivable. Amounts due from the State of Iowa and various counties arise from tine billing of program services after services have been performed and billing completed. Management has elected to record bad debts using the direct write-off method. Generally accepted accounting principles require that the allowance method be used to reflect bad debts. However, the effect of the use of the direct write-off method is not materially different from the results that would have been obtained had the allowance method been followed. Property and equipment. These assets are stated at cost. Depreciation is provided using the straight-line method over the estimated useful lives of the assets ranging from 5 to 39 years. Additions or betterments of $250 or more arc capitalized, while maintenance and repairs that do not improve or extend the useful lives of the respective assets are charged to expense as incurred. Upon sale or retirement of fixed assets, the costs and related accumulated depreciation are eliminated from the accounts. Any resulting gains or losses are included in the determination of net income. Ef SUCCESSFUL LIVING SUPPORTIVE HOUSING PROGRAM Summary of Significant Accounting Policies June 30, 2017 and 2016 Donations of properly and equipment are recorded as contributions at their estimated fair valise. Such donations are reported as unrestricted contributions urdess the donor has restricted the donated asset to a specific purpose. Assets donated with explicit restrictions regarding their use and contributions of cash that must be used to acquire property and equipment are reported as restricted contributions. Absent donor stipulations regarding how long those donated assets must be maintained, the Organization reports expirations of donor restrictions when the donated or acquired assets are placed in service as instructed by the donor. The Organization reclassifies temporarily restricted net assets at that time. Reclassifications. Certain accounts in the Statement of Functional Expenses for the year ended June 30, 2016 have been reclassified for comparative purposes to be consistent with the presentation in the Statement of Functional Expenses for the year ended June 30, 2017. 6I SUCCESSFUL LIVING SUPPORTIVE HOUSING PROGRAM Notes to Financial Statements June 30, 2017 and 2016 Note 1. Lone -term debt. Long-term debt at June 30, 2017 and 2016 consists of the following: 2017 2016 Notes payable to Hills Bank & Trust Company of Hills, Iowa Note payable, dated May 15, 2008 in the amount of $199,000, due May 15, 2033, interest rate 3.76%, monthly payments $1,057.81. Secured by a building and land with a book value at June 30, 2017 of $219,045. $151,375 $158,132 Note payable, dated January 24, 2004 in the amount of $115,000, due February 5, 2029, interest rate 5.00%, monthly payments $685.44. Secured by a building and land with a book value at June 30, 2017 of $224,362. 72,493 77,085 Note payable, dated November 9, 2016 in the amount of $185,000, due November 15, 2021, interest rate 4.56%, monthly payments $1,035.07. Secured by a building and land with a book value at June 30, 2017 of $202,624. 182,631 -0- Total notes payable to I -Tills Bank- & Trust Co. $406.499 $235,217 Notes payable to the City of Iowa City, Iowa Note payable, dated September 2, 2011 in the amount of $52,000, due July 1, 2017, interest rate 0.00%, forgivable mortgage, entire balance forgiven when due if property is used for housing for homeless and low-income in- dividuals. Loan proceeds used for property rehabilitation costs. Secured by a building and land with a June 30, 2017 book value of $224,362. Notes payable to the Housing Trust Fund of Johnson County Note payable, dated November 21, 2011 in the amount of $59,000, due July 1, 2017, interest rate 0.00%, forgivable mortgage, entire balance forgiven when due if property is used for housing for homeless and low-income in- dividuals. Loan proceeds used for property rehabilitation costs. Secured by buildings and land with a June 30, 2017 book value of $443,407. Total notes payable Less current portion of long-term debt Total notes payable, net current portion -10- 52.000 52,000 $ 59,000 $ 59,000 $517,499 $346,217 126,966 11,311 390 533 SU1906 SUCCESSFUL LIVING SUPPORTIVE HOUSING PROGRAM Notes to Financial Statements June 30, 2017 and 2016 Note 1 (cont.) Estimated annual maturities of the long-term debt are as follows: Year ending June 30, 2018 Year ending June 30, 2019 Year ending June 30, 2020 Year ending June 30, 2021 Year ending June 30, 2022 Years ending after June 30, 2022 Total $126,966 16,672 17,363 18,170 178,726 159,602 517.999 Interest expense on notes payable to Hills Bank & Trust Company amounted to $15,541 and $17,699 for the years ended June 30, 2017 and 2016, respectively. Note 2. Line of Credit. During the year ended June 30, 2017, the Organization maintained a $90,000 line of credit with Hills Bank and Trust Company. The line of credit is collateralized by substantially all assets of the Organization. As of June 30, 2017 and 2016, the Organization owed $74,627 and $-0-, respectively, on the line of credit. Interest expense on the line of credit amounted to $1,907 and $-0-, respectively, for the years ended June 30, 2017 and 2016, which is not included in interest expense discussed in Note 1. Note 3. Program service fees. The Organization receives program fees in various forms. Consumers are assessed by counselors and qualify for various supported community living programs and/or Medicaid, depending upon their individual needs. The Organization receives county funds for supported community living programs, Medicaid funds (Title XDQ, rental assistance programs, and rental amounts paid directly by or on behalf of consumers. Note 4. Business and credit concentrations. The Organization's main revenue source is program service fees. During the year ended June 30, 2017, the Organization received $1,511,552 from area counties and Medicaid (Title XIX) funds, which is approximately 91.7% of the Organization's program service revenue. The amount due the Organization as of June 30, 2017 included $187,262 in county and Medicaid funds. The Organization currently assists consumers in Iowa City, Iowa and the surrounding area. Note 5. Compensated absences. In addition to salaries and wages accrued in the normal course of business, the Organization has accrued $32,721 and $23,798 for the estimated cost of vacation pay earned, but not taken, by its employees as of June 30, 2017 and 2016, respectively. Note 6. Description of consumer leasing arrangements The Organization acts as lessor of rental units at their buildings located on Church Street, Dubuque Street, Dodge Street, Village Road, Esther Court, and Jolmson Street in Iowa City, Iowa. Rentals are restricted to low-income persons, and the rents are required to be below -market rates. Leases are month -to -month and can be -11- SUCCESSFUL LIVING SUPPORTIVE HOUSING PROGRAM Notes to Financial Statements Jrme 30, 2017 and 2016 Note 6 (cont.) cancelled by lessor or lessee upon 30 days written notice. The Organization realized $136,718 and $88,034 in gross rental income during the years ended June 30, 2017 and 2016, respectively. The rental urnits have a very low vacancy rate but future minimum rents are not guaranteed. Note 7. Lease commitments and Equipment Rental Expense. Effective July 1, 2014, the Organization began leasing office space and signed a lease with a three-year term ending on June 30, 2017. Under the terms of the lease the initial montlily rental payments are $6,231, with annual inflation increases based on the U.S. Bureau of Labor Consumer Price Index. The lease also required payment of a $6,231 security deposit. The Organization began leasing additional office space, effective June 3, 2016, close to its main office under a lease agreement that covered a 13 month period ending June 30, 2017. This additional lease required monthly lease payments of $600, as well as a $600 security deposit, which was unpaid as of June 30, 2017. The Organization combined and extended both leases, effective July 1, 2017, with a three-year term ending on June 30, 2020. Under the terms of the lease the initial monthly rental payments are $7,664, with annual inflation increases based on the U.S. Bureau of Labor Consumer Price Index. The lease also requires payment of a $7,664 security deposit. Under the terms of this lease, the Landlord has agreed to reimburse the Organization for a maximum of $15,000 in leasehold improvement costs. The Organization is also responsible for the payment of increases in real estate taxes on the property under the terms of the leases. The following is a schedule by year of future minimum payments under the leases in effect at June 30, 2017: Year ending June 30, 2018 $ 91,968 Year ending June 30, 2019 91,968 Year ending June 30, 2020 91,968 Total $275.904 Rent expense included in the financial statements for the years ending June 30, 2017 and 2016 came to $82,552 and $75,372, respectively, under the above lease agreements. Note S. Custodial accounts. The Organization maintains custodial accounts for consumers to assist them in managing their finances. The asset and liability as of June 30, 2017 and 2016 are shown on the Statements of Financial Position as Cash -house account and Funds held for consumers, respectively. Note 9. Retirement plan. The Organization established a retirement savings plan on January 1, 2005 for employees who reach eligibility after one year of employment. Employee contributions to the -12- SUCCESSFUL LIVING SUPPORTIVE HOUSING PROGRAM Notes to Financial Statements June 30, 2017 and 2016 Note 9 (cont.) plan are discretionary, and the Organization will match employee contributions up to 3% of eligible salaries. Contributions accrued and paid by the Organization to this plan for the years ended June 30, 2017 and 2016 were $8,299 and $7,813, respectively. Note 10. Related party transactions. During the years ended June 30, 2017 and 2016, the Organization sold and purchased properties as a part of their rental housing program, with the assistance of a board member, representing the Organization as their realtor. The board member/realtor shared in commissions of $32,000 (4.00°/u) and $33,500 (5.63%), respectively, paid on the $800,000 sale price and $595,000 total purchase prices. The $32,000 sale commission is included in the $378,172 gain on the sale of assets in the Statement of Activities for the year ended June 30, 2016. The $33,500 purchase commissions are included in the $595,000 acquisition cost of the properties, included in the Land, and Buildings and improvements accounts on the Statement of Financial Position as of June 30, 2017 and 2016. Note 11. Contingency -funding sources Major funding sources require the Organization to file cost reports that are used to detemine future provider hourly reimbursement rates. Also, the funding agencies may determine that the Organization needs to reimburse the funding agencies if it is determined that the Organization has received cost reimbursements during the fiscal year in excess of the amounts calculated in the cost reports. Note 12. Subsequent events. Subsequent events were evaluated through March 8, 2018, wlich is the date of the financial statements. As of March 8, 2018, events subsequent to fiscal year ended June 30, 2017 did not include any changes in operations, entity form, or urmecessary borrowing. -13- Suc essFL� �iving Finance Director (Ashley Gillette) Quality Assurance and Human Resources Director (Deb Watson) Quality Assurance Coordinator (Rita Silins) Front Office Associate (Mercedes Galvan) Office Support/Records Staff (Maureen Stokes) 2019 SUCCESSFUL LIVING ORGANIZATIONAL CHART Executive Director (RogerGoedken) Director, Grants & Dev. (Carla Phelps) IT Manager (Amanda Babcock) Outreach Program Housing Director Day Habilitation Director Director (Pat Meyer) (Chioma Onuigbo) (Susan Nicol) Medication Outreach Hab Home Leads Day Hab Counselors Administrator Coordinators (B.Bickford, K. Sanders, A. (Ashley Miller) (Marielle Cramer, Kofron) Molly Mosely) Intake Coordinator Outreach (Steve Nachazel) Hab Home Counselors Counselors Transitional House Lead (Jesse McCullum) Maintenance/Custodial (Stefforn Perkins) Roger Goedken I SUCCESSFUL LIVING Project Project Address 3107 Village Road, Iowa City Activity Type Rental Housing CITY STEPS Priority Preserving Existing Affordable Rental and Owner Housing Units CITY STEPS Goal Improve quality of existing affordable rental housing Amount Requested $75,000 Project Description Rehabilitate one 5-bedroom house to continue its operation as 5 SRO units with supportive services for low income persons who are chronically mentally ill. Improvements to make the home more comfortable and secure include upgrading the kitchen, bathroom, HVAC system, and other items. Repayment Terms Conditional occupancy loan (forgiven if follows requirements) Affordability Period 5 years proposed Property Taxes Tax exempt %CDBG/HOME Funded 88% Project Budget Discussion Total budget is $85,000 with matching funds coming from applicant equity. Total CDBG/HOME cost per unit is $15,000. Expected rents of $450 per SRO unit. If not awarded full funding, SL will use any funds awarded for rehabilitation for the most critical items within budget. Beneficiaries 0-30% AMI 100% 5 households Project Coordination with Successful Living collaborates with a wide range of community groups working on Existing Services & other housing issues and support services, such as Shelter House, Abbe Center for Services Available in the Community Mental Health, Department of Human Services, and others. Community Timeliness and Capacity to Previous CDBG/HOME projects have been delayed and have required amended Successfully Complete the agreements due to lower than expected beneficiaries. Staff has concerns about Proposed Project capacity while FY18 and FY19 projects are outstanding. Staff Concerns/Notes 1) Must comply with federal procurement standards (competitive bids) for the proposed work. 2) If 5 or more HOME -assisted units, must implement City's Affirmative Marketing Plan through the projects affirmative marketing plan. 3) Pro forma assumes an 8% vacancy loss - what is that based on? 4) Maintenance & Repairs appears higher than be expected 5) Operating expenses are higher at 9%but still within requirements 6) High debt/coverage ratio; would appear that Successful Living may qualify for HOME loan rather than grant. Could SL proceed with the rehab if they have to repay HOME funding or could they proceed using equity rather than city assistance? S:\DEV\CDBGHOME\FY20`Applications\FY20 Staff reports FINAL.xlsx General Information and Project Need Ci Select Language I Community Development Block Grant (CDBG) and/or HOME Investment Partnership (HOME) programs provide funding to aid in the development of viable urban communities and in the provision of safe and decent affordable housing. Applications are due Tuesday, January 18, 2019 at noon. This year, $625,000 are estimated to be available through this competitive process. Please reviewthe FY20 CDBG/HOME Application Guide for more information about eligible activities. Please submit one project proposal per application. Questions can be directed to kirk-lehmann@iowa-city.org or contact Neighborhood Services at 319-356-5230. Additional assistance, and hard copy applications, are available upon request Project Information ' . Project name * Village Road Rehabilitation Project Address* Street Address 3107 Village Rd Address Line 2 City Iowa City Fbstal / Zip mde 52240 Type of Project(?) © Rental Housing ❑ Owner Housing ❑ Public Facility ❑ Other Type of Activity(?) ❑ Acquisition ❑ New Construction © Rehabilitation ❑ Direct Assistance ❑ Other Applicants Applicant Name * Successful Living Supportive Housing Applicant Address* State / Province / fiagion Iowa CcunUy United States Street Address 2406 Towncrest Drive Address Line 2 City Iowa City Fbstal / Zip mde 52240 Contact Person, Title* Carla Phelps, Director of Grants & Dev. Phone Number* 3194711809 Email* cphelps@icsuccess.org DUNS Number(?) 055386861 State / Province / I Lgion IA Counfiy United States DUNS # Verification*(?) Go to http:#fedgov.dnb.com`webfamto lookup a create a DINS number. Provide a copy of the email you readve with your confirmed DINS number. DUNS letter.pdf 418.35KB CAGE Code (?) Obtain by registering on SAMgov 831330 SAM.gov Registration*(?) All subreapienls crust register on SAMgov before a legally binding agreement can be signed. Attach your SAMgov Entity F4egistraton Summery as evidence that this has been completed. SAM letter.pdf 441.33KB General Information Type of Lead Applicant* G Community Housing Development Organization O Private non-profit organization 6 Private for -profit, individual or partnership applicant O Public Organization W-9 Form*(?) (F4equest forTaxpayer ID# & Cerlificaton) W9 wtaxlD.pdf 767.79KB Organizational Status * (?) Go to https://sm.ima.gm/smmhtbusiness to lookup the organizafion applying fa funds. Provide a copy of the Business Entity Sumrery, screen. Iowa SOS letter.pdf 588.09KB Amount of Funds Requested* $ 75,000.00 Did you attend an Applicant Workshop?* 0 Yes 0 No Provide a few lines describing the proposed project* At our nonprofit agency, we house and work exclusively with the Chronically Mentally III (who are all impoverished) and provide supportive services. Our clients face profound challenges when they come to us and are courageous in their struggle to improve their own lives when they move in. One of our 5-bedroom houses where 5 of our clients live now requires extensive work, including a better kitchen, one updated bathroom and a new HVAC system, plus other upgrades, to make the home more comfortable and secure. Residents will be able to live in the house during the rehab, or may be able to stay at one of our other houses for the duration. We prefer to create as little disruption as possible to the lives of our residents, so as not to inhibit recovery due to stress while we knowthat the creation of a newer, more reliable and comfortable living space enhances recovery. Please specifythe one or two most applicable priority need(s) this application addresses, as shown in the 2016-2020 CITY STEPS Plan. Explain how this project will meet this/those need(s).* We provide affordable housing, which is a priority (01). We help battle homelessness (03C) and care for the Mentally III ((03P), which are also City Step priorities. Some of our client population have substance problems, which we help them to conquer (03P). Most of our clients are 100% disabled (03B). Our houses provide safety and security. Our counselors see these clients daily, drive them to appointments and help them meet other daily needs so that their lives will begin to improve and behaviors are modified and isolation defeated. Budget and Resources Type of Funding Requested* Financing tears will be based on project feasibility and the ability to repay. Terms approved by City Council may be different than what is requested. Grant Requested Grant Terms ........................................................ Principal Amount Affordability Period M $ 75,000.00 5 years Source of Funds Rease enter belov the types of funding and arrounls requested fa the proposed project, including if the funding is conTifted. If not a loan, leave loan tears dank Select the dank space for possible sources of income, a enter your own. Public Resources Funding Source and Type (?) Amount Interest rate Term(?) Committed Iowa City HOME/CDBG $ 75000.00 Total Public Funds $ 75,000.00 Private Resources Funding Source & Type M Amount Interest rate Term(?) Committed Applicant Equity $ 10,000.00 Yes Total Private Funds $ 10,000.00 Total Project Funding $ 85,000.00 Evidence of Funding Commitments*(?) Upto four pages of additional infornetion about the capacity of the organization may be included. Exarrples of rray include graphics supporting the previous questions, resumes of key staff, additional descriptions of organizational activities, a otherrelevant inforrretim. Audited Financials for Jan19CDBGHOME App.pdf 563.05KB Use of Fund Please enter below the uses of funding and amounts requested for the proposed project, including whether formal cost estimates were received. Select the blank space for possible use of funds, or enter your o wn." Type (?) Construction / Rehabilitation Total Use of Funds Amount $ 85,000.00 Amount Formal Cost Name of Entity Estimate providing cost estimate $ 85,000.00 Agency maintenance staff Scope of work(?) Attach any docurrentaton used fa cost esUrretes Rehab Village Rd Jan.2019.xlsx Other Considerations Number of households or persons served* Total cost per household or person served $ 17,000.00 What percentage of the proposed budget will be made up of private funds?* 11.76 Dollars Leveraged Per City Dollar Spent $ 0.13 11.28KB Describe any community partnerships or volunteers that will contribute to the project. Our agency partners with various community organizations to help the 5 residents of the Village Rd house and other tenants. The Abbe Center, NAMI, Prelude, Hills Bank, DHS, the East Central Region and various city departments. Our staff are on a first name basis with Social Security. UIHC and Mercy. Local churches help with our client holiday parties and food banks (incl Crisis Ctr) nearby for our clients. We take them to city hall to check on their Section 8 applications. All agencies work with one another to help all of our clients. We will use local contractor(s) to rehab this house, in accordance with HUD rules. Describe any identity of interest (101) relationships with the applicant and/or project owner, i.e. General Partner has a financial interest in the construction company, etc.* none Pro forma * (?) Find the profor" and profor" instruction at www.icgw.agVacticnplan Rehab Vill Rd Pro forma.xlsx 26.33KB Proforma Spread Sheet Rental Housing Projects Please enter information into'ooy-h ds only T wu are usm excel. Line Descri tion Symbols YR1 YR2 YR3 YR4 YR5 YR6 YR7 YRB YR9 YR70 Revenues +G. Rent +o. Income +T. eommbmlon $ 27,000OR $ - E $ 27,540 OD $ $ 1 Gross Rental Income $ 28,09080 $ 2865262 $ 29,22567 $ 29,810.18 $ 30,40639 $ 3101451 $ 3163480 $ 3226750 2 Otherincome $ E E 8 Is 8 E 8 3 Tenant Contributions $ E $ $ $ 8 $ 8 4 Girms Revenues =G. Income $ 27,000.00 $ 2],54000 $ 28,090.80 $ 2865262 $ 29,22567 $ 2981018 $ 30,40639 $ 3101451 $ 3163480 $ 32267.50 5 Vacancy Loss -vac $ 2,16000 $ 13A.o0 $ 140454 $ 143263 $ 146128 $ 149051 $ 1520.32 $ 1550.73 $ 158174 $ 161337 (5aevacade. doss loc-) 6 Effective Gross Income =EGI $ 24,84000 $ 26,163 OR $ 2668526 $ 27,21999 $ 27,76,138 $ 2631967 $ 28885.07 $ 29,4153.79 $ 30,05306 $ 30654.12 Operating Expenses $ The total items #7-1U shall be no E less than $2850/unit $ $ $ E 70000 3,00000 2,430 OR 2,000 OR - 100000 $ 72100 $ 3,09000 $ 2502.DO $ 2,06000 $ $ 103000 7 Insurance $ 74263 $ 76,191 $ 787.86 $ 81149 $ 83584 $ 8s091 $ 885.74 $ 91334 8 Maintenance Br Stmctural Repairs E 3,182.70 E 327818 E 337653 E 3,4T/.82 E 3582.16 E 368962 $ 380031 E 391432 9 Management Fees $ 25A.99 $ 265533 $ 2,]3499 $ 2817.04 $ 290155 $ 298859 $ 3,07825 $ 3,17060 10 Misc. Operating Expenses $ 2,1218D $ 2,18545 $ 225102 $ 231855 $ 2388.10 $ 2,45975 $ 253354 $ 2609.55 11 Property Tax Reserves(Opereting e,erve no less than E3r4un11) $ $ $ $ 8 8 8 8 12 $ 10s090 $ 1,559T 11E101010E11,285E1281 $ 1,99405 2 987 1077 Total OperatingExpenses OPxpens $ , , s ,097 9]66 ,55 E 10] , 11,9125813 E 14 Net Operating Income -NG1 $ 15,710DD $ 16,75910 $ 17,00024 $ 17,24339 $ 17,48849 $ 17,73550 $ 17,98437 $ 18,23504 $ 18,487-45 $ 18,74155 15 Debt Service First Mortgage $ 12,42o--DD $ $ 12,42D-DD $ $ 12,42D OD E $ 12,42D OD E $ 12,420-OD E $ 12.42O--DD E $ 12,42D-DD E $ 12,42D OO $ $ 12,42D-DD E $ 12,42D 00 E 16 Debt Service Subordinate Mortgage(s) 17 Total Debt Service -015 $ 12,420DD $ 12,420DD $ 12,420DD $ 1242000 $ 1242000 $ 12420.00 $ 12420.00 S 12420.00 S 12420.00 S 12420.00 18 dash Flow -GF $ 3,290 00 $ 4,33910 $ 4,58024 $ 4,82339 - #DIVlol $ 5,O68 49 $ - #DIVIOI $ 5 315 50 $ - *DIVlol 3 � 584 37 $ - #DIVAO 3 0' 815 04 $ - #DIVlol 3 5 O87 45 $ - #DIVAO 3 5 321 0'0' $ - #DlVlol 18(b) Equity Investment In Project 19 Cash -on- Cash ROI GF #DIV10l #DIVlol #DIVAO casn low ab aea 5v eounv mesmed nPoed oed cwe•ase aatio tarter vra;suueeno n«mm t.m dorme cumvlonm vedod. Eocoorann 1.misoa Equity lnwn DGR 126489533 1349363929 1368H%3 1388356497 140809094 #1427h7h.1448016794 146E199596 1488522728 1508981096 Line YR1 YR2 YR3 YR4 YR5 YR6 YR7 YR8 YR9 YR10 Determtmno Taxes 20 Cash Flow CF $ 3,29000 $ 4,33910 $ 4,58024 $ 4,82339 $ 5,06849 $ 5,315W $ 5,56437 $ 5,81504 $ 6,06745 $ 6,32155 21 Depreciation Expenses -DEER E $ E $ $ $ $ S S 22 Amortization of Fees AMORTL 8 $ E $ $ $ 23 24 Principal Payments Reserves +P +RESERVES $ 1,m000 $ 1,0WW $ 1,00000 $ 1,00000 $ 1,0WW $ 1,0WW $ 1,0WW $ 1,0WW $ 1,0WW $ 1,0W00 25 Eamings(Loss) Before Taxes =EBTx $ 4,MW $ 533910 $ 5,58024 $ 5,82339 $ 6,068.49 $ 6315W $ 656437 $ 681504 $ 10674 $ 7,32155 26 x Tax Rate (35% or 0%) xRATE m 0% 0% B% 0% 0% 0% 0% 0% 0% 27 Tax Incurred Saved -TAX or (Saviigs) S S 8 E E E E E $ $ Cash Flow After Tax 28 Cash Flow CF $ 3,29000 $ 4,33910 $ 4,58024 $ 4,82339 $ 5,068.49 $ 5315W $ 556437 $ 5815m $ 6,06745 $ 6,32155 29 Tax Incurred (Tax Saved) -TAX (+SAV) $ 8 $ E $ E $ 8 $ $ 30 Cash Flow After Tax =CFATx $ 3,29000 $ 4,33910 $ 4,58024 $ 4,82339 $ 5,068.49 $ 5315W $ 556437 $ 581504 $ 6,06745 $ 6,32155 Line Total Benefit Analysis 31 Cash Flow After Tax CFATx $ 3,29000 $ 4,33910 $ 4,58024 $ 4,82339 $ 5,068.49 $ 5315W $ 556437 $ 581504 $ 6,06745 $ 6,32155 32 Rehabilitation Tax Credit +RTe E $ E $ $ $ $ S $ 33 Low Income Housing Tax Credit +uuTe $ $ $ $ 8 $ $ S $ 34 Net Sale Proceeds +NSP E $ $ $ $ $ $ $ $ $ 35 Total Benefits After Tax(NCFAT) =NDFATx $ 3,29000 $ 4,33910 $ 4,58024 $ 4,82339 $ 5,06849 $ 531550 $ 556437 $ 5815m $ 6,067 $ 632155 36 Retum on Investment Roi #Diwo! #Diwo! #Diwo! #Diwo! #Diwo! #DiwO! *Diwo! #Diwo! #Diwo! #Diwo! YR11 YR12 YR13 YR14 YR15 YR16 YR17 YR18 YR19 YR20 Line Descri tion Revenues $ 32,91285 $ 33571.11 $ 3424253 $ 34,92138 $ 3562593 $ 3633845 $ 3],06521 $ 3],806.52 $ 3856265 $ 3933390 1 Gross Rental Income 8 $ $ $ $ $ $ $ $ $ 2 Other Income 8 $ $ $ $ $ $ $ $ $ 3 Tenant Contributions $ 32,91285 $ 3357111 $ 3424253 $ 34927W $ 3562593 $ 3633845 $ 3],06521 $ 3],80652 $ 3856265 $ 3933390 4 Gross Revenues $ 164564 $ 167856 $ 171213 $ 174637 $ 1j8130 $ 181692 $ 185326 $ 189633 $ 192813 $ 1966.70 5 Vacancy Loss (5%Vac Rae. crass Inc-) $ 3126721 $ 31 89255 $ 3253040 $ 33,18101 $ 33844.63 $ 3452152 $ 35211 % $ 3591619 $ 3663452 $ 37,36721 6 Effective Gross Income Operating Expenses $ 940.]4 $ 968% $ 99803 $ 1,02797 $ 1,0881 $ 1,0W5 $ 112329 $ 115699 $ ti9i 70 $ 1227 7 Insurance $ 4,031.75 $ 4,15270 $ 4,2A.28 $ 4,40560 $ 4,537H $ 4,67390 $ 4,81412 $ 4,95854 $ 5,107W $ 526052 8 Maintenance& Structural Repairs $ 3,26572 $ 336369 $ 3,46460 $ 356854 $ 367559 $ 3,78586 $ 3,89944 $ 4,01642 $ 4,13691 $ 4,26102 9 Management Fees $ 2,687 83 $ 2,]68.47 $ 285152 $ 293707 $ 3,02518 $ 3,11593 $ 320941 $ 3305.70 $ 3,40487 $ 350701 10 Misc. Operating Expenses 8 8 8 8 8 $ $ $ $ E 11 Property Taxes $ 134392 $ 138423 1 $ 142576 $ 146653 $ 151259 $ 155797 $ 1604]1 $ 1012. $ ij02.43 $ ij5 51 12 Reserves $ 12,26996 $ 1263806 $ 13,0172 $ 13,40771 $ 1380994 $ 14,22424 $ 14,6. 97 $ 15,09650 $ 1554321 $ 16,00951 13 Total Operating Expenses $ 18,99725 $ 19,2545D $ 19,51321 $ 19,7733D $ 2D,D3469 $ 2D,29728 $ 2D,56998 $ 20,82569 $ 21,D913D $ 21,357D 14 Net Operating Income $ 12,42D DD S $ 12,42D DD $ $ 12,42D DD $ $ 12,42D DD E $ 12,42D DD E $ 12,42D DD E $ 12,42D W E $ 12,42D DD E $ 12,42D DD E $ 12,420 DD E 15 Debt Service First Mortgage 16 Debt Service Subordinate Mortgage(s) $ 12,42000 $ 12,42000 $ 12,42000 $ 12,42000 $ 12,42D DD $ 12,420-00 $ 12,42000 $ 12,42000 $ 12,42000 $ 12,42000 17 Total Debt Service $ 6,57725 $ *DN(01 $ 68345D aDIV(m $ 7,09321 - aDN(01 $ 7,3533D $ - aDIV(m $ 7,61469 aDN(01 $ 7,87728 - aDIV(m $ 8,14098 L- - #DIV(m $ 8,40569 $ - #DIV(m $ 8,67130 $ - aDN101 $ 8,93770 $ - aDIV(m 18 dash Flow 18(b) Equity Investment In Project 19 Cash -on- Cash ROI cam F-a. cream Fna, ne%rrem moan 15295692] 1 550281463 1571111524 159205292 1 613WB719 1 6342415]5 1 655473716 1 6]6]86918 1 696172496 1 ]1%21281 Den cwe•aAe Rae6 YR11 YR12 YR13 YR14 YR15 YR16 YR17 YR18 YR19 YR20 Line Description Determininc Taxes $ 6,57725 $ 683450 $ 7,09321 $ 7135330 $ 7,61469 $ 7,8H 28 $ 8,14098 $ 8,40569 $ 867130 $ 893770 20 Cash Flow $ $ $ $ $ $ $ $ $ 8 21 Depreciation Expenses $ - $ $ $ $ $ - $ - $ 1,00000 $ $ $ 1,00000 8 $ 8 22 Amortization of Fees s $ 1,00000 $ 1,00090 $ 1,00090 23 Principal Payments $ 1,00000 $ 1,000W $ 1,000W $ 1,OWW $ 1,0WW 24 Reserves $ 7,57725 $ 7,83450 $ 8,09321 $ 835330 $ 861469 $ 887728 $ 9.14098 $ 9,40569 $ 967130 $ 9,93770 25 Earnings (Loss) Before Taxes 0% 0% 0% 0% 0% 6% 6% 0% 0% 0% 26 x Tax Rate (35% or 0%) $ $ 8 E E E E E E E 27 Tax Incurred Saved Cash Flow After Tax $ 657725 $ 6,83450 $ 7,09321 $ 7,35330 $ 7,61469 $ 7,8H 28 $ 8,14098 $ 8,40569 $ 867130 $ 8937.70 28 Cash Flow $ $ I $ $ $ $ E E E Is 29 Tax Incurred (Tax Saved) $ 657725 $ 6,83450 $ 7,09321 $ 7,35330 $ 7,61469 $ 7,8H 28 $ 8,14098 $ 8,40569 $ 867130 $ 893770 30 Cash Flow After Tax Line Total Benefit Analysis $ 6,57725 $ 6,834.50 $ 7,09321 $ 7,35330 $ 7,61469 $ 7,8H 28 $ 8,14098 $ 8,40569 $ 867130 $ 8937.70 31 Cash Flow After Tax $ $ $ $ $ $ $ $ $ E 32 Rehabilitation Tax Credit $ $ $ $ $ $ $ $ $ $ $ $ 33 Low Income Housing Tax Credit $ $ $ $ $ $ 8 8 34 Net Sale Proceeds $ 657725 $ 683450 $ 7,09321 $ 7,35330 $ 7,61469 $ 7,8H 28 $ 8,14098 $ 8,40569 $ 867130 $ e93770 35 Total Benefits After Tax(NCFAT) #MV101 #MV101 #MV101 #MV101 #MV101 #MV101 #MV101 #DimO! *DiwO! *DiwO! 36 Return on Investment List from Mark White CDBG/HOME Proposal Successful Living January 15, 2019 Estimates of agency maintenance supervisor after informally speaking to contractors. GRANT REQUEST: $75,000 Agency will self -fund $10,000 using either checking account or $60k Line of Credit. Imorovements/uogrades needed at 3107 Village Rd. Iowa Citv. IA 52240. 5-bedroom house Remodel upper bathroom $ 12,500 Replace carpeting through out $ 3,500 Replace interior doors $ 1,250 Replace exterior doors $ 1,000 Replace front door with sidelights $ 3,500 Replace bay window $ 5,500 Replace HVAC $ 7,500 Replace Hot water tank $ 1,100 Remodel Kitchen with new appliances $ 30,000 Replace locks with electronic locks $ 750 Stain fencing $ 500 Improve existing furniture, couches, chairs and dining room set, coffee table $ 2,500 Window upgrades $ 9,000 Reserve for contingencies $ 6,400 GRANDTOTAL $ 85,000 Feasibility and Community Impact Outline the proposed timetable and expected impact for the project. For the timetable, include when requested funding will be committed, project milestones such as rezoning or construction, and when funds will be spent. If applicant plans to apply for funds not committed, include the anticipated date for application and when funds will be awarded. For expected impact, break out beneficiaries by income group. If funded, both the schedule and income breakdown will be used for any project agreement. Project Benefit Narrative Describe project benefits and requirements Such as beneficiary eligibility requirerrents, targeted beneficiaries, etc. The kitchen and one bathroom are dated, need a lot of work. A new HVAC system will make the place more energy efficient and be more reliable in heating and cooling, making it more comfortable for residents. The people currently living in the house will be accommodated during rehab work so they won't have to move. Although, if we have a new house coming online, and a renter indicates a wish to move, we will also try to accommodate that.The whole house will be more comfortable, secure and attractive for the people who live there, and the rooms more sound proofed with the new doors and locks. We are aware some agencies are less meticulous, but our particular client population derives great benefit from a home that is well maintained. Rental Housing Expected Number of Units* Expected Rent* 5 $ 450.00 Time Table .......................................................................... Date Description of Activity 6/1/2019 Lookfor contractors, begin to solicit bids 7/1/2019 Communicate with city about contractors, bids, work plan 8/15/2019 Enter into agreement with contractor to start work immediately To promote the efficient use of public funds, describe how the project will continue to provide public benefits through and beyond the required compliance period. Describe how the project will provide public benefits below rates in the existing market Most of the funding will be capitalized as asset improvement, to be depreciated over the course of 20 or 30 years. For all of that time we will be renting to our client population, the Chronic Mentally III. In what manner or form will the project proceed if it is awarded less than full funding? If there are several components, how will they be prioritized? We will rehab what we can with the funds awarded. We may pursue funding elsewhere too. We will reviewour list to determine which line item is the most critical but within budget, and go from there. We will eventually have to do all the list, but it may take longer than we would like. Income Breakdown Please indicate the population to be served by the proposed program according to the linked income categories. If requesting money for a specific administrative expense (like a staff member's salary), indicate the population served by your entire agency. (Please Note: If funded, this information will be used as income targeting for your Agreement). Median Income Number of Persons 0 - 30% 5 31 - 50% 51 - 60% 61 - 80% Over 80% Total Persons/Households Percent LM I 100.00 Please note the basis for these estimates* We know their incomes. These are not estimates. Capacity and Applicant History Please list amount of CDBG and/or HOME funds received Wthin the lad four Qtyfsal years and the status of the pmjec[(s) undertalxn. CDBG and/or HOME funds received Fiscal Year Funds Received Budgeted Amount Date Project Amount Expended Completed July 1, 2017 to June 30, 2018 $ 87,000.00 $ 87,000.00 7/16/2018 July 1, 2017 to June 30, 2018 $ 50,000.00 $ 50,000.00 2/28/2019 July 1, 2018 to June 30, 2019 $ 59,999.00 $ 59,999.00 12/28/2018 July 1, 2018 to June 30, 2019 $ 59,999.00 $ 59,999.00 2/28/2019 July 1, 2018 to June 30, 2019 $ 59,999.00 $ 59,999.00 4/30/2019 July 1, 2018 to June 30, 2019 $ 14,003.00 $ 14,003.00 6/29/2019 Please describe your organization's structure, officers, and staff.* Organization chart uploaded. Please describe the education and experience of key staff who will implement the project (excluding volunteers, board members, and consultants). If consultants are utilized, identify what role theywill play in the project.* Roger Goedken, Executive Director, BA, BS, Psychology & Sociology, Successful Living 7 years, 20 years exp Patricia Meyer, Facilities Director, Successful Living 8 years & 30 years experience Steve Nachazel, Housing Intake Specialist, BA Psychology, 30 years experience Deb Watson, Quality Assurance, 30 years experience, 15 years at Successful Living Carla Phelps, Grant & Dec., BBA,Grad Dip Couns.&Psychotherapy, MA App.Psychotherapy, 30 years exp. Ashley Gillette, Finance Director, 20 years experience House leads & house staff, all with various educational backgrounds and many years experience Marc White, Maintenance Supervisor, BA, 30 years experience Please summarize your organization's portfolio, including how many units you own and/or manage, how many homes you have built/rehabilitated/sold, and what projects are underway.* We lease office space at 2406 Towncrest Drive, Iowa City. We sold off a 20-bedroom house on Dubuque Street 3 years ago because it was too large for us. We sold off a 9-bedroom house on Dodge St. in 2018 for the same reason. We still own a house on Church St which has 8 bedrooms, 5 of them occupied. We will sell it for the same reason. We will use the proceeds to buy a replacement house to move same tenants into. Our house on N Johnson is treated by the city as a house to be historically preserved. It is currently undergoing some challenging rehab work to shore it up and address other issues (but is fully occupied). We own 5-bedroom houses at 3107 Village Rd, Iowa City; 821 N. Johnson, Iowa City, 1257 Esther Ct., Iowa City, 1403 Hollywood Blvd, Iowa City, and closed on 2209 Russell Dr, Iowa City in Dec 2018 (we are adding a 5th bedroom and fencing). We have grant funds for down payments for 2 more houses this fiscal year and expect those houses to be bought and occupied by July 1, 2019. Evidence of Fiscal Capacity(?) Audit Summary AUDIT LETTER Mar2018.pdf Evidence of Organizational Capacity(?) 595.17KB Up to four pages of additional infana5on about the capacity of the organization may be included. Examples of possible evidence may be resumes of Icy staff, additional descriptions of organizational activities, a other relevant infonrefion. ORG Chart 1-14-19.docx 102.46KB Is the applicant (including partners, co -applicants, etc.) currently in compliance with all federal, state and local laws, rules and regulations, including any CDBG and/or HOME funded projects?* 6 Yes O No O Currently in litigation Please identify relevant market factors that verify the demand for the proposed project based on the City of Iowa City Housing Program Guidelines policy. The City may require a Market Analysis for large or complicated projects to support the need before entering an agreement. "This does not apply to tenant based rental assistance, hcmv mer rehabilitation, down payment assistance, a OiDO operatng expenses. We have owned the house for a few years, still carry a mortgage as indicated on the Pro Forma. It is already rented to 5 of our clients. JAMES Q. BUXTON, C.P.A. 1B1,1 MUSCATINE AVENUE IOWA CITY, IOWA 52240-6414 MEMBER OF (319) 354-7262 AMERICAN INSTITUTE OF CERTIFIED FAX (319) 336-3090 PUBLIC ACCOUNTANTS INDEPENDENT AUDITOR'S REPORT To the Board of Directors of Successful Living Supportive Housing Program MEMBER OF IOWA SOCIETY OF CERTIR PUBLIC ACCOUNTANTS I have audited the accompanying financial statements of Successful Living Supportive housing Program (a non-profit organization), which comprise the statements of financial position as of June 30, 2017 and 2016, and the related statements of activities, functional expenses, and cash flows for the years then ended, and the related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or 8rror. Auditor's Responsibility My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, I express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. I believe the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Opinion In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Successful Living Supportive Housing Program as of June 30, 2017 and 2016, and the changes in its net assets and its cash flows for the years then ended, in accordance with accounting principles generally accepted in the United States of America. IoYtM rad— C ? h a City, Iowa March 8, 2018 -I- SUCCESSFUL LIVING SUPPORTIVE HOUSING PROGRAM Iowa City, Iowa FINANCIAL STATEMENTS June 30, 2017 and 2016 TABLE OF CONTENTS INDEPENDENT AUDITOR'S REPORT ... FINANCIAL STATEMENTS Statements of Financial Position ..... Statements of Activities ................... Statements of Functional Expenses. Statements of Cash Flows ................ .................................................1 ....................................................................... 2 ....................................................................... 3 ................................................................... 4-5 ....................................................................... 6 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES....................................................... 7-9 NOTES TO FINANCIAL STATEMENTS.................................................................................. 10-13 MEMBER OF AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS JAMES B. BUXTON, C.P.A. 1811 MUSCATINE AVENUE IOWA CITY, IOWA 52240-6414 (319) 354-7262 FAX (319) 338-3090 INDEPENDENT AUDITOR'S REPORT To the Board of Directors of Successful Living Supportive Housing Program MEMBER OF IOWA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS I have audited the accompanying financial statements of Successful Living Supportive Housing Program (a non-profit organization), which comprise the statements of financial position as of June 30, 2017 and 2016, and the related statements of activities, functional expenses, and cash flows for the years then ended, and the related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fain presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility My responsibility is to express an opinion on these financial statements based on my audits. I conducted my audits in accordance with auditing standards generally accepted ii the United States of America. Those standards require that I plan and perform the audits to obtain reasonable assurance about whether the financial statements are fa-ee of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, I express no such opinion. An audit also includes evaluating the appropriateness of accorinting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. I believe the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Opinion In my opinion, the financial statements referred to above present fairly, in all material respects, the fmancial position of Successful Living Supportive Housing Program as of June 30, 2017 and 2016, and the changes in its net assets and its cash flows for the years then ended, in accordance with accounting principles generally accepted in the United States of America. IMn�— Ioa City, Iowa March 8, 2018 4- SUCCESSFUL LIVING SUPPORTIVE HOUSING PROGRAM Statements of Financial Position June 30, 2017 and 2016 2017 2016 Assets Current Assets Checking $110,433 $200,255 Cash -house account 13,132 61,935 Cash and cash equivalents 123,565 262,190 Accounts receivable 188,132 128,215 Deposits 6,231 6,231 Prepaid expenses 7,345 10,991 Total current assets 325,273 407,627 Property and Equipment Furniture and equipment 86,548 58,949 Buildings and improvements 1,133,362 900,366 Land 184,367 142,367 1,404,277 1,101,682 Less accumulated depreciation 286,361 247,451 1,117,916 854,231 Total assets $1,443,189 $1,261,858 Liabilities and Net Assets Current Liabilities Accounts and credit cards payable $29,184 $7,825 Current portion of long-term debt 126,966 11,311 Funds held for consumers 13,132 61,935 Deposits payable 435 100 Accrued expenses 125,699 78,914 Loan payable -bank -line of credit 74,627 0 Long -Term Debt Long-term debt, net of current portion 390,533 334,906 Total liabilities 760,576 494,991 Net assets Unrestricted 682,613 766,867 Total liabilities and net assets $1,443,189 $1,261,858 The accompanying summary of significant accounting policies and notes to financial statements are an integral part of these financial statements. -2- SUCCESSFUL LIVING SUPPORTIVE HOUSING PROGRAM Statements of Activities Years Ended June 30, 2017 and 2016 Support and Revenue Program service fees Rental income Grant income -mortgage principal forgiven Grant income -other Payee services Contributions Interest income Gain on sale of assets Other income Total support and revenue Expenses Program services Supportive Community Living Rental properties Fundraising General and administrative Total expenses Change in net assets Net assets, beginning of year Net assets, end of year 2017 2016 $1,511,552 $1,092,456 136,718 88,034 0 212,500 3,500 0 3,220 3,410 2,400 3,480 251 189 0 378,172 272 19 1,657,913 1,778,260 1,187,965 883,838 177,385 141,343 1,365,350 1,025,181 0 0 376,817 254,167 1,742,167 1,279,348 (84,254) 498,912 766,867 267,955 $682,613 $766,867 The accompanying summary of significant accounting policies and notes to financial statements are an integral part of these financial statements. -3- SUCCESSFUL LIVING SUPPORTIVE HOUSING PROGRAM Statement of Functional Expenses Year Ended June 30, 2017 Program Services Supported General Community Rental and Total Living Properties Administrative Expenses Salaries and wages $800,923 $89,406 $262,230 $1,152,559 Payroll taxes 70,847 7,400 20,275 98,522 Employee health and life insurance 39,340 4,392 11,660 55,392 Accounting fees 8,495 0 2,501 10,996 Advertising and promotion 0 0 5,134 5,134 Client needs 1,000 0 5,000 6,000 Communications 17,727 5,863 2,662 26,252 Depreciation 16,229 22,193 488 38,910 Insurance 27,732 5,005 7,870 40,607 Interest expense 7,716 7,789 1,943 17,448 Leased equipment 740 0 218 958 Legal and professional (83) 60 3,842 3,819 Licenses and permits 383 25 0 408 Mileage and auto 38,374 0 12,802 51,176 Office rent 63,772 0 18,780 82,552 Pension expense 3,633 0 4,666 8,299 Real estate taxes 4,192 3,442 0 7,634 Recreation 1,169 0 0 1,169 Repairs 25,700 12,379 4,930 43,009 Supplies 36,007 5,207 4,242 45,456 Tax penalties 0 0 1,046 1,046 Training 564 0 1,638 2,202 Travel and lodging 50 (875) 2,963 2,138 Utilities 20,823 13,988 1,312 36,123 Other expenses 2,632 1,111 615 4,358 Totals $1,187,965 $177,385 $376,817 $1,742,167 The accompanying summary of significant accounting policies and notes to financial statements are an integral part of these financial statements. -4- SUCCESSFUL LIVING SUPPORTIVE HOUSING PROGRAM Statement of Functional Expenses Year Ended June 30, 2016 Program Services Supported General Community Rental and Total Living Properties Administrative Expenses Salaries and wages $609,569 $23,925 $183,861 $817,355 Payroll taxes 52,854 2,122 14,279 69,255 Employee health and life insurance 36,754 1,443 10,116 48,313 Accounting fees 7,053 0 2,047 9,100 Advertising and promotion 11 0 3,503 3,514 Client needs 0 0 0 0 Communications 11,323 7,438 2,113 20,874 Depreciation 6,448 28,153 394 34,995 Insurance 21,834 3,715 6,452 32,001 Interest expense 796 16,903 0 17,699 Leased equipment 901 0 261 1,162 Legal and professional 220 212 3,455 3,887 Licenses and permits 756 1,871 258 2,885 Mileage and auto 37,699 0 1,040 38,739 Office rent 58,421 0 16,951 75,372 Pension expense 5,951 233 1,629 7,813 Real estate taxes 841 1,219 0 2,059 Recreation 631 0 0 631 Repairs 848 19,925 2,571 23,344 Supplies 22,306 5,711 2,511 30,528 Tax penalties 0 0 843 843 Training 112 0 466 578 Travel and lodging 0 5,860 0 5,860 Utilities 7,022 22,689 1,142 30,853 Other expenses 1,488 (75) 275 1,688 Totals $883,838 $141,343 $254,167 $1,279,348 The accompanying summary of significant accounting policies and notes to financial statements are an integral part of these financial statements. -5- SUCCESSFUL LIVING SUPPORTIVE HOUSING PROGRAM Statements of Cash Flows Years Ended Jume 30, 2017 and 2016 2017 2016 Cash flows from operating activities Change in net assets ($84,254) $498,912 Adjustments to reconcile change in net assets to net cash (used) in operating activities: Depreciation 38,910 34,995 Decrease (increase) in operating assets Accounts receivable (59,917) 8,236 Prepaid expenses 3,646 (5,035) Increase (decrease) in operating liabilities Accounts and credit cards payable 21,359 (3,075) Funds held for consumers (48,803) 34,579 Deposits payable 335 100 Accrued expenses 46,785 19,150 Net cash provided by operating activities (81,939) 587,862 Cash flows used by investing activities Purchase of furniture and equipment (27,599) 0 Purchase of land, buildings, and improvements (274,996) (25,518) Net cash (used) by investing activities (302,595) (25,518) Cash flows from financing activities Note proceeds -Hills Bank & Trust Co. 341,763 369,204 Payments on notes payable -Hills Batik & Trust Co. (95,854) (521,201) Payments on notes payable -City of Iowa City 0 (226,998) Net cash (used) by financing activities 245,909 (378,995) Net change in cash and cash equivalents (138,625) 183,349 Beginning cash and cash equivalents 262,190 78,841 Ending cash and cash equivalents $123,565 $262,190 Supplemental Disclosures of Cash Flow Information Cash payments for interest $16,644 $17,843 The accompanying summary of significant accounting policies and notes to financial statements are an integral part of these financial statements. 