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HomeMy WebLinkAboutHCDC Packet 05-16-19Agenda Housing & Community Development Commission (HCDC) Thursday, May 16, 2019 6:30 P.M. Senior Center, Room 202 28 S. Linn Street, Iowa City Use the Washington Street entrance or 2nd floor skywalk via Tower Place parking garage 1. Call meeting to order 2. Approval of the April 18 & April 24, 2019 minutes 3. Public comment of items not on the agenda 4. Presentation on the Affordable Housing Location Model (AHLM) 5. Review and consider recommendation to City Council on approval of Iowa City Housing Authority 2019 Annual Report 6. Period for comment on the FY20 Annual Action Plan – available at www.icgov.org/actionplan 7. Discuss modifications to the Aid to Agencies process 8. Discuss requesting rents for rental permits 9. Discuss mobile home park rent increases 10. Staff/commission comment 11. Adjournment If you will need disability-related accommodations to participate in this program or event, please contact Kirk Lehmann at kirk-lehmann@iowa-city.org or 319-356-5230. Early requests are strongly encouraged to allow sufficient time to meet your access needs. Date: May 9, 2019 To: Housing and Community Development Commission (HCDC) From: Neighborhood Service Staff Re: May 16, 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.org. * Indicates Action Item Item 1. Call Meeting to order Item 2. Approval of the April 18 & April 24, 2019 minutes* Item 3. Public comment of items not on the agenda Item 4. Presentation on the Affordable Housing Location Model (AHLM) Tracy Hightshoe, Director of Neighborhood & Development Services, will provide background on the history and factors used in the AHLM and what kinds of assisted housing it affects. Item 5. Review and consider recommendation to City Council on approval of Iowa City Housing Authority 2019 Annual Report* The Iowa City Housing Authority (ICHA) prepares an annual report with details about its current programs, population served, annual application for grants to support improvements, and its strategy for addressing the housing needs of assisted households and the community. The strategies for meeting its mission, goals, and objective are in its 5-Year Plan for FY2015- 2019 and are contained in Iowa City’s Consolidated Plan title CITY STEPS 2016 -2020. Item 6 Period for comment on the FY20 Annual Action Plan – available at www.icgov.org/actionplan At the April 18 meeting, HCDC recommended to City Council the FY20 Annual Action Plan which summarizes actions and resources to address the needs and goals in 2016-2020 CITY STEPS for City FY20. This includes CDBG and HOME budgets, a description of projects to be funded, and additional required information. The Plan is currently in its public comment period which ends after Council holds a public hearing on Tuesday, June 4, after which Council may formally approve the Plan. The Plan is then submitted to HUD. Public copies are available at the Iowa City Public Library, Neighborhood Services at City Hall, and online (www.icgov.org/actionplan). This item provides an opportunity for in-person comments on the plan during its public comment period. Item 7. Discuss modifications to the Aid to Agencies (A2A) process City Council approved changes to the A2A process for FY20. However, after HCDC provided their funding recommendation, Council requested that HCDC again revisit the process. This meeting will continue the multiple discussions on the process for FY21 and beyond. Item 8. Discuss requesting rents for rental permits The City is in the process of upgrading their rental permitting software, so the Affordable Housing Coalition formally requested for rental unit prices to be collected as rental permits are issued or renewed. HCDC indicated interest in adding this issue to the May 16 agenda. 2 Item 9. Discuss mobile home park rent increases Mobile home parks in Johnson County are being purchased by out-of-town investors who increased lot rents by as much as 58 percent. This has led to affordability challenges for many residents. HCDC indicated interest in adding this issue to the May 16 agenda. Item 10: Staff/Commission Comment Item 11: Adjournment* MINUTES PRELIMINARY HOUSING AND COMMUNITY DEVELOPMENT COMMISSION APRIL 18, 2019 – 6:30 PM SENIOR CENTER, ROOM 202 MEMBERS PRESENT: Mitch Brouse, Charlie Eastham, Christine Harms, Peter Nkumu, and Paula Vaughan MEMBERS ABSENT: Megan Alter, Vanessa Fixmer-Oraiz, John McKinstry, Maria Padron STAFF PRESENT: Kirk Lehmann, Erika Kubly OTHERS PRESENT: Clare Ferris, Drew Bloom, Sara Barron, Martha Norbeck RECOMMENDATIONS TO CITY COUNCIL: By a vote of 5-0 the Commission recommends to City Council approval of the FY20 Annual Action Plan as presented with the addition of the rents of newly created affordable housing units. CALL MEETING TO ORDER: Vaughan called the meeting to order at 6:30 PM. APPROVAL OF THE MARCH 14 2019 MINUTES: Eastham moved to approve the minutes of March 14, 2019 with corrections. Harms seconded. A vote was taken and the motion passed 5-0. PUBLIC COMMENT FOR TOPICS NOT ON THE AGENDA: Martha Norbeck (Johnson Clear Energy District) is part of the organizing group for Johnson Clean Energy District and wanted to share her observations about the Emerging Aid to Agencies process. Her understanding of the grant was it was intended for emerging agencies, with language specifying no funds in the past five years and being formed within two years. Specifically the language reads “This application is for emerging agencies, those that have not existed as a legal entity for at least two years or have not received Aid to Agency funds in the last five years.” Norbeck was surprised when she looked at the submitted grants and the years other applicants were in business and the order they were listed in the packet were 6, 20, 1, 22, 20 and 1 years. And the three organizations that received funding were the ones that had operated for 20, 20 and 6 years. Norbeck acknowledged those agencies’ presentations were polished and had excellent reference letters, they should be as they have been in operation for years and have a track record for success to stay in operation for 20 years. Norbeck acknowledged the Johnson Clean Energy Group may have been disorganized, they have a lot to learn as an organization and learned valuable lessons from the grant proposal process. She noted they do not feel shunned as the Johnson Clean Energy District, she understands they are just getting started, but rather it is challenging that the representation of the grant was for emerging agencies but the committee’s actions supported agencies that had already been in existence and had a track record of success. That felt like a discontinuity and she wanted to communicate that she feels the language and parameters need to be more clearly outlined if the intent is truly to support agencies that are gaining a foothold. Sara Barron (Johnson County Affordable Housing Coalition) wants to share two things with the Commission, the first is the Affordable Housing Coalition has sent a formal request to the City Manager Housing and Community Development Commission April 18, 2019 Page 2 of 11 and cc: the Council and some staff asking for rental unit prices to be collected as rental permits are issued or renewed. It is surprising to a lot of people to learn they don’t have very reliable data, or really any type of comprehensive data about city-wide rental prices which makes it difficult to track progress in creating and maintaining affordable rental units. Because the City is in the process of upgrading their rental permitting software right now, Barron feels now is the perfect time to include a field to collect information about what the landlord will charge for the units. Having that information can be used a number of ways, the Affordable Housing Coalition’s intention is to use it in an aggregated way that will give them raw data that can be sorted to show what rental prices are throughout the community and how many units are actually available to the households that need more affordable rentals. The second item Barron wanted to share, because this Commission is concerned with affordable housing, Council is continuing to discuss the comprehensive rezoning of the North Dubuque Forest View project which includes the Forest View Mobile Home community and that redevelopment would include many permanent affordable homes for people who currently live at Forest View. There is a lot to consider about that rezoning but the Johnson County Affordable Housing Coalition is in favor of moving forward with the rezoning and hopes it goes through soon because at this point it is at a three year process and the residents of Forest View have worked hard with the developer to create a plan that will allow for a private developer to provide affordable housing. The fact that commercial and residential are mixed together is precisely one of the reasons it makes it possible for the developer to create the affordable housing option. Eastham stated an interest to put on an upcoming agenda the inclusion of rental amounts in the City’s permitting process. Eastham also acknowledged the comments regarding the emerging agency funds, he did not participate in those discussions because of a conflict of interest but feels the Commission should look at that process more closely. DISCUSSION OF PROJECTS THAT HAVE NOT COMPLIED WITH THE ‘UNSUCCESSFUL OR DELAYED PROJECTS POLICY’: Lehmann gave updates from reports received on unsuccessful and delayed projects. He noted the Commission can reclaim funds if they feel insufficient progress is being made. FY18 Little Creations Academy Daycare Rehab – Little Creations does not yet have a contract for the amended project scope, that is, the additional $36,141 which was added to their initial $73,000 budget. The reason is that there have been issues with the contractor that are being worked through. Little Creations is exploring the possibility of switching contractors for the remainder of the work, otherwise they are trying to finish out the work the contract they have, trying to get the access panel done, and will continue to work through the challenges. Lehmann noted the amendment was approved in January so they have only had the additional funding for about three months. FY19 Aid to Agencies: Dom estic Violence Intervention Program – Lehmann received an email update on this project, noting that DVIP has not billed any funding so far. They are finishing up a CDBG reimbursement of $21,000 for expenses in January through March. They expect other reimbursement requests shortly. Due to the amount of federal funding they receive and how the State allocates, it is cleaner for DVIP to expend full amounts from local, state or federal for same activities, in this case shelter indirect activities. They do so to show all funds are required to perform the services and are used to complete the contract period and is one of the ways DVIP can clearly show federal funds are not supplanting state or local funds. Holding off on expending City funds is different this year to accommodate this, they have never been in a position of not expending half their funds from the City by a specific deadline in the contract period. DVIP added that one issue they face is the contractors fees include both state and federal funding but they don’t know how that is divided up until a couple months into the contract, in addition based on the State’s process, which differs year to year, DVIP doesn’t always know if they are documenting expending federal or state funds first until a couple months into the contract as well. DVIP noted this is a fairly new process within the last three years so one of the ways they are hoping to resolve this issue moving forward is matching their fiscal year spending to the federal year. Housing and Community Development Commission April 18, 2019 Page 3 of 11 Eastham asked if these funds are Aid to Agency Funds. Lehmann confirmed it is Aid to Agency funds and stated typically Aid to Agency funds get billed quarterly but this year DVIP changed how they are billing. Eastham asked if the source of the funds were local funds. Lehmann said they are using their federal funds first, followed by state funds and then tap into the local funds, but if they don’t spend it out by June 30 they will lose any unused funds from the City due to the federal public services cap for CDBG, which is not something they can roll over. Eastham notes he understands why federal funds cannot be carried over but questions why local funds cannot. Lehmann stated it is a decision by the City Finance Department, that they were awarded federal, not local funds. FY19 Arthur Street Healthy Life Center – Lehmann received an email right before this evening’s meeting stating it appears the building will be sold to another buyer and Tess will withdraw her CDBG grant. Therefore that $51,000 will go back into the CDBG pot. Brouse asked if those funds would just be added to the next funding cycle. Lehmann confirmed that it could or also be tied into the Annual Action Plan. The order for uncommitted CDBG and HOME funds can be spent various ways by levels of consideration. (1) Existing projects that did not receive full funding can be considered. (2) Projects that had submitted projects that did not receive any CDBG or HOME funding will be considered. (3) New proposals in an extra funding round or (4) go back into a contingency fund to cover cost overruns. Eastham stated the Commission should follow the policy established and reallocate those unused funds. Lehmann said it can be discussed with the Annual Action Plan discussion later in the meeting. FY19 Neighborhood Centers of Johnson County Siding Improvement – Lehmann reported they sent out bids in August and only received one bid significantly higher than budget, about 60% above estimated. A second batch of letters were sent out in January and NCJC received two bids, and fortunately the lower of the two bids was close to the target budget. In March they signed an agreement with the contractor and the project is slated to begin on Monday, April 15 and is expected to take two to three weeks to complete. Lehmann stated he has been to the project site and they are making