01 SUCCESSFUL LIVING SUPPORTIVE HOUSING PROGRAM Summary of Significant Accounting Policies June 30, 2017 and 2016 Nature of activities. Successful Living Supportive Housing Program is a not for profit organization incorporated in 1998 for the purpose of assisting homeless and/or very low income persons to find affordable housing along with on -site counseling support services to empower residents to live independently. Support services include employment counseling, assistance with handling daily living skills and personal finances, and services for persons with mental illnesses. Successful Living Supportive Housing Program serves persons, 18 years or older, in Johnson County, Iowa, and the surrounding area. The Corporation's fiscal year ends on June 30. Services are offered on a one-on-one and group basis. Services include teaching consumers skills in areas such as finance, housing, communication, socialization, self -care, nutrition, conflict resolution, and interpersonal relationship development. Payee services are available to consumers. Consumers enter into a written contract with Successful Living Supportive Housing Program that spells out both short and long -tern goals that the consumer would like to achieve. Persons receiving services must have a minimum of 30 days free of any substance abuse. The Organization also offers classes to consinuers through a Day-Hab program. Successful Living Supportive Housing Program owns five houses in Iowa City, which can be rented by the room for below -market rent by consumers served by the Organization. Estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Accordingly, actual results could differ from those estimates. Certain significant estimates. The accrual for accounts receivable and the liability for estimated third party settlements involve certain significant estimates made by management. These estimates are reviewed by management routinely, and it is reasonably possible that circumstances that exist may change in the near -terra future and that the effect could be material to the financial statements. Revenue recognition Revenue from services is recognized as the services are performed, primarily on the basis of hours of service provided, at estimated net realizable amounts. Contract and grant revenue is recognized on a cost reimbursement basis as expenditures are incurred. Medicaid services are subject to animal audits of rates that are based upon actual costs and are subject to retroactive fee adjustments as determined by the Managed Care Organizations. Such adjustments are estimated and recorded when it is probable that an adjustment will be required. Fee adjustments are reported as a reduction or increase in revenue, if detenmined in the same period as the original billing is made, and adjustments determined in a subsequent year are included as revenue on the statement of activities in the year of the adjustment determination. Income taxes. The Organization is a non-profit organization and is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code of 1954 and classified by the Internal Revenue Service as other than a private foundation. There was no unrelated business income for the years ended June 30, 2017 and 2016. -7- SUCCESSFUL LIVING SUPPORTIVE HOUSING PROGRAM Summary of Significant Accounting Policies June 30, 2017 and 2016 Functional allocation of expenses. Directly identifiable expenses are charged to programs and supporting services. Expenses related to more than one function are charged to prograins and supporting services on the basis of periodic time and expense studies. General and administrative expenses include those expenses that are not directly identifiable with any other specific function but provide for the overall support and direction of the Organization. Basis of presentation. Financial statement presentation follows the recommendations of the Financial Accounting Standards Board in its Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements of Not -for -Profit Organizations. Under SFAS No. 117, the Organization is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. As of June 30, 2017 and 2016 and for the years then ended, the Organization had no temporarily or permanently restricted net assets. Restricted and unrestricted revenue. The Organization follows SFAS No. 116, Accounting for Contributions Received and Contributions Made. This standard requires that contributions received be recorded as unrestricted, temporarily restricted, or permanently restricted support depending on the existence or nature of any donor restrictions. Contributions are recognized when the donor makes a promise to give to the Organization that is, in substance, unconditional. Contributions that are restricted by the donor are reported as increases in unrestricted net assets if the restrictions expire (when a stipulated time restriction ends or purpose restriction is accomplished) in the fiscal year in which the revenue is recognized. All other donor -restricted contributions are reported as increases in temporarily or pemnanently restricted net assets, depending on the nature of the restrictions. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the Statements of Activities as net assets released from restrictions. Cash and cash equivalents For purposes of the Statements of Cash Flows, the Organization considers all highly liquid investments available for current use with an initial maturity of three months or less when purchased to be cash equivalents. Accounts receivable. Amounts due from the State of Iowa and various counties arise from tine billing of program services after services have been performed and billing completed. Management has elected to record bad debts using the direct write-off method. Generally accepted accounting principles require that the allowance method be used to reflect bad debts. However, the effect of the use of the direct write-off method is not materially different from the results that would have been obtained had the allowance method been followed. Property and equipment. These assets are stated at cost. Depreciation is provided using the straight-line method over the estimated useful lives of the assets ranging from 5 to 39 years. Additions or betterments of $250 or more arc capitalized, while maintenance and repairs that do not improve or extend the useful lives of the respective assets are charged to expense as incurred. Upon sale or retirement of fixed assets, the costs and related accumulated depreciation are eliminated from the accounts. Any resulting gains or losses are included in the determination of net income. Ef SUCCESSFUL LIVING SUPPORTIVE HOUSING PROGRAM Summary of Significant Accounting Policies June 30, 2017 and 2016 Donations of properly and equipment are recorded as contributions at their estimated fair valise. Such donations are reported as unrestricted contributions urdess the donor has restricted the donated asset to a specific purpose. Assets donated with explicit restrictions regarding their use and contributions of cash that must be used to acquire property and equipment are reported as restricted contributions. Absent donor stipulations regarding how long those donated assets must be maintained, the Organization reports expirations of donor restrictions when the donated or acquired assets are placed in service as instructed by the donor. The Organization reclassifies temporarily restricted net assets at that time. Reclassifications. Certain accounts in the Statement of Functional Expenses for the year ended June 30, 2016 have been reclassified for comparative purposes to be consistent with the presentation in the Statement of Functional Expenses for the year ended June 30, 2017. 6I SUCCESSFUL LIVING SUPPORTIVE HOUSING PROGRAM Notes to Financial Statements June 30, 2017 and 2016 Note 1. Lone -term debt. Long-term debt at June 30, 2017 and 2016 consists of the following: 2017 2016 Notes payable to Hills Bank & Trust Company of Hills, Iowa Note payable, dated May 15, 2008 in the amount of $199,000, due May 15, 2033, interest rate 3.76%, monthly payments $1,057.81. Secured by a building and land with a book value at June 30, 2017 of $219,045. $151,375 $158,132 Note payable, dated January 24, 2004 in the amount of $115,000, due February 5, 2029, interest rate 5.00%, monthly payments $685.44. Secured by a building and land with a book value at June 30, 2017 of $224,362. 72,493 77,085 Note payable, dated November 9, 2016 in the amount of $185,000, due November 15, 2021, interest rate 4.56%, monthly payments $1,035.07. Secured by a building and land with a book value at June 30, 2017 of $202,624. 182,631 -0- Total notes payable to I -Tills Bank- & Trust Co. $406.499 $235,217 Notes payable to the City of Iowa City, Iowa Note payable, dated September 2, 2011 in the amount of $52,000, due July 1, 2017, interest rate 0.00%, forgivable mortgage, entire balance forgiven when due if property is used for housing for homeless and low-income in- dividuals. Loan proceeds used for property rehabilitation costs. Secured by a building and land with a June 30, 2017 book value of $224,362. Notes payable to the Housing Trust Fund of Johnson County Note payable, dated November 21, 2011 in the amount of $59,000, due July 1, 2017, interest rate 0.00%, forgivable mortgage, entire balance forgiven when due if property is used for housing for homeless and low-income in- dividuals. Loan proceeds used for property rehabilitation costs. Secured by buildings and land with a June 30, 2017 book value of $443,407. Total notes payable Less current portion of long-term debt Total notes payable, net current portion -10- 52.000 52,000 $ 59,000 $ 59,000 $517,499 $346,217 126,966 11,311 390 533 SU1906 SUCCESSFUL LIVING SUPPORTIVE HOUSING PROGRAM Notes to Financial Statements June 30, 2017 and 2016 Note 1 (cont.) Estimated annual maturities of the long-term debt are as follows: Year ending June 30, 2018 Year ending June 30, 2019 Year ending June 30, 2020 Year ending June 30, 2021 Year ending June 30, 2022 Years ending after June 30, 2022 Total $126,966 16,672 17,363 18,170 178,726 159,602 517.999 Interest expense on notes payable to Hills Bank & Trust Company amounted to $15,541 and $17,699 for the years ended June 30, 2017 and 2016, respectively. Note 2. Line of Credit. During the year ended June 30, 2017, the Organization maintained a $90,000 line of credit with Hills Bank and Trust Company. The line of credit is collateralized by substantially all assets of the Organization. As of June 30, 2017 and 2016, the Organization owed $74,627 and $-0-, respectively, on the line of credit. Interest expense on the line of credit amounted to $1,907 and $-0-, respectively, for the years ended June 30, 2017 and 2016, which is not included in interest expense discussed in Note 1. Note 3. Program service fees. The Organization receives program fees in various forms. Consumers are assessed by counselors and qualify for various supported community living programs and/or Medicaid, depending upon their individual needs. The Organization receives county funds for supported community living programs, Medicaid funds (Title XDQ, rental assistance programs, and rental amounts paid directly by or on behalf of consumers. Note 4. Business and credit concentrations. The Organization's main revenue source is program service fees. During the year ended June 30, 2017, the Organization received $1,511,552 from area counties and Medicaid (Title XIX) funds, which is approximately 91.7% of the Organization's program service revenue. The amount due the Organization as of June 30, 2017 included $187,262 in county and Medicaid funds. The Organization currently assists consumers in Iowa City, Iowa and the surrounding area. Note 5. Compensated absences. In addition to salaries and wages accrued in the normal course of business, the Organization has accrued $32,721 and $23,798 for the estimated cost of vacation pay earned, but not taken, by its employees as of June 30, 2017 and 2016, respectively. Note 6. Description of consumer leasing arrangements The Organization acts as lessor of rental units at their buildings located on Church Street, Dubuque Street, Dodge Street, Village Road, Esther Court, and Jolmson Street in Iowa City, Iowa. Rentals are restricted to low-income persons, and the rents are required to be below -market rates. Leases are month -to -month and can be -11- SUCCESSFUL LIVING SUPPORTIVE HOUSING PROGRAM Notes to Financial Statements Jrme 30, 2017 and 2016 Note 6 (cont.) cancelled by lessor or lessee upon 30 days written notice. The Organization realized $136,718 and $88,034 in gross rental income during the years ended June 30, 2017 and 2016, respectively. The rental urnits have a very low vacancy rate but future minimum rents are not guaranteed. Note 7. Lease commitments and Equipment Rental Expense. Effective July 1, 2014, the Organization began leasing office space and signed a lease with a three-year term ending on June 30, 2017. Under the terms of the lease the initial montlily rental payments are $6,231, with annual inflation increases based on the U.S. Bureau of Labor Consumer Price Index. The lease also required payment of a $6,231 security deposit. The Organization began leasing additional office space, effective June 3, 2016, close to its main office under a lease agreement that covered a 13 month period ending June 30, 2017. This additional lease required monthly lease payments of $600, as well as a $600 security deposit, which was unpaid as of June 30, 2017. The Organization combined and extended both leases, effective July 1, 2017, with a three-year term ending on June 30, 2020. Under the terms of the lease the initial monthly rental payments are $7,664, with annual inflation increases based on the U.S. Bureau of Labor Consumer Price Index. The lease also requires payment of a $7,664 security deposit. Under the terms of this lease, the Landlord has agreed to reimburse the Organization for a maximum of $15,000 in leasehold improvement costs. The Organization is also responsible for the payment of increases in real estate taxes on the property under the terms of the leases. The following is a schedule by year of future minimum payments under the leases in effect at June 30, 2017: Year ending June 30, 2018 $ 91,968 Year ending June 30, 2019 91,968 Year ending June 30, 2020 91,968 Total $275.904 Rent expense included in the financial statements for the years ending June 30, 2017 and 2016 came to $82,552 and $75,372, respectively, under the above lease agreements. Note S. Custodial accounts. The Organization maintains custodial accounts for consumers to assist them in managing their finances. The asset and liability as of June 30, 2017 and 2016 are shown on the Statements of Financial Position as Cash -house account and Funds held for consumers, respectively. Note 9. Retirement plan. The Organization established a retirement savings plan on January 1, 2005 for employees who reach eligibility after one year of employment. Employee contributions to the -12- SUCCESSFUL LIVING SUPPORTIVE HOUSING PROGRAM Notes to Financial Statements June 30, 2017 and 2016 Note 9 (cont.) plan are discretionary, and the Organization will match employee contributions up to 3% of eligible salaries. Contributions accrued and paid by the Organization to this plan for the years ended June 30, 2017 and 2016 were $8,299 and $7,813, respectively. Note 10. Related party transactions. During the years ended June 30, 2017 and 2016, the Organization sold and purchased properties as a part of their rental housing program, with the assistance of a board member, representing the Organization as their realtor. The board member/realtor shared in commissions of $32,000 (4.00°/u) and $33,500 (5.63%), respectively, paid on the $800,000 sale price and $595,000 total purchase prices. The $32,000 sale commission is included in the $378,172 gain on the sale of assets in the Statement of Activities for the year ended June 30, 2016. The $33,500 purchase commissions are included in the $595,000 acquisition cost of the properties, included in the Land, and Buildings and improvements accounts on the Statement of Financial Position as of June 30, 2017 and 2016. Note 11. Contingency -funding sources Major funding sources require the Organization to file cost reports that are used to detemine future provider hourly reimbursement rates. Also, the funding agencies may determine that the Organization needs to reimburse the funding agencies if it is determined that the Organization has received cost reimbursements during the fiscal year in excess of the amounts calculated in the cost reports. Note 12. Subsequent events. Subsequent events were evaluated through March 8, 2018, wlich is the date of the financial statements. As of March 8, 2018, events subsequent to fiscal year ended June 30, 2017 did not include any changes in operations, entity form, or urmecessary borrowing. -13- Suc essFL� �iving Finance Director (Ashley Gillette) Quality Assurance and Human Resources Director (Deb Watson) Quality Assurance Coordinator (Rita Silins) Front Office Associate (Mercedes Galvan) Office Support/Records Staff (Maureen Stokes) 2019 SUCCESSFUL LIVING ORGANIZATIONAL CHART Executive Director (RogerGoedken) Director, Grants & Dev. (Carla Phelps) IT Manager (Amanda Babcock) Outreach Program Housing Director Day Habilitation Director Director (Pat Meyer) (Chioma Onuigbo) (Susan Nicol) Medication Outreach Hab Home Leads Day Hab Counselors Administrator Coordinators (B.Bickford, K. Sanders, A. (Ashley Miller) (Marielle Cramer, Kofron) Molly Mosely) Intake Coordinator Outreach (Steve Nachazel) Hab Home Counselors Counselors Transitional House Lead (Jesse McCullum) Maintenance/Custodial (Stefforn Perkins) Roger Goedken I SUCCESSFUL LIVING Project . Fellowship .. Operating Expenses Project Address 322 East 2nd Street, Iowa City Activity Type Community Development Housing Organization Operations CITY STEPS Priority Preserve existing affordable rental and owner housing units CITY STEPS Goal Improve access to affordable renter housing Amount Requested $26,500 Project Description Provide operational support forTHF, a certified Community Housing Development Organization (CHDO) which provides quality affordable housing to people with limited incomes. This request specifically supplements the salary of THF's CFO. Repayment Terms Grant Affordability Period N/A Property Taxes N/A %CDBG/HOME Funded 2% Project Budget Discussion The City can provide an operating grant of up to 5% of its HOME allocation to assist with the management of affordable homes. Current City estimates place that at $23,000, though it depends on federal appropriations. CHDO operating funds do not count as an eligible cost for CHDO set -aside funds. If less funding is awarded, THE will continue to operate but may need to draw on a private line of credit for administrative expenses resulting in increased debt. Beneficiaries Low income tenants are indirect beneficiaries. The Housing Fellowship owns and manages approximately 177 affordable rental homes in the Iowa City metro area. Project Coordination with THE partners with the United Way of Johnson and Washington Counties, Great Existing Services & other Western Bank, local congregations, private donors, and its 11-member volunteer Board Services Available in the of Directors. Community Timeliness and Capacity to Applicant is in good standing and has successfully completed previous CDBG/HOME Successfully Complete the projects. Staff has no current concerns about capacity to successfully administer this Proposed Project project. Staff Concerns/Notes 1) Must be awarded CHDO set -aside funds for acquisition, rehabilitation, or construction within 24 months of being awarded CHDO operating funds. S:\DEV\CDBGHOME\FY20`Applications\FY20 Staff reports FINAL.xlsx General Information and Project Need Community Development Block Grant (CDBG) and/or HOME Investment Partnership (HOME) programs provide funding to aid in the development of viable urban communities and in the provision of safe and decent affordable housing. Applications are due Tuesday, January 18, 2019 at noon. This year, $625,000 are estimated to be available through this competitive process. Please reviewthe FY20 CDBG/HOME Application Guide for more information about eligible activities. Please submit one project proposal per application. Questions can be directed to kirk-lehmann@iowa-city.org or contact Neighborhood Services at 319-356-5230. Additional assistance, and hard copy applications, are available upon request Project Information - Project name * CHDO Operational Funds Project Address* Street Address 322 E. 2nd Street Address Line 2 City Iowa City Fbstal / Zip mde 52240 Type of Project(?) ❑ Rental Housing ❑ Owner Housing ❑ Public Facility © Other CHDO Operations Grant Type of Activity(?) ❑ Acquisition ❑ New Construction ❑ Rehabilitation ❑ Direct Assistance © Other CHDO Operations Grant Applicants Applicant Name * The Housing Fellowship Applicant Address* State / Province / fiagion IA Ccunty US ■ ■ Street Address 322 E. 2nd Street Address Line 2 City Iowa City Fbstal / Zip Cede 52240 Contact Person, Title* Maryann Dennis Phone Number* 3193589212 Email* mdennis@housingfellowship.com DUNS Number(?) 964658236 State / I?ovince / I Lgion IA County US DUNS # Verification*(?) Go to htp:#fedgov.dnb.com`webfamto lookup a create a DINS number. I?ovide a copy of the email you readve with your confirmed DINS number. DUNS # Cage Code Verify THE 01-2019.pdf 64.7KB CAGE Code (?) Obtain by registering on SAMgov 6SNC3 SAM.gov Registration*(?) All subreapienls crust register on SAMgov before a legally binding agreement can be signed. Attach your SAMgov E tity F4egistraton Sum-ory as evidence that this has been completed. DUNS # Cage Code Verify THE 01-2019.pdf 64.7KB General Information Type of Lead Applicant* G Community Housing Development Organization O Private non-profit organization 6 Private for -profit, individual or partnership applicant O Public Organization W-9 Form*(?) (F4equest forTaxpayer ID# & Cerlificaton) W-9 THE 01-2019.pdf 72.55 KB Organizational Status * (?) Go to https://sm.ima.gm/smmhtbusiness to lookup the organizafion applying fa funds. Rovide a copy of the Business E tity Summary screen. Secy of State THE 01-2019.pdf 20.12KB Amount of Funds Requested* $ 26,500.00 Did you attend an Applicant Workshop?* 0 Yes 0 No Provide a few lines describing the proposed project* The Housing Fellowship (THF) is requesting a CHDO operating grant in the amount of $25,000 or 5% of the available City HOME Allocation. HOME regulations allowa participating jurisdiction to grant 5% of their HOME allocation to certified Community Housing Development Organizations for operational expenses; specifically to supplement the salary of THF's CFO. The mission of THE is to provide quality homes that are affordable to people with limited incomes. THE is the only non-profit providing permanent affordable rental housing in Johnson County Please specifythe one or two most applicable priority need(s) this application addresses, as shown in the 2016-2020 CITY STEPS Plan. Explain how this project will meet this/those need(s).* Preserving Existing Affordable Rental and Homeowner Housing Units is a high priority in the STEPS Plan. A CHDO operating grant will help to preserve permanent affordable rental housing by reducing the possibility of the need to sell THE owned properties to cover operational expenses. Budget and Resources Type of Funding Requested* Financing tears will be based on project feasibility and the ability to repay. Terms approved by City Council may be different than what is requested. Grant Requested Grant Terms ................ Principal Amount Affordability Period M $ 26,500.00 Source of Funds Rease enter below the types of funding and arrounls requested fa the proposed project, including if the funding is conTifted. If not a loan, leave loan tears blank Select the blank space for possible sources of income, a enter your own. Public Resources Funding Source and Type (?) Amount Interest rate Term(?) Committed Iowa City HOME/CDBG $ 26500.00 n/a n/a No Total Public Funds $ 26,500.00 For uncommitted funds, please indicate when the applicant will applyfor funds Private Resources Funding Source & Type (?) Amount Interest rate Term(?) Applicant Equity $ 1,131,857.00 n/a n/a United Way $ 50,000.00 n/a n/a Total Private Funds $ 1,181,857.00 Total Project Funding $ 1,208,357.00 Use of Fund Committed No No Please enter below the uses of funding and amounts requested for the proposed project, including whether formal cost estimates were received. Select the blank space for possible use of funds, or enter your o wn." Type M Developer Fee / Overhead Total Use of Funds Amount $ 26,500.00 Amount Formal Cost Name of Entity Estimate providing cost estimate $ 26,500.00 Yes THE Board Scope of work M Attach any docurrentaton used fa cost esUrretes Other Considerations Number of households or persons served* 724 Total cost per household or person served $ 1,669.00 What percentage of the proposed budget will be made up of private funds?* 97.81 Dollars Leveraged Per City Dollar Spent $ 44.60 Describe any community partnerships or volunteers that will contribute to the project. United Way of Johnson and Washington Counties; provides operational grant Great Western Bank; provides private financing for housing development and an operating line of credit Local Congregations/private donors; provide contributions Volunteers: 11 member Board of Directors 3 member Audit Committee 4 member Recruitment and Orientation Committee 7 member Finance Committee 5 member Succession Committee 6 member Housing Advisory Committee Describe any identityof interest (101) relationships with the applicant and/or project owner, i.e. General Partner has a financial interest in the construction company, etc.* IWA Feasibility and Community Impact Outline the proposed timetable and expected impact for the project. For the timetable, include when requested funding will be committed, project milestones such as rezoning or construction, and when funds will be spent. If applicant plans to apply for funds not committed, include the anticipated date for application and when funds will be awarded. For expected impact, break out beneficiaries by income group. If funded, both the schedule and income breakdown will be used for any project agreement. Project Benefit Narrative Describe project benefits and requirements Such as beneficiary eligibility requirerrents, targeted beneficiaries, etc. In 2018 THF provided safe, decent, permanent affordable rental homes to 724 persons including 370 children. The families all meet the income restrictions and most are very -low income. Stable affordable housing helps keep adults in jobs and children in school. Stable affordable housing increases a family's stability. Stable households increase neighborhood stability and overall community stability. Time Table Date Description of Activity 7/8/2019 Funding agreement signed 10/31/2019 First draw request (half of grant) with source documentation 4/3/2020 Second draw request (half of grant) with source documentation 11/27/2020 City monitoring of grant To promote the efficient use of public funds, describe how the project will continue to provide public benefits through and beyond the required compliance period. Describe how the project will provide public benefits below rates in the existing market The policy of THF, as a CHDO, is to maintain rental homes as affordable for the life of the properties. THF's long term objective is; as debt is retired rents will be reduced to cover operating, repair and replacement costs. Rents at reduced levels lessen a household's need for rental assistance. This then allows more households to access affordable housing (increasing the availability of housing choice vouchers) In what manner or form will the project proceed if it is awarded less than full funding? If there are several components, how will they be prioritized? If less funding is awarded, THF will continue to operate. However it will be necessary to draw on a private line of credit for administrative expenses resulting in increased debt. Income Breakdown OEM_ MON&M- Please indicate the population to be served by the proposed program according to the linked income categories. If requesting money for a specific administrative expense (like a staff member's salary), indicate the population served by your entire agency. (Please Note: If funded, this information will be used as income targeting for your Agreement). Median Income Number of Persons 0 - 30% 31 - 50% 51 - 60% 61 - 80% 724 Median Income Number of Persons Over 80% Total Persons/Households 724 Percent LMI 100.00 Please note the basis for these estimates* Number of affordable rental homes owned and managed by THE Capacity and Applicant History Please list amount of CDBG and/or HOME funds received Wthin the last four Qtyfsal years and the status of the pmject(s) undertalxn. CDBG and/or HOME funds received Fiscal Year Funds Received Budgeted Amount Date Project Amount Expended Completed July 1, 2015 to June 30, 2016 $ 316,000.00 $ 316,000.00 6/29/2018 July 1, 2016 to June 30, 2017 $ 74,000.00 $ 68,998.00 July 1, 2017 to June 30, 2018 $ 204,000.00 $ 197,998.00 July 1, 2018 to June 30, 2019 $ 111,034.00 $ 0.00 Please describe your organization's structure, officers, and staff.* THE has maintained CHDO certification by the City of Iowa City since 1996. The 11 member Board of Trustees serves as the policy making body. Trustees represent key areas of expertise pertinent to the business of the Corporation; law, banking, developer, and members representing the low- income community (including two tenants). Officers include President, Vice -President, Secretary/Treasurer. Trustees and key community members make up the Board Committees: Executive Audit Committee Finance Committee Housing Advisory Committee Recruitment and Orientation Committee Succession Committee The Housing Fellowship has 7.0 FTE; Executive Director, CFO, Compliance Specialist, Project Manager, Office Manager, 2.0 FTE Maintenance Employees. Very little staff turnover has occurred over the last five years. THE contracts with The Maintenance Company to complete after hours and weekend emergencies and partners utilizes several local businesses (electricians, plumbers, HVAC). Please describe the education and experience of key staff who will implement the project (excluding volunteers, board members, and consultants). If consultants are utilized, identify what role theywill play in the project.* Maryann Dennis has been the Executive Director of the Housing Fellowship since January 1993. She has extensive experience in working with low-income families and the administration of federal and private funding sources. She currently oversees all operations in addition to The Housing Fellowship. Ms. Dennis is a certified Housing Development Finance Professional through the National Development Council. She holds a Master's Degree in Social Work Administration and Social Development from the University of Iowa. Ross Resetich, CFO joined THE in February, 2018. Ross is a CPA and has an MBA from St. Ambrose. He is responsible to oversee all fiscal duties according to the Financial Management Policies and Procedures; including budgeting and reporting for THE and related entities, bank reconciliations, audits and oversees AP and AR and is responsible to provide all records/information for five separate independent audits. Tashundra Gathright, a University of Iowa Graduate in Social Workjoined THE as Compliance Specialist in 2008. Ms. Gathright is the only certified tax credit compliance specialist in Johnson County. She completes all income qualifications for applicants and tenants and prepares all reports for funders. Tammy Spies, Project Manager has been employed at THE since 2004. She has an A.A. degree in marketing from Ellsworth Community College. Ms. Spies oversees all leases, rehab and the maintenance department. Please summarize your organization's portfolio, including how many units you own and/or manage, how many homes you have built/rehabilitated/sold, and what projects are underway.* Rental units owned and managed = 107 LIHTC rental units managed = 70 Rental Constructed Managed by THE = 93; Constructed for Iowa City owned rental = 10 Owner -occupied constructed = 26 Rental units rehabbed = 67 (includes a 16 unit complex destroyed in the 2008 flood) Pipeline = Rehab of 6 units. Construction of 33 LIHTC units, 29 affordable and 4 market at 628 S. Dubuque St. Evidence of Fiscal Capacity(?) Audit Surnrery Audit Summary THE 01-2019.pdf 98.68 KB Evidence of Organizational Capacity(?) Upto four pages of additional informalion about the capacity of the organization nay be included. Examples of possible evidence nay be resumes of lay staff, additional descriptions of organizational activities, a other relevant infonrefion. Capacity description THE 01-2019.docx 133.84KB Is the applicant (including partners, co -applicants, etc.) currently in compliance with all federal, state and local laws, rules and regulations, including any CDBG and/or HOME funded projects?* O Yes 6 No O Currently in litigation Required Communications Generally accepted auditing standards (AU-C 260, The Auditor's Communication With Those Charged With Governance) require the auditor to promote effective two-way communication between the auditor and those charged with governance. Consistent with this requirement, the following summarizes our responsibilities regarding the consolidated financial statement audit as well as observations arising from our audit that are significant and relevant to your responsibility to oversee the financial reporting process. Area Our Responsibilities With Regard to the Financial Statement Audit Overview of the Planned Scope and Timing of the Financial Statement Audit Comments Our responsibilities under auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States have been described to you in our arrangement letter dated November 28, 2017. Our audit of the financial statements does not relieve management or those charged with governance of their responsibilities, which are also described in that letter. We have issued a separate communication dated November 28, 2017 regarding the planned scope and timing of our audit. Accounting Policies and Preferability of Accounting Policies and Practices Practices Under generally accepted accounting principles, in certain circumstances, management may select among alternative accounting practices. In our view, in such circumstances, management has selected the preferable accounting practice. Adoption of, or Change in, Accounting Policies Management has the ultimate responsibility for the appropriateness of the accounting policies used by the Fellowship. The Fellowship did not adopt any significant new accounting policies, nor have there been any changes in existing significant accounting policies during the current period. Significant or Unusual Transactions We did not identify any significant or unusual transactions or significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Management's Judgments and Accounting Estimates Summary information about the process used by management in formulating particularly sensitive accounting estimates and about our conclusions regarding the reasonableness of those estimates is in the attached Summary of Significant Accounting Estimates, Audit Adjustments There were no audit adjustments made to the original trial balance presented to us to begin our audit. Uncorrected Misstatements We are not aware of any uncorrected misstatements other than misstatements that are clearly trivial. Area Comments Disagreements With We encountered no disagreements with management over the Management application of significant accounting principles, the basis for management's judgments on any significant matters, the scope of the audit, or significant disclosures to be included in the consolidated financial statements. Consultations With Other Berry Court Limited Partnership, Corridor Woods Limited Partnership Accountants and Aniston Village Limited Partnership are audited by other auditors in which we refer to in our opinion. We are not aware of any other consultations management had with other accountants about accounting or auditing matters. Significant Issues Discussed No significant issues arising from the audit were discussed with or were With Management the subject of correspondence with management. Significant Difficulties We did not encounter any significant difficulties in dealing with Encountered in Performing the management during the audit. Audit Report on Internal Controls We have separately issued a report on internal controls and compliance Over Financial Reporting and under standards applicable to financial audits contained in Government on Compliance and Other Auditing Standards and the Uniform Administrative Requirements, Cost Matters Based on an Audit of Principles, and Audit Requirements for Federal Awards at 2 CFR 200 Financial Statements (Uniform Guidance). This communication is included within the Performed in Accordance with compliance report of The Housing Fellowship for the year ended Government Auditing December 31, 2017. Standards Significant Written Copies of material written communications between our firm and the Communications Between management of the Fellowship, including the representation letter Management and Our Firm provided to us by management, are attached as Exhibit A. The Housing Fellowship and Consolidated Entities Summary Schedule of Findings and Questioned Costs Year Ended December 31.2017 I. Summary of Independent Auditor's Results Financial Statements Type of auditor's report issued on whether the financial statements audited were prepared in accordance with GAAP: Unmodified Internal control over financial reporting: • Material weakness(es) identified? Yes X No • Significant deficiency(ies) identified? Yes X No Noncompliance material to financial statements noted? Yes X No Federal Awards Internal control over major programs • Material weakness(es) identified? Yes X No • Significant deficiency(ies) identified? Yes X No Type of auditor's report issued on compliance for major programs: Unmodified • Any audit findings disclosed that are required to be reported in accordance with Section 2 CFR 200.516(a)? Yes X No Identification of major program: CFDA Number Name of Federal Program or Cluster 14.239 HOME Investment Partnerships Program Dollar threshold used to distinguish between type A and type B programs $750,000 Auditee qualified as low -risk auditee? X Yes No 0 t j The Housing Fellowship and Consolidated Entities Corrective Action Plan Year Ended December 31, 2017 No matters were reported. 