progress. FY19 Prelude Transitional Housing Improvement – Ron Berg was not able to attend tonight’s meeting but provided a written report. Prelude has selected RM Boggs as the vendor to install the new water heater, they will be meeting on Friday, April 19 to confirm wages requirements and make sure all the paperwork is in order before proceeding. RM Boggs indicated the timeline for the project is two weeks for the water heater to be delivered and will be able to install shortly after receiving. The project is within budget. BEGIN AID TO AGENCIES PROCESS MODIFICATIONS DISCUSSION: Lehmann stated he included a discussion guide in the packets of things the Commission has talked about regarding Aid to Agencies and reflective questions to start the discussion. Lehmann noted this discussion covers emerging and legacy Aid to Agencies processes. Vaughan followed the discussion guide beginning with what the Commission feels worked well and what needs to be improved. Eastham believes the Council’s recognition of the Commission’s recommendation and implementation worked well, he was quite pleased with the presentation. Lehmann has comments received from Fixmer-Oraiz, Alter and McKinstry. Fixmer-Oraiz noted overall it was good for the first time trying the Emerging Aid to Agencies and is open to hearing what others think can be done better. One thought she had was to make sure the Commission splits up the times when they are hearing from legacy versus emerging groups, but she liked the length of time the Commission had to review applications and ask questions. Fixmer-Oraiz suggested sending a survey out to agencies for their input on the process asking for their top concerns and aspects they wish the Commission to address. It would be good to know what organizations and staff thinks and make best practices from there. Alter stated she liked being able to talk with the agencies before filling out the scoring sheets, she is still not entirely sure how to handle priorities and scoring high, medium and low with numbers that can Housing and Community Development Commission April 18, 2019 Page 4 of 11 range from 1 to 10, she would like to see the matrix be able to capture when the funding ask goes to salary. She finds that useful because of the section that discusses the impact on persons. There are agencies that impact a great number of persons but the funding request goes to deal with salary, the score on the matrix may be high but it is not reflecting the money impacting many. Alter would like to have an easy to find piece of info that reflects the percent of cost directed to salary. She also likes having information showing what the applicant has received from Aid to Agencies in years past. McKinstry hopes the process will remain dynamic as they try to make it responsive to emerging needs while trying to offer stability for established services based on official stated priorities somewhat quantified by a numerical scoring system yet interpreted through the experiences of people involved in the process. It is an orderly process yet filled with the drama of unmet human needs represented by underfunded nonprofits. McKinstry states he along with everyone on the Commission needs to find a way to put the overall Aid to Agency need total to be gathered early enough in the City budgeting process so that it doesn’t quietly shrink as it had over the past few years. Eastham stated having the dialogue with agencies was very helpful to him and he has heard the agencies want to have that opportunity to clear up any misunderstandings or confusion with their applications. Eastham noted it is important to maintain the schedule that has been developed. Brouse agrees but admitted he was a little bit uncomfortable when the Commission was talking about allocations and some agencies were interjecting themselves into the conversation. While it is important to have the back and forth conversations, when it is time to discuss allocations it is a conversation just amongst the Commission. There needs to be a structure maintained of when open discussion time is and when is only Commission discussion time. Eastham commented on Alter’s statement of the agencies using the funding for salaries, he is not in agreement with her and feels agencies have to pay salaries and he doesn’t care what they use the monies for as long as it benefits the agency and they are accomplishing their missions. Brouse agrees and noted the nice thing about the Aid to Agency funds is there aren’t strings attached and the funds can be used how the agency best sees fit. Some agencies have all their federal funds tied to direct services and these are the only funds available to pay salaries. Vaughan agreed the scoring sheet was challenging because there were a lot of yes/no and therefore all the ending numbers were very close and hard for her to distinguish the agencies and decide how the scoring would match the funding. Eastham noted a comment from agencies saying they found little correlation between scoring and funding amounts. That is a measurable thing. Lehmann said he did with Commission averages and it was roughly correlated. Lehmann said when the scores don’t correlate is often with the $15,000 threshold and that can throw off the data. Lehmann noted he also heard feedback the Commission wants to spread the funding and agencies want them more targeted to priorities in City Steps. Additionally information was asked that was not part of the scoring criteria and also as heard earlier the emerging agency funds went to more established agencies despite the intent of the funds. Vaughan noted she is in agreement with the comments heard today regarding emerging agency funding and the wording on the application was confusing. It stated if one had ever received funding, not specifically Aid to Agency funding which is how it should have been worded. Brouse noted they do need to be clearer on what the intent for Aid to Agencies and Emerging Agencies, he feels emerging should be new agencies but the actual policies in place i ndicate it can be new agencies or just ones that haven’t received this specific type of funding. He noted the Commission needs to decide what they are prioritizing and direct the funds towards that. Eastham noted the difficulty not including an agency that has been in existence for 30 years being eligible for emerging funds is it excludes and takes away possible funding source for agencies with history. He Housing and Community Development Commission April 18, 2019 Page 5 of 11 feels it is fine to allow one year old organizations to go head to head with 30 year old organizations for this source of funds. Lehmann stated part of the rational for allowing established agencies who had not received Aid to Agencies funding to compete for the emerging funds was the legacy agencies are the agencies that provide core services in the community and have received funds for a long time, whereas there are some agencies that have been around for a long time but were never part of that initial core set of services. So competing this allowed them to join the core Aid to Agencies funding cycles. Brouse noted then perhaps is shouldn’t be called emerging agencies then if it will include established organizations. Vaughan agreed and noted there was a subcommittee that established the emerging category so perhaps that subcommittee can now reconvene to review the process after the first year and discuss concerns and clarify intent. Lehmann asked if the Commission felt the intent of the emerging agency funds was met with regards to the agencies that ultimately received the funding. Vaughan felt so at the time, however after tonight’s discussion she feels maybe it does need to be reviewed. She agrees the term emerging makes it sound like new agencies so the wording may need to be clearer. Harms noted that all the Commissioners went through each of these applications diligently and that is how the decision of funding was decided, it wasn’t a quick decision without thought. Vaughan agreed and noted she is comfortable with the decisions made in this funding cycle it is just now perhaps a matter of clarifying the wording for the future. Lehmann asked if it is the intent of the Commission to continue to allocate 5% of the funding to emerging agencies. The Commission agreed, noting it is the only way for an agency to get into the legacy agency cycle. Lehmann said they could dissolve the emerging agency funding and legacy funding categories and then any agency could apply generally to Aid to Agency funds. Lehmann stated this conversation will continue at the next meeting as well for the Commissioner’s that are not able to be present this evening. The subcommittee for this process was Padron and Fixmer-Oraiz who are both absent this evening. Eastham asked about the allocation of monies based on low priority or medium priorities. He feels that didn’t seem to sit very well with some agencies. Lehmann noted that agency questions he received were more about misunderstanding how the priorities would be used and they may not have fought being a medium priority which had the highest funding ratio of applications to availability. There was only one low priority application. Eastham said feedback he heard was funding should target the highest need. Lehmann noted his interpretation of that is in City Steps there are particular priorities and the Commission voted in the past to try to target more monies towards those priorities but nev er that medium or low priorities should not be funded. Lehmann also noted again with the $15,000 threshold there wasn’t a willingness to defund agencies that scored low, which scewed results. Eastham noted in future discussions that the Commission should ask agencies if they want the City to keep the levels of priorities. Vaughan noted that if they do not allocate funds for low, medium and high then those agencies that are low priority will never get funding. There are just not enough funds to go around. Brouse stated that the goal is to spread the funding, but that is just a target, if the projects aren’t there then an agency should not receive funding just because they are the only low or medium application. Vaughan also said in the next round of funding it should be decided if the Commission is funding the project or the agency, there has been a back and forth on that and a decision needs to be made up front Housing and Community Development Commission April 18, 2019 Page 6 of 11 so the applicants know when they are filling out the applications. Eastham noted in the scoring criteria they use budget and income target which have nothing to do with projects. Brouse feels it is better to base priority on the agency because all the scoring criteria is based on the agency not project. However it may not be all or none, some may be based on the project. Lehmann said the scoring criteria could be looked at, he used what was used previously for CDBG funds which needs a project but also looks at applicable agency criteria as well. Lehmann noted some feedback he received from the agencies were they didn’t feel like there was predictability to the funding and if they knew the Commission was basing funding off one or the other they would write their applications to fit. Brouse noted that it can’t just be about the data, there is a human aspect to these agencies and that is why discussions take place before funding is awarded. Vaughan agreed noting that everyone looks at the applications independently and then when they come together for discussion it is a more rounded view after hearing others input. Lehmann stated at the February 2019 Council work session Council asked staff to reach out to Legacy Agencies this summer to discuss Aid to Agencies budget levels. The City Manager’s office will lead the effort and will discuss with Legacy Agencies. The City Manager’s office will also review growth projections as they consider a proposed FY21 Aid to Agencies allocation. Neighborhood Services staff may attend meetings but will not lead them. This is the first year of the Legacy/Emerging process and HCDC will need to review how it went as there will be a FY21 funding cycle as an annual funding round rather than a two year cycle. HCDC will need to review the process and identify if any changes are necessary. Every two years additional emerging agencies will be able to apply for legacy funds and emerging agencies get funded annually, so it is possible that every two years 6-8 new emerging agencies can apply for legacy funds. This will have a significant impact on funding levels for agencies who have historically been funded and should be considered. It is not reasonable to assume the Aid to Agency budget will increase by $90,000 or $120,000 every two years so HCDC needs to review priorities and how to approach funding should additional agencies come on board. Lehmann noted the City’s budget process begins in August. NDS staff will have duties above and beyond current workloads and staff must complete the fair housing study and the Consolidated Plan in the upcoming months, additional research and correspondence for items not required by Council will not be priority items for staff as the City Manager’s office is taking the lead for this item (working on the Aid to Agency process), it will not be a priority item for NDS staff. Eastham asked if for Aid to Agency budgeting the Commission should get the City Manager to come to a meeting Lehmann said it is that they are taking the lead while NDS staff will be working on the Fair Housing Study and the Consolidated Plan and they will come back to HCDC. Kubly said the City Manager’s office will be working with agencies and are recommending HCDC wait until the City proposes the budget and then if the Commission has recommendations at that point to bring them forward. Eastham stated it is a good idea for the City Manager to be talking with the agencies about what they believe a reasonable Aid to Agency budget amount should be. However, he would also like to hear from agency directors directly what they think an Aid to Agency budget should be. Then HCDC can recommend a reasonable amount to the City on what the budget should be for Aid to Agencies. Lehmann noted that may be difficult depending on what happens at the State level because they are currently discussing revisions to the budget process and how much revenue cities have. Eastham doesn’t believe what the State does really affects what the City does with its monies because the taxable valuation which includes everything in the City has increased every year. So as long as the taxable valuation continues to go up Eastham will continue to argue for increased budget for Aid to Agencies. Vaughan asked if HCDC’s role is to advocate to the City Manager for increasing funding. Eastham stated the Commission was appointed by the City Council, not the City Manager so they should talk to Council Housing and Community Development Commission April 18, 2019 Page 7 of 11 and the budget setting process should include this Commission’s recommendations on what the annual budget for Aid to Agencies should be. Sara Barron (Johnson County Affordable Housing Coalition) spoke on behalf of their partner agencies that participate in all the various processes that come before the Commission for funding allocations, she noted the Commission gets to see very detailed applications for how the money will be used and that is done at the City Council’s request on their behalf and then somehow that information has to be provided back to City Council on all the Commission has learned through the process because it seems clear t hat City Council is not getting all that detail ed information. While she does not have a recommendation from the agencies on how exactly the budgeting process should go, she feels the Commission needs to remember not only are they charged with making the f unding allocation but they are also learning all that information from the agencies on behalf of the Council and without that relaying that back, City Council doesn’t have all the information about what the need is for the organizations. Lehmann noted that Council receives the minutes from the HCDC meetings, perhaps in the future the HCDC Chair could prepare a cover letter to Council with a summary. Vaughan said that might be good for situations where there is a need to call attention to something specific. Eastman noted that providing City funds to agencies doing social justice work is one of the key things this Commission is established to do and a vital function of this Commission is to inform Council why they are making the budget recommendations they are making. He would advocate for the Aid to Agencies funding process to not start out with a budget cap amount. Lehmann stated regarding overlapping funding HCDC has discussed on disclosing the various City funding going to each agency and he wants to invite the Human Rights Commission to the next meeting to discuss their processes as well. Eastham agreed it would be good to know if an agency is receiving funding from various City funds. Eastham asked what other Commissions the Council charged with providing funding. Lehmann stated Sustainability has funds to disburse, Historic Preservation may have funds, and Community Development. Brouse stated he would be interested in learning about the Human Rights Commission’s processes. Lehmann is imagining having a liaison from each Commission that will go to the other Commission’s meetings and bring back information. Lehmann asked if a member of the Commission wanted to reach out to the agency partners with a survey to ask about the process and ideas for improvement. Eastham is much more interested in hearing the feedback on budget amounts rather than process. Lehmann said that could be one survey. Eastham would rather have the agencies come to the May or June meeting and talk about the budget needs and process rather than do a survey. Vaughan is in favor of a survey or email asking for feedback rather than meeting. Brouse agreed. Lehmann noted that Fixmer-Oraiz volunteered to put together a survey. Eastham stated he would approach executive directors directly for in-person discussion. MONITORING REPORT : City of Iowa City – Kubly will review the City’s CDBG/HOME projects. The City has $75,000 for the Neighborhood Improvement set-aside. The City typically works with Parks & Rec and Engineering to develop projects each year. Most recently they have are working in Villa and Highland Parks. They used funding for accessible trails, playground equipment, a permanent shelter, and drinking fountain. Kubly noted Parks is looking at paving trails at Wetherby and a project at Fair Meadows for next year. The next allocation is a $50,000 set-aside for economic development for low- and medium- income (LMI) business assistance, it is typically for job creation, retention, technical assistance for micro-enterprises (i.e. businesses with five or fewer employees, one or more of whom owns the business). They provided $25,000 to 4Cs to support the development of micro-enterprise daycare providers, a $10,000 no interest loan to a cell-phone repair business, and a $5,000 no interest loan to Iconic Salon located in the Sycamore area. Both loans are in repayment and the City still has funds available on a first-come first- serve basis if a business meets the criteria. She noted they are looking for opportunities to provide technical support for entrepreneurs looking to start a business and may partner with the UI as well as the Small Business Development Center for classes and once they have completed classes, they could get Housing and Community Development Commission April 18, 2019 Page 8 of 11 funding. Lastly the City may do an event for home-based businesses this year. The next project was owner-occupied housing rehab, the City provides grants and loans for homeowners, and those who live in targeted LMI areas can get half the assistance as a grant. Mobile homes also get grants. The City received $90,000 from HOME and have three comprehensive rehab projects underway. From CDBG they get $235,000 and to date have six mobile home projects, one emergency, one exterior, seven in target areas and four projects that are in the hopper doing lead assessments and bid estimates. The City has a single application for all housing rehab programs so if someone applies and meets the HOME or CDBG criteria they will receive funding from that program. If their income is over 80% and under 110% AMI they can receive funds through the GRIP program which is local funds, a low-interest loan (the City receives $200,000 annually for that program). Lastly related to owner-occupied rehab is requiring energy audits for homeowners and have completed 10 audits so far this year. The last project is the South District Program, the City received $100,000 in HOME funds to rehab two duplexes, four total units, where the City will purchase properties, rehab them and then sell them to LMI homebuyers. The City selected properties and reached out to the landlords and followed up with the tenants to make sure they were not displacing any tenants but the tenants stated they were not interested in moving and not interested in homeownership so the City needs to look for other properties and perhaps expand the area (initially they just looked at Taylor and Davis Streets). One positive is the partnership with Habitat and Horizons for homeowner courses for anyone who is interested in homeownership. REVIEW AND CONSIDER RECOMMENDATION TO CITY COUNCIL ON APPROVAL OF FY20 ANNUAL ACTION PLAN – PLAN AVAILABLE ONLINE AT http://www.icgov.org/actionplan Lehmann noted a lot of the packet is information that is the same as last year but went over the highlights. One addition this year was as part of the Consolidated Plan where it goes goal by goal set in City Steps and the progress being made on each step they now report specifically on the progress of the goals. Of the eleven goals set four years ago, two are complete (increase the supply of affordable rentals and strengthening economic development). Five are on track to meet their goals and the remaining four are behind what would be expected at the point. However three are expected to be complete on time. Two probably won’t meet the goals set, improving and maintaining public infrastructure facilities because the City decided to do fewer, bigger projects rather than more smaller projects as originally planned, a policy in line with City Steps which states they should focus funding in places to make a bigger difference. The other goal that will likely not be met is for façade improvements, the City went away from façade improvements and now it is being funded through local dollars and thus is not reflected in the CAPER. Lehmann noted another change that happened from the original version, the Departmental and Commission Guidance is something that was not initially added, and how those fit into the preparation of the Plan and for soliciting public input. Consultation is much the same as it was last year although Lehmann has participated more in the local homelessness coordinating board so homelessness initiatives are featured more prominently in the current Action Plan. Also in the Plan is the list of who participated in the creation of the Consolidated Plan. For the timeline, the Annual Action Plan is typically due 45 days prior to the end of the fiscal year which would be around April 15. This year the City did not get their federal funding allocation until April 12, so it due 60 days from that date, currently June 11. The Plan notes the Commission is reviewing it today, there is a 30 day public comment period that starts on May 3 and people can come comment on the Plan at the next HCDC meeting. Council will then consider the Plan following a public hearing on June 4. For federal allocations, the City became aware of them on April 17, so Appendix B shows updated allocations. For HOME and CDBG funds, CDBG funds went up by $500 from budgeted so essentially unchanged from last year, HOME funds were decreased by $97,000 when the City was expecting an 8% decrease and fortunately had appropriately budgeted for this fiscal year, so they actually had slightly more HOME funds than expected which is reflected in Appendix B. Lehmann also noted the funding amounts for prior year resources are slightly higher because they had more program income than expected. Total budget amounts for FY20 are $799,000 and $739,000 for CDBG and HOME respectively. Housing and Community Development Commission April 18, 2019 Page 9 of 11 Lehmann next moved to the goals, objectives, and project descriptions. Project descriptions are broken into categories. Public Service Activities are Aid to Agencies and were increased by $9,000 in CDBG funds from the budget. $8,000 went to Shelter House, $50,000 to DVIP and $55,000 to Neighborhood Centers. They focus CDBG funds to larger agencies because they can handle it. Public Facility Improvements include DVIP and Old Brick, initially the allocation for DVIP was $90,000 and $10,000 for Old Brick. Since funding amounts were within 10% of what was expected, staff prorated the amounts and reallocated to DVIP up to their ask of $120,000 and the rest went to Old Brick for a total of $36,000. The Neighborhood Improvement set-aside, which goes to Parks or Public W orks, remained unchanged at $75,000; Comprehensive Rehab is another set-aside that remained stable at $235,000 for CDBG and $90,000 for HOME; the Other Housing Activities increased from $540,000 to $570,000 so the allocation was prorated with Mayor’s Youth receiving $186,000 in HOME funds; Habitat receiving $53,000; Successful Living receiving $173,000 for acquisition and $62,000 for rehab; The Housing Fellowship receiving $74,000 for rental rehab and $22,000 for CHDO operating. Economic development set-aside remained at $50,000; CDBG and HOME administration went up to the cap per the Council set-aside which leaves $25,000 buffers each for HOME and CDBG in case issues arise, which excludes the additional $51,000 de-obligated for the Arthur Street Healthy Living Center. Lehmann next discussed geographic distribution, the City for federal purposes does not distinguish between target areas and city-wide, all programs are city-wide although the City uses target areas to allow some loans to be forgiven, for example on rehab. While the programs are city-wide staff tries to target specific areas by using the affordable housing location model to distribute affordable housing throughout the community. For affordable housing, the City will assist 28 households overall, 23 will be special needs households through Mayor’s Youth and Successful Living. 14 units acquired, 8 units rehabbed and 6 new units constructed. For public housing it is similar to last year, homeless and special needs is also similar though a risk mitigation fund is something the local homeless board is exploring where they would provide an insurance pool for landlords if there was a homeless tenant and someone didn’t want to rent to them because they were afraid they would destroy the unit, the City insure the landlord who could apply for funds to correct any issues. Some communities have such policies. The Affordable Housing Plan is also included which works to ensure there are affordable housing options and people are not in poverty just trying to pay for someplace to live. Lehmann noted the updated Plan is available for viewing on the City’s website, it has all the appendices and updated action plans. Eastham asked if there was anywhere in the Plan stating the actual rental amounts for units and noted if anyone under an income level of $20,000 per year can afford the rental units the City says are affordable units. Therefore he would this Plan to include a report on rental prices for the parts of the report that refer to affordable rental housing. Additionally the table labeled “AP 20 Annual Goals and Objectives” in the goal outcome column it states there are a total of 11 rental units constructed but it doesn’t say what the initial rent prices were. Lehmann noted the problem with rental prices is they change every year. Eastham said just to see the initial ones is fine. Lehmann will add that to the report. Eastham moved to recommend to City Council approval of the FY20 Annual Action Plan as presented with the addition of the rents of newly created affordable housing units. Brouse seconded. A vote was taken and it passed 5-0. DISCUSSION OF THE COMMUNITY DEVELOPMENT CELEBRATION: Lehmann said the community celebration is April 22-26, Council will make a proclamation set up, there will be a tour of CDBG/HOME projects Wednesday, April 24, and he encourages Vaughan as chair to write an editorial to the paper. The tour will be as follows: Housing and Community Development Commission April 18, 2019 Page 10 of 11 5:30 P.M.: Tour of 80 Whitechapel/15 Colchester, Mayor’s Youth Empowerment Program 5:50 P.M.: Tour of 2620 Muscatine Avenue, The Arc of Southeast Iowa 6:10 P.M.: Discussion at 1105 S. Gilbert Court, Domestic Violence Intervention Program. 