10 Opening the doors of Johnson County 322 E. 2nd St. Iowa City, IA 52240 Office 319-358-9212 www.housingfellowship.co Mission: to provide quality homes that are affordable to people with limited incomes. Years in existence: 28 Experience with other projects: THE has completed over 39 affordable rental projects, including four Low -Income Tax Credit projects and 11 home ownership projects and administered over $29 million in public/private funds. THE Currently owns/manages 177 safe, decent, affordable rental homes scattered throughout Iowa City, Coralville and North Liberty. THE has developed many local and State; public and private partnerships to successfully implement the projects. Through solid property development and management practices, THE has gained a reputation as one of the premier non-profit affordable housing developers in Iowa. Organization staffing: The Board of Trustees serves as the policy making body. As a certified Community Housing Development Organization, at least one third of the Board of Trustees represents the low-income community. Trustees represent key areas of expertise pertinent to the business of the Corporation; attorney, CPA, Realtor, Commercial Lender, non-profit executive. Staffing/Budget: THE employs 7.0 FTE. THF's staff members have attended training to ensure funding compliance and recordkeeping offered by IA Department of Economic Development, IA Finance Authority, Midwest Housing Equity Group and Spectrum Companies. The Executive Director is certified as Housing Development Finance Professional, the Chief Financial Officer is a CPA and MBA. The Compliance Specialist is the only certified Low -Income Housing Tax Credit Compliance Specialist in Johnson County. Maintenance staff persons each have well over 25 years in the trades. Maryann Dennis, Executive Director will be the lead staff person. She has been the Director since 1993 and acted as developer for all of The Housing Fellowship's projects. Ross Resesitch, CFO, will oversee the maintenance of all financial records/reporting. Tammy Spies, Project Manager will be the leasing agent and Tashundra Marshall the Compliance Specialist will ensure all rules and regulations are followed and all reports filed. Both have long tenures with The Housing Fellowship and understand and implement the rules and regulations associated with LITHC and federally awarded projects. The 2019 proposed Operating Budget is $1,188,542. The Housing Fellowship's financial statements are audited and a compliance report issued each year. Project Project Address 1232 Esther Court and 427 S. 1st Avenue, Iowa City Activity Type Rental Housing CITY STEPS Priority Preserving Existing Affordable Rental and Owner Housing Units CITY STEPS Goal Improve quality of existing affordable rental housing Amount Requested $69,108 Project Description Rehabilitate one four -bedroom and one two -bedroom single family rental homes for a certified Community Housing Development Organization (CHDO) for low-income Iowa City families. Improvements include upgrading HVAC, kitchen, bathrooms, water heater, wiring, roof, and other related improvements. Project includes a development fee to cover cost of managing improvements. Repayment Terms $63,108 conditional occupancy loan (forgiven if follows requirements) and $6,000 grant Affordability Period 15 year proposed (10 years required) Property Taxes Tax exempt %CDBG/HOME Funded 100% Project Budget Discussion Total budget is $69,108. Total HOME cost per unit is $34,554. Expected rents of $979 and $781. The City must provide 15%of its HOME allocation to certified CHDOs to acquire, rehab, or build affordable housing. Current City estimates place that at $70,000, though it depends on federal appropriations. If not awarded full funding, THE will prioritize major systems replacements like HVAC, water heaters, etc. Beneficiaries 51-60% AMI 100% 2 households Project Coordination with THE partners with its volunteer Board of Trustees and Committee members that set all Existing Services & other policies for THF, including their competitive bidding processes. Services Available in the Community Timeliness and Capacity to Applicant is in good standing and has successfully completed previous CDBG/HOME Successfully Complete the rental projects. Staff has no current concerns about capacity to successfully administer Proposed Project this project. Staff Concerns/Notes 1) Must comply with federal procurement standards (competitive bids) for the proposed work. 2) Disclosed potential conflict of interest - contractor selection will be subject to review by the City's legal department. 3) Must remain a certified CH DO for period of affordability 4) Can THE proceed with the rehab using equity rather than city assistance? S:\DEV\CDBGHOME\FY20`Applications\FY20 Staff reports FINAL.xlsx General Information and Project Need Ci Select Language I Community Development Block Grant (CDBG) and/or HOME Investment Partnership (HOME) programs provide funding to aid in the development of viable urban communities and in the provision of safe and decent affordable housing. Applications are due Tuesday, January 18, 2019 at noon. This year, $625,000 are estimated to be available through this competitive process. Please reviewthe FY20 CDBG/HOME Application Guide for more information about eligible activities. Please submit one project proposal per application. Questions can be directed to kirk-lehmann@iowa-city.org or contact Neighborhood Services at 319-356-5230. Additional assistance, and hard copy applications, are available upon request Project Information W . Project name * Preservation of Affordable Rental Housing Project Address* Street Address 322 E. 2nd Street Address Line 2 City Iowa City Fbstal / Zip mde 52240 Type of Project(?) © Rental Housing ❑ Owner Housing ❑ Public Facility ❑ Other Type of Activity(?) ❑ Acquisition ❑ New Construction © Rehabilitation ❑ Direct Assistance ❑ Other Applicants Applicant Name * The Housing Fellowship Applicant Address* State / Province / fiagion IA CcunUy United States Street Address 322 E. 2nd Street Address Line 2 City Iowa City Fbstal / Zip Cede 52240 Contact Person, Title* Maryann Dennis Phone Number* 3193589212 Email* mdennis@housingfellowship.com DUNS Number(?) 964658236 State / I?ovince / I Lgion IA County US DUNS # Verification*(?) Go to htp:#fedgov.dnb.com`webfamto lookup a create a DINS number. I?ovide a copy of the email you readve with your confirmed DINS number. DUNS # Cage Code Verify THE 01-2019.pdf 64.7KB CAGE Code (?) Obtain by registering on SAMgov 6SNC3 SAM.gov Registration*(?) All subreapienls crust register on SAMgov before a legally binding agreement can be signed. Attach your SAMgov E tity F4egistraton Sum-ory as evidence that this has been completed. DUNS # Cage Code Verify THE 01-2019.pdf 64.7KB General Information Type of Lead Applicant* G Community Housing Development Organization O Private non-profit organization 6 Private for -profit, individual or partnership applicant O Public Organization W-9 Form*(?) (F4equest forTaxpayer ID# & Cerlificaton) W-9 THE 01-2019.pdf 72.55 KB Organizational Status * (?) Go to https://sm.ima.gm/smmhtbusiness to lookup the organizafion applying fa funds. Rovide a copy of the Business E tity Summary screen. Secy of State THE 01-2019.pdf 20.12KB Amount of Funds Requested* $ 69,108.00 Did you attend an Applicant Workshop?* 0 Yes 0 No MaryAnn Dennis From: samadmin@sam.gov Sent: Monday, December 17, 2018 10:46 AM To: mdennis@housingfellowship.com Cc: mdennis@housingfellowship.com Subject: Registration Activated for Housing Fellowship, The / 964658236 / 6SNC3 in the U.S. Government's System for Award Management (SAM) This email was sent by an automated administrator. Please do not reply to this message. Dear Mary Ann Dennis, Maryann Dennis, The registration for Housing Fellowship, The / 964658236 / 6SNC3 is now active in the U.S. Government's System for Award Management (SAM). If you did not provide a Commercial and Government Entity (CAGE) Code during the registration process, one has been assigned to you by the Defense Logistics Agency (DLA) CAGE Program. In order to remain eligible to do business with the Federal government, you must renew your entity's registration in SAM every year.The annual renewal date for the registration is 2019-12-17 10:42:58. You may invite additional users to manage or review your entity registration by following these steps: 1. Go to www.sam.gov and log in. 2. Select Entity Users from the sub -navigation menu on the My SAM page. 3. Select Invite User from the Entity Users menu. 4. Select the desired entity from the Level List. 5. Provide invitee's email address. 6. Assign role(s) to be associated with the user account. 7. Select Submit. All invitees will receive an email message from SAM with instructions on how to complete the process. Remember, this process is entirely FREE to you. It is FREE to register and maintain your registration in SAM. It is FREE to get help with your registration. Contact our supporting Federal Service Desk at www.fsd.gov, or by telephone at 866- 606-8220 (toll free) or 334-206-7828 (internationally), for FREE help. In addition, if you are located in the U.S, and its outlying areas, you can also get FREE support from your local Procurement Technical Assistance Center (PTAC), an official resource for government contracting assistance. Go to http://www.aptac-us.org to find your closest PTAC. Thank you, The System for Award Management (SAM) Administrator https://www.sam.gov Provide a few lines describing the proposed project* HOME funds will be used to rehab two single family rental homes owned by The Housing Fellowship, a certified Community Housing Development Organization, with 28 years experience developing, owning and managing affordable rental homes for low-income Iowa City families. The properties have been in service as affordable rental homes for nearly twenty years and are in need of significant improvements and or replacement of major systems. 1232 Esther Court is a four bedroom home. 427 S. 1st Avenue is a two bedroom home. Both are occupied by low-income families that will remain in their homes during rehab. This request is for a conditional occupancy loan in the amount of $63,108 and a grant for the development fee of $6,000. Please specifythe one or two most applicable priority need(s) this application addresses, as shown in the 2016-2020 CITY STEPS Plan. Explain how this project will meet this/those need(s).* Preserving Existing Affordable Rental and Owner Housing Units is the second highest priority in the STEPS plan with rental housing rehabilitation/acquisition the top goal of this priority. This project will preserve two affordable rental homes. 1232 Esther Court is occupied by a family of six having a household income below 30%AMI. 427 S. 1st Avenue is occupied by a four person household having an income below60%AMI. Budget and Resources Type of Funding Requested* Financing tears will be based on project feasibility and the ability to repay. Terms approved by City Council may be different than what is requested. Loan Requested Loan Terms Principal Amount Interest Rate $ 63,108.00 0 Affordability Period (?)Yearly Payment 15 $ 0.00 Source of Funds Rease enter below the types of funding and arrounls requested fa the proposed project, including if the funding is conTifted. If not a loan, leave loan tears blank Select the blank space for possible sources of income, a enter your own. Public Resources Funding Source and Type (?) Amount Iowa City HOME/CDBG $ 63108.00 Iowa City HOME $ 6000.00 Total Public Funds $ 69,108.00 Interestrate Term(?) Committed 0 15 No n/a n/a No For uncommitted funds, please indicate when the applicant will applyfor funds NA Private Resources .................................................. Funding Source & Type (?) Amount Interest rate Term(?) Committed Bank Loan $ Total Private Funds $ 0.00 Total Project Funding $ 69,108.00 Use of Fund Please enter below the uses of funding and amounts requested for the proposed project, including whether formal cost estimates were received. Select the blank space for possible use of funds, or enter your o wn." Type (?) Amount Formal Cost Name of Entity Estimate providing cost estimate Construction / Rehabilitation $ 63,108.00 Yes various contractors Developer Fee / Overhead $ 6,000.00 No THE Total Use of Funds Amount $ 69,108.00 Scope of work(?) Attach any docurrentaton used fa cost esUrretes Scope of Work THE rehab 01-2019.pdf Other Considerations Number of households or persons served* 10 Total cost per household or person served $ 6,910.80 What percentage of the proposed budget will be made up of private funds?* 0.00 Dollars Leveraged Per City Dollar Spent $ 0.10 41.26 KB Describe any community partnerships or volunteers that will contribute to the project. The Board of Trustees and Committee members are volunteers. They set all policies for the development and preservation of THF's project to provide affordable rental housing to low-income families. HOME regulations require competitive bidding process for the rehabilitation of affordable housing. Describe any identity of interest (101) relationships with the applicant and/or project owner, i.e. General Partner has a financial interest in the construction company, etc.* THE Project Manager is married to a Contractor who has bid rehab projects. The Project Manager does not sign any documents related to a project bid on by her husband. Pro forma * (?) Find the prof a" and profor" instruction at www.icgw.agVacticnplan THE FY20 Rehab Pro Forma 01-2019.pdf 303.62KB The Housing Fellowship FY20 HOME Application for Rental Rehab 1232 Esther Court Rehab Estimate Item Estimate Provided By Contractors completing THFrehab In 2018 Remove HVAC system and replace with Bryant High $ 7,136 Brandt Htgand AC Efficiency furnance and condenser, Amana Coll and Misc. materials Kitchen re -model Including: Removal and slsposel of flooring, $ 16,909 Creative Improvements cabinets, counter topes, sired faucets, applicances. Install Armstrong cabinets, Laminated plastic formica counter top (post formed top with front edge and back splash Integral. Install Kitchen sink -double comparment 18 gauge stainless steel with signle lever faucet with swing spout with aerator and spray attachment (provide basket strainers, P-traps and stops. Install Armstrong sheet vinylflooring. Install appliances including self -venting microwave, self-cleaning electric range, diswasher, refrigerator ($2,500 appliance allowance( Paint kitchen -low VOC paints. *Can use equal brands. Remodel upstairs Jack/Jill Bath including: Tear out and $ 11,050 Wessling Construction dispose tub, tub -surround, toilet, sink, vanity flooring. Install new underlayment as needed. Install Armstrong sheet vinyl flooring with 4" solid base. Install Aqua Glass one piece tub/shower with Delta Lahara monitor 14 series fixtures. Install American Standard toilet (minimum 1.28 gallon per flush). install self rimming vitreous china lavatory with single lever faouceq pop up drain, p-trap and angle supplies with stops. Install Armstrong vanity, medicine cabinet and mirror, install over lavatory light fixture with three bulbs. Wire light and fan to come on with one switch. 'Can use equal brands, install as needed; paper holder, towel bar, tub/shower rod, robe hook. Remodel downstairs 3/4 bath Including: Tear out and $ 6,500.00 dispose toilet, sink, vanity flooring. Install new underlayment as needed. Install Armstrong sheet vinyl flooring with 4" solid base. Install American Standard toilet (minimum L28 gallon per flush. Install Armstrong vanity, medicine cabinet and mirror. brands. install self rimming vitreous china lavatory with single lever faucet, pop up drain, p-trap and angle supplies with stops. Install over lavatory light fixture with one bulb. Wire light and fan to come on with one switch.'Can use equal brands. Install as needed; paper holder, towel bar Contingency ]% $ 2,912 1232 Esther Court Rehab TOTAL $ 44,506 427 S 1st Avenue Rehab Estimate $ 4,625 Creative Improvements Tear offand dispose of shingles and roof underlayment. Install high temperature Ice and water barrier underlayment or equivalent and replace with Architectural Fiberglass Shingles with UL wind resistance label. UL Class A fire resistance label. Class A shingles to have 25 year warranty minimum, or equivalent. $ 2,400 Creative Improvements Remove and dispose of gutters and downspouts. Gutters type. 5" Prefinished baked enamel to be aluminum, seamless, Downspouts - 3" x 4" Prefinlshed baked enamel aluminum with color to match gutters. SofFlt- Bolick System 3 pre -finished aluminum soffit system; fully vented, minimum of 12.96 sq.m. free area per lineal foot. Remove HVAC system and replace with Bryant High $ 7,136 Brandt Htgand AC Efficiency furnance and condenser, Amara Coll or equivalent and Misc. materials Remove water heater and replace with Sure Comfort 40 gas $ 724 Coyles Plumbing water heater or equivalent. Wire to Code $ 2,505 Advanced Electric Contingent rA 427 S 1st Avenue Rehab Estimate $ 18,602 TOTAL BOTH PROPERTIES $ 63,208 THE Developer Fee 10% $ 6,000 TOTAL Application Amount $ 69,108 The Housing Fellowship Rental Rehab 01-2019 Proforma Spread Sheet Rental Housing Projects ease ante . i '.to' ro fields onl Ii ou am uI exce Line Description Symbols YR1 YR2 YR3 YR4 YR5 YR6 YR7 YR8 YR9 YR10 Revenues 1 _,_ 1 Gross Rental Income . G Rent i,$ �}ty12b-btt $ 21,542.40 $ 21,973.25 $ 22,412.71 $ 22,860.97 $ $ 23,784.55 $ 24.260.24 $ 24,745.45 $ 25,240.36 ._ .. ...-23318_19 _. 2 Other Income .O Income, $ - $ - $ - $ - $ - $ - $ $ - b - 3 Tenant Contributions .T conwbwon $ $ $ $ $ $ $ $ $ 4 Gross Revenues —, = G. Inooma $ 21,120.00 $ 21,542.40 $ 21,973.25 $ 22,412.71 $ 22,060.97 $ 23.318.19 $ 23,784s5 $ 24,260.24 $ 24,745.45 $ 25,240.36 5 Vacancy_Loss -vac $ 1,0%.00 $ 1,077.12 $ 1,098.66 $ 1,120.64 $ 1,143.05 $ 1,165.91 $ 1,189.23 $ 1,213.01 $ 1,237.27 $ 1,262.02 ISM Vac. RMe X GFWa Income) 6 Effective Gross Income =EGI $ 20,064.00 $ 20,465,28 $ 20,874.59 $ 21,292.08 $ 21,717.92 $ 22.15228 $ 22.695.32 $ 23,047.23 $ 23,508.17 $ 23,978.34 _Operating Expenses 7 Insurance The total of items #7-103hall be nG :. less than $ 2,266.00 $ 2333.98 $ 2,404.00 $ 2.476.12 $ 2,550.40 $ 2,626.92 $ 2,705.72 S 2.786.89 $ 2.870.50 8 Maintenance & Structural Repairs n� r 4200-00' $ 1•238.00 1.622.75 $ 1273.08 $ 1,568.43 $ 1,811.27 $ 1,615.49 $ 1,360.61 $ 1,663.95 $ 1,391.13 $ 1,713.87 § 1,432.e6 § 1,765.29 $T 1s475.86 $ 1,818.25 $ 1,520.12 $ 1,872.79 $ 1,566.73 $ 1.928.98 9 ---- Mana ement Fees 10 Misc. Operatinq EX enses/Utilities, Mktg. +7 peb,6b, $ 1,112.40 $ 1,145.77 $ 1,180.15 $ 1.216.55 $ 1,252.02 $ 1,289.58 $ 1,328.26 $ 1,368.11 $ 1.409.16 11 Property Tax z-- , a - $ - $ - $ - $ - s - $ - $ - _ 12 Reserves O en8np reserve no less then$350Nn 7 -' b 721.00 $ 742.83 $ 764.91 $ 787.88 $ 811.48 $ 836.84 $ 860.91 $ 886]4 $ 913.34 13 Total Operating Expenses -OPR. EX enses $ 6,658.40 $ 6,858.15 $ 7,%3.90 $ 7,275.81 $ 7,494.09 $ 7,718.91 $ 7,950.48 $ 8,188.99 $ 8,434.66 $ 8,687.70 14 Net OperatingPperating Income =NO1 $ 13,405.60 $ 13,607.13 $ 13,810.68 1 $ 14.016.26 $ 14,223.83 $ 14,433.37 $ 14,044.84 $ 14,858.24 $ 15,073.61 $ 16,290.64 15 Debt Service First Mortgage 16 Debt Service Subordinate Mortgage(s) 17 Total Debt Service -Ovs $ 11,400.00 $ 11,400.00 $ 11,400.00 $ 11,400.00 $ 11,400.0 $ 11.400.00 $ 11,400.00 $ 11,400.00 $ 11,400.00 $ 11.400.00 18 Cash Flow =CF $ 2.005.60 $ 2,207.13 $ 2,410.69 $ 2,616.26 $ 2.823.83 $ 3.033.37 $ 3,244.84 $ 3,458.24 $ 3,673.51 $ 3,890.64 18 b E uit Investment In Pro ect - #13IV/01 #DIV/01 MDIV/01 #DIV/01 Wiviol #DIV/01 #DIVI01 NONaI #DIV/01 g131Vl01 19 Cash -on- Cash ROI OF ca.n Fbw GWeEWFauin vgenenn nP oec Eq.,tylmmest. OCR 1.175929825 1.193607719 1.211463951 1.229496829 1.247704473 1.266084802 1.284635524 1.303354131 1.322237887 t.34128381. NU.ape Reue prtn V.13. Weeno tun uxn IN Ewlo U eom Miter ".. Enron I.p0.1.6b The Housing Fellowship Rental Rehab 01-2019 Line YR1 YR2 YR3 I YR4 YR5 YR8 YR7 YR8 YR9 YR10 20 21 22 23 24 Determining Taxes Cash Flow De reciatofi EXpense5 Amortization of FeesAMORT2 Principal Payments Reserves _ CF DEPR �L is +P +RESERVES $ $ 2005.60 ';s -'. 700.DD $ 2,207.13 $ - $ 2,410.89 5 - $ 2,616.26 $ - $ 2823.83 $ - $ $ 3,033.37 - $ 3,244.84 $ - $ $ 3.458.24 - $ 3,673.51 $ - $ 3.890.64 $ - �y ,. ; - ; -;, $ 700.00 $ ;1$.'. $ 700.00 $ , ",.. . $ 700.00 $ { $ 700.00 $ $.. , „. 1 $ 70D.00 $ . $ 700.00 $ a $ 700.00 1 $ y.: ;., .;. $ 700.00 $ $, $ 700.00 25 Earnings LOSS Before Taxes =Eerx $ 2,705.60 $ 2,907.13 $ 3,110.69 $ 3,316.26 $ 3,523.83 $ 3.733.37 $ 3,944.84 $ 4,158.24 $ 4.373.61 $ 4,590.64 26 x Tax Rate 35% or 0%) xRATE I' ' G,o%i 0% 0% 0% 0% 0% 0% 0% 0% 0% 27 Tax Incurred Saved =TAX or 8.,In : $ $ a $ $ a $ $ $ a Cash Flow After Tax 26 Cash Flow CF $ 2,005.80 $ 2.207.13 $ 2.410.69 $ 2,616.20 $ 2,823.83 $ 3.033.37 $ 3,244.84 $ 3,45_8.24 _$ 3,673.51 $ 3,890.64 _ 29 Tax Incurred Tax Saved -TAX +SA $ $ $ $ $ $ $ $ $ $ 30 Cash Flow After Tax =CFATx $ 2,005.80 $ 2,207.13 $ 2.410+091 $ 2,616.26 $ 2.823.83 $ 3,033.37 24484 $ 3F$3,244,U $ 3,458+24 $ 3.673.61 $ 3.890.64 Line Total Benefit Anal sis 31 32 33 34 Cash Flow After Tax Rehabilitation Tax Credit low Income Housing Tax Credit Net Sale Proceeds CFATx +RTc +uHrc +NsP $ 2005+60 :i I '; ''��,� $ $ 2.207.13 $ - $ 2,410.69 a - $ 2.616.26 s - $ 2.823.83 $ - $ $ 3,033.37 - $ $ 3,45824 - $ 3.673.51 $ $ 3,890.64 $ - 1 s - s - a - a - $ - s- $ - $_,__,,,,,,,= $ $ $ $ „_,,, $ $ $ $ $ $ 35 Total Benefits After Tax NCFAT =NCFATx $ 2,005.80 $ 2.207.13 $ 2.410.69 $ 2.616.26 2,823.83 $ 3,033.37 $ 3,244.64 $ 3,458._24 3,673.51 $ 3,690.64 36 Return on Investment Rol aDIV/m aDIV/01 nDlw01 nDIV/01 _$_ _ NDIV/01 aDIVIOI aDlmol NDIV/01 _$__ NDIV/01 aDIVmi The Housing Fellowship Rental Rehab 01-2019 YR11 YR12 YR13 YR14 YR15 YR16 YR17 YR18 YR19 YR20 Line Description $ 25,745.16 $ 28,260.07 $ 28,785.27 $ 27,320.97 $ 27,867.39 $ 28,424.74 $ 28,993.23 $ 29,573.10 $ 30.164.56 $ 30,767.85 1 Revenues Gross Rental Income $ $ $ S $ $ $ $ $ $ 2 Other Income $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 3 Tenant Contributions $ 25,745.16 $ 26,260.07 $ 26,785.27 $ 27,320.97 $ 27,867.39 $ 28,424.74 $ 28,993.23 $ 29,673.10 $ 30,164.56 $ 30.767.85 4 Gross Revenues $ 1,287.26 $ 1,313.00 $ 1,339.26 $ 1,368.05 $ 1,393.37 $ 1,421.24 $ 1,449.66 $ 1,478.65 $ 1,508.23 $ 1.538.39 5 Vacancy Loss (S%Vac. Ral xGmss Income $ 24,457.90 $ 24,947.06 $ 26,446.00 $ 25,954.92 $ 26,474.02 $ 27,003.50 $ 27.543.57 $ 28,094.44 $ 28,656.33 $ 29.229.46 6 Effective Gross Income Ooeratina Exoenses $ 2,9%.62 $ 3,045.31 $ 3,136.87 $ 3.230.77 S 3.327.70 $ 3.427.53 $ 3,530.35 $ 3.836.26 $ 3.745.35 $ 3,857.71 7 Insurance $ 1,612.70 $ 1,661.08 $ 1,710.91 $ 1,762.24 $ 1,815.11 $ 1,869.56 $ 1,925.65 $ 1,983.42 $ 2.042.92 $ 2.104.21 8 Maintenance & Structural Repairs $ 1.986.86 $ 2,046.45 $ 2,107.84 $ 2,171.08 $ 2,236.21 $ 2,303.30 $ 2,372.40 $ 2,443.57 $ 2,516.88 $ 2.692.38 9 _ Management Fees $ 1,451.43 $ 1,494.97 $ 1,639.82 $ 1,588.02 $ 1,633.60 $ 1,682.60 $ 1.733.08 $ 1,785.08 $ 1,838.63 $ 1,893.79 10 Misc. Operating Expenses $ $ $ $ $ $ $ $ $ s 11_ _ Pro Taxes $ 940.74 $ maw $ 998.03 $ 1,027.97 $ 1.058.81 $ 1090.58 ___ $ 1.123.29 __ $ 1,156.99 _ _ $ 1,191.70 _ $ 1,227.45 12 _art Reserves $ 8,040.33 $ 9,21678 $ 9,493.29 $ 9.778.08 $ 10,071.43 S 10.373.57 $ 10,684.78 $ 11,005.32 $ 11,335.48 $ 11,675.64 13 Total Operating Expenses $ 15,609.67 $ 16,730.28 $ 15,952.72 $ 16,176.84 $ 10,402.59 $ 16,629.93 S 16,858s0 $ 17,089.12 $ 17,320.85 $ 17,553.91 14 Net Operating Income 5., .7ti.iop,4U'k--$ .,,11,100.00„=-1 „11:duo.00;T$ lydoo.UG, F#;i- i1-doo.p9,.1 1i �lopo¢;�,�11,4ao.ao 4. v7bnv6,9e 3 'i'h.46o,66 'S.,if490 o6. 15 16 Debt Service First Mortgage Debt Service Subordinate Mortgage(s) $ 11.400.00 $ 11,400.00 $ 11,400.00 $ 11,400.90 $ 11,490.00 $ 11,40DW $ 11,400.0 $ 11,400.00 $ 11,400.00 $ 11,400.00 17 Total Debt Service $ 4,109.57 aowo� $ 4,330.28 aDI I I $ 4.552.72 0DIV101 $ 4,776.84 MV101 $ 5,002.59 ADIV/01 $ 5,229.93 #DIV/01 $ 5,458.00 aDIVioi $ 5,M9.12 aowtm $ 5,920.85 aoanm $ 6,163.91 16 18 b Cash Flow ._._._ Equity Investment In Project nDimoI 19 Cash -on- Cash ROI � Ea 1.3604887N 1.379849063 1,399361147 1.419020926 1.438824W 1.458765973 1.47884167 1.499045891 1,519373019 1.539817078 DON Comm, RaW The Housing Fellowship Rental Rehab 01-2019 YR11 YR12 YR13 YR14 YR15 YR16 YR17 YR18 YR19 YR20 Line Description Determining Taxes $ 4,109.57 $ 4,330.28 $ 4.552.72 $ 4,776.84 $ 5,002.59 $ 5,229.93 $ 5,458.80 $ 6,689.12 $ 5,920.85 $ 6,153.91 20 Cash Flow $ __$ - _,$ - $ - $ - $ - $ - s - $ - $ - 21 Depreciation Ex s $ 700.00 $ $ 700.00 $ $ 1 $ 700.00 1 $ $ 70D.00 $ $ 700.00 $ 1 $ 700.00 $ $ 700.00 $ 1 $ 70D.00 1 $ $ 700.00 1 $ $ 700.00 22 Amortization of Fees 23 Principal Payments — 24 Reserves $ 4,809.67V4,330.28 $ 5,262.72 $ 5,476,M $ 5,702.59 $ 5,929.93 $ 6,158.80 $ 6.389.12 $ 6,620s5 $ 8.853.91 25 Earnings Loss Before Taxes 0% 0% 0% 0% 0% 0% 0% 0% 0% 26 x Tax Rate 35% or 0% $ $ $ $ $ $ $ $ $ 27 Tax Incurred Saved Cash Flow After Tax $ 4,109.57 $ 4,652.72 $ 4,776.84 $ 5,002.59 $ 5,229.93 $ 5,458.60 $ 6,669.12 $ 5,920.85 $ 6,163.91 26 Cash Flow $ $ $ $ $ $ $ $ $ 29 Tax Incurred(lax Saved $ 4.109.57 $ 4,330.26 $ 4,552.72 $ 4,776.84 $ 5,002.69 $ 5,229.93 1 $ 5.458.80 $ 5.689.12 j $ 5,920.85 $ 6,153.91 30 Cash Flow After Tax Line Total Benefit Analysis $ 4,109.57 $ 4,330.28 $ 4.652.72 $ 4.776.84 $ 6.002.59 $ 5,229.93 $ 5,458.80 $__ 5.689.12 $ 5,920.85 $ 6153.91 31 Cash Flow After Tax $ $ $ $ $ s $ $ $ $ $ $ $ $ $ $ $ $ $ $ 32 33 34 Rehabilitation Tax Credit Low Income Housin Tax Credit Net Sale Proceeds $ 4.109.57 $ 4,330.28 $ 4,552.72 $ 4,776.84 $ 5,002.59 $ 5.229.93 S 6.458.80 $ 6,689.12 $ 5,920.85 $ 6,153.91 35 Total Benefits After Tax NCFAT uoiv101 #DIV/01 ODIW01 noiv101 HD1vroI uowi01 aoiw01 MV101 #DW/01 NDIV/01 36 Return on Investment Feasibility and Community Impact Outline the proposed timetable and expected impact for the project. For the timetable, include when requested funding will be committed, project milestones such as rezoning or construction, and when funds will be spent. If applicant plans to apply for funds not committed, include the anticipated date for application and when funds will be awarded. For expected impact, break out beneficiaries by income group. If funded, both the schedule and income breakdown will be used for any project agreement. Project Benefit Narrative Describe project benefits and requirements Such as beneficiary eligibility requirenurts, targeted beneficiaries, etc. Even though both homes are occupied, the eligibility requirements for tenancy in the homes throughout the affordability period are; Household income at move -in must be below 60%AMI Household income/voucher must be adequate to pay rent and utilities Household must have three years of favorable landlord references Household must not have been convicted of a crime of violence against persons or property within the last five years Rental Housing Expected Number of Units* Expected Rent* 1 $ 979.00 1 $ 781.00 Time Table Date Description of Activity 7/1/2019 HOME funds available 9/2/2019 Environmental clearance/funding agreement signed 9/27/2019 Rehab work lists complete/advertise for bids 10/31/2019 Bid opening/contracts awarded/proceed to work signed 2/3/2020 Rehab complete (weather conditions may apply) 3/13/2020 Completion/close-out reports submitted. Affordability period begins To promote the efficient use of public funds, describe how the project will continue to provide public benefits through and beyond the required compliance period. Describe how the project will provide public benefits below rates in the existing market As a CHDO, THE will provide public benefits; the properties will be maintained as affordable rental homes for the life of the properties, well beyond the required term of affordability. The rents on the homes are well below the area market rents;the 2017 Apartment study (Cook Appraisal) found average market rents for two bedroom apartments to be $935 and $2,066 for a four bedroom. The HOME rents (net to THF) are significantly lower; $781 for two bedroom and $979 for a four bedroom In what manner or form will the project proceed if it is awarded less than full funding? If there are several components, how will they be prioritized? The rehab work lists will be prioritized and the major systems replacements (i.e. HVAC, water heat) will have top priority. Income Breakdown Please indicate the population to be served by the proposed program according to the linked income categories. If requesting money for a specific administrative expense (like a staff member's salary), indicate the population served by your entire agency. (Please Note: If funded, this information will be used as income targeting for your Agreement). Median Income Number of Persons 0 - 30% 31 - 50% 51 - 60% 10 61 - 80% Over 80% Total Persons/Households 10 Percent LMI 100.00 Please note the basis for these estimates* HOME allowed limits that will be maintained throughout the affordability term. Please note that both homes are occupied now by families under 30% and 60%AMI. Capacity and Applicant History Please list amount of CDBG and/or HOME funds received Wthin the last four Qtyfsal years and the status of the pmject(s) undertalxn. CDBG and/or HOME funds received Fiscal Year Funds Received Budgeted Amount Date Project Amount Expended Completed July 1, 2015 to June 30, 2016 $ 316,000.00 $ 316,000.00 6/29/2018 July 1, 2016 to June 30, 2017 $ 74,000.00 $ 68,998.00 July 1, 2017 to June 30, 2018 $ 204,000.00 $ 197,998.00 July 1, 2018 to June 30, 2019 $ 111,034.00 $ 0.00 Please describe your organization's structure, officers, and staff.* THE has maintained CHDO certification by the City of Iowa City since 1996. The 11 member Board of Trustees serves as the policy making body. Trustees represent key areas of expertise pertinent to the business of the Corporation; law, banking, developer, and members representing the low- income community (including two tenants). Officers include President, Vice -President, Secretary/Treasurer. Trustees and key community members make up the Board Committees: Executive Audit Committee Finance Committee Housing Advisory Committee Recruitment and Orientation Committee Succession Committee The Housing Fellowship has 7.0 FTE. Very little staff turnover has occurred over the last five years. Please describe the education and experience of key staff who will implement the project (excluding volunteers, board members, and consultants). If consultants are utilized, identify what role theywill play in the project.* Maryann Dennis has been the Executive Director of the Housing Fellowship since January 1993. She has extensive experience in working with low-income families and the administration of federal and private funding sources. She currently oversees all operations in addition to The Housing Fellowship. Ms. Dennis is a certified Housing Development Finance Professional through the National Development Council. She holds a Master's Degree in Social Work Administration and Social Development from the University of Iowa. Ross Resetich, CFO joined THE in February, 2018. Ross is a CPA and has an MBA from St. Ambrose. He is responsible to oversee all fiscal duties according to the Financial Management Policies and Procedures; including budgeting and reporting for THE and related entities, bank reconciliations, audits and oversees AP and AR. Tashundra Gathright, a University of Iowa Graduate in Social Workjoined THE as Compliance Specialist in 2008. Ms. Gathright is the only certified tax credit compliance specialist in Johnson County. She completes all income qualifications for applicants and tenants and prepares all reports for funders. Tammy Spies, Project Manager has been employed at THE since 2004. She has an A.A. degree in marketing from Ellsworth Community College. Ms. Spies oversees all leases, rehab and the maintenance department. Please summarize your organization's portfolio, including how many units you own and/or manage, how many homes you have built/rehabilitated/sold, and what projects are underway.* Rental units owned and managed = 107 LIHTC rental units managed = 70 Rental Constructed Managed by THE = 93; Constructed for Iowa City owned rental = 10 Owner -occupied constructed = 26 Rental units rehabbed = 67 (includes a 16 unit complex destroyed in the 2008 flood) Pipeline = Rehab of 6 units. Construction of 33 LIHTC units, 29 affordable and 4 market at 628 S. Dubuque St. Evidence of Fiscal Capacity(?) Audit Surnrery Audit Summary THE 01-2019. pdf Evidence of Organizational Capacity(?) Up to four pages of additional infanalion about the capacity of the organization nay be included. Examples of possible evidence nay be resumes of lay staff, additional descriptions of organizational activities, a other relevant infonrefion. Capacity description THE 01-2019.docx 133.84KB Is the applicant (including partners, co -applicants, etc.) currently in compliance with all federal, state and local laws, rules and regulations, including any CDBG and/or HOME funded projects?* O Yes 6 No f Currently in litigation Please identify relevant market factors that verify the demand for the proposed project based on the City of Iowa City Housing Program Guidelines policy. The City may require a Market Analysis for large or complicated projects to support the need before entering an agreement. "This does not apply to tenant based rental assistance, homy mer rehabilitation, down payment assistance, a Oi60 operating expenses. Number of units for rent: Iowa City — 14,024 Between 2000 and 2012, all jurisdictions added to their housing stock. However, the majority of this growth has been in single-family housing. Housing vacancy rates are helpful indicators of occupancy turnover and housing mobility. The housing industry generally regards a 5 percent vacancy rate as optimal. At this rate, there is neither a surplus nor deficit of available units, which helps regulate housing costs and mitigate cost burden. (Housing Market Analysis, 2012). The 2017 Multi -Family Housing Survey by Cook Appraisal found vacancy rates in multi -family rental properties to be 4.1 %for two bedroom units and 7.99%for fours. The 2018 vacancy rate for all THE owned and managed rental homes was 4.4%. Both project homes are rented; 427 S. 1st Avenue renter family is entering their fifth year and the family at 1232 Esther Court their third year. The study found average rents for two bedroom apartments to be $935 and $2,066 for a four bedroom. The HOME rents (net to THF) are significantly lower; $781 for two bedroom and $979 for a four bedroom. Condition of Project Properties Address Year Built Date acquired by THE 1232 Esther Court 1978 7/16/1999 427 S. 1st Avenue 1961 5/27/1998 Both properties have current rental permits. Work to be completed: 1232 Esther Court 427 S. 1 st Avenue Required Communications Generally accepted auditing standards (AU-C 260, The Auditor's Communication With Those Charged With Governance) require the auditor to promote effective two-way communication between the auditor and those charged with governance. Consistent with this requirement, the following summarizes our responsibilities regarding the consolidated financial statement audit as well as observations arising from our audit that are significant and relevant to your responsibility to oversee the financial reporting process. Area Our Responsibilities With Regard to the Financial Statement Audit Overview of the Planned Scope and Timing of the Financial Statement Audit Comments Our responsibilities under auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States have been described to you in our arrangement letter dated November 28, 2017. Our audit of the financial statements does not relieve management or those charged with governance of their responsibilities, which are also described in that letter. We have issued a separate communication dated November 28, 2017 regarding the planned scope and timing of our audit. Accounting Policies and Preferability of Accounting Policies and Practices Practices Under generally accepted accounting principles, in certain circumstances, management may select among alternative accounting practices. In our view, in such circumstances, management has selected the preferable accounting practice. Adoption of, or Change in, Accounting Policies Management has the ultimate responsibility for the appropriateness of the accounting policies used by the Fellowship. The Fellowship did not adopt any significant new accounting policies, nor have there been any changes in existing significant accounting policies during the current period. Significant or Unusual Transactions We did not identify any significant or unusual transactions or significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. Management's Judgments and Accounting Estimates Summary information about the process used by management in formulating particularly sensitive accounting estimates and about our conclusions regarding the reasonableness of those estimates is in the attached Summary of Significant Accounting Estimates, Audit Adjustments There were no audit adjustments made to the original trial balance presented to us to begin our audit. Uncorrected Misstatements We are not aware of any uncorrected misstatements other than misstatements that are clearly trivial. Area Comments Disagreements With We encountered no disagreements with management over the Management application of significant accounting principles, the basis for management's judgments on any significant matters, the scope of the audit, or significant disclosures to be included in the consolidated financial statements. Consultations With Other Berry Court Limited Partnership, Corridor Woods Limited Partnership Accountants and Aniston Village Limited Partnership are audited by other auditors in which we refer to in our opinion. We are not aware of any other consultations management had with other accountants about accounting or auditing matters. Significant Issues Discussed No significant issues arising from the audit were discussed with or were With Management the subject of correspondence with management. Significant Difficulties We did not encounter any significant difficulties in dealing with Encountered in Performing the management during the audit. Audit Report on Internal Controls We have separately issued a report on internal controls and compliance Over Financial Reporting and under standards applicable to financial audits contained in Government on Compliance and Other Auditing Standards and the Uniform Administrative Requirements, Cost Matters Based on an Audit of Principles, and Audit Requirements for Federal Awards at 2 CFR 200 Financial Statements (Uniform Guidance). This communication is included within the Performed in Accordance with compliance report of The Housing Fellowship for the year ended Government Auditing December 31, 2017. Standards Significant Written Copies of material written communications between our firm and the Communications Between management of the Fellowship, including the representation letter Management and Our Firm provided to us by management, are attached as Exhibit A. The Housing Fellowship and Consolidated Entities Summary Schedule of Findings and Questioned Costs Year Ended December 31.2017 I. Summary of Independent Auditor's Results Financial Statements Type of auditor's report issued on whether the financial statements audited were prepared in accordance with GAAP: Unmodified Internal control over financial reporting: • Material weakness(es) identified? Yes X No • Significant deficiency(ies) identified? Yes X No Noncompliance material to financial statements noted? Yes X No Federal Awards Internal control over major programs • Material weakness(es) identified? Yes X No • Significant deficiency(ies) identified? Yes X No Type of auditor's report issued on compliance for major programs: Unmodified • Any audit findings disclosed that are required to be reported in accordance with Section 2 CFR 200.516(a)? Yes X No Identification of major program: CFDA Number Name of Federal Program or Cluster 14.239 HOME Investment Partnerships Program Dollar threshold used to distinguish between type A and type B programs $750,000 Auditee qualified as low -risk auditee? X Yes No 0 t j The Housing Fellowship and Consolidated Entities Corrective Action Plan Year Ended December 31, 2017 No matters were reported. 10 Project Name Domestic Violence Intervention ProgramRepair Project Address Confidential Activity Type Public Facility (PF) CITY STEPS Priority PF Improvements - Domestic Violence Victims/Homeless CITY STEPS Goal Improve and maintain public facilities Amount Requested $120,000 Project Description Renovate emergency shelter for adult and youth victims of domestic violence. Specifically, rehabilitate the parking area and youth services area, and add fencing to secure our shelter property. Repayment Terms Conditional occupancy loan (forgiven if follows requirements) Compliance Period 12 years proposed Property Taxes Tax exempt % CDBG/HOME Funded 94% Project Budget Discussion Total renovation budget is approximately $127,510, with matching funds coming from private donations. Prioritization list of improvements if not awarded full funding: 1) Asphalt Repair- $89,570 2) Fencing - 4,770 3) Youth Services Area - $33,920 Beneficiaries 0-30% AMI 73% 4,200 beneficiaries 31-50% AMI 10% 51-80% AMI 12% 80+% AMI 5% Project Coordination with None noted for this project Existing Services & other Services Available in the Community Timeliness and Capacity to Applicant is in good standing and has successfully completed previous CDBG/HOME Successfully Complete the public facilities projects. Staff has no current concerns about capacity to successfully Proposed Project administer this project. Staff Concerns/Notes 1) All work will be subject to federal labor provisions (Davis Bacon — prevailing wages). 2) Must comply with federal procurement standards (competitive bids) for the proposed work. 3) Section 3 may require opportunities for training and employment for LMI persons if a contractor performs construction duties which total $100,000 in HUD funds. S:\DEV\CDBGHOME\FY20`Applicatlons\FY20 Staff reports FINAL.xlsx General Information and Project Need Community Development Block Grant (CDBG) and/or HOME Investment Partnership (HOME) programs provide funding to aid in the development of viable urban communities and in the provision of safe and decent affordable housing. Applications are due Tuesday, January 18, 2019 at noon. This year, $625,000 are estimated to be available through this competitive process. Please reviewthe FY20 CDBG/HOME Application Guide for more information about eligible activities. Please submit one project proposal per application. Questions can be directed to kirk-lehmann@iowa-city.org or contact Neighborhood Services at 319-356-5230. Additional assistance, and hard copy applications, are available upon request Project Information M ■ ■ Project name * DVIP Shelter Repair Project Address* Street Address Shelter location is confidential and can be provided to the committee outside of public documents. Address Line 2 1105 S. Gilbert Ct. suite 300 City State / Province / I Lgion Iowa City IA Fbstal / Zip Qxle CounUy 52240 United States Type of Project(?) ❑ Rental Housing ❑ Owner Housing © Public Facility ❑ Other Type of Activity(?) ❑ Acquisition ❑ New Construction © Rehabilitation ❑ Direct Assistance ❑ Other Applicants Applicant Name * Domestic Violence Intervention Program Applicant Address* Street Address 1105 S Gilbert Ct. Suite 300 Address Line 2 City Iowa City Fbstal / Zip Oxle 52240 Contact Person, Title* Kristie Fortmann-Doser, Executive Director Phone Number* 3193569863 Email* kristie@dvipiowa.org DUNS Number(?) 614880438 State / Province / I Lgion IA Counfiy United States DUNS # Verification*(?) Go to htto1ifedgmAnb.ccrowebformto lookup a create a DINS nuni6 . Provide a copy of the email you readve with your confirmed DINS nuni6 Dun & Bradstreet Business Information Report_ DOMESTIC VIOLENCE INTERVENTION 72.03 KB PROGRAM, INC.pdf CAGE Code (?) Obtain by registering on SAMgov 495D111056 SAM.gov Registration*(?) All subreapienls crust register on SAMgov before a legally binding agreement can he signed. Attach your SAMgov Entity F4egistraton Sunorary as evidence that this has been completed. View Details - Entity Overview_ System for Award Ma nageme nt.pdf 69.8KB General Information Type of Lead Applicant* O Community Housing Development Organization O Private non-profit organization O Private for -profit, individual or partnership applicant O Public Organization W-9 Form*(?) (F4equest forTaxpayer ID# & Cerlificaton) DVIP W-9.pdf 322.15KB Organizational Status * (?) Go to https://sm.ima.gm/smmhtbusiness to lookup the organizafion applying fa funds. Provide a copy of the Business Entity Sonoran, screen. DVIP Business Entity Summary.pdf 100.48KB Amount of Funds Requested* $ 120,000.00 Did you attend an Applicant Workshop?* 0 Yes 0 No Provide a few lines describing the proposed project* DVIP is requesting funding to support the continued use of our emergency shelter for adult and youth victims of domestic violence. Specifically, we wish to rehabilitate the parking area and youth services area, and add fencing to secure our shelter property. Please specifythe one or two most applicable priority need(s) this application addresses, as shown in the 2016-2020 CITY STEPS Plan. Explain how this project will meet this/those need(s).* Public Facility Improvements High Priority - Domestic Violence Victims Public Services High Priority - Domestic Violence Victims Budget and Resources Type of Funding Requested* Financing tears will be based on project feasibility and the ability to repay. Terms approved by City Council may be different than what is requested. Grant Requested Grant Terms ................ Principal Amount Affordability Period M $ 120,000.00 12 Source of Funds Rease enter below the types of funding and arrounls requested fa the proposed project, including if the funding is conTifted. If not a loan, leave loan tears blank Select the blank space for possible sources of income, a enter your own. Public Resources Funding Source and Type (?) Amount Interest rate Term(?) Committed Iowa City HOME/CDBG $ 120000.00 No Total Public Funds $ 120,000.00 For uncommitted funds, please indicate when the applicant will applyfor funds Private Resources Funding Source & Type (?) Amount Applicant Fundraising $ 7,510.00 Total Private Funds $ 7,510.00 Total Project Funding $ 127,510.00 Use of Fund Interestrate Term(?) Committed No Please enter below the uses of funding and amounts requested for the proposed project, including whether formal cost estimates were received. Select the blank space for possible use of funds, or enter your own." Type (?) Amount Formal Cost Name of Entity Estimate providing cost estimate Construction / Rehabilitation $ 127,510.00 Yes Done Done Services Total Use of Funds Amount $ 127,510.00 Scope of work M Attach any docurrentaton used fa cost esUrretes Estimate_2245_from_Done_Done_Services _LC.pdf 142KB Other Considerations - Number of households or persons served* 4,200 Total cost per household or person served $ 30.36 What percentage of the proposed budget will be made up of private funds?* 5.89 Dollars Leveraged Per City Dollar Spent $ 0.06 Describe any community partnerships or volunteers that will contribute to the project. This will not be applicable to this project. Describe any identityof interest (101) relationships with the applicant and/or project owner, i.e. General Partner has a financial interest in the construction company, etc.* No 101 Included below are pictures of the degraded asphalt and repair needs: Done Done Services, L.C. 5001 J St SW, Suite 2 Cedar Rapids, IA 52404-4921 319-366-4700 suppon@donedoneservices.com www.donedoneservices.com Domestic Violence Intervention Program 1105 South Gilbert Ct Iowa City, IA 52240 US ESTIMATE 2245 12/26/2018 Estimate DONE C& «� services . �" Facilities Maintenance Contractor SHIP TO Domestic Violence Intervention Program CODE P.O. NO. C, EC, MOW 27, 820, 3199815578 BE QTY RATE Work to be performed at: Domestic Violence Intervention Program Contact: Ryan Holst 319-981-5578 Service Tech Labor and Material to install chain link fencing Scope of work: - Install 185' of 6' high, 9 gauge chain link fence using 2 1/2" diameter line posts. Note: Fence will run 100' along east side and 85' along south side of large lot to control traffic using as a short cut. Remodeling Labor and Material to replace window and build divider with shelving in playroom: Scope of work: - Remove casement window. - Replace with twin slider style. - Construct divider wall, with shelving in lower portion of wall. Top portion of divider wall will be open, shelving on lower portion with walk-through in center of divider. - Finish in drywall. Mud, tape texture to match existing as close as possible. - Demo existing vanity/Sink. - Install 4' of upper and lower cabinets. Install larger sink in base unit. - Paint walls and ceiling (in play room area). 12,500.00 Service Tech Labor and Material to replace flooring in lower level: Scope of work: - Remove existing VCT the in lower level. (6 offices, computer room, Directors office, playroom and hallway areas). - Install LVT flooring in removed areas. Approximately 2750 s/f. Note: The above does not include the relocating of shelving, desks, equipment, etc. This would be an additional cost. Service Tech Labor and Material to asphalt 2 parking lots Scope of work: - Install 2 " of asphalt overlay on large lot (Approx 26,865 s/f) $62,500 - Install 2 " of asphalt overlay on lot adjacent to building (Approx 4,850 s/f) $12,000 Note: Areas will be swept and blown clean of debris, asphalt tack sprayed on surface, Hot Mix Asphalt installed, level coarse and compact, install final lift Hot Mix Asphalt for a 2" thick mat. NOTE: THE ABOVE PRICING IS BEING PROVIDED FOR BUDGETARY PURPOSES. AS WE MOVE FORWARD WITH SPECIFIC PROJECTS THE PRICING WILL BE CONFIRMED AND ADJUSTED ACCORDINGLY +/- DEPENDENT ON SPECIFIC ITEMS/MATERIALS SELECTED. Terms are 50% down with signed estimate approval. Balance will be due at the time of oroiect completion. 2.0% charge will be applied on accounts for each billing cycle account is delinquent SUBTOTAL TAX TOTAL Accepted By Accepted Date e �� 121,000.00 6,510.00 $127,510.00 Feasibility and Community Impact Outline the proposed timetable and expected impact for the project. For the timetable, include when requested funding will be committed, project milestones such as rezoning or construction, and when funds will be spent. If applicant plans to apply for funds not committed, include the anticipated date for application and when funds will be awarded. For expected impact, break out beneficiaries by income group. If funded, both the schedule and income breakdown will be used for any project agreement. Project Benefit Narrative Describe project benefits and requirements Such as beneficiary eligibility requirenuds, targeted beneficiaries, etc. The Domestic Violence Intervention Program provides safe shelter; crisis intervention services, advocacy, counseling, case management and support group services that help keep victims of domestic violence safe from immediate danger and on -going emotional harm. These services are unduplicated in our eight county service area (Johnson, Washington, Iowa, Des Moines, Henry, Lee, Van Buren and Cedar Counties). While residents/clients seek services from DVIP, it is our goal for clients to reach the highest level of safety and self- sufficiency possible. Maintaining an emergency shelter with appropriate facilities, contributes to service provision and our client's efforts to increase self-sufficiency. Time Table Date Description of Activity 7/1/2019 Beginning of City Fiscal Year and Project Start Date 8/30/2019 Rebid of Project, contract and city meeting with CDBG staff. Ongoing: solicitations for donations accompanying the project. 9/27/2019 Final bids Accepted 10/1/2019 Repair of Asphalt, and installation of fencing 10/15/2019 Rehabilitation of Youth Area 12/13/2019 Project Complete To promote the efficient use of public funds, describe how the project will continue to provide public benefits through and beyond the required compliance period. Describe how the project will provide public benefits below rates in the existing market A critical aspect of our safe shelter and crisis intervention support services is providing a safe environment and appropriate facilities for adults and youth while they move beyond initial stages of crisis and homelessness to permanent housing. Without appropriate upgrades in building and maintenance, client's safety and ongoing support would be compromised. The shelter building was built in 1993 and has provided emergency safety to more than 8600 adults and youth who were escaping violence in their home. One tactic of battering is to control access to resources, so for many of the families we have supported, they come to us with little or nothing. By providing safe shelter, we provide an environment where victims can heal and evaluate their goals. Through our supportive services and partnerships victims can gain employment, housing, financial literacy skills and the resources to begin a life independent of an abusive partner. Our project request speaks directly to maintaining our existing shelter building. Over time the building has required repair, replacement and general up -keep. In what manner or form will the project proceed if it is awarded less than full funding? If there are several components, how will they be prioritized? Priority 1 - Asphalt repair, bluntly it is a significant expense, and patching is no longer sufficient. Priority 2 - Fencing for the shelter adjacent parking lot to secure our perimeter and diminish car and traffic through our private lot. This is a safety issue for victims staying in our shelter. Priority 3 - Replace flooring, a sink cabinet, storage and windows in our youth play area. All of these features are original to the building of the shelter in 1993. Income Breakdown - Please indicate the population to be served by the proposed program according to the linked income categories. If requesting money for a specific administrative expense (like a staff member's salary), indicate the population served by your entire agency. (Please Note: If funded, this information voII be used as income targeting for your Agreement). Median Income Number of Persons 0 - 30% 3,086 31 - 50% 420 51 - 60% 294 61 - 80% 200 Over80% 200 Total Persons/Households 4,200 Percent LM I 95.24 Please note the basis for these estimates* This is based on statistical percentages for shelter residents over the past five years. Capacity and Applicant History Please list amount of CDBG and/or HOME funds received Wthin the lad four Qtyfsal years and the status of the pmjec[(s) undertalxn. CDBG and/or HOME funds received Fiscal Year Funds Received Budgeted Amount Date Project Amount Expended Completed July 1, 2018 to June 30, 2019 $ 40,000.00 $ 2,932.06 6/30/2019 July 1, 2017 to June 30, 2018 $ 4,570.00 $ 4,570.00 6/30/2018 July 1, 2016 to June 30, 2017 $ 6,300.00 $ 6,300.00 6/30/2017 July 1, 2015 to June 30, 2016 $ 171,656.00 $ 171,656.00 6/30/2016 Please describe your organization's structure, officers, and staff.* DVIP is a non-profit organization that began services in 1979. The organizational structure includes a 12-15 member Board of Directors, Executive Director, Supervisory staff and Direct Services staff. The DVIP Board of Directors provides mission centered policy development and strategic planning, guided by our agency's DVIP By -Laws and Policy Handbooks. The Board of Directors is comprised of two Co -Chairs, Treasurer, Recorder and Members that further the mission, fiscal management, and strategic plan of DVIP. The Executive Director is responsible for the fulfillment of the agency strategic plan and agency management, and works with a 5 member Supervisory Team, 35 paid staff and approximately 150 volunteers. Please describe the education and experience of key staff who will implement the project (excluding volunteers, board members, and consultants). If consultants are utilized, identify what role theywill play in the project.* Kristie Fortmann-Doser, the Executive Director, has worked with victims of domestic violence and sexual assault for more than 30 years, coming to the Iowa City DVIP in 1993 and hired as Executive Director in 2004. Ms. Fortmann-Doser has fourteen years' experience writing, implementing, administering and completing CDBG projects and has supervised three major projects, the most expensive more than $225,000. In addition, Ms. Fortmann-Doser has administered state and federal grant awards as a primary recipient, with federal funds exceeding $800,000 annually. Fortmann-Doser has a BA in Gender Studies from the University of Iowa and is a Certified Domestic Abuse Advocate in Iowa. Please summarize your organization's portfolio, including how many units you own and/or manage, how many homes you have built/rehabilitated/sold, and what projects are underway.* DVIP owns a sixteen -bedroom emergency shelter whose mortgage was retired in 2001. In addition, we manage a 6 unit transitional housing building in Burlington, Iowa. DVIP has completed the following rehabilitation projects in the past 8 years: • Fy16 Converting 2 dorm style bathrooms into 6 private bathrooms in our emergency shelter - $125,247. • FY13 Replacing flooring and installing a commercial grade kitchen in our emergency shelter - $215,095 • FY11 Replaced Handicap Accessibility Ramp, surrounding 3 sides of shelter— $86,764 • FY10 Air conditioner Replacement, shelter - $12,256 Evidence of Fiscal Capacity(?) Audit Summary Issued Financial Statement - Short.pdf 175.98KB Evidence of Organizational Capacity(?) Upto four pages of additional inforrretion about the capacity of the organization may be included. Examples of possible evidence may be resumes of Icy staff, additional descriptions of organizational activities, a other relevant infonrefion. Asphalt Photos.docx 2.06MB Is the applicant (including partners, co -applicants, etc.) currently in compliance with all federal, state and local laws, rules and regulations, including any CDBG and/or HOME funded projects?* 6 Yes O No O Currently in litigation DOMESTIC VIOLENCE INTERVENTION PROGRAM FINANCIAL STATEMENTS YEARS ENDED JUNE 30, 2018 AND 2017 DOMESTIC VIOLENCE INTERVENTION PROGRAM TABLE OF CONTENTS YEARS ENDED JUNE 30, 2018 AND 2017 INDEPENDENT AUDITORS' REPORT FINANCIAL STATEMENTS STATEMENTS OF FINANCIAL POSITION STATEMENTS OF ACTIVITIES STATEMENTS OF FUNCTIONAL EXPENSES STATEMENTS OF CASH FLOWS NOTES TO FINANCIAL STATEMENTS 4 CliftonLarsonAllen LLP CLAconnect.com Clifton LarsonAllen INDEPENDENT AUDITORS' REPORT Board of Directors Domestic Violence Intervention Program Iowa City, Iowa Report on the Financial Statements We have audited the accompanying financial statements of Domestic Violence Intervention Program (the Agency), which comprise the statements of financial position as of June 30, 2018 and 2017, and the related statements of activities, functional expenses, and cash flows for the years then ended, and the related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors' Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. A me � Neia xia International Board of Directors Domestic Violence Intervention Program Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Domestic Violence Intervention Program as of June 30, 2018 and 2017, and the change in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. i Clifton LarsonAllen LLP Cedar Rapids, Iowa December 18. 2018 (2) DOMESTIC VIOLENCE INTERVENTION PROGRAM STATEMENTS OF FINANCIAL POSITION JUNE 30, 2018 AND 2017 ASSETS CURRENT ASSETS Cash Grants Receivable Contributions Receivable Prepaid Expenses Total Current Assets BENEFICIAL INTEREST IN ASSETS HELD BY COMMUNITY FOUNDATION PROPERTY AND EQUIPMENT Land Building and Improvements Equipment Vehicles Total Less: Accumulated Depreciation Net Property and Equipment Total Assets LIABILITIES AND NET ASSETS CURRENT LIABILITIES 114811.1 $ 58,987 225,152 145,000 8,166 437,305 6,206 f• GIN $ 58,792 226,210 68,000 831 353,833 300,146 300,146 1,117,717 1,117,717 47,034 46,168 37,627 38,986 1,502,524 1,503,017 (559,909) (497,157) 942,615 1,005,860 $ 1,386,126 $ 1,364,693 Accounts Payable $ 10,079 $ 18,689 Accrued Expenses 130,854 119,920 Line of Credit 166,078 250,000 Current Maturities of Note Payable 6,116 5,918 Total Current Liabilities 313,127 394,527 LONG-TERM NOTE PAYABLE 191,162 197,296 Total Liabilities 504,289 591,823 NET ASSETS Unrestricted 736,837 704,870 Temporarily Restricted 145,000 68,000 Total Net Assets 881,837 772,870 Total Liabilities and Net Assets $ 1,386,126 $ 1,364,693 See accompanying Notes to Financial Statements. (3) DOMESTIC VIOLENCE INTERVENTION PROGRAM STATEMENTS OF ACTIVITIES YEARS ENDED JUNE 30, 2018 AND 2017 SUPPORT AND REVENUE Contributions United Way Allocation City and County Funding Federal and State Grants Interest and Dividends In -Kind Contributions Gain (Loss) on Disposal of Property and Equipment Miscellaneous Income Fundraisers, Net of Expenses of $8,461 in 2018 and $3,222 in 2017 Change in Beneficial Interest in Assets Held by Community Foundation Net Assets Released from Restrictions, Satisfaction of Purpose and Time Restrictions Total Support and Revenue EXPENSES Program Services Supporting Activities: General and Management Fundraising Total Expenses 103:F-All0 w =110101=1r_1*11 =1&I Net Assets - Beginning of Year NET ASSETS - END OF YEAR 2018 Temporarily Unrestricted Restricted Total $ 261,657 $ 75,000 14,541 70,000 127,443 - 1,166, 547 - 24 - 300 - 674 - 10,516 - 17,067 1,206 68,000 (68,000) 1,667,975 77,000 1,448,140 119,883 67,985 1,636,008 31,967 $ 336,657 84,541 127,443 1,166, 547 24 300 674 10,516 17,067 1,206 1,744,975 1,448,140 119,883 67,985 1,636,008 77,000 108,967 704,870 68,000 772,870 $ 736,837 $ 145.000 $ 881.837 See accompanying Notes to Financial Statements. (4) DOMESTIC VIOLENCE INTERVENTION PROGRAM STATEMENTS OF ACTIVITIES (CONTINUED) YEARS ENDED JUNE 30, 2018 AND 2017 2017 Temporarily Unrestricted Restricted Total $ 291,607 $ - $ 291,607 15,251 68,000 83,251 103,700 - 103,700 1,149,971 - 1,149,971 31 - 31 7,729 - 7,729 (462) - (462) 12,859 - 12,859 18,427 18,427 64,531 (64,531) - 1,663,644 3,469 1,667,113 1,427,323 144,763 60,934 1,633,020 30,624 3,469 1,427,323 144,763 60,934 1,633,020 34,093 674,246 64,531 738,777 $ 704.870 $ 68.000 $ 772.870 See accompanying Notes to Financial Statements. (5) DOMESTIC VIOLENCE INTERVENTION PROGRAM STATEMENT OF FUNCTIONAL EXPENSES YEAR ENDED JUNE 30, 2018 2018 Supporting Activities Program General and Total Services Management Fundraising Expenses Salaries $ 861,103 $ 74,121 $ 47,000 $ 982,224 Employee Benefits 146,407 9,218 8,098 163,723 Contract Labor 2,066 - - 2,066 Insurance 9,454 3,360 - 12,814 Professional Expense 2,025 15,843 300 18,168 Building and Equipment Repairs 61,630 - - 61,630 Resident Assistance 126,511 244 - 126,755 Occupancy 43,415 - 448 43,863 Telephone 37,001 1,055 848 38,904 Office Supplies and Postage 7,723 2,424 8,932 19,079 Travel 34,534 - 28 34,562 Dues and Memberships 12,250 85 1,091 13,426 Program Supplies 15,987 - - 15,987 Staff Development 11,677 501 234 12,412 Service Charges 1,401 1,241 1,006 3,648 Interest Expense 6,589 11,791 - 18,380 Depreciation 68,367 - 68,367 Total Expenses $ 1,448,140 $ 119,883 $ 67,985 $ 1,636,008 See accompanying Notes to Financial Statements. (6) DOMESTIC VIOLENCE INTERVENTION PROGRAM STATEMENT OF FUNCTIONAL EXPENSES YEAR ENDED JUNE 30, 2017 2017 Supporting Activities Program General and Total Services Management Fundraising Expenses Salaries $ 780,750 $ 94,374 $ 35,146 $ 910,270 Employee Benefits 141,583 18,521 7,583 167,687 Contract Labor 15,658 - 2,549 18,207 Insurance 26,318 3,188 - 29,506 Professional Expense 532 13,195 - 13,727 Building and Equipment Repairs 46,230 143 - 46,373 Resident Assistance 153,943 - - 153,943 Occupancy 57,318 - - 57,318 Telephone 34,043 487 - 34,530 Office Supplies and Postage 22,224 2,844 12,473 37,541 Travel 36,129 42 116 36,287 Dues and Memberships 1,030 1,607 2,982 5,619 Program Supplies 21,547 - - 21,547 Staff Development 11,563 - 48 11,611 Service Charges 2,440 958 37 3,435 Interest Expense 8,822 9,404 - 18,226 Depreciation 67,193 - 67,193 Total Expenses $ 1,427,323 $ 144,763 $ 60,934 $ 1,633,020 See accompanying Notes to Financial Statements. (7) DOMESTIC VIOLENCE INTERVENTION PROGRAM STATEMENTS OF CASH FLOWS YEARS ENDED JUNE 30, 2018 AND 2017 CASH FLOWS FROM OPERATING ACTIVITIES Change in Net Assets Adjustments to Reconcile Change in Net Assets to Net Cash Provided by Operating Activities: Depreciation Donated Property and Equipment (Gain) Loss on Sale of Property and Equipment Change in Beneficial Interest in Assets Held by Community Foundation Effects of Changes in Operating Assets and Liabilities: Grants Receivable Contributions Receivable Prepaid Expenses Accounts Payable Accrued Expenses Net Cash Provided by Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from Sale of Property and Equipment Purchase of Property and Equipment Net Cash Used by Investing Activities CASH FLOWS FROM FINANCING ACTIVITIES Payments on Note Payable Proceeds from Line of Credit Repayments of Line of Credit Net Cash Used by Financing Activities 101=1d11103:3=F_I&I =111Ni_F]: Cash - Beginning of Year CASH - END OF YEAR SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Cash Paid for Interest Expense AND FINANCING ACTIVITIES Donated Property and Equipment 114811.3 108,967 68,367 (674) (1,206) 1,058 (77, 000) (7,335) (8,610) 10,934 94,501 1,000 (5,448) (4,448) K8110 34,093 67,193 (7,729) 462 187,475 (3,469) (304) (153,129) (19,223) 105,369 (5,936) (5,745) 382,024 (83,922) (441,437) (89,858) (65,158) 195 40,211 58,792 18,581 $ 58,987 $ 58,792 $ 18,380 $ 18,225 $ $ 7,729 See accompanying Notes to Financial Statements. (8) DOMESTIC VIOLENCE INTERVENTION PROGRAM NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018 AND 2017 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Activities The Domestic Violence Intervention Program (the Agency) was created to provide shelter and support services for families who are victims of domestic violence. The Agency serves Cedar, Des Moines, Henry, Iowa, Johnson, Lee, Van Buren, and Washington counties. Significant accounting policies followed by the Agency are presented below. Use of Estimates in Preparing Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenses, gains, losses, and other changes in net assets during the reporting period. Actual results could differ from those estimates. Property and Equipment Property and equipment which were purchased are stated at their original cost, and donated property and equipment are recorded at fair market value at the date of receipt. Expenditures for property and equipment in excess of $2,000 are capitalized. All property and equipment are depreciated over their estimated useful lives ranging from 5 years to 40 years using the straight-line method of depreciation. Net Assets The Agency presents its financial statements in accordance with the Contributions Received and Presentation of Financial Statements Topics in the FASB Codification. The Codification requires the Agency to distinguish between contributions received for each net asset category in accordance with the donor -imposed restrictions. The codification provides standards for external reporting for nonprofit organizations and requires that resources be classified for accounting and reporting purposes into three net asset categories according to externally (donor) imposed restrictions. A description of the three net asset categories is as follows: Unrestricted — This category of net assets includes unrestricted contributions and expenses associated with the principal activity of the Agency. Temporarily Restricted — This category includes contributed net assets for which donor - imposed time and/or purpose restrictions have not been met. Donor -restricted contributions whose restrictions are met in the same reporting period are reported as unrestricted contributions. Permanently Restricted — This category of net assets includes gifts, trusts and pledges that require, by donor restriction, the corpus of the gift to be invested in perpetuity and only the income be made available in accordance with donor restrictions. The Agency had no permanently restricted net assets as of June 30, 2018 and 2017. i9) DOMESTIC VIOLENCE INTERVENTION PROGRAM NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018 AND 2017 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Grants Receivable Substantially all of the Agency's grants receivable is third party reimbursements due from governmental units. Grants receivable are carried at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts. Management determines the allowance for doubtful accounts by identifying troubled accounts and by using historical experience applied to an aging of accounts. Grants receivable are written off when deemed uncollectible. Recoveries of grants receivable previously written off are recorded when received. No allowance and provision for doubtful accounts has been made for the years ended June 30, 2018 and 2017. Revenue Recognition Fees for services are recorded when the service is provided. All contributions are considered to be available for unrestricted use unless specifically restricted by the donor. Amounts received, which are designated for future periods or restricted by the donor for specific purposes, are reported as temporarily restricted or permanently restricted support. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statements of activities as net assets released from restrictions. Unconditional promises to give are recorded as receivables and as support when received. All contributions receivable at June 30, 2018 and 2017 are due within one year. Federal, state, city, and county grants and funding are recognized as revenue in the period the services are performed. A number of volunteers have made significant contributions of their time in the furtherance of the Agency's programs. The value of this contributed time is not reflected in the accompanying statements of activities because the donated services do not create or enhance nonfinancial assets, require specialized skills, or would typically need to be purchased if not provided by donation. Beneficial Interest in Assets Held by Community Foundation Certain funds are held by the Community Foundation of Johnson County (Foundation), in permanent designated agency endowment funds, for the benefit of the Agency. The transactions with the Foundation are deemed to be reciprocal and, therefore, the value of the funds held by the Foundation is recognized as an asset (beneficial interest in assets held by community foundation) by the Agency. Control over the investment or reinvestment of the funds is exercised exclusively by the Foundation. The designated fund is available at any time for distribution to the Agency. The fund balance at June 30, 2018 and 2017 was $6,206 and $5,000, respectively. During the years ended June 30, 2018 and 2017, no funds were distributed to the Agency. DOMESTIC VIOLENCE INTERVENTION PROGRAM NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018 AND 2017 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Functional Expenses The costs of providing various program and supporting activities have been summarized on a functional basis in the statements of functional expenses. Accordingly, certain costs have been allocated among the programs and supporting activities benefited either based on estimate time spent in the activity or are directly identifiable to a certain functional category. Income Taxes The Agency is exempt from income taxes under provisions of Section 501(c)(3) of the Internal Revenue Code. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. The Agency had no uncertain tax positions that are required to be recorded as of June 30, 2018 or 2017. NOTE 2 RESTRICTIONS ON NET ASSETS Temporarily restricted net assets are available for the following purposes as of June 30: Future Operations (United Way) Future Operations (Other) 2018 $ 70,000 75,000 $ 145, 000 2017 $ 68,000 $ 68,000 During the years ended June 30, net assets were released from donor restrictions by incurring expenses satisfying the restricted purpose or by the occurrence or passage of time. Net assets were released from the following restrictions: Future Operations (United Way) 2018 2017 $ 68,000 $ 64.531 DOMESTIC VIOLENCE INTERVENTION PROGRAM NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018 AND 2017 NOTE 3 SIGNIFICANT FUNDING SOURCES During the years ended June 30, the Agency received revenue and support from the following major sources, defined as greater than 10% of total revenue and support. 2018 2017 Crime Victim Assistance Division of Iowa Department of Justice $ 890,697 $ 895,498 Percent of Revenue and Support 51 % 54% Grants Receivable at Year -End $ 178,622 $ 203,201 NOTE 4 EMPLOYEE BENEFIT PLAN The Agency offers a SIMPLE IRA plan for employees who earn at least $5,000 in compensation during any two preceding years. The employer matches contributions up to 3% of salary. Retirement plan expense was $8,940 and $9,936 for the years ended June 30, 2018 and 2017, respectively. NOTE 5 OPERATING LEASE AND RENTAL EXPENSE The Agency leases software, office space, and vehicles under various cancellable and noncancellable agreements that require various minimum annual rentals and expire at various dates through October 2021. Year Ending June 30, Amount 2019 $ 18,888 2020 1,912 2021 1,912 2022 637 Total $ 23,349 Total rent expense for the years ended June 30, 2018 and 2017 was $43,960 and $55,907, respectively. NOTE 6 RELATED PARTY TRANSACTIONS The Agency receives certain revenue or support from members of the board of directors. The Agency also made payments totaling $7,062 and $11,678 for information technology services to a company owned by a board member. The amount owed and outstanding to that company was $-0- and $369 at June 30, 2018 and 2017. DOMESTIC VIOLENCE INTERVENTION PROGRAM NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018 AND 2017 NOTE 7 CONTINGENCY In consideration of Community Development Block Grant (CDBG) funds received from the City of Iowa City, liens totaling $340,343 as of June 30, 2018 and 2017, have been established in favor of the City as lien holder upon land, buildings, personal property, and if applicable, revenues and income from this property. Repayment of grant funds received will not be required and the liens will be released if the Agency continues to comply with the terms of the grant agreements, which include continuing to own the existing property and continuing to operate as a domestic violence shelter. The liens are scheduled to expire at various times through June 2032. The Agency plans to utilize the properties for their intended purpose through the expiration date of the liens, therefore, no liability has been recorded by the Agency. NOTE 8 LINE OF CREDIT The Agency has a $200,000 revolving line of credit which expires February 26, 2019. Monthly interest only payments are due bearing a variable rate of prime plus 1.0% (5.89% as of June 30, 2018). Any outstanding principal plus all accrued unpaid interest at February 26, 2019 is due in one final payment. This line of credit is collateralized by substantially all of the Agency's assets. As of June 30, 2018, the outstanding principal and accrued interest totals $166,078. NOTE 9 NOTE PAYABLE The Agency has a note payable due September 25, 2020, requiring monthly payments of $1,044, including interest at a rate of 3.25% per annum, and a final balloon payment at maturity for the outstanding balance. The note is secured by real property located at XXXXXXXXXXXXXXXXXXX, Iowa City, Iowa. The outstanding balance of the note payable at June 30, 2018 is $197,278. Cash paid for interest totaled $6,607 for the year ended June 30, 2018. Future maturities of the note payable as of June 30, 2018 are as follows: Year Ending June 30, Amount 2019 $ 6,116 2020 6,304 2021 184,858 Total $ 197,278 This agreement contains various restrictive covenants, including a debt service coverage ratio. Management believes they are in compliance with all covenants as of June 30, 2018. DOMESTIC VIOLENCE INTERVENTION PROGRAM NOTES TO FINANCIAL STATEMENTS JUNE 30, 2018 AND 2017 NOTE 10 SUBSEQUENT EVENTS Management evaluated subsequent events through December 18, 2018, the date the financial statements were available to be issued. Events or transactions occurring after June 30, 2018, but prior to December 18, 2018, that provided additional evidence about conditions that existed at June 30, 2018, have been recognized in the financial statements for the year ended June 30, 2018. Events or transactions that provided evidence about conditions that did not exist at June 30, 2018, but arose before the financial statements were available to be issued, have not been recognized in the financial statements for the year ended June 30, 2018. Project .Academy Project Address 2929 E. Court Street Activity Type Public Facility (PF) CITY STEPS Priority Public Facility Improvements - Families with Children CITY STEPS Goal Improve and maintain public facilities Amount Requested $51,968 Project Description Renovate child care facility predominantly serving low income children. Specifically, replacing rusted chipping restroom partitions, with rust proof plastic partitions, replace bathroom urinal, replace floor tile and level the lower level floor, construct a wall shelf in the infant class room, replace and reconfigure the boiler system, replace lower level windows. Repayment Terms Conditional occupancy loan (forgiven if follows requirements) Compliance Period 5 years proposed Property Taxes Tax exempt %CDBG/HOME Funded 96% Project Budget Discussion Total renovation budget is approximately $54,068, with matching funds coming from the New Creations Church and Burianek Trust. Prioritized list of improvements if not awarded full funding: 1) Bath Partitions - $4,683 2) Boiler Install - $10,000 3) Floor Tile Install - $14,878 4) Wall Shelf - $1,006 5 Windows Install - 823,500 Beneficiaries 0-30% AMI 17% 24 beneficiaries 80+% AMI 83% Project Coordination with New Creations Church works with the childcare and has contributed funding. First Existing Services & other Presbyterian Church has also partnered with Little Creations Academy since May of Services Available in the 2016. Volunteers are expected to help cut labor costs, and some materials may be Community donated. Timeliness and Capacity to Previous CDBG/HOME projects have been delayed and have required amended Successfully Complete the agreements due to underestimated costs. Staff has concerns about capacity while FY18 Proposed Project project is outstanding. Staff Concerns/Notes 1) All work will be subject to federal labor provisions (Davis Bacon — prevailing wages) 2) Must comply with federal procurement standards (competitive bids) for the proposed work. 3) Staff is working with applicant to determine what improvements are eligible at this facility due to shared use with church. 4) Project should use a single general contractor, as noted in application, to assist with timely expenditure of funds. Care should also be taken to ensure accuracy of budget. 5) Project ineligible as stated in application; beneficiaries listed as majority over 80%AMI. However, June 30, 2018 monitoring suggests all beneficiaries are below 80%AMI 6) On -site affordable childcare must be viable for five years or the City is at risk of repaying funds to HUD with non-federal funds. S:\DEV\CDBGHOME\FY20`Applications\FY20 Staff reports FINAL.xlsx General Information and Project Need Ci Select Language I Community Development Block Grant (CDBG) and/or HOME Investment Partnership (HOME) programs provide funding to aid in the development of viable urban communities and in the provision of safe and decent affordable housing. Applications are due Tuesday, January 18, 2019 at noon. This year, $625,000 are estimated to be available through this competitive process. Please reviewthe FY20 CDBG/HOME Application Guide for more information about eligible activities. Please submit one project proposal per application. Questions can be directed to kirk-lehmann@iowa-city.org or contact Neighborhood Services at 319-356-5230. Additional assistance, and hard copy applications, are available upon request Project Information ' . Project name * LCA Renovation 3 Project Address* Street Address 2929 E Court St Address Line 2 City Iowa City Fbstal / Zip mde 52245 Type of Project(?) ❑ Rental Housing ❑ Owner Housing © Public Facility ❑ Other Type of Activity(?) ❑ Acquisition ❑ New Construction © Rehabilitation ❑ Direct Assistance ❑ Other Applicants Applicant Name * Little Creations Academy Applicant Address* State / Province / fiagion Iowa CcunUy United States Street Address 2929 E Court St Address Line 2 City Iowa City Fbstal / Zip Oxte 52245 Contact Person, Title* Anthony Smith Phone Number* 3196544624 Email* pastor@ncichurch.com DUNS Number(?) CAGE Code M Obtain by registering on SAMgov General Information Type of Lead Applicant* O Community Housing Development Organization O Private non-profit organization 6 Private for -profit, individual or partnership applicant O Public Organization W-9 Form*(?) (F4equest for Taxpayer ID# & Cerlificaton) W9 LCA 2019. pdf Organizational Status * (?) State / Province / Flcgion Iowa CounUy United States 999.76KB Go to https://sm.ima.gm/smmhtbusiness to lookup the organizaton applying for funds. Provide a copy of the Business Entity Summary screen. Little Creations Academy Busisness Summary 2019.jpg 86.86KB Amount of Funds Requested* $ 51,967.76 Did you attend an Applicant Workshop?* 6 Yes f No Provide a few lines describing the proposed project* The purpose of the project is to renovate the facility to ensure the safety of the children we serve. We are replacing rusted chipping restroom partitions, with rust proof plastic partitions, replace bathroom urinal, replace floor tile and level the lower level floor, construct a wall shelf in the infant class room, replace and reconfigure the boiler system, replace lower level windows. Please specifythe one or two most applicable priority need(s) this application addresses, as shown in the 2016-2020 CITY STEPS Plan. Explain how this project will meet this/those need(s).* Little Creations Academy provides child care service to low income families. Our services extend to the Domestic Violence Center, Shelter house, and Promise Jobs as well the general public. Our center provide the disenfranchised the opportunity to prosper. All of our staff are paid at least $10.10 per hr. Budget and Resources Type of Funding Requested* Financing tears will be based on project feasibility and the ability to repay. Tears approved by City Council may be different than what is requested. Grant Requested Grant Terms ................ Principal Amount Affordability Period M $ 54,067.76 Source of Funds Rease enter belov the types of funding and arreats requested fa the proposed project, including if the funding is conTifted. If not a loan, leave loan tears blank Select the blank space for possible sources of income, a enter your own. Public Resources .................................... .... Funding Source and Type (?) Amount New Creation Intl Church $ 1100.00 Iowa City HOME/CDBG $ 51967.76 Total Public Funds $ 53,067.76 Interestrate Term(?) Committed Yes US For uncommitted funds, please indicate when the applicant will applyfor funds January 30, 2019 Private Resources .......................................................... Funding Source & Type M Amount Burianek Trust $ 1,000.00 Total Private Funds $ 1,000.00 Total Project Funding $ 54,067.76 Evidence of Funding Commitments*(? Interestrate Term(?) Committed No Up to four pages of additional infanalion about the capacity of the organization may be included. Examples of rmy include graphics supporting the previous questions, resumes of key staff, additional descriptions of organizational activities, a other relevant information. Class Room Curriculum Requirements.xlsx 13.19KB Pay Period Example- LCA.xlsx 18.51 KB Use of Fund Please enter below the uses of funding and amounts requested for the proposed project, including whether formal cost estimates were received. Select the blank space for possible use of funds, or enter your own." Type (?) Amount Formal Cost Name of Entity Estimate providing cost estimate Urinal Install Site Improvements $ 500.00 No Bills Plumbing Floor Tile Install Site $ 14,878.19 Yes Randys Carpet Improvements Window install Site $ 23,500.00 Yes Allied Glass Improvements Bathroom Partition Install $ 4,183.17 Yes Toilet Partitions corn/ Gleeson Renovation Boiler Install and Parts $ 10,000.00 Yes Bills Plumbing Wall Shelves Install $ 1,006.40 Yes Gleeson Renovations Total Use of Funds Amount $ 54,067.76 Scope of work(?) Attach any documantaton used fa cost esUrretes Shelves _Partitions Quote.pdf 149.13KB Boiler Bills Plumbing.pdf 128.75KB New Creations Little Creations 1 16 19 w kitchen and wax (2).pdf 227.4KB Allied Glass Quote 1-11-19.pdf 78.8KB 17001332 ToiletPartitions.com Quote.pdf 57.95KB Other Considerations Number of households or persons served* 24 Total cost per household or person served $ 2,252.82 What percentage of the proposed budget will be made up of private funds?* 1.85 Dollars Leveraged Per City Dollar Spent $ 0.04 Describe any community partnerships or volunteers that will contribute to the project. The project was launched in January of 2016. New Creations International Church allied with LCA. New Creations International Church (NCIC)has contributed $1100. First Presbyterian Church has partnered with Little Creations Academy since May of 2016. We expect 2500.00 from their organization. Describe any identity of interest (101) relationships with the applicant and/or project owner, i.e. General Partner has a financial interest in the construction company, etc.* none Curriculum Requirements for Little Creations Academy Class Rooms Operating Costs 9,000.00 9,000.00 Colorations simplywashable tempera (11 gallons) 120.89 Machine washable paint smock (come in packs of 6 times 2) 39.99 Assorted chubby brush (super pack set of60 2's and Preschooler 21.63 Stubby chubby brush (set of 12 toddlers) 14.99 Colorations jumbo washable stamp pads 29.99 Colorations good grasp stamping sticks ( upper & lower case) 24.99 Do-a-dotart! 14.99 Colorations washable chubby markers (classroom pack) 49.93 Colorations crayons (set of400) 39.99 Colorations sidewalk chalk (set 126) 26.99 Best value safety scissors (set of 12) 10.59 Con -Tact paper 27.99 Pipe cleaner (100 of each color) 19.96 Pound of pours 14.93 Rainbow feathers (classroom pack) 14.86 Large farm animals (6 in pack times 3) 17.72 490.43 Dramatic Play Clothes Chef Doctor Police Chief Construction worker Fire chief Veterinarian (set of 6) 129.89 Play and go kit with storage 319 Playground balls (set of 4) 14.82 Alphabet soup sorter (209 pieces) 49.99 Classroom frontier building set (150 pieces) 29.99 Excellerations Giant building bricks(40 pieces) 44.99 Tree blocks 49.99 Super rhythm sets (35 pieces) 154.99 Excellerations soft baby bricks& cakes (set of 8) 38.99 Safety m imor( for baby room) 66.99 899.64 Furniture for Daycare Angeles value line 2-shelf storage ( maybe 3) 159.99 Angeles value line divided shelf storage (maybe 3) 16624 My perfect classroom divided shelf mobile (if not the other ones ma,576.22 249.99 0966.29 Post Date Check Action Description Debit Credit Status 02/17/2017 Background Checks IA DEPT PUB SAFETY SING 515-7256070 IA 15.00 Posted 02/16/2017 1040 Operating Expense CHECK 26.00 Posted 02/15/2017 77 CHECK 376.06 Posted 02/14/20171049 Payro CHECK 585.80 Posted 02/14/20171048 P CHECK 876.77 Posted 02/13/20171043 CHECK 765.46 Posted 02/13/2017 Utilities CITY OF IOWA CITY IOWA CITY IA 122.56 Posted 02/13/2017 Meals ALDI 68067 IOWA CITY IA 54.23 Posted 02/13/2017 Misc MURPHY6524ATWALMART CEDAR RAPIDS IA 34.62 Posted 02/13/2017 Misc AMAZON DIGITAL SVCS 866-216-1072 WA 9.99 Posted 02/10/2017 1045 02/10/2017 Misc POPEYES E AVE 12130 CEDAR RAPIDS IA 14.97 Posted 02/10/2017 Deposit from Church Phone/In-Person Transfer per anthony 320.00 Posted 02/10/2017 Co -Pay Deposit DEPOSIT 60.00 Posted 02/09/2017 Background Checks IA DEPT PUB SAFETY SING 515-7256070 IA 15.00 Posted 02/09/2017 DHS Deposit E.F.T. ST OF IA-E.F.T. PPD COMPANY ID 2426004574 1757.88 Posted 02/09/2017 Internet Deposit PAYSAFE PAYSAFE SV9T CCD COMPANY ID 1043575881 300.00 Posted 02/08/2017 Misc ENTERPRISE RENT -A -CAR CEDAR RAPIDS IA 34.96 Posted 02/08/2017 Co -Pay Deposit DEPOSIT 498.00 Posted 02/08/2017 Transfer to Church Phone/In-Person Transfer per anthony's request es ices 320.00 Posted 02/08/2017 Misc ENTERPRISE RENT -A -CAR CEDAR RAPIDS IA 50.00 Posted 02/07/2017 Operating Expense LENOCH & CILEK ACE #1 IOWA CITY IA 21.95 Posted 02/07/2017 DHS Deposit E.F.T. ST OF IA-E.F.T. PPD COMPANY ID 2426004574 832.96 Posted 02/06/2017 DHS Deposit E.F.T. ST OF IA-E.F.T. PPD COMPANY ID 2426004574 768.63 Posted Total 3668.53 4587.47 Payroll Expenses -Payroll Expense Month 8434.94 DHS Voucher Deposit Month -IRS Taxes Month Note: Payroll and taxes fluctuate each pay period. EFT payments may not be deposited conjunctive to payroll Note: Payroll and taxes will fiuctate as the academy hires more staff. Re o' ling 9) a T j[16 faa?q YIml Andlno ® 319-300-1431 ® g,remodeling@outlook.com 232 PO Sox 450 Highway I West Ste E. Iowa City, IA 52246 PERFORMED AT: regT;0V1S AcAdF ro t 14i fle, W 1 I Cay v+ J+ _ OUR BID NO. 1aliiiilmm �1 Wy,; tC91J Pi virit.'�' and 61 ,oC`ldor b✓3��-------...