6:30 P.M.: Tour of 820 Cross Park Avenue, Shelter House STAFF/COMMISSION COMMENT : Next meeting is May 16. Will need to consider Commissioner’s whose terms end June 30, there may be openings. Eastham stated there is a national firm that has been buying mobile home parks in this area, including the Sunrise Village Mobile Home Park in Iowa City. The firm’s practice has been to increase lot rents in the range of 40% to 60%. Council members Cole and Salih are asking the Council to take some action and are requesting a work session to discuss adding mobile home parks to the affordable housing plans. They are also asking for the consideration of the City’s acquisition of a mobile home park for the purposes of reselling to a nonprofit or possibility a resident led cooperative. Eastman feels HCDC might want to communicate to Council the support of this work session agenda item. The Commission agrees it is a conversation that needs to be had. ADJOURNMENT: Brouse moved to adjourn. Eastham seconded. A vote was taken and passed 5-0. Housing and Community Development Commission April 18, 2019 Page 11 of 11 Housing and Community Development Commission Attendance Record • Resigned from Commission Key: X = Present O = Absent O/E = Absent/Excused --- = Vacant Name Terms Exp. 7/10 9/20 10/11 11/15 12/20 1/17 2/21 3/14 4/18 Alter, Megan 6/30/21 X X X X X X X X O/E Brouse, Mitch 6/30/21 X X X X X X X O/E X Eastham, Charlie 6/30/20 X X X X X X X X X Fixmer-Oraiz, Vanessa 6/30/20 X O/E X X X O/E X X O/E Harms, Christine 6/30/19 X X X X X X X X X Lamkins, Bob 6/30/19 O/E O/E X O/E O/E . . . . . . McKinstry, John 6/30/20 X X X X X X X X O/E Nkumu, Peter 6/30/22 . . . . . . . . X Padron, Maria 6/30/20 X X O/E O/E X X X X O/E Vaughan, Paula 6/30/19 X X X X X X X X X MINUTES PRELIMINARY HOUSING AND COMMUNITY DEVELOPMENT COMMISSION APRIL 24, 2019 – 5:20 PM CITY HALL, LOBBY MEMBERS PRESENT: Megan Alter, Mitch Brouse, Charlie Eastham, Vanessa Fixmer-Oraiz, Christine Harms, John McKinstry, Peter Nkumu, Maria Padron and Paula Vaughan MEMBERS ABSENT: None STAFF PRESENT: Kirk Lehmann, Erika Kubly OTHERS PRESENT: Elias Ortiz, Kari Wilken, Roger Lusala, Mark Sertterh, Chelsey Markle CALL MEETING TO ORDER: Vaughan called the meeting to order at 5:20 PM. PUBLIC COMMENT FOR TOPICS NOT ON THE AGENDA: None. 5:30 P.M.: TOUR OF 80 WHITECHAPEL/15 COLCHESTER: HCDC arrived at 5:30 P.M. Kari Wilken and Roger Lusala (Mayor’s Youth Empowerment Program) showed the Commission a completed project at 80 Whitechapel Drive. The project is a newly constructed accessible home for persons with disabilities. Currently four tenants live there. One tenant showed the Commission her room. Wilken discussed how every project they undertake teaches them lessons for the next time, such as a need for even wider hallways and taller ceilings in the garage. 5:50 P.M.: TOUR OF 2620 MUSCATINE AVENUE: HCDC arrived at 5:55 P.M. Chelsey Markle (The Arc of Southeast Iowa) showed the Commission completed projects at 2620 Muscatine Avenue. The projects include a public facility renovation and new accessible playground area. 6:10 P.M. DISCUSSION AT 1105 S. GILBERT COURT: HCDC arrived at 6:20 P.M. Elias Ortiz (Domestic Violence Intervention Program) showed the Commission pictures of completed projects at their family shelter. The projects included bathroom and kitchen rehabilitations. Ortiz noted he could not give them a tour for confidentiality reasons associated with publishing for the agenda. Housing and Community Development Commission April 24, 2019 Page 2 of 3 6:30 P.M. TOUR OF 820 CROSS PARK AVENUE: HCDC arrived at 6:45 P.M. Mark Sertterh (Shelter House) showed the Commission a completed project at 820 Cross Park Place. The project is a newly constructed 24-unit apartment complex with optional supportive services for the chronically homeless. 23 of the 24 units are currently rented. ADJOURNMENT: Alter moved to adjourn. Vaughan seconded. Passed 9-0 Housing and Community Development Commission April 24, 2019 Page 3 of 3 Housing and Community Development Commission Attendance Record • Not on the Commission Key: X = Present O = Absent O/E = Absent/Excused --- = Vacant Name Terms Exp. 7/10 9/20 10/11 11/15 12/20 1/17 2/21 3/14 4/18 4/24 Alter, Megan 7/1/21 X X X X X X X X O/E X Brouse, Mitch 7/1/21 X X X X X X X O/E X X Eastham, Charlie 7/1/20 X X X X X X X X X X Fixmer-Oraiz, Vanessa 7/1/20 X O/E X X X O/E X X O/E X Harms, Christine 7/1/19 X X X X 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 X X O/E X Nkumu, Peter 6/30/22 . . . . . . . . X X Padron, Maria 7/1/20 X X O/E O/E X X X X O/E X Vaughan, Paula 7/1/19 X X X X X X X X X X ¹º ¹º¹º ¹º¹º ¹º ¹º ¹º¹º¹º ¹º ¹º ¹º ¹º¹º ¹º ¹º ¹º ¹º ¹º ¹º ¹º ¹º ¹º ¹º ¹º ¹ºE CO U RT S T HIGHLAND AVE ROCHES T E R A V E MELROSE AVE SGILBERTS T S7THAVEPAR K RD W BENTON ST R O H R E T RD KIM BALLRDS CLINTON STFO S TER RD LAKESIDE DRKIRKWOOD AVE SUNSETST K E N NEDYPKWY FAIRCHI LD ST E JEFFERS ON ST E WA S HIN G T O N ST N D UBUQUESTE COLLEGE ST NEWTO N RD 2ND AVEN SCOTT BLVD MCCOLLISTER B LVD HEINZRDRUPPERTRD HARVEST RD NEMU SCATINE AVEFRIENDSHIPSTIOWA AVE S1STAVEMORMONTREKB LV D SYCAMORE STN7THAVEE BLOOMINGTON S T TE G DR 3RD AVESANDUSKYD R DOVERST S SCOTT BLVDNDUBUQ UE RD N1STAVEHAWKIN S DRI 0 21Miles Prepared by: K. AckersonNovember 2016 Data Source(s):City of Iowa City,ICCSD, Johnson County Funding available for rental rehab, disabled or elderly housing, and homeownership Funding available for all assisted housing Document Path: S:\Iowa City GIS\PCD_Maps\_Comm_Dev\Location Criteria\Data Analysis_Schools_2017.mxd Affordable HousingLocation Model ¹º ¹º ¹º¹º ¹º ¹º ¹º ¹º ¹º¹º¹º ¹º ¹º¹º ¹º¹º ¹º ¹º ¹º¹º¹º¹º ¹º ¹º ¹º¹º ¹º ¹º ¹º ¹º ¹º¹º¹º ¹º ¹º ¹º ¹º¹º ¹º ¹º ¹º ¹º ¹º ¹º ¹º ¹º ¹º ¹º ¹º ¹º ¹º ¹ºHWY 1H W Y 218 420ST SE IOWAAVE CLINTONSTBYINGTONRDCLAPP STGRAN D AVEMADISONSTMcCOLLISTERBLVD BU R LINGTO N ST KEOKUK STROCKYSHORE DRCHURCH ST LO W ER M USCATINE RDDODGE STDUBUQUESTCAMPCARDINALBL VDRIVERSIDEDRSUMMIT STRIVERSI DE DRMcCOLLISTERBLVD MARKET ST BURLINGTON ST PRAIRIE DUCHIEN RDKIRKWOOD AVE JEFFERSON STHAWKINSDR PARK R D RIVERSIDEDRGOVERNOR STSYCAMORE STMORMON TREK BLVDDODGE STR O H R E T R D COU R T S T HWY1M U SCAT I N E AV EBENTON ST ROCHESTER A V GI LBERTST HWY 6 S C O T T BL VDI 0 10.5 Miles Prepared by: K. AckersonRevised: February 2017 Affordable HousingLocation Model Data Source(s): ICCSD,Johnson County,Iowa City Funding available for rental rehab, disabled or elderly housing, and homeownership Funding available for all assisted housing Riverfront Crossings District Elementary School Free/Reduced Lunch Rate Mobility Rate Standardized Test Percentile Rank TWAIN 0.79 0.27 0.48 HILLS 0.76 0.17 0.45 WOOD 0.75 0.43 0.37 ALEXANDER 0.74 0.34 0.38 KIRKWOOD 0.74 0.42 0.41 LUCAS 0.61 0.39 0.50 MANN 0.48 0.23 0.64 CORALVILLE 0.48 0.31 0.66 HORN 0.41 0.31 0.71 WEBER 0.32 0.18 0.74 BORLAUG 0.32 0.33 0.81 LEMME 0.27 0.26 0.71 LONGFELLOW 0.23 0.16 0.74 GARNER 0.20 0.18 0.68 VANALLEN 0.19 0.11 0.76 PENN 0.18 0.13 0.69 HOOVER 0.18 0.08 0.80 SHIMEK 0.17 0.12 0.78 WICKHAM 0.15 0.13 0.82 LINCOLN 0.07 0.27 0.86 ¹º ¹º ¹º¹º ¹º ¹º ¹º ¹º ¹º¹º¹º ¹º ¹º¹º ¹º¹º ¹º ¹º ¹º¹º¹º¹º ¹º ¹º ¹º¹º ¹º ¹º ¹º ¹º ¹º¹º¹º ¹º ¹º ¹º ¹º¹º ¹º ¹º ¹º ¹º ¹º ¹º ¹º ¹º ¹º ¹º ¹º ¹º ¹º ¹ºHWY 1H W Y 218 420ST SE IOWAAVE CLINTONSTBYINGTONRDCLAPP STGRAN D AVEMADISONSTMcCOLLISTERBLVD BU R LINGTO N ST KEOKUK STROCKYSHORE DRCHURCH ST LO W ER M USCATINE RDDODGE STDUBUQUESTCAMPCARDINALBL VDRIVERSIDEDRSUMMIT STRIVERSI DE DRMcCOLLISTERBLVD MARKET ST BURLINGTON ST PRAIRIE DUCHIEN RDKIRKWOOD AVE JEFFERSON STHAWKINSDR PARK R D RIVERSIDEDRGOVERNOR STSYCAMORE STMORMON TREK BLVDDODGE STR O H R E T R D COU R T S T HWY1M U SCAT I N E AV EBENTON ST ROCHESTER A V GI LBERTST HWY 6 S C O T T BL VDI 0 10.5 Miles Prepared by: K. AckersonRevised: February 2017 Affordable HousingLocation Model Data Source(s): ICCSD,Johnson County,Iowa City Funding available for rental rehab, disabled or elderly housing, and homeownership Funding available for all assisted housing Riverfront Crossings District MORMONTREKBLVDN DODGE STUS 6 IOWA1DODGE STE BURL INGTON S T E BENTON ST GRANDAVE E MARKET ST N MADISON STROCKYSHORE DRR O CHESTERAVE NW R AM PCUR VI 8 0 KIRKW OOD AVE S 1ST AVEMUS CAT INE AVEGOVERNORSTMELROSE AVE I O WAAVE E J EFFERSON STMARKET ST PARK RD US 218 S G IL B E R T S T N D U B U Q U E S T NSCOTTBLVDS E R A M P C U R V BYINGTON RDSRI VERSI DEDRPRO P MCCOLLISTERBLVD LO W ER MUSCATINE RDOLD HIGHWAY218N1STAVEMCCOLLISTERBLVD I 0 10.5 Miles Created by Neighborhood ServicesRevised: November 2018 Affordable HousingLocation Model Data Source(s): ICCSD,Johnson County,Iowa City Riverfront Crossings District Funding available for all affordable housing Funding available for rental rehab, disabled or elderly housing, and homeownership Date: May 16, 2019 To: Housing and Community Development Commission From: Steven J. Rackis, Housing Administrator Re: Iowa City Housing Authority’s Annual Plan for Federal Fiscal Year (FFY) 2019 Introduction: The Public Housing Reform Act requires submission of an Annual Plan. The Annual Plan provides details about the PHA’s current programs and the resident population served, as well as the PHA’s strategy for addressing the housing needs of currently assisted families and the larger community. History/Background: The strategies for meeting the Housing Authorities mission, goals, and objective are stated in the Iowa City Housing Authority’s 5-Year Plan for Fiscal Years 2015-2019 and are contained in CITY STEPS 2016-2020 Iowa City’s Consolidated Plan for Housing, Jobs, and Services for Low-Income Residents. Recommendation: Staff recommends approving the Iowa City Housing Authority’s Annual Plan for FFY19. Streamlined Annual PHA Plan (Small PHAs) U.S. Department of Housing and Urban Development Office of Public and Indian Housing OMB No. 2577-0226 Expires: 02/29/2016 Page 1 of 6 form HUD-50075-SM (12/2014) Purpose. The 5-Year and Annual PHA Plans provide a ready source for interested parties to locate basic PHA policies, rules, and requirements concerning the PHA’s operations, programs, and services, and informs HUD, families served by the PHA, and members of the public of the PHA’s mission, goals and objectives for serving the needs of low- income, very low- income, and extremely low- income families Applicability. Form HUD-50075-SM is to be completed annually by Small PHAs. PHAs that meet the definition of a Standard PHA, Troubled PHA, High Performer PHA, HCV-Only PHA, or Qualified PHA do not need to submit this form. Definitions. (1)High-Performer PHA – A PHA that owns or manages more than 550 combined public housing units and housing choice vouchers, and was designated as a high performer on both of the most recent Public Housing Assessment System (PHAS) and Section Eight Management Assessment Program (SEMAP) assessments. (2)Small PHA - A PHA that is not designated as PHAS or SEMAP troubled, or at risk of being designated as troubled, and that owns or manages less than 250 public housing units and any number of vouchers where the total combined units exceeds 550. (3)Housing Choice Voucher (HCV) Only PHA - A PHA that administers more than 550 HCVs, was not designated as troubled in its most recent SEMAP assessment, and does not own or manage public housing. (4)Standard PHA - A PHA that owns or manages 250 or more public housing units and any number of vouchers where the total combined units exceeds 550, and that was designated as a standard performer in the most recent PHAS or SEMAP assessments. (5)Troubled PHA - A PHA that achieves an overall PHAS or SEMAP score of less than 60 percent. (6)Qualified PHA - A PHA with 550 or fewer public housing dwelling units and/or housing choice vouchers combined, and is not PHAS or SEMAP troubled. A. PHA Information. A.1 PHA Name: Iowa City Housing Authority PHA Code: IA022 PHA Type: Small High Performer PHA Plan for Fiscal Year Beginning: (MM/YYYY): 07/2019_______ PHA Inventory (Based on Annual Contributions Contract (ACC) units at time of FY beginning, above) Number of Public Housing (PH) Units 81___________ Number of Housing Choice Vouchers (HCVs) 1215 & 83 VASH Total Combined 1298 PHA Plan Submission Type: Annual Submission Revised Annual Submission Availability of Information. In addition to the items listed in this form, PHAs must have the elements listed below readily available to the public. A PHA must identify the specific location(s) where the proposed PHA Plan, PHA Plan Elements, and all information relevant to the public hearing and proposed PHA Plan are available for inspection by the public. Additionally, the PHA must provide information on how the public may reasonably obtain additional information of the PHA policies contained in the standard Annual Plan, but excluded from their streamlined submissions. At a minimum, PHAs must post PHA Plans, including updates, at each Asset Management Project (AMP) and main office or central office of the PHA. PHAs are strongly encouraged to post complete PHA Plans on their official website. PHAs are also encouraged to provide each resident council a copy of their PHA Plans. PHA Consortia: (Check box if submitting a Joint PHA Plan and complete table below) Participating PHAs PHA Code Program(s) in the Consortia Program(s) not in the Consortia No. of Units in Each Program PH HCV Lead PHA: Page 2 of 6 form HUD-50075-SM (12/2014) B. Annual Plan Elements Submitted with 5-Year PHA Plans. Required elements for all PHAs completing this document in years in which the 5-Year Plan is also due. This section does not need to be completed for years when a PHA is not submitting its 5-Year Plan. See Section C for required elements in all other years (Years 1-4). B.1 Revision of PHA Plan Elements. (a) Have the following PHA Plan elements been revised by the PHA since its last Five-Year PHA Plan submission? Y N Statement of Housing Needs and Strategy for Addressing Housing Needs. Deconcentration and Other Policies that Govern Eligibility, Selection, and Admissions. Financial Resources. Rent Determination. Homeownership Programs. Substantial Deviation. Significant Amendment/Modification (b) The PHA must submit its Deconcentration Policy for Field Office Review. (c) If the PHA answered yes for any element, describe the revisions for each element below: B.2 New Activities. (a) Does the PHA intend to undertake any new activities related to the following in the PHA’s current Fiscal Year? Y N Hope VI or Choice Neighborhoods. Mixed Finance Modernization or Development. Demolition and/or Disposition. Conversion of Public Housing to Tenant Based Assistance. Conversion of Public Housing to Project-Based Assistance under RAD. Project Based Vouchers. Units with Approved Vacancies for Modernization. Other Capital Grant Programs (i.e., Capital Fund Community Facilities Grants or Emergency Safety and Security Grants). (b) If any of these activities are planned for the current Fiscal Year, describe the activities. For new demolition activities, describe any public housing development or portion thereof, owned by the PHA for which the PHA has applied or will apply for demolition and/or disposition approval under section 18 of the 1937 Act under the separate demolition/disposition approval process. If using Project-Based Vouchers (PBVs), provide the projected number of project based units and general locations, and describe how project basing would be consistent with the PHA Plan. B.3 Progress Report. Provide a description of the PHA’s progress in meeting its Mission and Goals described in the PHA 5-Year Plan. Page 3 of 6 form HUD-50075-SM (12/2014) C. Annual Plan Elements Submitted All Other Years (Years 1-4). Required elements for all other fiscal years. This section does not need to be completed in years when a PHA is submitting its 5-Year PHA Plan. C.1. New Activities (a)Does the PHA intend to undertake any new activities related to the following in the PHA’s current Fiscal Year? Y N Hope VI or Choice Neighborhoods. Mixed Finance Modernization or Development. Demolition and/or Disposition. Conversion of Public Housing to Tenant-Based Assistance. Project Based Vouchers. Other Capital Grant Programs (i.e., Capital Fund Community Facilities Grants or Emergency Safety and Security Grants). (b)If any of these activities are planned for the current Fiscal Year, describe the activities. For new demolition activities, describe any public housing development or portion thereof, owned by the PHA for which the PHA has applied or will apply for demolition and/or disposition approval under section 18 of the 1937 Act under the separate demolition/disposition approval process. (c)If using Project-Based Vouchers, provide the projected number of project-based units, general locations, and describe how project-basing would be consistent with the PHA Plan. See City of Iowa City Council Action Report. (d)The PHA must submit its Deconcentration Policy for Field Office Review. C.2 Certification Listing Policies and Programs that the PHA has Revised since Submission of its Last Annual Plan Form 50077-SM, Certification of Compliance with PHA Plans and Related Regulations, including Item 5 must be submitted by the PHA as an electronic attachment to the PHA Plan. Item 5 requires certification on whether plan elements have been revised, provided to the RAB for comment before implementation, approved by the PHA board, and made available for review and inspection by the public. D Other Document or Certification Requirements for Annual Plan Submissions. Required in all submission years. D.1 Civil Rights Certification. Form 50077-SM-HP, Certification of Compliance with PHA Plans and Related Regulations, must be submitted by the PHA as an electronic attachment to the PHA Plan. D.2 Resident Advisory Board (RAB) Comments. (a)Did the RAB(s) provide comments to the PHA Plan? Y N If yes, comments must be submitted by the PHA as an attachment to the PHA Plan. PHAs must also include a narrative describing their analysis of the RAB recommendations and the decisions made on these recommendations. D.3 Certification by State or Local Officials. Form HUD 50077-SL, Certification by State or Local Officials of PHA Plans Consistency with the Consolidated Plan, must be submitted by the PHA as an electronic attachment to the PHA Plan. E Statement of Capital Improvements. Required in all years for all PHAs completing this form that administer public housing and receive funding from the Capital Fund Program (CFP). E.1 Capital Improvements. Include a reference here to the most recent HUD-approved 5-Year Action Plan (HUD-50075.2) and the date that it was approved by HUD. SEE: City of Iowa City Council Action Report 10/2/2018 To improve quality of life, the Iowa City Housing Authority acts as a community leader for affordable housing, family self-sufficiency, and homeownership opportunities. Date: HCDC May 16, 2018 Annual Report — 2019 Page 2 Table of Contents Pages Staff 3 Executive Summary 4-5 Housing Choice Voucher (HCV) Program 6 Public Housing Program 7 Family Characteristics 8 Family Characteristics and Working Families 8-9 Public Housing Waiting List 10 Housing Choice Voucher (HCV) Waiting List 11 Promoting Family Self-Sufficiency (FSS) & Homeownership 12-15 Funding for Calendar Year 2017 16 Housing Authority Funding Sources Summary 17-18 Partnerships and Community Collaborations 19 Staff Housing Program Assistant Robin Butler Housing Program Assistant Denise Kinnison Housing Program Assistant Carri Fox-Rummelhart Housing Program Assistant Diana Huff Office Manager Jennifer Gosch Family Self-Sufficiency (FSS) Coordinator Mary Abboud Public Housing/Homeownership Coordinator Pat MacKay Housing Choice Voucher (HCV) Program Coordinator Heidi Wolf Housing Administrator Steven J. Rackis Intake/Customer Service Clerk Georgia Black Intake/Customer Service Clerk Benjamin Roberts Annual Report — 2019 Page 3 Page 4 Executive Summary Housing Choice Voucher (HCV), Veterans Supportive Services (VASH) & Public Housing Program Highlights: • The top 5 participant Heads-of-Household characteristics in the Housing Authority’s rental assistance programs are: Disabled and/or Elderly (55%); Households without minors (54%), White (50%), One-person households (49%) and Working families (49%). • Total voucher utilization for Calendar Year (CY) 2018 = 98.3%. • Average Public Housing occupancy for CY 2017 = 97% or 3 vacancies. • Achieved “High Performance” status for the HCV program for Fiscal Year (FY) 2018. • Total available vouchers = 1,298 • Diversity of participants is increasing due to an influx of North African, Middle Eastern and Congolese families. Comparing the Iowa City Housing Authority to the other 71 Housing Authorities in the State of Iowa. Effective dates included: November 1, 2017—February 28, 2019: • ICHA participants have higher average annual incomes - $15,595 vs. $12,923; • The ICHA assists more working families – 49% vs. 33%; • The ICHA assists fewer families receiving welfare – 4% vs. 17%; • ICHA participants pay a higher average monthly amount of the contract rent - $369 vs. $301. Cross Park Place: In 2017, Iowa City’s Shelter House received financing from the Iowa Finance Authority, The Housing Trust Fund of Johnson County, and The City of Iowa City, to construct a 24-unit apartment building, Cross Park Place. Cross Park Place is a Housing First concept, created to provide housing and supportive services for homeless individuals with a disabling condition. The Iowa City Housing Authority (ICHA) is partnering with Shelter House by providing ongoing financial assistance to Cross Park Place, converting 24 of the ICHA’s 1,215 tenant-based vouchers to project-based vouchers (PBV). Attach- ing PBVs) to Cross Park Place residents enables service providers to work more efficiently with residents and improve access to services. Leasing began on Janu- ary 29, 2019, and as of May 1, 2019, 23 of 24 units are occupied.. CY2019 Funding Summary (source: National Association of Housing and Rehabilitation Officials NAHRO): . Tenant-Based Rental Assistance (TBRA) : Housing Assistance Payments (HAP): The Omnibus bill includes $20.313 billion for HAP renewals. NAHRO estimates that this represents a 99 percent proration, though this may change as Annual Report — 2019 Page 5 additional information becomes available. HUD-VASH: The Omnibus bill allocates $40 million for new HUD-VASH vouchers. HUD will make the funding available to PHAs that partner with eligi- ble United States Department of Veterans Affairs (VA) Medical Centers or oth- er entities based on geographical need, PHA administrative performance, and other factors specified by HUD. Ongoing Administrative Fees: The Omnibus bill allocates $1.856 billion for ongoing administrative fees. NAHRO believes that this represents an 82-83 % proration. Public Housing Operating Fund: The bill provides $4.653 billion to support the operation and management of public housing. Based on information provid- ed in HUD’s 2019 Congressional Justifications, funding provided by the bill would be sufficient to fund 96 percent of public housing agencies’ (PHAs’) antici- pated formula eligibility - although this may change as the year progresses and HUD finalizes 2018 and 2019 eligibility. The bill recognizes the challenges of operating a calendar year program with fiscal year appropriations; as a result, the bill continues to extend the period of availability of Operating Funds from one year to two years. Public Housing Capital Fund: The bill provides $2.775 billion for the Capital Fund, $25 million more than FY 2018 funding. NAHRO has long advocated for increases to the Capital Fund and is pleased that the bill provides additional funding to the significant increase that was provided in 2018. That said, funding for the Capital Fund still remains lower than the $3.4 billion annual accrual base- line established by HUD’s 2010 Capital Needs Assessment. Calendar Year 2019 Capital Improvement Funds: The Iowa City Housing Authority's 5-Year Plan for Fiscal Years 2015-2019 was approved by HUD on May 18, 2016. The Capital Improvement funds are earmarked for general maintenance and repair of the Public Housing units. As necessary, these funds will also be used to upgrade structures, interiors, HVAC systems, and applianc- es. The Housing Choice Voucher Program (HCV) is fund- ed by the U.S. Department of Housing and Urban De- velopment (HUD) with the intent of increasing afforda- ble housing choices for elderly, persons with disabilities. & low-income working families. Participants with a HCV voucher choose and lease safe, decent, and af- fordable privately owned rental housing. Total number of available HCV and Veterans’ Affairs Supportive Housing (VASH) vouchers = 1,298. HCV Economic Impact: For Calendar Year 2018 (CY18), the Housing Choice Voucher program paid approximately $7.8 million in Housing Assistance Payments (HAP) to landlords/owners of rental properties in Johnson County. The vouchers in use, as of 3/15/2019, in Iowa City (929) represents 4.7% of the total number of rental units (19,656) in the City of Iowa City. Following is the Johnson County breakdown by city. Overall voucher utilization in Johnson County shows fifty-five percent (55%) were households without minor chil- dren. Housing Choice Voucher Program Page 6 Voucher Utiliza- tion by City As of 3/15/2019 (total = 1,441) Total Population * % of Total Johnson County Incorporated Population Total Vouchers By City % Total Voucher Utilization Households without Minors % Total Vouch- ers By City Iowa City 67,862 50.00% 929 64.5% 533 57.4% Coralville 18,907 13.90% 229 15.9% 117 51.1% North Liberty 18,228 13.40% 126 8.7% 55 43.7% Solon 2,037 1.50% 13 .9% 13 100.00% Oxford 807 0.60% 7 0.005% 5 71.4% Tiffin 1947 1.40% 8 0.005% 2 25.0% Lone Tree 1,300 0.96% 2 0.001% 2 100% Hills 703 0.52% 4 0.002% 2 50.00% Johnson County Total Population 135,736 Johnson County Incorporated 114,558 % of Johnson County Population Living in Incorporated areas = 84% * Source: U.S. Decennial Census 2010 and North Liberty Special Census 2015. 