-__-.: 2 emoUP�vr ; rovl o� X-c Sr 5 - avid bo V 5 Ipa row � awl w)I new 0065 - - <1391i. PLUMBING £HEATING Preparation Date: 1.17.19 Prepared for: Anthony Smith Prepared by: Erin Masonholder Project Location: New Creations International Church 2929 E Court St Iowa City IA Project Description: Materials and labor to tear out and reinstall boiler Project Bid: $10,000.00 Page:1 r1andv's LOCAL FLOORING EXPERTS. BY DESIGN. LITTLE CREATIONS ACADEMY 2929 E COURT ST IOWA CITY. IOWA 52245 4012nd Street Coralviue, IA 52241 319-354-4344 280 Brair5 Ferry Road NE Cedar Rapids, IA 52402 319-393-1400 randysfiocring com Proposal 1 1-567530 Todav's Date 1 1 /16/2019 2:49 PM Notes and Special Instructions Ship To Invoice for VCT installed in lower level of church LITTLE CREATIONS ACADEMY P 319-338-2877 Randys will contract waxing of VCT floor for new and exisitng areas 2929 E COURT ST Areas: large area, hallway ,kitchen, ajoining room, bathroom 4 IOWA CITY, IOWA 52245 - 51805 CAMEL BEIGE 2,205.00 SF $1.25 $2,756.25 002 S-515 CLEAR T-SPR ADH - 4 GAL PAIL CRA FREEZABLE 4.00 EA $113.44 $453.76 003 INSTALL LABOR - VINYL TILE LABOR 2,205.00 $1.05 $2,315.25 004 4 COVE BASE ROPPE 1/8 - BLACK 100 360.00 LF $1.09 $392.40 005 HENRYS ADHESIVE 440 COVE BASE C30 - COVE BASE 6.00 EA $10.04 $60.24 006 INSTALL LABOR - COVE BASE PER LF 360.00 $0.95 $342.00 007 ARDEX FEATHER FINISH 10 LB. BAG - 10 LB 2.00 EA $41.40 $82.80 008 ARDEX P-51 PRIMER GALLON - GALLON 2.00 EA $79.00 $158.00 009 FLOOR PREP - PER MAN HOUR 15.00 $56.00 $840.00 010 TEAR OUT - VINYL TILE 2,200.00 $1.65 $3,630.00 011 TILE GROUT OR VCT - STRIP & WAX EXISTING 2,205.00 $0.75 $1,653.75 012 TILE GROUT OR VCT - CLEAN AND WAX VCT 2,340.00 $0.75 $1,755.00 Taxable $7,312.20 Non -Taxable $7,127.25 Sales Tax $438.74 Grand Total $14,878.19 Deposit $0.00 Balance $14,878.19 Page:2 r1andv's LOCAL FLOORING EXPERTS. BY DESIGN. LITTLE CREATIONS ACADEMY 2929 E COURT ST IOWA CITY. IOWA 52245 4012nd Street Coralville, IA 52241 319-354-4344 280 Fllair5 Ferry Road NE Cedar Rapids, IA 52402 319-393-1400 randysflocring com Proposal 1 1-567530 Todav's Date 1 1 /16/2019 2:49 PM Notes and Special Instructions Ship To Invoice for VCT installed in lower level of church LITTLE CREATIONS ACADEMY P 319-338-2877 Randys will contract waxing of VCT floor for new and exisitng areas 2929 E COURT ST Areas: large area, hallway ,kitchen, ajoining room, bathroom 4 IOWA CITY, IOWA 52245 Deposit Due on Acceptance • Full Payment is due at Invoicing Finance charge of 1,5% per month will apply to all accounts over 30 days. Speciat orders may be non -returnable or may incur a restock fee and freight charge Site conditions must be within the manufacturer's standards before installation begins. _ Additional charges may be incurred for unforeseen work needed to prepare = O the site to receive the new floor covering. Randy's Flooring full terms and conditions are available at www.randysftooring.ccm 1rz y, ,�" "M]a 2345 Blairs Ferry Rd, Suite B Cedar Rapids, IA 52402 Phone: (319)364.2495 Fax: (319) 363.1944 New Creation International Church 2929 E Court St Iowa City, IA 52245 FOR New windows and entrances TO BE ERECTED AT Same address CONSISTING OF SHEETS PREPARED BY FOR THE SUM OF • 01/11/17 Subject to the provisions shown on front and back of this sheet, we propose to furnish materials as per specifications below. Proposal is for materials F.O.B. our Cedar Rapids dock unless so stated otheredse below. Proposal is subjected to any applicable tax if not included and so stated below. Proposal does not include the installation of the specified material unless so stated below. We do not clean any glass or storefront consttaolion or facing materials. PER PLAN NO. DATED SPECS.DATED ADDENDUM NOS. DOLLARS (NET CASH) $99,815.00 (materials & labor) _ONLY. ARCHITECT Scope of work: Demo all existing windows and three entrances and replace with new aluminum windows & doors Windows to consist of Kawneer 1600 Curtainwall spanning 1" and 2nd floors with insulated aluminum panels at floor line, heads and transoms. Fixed glass in all except for eight openings (4 on lower level, 4 on upper level) that will have operable project out awning style vent windows with interior screens. Locations TBD. Doors to be 350 medium stile with butt hinges, rim panic exit devices, electric strikes, LCN 1461 closers and brush sweeps Single door on lower level to have Handicap operator Finish on doors, frames and panels is #17 satin anodized aluminum Glazing is 1" clear/low-e insulated glass. Tempered where required Exclusions: Does not include any interior finish work such as adding drywall returns or drywall repair or painting, nor any wood extension jambs or casings Electrical work and access control to be done by others No fire-safing at floor line Lead time 6-8 weeks ACCEPTANCE This proposal is subject to acceptance within 30 days of the above date and providing that such acceptance, properly signed, is delivered to Allied Glass Products, prior to any rise in prices of material or labor required as part of this proposal. This proposal may be withdrawn at any time prior to acceptance, and may also be withdrawn or cancelled after acceptance if the credit status of the one to whom this proposal is made is not approved by Allied Glass Products. Any clerical errors are subject to correction. This proposal, together with the Terms, Liability and Conditions stated on the reverse side hereof, shall become the governing contract upon execution by both parties in the appropriate space provided. Accepted Allied Glass Products Date By jjVA,s, jl[ahcll IIIITOILET (855) 809-2049 PARTITIONS.co. ,4 info@toiletpartitions.com Quote #17001332 Ship To Zip: 52245 Powder Coat - $1,915.85 3 year warranty Delivered in 3-6 Business Days (Quick Ship colors only); Standard colors in 12-18 business days Plastic Laminate - $2,322.49 2 year warranty Delivered in 3-6 business days Solid Plastic - $3,557.37 25 year warranty Delivered in 5-10 business days Stainless Steel - $3,980.89 5 year warranty Delivered in 3-6 business days Phenolic - $4,544.60 25 yea r wa rra my Delivered in 10-15 business days Price includes materials and hardware Product Info Color Chart Price includes materials and hardware Product Info Color Chart Price includes materials and hardware Product Info Color Chart Price includes materials and hardware Product Info Color Chart Price includes materials and hardware Product Info Color Chart This quote includes all rooms. Please see attached room layouts for detail. All doors, panels, pilasters, screws, brackets, and anchors for a typical install are included. Date: 01/14/2019 JillTOILET `(855) 809-2049 l�,4 info@toiletpartitions.com PART ITIONS.co. 1 of 24" W x 48" H screens Quote Number: 17001332 Sta His / Toilets: M- 72.0" 60" Screens: 1 :••u ►.u- Room #1 Phone: 2 Screen Size: 24" W x 48" H IIIITOILET (855) 809-2049 PARTITIONS.co. ,4 info@toiletpartitions.com 60" Quote Number: 17001332 Sta I Is / To i I ets: Screens: 0 1: 1 Room #2 Phone: 3 Feasibility and Community Impact Outline the proposed timetable and expected impact for the project. For the timetable, include when requested funding will be committed, project milestones such as rezoning or construction, and when funds will be spent. If applicant plans to apply for funds not committed, include the anticipated date for application and when funds will be awarded. For expected impact, break out beneficiaries by income group. If funded, both the schedule and income breakdown will be used for any project agreement. Project Benefit Narrative Describe project benefits and requirements Such as beneficiary eligibility requirerrents, targeted beneficiaries, etc. Our child care facility serves the general public and those who are financially challenges. We provide quality child care that most families can afford. Our childcare center gives the undeserved the opportunity to be productive in the community while maintaining their dignity. Time Table Date Description of Activity 6/3/2019 Floor Tile installation 6/3/2019 Wall Shelf Instatllation 6/10/2019 Window installation 6/10/2019 Bath Room Partition Install / Urinal Install 6/18/2019 Boiler Installation To promote the efficient use of public funds, describe how the project will continue to provide public benefits through and beyond the required compliance period. Describe how the project will provide public benefits below rates in the existing market We are using volunteers and to cut labor costs. Some materials will be donated to us. In what manner or form will the project proceed if it is awarded less than full funding? If there are several components, how will they be prioritized? Bath Partitions Boiler Install Floor Tile Install Wall Shelf Windows Install Income Breakdown Please indicate the population to be served by the proposed program according to the linked income categories. If requesting money for a specific administrative expense (like a staff member's salary), indicate the population served by your entire agency. (Please Note: If funded, this information will be used as income targeting for your Agreement). Median Income Number of Persons 0 - 30% 31 - 50% 51 - 60% Median Income Number of Persons 61 - 80% Over80% 20 Total Persons/Households 24 Percent LMI 16.67 Please note the basis for these estimates* Our database stores the clients we serve. We collect data such as address, family members, and income. We are required to keep records of low income clients that receive financial assistance. Capacity and Applicant History Please list amount of CDBG and/or HOME funds received Wthin the lad four Qtyfsal years and the status of the pmjec[(s) undertalxn. CDBG and/or HOME funds received Fiscal Year Funds Received Budgeted Amount Date Project Amount Expended Completed July 1, 2016 to June 30, 2017 $ 73,000.00 $ 35,000.00 Please describe your organization's structure, officers, and staff.* Little Creations Academy has an active working board of directors that provides direction and assists in implementing the goals of the center. The board is comprised of a President Anthony Smith, Secretary Gwen Smith,and Treasurer Dr. Parren McNeely. The Board of Directors was formed in February 2016 prior to the center opening. The board established the business created the bylaws and articles of incorporation and established the business non -for —profit status. The board helps set the goals of the center, create the business model, create and superintend the budget, and hire the center director. The staff consists of a Center Director, Site supervisor, Lead Teacher, Teachers, and Teacher Assistance. We use utilize volunteers and Interns also. Please describe the education and experience of key staff who will implement the project (excluding volunteers, board members, and consultants). If consultants are utilized, identify what role theywill play in the project.* The staff and board has collaborated on this project. Our intent is to use use a General Contractor. Please summarize your organization's portfolio, including how many units you own and/or manage, how many homes you have built/rehabilitated/sold, and what projects are underway.* Little Creations Academy occupy's the lower level of New Creations International Church. Current projects consist of installing entrance doors, security access system, replacing room dividers and building an outdoor shed. Evidence of Fiscal Capacity(?) Audit Summary Financials as of Aug 31 17.pdf 57.29 KB Evidence of Organizational Capacity(?) Upto four pages of additional inforrretion about the capacity of the organization may be included. Exarrples of possible evidence may be resumes of Icy staff, additional descriptions of organizational activities, a other relevant infonrefion. 501 C3_ LCA.pdf Little Creations Academy License Fee Invoice.pdf 69.7KB 116.52KB Is the applicant (including partners, co -applicants, etc.) currently in compliance with all federal, state and local laws, rules and regulations, including any CDBG and/or HOME funded projects?* O Yes O No 0 Currently in litigation New Creations International Inc Balance Sheet Cash Basis As of August 31, 2017 Aug 31, 17 ASSETS Current Assets Checking/Savings Hills Bank Checking 1,470.20 Total Checking/Savings 1,470.20 Total Current Assets 1,470.20 TOTAL ASSETS 1,470.20 LIABILITIES & EQUITY Liabilities Current Liabilities Other Current Liabilities Loan Payment 1,350.00 Building Loan #9201 181,721.88 Building Loan #9205 37,611.96 Total Other Current Liabilities 220,683.84 Total Current Liabilities 220,683.84 Total Liabilities 220,683.84 Equity Retained Earnings -226,931.26 Net Income 7,717.62 Total Equity -219,213.64 TOTAL LIABILITIES & EQUITY 1,470.20 New Creations International Inc Profit & Loss Cash Basis January through August 2017 Ordinary Income/Expense Income Income Tithes/Offerings Tenant( Spanish) Total Income Total Income Expense Daycare Expense Speaker Fees and Expenses Housing Allowance Fundraising Expense Gifts / Remebrances Meals & Entertainment Bank Service Charges Computer and Internet Expenses Dues and Subscriptions Interest Expense Loan 9205 Loan 9201 Total Interest Expense Operating Inspection Fees Credit Processing Fees Advertising and Promotion Insurance Expense Maintenance / Improvements Telephone /Internet Travel Utilities Web Hosting and Designs Total Operating Office Office Supplies Total Office Repairs and Maintenance Small Tools and Equipment Total Expense Net Ordinary Income Other Income/Expense Other Income Interest Income Total Other Income Other Expense Personal Expense Total Other Expense Net Other Income Net Income Jan - Aug 17 48,863.12 12,360.00 61,223.12 61,223.12 1,881.00 200.00 11,970.00 255.78 323.80 964.26 485.00 1,035.56 617.92 1,072.07 5,831.35 6,903.42 15.00 810.26 100.00 3,802.71 913.61 3,536.49 2,465.92 5,184.40 71.88 16,900.27 8,366.79 8,366.79 555.76 430.04 50,889.60 10,333.52 0.65 0.65 2,616.55 2,616.55 -2,615.90 7,717.62 i - INTERNAL REVENUE SERVICE P. O. BOX 2508 I CINCINNATr, ON 45201 Date: MAY 0 4 2016 LITTLE CREATIONS ACADEMY INC 2929 E COURT ST IOWA CITY, IA 52245-0000 Dear Applicant: DEPARTMENT OF THE TREASURY Employer Identification Number: 81-1630688 DLN: 26053523001016 Contact Person: CUSTOMER SERVICE ID# 31954 Contact Telephone Number: (877) 829-5500 Accounting Period Ending: December 31. Public Charity Status: 170(b) (1) (A) (vi) Form 990/990-EZ/990-N Required: Yes Effective Date of Exemption: February 11, 2016 Contribution Deductibility: Yes Addendum Applies: No We're pleased to tell you we determined you're exempt from federal income tax under Internal Revenue Code (IRC) Section 501(c)(3). Donors can deduct contributions they make to you under IRC Section 170. You're also qualified to receive tax deductible bequests, devises, transfers or gifts under Section 2055, 2106, or 2522. This letter could help resolve questions on your exempt s CaLus. Please keep it for your records. Organizations exempt under IRC Section 501(c)(3) are further classified as either public charities or private foundations. We determined you're a public charity under the IRC Section listed at the top of this letter. If we indicated at the top of this letter that you're required to file Form 990/990-EZ/990-N, our records show you're required to file an annual information return (Form 990 or Form 990-EZ) or electronic notice (Form 990-N, the e-Postcard). If you don't file a required return or notice for three consecutive years, your exempt status will be automatically revoked. If we indicated at the top of this letter that an addendum applies, the enclosed addendum is an integral part of this letter. For important informationabout your responsibilities as a tax-exempt organization, go to www.irs.gov/charities. Enter 114221-PC" in the .search bar to view Publication 4221-PC, Compliance Guide for 501(c)(3) Public Charities, which describes your recordkeepi.ng, reporting, and disclosure requirements. Letter 5436 -2- LITTLE CREATIONS ACADEMY INC Sincerely, �s Jeffrey I. Cooper Director, Exempt Organizations Rulings and Agreements Letter 5436 Iowa Department of Human Services Cyi11A1ZNil N :9y401119A N401•`1ILI10aAQILIV101 NA ® INITIAL LICENSURE ❑ RELICENSURE CENTER NAME License Expiration LITTLE CREATIONS ACADEMY NEW LEGAL NAME AND TYPE OF OWNER (i.e., sole proprietor, partnership,LLC, corporation) Tax ID/EIN Little Creations Academy Inc (nonprofit corporation) 81-1630688 PHYSICAL ADDRESS EMAIL ADDRESS 2929 E COURT ST, IOWA CITY IA 52245 pastor@ncichurch.com, Iittlecacademy@gmail.com, jesuslovetoo@gmail.com MAILING ADDRESS 2929 E COURT ST, IOWA CITY IA 52245 Final Capacity AMOUNT DUE DUE DATE* Determination Number (See table below) 14 $50 AUGUST 31, 2016 Center Capacity Fee Amount 0 to 20 children $50 21 to 50 children $75 51 to 100 children $100 101 to 150 Children $125 151 or more children $150 *109.2(7) Regulatory fees... d. Payment. The center shall return Form 470-4834 to the department with the licensing fee payment within 30 calendar days from the date of the licensing consultant's or designee's signature on Form 470-4834. Payment may be in the form of cash, check, money order, or cashier's check. (1) Payment must be received before the department will issue a full or provisional license. (2) Regulatory fees are nonrefundable and nontransferrable. 109.2(4) Denial. Initial applications or renewals shall be denied when .. f. The regulatory fee as specified in subrule 109.2(7) is not received by the department's division of fiscal management by the due date indicated on Form 470- 4834, Child Care Center Licensing Fee Invoice. Licensing Consultant: Heidi Brown, 563-263-9302 Ext 125, hbrown@dhs.state.ia.us Contact your DHS Licensing Consultant immediately if you have questions or if Representative Signature/Title and Date there are errors in this information. i�) QfaLv_ i7r�?r.�_ Clerk -Specialist. 515-281-6832 Date: August 1, 2016 This form must be returned with your completed application and payment by the due date shown above. Payment must be in the form of a check, cashier's check, money order or cash, payable to Iowa Dept of Human Services. RETURN TO 470-4834(1/10) License Fee Collections Unit Iowa Department of Human Services Supply Unit — Level A Hoover State Office Building 1305 Walnut Street Des Moines, IA 50319 PLEASE NOTE - YOU MUST SEND A COPY OF THIS INVOICE WITH YOUR PAYMENT IN THE SAME ENVELOPE SO THAT THE FUNDS CAN BE APPLIED CORRECTLY. Project Old-ADA Improvements Project Address 26 E. Market St. Activity Type Public Facility (PF) CITY STEPS Priority Public Facility Improvements - Persons with Disabilities CITY STEPS Goal Improve and maintain public facilities Amount Requested $40,553 Project Description Rehabilitate the historic Old Brick Community Building to better serve persons with disabilities. Old Brick provides food for the homeless at the Agape Cafe and hosts public events and nonprofit organizations. Improvements include ADA restrooms, ADA handrails, flooring, stair treads, and the kitchen. Repayment Terms Conditional occupancy loan (forgiven if follows requirements) Compliance Period 5 years proposed Property Taxes Tax exempt %CDBG/HOME Funded 80% Project Budget Discussion Total renovation budget is approximately $50,553, with matching funds expected from their capital fund and various grants. Prioritized list of improvements if not awarded full funding: 1) Kitchen renovation - $11,700 2) ADA Restroom and handrail renovation - $21,930 3 Flooring - $16,923 Beneficiaries 0-30% AMI 8% 15,420 beneficiaries 31-50% AMI 49% 51-80% AMI 42% 80+% AMI 1% Project Coordination with Partners include Agape Cafe Board of Directors, Beloved Community Initiative Existing Services & other Volunteers, Grace Church Volunteer Committee, CRU Volunteers, Trinity Episcopal Services Available in the Church, and Camp Wapsie YMCA (donation of double oven for kitchen). Community Timeliness and Capacity to Old Brick has historically had good timeliness with monitoring requirements, but has Successfully Complete the not administered a CDBG public facilities project since FY12 (awarded $15,220 for Proposed Project different ADA improvements). Staff Concerns/Notes 1) All work will be subject to federal labor provisions (Davis Bacon — prevailing wages). 2) Must comply with federal procurement standards (competitive bids) for the proposed work. 3) Elements of project may not meet a national objective; staff is contacting our HUD representative identify eligible improvements using CDBG funds. 4) Project should use a single general contractor to assist with timely expenditure of funds. Care should also be taken to ensure accuracy of budget. S:\DEV\CDBGHOME\FY20`Applications\FY20 Staff reports FINAL.xlsx General Information and Project Need Select Language I Community Development Block Grant (CDBG) and/or HOME Investment Partnership (HOME) programs provide funding to aid in the development of viable urban communities and in the provision of safe and decent affordable housing. Applications are due Tuesday, January 18, 2019 at noon. This year, $625,000 are estimated to be available through this competitive process. Please reviewthe FY20 CDBG/HOME Application Guide for more information about eligible activities. Please submit one project proposal per application. Questions can be directed to kirk-lehmann@iowa-city.org or contact Neighborhood Services at 319-356-5230. Additional assistance, and hard copy applications, are available upon request Project Information W . Project name * ADA Improvements for Historic Community Building Project Address* Street Address 26 E. Market St. Address Line 2 City Iowa City Fbstal / Zip mde 52245 Type of Project(?) ❑ Rental Housing ❑ Owner Housing © Public Facility ❑ Other Type of Activity(?) ❑ Acquisition ❑ New Construction © Rehabilitation ❑ Direct Assistance ❑ Other Applicants Applicant Name Old Brick Applicant Address* State / Province / fiagion IA CcunUy United States Street Address 26 E. Market St. Address Line 2 City Iowa City Fbstal / Zip Oxte 52245 Contact Person, Title* Brianna Wills, Executive Director Phone Number* 3193512626 Email* brianna.Wlls@gmail.com DUNS Number(?) 845330422 State / Province / I Lgion IA CounUy United States DUNS # Verification*(?) Go to http:/lfedgov.dnb.conlwebfamto lookup a create a DINS number. Provide a copy of the erreil you readve with your confirmed DINS number. DUNS number.jpg 616.2KB CAGE Code (?) Obtain by registering on SAMgov Applicant Name Old Brick Applicant Address* Street Address 26 E. Market Street Address Line 2 City Iowa City Fbstal / Zip Oxte 52245 Contact Person, Title* Brianna Wills, Executive Director Phone Number* 3193512626 Email* brianna.Wlls@gmail.com DUNS Number(?) 845330422 State / Province / ILgion IA CounUy United States DUNS # Verification*(?) Go to http:/lfedgov.dnb.conlwebfamto lookup a create a DINS number. Provide a copy of the erreil you readve with your confirmed DINS number. DUNS number.jpg 616.2KB CAGE Code (?) Obtain by registering on SAMgcv General Information Type of Lead Applicant* 6 Community Housing Development Organization O Private non-profit organization O Private for -profit, individual or partnership applicant 6 Public Organization W-9 Form*(?) (F4equest for Taxpayer ID# & Cerlificaton) 2017 W-9 Old Brick.jpg Organizational Status * (?) 741.16KB Go to https://sm.ima.gm/smmhtbusiness to look up the organ¢afion applying for funds. Reside a copy of the Business Entity Summary screen. BusinessnumberlA.jpg 4.38MB Amount of Funds Requested* $ 40,553.00 Did you attend an Applicant Workshop?* r Yes r No Provide a few lines describing the proposed project* Old Brick a National Historic Landmark built in 1856 has many opportunities to upgrade the facility to serve individuals requiring handicap accommodations. Many individuals are served through OB's Agape Cafe and other programs are persons with disabilities. There are many public events held at Old Brick with an approximate attendance of over 15,000 persons per year. We knowfrom the use of our stair lift system that 135 people used motorized wheelchairs/scooters or required assistance with stairs at OB in 2018. The restrooms and handrails within and outside the building also need substantial renovations to meet ADA standards. We have 5 restrooms within the building and multiple sets of handrails. Upgrading our kitchen is also necessary to serve the 15,000+ individuals who qualify as low income (80%or below) that use OB yearly. The kitchen was not designed for the amount of current usage and needs commercially graded cabinets/refrigeration to serve the current capacity. The kitchen is also the primary vehicle used to serve our homeless guests each week (80-100 people). The kitchen is used by almost every organization that rents our building and by several individuals on a per hour rental basis. The flooring and stair treads at the entrance of OB also need replacement to facilitate movement by individuals with mobility restrictions. Please specifythe one or two most applicable priority need(s) this application addresses, as shown in the 2016-2020 CITY STEPS Plan. Explain how this project will meet this/those need(s).* This project touches on several areas identified as priorities in the CITY Steps including Homeless Services, Persons with Disabilities, & Facade Improvements. We believe we could welcome even more individuals needing accommodations with the listed facility improvements. A worksheet included outlines the organizations whom use the facility with income estimates. Budget and Resources Type of Funding Requested* Financing tears will be based on project feasibility and the ability to repay. Tears approved by City Council may be different than what is requested. Grant Requested Grant Terms ................ Principal Amount Affordability Period M $ 40,553.00 5 Source of Funds Rease enter belov the types of funding and arreats requested fa the proposed project, including if the funding is conTifted. If not a loan, leave loan tears blank Select the blank space for possible sources of income, a enter your own. Public Resources Funding Source and Type (?) Amount Interest rate Term(?) Committed Iowa City HOMEiCDBG $ 40553.00 0 0 No Total Public Funds $ 40,553.00 For uncommitted funds, please indicate when the applicant will applyfor funds Community Foundation of Johnson County grant will open in July 2019. Alliant Energy Foundation grant opens on Feb. 1, 2019. Private Resources ............................................................................................................................ .............................................. Funding Source & Type M Amount Interest rate Term(?) Committed Agape Cafe Board of Directors $ 5,000.00 0 0 Yes Community Foundation of $ 1,000.00 0 0 No Johnson County Alliant Energy Foundation $ 1,500.00 0 0 No Old Brick Capital Funding $ 2,500.00 0 0 Yes Total Private Funds $ 10,000.00 Total Project Funding $ 50,553.00 Evidence of Funding Commitments*(? Up to four pages of additional infanalion about the capacity of the organization may be included. Examples of rmy include graphics supporting the previous questions, resumes of key staff, additional descriptions of organizational activities, a other relevant information. Grant 2018 OB usage numbers by income (version 1).xlsb.xlsx 12.92KB OldBrickKitchenPictures.pdf 251.44KB Use of Funds Please enter below the uses of funding and amounts requested for the proposed project, including whether formal cost estimates were received. Select the blank space for possible use of funds, or enter your own." Type M Amount Formal Cost Name of Entity Estimate providing cost estimate ADA Compliant-Sinks(6) $780.00 Yes Menards ADA Compliant-Toilets(8) $ 1,200.00 Yes Menards Flooring for restrooms (5) $ 3,800.00 Yes Menards ADA Compliant Doors- $ 600.00 Yes Menards restrooms (4) Restroom painting (5) $ 1,500.00 Yes Jay Herman, Inc. Kitchen Update- Flooring $ 800.00 Yes Menards Kitchen -Refrigeration (2) $ 6,500.00 Yes Costco/Best Buy Kitchen -Lighting can lights (6) $ 800.00 Yes Menards Kitchen Cabinet -stainless steel $ 1,600.00 Yes Uline tables Installation of $ 3,500.00 Yes Jay Herman, Inc. flooring/sinks/toilets ADA Compliant Stair Railings $ 3,500.00 Yes Iron X exterior ADA Compliant Bathroom Grab $ 1,200.00 Yes Menards bars ADA Inclusive Stall Partitions (4 $ 5,500.00 Yes One Point restrooms) Partitions ADA Compliant faucets (6) $ 350.00 Yes Menards Electrician/Plumber $ 2,000.00 No Rehabilitation of Flooring in $ 10,828.00 Yes Randy's Flooring front vestibule Replacing Rubber Stair Treads $ 6,095.00 Yes Randy's Flooring Total Use of Funds Amount $ 50,553.00 Scope of work M Attach any documantaton used for cost esUrretes randysquote1.pdf 881.05KB Randys2.jpg 864.93KB Other Considerations Number of households or persons served* 15,420 Total cost per household or person served $ 3.28 What percentage of the proposed budget will be made up of private funds?* 19.78 Dollars Leveraged Per City Dollar Spent $ 0.25 Describe any community partnerships or volunteers that will contribute to the project. Agape Cafe Board of Directors, Beloved Community Initiative Volunteers, Grace Church Volunteer Committee, CRU Volunteers, Trinity Episcopal Church, Camp Wapsie YMCA (donation of double oven for kitchen). Describe any identityof interest (101) relationships with the applicant and/or project owner, i.e. General Partner has a financial interest in the construction company, etc.* none Old Brick Guest Count Income Based 0-30%Median Income 50% 60% 80%Over 80% ADA need ed assista nce(use of lift( Agape Cafe 90 10 5 0 10 Agape Cafe Fundraiser 12 10 25 125 10 3 CRU 45 40 15 0 1 Housing Trust Fund of Johnson County* A) 59 30 1 15 United Nations of Iowa Association Event 30 65 10 4 1 OR Dance 20 25 3 0 Hawkeye Ballroom 50 55 0 0 Quire Fundraiser 10 10 60 35 3 2 Old Capital Opera 12 45 55 1 1 Swing 35 3 8 1 0 Physicians for Social Responsi bility 20 55 20 20 5 2 Grcle K Event 105 2 1 1 Days of the Girl 350 5 5 5 3 0 Sankofa Meetings 4 8 10 3 0 0 Blue Planet Groupe 4 15 5 2 2 Sankofa Women's Conference 15 25 2 0 0 Henri Harper Gvil Rights Tour Fundraiser 10 25 75 5 5 4 ICOmmber Singers 2 15 25 50 3 3 Iowa Shares' 200 300 100 100 10 10 USA Dance 20 35 10 3 0 Tableto Table dinner 45 20 55 10 4 4 Veteransfor Peace 5 20 35 3 1 5 Secular Humanist 2 4 10 4 2 0 Resurrection 85 10 10 1 0 1 Grace 20 35 50 25 2 3 Girls on the Run' 45 50 35 2 15 0 Peace Grcle Trainings 8 5 10 2 0 2 IWP/Writers Worshop 2 10 15 25 0 1 Rusian Guitar Festival 2 50 50 1 1 UbraryStaff Event 50 50 20 2 2 Patel Kitchen Rental 1 0 0 Iowa youth Writing Project 12 3 2 0 0 Honors Program Social 118 2 0 Microbiology Conference 75 45 10 1 Enrollment Staff event 50 10 15 3 Kamala Harris COW Rally 5 10 50 100 25 2 Tippe Dean Recognition Wnch 50 55 25 0 Camp Bascom Dinner 35 85 5 1 Women Studies Writing Workshop 1 4 10 0 0 Iowa Watch Screening 5 15 15 5 5 1 IC Moms Blog event 15 55 35 5 0 League of Women Voters Registration 10 10 5 5 0 0 Women Action Resource Center Event 5 5 45 5 2 2 Nurture Her Soul Event 2 10 60 5 5 1 Iowa Harm Reduction Summitt 40 50 80 25 4 5 Women in B.iness 15 15 45 12 0 Native American AA Meetings 10 0 4 Meditation Group 10 0 2 Indigene. Day 45 40 20 1 2 2 Freedom School 30 40 60 2 1 CAB Senior Week Events 75 2 Philantropy Events (27 events w/ 225 guests) W75 5 22 weddings @ 175 guests average 3850 30 12M 75M 5430 1083 207 136 154M These numbers reflect unique individuals not number of times within the building (some groups meet several times a month so the number of people using the building daily is much higher) 'Number of Person assisted through organization wfincomeverfication ADA Assistance is actual number of times our lift was used for an individual to get into the Main Hall. Additional unaccounted for handicapped individuals use the ground floor and are not reflected in these numbers For this purpose, any students accounted for were put into the 50%median income group OB Kitchen Kitchen Refrigerator (inadequate for number of people served). Disintegrating cabinets from wear and water Finish peeling off current cabinets Pagel 4012nd Street 319-354-4344 rlandVs 280 Blairs Ferry Road NE Cedar Rapids, IA 52402 319-393-1400 LOCAL FLOORING EXPERTS. BY DESIGN. randystiooring.com OLD226EASTIMARKETOPALCENTER Proposal 1-553598 IOWA CITY, IOWA 52245 Toda 's Date 1/16/2018 4:38 PM Quote Date 1l1312015 Salesper., Name BILL MADDEN Notes and Special Instructions Ship To INSTALL CERAMIC MOSAIC TILE IN FRONT VESTIBULE OF OLD BRICK. OLD BRICK EPISCOPAL CENTER P 319-351-2626 Pt82R PREP IF NEEDED IS AN EXTRA CHARGE OF $50.00 PER MAN HOUR MATERIALS NEEDED. MAEN VESTABU EE IOWA CITY IOWA 52245 MTLD MD BROWN UNGLZ 504.00 SF $7.85 002 CEMENT BOARD 1/4 1/4" 495.00 $1.43 003 SF450 SUB -FLOOR ADHESIVE 10.00 EACH $7.99 004 RONDE A39 5/16 RS80AE39 4.00 EACH $39,50 005 SCHIENE EG TR 11/16 AE175 3.00 EACH $18.50 006 THINSET ADH 50 GRAY 400.00 EACH $0.87 007 GROUT VIVID 25 CLAY 300.00 $1.85 LABOR 008 CEMENT BOARD LABOR _ INSTALL PER SF 480.00 $1.70 009 CERAMIC FLOOR LABOR CERAMIC FLOOR LABOR 480.00 $5.50 010 TEAR OUT VINYL & UNDERLAYMENT/SF 480.00 $2.00 011 LANDFILL FEE LANDFILL FEE 480.00 $0.00 012 FLOOR PREP PER MAN HOUR 4.00 $50.00 FLOOR PREP IF NEEDED IS AN ESTIMATE OF TIME + OR - Taxable $5,860.65 Non -Taxable $4,616.00 Sales Tax $351.63 Grand Total $10,828.28 Deposit $0.00 Balance $10,828.28 Page:1 4012nd. Street Co, 41 ran 280 stairs IArry Road 319-354-4344 280 stairs Ferry Road NE Cedar Rapids, IA 52402 319-393.1400 LOCAL FLOORING EXPERTS. BY DESIGN. randyseooring.com P6 EAST MARKET OPAL CENTER Proposal 1-553645 IOWA CITY, IOWA 52245 Toda 's Date 1/16/2018 2:06 PM Quote Date 1/15/2018 Salesperson Name BILL MADDEN Notes and Special Instructions ShIp To STAIR TREADS AND RUBBER FLOORING ON STEPS AND lM3h OLD BRICK EPISCOPAL CENTER P 319-351-2626 gUBBER 26 EAST MARKET FLpp PREP IF NEEDED IS AN EXTRA CHARGE OF $50.00 PER MAN HOUR STEPS & LANDING I PLUSR MATERIALS NEEDED. IOWA CITY, IOWA 52245 CAMEL 128.00 LF $21.50 $2,752 002 VANTAGE TILE CAMEL 36.00 EA $32.50 $1,170 003 STAIR TRIED ADHESIVE AW510 1.00 EACH $50.27 $50 004 AW510 TREAD & RUBBER TILE ADHESIVE 4 GALLON 1.00 EACH $149.50 $149 005 EN610 ROPPE NOSE CAULK TUBE 6.00 $42.50 $255 LABOR 006 INSTALL LABOR -SPECIAL RUBBER FLOORING 86.00 007 INSTALL LABOR -SPECIAL STAIR TREAD 20.00 008 TEAR OUT VINYL TILE 214.00 009 LANDFILL FEE LANDFILL FEE 214.00 010 FLOOR PREP PER MAN HOUR 4.00 FLOOR PREP IF NEEDED IS AN ESTIMATE OF TIME + OR -. $2.00 $33.00 $1.98 $0.00 $50.00 $172. $660. $423. Taxable $4,376.77 Non -Taxable $1,455.72 Sales Tax $262.61 Grand Total $6,095.10 Deposit $0.00 Balance $6,095.10 Feasibility and Community Impact Outline the proposed timetable and expected impact for the project. For the timetable, include when requested funding will be committed, project milestones such as rezoning or construction, and when funds will be spent. If applicant plans to apply for funds not committed, include the anticipated date for application and when funds will be awarded. For expected impact, break out beneficiaries by income group. If funded, both the schedule and income breakdown will be used for any project agreement. Project Benefit Narrative Describe project benefits and requirements Such as beneficiary eligibility requirenurts, targeted beneficiaries, etc. Though Old Brick has averaged 15,000+ guests per year, this project focuses on the needs of the disabled guests. We have certified 136 uses of our automated handicap lift in 2018. That means that 136 individuals came to OB in a wheelchair or scooter and required help with the stairs. This does not take into account individuals with other disabilities or homeless populations served. We typically serve populations that qualify as under 80%for almost all activities at OB because we are a low-cost, below -market rental space in downtown IC. Organizations depend on our space to serve their needs for event and office space. Time Table Date Description of Activity 7/1/2019 After awarding of funding, we would upgrade one male and one female restroom at a time 7/1/2019 Order partitions/flooring/sinks/toilets 7/15/2019 Demo restrooms 7/15/2019 Install flooring/sinks/toilets/partitions/grab bars 7/22/2019 Paint 7/1/2019 Kitchen Renovation ---order cabinets/flooring/lights/refrigerators 7/22/2019 Kitchen demo as event schedules allow 7/22/2019 Install Flooring/Lights/Paint/cabinets 7/26/2019 Install Refrigeration 11/1/2019 Begin entrance flooring and stair tread replacement in entrance To promote the efficient use of public funds, describe how the project will continue to provide public benefits through and beyond the required compliance period. Describe how the project will provide public benefits below rates in the existing market The kitchen at Old Brick is truly the heart of the mission at Old Brick. The kitchen is used weekly by our Agape Cafe that serves made -to -order food to 80-100 homeless individuals. Almost every organization that uses OB through rentals or as tenants, use the kitchen to serve and prepare food for their projects. The kitchen is used daily by non -profits holding fundraisers for their organizations, community groups hosting pot -lucks or as part of any OB tenants needs. (OB has 10 non -profits who are tenants within our building and have use the of kitchen as part of their contracts). The kitchen is used by summer camps for kids, cooking workshops and by Farmers Market vendor who need licensed prep space for their foods. Any updates to the kitchen will have a long-term benefit to OB. The restroom remodels for updated ADA inclusion will allowall of our patrons to use the facilities as needed. We currently have one ADA compliant restroom within OB but that also needs updating. These listed projects will upgrade all 5 of the restrooms (2 men, 2 women, 1 unisex) to be ADA inclusive. The kitchen, restrooms and entrance flooring are long-term usage projects that will serve the public on a daily basis for years to come. In what manner or form will the project proceed if it is awarded less than full funding? If there are several components, how will they be prioritized? Since we have committed funding partners (Agape BOD), the first priority will be the kitchen renovation followed by the restroom renovations and flooring. Income Breakdown _ Please indicate the population to be served by the proposed program according to the linked income categories. If requesting money for a specific administrative expense (like a staff member's salary), indicate the population served by your entire agency. (Please Note: If funded, this information will be used as income targeting for your Agreement). Median Income Number of Persons 0 - 30% 1,200 31 - 50% 7,500 51 - 60% 5,430 61 -80% 1,083 Over80% 207 Total Persons/Households 15,420 Percent LMI 98.66 Please note the basis for these estimates* Included: We listed all events at OB in 2018 and asked organizations for their income breakdown of guest. Many organizations provided this information as an estimate. Student groups were put in the 50% and weddings guest were averaged at 60%. Capacity and Applicant History Please list amount of CDBG and/or HOME funds received Wthin the lad four Qtyfsal years and the status of the pmjec[(s) undertalxn. CDBG and/or HOME funds received Fiscal Year Funds Received Budgeted Amount Date Project Amount Expended Completed Please describe your organization's structure, officers, and staff.* Executive Director lead organization with several part-time staff. An active Board of Director following a Strategic Plan implemented in 2018 to direct programs and projects. We work closely with community non-profit groups to host events and be a gathering space. 10 non -profits have offices located within OB. These non- profits individually serve hundreds/thousands more through their work. Please describe the education and experience of key staff who will implement the project (excluding volunteers, board members, and consultants). If consultants are utilized, identify what role theywill play in the project.* One Point Partitions -consultant with ADA certification to design restrooms to be most inclusive. Agape Cafe Executive Director, kitchen utility and design based on experience serving populations. Randy's Flooring experts advised regarding best flooring options for durability and mobility. All projects overseen by Executive Director with professional Project Management experience. Please summarize your organization's portfolio, including how many units you own and/or manage, how many homes you have built/rehabilitated/sold, and what projects are underway.* none Evidence of Fiscal Capacity(?) Audit Summary FY20171balancesheet PDF(1).pdf 42.59 KB Evidence of Organizational Capacity(?) Upto four pages of additional inforrretion about the capacity of the organization may be included. Exarrples of possible evidence may be resumes of try staff, additional descriptions of organizational activities, a other relevant infonrefion. W illsresume.2019.doc Old Brick Board of Directors and affiliations.pdf 59KB 89.74 KB Is the applicant (including partners, co -applicants, etc.) currently in compliance with all federal, state and local laws, rules and regulations, including any CDBG and/or HOME funded projects?* 6 Yes O No O Currently in litigation Dec 31, 17 Dec 31, 16 $ Change % Change ASSETS Current Assets Checking/Savings Bill.com Money In Clearing 503.50 503.50 0.00 0.0% Bill.com Money Out Clearing 7.15 7.15 0.00 0.0% Operating Account - Hills Bank 189,570.19 189,916.80 -346.61 -0.18% Payroll Account - Hills Bank -261.32 115.35 -376.67 -326.55% Security Deposit Hills Bank 1,382.43 1,830.27 -447.84 -24.47% Total Checking/Savings 191,201.95 192,373.07 -1,171.12 -0.61% Accounts Receivable 11000 - Accounts Receivable -1,950.00 -15.25 -1,934.75 -12,686.89% Total Accounts Receivable -1,950.00 -15.25 -1,934.75 -12,686.89% Other Current Assets Accumulated Depreciation -76,900.44 -57,797.52 -19,102.92 -33.05% 12000 - Undeposited Funds 2,720.00 1,020.00 1,700.00 166.67% Total Other Current Assets -74,180.44 -56,777.52 -17,402.92 -30.65% Total Current Assets 115,071.51 135,580.30 -20,508.79 -15.13% Fixed Assets 2015 Capital Expenditures 36,393.32 36,393.32 0.00 0.0% 2016 Capital Expenditures 13,254.59 13,254.59 0.00 0.0% 2017 Capital Expenditures 38,128.58 0.00 38,128.58 100.0% Building Improvement 2014 15,870.91 15,870.91 0.00 0.0% Computer purchase 2015 1,000.00 1,000.00 0.00 0.0% 17801 - LED Auditorium 39yr/2013 7,017.84 7,017.84 0.00 0.0% Total Fixed Assets 111,665.24 73,536.66 38,128.58 51.85% TOTAL ASSETS 226,736.75 209,116.96 175619.79 8.43% LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable 20000 - Accounts Payable -1,341.59 -1,270.59 -71.00 -5.59% Total Accounts Payable -1,341.59 -1,270.59 -71.00 -5.59% Credit Cards 23000 - Mackenzie Hills B: 249.82 0.00 249.82 100.0% Total Credit Cards 249.82 0.00 249.82 100.0% Other Current Liabilities Pension payable 221.54 387.68 -166.14 -42.86% Property Taxes Payable 1,742.26 1,284.13 458.13 35.68% 18700 - Security Deposits 2,295.50 1,595.50 700.00 43.87% 24000 - Other Taxes Payable Federal W/H 689.00 871.00 -182.00 -20.9% Fica/Med Pat 1,605.88 1,868.32 -262.44 -14.05% Iowa W/H Pa 386.00 136.00 250.00 183.82% 24000 - Othei 1,492.90 1,484.09 8.81 0.59% Total 24000 - Other Taxes 4,173.78 4,359.41 -185.63 -4.26% Total Other Current Liabilities 8,433.08 7,626.72 806.36 10.57% Total Current Liabilities 7,341.31 6,356.13 985.18 15.5% Total Liabilities 7,341.31 6,356.13 985.18 15.5% Equity 30000 - Opening Balance Equity 123,338.88 123,338.88 0.00 0.0% 32000 - Unrestricted Net Assets 79,421.95 58,388.13 21,033.82 36.02% Net Income 16,634.61 21,033.82 -4,399.21 -20.92% Total Equity 219,395.44 202,760.83 16,634.61 8.2% TOTAL LIABILITIES & EQUITY 226,736.75 209,116.96 17,619.79 8.43% Brianna Wills Brianna. Wills(a,,emailxom 70 Hickory Place Iowa City, IA 52245 Cell (319)383-1025 Education/Licenses: Bachelor of Arts in Communications (Advertising and Public Relations) and Political Science The University of Alabama Master ofBusmess Administration (MBA) Leadership and Communications focus (Dec. 2019) The University of Dubuque Certified Fund Raising Executive (CFRE) application pending Certificate in Nonprofit Management (June 2019) Iowa State University Teaching License (Substitute), State of Iowa 2018-2023 Experience: Executive Director March 2017-current Old Brick Iowa City, Iowa • Staff recruitment, training, yearly evaluations, all HR functions for staff of 6 • Budget management of $500,000+ yearly including all financial investments, depreciation, endowment creation, payroll • Develop 3 and 5-year strategic plans including budget projections, capital campaigns and facility needs • Extensive Grant writing for local, state, and federal money for historical preservation, programming, facility enhancement. Grant implementation including managing how the money is spent and accounted for within grant structure and final grant reporting • Facility management including as a "caretaker" of historic landmark (building is 163 years old) upkeep of building, renovation planning and acting as general contractor for renovation of spaces • Plan/Manage hundreds of events and programming each year at Old Brick including student groups, weddings, and education seminars, fundraisers, etc. • Creating community and collaboration between the 12 non-profit groups who are tenants within Old Brick including recruitment of new tenants • Act as the "Face" of the Old Brick organization for speaking engagements, community events and as liaison with external groups Iowa City Community School District January 2018-current Substitute Teacher Iowa City, Iowa • Substitute teach across the ICCSD in all grades and schools PK-126. The Leukemia and Lymphoma Society June 2016-2017 Campaign Manager Iowa —Light the Night and ManlWoman of the Year Campaigns Statewide (Iowa) • Manager two fundraising campaigns including all fundraising budgeting, logistics and special events across Iowa. • Light the Night campaign is a walk with over 2000 participants at Kinnick Stadium, 150 teams of family/friends, 100 volunteers, 20 sponsors and vendors, and over $175,000 fundraising goal. • Man/Woman of the Year Campaign includes identifying motivated individuals and helping them execute a fundraising campaign in competition with other candidates. Fundraising campaign goal over $350,000. Gala logistics for 500 guests. • Identifying/Empathizing with a sensitive population including children with cancer, families who have lost love ones to cancer, and current patients. The Salvation Army of Johnson County November 2014-2016 Director of Development & Community Relations Iowa City, Iowa • Strategic Planning for future improvements of fund raising and at -risk programming including website updates, and investigations of new ways of giving including text, on-line, and email engagement tools. • Grant Writing/Submission/Follow-up to support Food Pantry, Youth Programming, and Temporary Housing programs to local and national organizations. • Engage/Educate/Recruit volunteers from community partners/comp inies/organizations for donations, grants, volunteer hours, and increasing awareness of organization. (Chamber of Commerce, Rotary Club etc.) • Plan/Execute/Evaluate all fundraising activities including on-line, direct mail, annual giving, major gifts, planned/estate giving, walk-in, special events and Advisory Board giving. • Organize/Execute all stewardship activities including thank you notes, tax letters, phone calls and personal visits. • Recruit/Manage AdvisoryBoardmembers, run BOD meetings, communications. • Enhance/Create new programming to support at -risk youth/fnnilies and homeless populations • Organize and Manage 20 locations for the Red Kettle Bell Ringing holiday campaign including personnel and press coverage • Manage Johnson County Toys for Tots Campaign in partnership with the national Toys for Tots Foundation o Signage, advertising, recruiting eligible families, recruiting donors of toys, volunteer recruitment/organization, and grant writing to support toy efforts. o Schedule/Manage toy distribution event including 20,000 toys to families in Johnson County The Academy of Natural Sciences & Children's Museum March 2004-April 2005 Executive ProjectMonager/Special Exhibits Philadelphia, Pennsylvania • Manage all sub -group staff within Academy (Exhibits, Education, Membership, Marketing etc.) to form a cohesive message and strategy relating to each exhibit with specific targets and goal -driven strategy (7 department heads with 3- 5 staff reports each) • Grant Writing and reporting to Foundations/Organizations/Government that funded exhibits and events • Meet/Engage/Collaborate with civic organizations (Convention/Visitors Bureau, Chamber of Commerce), to create, plan and co -fund events with mutual benefits to enhance awareness and attendance to museum and exhibit with internal and external staff and planning committees • Manage/Allocate Exhibit budget and grants ($2.2 million) across entire Academy including Public Programs, Special Events, Membership, Operations, Facilities, and Guest Services with strict adherence to grant specifications & budget • Plan/Manage all special events including exhibit opening galas with 300+ attendance with Gala Committee • Develop public programming both educational and entertainment based to attract audiences to exhibit/museum and work with Speakers Bureaus to book national talent as dictated by grants/funding • Manage $500,000 worth of media placement; create/manage marketing materials (brochures, email, letters, ads on radio, TV and print.) • Oversee Exhibits Department during design and installation of exhibits with eye towards future exhibit installation options Valley Forge Military Academy and College Jan. 2003March 2004 Director of Annual Giving and Special Events Wayne, Pennsylvania • Develop/Plan/Implement/Re-imagine all fundraising activities/campaigns/programs • Mange a professional staff of 5 with an additional large pool of part-time workers and volunteer base • Develop new programming to support fundraising, alumni engagement, staff and cadet recruitment and development • Identification/CWdvation/Solicitation of major gift prospects (capital, scholarship, annual, estate planning) via mail, phone and in person. • Created program to identify business partners and potential grant opportunities with additional program creation and management of new staff • Plan/Manage all special events for donors/alumni/parents including golf outings, 756 birthday gala (400+ attendees), recognition society balls, and Alumni Day/Homecoming events -Recruit/Manage/Train all volunteers and committees for special events (-150 volunteers) • Identify/Develop relationships with Board of Trustees and other VIP donors and friends to enhance organizations community relationships and future funding streams The University of Pennsylvania, School of Nursing (SON) Sept. 2001-Jan. 2003 Assistant Director of Donor Relations and Special Events Philadelphia, Pennsylvania • Planned/Managed all donor/stewardship events for the SON including VIP donor events, New Dean Receptions, and Alumni Day. • Implemented all stewardship activities including writing reports, events, prospect strategies, create cultivation pipeline of alumni, community members and students. • Coordinated/Recruited students, donors, volunteers, and alumni to participate in appropriate events leading into a cultivation cycle • Edited/Managed alumni publications including 24 page bi-annual alumni magazine and all donor letters/acknowledgements/reports Tierney Communications, Exelon/PECO Energy and Independence Blue Cross Accounts June 2000-Sept. 2001 Assistant Account Executive Philadelphia, Pennsylvania • Tracked/Planned spending and budget of multi -million -dollar ad campaign and accounts • Planned/Managed client and agency press events, coverage, and image • Developed/Implemented integrated marketing plans to meet clients' objective Recent Activities & Interest: SouthEast Jr High PTSO President Public Relations Chair, Special Populations Grant for Voting Access Johnson County Board of Supervisors, Planning and Zoning Commissioner Meals on Wheels Participant Iowa City Noon Rotary Johnson County Democrats Central Committee District Wide Parents' Organization (DPO), Co -President 2014-2015 Trustee, Kickers Soccer Club Iowa City Community School District Foundation Board, DPO Rep. 2014-2015 Iowa City Community School District Foundation, Parties for a Pwpose committee United Action For Youth (LAY), Festival of Flowers Committee Operation Backpack, HACAP Food Reservoir 100+ Women Who Care Iowa City Junior Service League, Holiday Home Tour -Chair and New Member Chair Herbert Hoover Elementary: PTA President 2013-2014 Neighborhood Park Planning Committee, City of Iowa City/Neighborhood Distinguished Young Women of Iowa Scholarship Program, VP -Board of Directors Iowa City Panhellenic Alumnae Council Iowa City Community School District Interview and Selection Committee Iowa City Community School District Advisory Committee on Magnet Schools Iowa City Community School District PERL Levy Committee Doula Old Brick Board of Directors Gerald Partridge, JD: Board of Director President, Executive Director of Police Legal Sciences, Inc., Mediation Services of Eastern Iowa, Family Folk Machine, Harp Players Theater Group George Perry, JD: Board of Director Vice President, Retired, President of The Perry Foundation, Secretary of Prelude Behavioral Services Board of Directors. Molly E. Brown, VP Commercial Banking, Hills Bank and Trust Company Old Brick, Treasurer and Chair of Finance Committee; Junior Achievement of Eastern Iowa, Board Member; Housing Trust Fund of Johnson County, Board Member; Team Breast Friends, Board Member Ann M Rhodes, RN, MA, JD, FAAN, Clinical Professor, College of Nursing, The University of Iowa, Board of Directors, Hills Bank and Trust Co.; Board of Directors, Iowa City Free Medical and Dental Clinic Saul Mekies, Professor, Economics, Kirkwood Community College and The University of Iowa Daryl G. Robinson, FCSI CCS AIA, Specifications Writer/Quality Assurance Manager Board of Officers (President) of the Crandic Chapter of the Construction Specifications Institute (CSI). Richard Dorzweiler, Retired University of Iowa Erin McGuire, Community volunteer Project Project Address 26 E. Market St. Activity Type Public Facility (PF) CITY STEPS Priority Public Facility Improvements - Homeless, Persons with Disabilities, Families with Children CITY STEPS Goal Improve and maintain public facilities Amount Requested $67,670 Project Description Structural fortification and water mitigation for the historic Old Brick Community Building to preserve the building which provides food for the homeless at the Agape Cafe and hosts public events and nonprofit organizations. Improvements include re- grading and adding structural stability to the hillside and re -funneling water drainage around the building, Repayment Terms Conditional occupancy loan (forgiven if follows requirements) Compliance Period 5 years proposed (6 years required) Property Taxes Tax exempt %CDBG/HOME Funded 73% Project Budget Discussion Total renovation budget is approximately $92,670, with matching funds expected from various public grants and private resources, including applicant equity. Prioritized list of improvements if not awarded full funding: 1) Structural Reinforcement - $28,570 2) Water mitigation/drainage - $15,850 3 Water permeable avers si na a enhancements - $48,250 Beneficiaries 0-30% AMI 8% 15,420 beneficiaries 31-50% AMI 49% 51-80% AMI 42% 80+% AMI 1% Project Coordination with Partnerships are expected to include Kirkwood Community College Design and Existing Services & other Construction students, Sustainable Landscape Solutions, MMS Consultants, City of Services Available in the Iowa City, Johnson County, Grace Church landscaping/planting volunteers, and the UI Community Gardeners Club. Timeliness and Capacity to Old Brick has historically had good timeliness with monitoring requirements, but has Successfully Complete the not administered a CDBG public facilities project since FY12 (awarded $15,220 for Proposed Project different ADA improvements). Staff Concerns/Notes 1) All work will be subject to federal labor provisions (Davis Bacon — prevailing wages). 2) Must comply with federal procurement standards (competitive bids) for the proposed work. 3) Project may not meet a national objective; staff is contacting our HUD representative identify eligible improvements using CDBG funds. S:\DEV\CDBGHOME\FY20`Applications\FY20 Staff reports FINAL.xlsx General Information and Project Need Ci Select Language I Community Development Block Grant (CDBG) and/or HOME Investment Partnership (HOME) programs provide funding to aid in the development of viable urban communities and in the provision of safe and decent affordable housing. Applications are due Tuesday, January 18, 2019 at noon. This year, $625,000 are estimated to be available through this competitive process. Please reviewthe FY20 CDBG/HOME Application Guide for more information about eligible activities. Please submit one project proposal per application. Questions can be directed to kirk-lehmann@iowa-city.org or contact Neighborhood Services at 319-356-5230. Additional assistance, and hard copy applications, are available upon request Project Information . Project name * Old Brick Structural Fortification and Water Mitigation Project Project Address* Street Address 26 E. Market Street Address Line 2 City Iowa City Fbstal / Zip mde 52245 Type of Project(?) ❑ Rental Housing ❑ Owner Housing © Public Facility ❑ Other Type of Activity(?) ❑ Acquisition ❑ New Construction © Rehabilitation ❑ Direct Assistance ❑ Other Applicants Applicant Name Old Brick Applicant Address* State / Province / fiagion IA CcunUy United States Street Address 26 E. Market Street Address Line 2 City Iowa City Fbstal / Zip Oxte 52245 Contact Person, Title* Brianna Wills, Executive Director Phone Number* 3193512626 Email* director@oldbrick.org DUNS Number(?) 84-533-0422 State / Province / I Lgion Iowa Counfiy United States DUNS # Verification*(?) Go to http:#fedgov.dnb.com`webfamto lookup a create a DINS number. Provide a copy of the email you readve with your confirmed DINS number. DUNS number.jpg 616.2KB CAGE Code (?) Obtain by registering on SAMgov General Information Type of Lead Applicant* O Community Housing Development Organization O Private non-profit organization 6 Private for -profit, individual or partnership applicant O Public Organization W-9 Form*(?) (F4equest fa Taxpayer ID# & Cerlificaton) 2017 W-9 Old Brick.jpg 741.16KB Organizational Status * (?) Go to https://sm.ima.gm/smmhtbusiness to lookup the aganizafion applying fa funds. Provide a copy of the Business Entity Sumrery, screen. BusinessnumberlA.jpg 4.38MB Amount of Funds Requested* $ 67,670.00 Did you attend an Applicant Workshop?* 6 Yes f No Provide a few lines describing the proposed project* Old Brick built in1856 is Iowa City's second oldest public structure that has served thousands in the community over the years. We recently discovered water seepage into the property. The westside hill (along Clinton St.) has experienced significant erosion and is allowing water to enter the foundation of the building. If this isn't immediately rectified by re -grading of the hillside, adding structural stability to the hillside, and re -funneling water drainage around the building, Old Brick will face serious structural integrity issues with water in the foundation cracking and expanding the walls. A Structural Engineer was consulted and made the recommendation of immediate action. A plan was designed for the entire property for grading/water mitigation/structural support and we began seeking funding for this extensive, yet necessary project. This historic building functions as a low-cost gathering space for non -profits, organizations, and various community needs. We believe that OB adds significant value to the community and should be protected as a community asset. Please specifythe one or two most applicable priority need(s) this application addresses, as shown in the 2016-2020 CITY STEPS Plan. Explain how this project will meet this/those need(s).* Old Brick serves a significant extremely low/low income and homeless population through our many organizations within OB and community usage. Particularly, we serve around 100 homeless patrons each week in our Agape Cafe which has been in existence for 25 years. Old Brick's mission is focused on serving low- income populations by working with non -profits located within OB focused on social services, affordable housing, racial/social justice, peace -building, and education. OB also serves the needs identified within the City Steps Priorities rubric including Homeless Services, Persons with Disabilities, and Youth Services through our non-profit tenants work within OB and extensive event roster. We have identified over 15,000 unique individuals who come to OB each year for services/events whom we believe fall under 80% median income with over 1200 at 0-30%, and 7500 at 50%. We also will touch on the priorities of Flood/drainage improvements, Tree Planting, Neighborhood Facilities and Facade Improvements for this complete project. We are working with the City of Iowa City to manage water drainage from the property/roof using the latest water management standards. We are also investigating recycling bricks from the streets/ped mall City projects. The secondary goal of our project is to move OB into environmentally sound practices by reusing available plants/bushes and/or use landscaping materials that decrease our carbon footprint (no fertilizers/no mowing, using water permeable/filtering pavers, etc.) Budget and Resources Type of Funding Requested* Financing tears will be based on project feasibility and the ability to repay. Terms approved by City Council may be different than what is requested. Grant Requested Grant Terms ................ Principal Amount Affordability Period (?) $ 67,670.00 5 Source of Funds Rease enter below the types of funding and arrounls requested fa the proposed project, including if the funding is conTifted. If not a loan, leave loan tears blank Select the blank space for possible sources of income, a enter your own. Public Resources Funding Source and Type (?) Amount Interest rate Term(?) Committed Iowa Historical Resource $ 5000.00 0 0 No Development Program City of Iowa City Cost -Sharing $ 3000.00 0 0 No for permeable pavers REAP Stormwater cost -sharing $ 5000.00 0 0 No Iowa City HOME/CDBG $ 67670.00 0 0 No Total Public Funds $ 80,670.00 For uncommitted funds, please indicate when the applicant will applyfor funds Iowa Historical Resource Development Program opens grant applications in mid -Jan. 2019 and will have funding beginning July 1, 2019, if accepted. This grant focuses on historic structures such as Old Brick. City of Iowa City cost -sharing for permanent water permeable pavers used for water mitigation/filtering/draining water. Funding is awarded after the project is complete. Maximum award is $3,000 (up to 50% of cost) REAP Funding for Stormwater Practices is a cost -sharing grant through the Iowa Department of Agriculture and Land Stewardship. This funding cycle will open on July 1 with grant applications. The cost -sharing is applied for after the project is completed. The funding amount can be 1/4 of project cost (an estimate from another project funded). I have estimated $5,000 as a potential cost -share (potential up to $10,000). Private Resources ............................................------------...................................................... ................................................ Funding Source & Type (?) Amount Interest rate Term(?) Committed Community Foundation of $ 1,000.00 0 0 Yes Johnson County Old Brick Endowment Fund $ 1,000.00 0 0 Yes Old Brick Capital Funds $ 5,000.00 0 0 Yes Brick Selling Campaign by OB $ 5,000.00 0 0 No Total Private Funds $ 12,000.00 Total Project Funding $ 92,670.00 Evidence of Funding Commitments*(? Up to four pages of additional infanation about the capacity of the organ¢afion rmy be included. Examples of rmy include graphics supporting the previous questions, resumes of key staff, additional descriptions of organ¢afional activities, a other relevant information. CFJCawardletter.jpg 810.87KB Grant 2018 OB usage numbers by income (version 1).xlsb.xlsx 12.92KB Use of Funds Please enter below the uses of funding and amounts requested for the proposed project, including whether formal cost estimates were received. Select the blank space for possible use of funds, or enter your own." Type (?) Amount Formal Cost Name of Entity Estimate providing cost estimate Construction of concrete wall $ 10,000.00 Yes JNL Construction for structural stability along Clinton St. 100' long, 4' tall Brick facade overlay on $ 18,570.00 Yes S. Moyle Masonry concrete wall to compliment historic building Water drainage/filtration $ 15,850.00 Yes Sustainable solutions with water -permeable Landscape paver surface Solutions (SLS) Ground enhancements $ 18,250.00 Yes Sustainable including ADA compliant hand Landscape ra ils/signage/landscaping Solutions Permit fees/signage $ 1,000.00 Yes Building Permits/Right of Way fees Paver surface installation for $ 24,000.00 Yes Sustainable drainage solutions for front of Landscape property Solutions OB Signage at corner of $ 5,000.00 No TBD Clinton/Market St. Total Use of Funds Amount $ 92,670.00 Scope of work(?) Attach any documentation used fa cost estirretes Other Considerations ' Number of households or persons served* 15,420 Total cost per household or person served $ 6.01 What percentage of the proposed budget will be made up of private funds?* 12.95 Dollars Leveraged Per City Dollar Spent $ 0.37 Describe any community partnerships or volunteers that will contribute to the project. Kirkwood Community College Design and Construction students (working with students to design water mitigation plan using newest water conservation techniques in real-time project for students), Sustainable Landscape Solutions, MMS Consultants, City of Iowa City (funding and potential historic bricks from City projects), Johnson County (cost -sharing), Grace Church landscaping/planting volunteers, UI Gardeners Club (planting and long-term maintenance). Describe any identity of interest (101) relationships with the applicant and/or project owner, i.e. General Partner has a financial interest in the construction company, etc.* none ICommInityFonndation of johnson County 325 E. Washington Street, Ste 100 Iowa City, IA 52240 Old Brick Historic Landmark Structural Support and Landscaping with Vocational Training Collaboration It is our pleasure to enclose a grant check for $1,000 from the Community Foundation of Johnson County. Please express your gratitude directly to the donor for making this gift to your organization. The donor should receive an acknowledgement of the grant which should not include a tax deduction confirmation or receipt. The donor is! Community Foundation of Johnson County 325 E Washington Street, Suite 100 Iowa City, IA 52240 Accepting the grant certifies to CFJC thatthis does not satisfy a pledge or that any individual, including the donor receives private benefits, goods or services from this award. It also acknowledges that your organization continues to be publicly supported and exempt under the Internal Revenue Code. Depositing this check acknowledges your acceptance of the terms and that the funds will be used for the purpose specified in your grant application. If any of the funds are not used for the purposes intended, they will be returned to the CFJC. Your organization must provide a grant report no later than June 30 of the year following receipt of the grant. Your report is a record of what you have achieved and what you have learned in the process. It will help shape future grant -making decisions by the Community Foundation. You can find the grant report and the terms of the grant agreement on our website, www.communityfoundationofjohnsoncounty.org. The Community Foundation of Johnson County is proud to partner with our donors in our shared mission to serve Johnson County by growing endowments and distributing funds to build a greater community. If you have any questions regarding the terms of the grant, please contact the Community Foundation at 319- 337-0483. We thank you for the good work of your organization and the difference your ongoing efforts make in our community. Sincerely, Shelly Maharr Executive Dir or Old Brick Guest Count Income Based 0-30%Median Income 50% 60% 80%Over 80% ADA need ed assista nce(use of lift( Agape Cafe 90 10 5 0 10 Agape Cafe Fundraiser 12 10 25 125 10 3 CRU 45 40 15 0 1 Housing Trust Fund of Johnson County* A) 59 30 1 15 United Nations of Iowa Association Event 30 65 10 4 1 OR Dance 20 25 3 0 Hawkeye Ballroom 50 55 0 0 Quire Fundraiser 10 10 60 35 3 2 Old Capital Opera 12 45 55 1 1 Swing 35 3 8 1 0 Physicians for Social Responsi bility 20 55 20 20 5 2 Grcle K Event 105 2 1 1 Days of the Girl 350 5 5 5 3 0 Sankofa Meetings 4 8 10 3 0 0 Blue Planet Groupe 4 15 5 2 2 Sankofa Women's Conference 15 25 2 0 0 Henri Harper Gvil Rights Tour Fundraiser 10 25 75 5 5 4 ICOmmber Singers 2 15 25 50 3 3 Iowa Shares' 200 300 100 100 10 10 USA Dance 20 35 10 3 0 Tableto Table dinner 45 20 55 10 4 4 Veteransfor Peace 5 20 35 3 1 5 Secular Humanist 2 4 10 4 2 0 Resurrection 85 10 10 1 0 1 Grace 20 35 50 25 2 3 Girls on the Run' 45 50 35 2 15 0 Peace Grcle Trainings 8 5 10 2 0 2 IWP/Writers Worshop 2 10 15 25 0 1 Rusian Guitar Festival 2 50 50 1 1 UbraryStaff Event 50 50 20 2 2 Patel Kitchen Rental 1 0 0 Iowa youth Writing Project 12 3 2 0 0 Honors Program Social 118 2 0 Microbiology Conference 75 45 10 1 Enrollment Staff event 50 10 15 3 Kamala Harris COW Rally 5 10 50 100 25 2 Tippe Dean Recognition Wnch 50 55 25 0 Camp Bascom Dinner 35 85 5 1 Women Studies Writing Workshop 1 4 10 0 0 Iowa Watch Screening 5 15 15 5 5 1 IC Moms Blog event 15 55 35 5 0 League of Women Voters Registration 10 10 5 5 0 0 Women Action Resource Center Event 5 5 45 5 2 2 Nurture Her Soul Event 2 10 60 5 5 1 Iowa Harm Reduction Summitt 40 50 80 25 4 5 Women in B.iness 15 15 45 12 0 Native American AA Meetings 10 0 4 Meditation Group 10 0 2 Indigene. Day 45 40 20 1 2 2 Freedom School 30 40 60 2 1 CAB Senior Week Events 75 2 Philantropy Events (27 events w/ 225 guests) W75 5 22 weddings @ 175 guests average 3850 30 12M 75M 5430 1083 207 136 154M These numbers reflect unique individuals not number of times within the building (some groups meet several times a month so the number of people using the building daily is much higher) 'Number of Person assisted through organization wfincomeverfication ADA Assistance is actual number of times our lift was used for an individual to get into the Main Hall. Additional unaccounted for handicapped individuals use the ground floor and are not reflected in these numbers For this purpose, any students accounted for were put into the 50%median income group Feasibility and Community Impact Outline the proposed timetable and expected impact for the project. For the timetable, include when requested funding will be committed, project milestones such as rezoning or construction, and when funds will be spent. If applicant plans to apply for funds not committed, include the anticipated date for application and when funds will be awarded. For expected impact, break out beneficiaries by income group. If funded, both the schedule and income breakdown will be used for any project agreement. Project Benefit Narrative Describe project benefits and requirements Such as beneficiary eligibility requirenurts, targeted beneficiaries, etc. The building is central to all other activities and good that any of us are able to do for our community. If the building is no longer structurally sound, then all good works would have to cease at this location. Old Brick has a well -developed mission and strategic plan but this project has surfaced outside of our normal planning as emergency projects tend to do. This level of funding required to complete this project successfully is well beyond the operational budget of OB. The building is necessary to serve the 10 non -profits within by providing office/gathering space and a community of progressive fellow non-profit professionals. We also serve may community organizations as a low-cost (sometimes free) venue for fundraising events. Time Table Date Description of Activity 2/4/2019 Work with Kirkwood Community College students on design of project and timelines 4/1/2019 Finalize bids with contractors and material selections 7/1/2019 Schedule re -grading of property hill side as contractors are available 7/1/2019 Engage water mitigation systems drains/grade/materials necessary/Site work 7/1/2019 Build structural reinforcement along Clinton St. with brick overlay 7/15/2019 Lay water filtration/water permeable pavers to filter, absorb, and re -direct water 7/31/2019 Replace landscaping damaged by construction installations/added for water mitigation purposes 9/2/2019 Complete paver installations per design as funding allows To promote the efficient use of public funds, describe how the project will continue to provide public benefits through and beyond the required compliance period. Describe how the project will provide public benefits below rates in the existing market Old Brick host thousands of guest each year. Many of those served come to Old Brick to receive food, through our Agape Cafe initiative, education through our connection with many organizations across IC, or social services through contact with one of our 10 in-house non -profits. Old Brick's tenants focus on progressive social issues including social justice (Beloved Community Initiative), affordable housing initiatives (Housing Trust of Johnson County), peace -building (Peace Iowa, United Nations, Physicians for Social Responsibility), the environment, public policy initiatives(lowa Policy Project), and more. Through the works of our non -profits that are housed within Old Brick and the additional programming done with outside groups, Old Brick serves as a gathering place for social interaction, education, and advocacy. Old Brick's mission is to provide spaces for groups to gather, advocate, and educate at a cost that is affordable to small groups. Old Brick substantially subsidizes the cost of office space to non -profits as part of this mission to serve across many community needs. This proposed project protects the building's foundation and the health of the physical building. The building beyond its historical significance is an essential piece allowing these groups to serve our community. This plan was built around current best practices for water/soil/erosion control practices and will be environmental progressive for future property management of the site. In what manner or form will the project proceed if it is awarded less than full funding? If there are several components, how will they be prioritized? This is an extensive project for a small non-profit. As such, we have built this project into phases so that parts could be completed as funding became available. The most critical/time-sensitive piece is the structural reinforcement that is projected to cost $30,000. 2) $20,000 in water mitigation/drainage/soil erosion solutions added to prevent further erosion/water damage. 3) $25,000 to complete paver structure/water permeable across the front of OB for full building drainage, signage. Income Breakdown ! W 4 F Please indicate the population to be served by the proposed program according to the linked income categories. If requesting money for a specific administrative expense (like a staff member's salary), indicate the population served by your entire agency. (Please Note: If funded, this information will be used as income targeting for your Agreement). Median Income Number of Persons 0 - 30% 1,200 31 - 50% 7,500 51 - 60% 5,430 61 -80% 1,083 Over80% 207 Total Persons/Households 15,420 Percent LM I �:� Please note the basis for these estimates* Apage Cafe serves 80-100 guest each week, homeless individuals in the 0-30%. We listed every event at OB in 2018 and inquired with org. the income breakdown of attendees. Assumptions: student event attendee 50%, wedding attendees 60% averaged. Capacity and Applicant History Please list amount of CDBG and/or HOME funds received Wthin the lad four Qtyfsal years and the status of the pmjec[(s) undertalxn. CDBG and/or HOME funds received Fiscal Year Funds Received Budgeted Amount Date Project Amount Expended Completed Please describe your organization's structure, officers, and staff.* Executive Director overseen by engaged Board of Directors. Board guided by Strategic Plan implemented in 2018 to guide vision and projects. Full time ED with several part-time employees. Please describe the education and experience of keystaff who will implement the project (excluding volunteers, board members, and consultants). If consultants are utilized, identifywhat role theywill play in the project.* Executive Director overseeing all projects has successfully overseen several large historic renovation projects at OB already. Also has additional professional experience as Project Manager. Sustainable Landscape Solutions (SLS), landscaping/water/environment experts overseeing design and installations MMS Consultants, professional landscaping design and site management Please summarize your organization's portfolio, including how many units you own and/or manage, how many homes you have built/rehabilitated/sold, and what projects are underway.* none Evidence of Fiscal Capacity(?) Audit Summary FY2017income PDF (1).pdf Evidence of Organizational Capacity(?) 45.76 KB Up to four pages of additional infana5on about the capacity of the organization may be included. Examples of possible evidence may be resumes of try staff, additional descriptions of organizational activities, a other relevant infonrefion. Certificate of Historic Places.jpg 543.68KB Old Brick Board of Directors and affiliations.pdf 89.74KB Willsresume.2019.doc 59KB OBtenants2019.docx 12.22KB Is the applicant (including partners, co -applicants, etc.) currently in compliance with all federal, state and local laws, rules and regulations, including any CDBG and/or HOME funded projects?* 6 Yes O No 0 Currently in litigation Jan - Dec 17 Jan - Dec 16 $ Change % Change Ordinary Income/Expense Income Grants Received 0.00 3,019.00 -3,019.00 -100.0% 40000 - Monthly Usage 89,551.25 89,760.80 -209.55 -0.23% 40100 - Event Usage 20,168.37 32,996.86 -12,828.49 -38.88% 40200 - Interest Income 318.82 282.65 36.17 12.8% 40300 - Ballroom Rent 58,366.64 42,443.68 15,922.96 37.52% Total Income 168,405.08 168,502.99 -97.91 -0.06% Gross Profit 168,405.08 168,502.99 -97.91 -0.06% Expense Employee 60000 - Facili 0.00 2,070.25 -2,070.25 -100.0% 60001 - Even 8,307.44 4,218.52 4,088.92 96.93% 60002 - Main, 9,324.10 3,339.11 5,984.99 179.24% 60004. Exec 32,000.02 30,000.10 1,999.92 6.67% 60020 - Tax- 3,796.82 3,188.39 608.43 19.08% 60021 - Tax - 0.00 0.00 0.00 0.0% 60022 - Tax - 147.78 100.07 47.71 47.68% 60050 Welft 9,096.00 8,604.00 492.00 5.72% 60051 Chur 1,279.98 1,279.90 0.08 0.01% Employee - C 80.00 0.00 80.00 100.0% Total Employee 64,032.14 52,800.34 11,231.80 21.27% 60100 - Marketing 1,900.71 1,549.29 351.42 22.68% 60200 - Administration 60201 - Offia 1,456.36 447.95 1,008.41 225.12% 60202 - Props 3,315.00 2,180.75 1,134.25 52.01% 60203 - Prop, 1,032.13 1,551.21 -519.08 -33.46% 60204 - IT/Ca 4,595.87 4,224.66 371.21 8.79% 60205 - Meml 337.00 330.00 7.00 2.12% 60206 - Meet! 211.50 408.71 -197.21 -48.25% 60207 - Payr( 3,990.00 3,530.00 460.00 13.03% 60208 - Post: 48.13 9.40 38.73 412.02% 60209 - Softy 365.34 894.95 -529.61 -59.18% Net Ordinary Income 60211. Bank 161.35 345.17 -183.82 -53.26% 60200 - Admi 40.90 74.88 -33.98 -45.38% Total 60200 - Administratii 15,553.58 13,997.68 1,555.90 11.12% 60300 - Maintenance 60301 - Gas/I 11,859.87 11,045.58 814.29 7.37% 60302 - Wate 1,356.68 1,307.49 49.19 3.76% 60304. Trast 2,886.52 1,941.05 945.47 48.71% 60305 - Snov 1,675.00 567.50 1,107.50 195.15% 60306 - Janit 5,832.38 2,900.66 2,931.72 101.07% 60307 - Janit 2,142.89 492.31 1,650.58 335.27% 60308 - Grou 3,152.19 2,044.67 1,107.52 54.17% 60309 - Plan( 180.00 125.00 55.00 44.0% 60310 - Even 0.00 25.00 -25.00 -100.0% 60311 - Facili 1,620.66 1,924.55 -303.89 -15.79% 60312 - Gene 17,443.03 24,682.47 -7,239.44 -29.33% 60313. Gene 2,722.92 9,174.06 -6,451.14 -70.32% 60314. Pest 106.00 0.00 106.00 100.0% Total 60300. Maintenance 50,978.14 56,230.34 -5,252.20 -9.34% 60400 - Depreciation Expe 19,102.92 20,597.76 -1,494.84 -7.26% 60500 - Miscellaneous Ext 202.98 243.76 -40.78 -16.73% 66000 - Payroll Expenses 0.00 2,050.00 -2,050.00 -100.0% Total Expense 151,770.47 147,469.17 4,301.30 2.92% 16,634.61 21,033.82 -4,399.21 -20.92% 16,634.61 21,033.82 -4,399.21 -20.92% State of Iowa Division of Historic Preservation . Iowa State Historical Department This certifies that Nvr14 trr6girrtttn Tht=4 of lown (Q11j has been entered in THE NATIONAL REGISTER OF HISTORIC PLACES This action was taken under the provisions of the National Historic Preservation Act of October 15, 1966 and Chapter 303, the Code of Iowa Robert D. Ray, Governor D. Anderson, State Hi toric Preservation Officer Old Brick Board of Directors Gerald Partridge, JD: Board of Director President, Executive Director of Police Legal Sciences, Inc., Mediation Services of Eastern Iowa, Family Folk Machine, Harp Players Theater Group George Perry, JD: Board of Director Vice President, Retired, President of The Perry Foundation, Secretary of Prelude Behavioral Services Board of Directors. Molly E. Brown, VP Commercial Banking, Hills Bank and Trust Company Old Brick, Treasurer and Chair of Finance Committee; Junior Achievement of Eastern Iowa, Board Member; Housing Trust Fund of Johnson County, Board Member; Team Breast Friends, Board Member Ann M Rhodes, RN, MA, JD, FAAN, Clinical Professor, College of Nursing, The University of Iowa, Board of Directors, Hills Bank and Trust Co.; Board of Directors, Iowa City Free Medical and Dental Clinic Saul Mekies, Professor, Economics, Kirkwood Community College and The University of Iowa Daryl G. Robinson, FCSI CCS AIA, Specifications Writer/Quality Assurance Manager Board of Officers (President) of the Crandic Chapter of the Construction Specifications Institute (CSI). Richard Dorzweiler, Retired University of Iowa Erin McGuire, Community volunteer Brianna Wills Brianna. Wills(a,,emailxom 70 Hickory Place Iowa City, IA 52245 Cell (319)383-1025 Education/Licenses: Bachelor of Arts in Communications (Advertising and Public Relations) and Political Science The University of Alabama Master ofBusmess Administration (MBA) Leadership and Communications focus (Dec. 2019) The University of Dubuque Certified Fund Raising Executive (CFRE) application pending Certificate in Nonprofit Management (June 2019) Iowa State University Teaching License (Substitute), State of Iowa 2018-2023 Experience: Executive Director March 2017-current Old Brick Iowa City, Iowa • Staff recruitment, training, yearly evaluations, all HR functions for staff of 6 • Budget management of $500,000+ yearly including all financial investments, depreciation, endowment creation, payroll • Develop 3 and 5-year strategic plans including budget projections, capital campaigns and facility needs • Extensive Grant writing for local, state, and federal money for historical preservation, programming, facility enhancement. Grant implementation including managing how the money is spent and accounted for within grant structure and final grant reporting • Facility management including as a "caretaker" of historic landmark (building is 163 years old) upkeep of building, renovation planning and acting as general contractor for renovation of spaces • Plan/Manage hundreds of events and programming each year at Old Brick including student groups, weddings, and education seminars, fundraisers, etc. • Creating community and collaboration between the 12 non-profit groups who are tenants within Old Brick including recruitment of new tenants • Act as the "Face" of the Old Brick organization for speaking engagements, community events and as liaison with external groups Iowa City Community School District January 2018-current Substitute Teacher Iowa City, Iowa • Substitute teach across the ICCSD in all grades and schools PK-126. The Leukemia and Lymphoma Society June 2016-2017 Campaign Manager Iowa —Light the Night and ManlWoman of the Year Campaigns Statewide (Iowa) • Manager two fundraising campaigns including all fundraising budgeting, logistics and special events across Iowa. • Light the Night campaign is a walk with over 2000 participants at Kinnick Stadium, 150 teams of family/friends, 100 volunteers, 20 sponsors and vendors, and over $175,000 fundraising goal. • Man/Woman of the Year Campaign includes identifying motivated individuals and helping them execute a fundraising campaign in competition with other candidates. Fundraising campaign goal over $350,000. Gala logistics for 500 guests. • Identifying/Empathizing with a sensitive population including children with cancer, families who have lost love ones to cancer, and current patients. The Salvation Army of Johnson County November 2014-2016 Director of Development & Community Relations Iowa City, Iowa • Strategic Planning for future improvements of fund raising and at -risk programming including website updates, and investigations of new ways of giving including text, on-line, and email engagement tools. • Grant Writing/Submission/Follow-up to support Food Pantry, Youth Programming, and Temporary Housing programs to local and national organizations. • Engage/Educate/Recruit volunteers from community partners/comp inies/organizations for donations, grants, volunteer hours, and increasing awareness of organization. (Chamber of Commerce, Rotary Club etc.) • Plan/Execute/Evaluate all fundraising activities including on-line, direct mail, annual giving, major gifts, planned/estate giving, walk-in, special events and Advisory Board giving. • Organize/Execute all stewardship activities including thank you notes, tax letters, phone calls and personal visits. • Recruit/Manage AdvisoryBoardmembers, run BOD meetings, communications. • Enhance/Create new programming to support at -risk youth/fnnilies and homeless populations • Organize and Manage 20 locations for the Red Kettle Bell Ringing holiday campaign including personnel and press coverage • Manage Johnson County Toys for Tots Campaign in partnership with the national Toys for Tots Foundation o Signage, advertising, recruiting eligible families, recruiting donors of toys, volunteer recruitment/organization, and grant writing to support toy efforts. o Schedule/Manage toy distribution event including 20,000 toys to families in Johnson County The Academy of Natural Sciences & Children's Museum March 2004-April 2005 Executive ProjectMonager/Special Exhibits Philadelphia, Pennsylvania • Manage all sub -group staff within Academy (Exhibits, Education, Membership, Marketing etc.) to form a cohesive message and strategy relating to each exhibit with specific targets and goal -driven strategy (7 department heads with 3- 5 staff reports each) • Grant Writing and reporting to Foundations/Organizations/Government that funded exhibits and events • Meet/Engage/Collaborate with civic organizations (Convention/Visitors Bureau, Chamber of Commerce), to create, plan and co -fund events with mutual benefits to enhance awareness and attendance to museum and exhibit with internal and external staff and planning committees • Manage/Allocate Exhibit budget and grants ($2.2 million) across entire Academy including Public Programs, Special Events, Membership, Operations, Facilities, and Guest Services with strict adherence to grant specifications & budget • Plan/Manage all special events including exhibit opening galas with 300+ attendance with Gala Committee • Develop public programming both educational and entertainment based to attract audiences to exhibit/museum and work with Speakers Bureaus to book national talent as dictated by grants/funding • Manage $500,000 worth of media placement; create/manage marketing materials (brochures, email, letters, ads on radio, TV and print.) • Oversee Exhibits Department during design and installation of exhibits with eye towards future exhibit installation options Valley Forge Military Academy and College Jan. 2003March 2004 Director of Annual Giving and Special Events Wayne, Pennsylvania • Develop/Plan/Implement/Re-imagine all fundraising activities/campaigns/programs • Mange a professional staff of 5 with an additional large pool of part-time workers and volunteer base • Develop new programming to support fundraising, alumni engagement, staff and cadet recruitment and development • Identification/CWdvation/Solicitation of major gift prospects (capital, scholarship, annual, estate planning) via mail, phone and in person. • Created program to identify business partners and potential grant opportunities with additional program creation and management of new staff • Plan/Manage all special events for donors/alumni/parents including golf outings, 756 birthday gala (400+ attendees), recognition society balls, and Alumni Day/Homecoming events -Recruit/Manage/Train all volunteers and committees for special events (-150 volunteers) • Identify/Develop relationships with Board of Trustees and other VIP donors and friends to enhance organizations community relationships and future funding streams The University of Pennsylvania, School of Nursing (SON) Sept. 2001-Jan. 2003 Assistant Director of Donor Relations and Special Events Philadelphia, Pennsylvania • Planned/Managed all donor/stewardship events for the SON including VIP donor events, New Dean Receptions, and Alumni Day. • Implemented all stewardship activities including writing reports, events, prospect strategies, create cultivation pipeline of alumni, community members and students. • Coordinated/Recruited students, donors, volunteers, and alumni to participate in appropriate events leading into a cultivation cycle • Edited/Managed alumni publications including 24 page bi-annual alumni magazine and all donor letters/acknowledgements/reports Tierney Communications, Exelon/PECO Energy and Independence Blue Cross Accounts June 2000-Sept. 2001 Assistant Account Executive Philadelphia, Pennsylvania • Tracked/Planned spending and budget of multi -million -dollar ad campaign and accounts • Planned/Managed client and agency press events, coverage, and image • Developed/Implemented integrated marketing plans to meet clients' objective Recent Activities & Interest: SouthEast Jr High PTSO President Public Relations Chair, Special Populations Grant for Voting Access Johnson County Board of Supervisors, Planning and Zoning Commissioner Meals on Wheels Participant Iowa City Noon Rotary Johnson County Democrats Central Committee District Wide Parents' Organization (DPO), Co -President 2014-2015 Trustee, Kickers Soccer Club Iowa City Community School District Foundation Board, DPO Rep. 2014-2015 Iowa City Community School District Foundation, Parties for a Pwpose committee United Action For Youth (LAY), Festival of Flowers Committee Operation Backpack, HACAP Food Reservoir 100+ Women Who Care Iowa City Junior Service League, Holiday Home Tour -Chair and New Member Chair Herbert Hoover Elementary: PTA President 2013-2014 Neighborhood Park Planning Committee, City of Iowa City/Neighborhood Distinguished Young Women of Iowa Scholarship Program, VP -Board of Directors Iowa City Panhellenic Alumnae Council Iowa City Community School District Interview and Selection Committee Iowa City Community School District Advisory Committee on Magnet Schools Iowa City Community School District PERL Levy Committee Doula Non -Profit Organizations Housed within Old Brick Housing Trust Fund of Johnson County Agape Cafe Peace Iowa Iowa Shares United Nations Association of Iowa Iowa Policy Project Girls on the Run Days of the Girl Physicians for Social Responsibility Grace Church Beloved Community Initiative Resurrection Community Gerald and Lynne Partridge Family Foundation George Perry Family Foundation Veterans for Peace CRU 5uc essful �.i�ing Successful Living 2406 Towncrest Dr. Iowa City, Iowa 52240 Phone (319) 358-6800 Fax (319) 358-6807 HCDC: February 8, 2019 We have submitted 2 applications for CDBG/HOME grants. The City has some questions or concerns, which we address herein. One application is for a grant to rehab a house on Village Rd. for $75,000. • We want to be considered for a grant, either CDBG or HOME. We do not want a loan for this rehab project. We control our housing debt carefully (and associated cash flow), which is mostly mortgages plus one HOME loan for $50k (that we hope to have forgiven in five years, but that remains to be seen). • We already meet the city's Affirmative Marketing Plan. Other agencies and individuals who know of our mission and our client population of the mentally ill are always in the loop about our SRO vacancies. This is where we get our referrals. We have Fair Housing signs up and encourage diversity. • Our client population has always been hard on houses, and repairs take time, which requires down time until repairs are completed. Historically this is how things have gone for us and this is why our "loss" rate is high. • Similarly, repairs are costly and fairly frequent. See above about client population being hard on houses. Additionally, our houses are getting to the age where to be maintained, money must be spent. • Our operating exp is what it is, high or not. It's possible perhaps some utilities got mixed in there instead of being in misc oper expense. If awarded funds the City has already asked our pro forma be re -stated and any misclassification will be addressed at that time. This will not affect the bottom line however. • We need a grant, not a loan of any kind, to proceed with this rehab. • It's noted we have grant funds we have not used yet. For rehab that has taken so long, these unused funds are for one house which is being treated by the City as historically preserved, and it has taken a great deal of time between breaks in the weather last year and this year to plan, get bids and start the work. This project will be done as the weather improves and the last of the work will get finished. Our other application is for down payments grants on four new affordable housing purchases, $240,000. • There is a question or concern from the city about rehoming tenants. We buy 4 bedroom houses. Then we add a fifth bedroom subsequent to purchase. This has become our model the past few years and it works well. We have never bought o home that was occupied and would never enter into an agreement where we had to re -home tenants. • It was pointed out that we still have funds left to spend from previous years. One of those grants is a rehab project on an historically preserved house, and it has simply taken a long time to get it �1 5uc essful �.i�ing Successful Living 2406 Towncrest Dr. Iowa City, Iowa 52240 Phone (319) 358-6800 Fax (319) 358-6807 all planned and work started due to its preservation status. But it's coming along and will be completed soon. • And, yes, we still have two more houses to buy this year with previously awarded grant funds. We did close on one the end of December and we will purchase the final two houses before the start of the new fiscal year, which will use up all of our prior HOME funding. We are actively looking. Afterthese two houses are bought, we will continue to aggressively lookfor house purchases in the new fiscal year, with the new HOME funds awarded us in this round, putting forth greater effort than ever as more homes become available for sale as winter winds down. • We prefer HOME funds to avoid the conflict of interest: one board member helps us buy homes and gives us a break on his commission. CDBG would not allow him to earn any commission. We believe he deserves some payment, and therefore prefer to be awarded HOME funds. Previously in using CDBG funds, this board member forfeited all commission despite the hours he and his staff put in, which we would like to avoid. If we do get awarded CDBG funds instead of HOME, we still want the grant, and would perhaps engage another Real Estate agent not otherwise associated with our agency. • We already meet the city's Affirmative Marketing Plan. Other agencies and individuals who know of our mission and our client population of the mentally ill are always in the loop about our SRO vacancies. This is where we get our referrals. We have Fair Housing signs up and encourage diversity. • When we add a 51h bedroom we never spend in excess of $20k-$25k, so we are not subject to Davis Bacon or other HUD rules that kick in when rehabs exceed $100k. • Our agency does not pay property tax and we make that known to the county auditor upon purchase. There have been occasions when previous owners perhaps paid in arrears and we made one final payment after purchase, but not every time. We have never included this in our pro formas on grant applications, but can add it in if required. • Our client population has always been hard on houses, and repairs take time, which requires down time until repairs are completed. Historically this is how things have gone for us and this is why our "loss" rate is high. • Similarly, repairs are costly and fairly frequent. See H3 above about client population being hard on houses. Additionally, our houses are getting to the age where to be maintained, money must be spent. • If our operating exp appears high, it's possible some utilities got mixed in there instead of being in misc oper expense. If awarded funds the City has already asked our pro forma be re -stated and any misclassification will be addressed at that time. This will not affect the bottom line however. And we are applying for GRANTS, not loans. • The City has noted that in the past we had one down payment grant that benefited fewer than planned beneficiaries. This was actually the first two grants awarded to us, and in our application we asked, frankly, for too little. Then there was a delay in receiving funding due to the presidential election and HUD difficulties until October of 2017. By the time we began looking in the Spring of 2018, Iowa City houses were selling very quickly at higher than expected prices (much higher than we thought). That is when we asked for these two down payments to .2 5uc essful �.i�ing Successful Living 2406 Towncrest Dr. Iowa City, Iowa 52240 Phone (319) 358-6800 Fax (319) 358-6807 be combined into one for a total of $87,000 for a single house, which we bought as soon as possible. We do not expect this to happen again. • All past granted and loaned City funds will be utilized by 7/1/19. Hills bank has also affirmed their support for the respective house purchases. Kind regards, Carla J. Phelps Director, Grants & Development Successful Living '3 Application Information C7 Select Language I Aid to Agencies provides flexible operational funding for nonprofits. Applications are due Tuesday, January 18, 2019 at noon. This application is for "emerging" agencies, those that have not existed as a legal entity for at least 2 years or have not received A2A funds in any of the last five years. $19,000 is estimated to be available this year. Each agency is eligible to apply for up to $15,000. No award will be made for less than $5,000. Please submit one project proposal per application. Questions can be directed to Neighborhood Services at kirk-lehmann@iowa-city.org or 319-356-5230. For additional assistance, City staff will hold office hours to help applicants complete applications from 9:00 am — 11:00 am on January 2, 4, and 8 in Iowa City City Hall, Department of Neighborhood and Development Services (410 E. Washington Street, Iowa City). Additional assistance, and hard copy applications, are available upon request." Project Name * Redevelopment of Forest View Mobile Home Park Total amount of funds requested* $ 15,000.00 Applicant Name Rafael Morataya Applicant Organization Center for Worker Justice of Eastern Iowa Applicant Address* Street Address 1556 1 st Avenue #C Address Line 2 City Iowa City Fbstal / Zip mde 52240 Signature * ��r�/ta.C7lrf� Contact Person* Barbara Ziegler Phone Number* 319-338-0142 Email* barbara@cv�iowa.org State / Province / I Lgion IA Ccurrhy USA Indicate your organizations corporate status* 6 Non-profit O For -profit O Other Years in business* 6 Has the applicant received Cityassistance in the last five years?* O Yes O No In those five years, has any City assistance reverted to the Citydue to non -expenditure of funds* O Yes r No Is the applicant currently in compliance with all federal, state and local laws, rules and regulations including any CDBG and/or HOME funded projects? (including partners, co-applicarits, etc.) O Yes O No O Currently in litigation Project Information Need & Priority The City Steps Plan guides funding within the community that benefits low -moderate income persons by creating jobs, improving housing, and providing services. You can find a copy of City Steps at www.icgov.org/actionplan. Brief summary of proposed project* United to 2000 characters Two years ago, residents of Forest View Mobile Home Park realized developers had bought their land and planned a newcommercial development. Instead of waiting and worrying, the residents took action. They organized the Forest View Tenant's Association with support from the Center for Worker Justice, drafted principles for a just development, and demanded a voice in the process. Since then, a committee of dozens of residents have met at least monthly with developers to negotiate over the details of their new neighborhood. The joint agreement now being considered by the Planning and Zoning Commission includes plans for new modular homes for all current mobile home residents at similar rents to their current lot rent, a rent -to -own option, and other provisions that the tenants' association has worked hard to achieve. This is an important model for a more just affordable home development process. Whythis project is needed?* United to 2000 characters Early in this process Forest View residents adopted the following statement. This project will lead to the realization of the vision expressed by the residents. "The residents of Forest View area tight -knit community. Many of us have lived here for years. We take care of each other, and we believe a just development must give all current residents the option to stay. There is a severe housing crisis in Iowa City; forcing any number of residents out leaves them at risk of homelessness. The trailers in Forest View are our homes. We bought them, invested money in maintaining them, raised our families in them, and had expected to stay in them. But they are also very old, do not comply with modern safety codes, and are in no shape to be moved. If our community must be relocated as part of a new multi- million dollar development, the end result should include safe and sustainable homes that can last. We would particularly like to explore the possibility of developing a complex of small houses, with financing that current residents could afford. This could provide a sustainable alternative for low-income housing in our area, and would be a step toward addressing Iowa City's housing crisis." How does it fill a gap in the community?* United to 1500 characters The residents of Forest View- about 500 people (130 families) will benefit directly from preserving affordable homes in their current neighborhood, keeping their neighborhood together, improving their living conditions, and newaccess to the option of home ownership. They will also benefit from working on this project by strengthening their relationships with local elected officials, empowering themselves to make improvements in the community, and expanding their local community alliances How does it address the goals of 2016-2020 CITY STEPS? United to 1500 characters This project relates directly to the section of the 2016-2020 CITY STEPS plan that describes the expansion of economic opportunities through more jobs paying self-sufficient wages, homeownership opportunities, development activities that promote long-term community viability, and the empowerment of low- and moderate - income persons to achieve self-sufficiency. It addresses several important long-term issues in the community: 1) critical lack of affordable housing in the area, 2) health and safety of residents in our deteriorating trailer park communities 3) barriers to home ownership for low-income and migrant workers, and 4) lack of tenant voices in local housing and development planning. Additional Documentation Rease submit no more than 7 additional pages CWJ Spring Summer 2018 Newsletter.pdf 4.71MB Resources & Feasibility i ■ Provide a budget breakdown for your specific program. Include only costs directly related to the program. For example, providing a specific service should include the total estimated costs and available resources, broke out by general categories such as salaries, materials, office expense, marketing, etc. If required by local and/or federal regulations, include the cost of an audit. Document costs whenever possible. Budget Breakdown Use of Funds City Funds Other Funds Source of Other Type Status Funds Organization expenses $ 5,000.00 $ 7,000.00 Grants, Cash Committed including communication, donations from interpreters, childcare and affiliate and space rent individual supporters and reserve savings Staff compensation $ 10,000.00 $ 7,000.00 Foundation grant Cash Committed City Funds Total $ 15,000.00 Documentation of Costs Labor Breakdown Type Description Hours Unskilled 20 Forest View 960 Tenants' Association members' 2 hrs per meeting' 24 monthly meetings Total Labor Cost $ 9,696.00 Other Funds $ 14,000.00 Per Hour Rate Total Cost $ 10.10 $ 9,696.00 If volunteers are used, please describe how these volunteers are utilized for the proposed activity. United to 1000 characters All public service projects are required to expend their full award and complete the proposed project bythe end of the fiscal year (June 30, 2020). Will you be able to meet this requirement? r Yes f No Impact & Community Benefit Please indicate the population to be served by the proposed program according to the linked income categories. If requesting money for a specific administrative expense (like a staff member's salary), indicate the population served by your entire agency. (Please Note: If funded, this information voII be used as income targeting for your Agreement). Income Breakdown ............... Median Income Number of Persons 0 - 30% 120 31 - 50% 90 51 - 80% 15 Over80% 10 Total Persons 235 Percent LMI 95.74 Percent Iowa City Residents 100 Please describe the basis or methodology used to estimate the number of clients to be served (?) United to 750 characters Estimates based on statements of residents and preliminary survey of residents. CENTER FOR WORKER JUSTICE OF EASTERN IOWA RAISING VOICES, TAKING ACTION President Sergio Irund A -wan Vice President Marcela Hurtado Eastham Nicole Novak Board Members Ali Ahmed Ana Cano Bradarie Djeugang Elizabeth Bernal Fanai Galicia Father Rudy Juarez Fatima Saeed Irma Botello Margarita Baltazar Maria Cachua Pastor Tony Smith Robin Clark -Bennett Royce Peterson Scott Smith itact us! S. Gilbert Ct I City, IA 52240 ne:(319) 594-7593 dl: info@cwjiowa.org INNEWTON - Supporting Workers Striking for Safety and Dignity in Construction Spring and Summer 12o18 IN JOHNSON COUNTY —Partnering with Local Officials to Advance the Struggle for Living Wages IN CEDAR RAPIDS Calling on Senators to Stop Terrorizing Immigrant Families The Center for Worker Justice of Eastern Iowa (CV✓J) unites low -wage workers across race, ethnicity, and immigration status to pursue social and economic justice through education, leadership development, issue -based organizing, direct services, and community alliances. CWl is a 501(c)(3) organization. All donations are tax-deductible When the state legislature passed a law last year barring local minimum wage laws and rolling back the Johnson County minimum wage, we pledged to keep moving forward together. We're doing just that! As a result of our outreach last year, 16o businesses pledged to voluntarily honor the local $1o.10 minimum. This spring, county supervisors agreed to 441 es move forward with the provision in our county minimum wage law that calls for officials to assess the Consumer Price Index each year, and raise the local minimum wage accordingly. On March 29, the Johnson County Supervisors approved a 17 cent increase, raising the wage to $10.27 per hour. While state law bars the county from enforcing this minimum, their action sends a strong message to area employers. County supervisors have also passed an ordinance putting all county workers on a path to a $15 minimum wage by 2019. CWJ members are now reaching out to city officials in support of $15 minimum wage ordinances for city employees, and minimum wage laws governing businesses that apply for TIF and other city economic development funds. Early in the morning of June 15, workers of Bridge City construction based in Ottumwa declared a strike at their Newton jobsite, to protest dangerous and unjust working conditions. CWJ leaders traveled to Newton to support them, and have connected the workers with allies around the region. Two years ago, residents of Forest View Mobile Home Park realized developers had bought their land and planned a new commercial development. Instead of waiting and worrying, the residents took action. They organized the Forest View Tenants' Association with support from CWJ, drafted principles for a just development, and demanded a voice in the process. Since then, a committee of dozens of residents have met at least monthly with developers to negotiate over the details of the new development. The joint agreement being considered by the planning and zoning commission includes plans for new modular homes for all current mobile home residents at similar rents, a rent -to -own option, and other provisions that the tenants' association has worked hard to achieve. This is an important model for a more just development process. Watch for updates as this enters its final phase! BRIDGE CITY CONSTRUCTION PUTS PROF=1 TS OVER tlRKER5-SAFETY The workers are protesting the samev- conditions that CWJ is confronting F a;, F,,; across the region —unsafe jobs withoutirl proper training or equipment, failure to provide workers' compensation payments for injured workers, misclassification of workers as "independent contractors" to avoid complying with basic workers' rights, low wages, and unlawful deductions from workers' pay. Bridge City workers have built schools, medical facilities, and local businesses —our communities need to do more to ensure that the construction companies we hire are honoring workers' basic rights. Join us in supporting these brave workers! Contact them at tristateworkerscoalition@gmail.com for updates. In our small Iowa cities and towns, our success and survival depends on each other. On neighbors helping neighbors in times of need. On young families revitalizing shrinking rural communities. On co-workers banding together for dignity, to ensure our rights are respected, and so we all come home safely at the end of the day. Regardless of where we were born, or what language we grew up speaking, the residents of our communities take care of each other. These are core Iowa values, and the values that CWJ was created to defend. In the face of attacks on immigrant communities, we are fighting back with solidarity. We have seen firsthand the destruction that comes from criminalizing immigrant workers. It terrorizes families, makes witnesses or victims of crime afraid to call police, gives unscrupulous employers enormous power to intimidate workers, and weakens our entire community. It doesn't have to be this way —by organizing for positive change on a local and state level, we can win the just immigration reforms for our nation that are long overdue. CWJ Immigration Committees Since 2017, members of CWJ have led monthly meetings with community allies to discuss changing immigration policies and strategies for defending human rights. Out of these discussions, we formed the Family Support team, the Rapid Response team, and the Legal team. The Family Support team has assisted local families impacted by immigration detention and deportation. They have provided assistance with food, childcare, and transportation, and have shown up to witness immigration proceedings. These are immediate and vital needs of children and families in crisis. The Rapid Response team has advocate for change with elected officials, and is involved in emergency planning. In January they organized a meeting with staffers for Senators Ernst and Crassley to demand a "clean" DREAM Act. They recently held a Know Your Rights workshops about the rights of immigrants and witnesses in interactions with immigration officials. Finally, the legal team has met with local attorneys and organized a Visitation Program to talk with detained immigrants in the Hardin County jail. Similar programs exist around the country, to break the isolation detained immigrants experience, and provide information about service providers around Iowa. Responding to the Mt. Pleasant Raid On May 9, ICE agents swept into Mt. Pleasant with helicopters, dogs, and tasers to round up 32 peaceful workers from their jobs at a concrete factory. Most were fathers who had come to the U.S. fleeing violence in their home countries, working hard to give their kids a better life. None were accused of being a risk to anyone. They were shackled and taken to jails across the region, and kids were left traumatized. But that same evening, Iowans responded. People from across the state drove to the ist Presbyterian Church in Mt. Pleasant, which was soon packed with people offering support, skills, and donations. CWJ staff and volunteers were on the scene from the first night, contributing language skills, organizing experience, and ally networks. We are proud to stand with IowaWlNs, AFSC, DREAM Iowa, LULAC, TeamCAN, UFCW, Eastern Iowa Bond Project, Catholic Diocese of Davenport, and so many others who have provided support in Mt. Pleasant. The damage is deep, ongoing, and far from repaired. But by building a statewide network, 24 of the 32 men were released on bond to their families and have a hope of due process. To find out how you can support the families of workers detained in Mt. Pleasant, contact lowaWINS at iowawinsrnp@gmail.com. In 2o18, we welcomed three new members to our board of directors! CWJ member Elizabeth Bernal is a longtime leader in our community. She was involved in the early organizing efforts that established the Center for Worker Justice, and has been an affordable housing activist involved in Habitat for Humanity. She also takes care of Iowa City area children as a school cafeteria worker. Nicole Novak has worked with CWJ for years as a researcher and volunteer. She led groundbreaking research on the impact of the Johnson County Community ID, which has helped CWJ members and county officials identify ways to build on the program's strengths and fill remaining needs. She conducted presentations with CWJ President Irund A -wan for communities across the region, so others can learn from this historic program. Pastor Anthony Smith of the New Creations International Church is a respected local leader with a passion for social and economic justice. He has partnered with CWJ on many projects —including the struggle to raise and defend the Johnson County Minimum Wage, organizing with Rose Oaks residents who were evicted from their affordable housing, and faith -based organizing for social justice. He has also spearheaded the formation of the Johnson County Interfaith Cluster, organizing faith leaders to confront racism and discrimination. President Irund A -wan has been re-elected to lead the organization for another term, together with Vice - President Marcela Hurtado and newly -elected Treasurer Charlie Eastham and Secretary Nicole Novak. Everything CWJ does is possible because of volunteers like you —who contribute ideas, energy, skills, time, and financial resources toward achieving a more just and inclusive community. Stop in at our office or website, email or call, to find ways you can join our movement! BECOME A SUSTAINING DONOR Sustaining donors who make a monthly donation to CWJ play an essential role in helping to ensure that we can keep our doors open and our work for justice moving forward. BECOME A VOLUNTEER We are always looking for volunteer interpreters, child care providers for meetings, artists, and organizers. Let us know if you have skills you would like to contribute! ATTEND OUR MEETINGS AND EVENTS Check out our website www.cwjiowa.org for a calendar of upcoming meetings and events. GET INVOLVED IN ONE OF OUR COMMITTEES You can get involved in the Housing Committee, the Immigration Response Team, the Finance Committee, the Minimum Wage campaign or other projects of CWJ by calling or emailing the CWJ office. Thank you! If you are interested in getting involved with us, our contact information is on the front page. Project name: Grow: Johnson County 2019 Production Total funds requested: $15,000 Applicant name: Jake Kundert Applicant organization: Iowa Valley Resource Conservation and Development Applicant address: 920 48th Ave, Amana, Iowa 52203 Contact Person: Jake Kundert Authorized submission by Jake Kundert Phone number: 319-622-3264 Email: jake@ivrcd.org Organization corporate status: non-profit Years in business: 20 Has the applicant received city assistance in the past 5 years? No Has the applicant received city assistance in the past 3 years? No Please provide evidence of your organization's capacity, financial skills, commitment and/or experience to implement the proposed program or service within the established timetable and budget.* (2,592/4000 characters) Iowa Valley Resource Conservation and Development (IVRCD) has been a leader in creating and revitalizing the regional food system. IVRCD Deputy Director and Grow: Johnson County Production Manager, Jason Grimm is a key player in supporting local food growth in Iowa and is engaged not only within the IVRCD's project region, but also in surrounding counties, statewide, and at a national level for research and program advocacy. IVRCD Food Systems Director and Grow: Johnson County Program Director Jake Kundert has over eight years experience leading specialty crop research, farmers market manager training, farm and food systems projects, and food entrepreneurship development. Grow: Johnson County Packshed and Distribution Manager Michi Lopez has experience in educating volunteers & community members about cultivation and harvest activities. All three project staff have extensive, real -world experience with fruit and vegetable farming, both in their personal and professional lives. IVRCD has stability as an organization (20 years in operation) and uses best practice regarding organizational and program records, finance, and administration including a third party CPA (Terry Lockridge & Dunn) and a Professional Employment Organization (Aureon HR) to support personnel/human resources, administer benefit plans, process payroll, and file payroll taxes. IVRCD has insurance coverage for staff and volunteers. The Grow: Johnson County program has had three successful production seasons leading up to this year. Each year capacity and efficiency has increased, as well as the diversity of food and the overall pounds of food distributed. Over time, the team has developed better tracking, training, and field systems. The first three production years the team sought and secured funding for the necessary equipment and small machinery to allow for production at a four -acre scale including a tractor, a large walk-in cooler, hand tools, and a suite of distribution supplies like large wash bins. The plan for 2019 production is based on experience, records, and demonstrated need by the 15 partner agencies (11 of the 15 are within Iowa City) and supported by already secured assets. The Grow: Johnson County program has diverse financial backing from local and regional grants, corporate giving programs, and consistent support of the local county government all of which contribute towards long-term sustainability. The Johnson County Board of Supervisors has been a vocal supporter of Grow: Johnson County since its inception, and continues to provide yearly financial support. Is the applicant currently in compliance with all federal, state and local laws, rules and regulations including any CDBG and/or HOME funded projects? Yes Summary of project (1751/2000 characters): Iowa Valley RC&D is requested $15,000 from the City of Iowa City's Emerging Aid to Agencies to fund the remaining need for Grow: Johnson County's 2019 Production. The production project for 2019 includes collaboration and research with 15 partner agencies, crop planning, recordkeeping, and volunteer recruitment/training. It also includes all of the field work such as cultivation, weed management, harvest, processing in accordance with USDA Good Agricultural Practices, and distribution to agencies. In 2018, Grow produced 16,000 pounds of food or an estimated $45,000.00 of fresh, local, organic food-- or the equivalent of 80,000 servings --at no cost to our partner agencies. This 2019 Production project will match, or exceed, the amount and value grown in 2018. Grow: Johnson County Program (Grow) is a hunger -relief and educational farm program of located on the Johnson County Historic Poor Farm in Iowa City, IA. This program aims to improve healthy food access for our community's most vulnerable residents as well as equip aspiring growers with organic food production skills. Using four acres of county land, Grow: Johnson County freely provides 100% of its organic produce to local hunger relief and social service agencies including food pantries, shelters and rehabilitation centers, free meal sites, home delivered meals, child care centers, and refugee and immigrant support centers. Grow also provides hands-on opportunities for community members of all ages and abilities to become involved with local food production. Currently, Grow: Johnson County's charitable food production takes place from May through October. Since the program's first growing season in 2016 over 50,000 Ibs of produce have reached our neighbors in need. Why is this project needed (1518/2000 characters): The Grow: Johnson County program was created to address local need for high quality, fresh, and nutritious produce at social service agencies. Of the 19,500 Johnson County residents who are considered to be food insecure, 54% rely on food assistance agencies for half or more of their food (Feeding America, 2017; Johnson County Hunger Task Force, 2016). During the growing season, Grow provides partners with organic foods weekly that, otherwise, are not readily accessible. Of Grow's fifteen partners, eleven of them are located in Iowa City: Crisis Center, IC Compassion, Shelter House, Domestic Violence Intervention Program, the Iowa City Free Lunch Program, the Neighborhood Centers of Johnson County, Field to Family, the Bloomington HACAP Head Start, the Waterfront HACAP Head Start, Salvation Army, and the Food Pantry at Iowa. Good nutrition is one of the keys needed in order to live a healthy life. By freely providing fresh, local, organic food to our neighbors we are fighting food insecurity and providing access to healthy foods. Healthy food access continues to be a significant barrier to our neighbors in need. Demand for Grow's produce is at an all-time high. Surveys completed in November/December of 2018 with program partners showed that 75% requested an increase in production and distribution to better meet their customers needs. Partners also provided feedback on the produce profiles they received so that the Grow team can better tailor distribution to meet the individual agency needs. How does it fill a gap in the community (1005/1500 characters): Grow's production of food provides a reliable source for fresh produce and the addresses a need for food production knowledge among aspiring growers. Grow: Johnson County strives to be a client -driven program, which is why the production process has been specialized on foods that are in high demand at local agencies. For example, local food pantries are often supplied with surplus cucumber, but are rarely offered client -favorites like watermelon, potatoes, onions, collards, and okra. By tailoring the production method to the community's needs, Grow: Johnson County provides produce that is not always accessible at food assistance sites, ensuring value to our partners by not duplicating services provided elsewhere. More often than not, food assistance agencies can only offer their clientele items that have been donated. Grow supports local food sovereignty by providing partner agency clientele with food that they want to eat and by working to give them a voice in the production process. How does it address the goals of 2016-2020 CITY STEPS (972/1500 characters): The Grow: Johnson County 2019 Production project helps accomplish Goal 7 - Provide Public Services - in the Iowa City Steps Iowa City's Five Year Consolidated Plan for Housing, Jobs, and Services for Low Income Residents (2016-2020). Goal 7 is to "Increase the effectiveness of physical investments that improve conditions for the elderly, youth, low-income persons, and other special populations." The 2019 production project will distribute at least 16,000 pounds of local, fresh, organic, and free food to partner agencies (the equivalent of $45,000.00 or 80,000 servings). These agencies serve low to moderate -income (LMI) residents, households with incomes less than 50% of the area median income (AMI), and those with extremely low -incomes (less than 30% of AMI). They also serve special needs individuals including at -risk children and youth, low-income families, the homeless and persons threatened with homelessness, the elderly, and persons with disabilities. [Budget and Labor Breakdown] Budget Breakdown Use of Funds City Funds Other Funds Source of Other Type Status Funds Grow Personnel $ 15,000.00 $ Cash : Uncommit: X Grow Personnel $ $ 26,000.00 Johnson County Cases Committee: X Grow Personnel $ $ 3,775.00 United Natural F Cash : CommiHec: X Grew Personnel $ - $ 5,900.00 Blooming Prairie Cash CommiHec : X Food Distribution $F $ 3,900.00 Table to Table In -Kind Committer: X Transplants and Seeds $ $ 4,000.00 Johnson County Cases : CommiHer: X Fuel and Supplies $ $ 1,000.00 Frontier Co-op Cash Committer: X Production Volunteers $ $ 14,200.00 Production Volun In -Kind : Uncommit: X Equipment $ - $ 5,000.00 Theisen's Cash Uncommit: X (Equipment $ $4,500.00 Farm Credit San Cash Unwmmit: X Add City Funds Other Funds Total $ 15,000.00 $ 68,275.00 Please list anticipated dates uncommitted funding is expected" July 1 st 2019, City of Iowa City Emerging Aid to Agencies Volunteer times is distributed over season. Labor Breakdown Type Description Hours Per Hour Rate Total Cost Skilled : Jason Grimm - ❑ 156 $ 26.00 $ 4,368.00 X Skilled : Jake Kundert- F 595 $ 2200 $ 13,090.00 X Skilled Michi L6pez-Pa 1,570 $ 15.00 $ 23,550.00 X Unskilled : Seasonal Produc 879 $ 11.00 $ 9,669.00 X Volunteer : Production Volur 576 X Add Total Labor Cost $ 50,677.00 *Descriptions Jason Grimm - Deputy Director Jake Kundert - Food Systems Director Michi Lopez - Packshed and Distribution Manager Production Volunteers If volunteers are used, please describe how these volunteers are utilized for the proposed activity. (631/1000 characters) Grow: Johnson County leverages volunteers to assist in all aspects of our food production system. Under the guidance of experienced production staff, volunteers help seed, plant, weed, harvest, wash and package produce, and maintain production areas. Each spring, the production team holds a volunteer orientation and food safety training to ensure that everyone involved in Grow's produce operation is familiar with the farm's food safety standards. Volunteers range from individuals to large groups and their is no age limit, no needed experience or background, and no special abilities required to be a volunteer with Grow. For example, groups who contributed in 2018 included Johnson County Master Gardeners, C.H. Robinson, and the University of Iowa first year law and public health students. Impact and community Benefit --estimate the number of clients to be served and their median income Impact & Community Benefit Please indicate the population to be served by the proposed program according to the linked income categories. If requesting money for a specific administrative expense (like a staff member's salary), indicate the population served by your entire agency. (Please Note: if funded, this information will be used as income targeting for your Agreement). Income Breakdown Median Income Number of Persons 0 - 30% 25 31 - 50% 25 51 - 80% 25 Over 80% 25 Total Persons 100 Percent LMI 75.00 Percent Iowa City Residents 70 Please describe the basis or methodology used to estimate the number of clients to be served (393/750 characters) The Grow: Johnson County Program is partnered with 15 agencies, several of which do not take demographic data for various reasons. Currently, Grow is not directly involved with clientele services and and therefore does not collect data. Feedback from partner agencies regarding Grow produce consumed is very positive, with only a few instances of produce having to be discarded which means that nearly all of the produce delivered is taken home by clientele. In 2018, records show $45,000 of Grow produce (an equivalent of approx. 80,000 servings) was consumed by community members in need. T 1-16-19 IOWA'S ORIGINAL FOOD RESCUE ORGANIZATION Department of Neighborhood and Development Services 410 E. Washington St Iowa City, Iowa Dear City of Iowa City Housing and Community Development Commission: On behalf of Table to Table I am pleased to offer my support for the Iowa Valley Resource Conservation and Development (IVRCD's) proposal, "Grow: Johnson County" to the City of Iowa City's Emerging Aid to Agencies Grant. This proposal seeks to fund Grow: Johnson County's efforts to provide fresh, organic produce to food assistance organizations, like Table to Table that serve thousands of food insecure individuals in our community. We've had a growing partnership with IVRCD and their Grow: Johnson County project for three seasons. This growing season, the Grow: Johnson County farm donated nearly 13,000 Ibs of free organic produce to Table to Table. We distributed that produce to 15 local agencies who serve more than 15,000 hungry people annually. The agencies we serve have very few sources of fresh fruits and vegetables. Providing produce to our partners is our priority and with vegetables from Grow, we've been able to increase the amount of produce we distribute by 30% during the summer. Our work with the Grow farm is truly a well -matched partnership. Table to Table already has the distribution network in place to reach thousands of Johnson County residents. Grow: Johnson County is producing the very type of food that our clients most need. Each year they assess the needs of the community and plan their crop according to the feedback of the people they serve. This helps Table to Table fill the gaps in our distribution network, enabling us to meet food needs not met by other sources or organizations. We envision our partnership continuing with the support of the Emerging Aid to Agencies grant. Emerging Aid to Agencies funding for the Grow: Johnson County project. Table to Table is committed to working with Grow: Johnson County to provide good food for all in our Iowa City community. We look forward to working with project lead Michi Lopez in this pursuit. Sincerely, Nicki Ross Executive Director Table to Table #11^ the Crisis Center your first cal I in johnson county January 16, 2019 The Crisis Center of Johnson County 1121 Gilbert Ct Iowa City IA 52240-4528 www.jccrisiscenter.org Department of Neighborhood and Development Services 410 E. Washington St Iowa City, Iowa Dear City of Iowa City Housing and Community Development Commission: 24 Hour Crisis Line (319) 351-0140 Food Bank (319) 351-0128 Business Line (319) 351-2726 Fax (319) 351-4671 On behalf of The Crisis Center of Johnson County, I am pleased to offer my support for the Iowa Valley Resource Conservation and Development (IVRCD's) proposal, "Grow: Johnson County' to the City of Iowa City's Emerging Aid to Agencies Grant. This proposal seeks to fund Grow: Johnson County's efforts to provide fresh organic produce to food assistance organizations, like The Crisis Center Food Bank, that serve thousands of food insecure individuals in our community. As Food Bank and Emergency Assistance Director at the Crisis Center, I have seen firsthand the impact Grow: Johnson County has on local nonprofits. While the Crisis Center Food Bank receives a lot of produce during the growing season, several things set apart the donations from Grow: • The produce is picked and distributed within a day, so it is very fresh; • The produce is high quality, herbicide- and pesticide -free, and picked at the right time in its growth, so it looks beautiful and is at peak nutritional content; • They grow a wide variety of fruits and vegetables to meet diverse requests; and • Grow: Johnson County consults with recipient agencies to find out what we most need, so we can best meet the needs of our clients. For instance, last year, they planted and produced more okra and onions for recipients, because those were two items we said we needed in higher quantities. If Grow: Johnson County receives this grant, it will allow them to continue providing an impressive quantity and variety of fruits and vegetables to agencies in Iowa City allowing us to provide nutritious food to people in need. The Crisis Center is committed to working with Grow: Johnson County to provide good food for all in our Iowa City community. I look forward to working with project lead Michi Lopez in this pursuit. �Siinnc�ere®ly, I.