41 VASH Vouchers (3% of total vouchers) are being utilized in the Cedar Rapids Metropolitan Area. 2 HCVP Vouchers (<1% of total voucher) are being utilized in Washington, County; 1 HCV Voucher (<1% of total vouchers) is being utilized in Iowa County. Public housing was established to provide affordable, decent and safe rental housing for eligible low-income families, elderly persons, and persons with disabilities. The U.S. Depart- ment of Housing and Urban Development (HUD) distributes federal subsidies to the Iowa City Housing Authority (ICHA), which owns and manages the housing. The eighty-one (81) Public Housing units are low-density and constructed to conform and blend into the existing neighborhood architecture. The 81 Public Housing units represent half (1/2) of 1% of the total number of rental units in the City of Iowa City. Public Housing Economic Impact for the City of Iowa City: • Total CY18 rental income from Public Housing properties = $310,510 • Payment in Lieu of Taxes (PILOT) paid to the Johnson County Assessor for the Public Housing properties in CY18 = $30,540.10 • In CY18, the Housing Authority paid $301,907 to private sector Iowa City contractors for the capital improvement, general maintenance and repair of the Public Housing properties. Public Housing Annual Report — 2019 Page 7 Public Housing Units by Iowa City Planning Districts Total by Location Total Occupied 3/15/2019 Occupied Units No Minors Occupied Units w/ Minors (includes non- school aged minors) Northeast 6 6 1 5 Central 7 5 0 5 Southeast 31 29 14 13 Southwest 3 2 0 2 South 34 32 3 29 TOTAL 81 74 17 54 On 3/15/2019, 2 units were offline due to HUD approved modernization.. Page 8 Family Characteristics ICHA Participant Characteristics. Definition of Participant (participant family): A person or family that has been admitted to the Iowa City Housing Authority’s HCV, VASH or Public Housing program and is currently receiving housing assistance. Head of Household (HOH) Characteristics. Total Families = 1,384 as reported to HUD: November 1, 2017 — February 28, 2019 (multiple category reporting eliminated — like characteristics will equal 100%) • Disabled and/or Elderly HOH = 762 (55%) • Households without Children = 746 (54%) • White HOH = 692 (50%) • One Person Household = 678 (49%) • Working Households = 678 (49%) • Black/African American HOH = 650 (47%) • Households with Children = 639 (46%) • Disabled HOH = 516 (37%) • Female HOH with Children = 501 (36%) • Elderly & Disabled HOH = 171 (12%) • Elderly HOH = 75 (6%) • Hispanic HOH = 55 (4%) • All Other Races HOH = 42 (3%) Income Sources: Total Families = 1,384 as reported to HUD: Novem- ber 1, 2017 — February 28, 2019 (All Family Members: Many Families Have Multiple Sources of Income): • Social Security (SS)/Supplemental Security (SSI) = 59% • Employment = 49% • Family Investment Program (FIP/Welfare) = 4% • With any Other Income = 13% * • No Income = 6% * Child Support, Self-Employment, Unemployment Insurance, Other Non-Wage Sources. February 28, 2019, point-in-time count: Only eleven (11) of the total 1,446 assisted households are reporting FIP as the sole source of household income. This equals <1% of all currently assisted households. Length of Participation as reported to HUD: 1,384 as reported to HUD: November 1, 2017 — February 28, 2019. • Less than 1 year = 271 (20%) • 1 to 5 years = 499 (36%) • 5 to 10 years = 275 (22%) • 10 to 20 years = 273 (20%) • Over 20 years = 66 (5%) Residence prior to admission — Currently Assisted: Based on the residence identified on the preliminary application and/or prior residence for port-ins. Residency preference does not apply to HUD/VASH. (ICHA jurisdiction is Johnson County, Iowa County, & Washington County North of HWY 92): • ICHA Jurisdiction = 1,192 (83%) • All Other State of Iowa Counties = 108 (8%) • State of Illinois = 85 (6%) • All Other States = 48 (3%) Iowa City Community School District (ICCSD) information 2018-2019; Total Enrollment & Free/Reduced (F/R) Lunch: • Total ICCSD Enrollment K-12 = 13,845@ • Total ICCSD Eligible for F/R (37.4% of total) = 5,184 • Total ICHA (All Programs) Minors K-12 * = 1,349 • Total ICHA (All Programs) K-12 Eligible F/R = 1,028 @ Source: Page 21 of the ICCSD Enrollment, Demographics & Class Size Report, October 2017. * Total may include children enrolled in the Clear Creek Amana School District, or children who have re- ceived scholarships to attend Reginal. Examples of Participants’ Places of Employment: Aramark Food Service, Best Friends Veterinary Care LLC, Blue Sky Satellite Service, Caring Hands & More LLC, Check & Go, Crisis Center, Deadwood Tavern, Dept. of Veterans Affairs, Destiny Cruises & Tours Inc. (Owner), Dial Silvercrest Corp, Durham School Services, EPC Inc, Faith Academy, Handicare, Happy Trails Daycare, HD Supply Management Inc, Hy-Vee, Innovative Software Engineering Inc., ICCSD, John Roffman Construction, Legacy Pointe Assist- ed Living, Loparex, Lucky's Market, Mass Markets, Mercy Hospital, Mid-Prairie Community School District, Self-Employed (cleaning services, private child care), Plank Family Dental Cen- ter, Reach for Your Potential, Remedy Intelligent Staffing, Staff Management, STS Transporta- tion Inc., Systems Unlimited, Team Staffing, University of Iowa, Vangent, WalMart, West Liber- ty Foods, Whirlpool Corporation, Wig & Pen East. Annual Report — 2019 Page 9 Family Characteristics (continued) Applicant (applicant family): A person or family that has applied for admission to the Iowa City Housing Authority’s Public Housing program but is not yet a participant. Eligibility for housing programs is not established until applicants reach the top of the waiting list and their Preliminary Application for Assistance is processed. The Iowa City Housing Authority’s jurisdiction is Johnson County, Iowa; Iowa County, Iowa; and, Washington County, Iowa, North of Highway 92. The general applicant pool from which the Housing Authority draws to determine program eligibility are elderly, disabled, and families with children under the age of 18 who are residents (have a legal domicile) or are employed, in our jurisdiction (Johnson County, Iowa County, and Washington County N of HWY 92). When vacancies exist, the Housing Authority draws applicants from this pool by date and time of application and only those applications of families who qualify for the bed- room size of the available Public Housing units. The eligibility determination process includes verification of residency, family composition, eligibility status, and a national criminal background check conducted through the Iowa Department of Criminal In- vestigation and the Federal Bureau of Investigation. Page 10 Public Housing Waiting List February 27, 2019 Public Housing Waiting List Elderly, disabled, and families with children under the age of 18 who are residents (have a legal domicile) or are employed, in our jurisdiction. Number of Applicants % of Applicants 472 * 100% Elderly 84 18% Disabled 249 53% Families w/minor Children 200 42% White Head of Household 221 47% Black/African American Head of Household 211 45% Multiple races or none reported 28 6% All Other Races Head of Household 12 3% Hispanic Head of Household 32 7% * An additional 9,220 applicants are on the list in lower preference categories (Head-of- Household totals do not add up to 100% because individuals can be counted in multiple categories): The HCV waiting list shares the majority of the characteristics described in the Public Housing section. There is a great deal of duplication as the majority of applicants apply to both lists. For HCV applications, bedroom size is not taken into consideration. When vouchers are available, the Housing Authority draws applications, by date & time of application, from the applicant pool that contains elderly, disabled, and families with children under the age of 18 who are residents (have a legal domicile) or are employed, in our jurisdiction (Johnson County, Iowa County, and Washington County N of HWY 92). The eligibility determination process includes verification of residency, family composi- tion, eligibility status, and a national criminal background check conducted through the Iowa Department of Criminal Investigation and the Federal Bureau of Investigation. Annual Report — 2019 Page 11 HCV Waiting List February 27, 2019 Housing Choice Voucher Waiting List Elderly, disabled, and families with children under the age of 18 who are residents (have a legal domicile) or are employed, in our jurisdiction. Number of Applicants % of Appli- cants 894 100% Elderly 109 12% Disabled 399 45% Families w/minor Children 502 56% White Head of Household 409 46% Black/African American Head of Household 427 48% Multiple races or none reported 58 6% All Other Races Head of Household 19 2% Hispanic Head of Household 52 6% * An additional 22,890 applicants are on the list in lower preference categories (Head-of -Household totals do not add up to 100% because individuals can be counted in multiple categories): Page 12 Promoting Self-Sufficiency & Homeownership The lack of safe, decent, and affordable housing undermines quality education, public health, and economic growth. Affordable housing is a contrib- uting factor to stabilizing families. Stable families are better equipped to take advantage of educational opportunities. With opportunities for and access to advanced education and training, families increase their employability. Sustainable employment offers opportunities to attain self-sufficiency. Economic self -sufficiency leads to a better society and strengthens the “sense of community.” Through our Self-Sufficiency programs, the Housing Authority is helping low income families bridge the economic gap by building assets, improving employ- ment opportunities, and transitioning from renters of units to owners of homes. The Family Self-Sufficiency (FSS) Program: Promotes self-sufficiency and asset development by providing supportive services to participants to in- crease their employability, to increase the number of employed participants, and to encourage increased savings through an escrow savings program. Current FSS Enrollment Data (5/6/2019): • Total FSS participants =177 • Participants with an escrow savings account =159 (90%) • Average monthly escrow savings deposit (participants with an escrow balance) = $285 • Average escrow savings account balance (participants with an escrow balance) = $4,319 • Highest escrow savings account balance = $29,726 Workshop Accreditations: • “Money Smart”: Federal Deposit and Insurance Corporation (FDIC). FSS Program Coordinating Committee: The FSS Program Coordinating Committee has been replaced with three (3) already existing wider-reaching networks that have lessened the duplication of effort in leveraging community resources to promote self-sufficiency among FSS program participants. The FSS coordinator has joined the Community Reentry Network of Johnson County Area which includes representatives from educational institutions, em- ployment services, government agencies, housing agencies, neighborhood cen- ters, labor programs and family services. Participating entities: • Center for Worker Justice. • Goodwill of the Heartland. • Inside Out. • Iowa City Housing Authority. • Iowa Department of Corrections, 6th Judicial District. • Iowa Works. • Jane Boyd Community House. • Kirkwood Community College. • Labor Ready. • Neighborhood Centers of Johnson County. • Shelter House. • Teamsters Local 238. The Iowa City Housing Authority is also a partner in the Workforce Innovation & Opportunity Act (WIOA) one-stop career center service delivery system. WIOA reinforces the partnerships and strategies necessary for one-stops to provide job seekers and workers with the high-quality career services, educa- tion and training, and supportive services they need to get good jobs and stay employed, and to help businesses find skilled workers and access other sup- ports, including education and training for their current workforce. Participating entities: • Kirkwood Community College. • Iowa Workforce Development. • Iowa Vocational Rehabilitation. • Iowa Department for the Blind. • Experience Works. • AARP. Promoting Self-Sufficiency & Homeownership (continued) Page 13 • Denison Job Corps. • Ottumwa Job Corps. • Proteus. • Hawkeye Community Action Agency. • Cedar Rapids Housing Authority. • Iowa City Housing Authority. Interagency Case Management Sub-Committee of the Local Homeless Coordi- nating Board. This group meets to ensure coordination of services provided to families, improve collaboration of services, identify unmet needs, and seek solu- tions. Participating entities: • City of Iowa City. • Domestic Violence Intervention Program. • Hawkeye Community Action Program (HACA) • Iowa City Community School District. • Iowa City Housing Authority. • Iowa Legal Aid. • Johnson County Social Services. • Prelude Behavioral Services. • Salvation Army. • Shelter House. • United Action for Youth. Homeownership Programs: FSS Homeownership: Through our FSS program, many families have used their escrow savings accounts and private mortgages to attain homeownership independent of the Housing Authority programs. Fifty-nine (59) FSS graduates have moved to homeownership. HCV Homeownership Program: Eligible participants have the option of purchasing a home with their HCV assistance rather than renting. • Forty (40) HCV Vouchers have been used to purchase homes since Janu- ary 2003; Sixteen (16) HCV Vouchers are currently active. Tenant-to-Ownership Program (TOP): The Tenant-to-Ownership Pro- gram is funded by HUD. The TOP program offered opportunities for low to very low-income families to purchase single-family homes owned by the Housing Authority. Promoting Self-Sufficiency & Homeownership (continued) Page 14 Annual Report — 2019 Promoting Self-Sufficiency & Homeownership (continued) Annual Report — 2019 Page 15 • Twenty-six (26) homes have been sold and ten (10) resold since May 1998. Affordable Dream Home Ownership Program (ADHOP): The Afforda- ble Dream Home Ownership Program is operated, managed and funded solely by the ICHA. It offers opportunities for income eligible families to purchase newly constructed homes, newer homes, or resale of homes purchased through the TOP/ADHOP programs. • Sixteen (16) homes (10 “Universal Design” homes) were built and sold since May 1999. Down Payment Assistance Program — Grant Award $187,500: Funded with Fiscal Year 2009 HOME funds. First-time homebuyers with a household income of less than 80% of the Area Median Income (AMI) may be eligible for a forgivable loan for down payment assistance. At the date of this publication: • 20 families purchased homes (total funds expended) = $187,500 • Families with household income 60-80% of AMI = 11 • Families with household income <60% of AMI = 9 UniverCity Neighborhood Partnership: The UniverCity Neighborhood Partnership is an effort by the City of Iowa City focusing on neighborhoods located near the University campus that retain a single-family character and a demand for single-family housing, but that also have a large renter population. From May 2011 to May 2015, the Iowa City Housing Authority provided $102,276 in down payment assistance to sixteen (16) families purchasing a Uni- verCity home. In FY2014, the ICHA allocated $170,000 to the UniverCity Neighborhood Part- nership for the rehabilitation of homes purchased by the City of Iowa City. In FY 2015, an additional $20,000 was allocated for rehabilitation of homes. From June 2014 to September 2015, ICHA funds in the amount of $165,164.25 were used for the rehabilitation of eight (8) homes purchased by the City of Iowa City. Annual Report — 2019 Page 16 Funding for Calendar Year (CY) 2017 The United States Congress allocates funding and passes laws for all housing programs. The U.S. Department of Housing and Urban Development’s (HUD) role in the locally administered housing programs is to allocate money to local housing authorities and to develop policy, regulations and other guidance that interprets housing legislation. The Actual Funds Received for CY18. HUD will release the CY18 budg- et details for individual Housing Authorities in May 2019. Housing Choice Voucher Program CY18 • Housing Assistance Payments = $7,846,567 • Administrative Fees = $929,598 • Family Self-Sufficiency Grant = $122,101 • Fraud Recovery = $101,986 • HOME Tenant Based Rental Assistance (TBRA) = $115,055 Total HCV Program CY18 = $9,115,307 Public Housing CY18 • Operating Subsidy = $183,695 • Rental Income = $310,510 • Reimbursement of Expenses/Fraud Recovery = $20,456 • Capital Funds Program (CFP) = $155,514 Total Public Housing CY18 = $670,175 Total Housing Authority Funding CY18 = $9,785,492 Page 17 ICHA income and cash sources. The uses of the cash sources are based on relevant HUD notices and signed agreements between the Housing Authority and HUD. Housing Choice Voucher (HCV) Administrative Fees Administrative fees are available to the ICHA for the operation and manage- ment of the HCV program. Starting January 31, 2004, HUD and Congress, through the approval of the Annual Appropriations Act, restricted the use of ad- ministrative fee income to activities related to the HCV tenant-based rental assis- tance and related development activities (PIH Notice 2008-15). Housing Assistance Payments (HAP) HUD provided funds to cover the housing subsidy paid to owners/landlords directly by the ICHA on behalf of the participating family. The family pays the difference between the actual rent charged by the landlord and the amount subsidized by the program. Under certain circumstances, if authorized by the ICHA, a family may use its voucher to purchase a modest home. HUD/Veterans’ Affairs Supportive Housing (VASH) This is tenant based rental assistance funds targeting homeless veterans partici- pating in VA Case Management Services. Family Self-Sufficiency (FSS) The FSS program is a tenant self-sufficiency work incentive program. ICHA estab- lishes cash accounts for FSS program participants that will be available to them if they complete the program. ICHA’s contributions to these accounts are funded by HUD through the ICHA’s regular funding process. FSS cash is not available to ICHA for any other use. Public Housing Operations Under Section 9(3) of the Housing Act of 1937, Operating Funds are available to the ICHA for the operation and management of the Public Housing program. These funds assist the ICHA in bridging the gap between the rent collected and the operating expenses of the program. Operating cash is only available for the use and benefit of public housing units and residents. Iowa City Housing Authority (ICHA) Funding Sources Annual Report — 2019 Page 18 Housing Authority Capitol Fund Grants HUD provides funds to the ICHA to improve the physical condition, upgrade the management and operation and carry out other activities for Public Housing developments. These funds are primarily used for general maintenance and re- pair of the Public Housing units. As necessary, these funds will also be used to upgrade structures, interiors, HVAC systems and appliances. Capital Funds are calculated and allocated by an established formula. Affordable Dream Homeownership Program (ADHOP) On September 3, 1993, the ICHA entered into a Section 5(h) Agreement with HUD. The purpose of this program is to create affordable home ownership oppor- tunities throughout Iowa City. This agreement authorizes the ICHA to sell Public Housing units and use the sales proceeds to construct or purchase homes for reha- bilitation to continue the cycle. To ensure affordability, the ICHA provides a sec- ond mortgage for the homeowners. Broadway Sales Proceeds ICHA received approval from HUD for the sale of 18 units at 1926/1946 Broadway Street, Iowa City, Iowa. Per the approved plan submitted to HUD, the sales pro- ceeds were to be used for the development of 18 low-density scattered site re- placement units that would be more efficiently and effectively operated as lower income housing. There is no other permissible use of these funds per the agree- ment. Public Housing Tenant Security Deposits The ICHA holds security deposits until tenants vacate units. At that time, the ten- ants receive a full or partial refund depending on such factors as remaining rental or other charges outstanding and reimbursement of damage repairs. Tenant security deposit cash is not available to ICHA for any other use. Annual Report — 2019 Page 19 Partnerships and Community Collaborations • University of Iowa School of Social Work. • Women's Resource and Action Center (WRAC). • Montessori School. • Goodwill of the Heartland. • Habitat for Humanity. • Iowa Women’s Foundation. • Iowa City Junior Service League. • Shelter House. • Iowa State University (ISU) Extension. • Iowa City Area Association of Realtors. • Hawkeye Area Community Action Program (HACAP). • Foster Grandparents Program. • The Housing Trust Fund of Johnson County (HTFJC). • City of Iowa City Parks & Recreation. • City of Iowa City Neighborhood Services. • Iowa City Public Library. • Iowa City Human Rights Commission. • Domestic Violence Intervention Project (DVIP). • Johnson County Department of Public Health. • Horizons Community Credit Counseling. • Johnson County Local Homeless Coordinating Board. • Cross Park Place. • Workforce Innovation & Opportunity Act (WIOA) Partners. • Veterans’ Administration. • Kirkwood Community College. • Reentry Network of Johnson County. • Crisis Center. • ABBE Center for Community Mental Health. • Iowa City Community School District. • Community Transportation Committee. Phone: (319) 356-5400 FAX: (319) 356-5459 Web: www.icgov.org/icha Page 20 We provide: • Information and education, • Housing assistance, • Public and private partnership opportunities. Item Number: 6.a. October 2, 2018 Resolution adopting the Iowa City Housing Authority Housing Choice Voucher Program (HCVP) Administrative Plan. Prepared By:Steven J. Rackis, Housing Administrator, Iowa City Housing Authority Reviewed By:Tracy Hightshoe, Director, Neighborhood and Development Services. Erika Kubly, Coordinator, Neighborhood Services. Fiscal Impact:No impact Recommendations:Staff: Approval Commission: Housing and Community Development Commission reviewed and recommended approval by unanimous vote at their September 20, 2018 meeting. Attachments:Resolution Executive Summary: The purpose of the HCVP Administrative Plan is to: Establish policies for issues not covered under Federal regulations for the HCVP and Family Self-Sufficiency (FSS) programs administered by the ICHA. The provisions of this Administrative Plan govern administration of the HCVP and FSS programs administered by the ICHA. Background / Analysis: The need for affordable housing in Johnson County, Iowa, is well-documented, as is the lack of resources to develop “brick and mortar” solutions to meet our county’s affordable housing demand. Absent “brick and mortar” development, affordable housing providers need to maximize existing resources to make housing affordable for very low-income, extremely low-income, and homeless individuals/households with a disabling condition. To this end, the ICHA proposes using up to 5% of our authorized tenant-based vouchers for project-based voucher (PBV) assistance (approximately 61 out of 1215 total vouchers). Therefore, the ICHA proposes the following significant amendments to Chapter 5.2.2 Preferences and creating a project-based voucher program by adding Chapter 17. The entire HCVP Administrative Plan, with the proposed changes, can be found at the ICHA website www.icgov.org/icha under Housing Authority documents. Significant amendment 1: Chapter 5.2.2 Targeted Preferences: Replace individuals referred by Housing First FUSE with individuals referred by Shelter House for HUD funded Permanent Supportive Housing (e.g., Fairweather Lodge, Cross Park Place). Significant Amendment 2: Adding Chapter 17 creating a project-based voucher (PBV) program: The ICHA manages the Federally-funded HCVP. These vouchers are “tenant-based,” meaning families can use them to rent any private apartment that meets program guidelines. PBV vouchers, in contrast, are attached to a specific unit whose landlord contracts with the local public housing agency to rent the unit to low-income families. Families in both programs contribute 30 percent of their income for rent and utilities; the voucher pays the difference between the tenant contribution and the unit’s total rent and utility costs. Benefits of the Iowa City Housing Authority’s PBV program: 1.Provide supportive services to voucher tenants. Some tenants, like the chronically homeless, elderly, and people with disabilities, might need additional services to maintain stable housing and their health. Attaching PBVs to a number of units in the same property can enable service providers to work more efficiently with residents and improve access to services. PBVs are particularly well suited to create permanent supportive housing. 2.Help families secure units where it may be hard to use vouchers. Living in lower-poverty neighborhoods can benefit both voucher holders and their children, but families with vouchers may be unfamiliar with such neighborhoods or have difficulty finding willing landlords, or their voucher may not pay the market rent in these neighborhoods. In neighborhoods with low vacancy rates, stiff competition for available units exacerbates these problems. PBVs lower many of those barriers by creating dedicated units stiff competition for available units exacerbates these problems. P BVs lower many of those barriers by creating dedicated units for low-income families. Goals of the Iowa City Housing Authority’s PB V program: 1. Collaborate with local agencies participating in the Continuum of Care/Coordinated Entry service delivery system to promote the development of Permanent Supportive Housing options and ensure prioritization of placement for individuals/households demonstrating highest need. 2. Provide incentives to affordable housing developers to build scattered site housing for extremely low-income and very low-income families on City assisted properties. AT TAC HM E NT S: Description Resolution City of Iowa City Council Action Report (continued) a. The total number of contract units by number of bedrooms: 24 total units. All 1-bedroom units. b. Information needed to identify the site and the building or buildings where the contract units are located. The information must include the project's name, street address, city or county, state and zip code, block and lot number (if known), and any other information necessary to clearly identify the site and the building. Physical location: Cross Park Place 820 Cross Park Avenue Iowa City, Iowa 52240 Legal description: Lot:18, Block 1, Braverman Center, Iowa City, Iowa, according to the plat recorded in Book 31, Page 137, Plat record of Johnson County, Iowa c. Information needed to identity the specific contract units in each building. The information must include the number of contract units in the building, the location of each contract unit, the area of each contract unit, and the number of bedrooms and bathrooms in each contract unit: All 24 units within the building are contract units. The units are dispersed throughout two floors of the building located at 820 Cross Park Avenue. All units are One-bedroom, one-bathroom units. Eighteen units are 372 square feet, and six units are 391.7 square feet. d. Services, maintenance, and equipment to be supplied by the owner without charges in addition to the rent to owner: See Exhibit B. e. Utilities available to the contract units, including a specification of utility services to be paid by the owner (without charges in addition to rent) and utility services to be paid by the tenant: All utilities are provided and paid by the owner. f. Features provided to comply with program accessibility requirements of Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations at 24 CFR part 8: See Exhibit D. g. The HAP contract term: Initial contract term is One (1) year. h. The number of units in any project that will exceed the 25 percent per-project cap (as described in §983.56), which will be set-aside for occupancy by qualifying families (elderly and/or disabled families and families receiving supportive services): 18 units. i. The initial rent to owner (for the first 12 months of the HAP contract term): $684. Timeline and Analysis of the Housing Authority’s efforts to create a Resident Advisory Board (RAB) March 2009 In March 2009, The Housing Authority surveyed all active Public Housing tenants and Family Self-Sufficiency (FSS) program participants (211 families) to determine interest in serving on a Resident Advisory Board (RAB). Twenty-six (26) families responded. May 2009 In May 2009, The Housing Authority sent the 26 RAB interest survey respondents a copy of the survey used to collect citizen input for CITY STEPS Iowa City’s Consolidated Plan for Housing, Jobs, and Services for Low-Income Residents 2010 – 2015. Eight (8) families responded. October 2010 In June 2008, the Iowa City Housing Authority’s Public Housing unit located at 608 Eastmoor, Iowa City, Iowa, was severely damaged by flooding. It was located in the 500 year flood-plain. Due to the City of Iowa City’s intent to purchase all properties located the 100 and 500 year flood-plains, the Housing Authority submitted a Demolition/Disposition applications to the Federal Department of Housing and Urban Development (HUD). HUD requires RAB input/comment for Demolition/Disposition applications. The 26 respondents to the Housing Authority’s March 2009 RAB Interest Survey were contacted to submit input/comments – none responded. December 2014 In December 2014, The Housing Authority surveyed all active Public Housing tenants (75 families) to determine interest in serving on a Resident Advisory Board (RAB). Seven (7) families responded; three (3) stating an interest; four (4) stating no interest. Analysis of the recommendations submitted by Resident Advisory Board (RAB) and the decisions made on these recommendations. There appears to be very little interest in Housing Authority participating families in serving on a RAB focusing on solely on Housing Authority programs and services. The majority of comments received via 3 separate survey instruments are beyond the scope, power, and authority of the Iowa City Housing Authority to impact these