^ " lJau& &Va^�'l.�wwV Sarah Benson Witry Food Bank & Emergency Assistance Director The Crisis Center of Johnson County Hawkeye Area Community Action Program, Inc. IA January 9, 2019 N, Department of Neighborhood and Development Services 410 E. Washington St Iowa City, Iowa Dear City of Iowa City Housing and Community Development Commission: On behalf of HACAP Head Start we are pleased to offer our support for the Iowa Valley Resource Conservation and Development (IVRCD's) proposal, "Grow: Johnson County" to the City of Iowa City's Emerging Aid to Agencies Grant. This proposal seeks to fund Grow: Johnson County's efforts to provide fresh organic produce to food assistance organizations, like HACAP Head Start, that serve thousands of food insecure individuals in our community. HACAP Head Start provides preschool and child care for toddlers and preschoolers in Johnson County who come from low income families. It is important that we provide the children healthy meals and snacks while they are in our care in order to optimize their growth and learning potential. We also consider the impact the provision of nutritious meals has on families, as children are exposed to a variety of nutritious foods that they might not otherwise learn to enjoy. Grow: Johnson County supports these efforts by weekly donations of fresh organic produce to HACAP Head Start through Table to Table. HACAP Head Start is committed to working with Grow: Johnson County to provide nutritious food for all in our Iowa City community. We look forward to future opportunities to collaborate with Grow: Johnson County. Sincerely, Libby Underwood HACAP Head Start Nutrition Manager Jennifer Kindon HACAP Head Start Waterfront Assistant Supervisor Jane Drapeaux Corporate Office: Chief Executive Officer 1515 Hawkeye Drive • Hiawatha, Iowa 52233 ph: 319.393.7811 • fax: 319.393.6263 • www.hacap.org An Equal Opportunity Agency •A United Way Member Agency Upon attempt to submit the following popped up. Laserfiche Forms has encountered a problem. The function 'MULTwas given an invalid number of arguments. tLFF1 a06-I nvalidArgumentCount] This application was submitted as a PDF to Kirk Lehmann via email at 12:07pm. Application Information Aid to Agencies provides flexible operational funding for nonprofits. Applications are due Tuesday, January 18, 2019 at noon. This application is for "emerging" agencies, those that have not existed as a legal entity for at least 2 years or have not received A2A funds in any of the last five years. $19,000 is estimated to be available this year. Each agency is eligible to apply for up to $15,000. No award will be made for less than $5,000. Please submit one project proposal per application. Questions can be directed to Neighborhood Services at kirk-lehmann@iowa-city.org or 319-356-5230. For additional assistance, City staff will hold office hours to help applicants complete applications from 9:00 am — 11:00 am on January 2, 4, and 8 in Iowa City City Hall, Department of Neighborhood and Development Services (410 E. Washington Street, Iowa City). Additional assistance, and hard copy applications, are available upon request." Project Name * Starting a Clean Energy District in Iowa City Total amount of funds requested* $ 12,000.00 Applicant Name * Craig Mosher, Cheryl Miller, Martha Norbeck, GT Karr, Rob Novak Applicant Organization * Johnson Clean Energy District (JCED) Applicant Address* Street Address 115 Prairie Hill Lane Address Line 2 City Iowa City Fbstal / Zip Code 52246 Signature Contact Person* Craig Mosher Phone Number* 563-380-5854 Email* craig.r.mosher@gmail.com Indicate your organizations corporate status* State / Province / Fbgion IA County USA 6 Non-profit O For -profit O Other Years in business* Has the applicant received Cityassistance in the last five years?* O Yes O No Has the applicant received Cityassistance in the last three years?* f Yes F No Please provide evidence of your organization's capacity, financial skills, commitment and/or experience to implement the proposed program or service within the established timetable and budget.* Limited to 4000 characters Our organizing committee, which will become our board, is composed of skilled professionals as outlined in the section below outlining the volunteer work we will do. Among us we have ample capacity to complete the work outlined in this proposal on time, on budget, and with distinction. Note: I'm sorry, I didn't see this question earlier so don't have time to draft a fuller response but we will be glad to provide that additional information. Is the applicant currently in compliance with all federal, state and local laws, rules and regulations including any CDBG and/or HOME funded projects? (including partners, cc -applicants, etc.) 6 Yes O No O Currently in litigation Project Information Need & Priority The City Steps Plan guides funding within the community that benefits low -moderate income persons by creating jobs, improving housing, and providing services. You can find a copy of City Steps at www.icgov.org/actionplan. Brief summary of proposed project* United to 2000 characters The Johnson Clean Energy District (JCED) is being created to dramatically expand and accelerate the transition to cleaner, more efficient energy and to bring broad societal, ecological, and economic benefits to Iowa City and Johnson County. More specifically, JCED will: Do energy auditing and planning for homeowners, landlords, and businesses. Collaborate with Green Iowa AmeriCorps (GIA), the City Housing Rehabilitation Program, GRIP, Johnson County, HACAP, Habitat, and The Housing Fellowship (THF) to coordinate and accelerate retrofits to make residential and business buildings more energy efficient. Educate the public and targeted groups about energy efficiency (EE), renewable energy (RE), and global climate change. Keep energy dollars local and stimulate the local economy through: consumers saving money on their energy bills, producing energy locally (solar PV), and expanding the market for RE and EE work for contractors. Collaborate with Kirkwood Community College and other educators and trainers to train auditors and contractors. Advocate at local and state levels for clean energy policies through the new Clean Energy Districts of Iowa organization. Specific action tasks we will do: Incorporate as a non-profit and obtain 501(c)(3) status Recruit homes and businesses for GIAto do Level One EE work and refer to City housing rehab programs, HACAP, Habitat, and local contractors for additional EE work. GlAteams are expected to do 120 homes per year. These Level One visits are further explained in the budget section. Contract with BPI certified auditors to provide at least 12 Level Two in-depth audits for more extensive EE work (insulation, roofs, HVAC, solar PV, etc). More audits can be done on a fee -for -service basis. Collaborate with the City on a list of recommended contractors to do the work. Follow up with customers on audit recommendations to execute work. Plan a larger EE campaign modeled on Solarize Johnson County. Seek funding from HOME, Jo Whythis project is needed?* Limited to 2000 characters Although a variety of programs exist to encourage energy efficiency and renewable energy, none are currently at the scale needed to reach the city's and society's goals and they are not well -coordinated with each other. Need: the Iowa City Climate Action Plan and CITY STEPS document the need to reach ambitious EE housing rehab retrofit goals (975 homes per year) but existing agencies do not have the capacity to do EE and renewable development at the necessary scale. Solution: JCED will dramatically scale up successful energy efficiency and renewable energy programs for homeowners, businesses, and government. Need: the public needs to understand more about carbon emissions and the costs of wasting energy. Solution: JCED will increase public awareness and readiness to take action on clean, efficient energy through breakfast seminars, newsletters, electric car fairs, light bulb exchanges, tours of efficient solar homes, etc Need: agencies and programs doing energy efficiency and renewable energy work are not always communicating and coordinating enough with each other. Solution: JCED will develop a communication platform between agencies to improve coordination. Need: we do not have enough systematic data collection about EE programs and renewable energy development. Data on carbon reductions and energy dollar savings for consumers is needed. Solution: JCED can document and evaluate program results. For example, JCED has a spreadsheet that calculates carbon reductions and energy cost savings per building served. Need: programs and contractors need additional training and certification to do EE work at scale. Solution: JCED and partners will offer training for BPI auditing certification and assist in technical training of EE workers. For example, in collaboration with Iowa City Cohousing, JCED will offer training for contractors in advanced (LEED eligible) energy efficiency construction techniques. JCED will also collaborate with Kirkwood Community College to pr How does it fill a gap in the community?* Limited to 1500 characters First, the Johnson Clean Energy District (JCED) will act as a focal point — a fulcrum — for coordinated action among all energy transition stakeholders. At present, there is no single place that brings service providers, consumers, financing, and policies together. This organization will serve as a "One Stop Shop" where energy consumers, contractors, service providers, students and educators, investors, policymakers, regulators, and others can obtain high quality energy -related information, services, and incentives. Second, JCED will provide more focus and resources to the outreach and educational work being done by the GAI team and others. Through this work Iowa Citians will come to understand more clearly the connection between energy consumption, carbon emissions, and the personal, economic, and social costs of global climate change. A public education campaign combined with incentive packages can help motivate many homeowners. Third, and most important, the Energy District will play a major part in taking EE and RE programs to scale. It will develop and evaluate different approaches and technologies and develop partnerships needed to meet demand and achieve GHG reduction goals on timelines outlined in the Iowa City Climate Action Plan. Scaling this effort will start with ramping up existing programs for LMI homeowners in Iowa City. Within a very short time, however, the effort must eventually reach homeowners in every demographic (income, owner/renter, age, rural/urb How does it address the goals of 2016-2020 CITY STEPS? * Limited to 1500 characters While CITY STEPS focuses on the CDBG, HOME, and GRIP programs it provides useful information about City goals and needs that are relevant to the EE housing rehabilitation, economic development, and job creation goals of this Aid to Agencies proposal. The CITY STEPS overall goals include: #2 "...reinvestment in aging neighborhoods..." and #3, "To expand economic opportunities through job creation," — both of which will be accomplished through this newagency's work. (p. 4) The Strategic Plan Overviewstates that federal funds are intended to provide LMI households with decent housing ... expanded economic opportunities..." Also, "eligible activities include ... housing rehabilitation .. economic development." (p. 91) The Priority Set -Asides, Needs and Goals Summaries state high priority needs and goals that are directly related to this proposal: 1) improving both owner and rental housing through rehabilitation of existing units and 2) economic development (pp. 96, 107-109) Creating suitable living environments is another objective. The relative energy cost burden on low income households can be double that for the median household. Households may have to trade-off necessities to pay energy bills. As more households receive energy efficiency assistance it will help reduce their energy cost burden and increase comfort. The City Climate Action Plan sets a high priority on retrofitting existing buildings (which account for 56% of City GHG emissions) to increase energy efficiency —as Additional Documentation Rease submit no more than 7 additional pages Budget & Doc 1.18.19.docx Resources & Feasibility 17.56KB Provide a budget breakdown for your specific program. Include only costs directly related to the program. For example, providing a specific service should include the total estimated costs and available resources, broke out by general categories such as salaries, materials, office expense, marketing, etc. If required by local and/or federal regulations, include the cost of an audit. Document costs whenever possible. Budget Breakdown Use of Funds City Funds Other Funds Source of Other Type Status Funds Use of Funds City Funds Other Funds Source of Other Type Funds Construction / $ 12,000.00 $ 25,000.00 JCED will explore Cash Rehabilitation additional funding from: the Iowa City Community Partnerships for Climate Action grant program, Johnson County Community Foundation, HTF,Johnson County, private individuals, and other sources. We also anticipate some funding from the Clean Energy Districts of Iowa through the Greater Dubuque Community Foundation. City Funds Other Funds Total $ 12,000.00 $ 25,000.00 Please list anticipated dates uncommitted funding is expected* We don't have firm dates yet but will be applying to the sources outlined in the proposal. This additional funding will include grants, private donations, in -kind contributions, and collaborative work from other agencies, private contributions. Initial conversations have been held with several of these funding sources but no firm commitments have been made yet. Documentation of Costs Doc of Costs A2A.docx Labor Breakdown .................................................................................................. Type Description Hours Per Hour Rate Total Cost Status Uncommitted 12.21 KB Type Description Hours Skilled BPI certified 500 auditor to do audits; recruit households and businesses for GIA Level One visits and Level Two (deeper) audits, EE and solar PV work; public education; collaboration with other agencies; etc. Total Labor Cost $ 11,250.00 Per Hour Rate Total Cost $ 22.50 $ 11,250.00 If volunteers are used, please describe how these volunteers are utilized for the proposed activity. United to 1000 characters Craig Mosher worked for Hillcrest Family Services —building a CDBG funded group home and rehabing an apartment building. He was Director of the Johnson County MH/DD Department. He also worked for Community Action in Decorah and built a group home with the help of Habitat for Humanity, a County land donation, City funding, and federal grants that he wrote. Martha Norbeck is a local green building architect. She serves on the Iowa City Climate Action Committee (ICCAC) and is chair of the Iowa chapter of the US Green Building Council. She will do training, public education, recruitment of households. Cheryl Miller managed scientific and stakeholder forums at the University of Minnesota on energy and GHG reduction options in the state. She will do grant writing, public education, and recruitment of households. G.T. Karr serves on the (ICCAC) and the Greater Iowa City Home Builders Association. He will do training and public education. Rob Novak is a certified auditor and BPI trainer w All public service projects are required to expend their full award and complete the proposed project bythe end of the fiscal year (June 30, 2020). Will you be able to meet this requirement? * r Yes f No Impact & Community Benefit Please indicate the population to be served by the proposed program according to the linked income categories. If requesting money for a specific administrative expense (like a staff member's salary), indicate the population served by your entire agency. (Please Note: If funded, this information will be used as income targeting for your Agreement). Income Breakdown Median Income Number of Persons 0 - 30% 15 31 - 50% 15 51 - 80% 30 Median Income Number of Persons Over80% 12 Total Persons 72 Percent LMI 83.33 Percent Iowa City Residents 100 Please describe the basis or methodology used to estimate the number of clients to be served (?) Limited to 750 characters The estimate of number of people served is based on the expectation and performance of GlAteams in Iowa. They do at least 120 households per 10 month period. We figured we could refer half of this number to GIA. JCED will also be able to do 12 Level Two audits with A2A funding. We may spread this Level Two money further by subsidizing just part of the cost for each household. We will collaborate with THE to recruit from among their LMI clients. THE may also have funding to do some additional households that we can help them recruit. Both the Winneshiek and Clayton County Energy Districts exceed these numbers of households served each year, using GlAteams. Budget City of Iowa City Other Sources All Sources Salary & benefits 13,500 Subsidize Audits 10 @ 500 5,000 5,000 LupLea Incorporation,501(c)3 900 plies -LED bulbs, etc. 2,400 2,800 ing 300 300 PR -Advertising 600 500 Computer, printer, software 1,300 Consultation &training 1,400 2,500 Dues 100 Travel 200 200 Office Supplies 200 200 Totals 12,000 25,000 Note: The budget can be adjusted to meet City priorities for funding other applications by adjusting the amounts for subsidizing audits and supplies. The budget for this A2A proposal includes: Subsidize audits - funds to subsidize Level Two (deeper) audits. Half of this will go to LMI households. • Legal costs to incorporate and get IRS 501(c)(3) status. • Supplies for Level One home visits and events: LED bulbs, aerators, etc.* • Printing and advertising for public education, outreach, and publicity • Computer, printer, and software. Office space will be donated in year one. • Consultation from other energy districts and BPI training for staff • Dues for the Clean Energy Districts of Iowa organization • Travel - mileage for travel to homes, businesses and meetings • Office supplies * These Level One visits do a basic audit, change all light bulbs for LEDs, change faucet aerators to low -flow and sometimes do some air sealing (caulking or taping air ducts). This is more than utility audits typically do. JCED will provide at least 60 LMI referrals to GIA. These Level One home visits save residents an average of $100 per year on their energy bills at a cost to the program of approximately $125. LMI families pay nothing. We will seek other sources of funding as noted below. This will allow additional work as outlined and the hiring of a half-time staff person for the second half of the fiscal year to carry out the work of this program including doing Level Two audits, education, recruitment of households to refer to GIA and other agencies, etc. Documentation of Costs Labor Breakdown NONE in this A2A proposal; some with other funding as follows. Type Half-time staff for six months Description BPI certified auditor to do audits; recruit households and businesses for GIA Level One visits and Level Two (deeper) audits, EE and solar PV work; public education; collaboration with other agencies; etc. Hours 20 x 25 weeks = 500 Per Hour Rate $45,000/4 = 11,250/500= $22.50 Total Cost $13,500 including 20% (2250) for benefits Total Labor Cost $13,500 Application Information Select Language I Aid to Agencies provides flexible operational funding for nonprofits. Applications are due Tuesday, January 18, 2019 at noon. This application is for "emerging" agencies, those that have not existed as a legal entity for at least 2 years or have not received A2A funds in any of the last five years. $19,000 is estimated to be available this year. Each agency is eligible to apply for up to $15,000. No award will be made for less than $5,000. Please submit one project proposal per application. Questions can be directed to Neighborhood Services at kirk-lehmann@iowa-city.org or 319-356-5230. For additional assistance, City staff will hold office hours to help applicants complete applications from 9:00 am — 11:00 am on January 2, 4, and 8 in Iowa City City Hall, Department of Neighborhood and Development Services (410 E. Washington Street, Iowa City). Additional assistance, and hard copy applications, are available upon request." Project Name * LCA Renovation Phase 2 Total amount of funds requested* $ 56,247.51 Applicant Name Anthony Applicant Organization Little Creations Academy Applicant Address* Street Address 2929 E Court St Address Line 2 City Iowa City Fbstal / Zip mde 52245 Signature (j�.rllfveya��21c Contact Person* Anthony Smith Phone Number* 3196544624 Email* pastor@ncichurch.com State / Province / Fbgion Iowa Ccurrhy United States Indicate your organizations corporate status* 6 Non-profit O For -profit O Other Years in business* 2 Has the applicant received Cityassistance in the last five years?* O Yes O No In those five years, has any City assistance reverted to the Citydue to non -expenditure of funds* O Yes r No Is the applicant currently in compliance with all federal, state and local laws, rules and regulations including any CDBG and/or HOME funded projects? (including partners, co-applicarits, etc.) O Yes O No O Currently in litigation Project Information Need & Priority The City Steps Plan guides funding within the community that benefits low -moderate income persons by creating jobs, improving housing, and providing services. You can find a copy of City Steps at www.icgov.org/actionplan. Brief summary of proposed project* United to 2000 characters The purpose of the project is to purchase and install a Smart Board for school age students. Whythis project is needed?* United to 2000 characters The smart board's primary use is for the After School Program. Its a key learning tool for teachers and students. How does it fill a gap in the community?* United to 1500 characters Our child care facility serves the general public and those who are financially challenges. We provide quality child care that most families can afford. Our childcare center gives the undeserved the opportunity to be productive in the community while maintaining their dignity. How does it address the goals of 2016-2020 CITY STEPS? United to 1500 characters Little Creations Academy provides child care service to low income families. Our services extend to the Domestic Violence Center, Shelter house, and Promise Jobs as well the general public. Our center provide the disenfranchised the opportunity to prosper. All of our staff are paid at least $10.10 per hr. Additional Documentation Rease submit no more than 7 additional pages Resources & Feasibility No Provide a budget breakdown for your specific program. Include only costs directly related to the program. For example, providing a specific service should include the total estimated costs and available resources, broke out by general categories such as salaries, materials, office expense, marketing, etc. If required by local and/or federal regulations, include the cost of an audit. Document costs whenever possible. Budget Breakdown .............................................................................................. Use of Funds City Funds Other Funds Source of Other Type Status Funds Smart Board $ 6,165.00 $ Cash Uncommitted City Funds Other Funds Total $ 6,165.00 $ 0.00 Please list anticipated dates uncommitted funding is expected* April 1, 2019 Documentation of Costs Smart Board Gleeson.pdf 153.47KB Smart Board.jpg 166.35KB Labor Breakdown Type Description Hours Per Hour Rate Total Cost Skilled Smart Board 10 $ 27.16 $ 271.60 Install Skilled Electrical Install 10 $ 32.85 $ 328.50 Total Labor Cost $ 600.10 If volunteers are used, please describe how these volunteers are utilized for the proposed activity. Limted to 1000 characters All public service projects are required to expend their full award and complete the proposed project bythe end of the fiscal year (June 30, 2020). Will you be able to meet this requirement? r Yes f No Impact & Community Benefit Please indicate the population to be served by the proposed program according to the linked income categories. If requesting money for a specific administrative expense (like a staff member's salary), indicate the population served by your entire agency. (Please Note: If funded, this information voII be used as income targeting for your Agreement). Income Breakdown Median Income Number of Persons 0 - 30% 4 31 - 50% 51 - 80% Over80% 20 Total Persons 24 Percent LM I 16.67 Percent Iowa City Residents 75 Please describe the basis or methodology used to estimate the number of clients to be served (?) Limited to 750 characters Our database stores the clients we serve. We collect data such as address, family members, and income. We are required to keep records of low income clients that receive financial assistance. SMART Board 6075 75" 4K Ultra HD Pro Interactive Digital Signage with iQ - SPNL- 6275P tie the tfsstu review this pmdu e.:: { SHARE In stock. Ships from United 5tates. Sold and Shipped by Newegg • 75". 3849x 21 W (4K UHD), 5CHz, 350nit • DViT{Digital Vision Touch) technology; 8 touches • PC -free embedded computing provides one -much access to collaborative tools, including a whiteboard, wireless screen sharing and a web browser • No need for wires, cables or manual software and Firmware updates • Provides optimal Image clarity and wide viewing angles; with the Pen ID feature, you can assign different appearances to the two pens and write or draw over any application in digital Ink • flhiorrnwnrpnncc allrnucurni to nnrFnrm mniicn hinrrinncwirh Sold and Shipped i Newegg 56,66E.019 $6,155 00 ADO TO CART r ADD TO CC]WARE 4L PRICE ALERT F ADO Tc wi sH tlsT Exclusive Military Offer Free One Year Newegg Premier Membership not RanwtRu ii� Gle'eson t;k liimi Aydin®® 319-300-1431 ® g,remodeiing@®antiook.com 232 PO Box 450 Highway I West Ste E. Iowa City, IA 52246 VCORKPERFORMED AT: � �� �Ytci ioYtS �ca r�,� �r7JC CYe(Afions CrAdcm 19� eo urf S jo v-D c i y-7 v to z DATE , YOUR WORK ORDER N0, OUR BID N0. � T / i : Jh�2?�ic��'IiT++iafi< ;b u r% ? �i SYY1Lti Y p G v Q a)' '(note d-0 cy e -, r,5 fe4 heL L Ile 120 v uL0I Toc cc ry osy Iabo�ytr m00Yt! �+C, Smv backed 1P0 Application Information Aid to Agencies provides flexible operational funding for nonprofits. Applications are due Tuesday, January 18, 2019 at noon. This application is for "emerging" agencies, those that have not existed as a legal entity for at least 2 years or have not received A2A funds in any of the last five years. $19,000 is estimated to be available this year. Each agency is eligible to apply for up to $15,000. No award will be made for less than $5,000. Please submit one project proposal per application. Questions can be directed to Neighborhood Services at kirk-lehmann@iowa-city.org or 319-356-5230. For additional assistance, City staff will hold office hours to help applicants complete applications from 9:00 am — 11:00 am on January 2, 4, and 8 in Iowa City City Hall, Department of Neighborhood and Development Services (410 E. Washington Street, Iowa City). Additional assistance, and hard copy applications, are available upon request." Project Name * Staff Payroll funding Total amount of funds requested* $ 15,000.00 Applicant Name Carla Phelps Applicant Organization Successful Living Applicant Address* Street Address 2406 Towncrest Drive Address Line 2 City Iowa City Fbstal / Zip mde 52240 Signature * t Contact Person* Carla J. Phelps Phone Number* 3194711809 Email* cphelps@icsuccess.org Indicate your organizations corporate status* State / Province / Fbgion IA Ccurrhy United States 6 Non-profit O For -profit O Other Years in business* 20 Has the applicant received Cityassistance in the last five years?* O Yes O No In those five years, has any City assistance reverted to the Citydue to non -expenditure of funds* O Yes r No Is the applicant currently in compliance with all federal, state and local laws, rules and regulations including any CDBG and/or HOME funded projects? (including partners, co-applicarits, etc.) O Yes O No O Currently in litigation Project Information Need & Priority The City Steps Plan guides funding within the community that benefits low -moderate income persons by creating jobs, improving housing, and providing services. You can find a copy of City Steps at www.icgov.org/actionplan. Brief summary of proposed project* United to 2000 characters Successful Living staff works exclusively with the Chronically Mentally III (CMI) in Iowa City, and has for 20 years. We are successful due to our hardworking staff — who have more and more demands made of them each year, due to regulations imposed on our agency in terms of documentation. Our clients come to us from the streets, shelters and other unfortunate circumstances. Agency staff gets them into secure housing, enrolled with Medicaid and into to see doctors to treat their psychiatric illnesses and their myriad physical ailments after years of neglect. Our staff works daily with these clients: medication management, counseling on nutrition, hygiene, time management, budgeting and many other supports. Our staff are on the front lines in caring for these people, preventing isolation and talking about depression, anxiety, hearing voices, the consequences of missing meds, participating in groups and more. This is how client behaviors improve, how clients learn howto manage their own lives and to eventually enjoy themselves with higher self-esteem and pleasure in living. This is what recovery means, and how it is achieved, with the help of our compassionate staff. Iowa's Medicaid program pays for services via the hours staff spends with clients. Medicaid funding is how we pay all agency expenses. But more and more staff time is required to document all client contacts each year, without enough time to get it all done (this documentation is done online, out of the presence of clients: staff hours that Medicaid requires, but doesn't pay for). Further, our Medicaid billing rates have not increased in in over 10 years for clients with highest needs, yet we continue to give staff raises annually. All agency expenses rise each year while our income remains static. We need help with staff payroll expenses, to pay them for more hours of work Whythis project is needed?* United to 2000 characters Our agency's staff plays an integral role in the care and treatment of the Chronically Mentally III population in Iowa City. We are a service organization; our staff is our greatest resource and our biggest expense. Yet staff at agencies like ours (who are overwhelmingly female) are among the lowest paid of all the employed in Iowa City, at a time when the demands on staff are increasing. This is in the context of the work itself, which is innately stressful, due to the nature of mental illness and the cruel toll it takes on our clients and staff alike. Yet, that is the most important work of our compassionate staff, helping clients heal. The difficulty is that on top of 1:1 client work, staff are also required to do more and more paperwork, staff work which Medicaid dos not reimburse us for, due to rules imposed by both the MCOs (these are Managed Care Organizations, which are private insurance companies who administer Iowa's Medicaid program) and by Iowa DHS. This additional work requires additional staff compensation in order to continue to provide high quality services to our clients, the heart of our agency. We need to prevent staff attrition due to inadequate compensation for doing mandated paperwork. How does it fill a gap in the community?* United to 1500 characters The mentally ill who are poor need the help of our staff. Our staff deserves better compensation due to this workload. Virtually all of our clients have experienced homelessness, and have had their illnesses go untreated. That is the gap our agency's staff fills: our staff takes in the impoverished mentally ill from off the streets and assists them in their recovery by securing housing and psychiatric services to get them on the road to recovery. Many clients remain with us for many years thereafter. This helps our clients and also helps our community, saving on resources like law enforcement, psych wards, the ER and others. People heal and behaviors improve, attitudes change and outcomes are healthy and optimal. It is our staff that makes this happen. Without good staff no agency can keep up with the demand for these critical and challenging services. The additional red tape imposed each year has made staff work more and more challenging. Our staff and clients deserve better. How does it address the goals of 2016-2020 CITY STEPS? United to 1500 characters Priority Needs of City Steps Aid to Agency, by number: Our agency provides affordable rental housing to adults who experience Chronic Mental Illness (050), and we expand housing each year with the acquisition of more houses. In so doing we eliminate homelessness (05). All of our staff works exclusively with the mentally ill, most of whom are 100% disabled (0513) by their illnesses. They also have physical ailments we attend to so their physical health improves (05M). We work with those who live in our housing and with others who live elsewhere. Our own houses are in residential neighborhoods and our clients become good neighbors to those around them. Goodwill is promoted and our community has been welcoming with a generosity of spirit. We promote good neighborhood relationships and receive the same in return. Most of our clients don't drive or have cars so our staff transports (05E) them everywhere until they become able to use public transport (some never do). Additional Documentation Rease submit no more than 7 additional pages Resources & Feasibility L- Provide a budget breakdown for your specific program. Include only costs directly related to the program. For example, providing a specific service should include the total estimated costs and available resources, broke out by general categories such as salaries, materials, office expense, marketing, etc. If required by local and/or federal regulations, include the cost of an audit. Document costs whenever possible. Budget Breakdown Use of Funds Staff payroll funding Total City Funds Other Funds Source of Other Type Status Funds $ 15,000.00 $ Uncommitted City Funds $ 15,000.00 Other Funds $ 0.00 Please list anticipated dates uncommitted funding is expected* July 1, 2019 is the anticipated funding of this Aid to Agency grant by the City Council. As soon as we receive funds we will implement a payroll program to equitably assign and pay staff for extra work hours. We will budget monthly, taking into account seasonality and other factors.. Documentation of Costs FINAL Spreadsheet for extra staff pay.xlsx Labor Breakdown 9.65KB Type Description Hours Per Hour Rate Total Cost Skilled straight time 1,154 $ 13.00 $ 15,002.00 Total Labor Cost $ 15,002.00 If volunteers are used, please describe how these volunteers are utilized for the proposed activity. Limited to 1000 characters All public service projects are required to expend their full award and complete the proposed project bythe end of the fiscal year (June 30, 2020). Will you be able to meet this requirement? F Yes f No Impact & Community Benefit F Please indicate the population to be served by the proposed program according to the linked income categories. If requesting money for a specific administrative expense (like a staff member's salary), indicate the population served by your entire agency. (Please Note: If funded, this information voII be used as income targeting for your Agreement). Income Breakdown Median Income Number of Persons 0 - 30% 185 31 - 50% 51 - 80% Over 80% Total Persons 185 Percent LM I 100.00 Percent Iowa City Residents 100 Please describe the basis or methodology used to estimate the number of clients to be served (?) Limited to 750 characters We have added together total clients the agency has at present with additional clients who will be living in upcoming housing acquisitions. AID TO AGENCY ASSUMPTIONS SUCCESSFUL LIVING January 15, 2019 30 staff average pay rate is $13/hour A2A grant request for extra paid hours for mental health workers = $15,000 $15,000 divided by $13/hour = 1154 approximate extra paid hours available annually $15,000 divided by 30 staff = $ 500 appromxately $500 per staff = extra pay annually $500 divided by $13/hour = 38 approximately 38 hours of extra paid time per staff annually NOTE: All funds will be used for expenses related to staffing. Some may be used for slight pay increases. For staff who work less than 40 hours, we will increase their hours. We may pay overtime to others. A combination of approaches to this extra compensation will be utilized to most equitably reward our hardworking staff. We will budget monthly for 12 months. Application Information C7 Select Language I Aid to Agencies provides flexible operational funding for nonprofits. Applications are due Tuesday, January 18, 2019 at noon. This application is for "emerging" agencies, those that have not existed as a legal entity for at least 2 years or have not received A2A funds in any of the last five years. $19,000 is estimated to be available this year. Each agency is eligible to apply for up to $15,000. No award will be made for less than $5,000. Please submit one project proposal per application. Questions can be directed to Neighborhood Services at kirk-lehmann@iowa-city.org or 319-356-5230. For additional assistance, City staff will hold office hours to help applicants complete applications from 9:00 am — 11:00 am on January 2, 4, and 8 in Iowa City City Hall, Department of Neighborhood and Development Services (410 E. Washington Street, Iowa City). Additional assistance, and hard copy applications, are available upon request." Project Name * Building Acquisition for Unlimited Abilities Total amount of funds requested* $ 15,000.00 Applicant Name Shirley Tramble Applicant Organization Unlimited Abilities Applicant Address* Street Address 453 Highway 1 west Address Line 2 City Iowa City Fbstal / Zip mde 52246 Signature * a I*9?AQKAI� Contact Person* Shirley Tramble Phone Number* (319)321-1768 Email* unlimitedabilitiesinc@gmail.com Indicate your organizations corporate status* State / Province / I Lgion IA Ccurrhy US 6 Non-profit O For -profit O Other Years in business* Has the applicant received Cityassistance in the last five years?* O Yes O No Has the applicant received Cityassistance in the last three years?* f Yes F No Please provide evidence of your organization's capacity, financial skills, commitment and/or experience to implement the proposed program or service within the established timetable and budget.* United to 4000 characters See Attached Is the applicant currently in compliance with all federal, state and local laws, rules and regulations including any CDBG and/or HOME funded projects? (including partners, cc -applicants, etc.) 6 Yes O No O Currently in litigation Project Information Need & Priority The City Steps Plan guides funding within the community that benefits low -moderate income persons by creating jobs, improving housing, and providing services. You can find a copy of City Steps at www.icgov.org/actionplan. Brief summary of proposed project* United to 2000 characters Unlimited Abilities will start the process of purchasing a home to serve disabled and low income individuals within the community. The project will benefit 4 individuals and will be considered transitional. Whythis project is needed?* United to 2000 characters The project is important because of the need for more habilitation waiver homes in the area. Approximately one-third of the total homeless population includes individuals with serious, untreated mental illnesses according to a research summary compiled by the Treatment Advocacy Center. As a new organization, Unlimited Abilities is dedicated to making a difference in the lives of these individuals. How does it fill a gap in the community?* United to 1500 characters Provides access to affordable housing for individuals with extremely low income, offers more SCL/Hab services in the area and supports for individuals with disabilities. How does it address the goals of 2016-2020 CITY STEPS? United to 1500 characters The project for unlimited Abilities address the goals of City steps by increasing availability of affordable housing and increasing the supply of supportive housing for individuals with special needs. Additional Documentation Rease submit no more than 7 additional pages Unlimited Abilities project timeline .xIsx Resources & Feasibility ■ 55.97 KB Provide a budget breakdown for your specific program. Include only costs directly related to the program. For example, providing a specific service should include the total estimated costs and available resources, broke out by general categories such as salaries, materials, office expense, marketing, etc. If required by local and/or federal regulations, include the cost of an audit. Document costs whenever possible. Budget Breakdown Use of Funds City Funds Other Funds Source of Other Type Status Funds Building Acquisition $ 15,000.00 $ 25,000.00 HTJC Cash Uncommitted Building Acquisition $ $ 100,000.00 Midwestone Bank Cash Uncommitted City Funds Other Funds Total $ 15,000.00 $ 125,000.00 Please list anticipated dates uncommitted funding is expected* City of Iowa City- July 2019 HTFJC- March 2019 Midwestone Bank- March 2019 Documentation of Costs Labor Breakdown Type Description Hours Per Hour Rate Total Cost N/A 0 $ 0.00 $ 0.00 Total Labor Cost $ 0.00 If volunteers are used, please describe how these volunteers are utilized for the proposed activity. Limted to 1000 characters NA All public service projects are required to expend their full award and complete the proposed project bythe end of the fiscal year (June 30, 2020). Will you be able to meet this requirement? F Yes f No Impact & Community Benefit a Please indicate the population to be served by the proposed program according to the linked income categories. If requesting money for a specific administrative expense (like a staff member's salary), indicate the population served by your entire agency. (Please Note: If funded, this information voII be used as income targeting for your Agreement). Income Breakdown Median Income Number of Persons 0 - 30% 9 31 - 50% 51 - 80% Over 80% Total Persons M Percent LM I 100.00 Percent Iowa City Residents 100 Please describe the basis or methodology used to estimate the number of clients to be served (?) Limited to 750 characters The project will benefit 4 people. The proposed property will have four bedrooms. Only one person per room is allowed. PROJECT TIMELINE PROJECT START/ ACQUIRE FUNDING PROJECT END 1 Jul CLOSE ON HOUSE 1 Aug 1 Sep ASSIGN/HIRE STAFF CLIENTS OCCUPY HOME I Oct PROJECT DETAILS DATE MILESTONE POSITION 1-Jul Project Start/ Acquire funding 25 1-Aug Close on house 10 1-Sep Assign/Hire staff -10 1-Oct Clients Occupy home 15 1-Nov Clients move in house -15 1-Dec Project End 15 1 Nov CLIENTS MOVE IN HOUSE PROJECT END 1 Dec