concerns, or other City Departments and Community Based Agencies are better suited to meet these concerns. Examples include fixing streets, repairing abandoned homes, empowering neighborhoods, dealing with perception of City-wide increase in criminal activity, Safety, events, neighborhood development & clean up etc. The Iowa City Housing Authority and the City of Iowa City Neighborhood Services will continue the initiative we launched in 2008: “Good Neighbors—Strong Neighborhoods”. The idea is to partner with Neighborhood Associations to develop strategies to promote the peaceful enjoyment of the neighborhood for all residents. Our goal is the increased participation of Housing Authority clients in the activities sponsored by the City of Iowa City Neighborhood Associations. Through the Office of Neighborhood Services, the City of Iowa City supports and encourages neighborhood action and provides ideas and resources that can help shape the future of a neighborhood. The City coordinates with the Neighborhood Associations to work through their short and long-term needs that best serve the interests of the neighborhood within the goals of the larger community. The City of Iowa City also provides financial and technical assistance in the printing and mailing of newsletters and meeting notices. We will repeat the survey process in partnership with the City of Iowa City Housing and Community Development Commission when citizen input is collected for CITY STEPS Iowa City’s Consolidated Plan for Housing, Jobs, and Services for Low-Income Residents 2021 – 2025 and the Iowa City Housing Authority 5-year plan for 2021 – 2025. i CITY OE IOWA CITY www.icgov.org April 23, 2019 ATTACHMENTS: Item Number: 8.n. Description Sara Barron, Affordable Housing Coalition: Collecting rental unit prices as part of rental permit process Kellie Fruehling From: Sara Barron <jcaffordablehousing@gmail.com> Sent: Wednesday, April 17, 2019 2:26 PM To: Stan Laverman; Council Subject: Collecting rental unit prices as part of rental permit process Attachments: 19.04.17 Memo to Iowa City re rental permit changes.pdf This failed to send to you the first time. Thanks! A& JOHNSON COUNTY Affordable Housing Coalition Sara Barron I she/her/hers Executive Director www.icaffordablehousing.org I www.facebook.com/icaffordablehousine I @jcahcoalition From: Sara Barron Sent: Wednesday, April 17, 2019 2:24 PM To: Geoff Fruin Cc: trace-hiehtshoe@iowa-city.ore; stan-laverman@iowa-city.ore; council@iowa-city.ore Subject: Collecting rental unit prices as part of rental permit process Dear Geoff, Attached, please find a memo outlining a request from the Affordable Housing Coalition for the City of Iowa City to collect rental unit prices through the rental permit process. Thanks, Sara 0 Sara Barron I she/her/hers Executive Director www.ocaffordablehousing.ore I www.facebook.com/icaffordablehousine I @jcahcoalition Johnson County Affordable Housing CoalitionAn308E. Burlington Street, PMB 121CIowaCity, Iowa 52240 JOHNSON COUNTY jcaffordablehousing@gmail.com Affordable Housing Coalition www.facebookcom/jcaffordablehousing TO: Geoff Fruin, City Manager, City of Iowa City CC: Tracy Hightshoe, Neighborhood and Development Services Director; Stan Laverman, Senior Housing Inspector; City Council FROM: Sara Barron, Executive Director, Johnson County Affordable Housing Coalition RE: Collecting rental prices through the rental permitting process Difficulty in collecting data about the cost of existing rental housing units has been a major hurdle in tracking our progress toward affordable housing for all. As the City of Iowa City prepares to create a new software platform for issuing and managing rental permits, the Affordable Housing Coalition is formally requesting that the City of Iowa City include a field that will collect the unit price at the time of permit application or renewal. We understand that this is a change in practice. The opportunity provided by this software development is the perfect moment to make it. Including this field will enable the collecting and aggregating of data for review without adding to staff responsibilities. Data -driven solutions require a systemic commitment to collecting data. We look forward to the City of Iowa City's response to this request. Feel free to contact me at jcaffordablehousing_(i amail.com with questions, comments, or to schedule a time to discuss further. Thank you for your time. S.n Kellie Fruehling 2l From: Johnson County Affordable Housing Coalition<jcafforda6TeTiou sng gUmaiiC SmC>buted Sent: Tuesday, April 23, 2019 1:10 PM To: Geoff Fruin JL_ a Cc: Subject: Council; Sue Dulek; Tracy Hightshoe Re: Collecting rental unit prices as part of rental permit p(Ow) Yes, I'd love to schedule a meeting. If it's easiest, please suggest some time that would work for you and any other staff you'd like to include, and I'll accommodate your availability. Thanks much, Sara On Tue, Apr 23, 2019 at 12:03 PM Geoff Fruin <Geoff-Fruin@iowa-city.ore> wrote: Hi Sara — This issue has come up a few times in recent years, most recently in late 2017 in response to a similar request from HCDC. Here is a review of the hesitations that we have with this proposal: First, we have concerns about our legal standing to require such data on the permit application. We need to make clear connection to the related housing code purpose and cities in Iowa do not have broad authority to regulate rents. Creating an optional field may be a way to work around this concern. Staff will not have the ability to verify data that is submitted. Data submitted will be point in time and may become outdated over the course of the rental permit. Comparing data between properties may be difficult as many rental permits are still on a two year cycle while others have been shifted to a one year cycle. It will be difficult to account for unique offerings that may influence rental amounts (inclusion of utilities, inclusion of parking, size of rooms, building amenities, unit furnishings, etc.). As we design and customize the new permit software we can look at its functionality and see what types of inputs could be offered and further what type of reports could be ran from the information that is submitted. However, I personally doubt the data will be reliable enough for elected officials to use with confidence as they consider policies and programs. I think a well -crafted survey and concerted effort from the community to garner strong, accurate responses could provide more meaningful and reliable data. Such an effort would also help extend this effort throughout the entire housing market in Johnson County and not just in one jurisdiction. I would be interested in talking through this approach with you and comparing the pros and cons of it versus an optional field on our rental permit application. Let me know if you would like to meet and continue this discussion. Best, Geoff CITY OF IOWA CITY Geoff Fruin UNESCO Cm OF UTEPATURE City Manager p:319-356-5013 0000 410 E Washington St Iowa City, IA 52240 From: Sara Barron[mailto:Icaffordablehousins@Rmail.coml Sent: Wednesday, April 17, 2019 2:25 PM To: Geoff Fruin <Geoff - Fru in@iowa-citv.org> Cc: Tracy Hightshoe <Tracv-Hiahtshoe@iowa-citv.ors>; stan-laverman@iowa-citv.org <?stan-laverman@iowa-city.ora>; council@iowa-citv.ors <?council@iowa-citv.orp> Subject: Collecting rental unit prices as part of rental permit process Dear Geoff, Attached, please find a memo outlining a request from the Affordable Housing Coalition for the City of Iowa City to collect rental unit prices through the rental permit process. Thanks, Sara JOHNSONCOUNTr Affordable HoushV Coahbon Sara Barron I she/her/hers Executive Director www.icaffordablehousing.orQ I www.facebook.com/ecaffordablehousing I @jcahcoalition Disclaimer The information contained in this communication from the sender is confidential. It is intended solely for use by the recipient and others authorized to receive it. If you are not the recipient, you are hereby notified that any disclosure, copying, distribution or taking action in relation of the contents of this information is strictly prohibited and may be unlawful. Sara Barron I she/her/hers Executive Director Johnson County Affordable Housing Coalition www. icaffo rda bleho usin¢.o r¢ www.facebook.com/Icaffordablehousing @jcahcoalition 5/9/2019 Rent hikes hit Iowa City, West Branch mobile home parks | The Gazette https://www.thegazette.com/subject/news/business/rent-hikes-hit-iowa-city-west-branch-mobile-home-parks-20190428 1/7 Rent hikes hit Iowa City, West Branch mobile home parks Park acquisitions in Iowa dovetail with nationwide trend Stephen Frantz is no master of divination. He doesn’t own a crystal ball and isn’t versed in reading tea leaves. Even so, the 53-year-old resident of Sunrise Village mobile home park in Iowa City accurately called out new community owner Havenpark Capital’s plans, a few days before the Orem, Utah-based real estate investor unveiled them. ”They’re going to give us a little thing, and they’re going to say ... the rent increase is going to be in effect,” Frantz said earlier this month. “They’re just going to hit you with it.” He paused, before gesturing around the community he’s called home for 23 years. “A lot of these people don’t even know this is happening,” he said. That was Friday, April 19. The following Monday, staff at Sunrise and West Branch Village mobile home parks distributed letters f rom Havenpark, announcing lot rents would go up starting July 1 at the two parks, which the company bought f rom Hames Homes of Cedar Rapids in April. Rent will increase f rom $355 to $455, or 28 percent, at Sunrise, and 24 percent to 33 percent, to $385, f rom its current range of $210 to $310 at West Branch, the letters said. Residents at West Branch also will pay $25 “premium fees” if they have a corner lot or a double-wide home. Those are smaller jumps than Havenpark is pursuing at two other Iowa mobile home parks it acquired in March — Golf View Mobile Home Court in North Liberty and Midwest Country Estates in Waukee. ARTICLE CONTINUE S BELOW ADVERTISEMENT There, the company will raise the respective lot rent f rom $284 to $450, or 58 percent, and f rom $295 to $500, or 69 percent, also beginning July 1. Havenpark delayed implementing the higher rent by one month at those parks, after some residents enlisted housing-rights groups for help in organizing and negotiating over the increases. The residents also have been in touch with some state ofcials, who now are considering legislation they say will better safeguard the mobile home park residents. These groups acknowledge Havenpark is well within its rights to raise the rent, and the company itself says it will be charging residents rates consistent with those of other mobile home community operators. Sponsored Content Why Mazda Is Obsessed With Beautiful Design By Mazda 5/9/2019 Rent hikes hit Iowa City, West Branch mobile home parks | The Gazette https://www.thegazette.com/subject/news/business/rent-hikes-hit-iowa-city-west-branch-mobile-home-parks-20190428 2/7 VIEW ALL NEWSLETTERS Privacy Policy BUSINESS E-NEWSLETTER A weekly roundup of the most popular Business articles.  But the specics — such as how large an increase, and whether it’s incremental or all at once — matter a great deal to the park residents, including some identifying as low-income, elderly or disabled. For those who rely on the parks for low-income housing in the area, even small hikes in rent can hang over their heads like the sword of Damocles. AT THE LOCAL LEVEL In purchasing the Sunrise and West Branch mobile home parks, Havenpark brought a combined 291 lots with 733 residents under its umbrella, according to the parks’ latest occupancy statistics. Sunrise resident Frantz said, in his experience, that park stands out as a f riendly, respectful community of neighbors. “You walk down the street, somebody makes eye contact, ‘Hey, how you doing?’” he said. When Robert Parsons, who lives alone in the West Branch park, rst heard about a possible rent increase f rom a neighbor, before it was announced, he said, “I didn’t know if he was just kidding me or giving me a bunch of baloney or if he was serious.” ARTICLE CONTINUE S BELOW ADVERTISEMENT Then, the 61-year-old university custodian heard a similar story f rom a park employee and wondered, “How can people live here if they do that?” Barbara Hames, president of former owner Hames Homes, said the rent was on track to increase at the two parks, regardless of whether Havenpark bought them, due to necessary upgrades to the sewer lagoons used in their wastewater treatment. The upgrades, required under the Iowa Department of Natural Resources, would have cost around $1 million at Sunrise alone, she said. Hames, whose parents owned the parks since the 1970s, said, “There’s a personal relationship there that’s hard to let go of, but ... with the wastewater treatment issues, how expensive and time-consuming that was Email Address I am above 13 years of age, and agree to sending policies. SIGN ME UP CELEBRATE THE SPIRIT OF ENTREPRENEURSHIP & INNOVATION Professionals at every level come together, share ideas, and own their success. BUY TICKETS 5/9/2019 Rent hikes hit Iowa City, West Branch mobile home parks | The Gazette https://www.thegazette.com/subject/news/business/rent-hikes-hit-iowa-city-west-branch-mobile-home-parks-20190428 3/7 going to be, most (residents) understood why we sold.” “They weren’t happy about it, but they understood.” Another West Branch park resident, Fred Moore, said he likely will have to nd additional work, on top of his employment with a local publishing company, to cover the increase on his lot, where he lives with his wife, daughter and mother-in-law. “I really don’t want to leave. ... This is my hometown,” said Moore, who has lived in his current site since 2002. Moore described paying family bills as “robbing Peter to pay Paul sometimes,” but said Havenpark’s ultimate 24 percent to 33 percent increase could’ve been worse. “At least it’s not $100 more. It’s still a lot for the senior citizens here,” he said. ‘WE’RE HUMAN BEINGS’ Though he did not attend, Moore said West Branch park residents were invited to attend a recent meeting in North Liberty, where their Golf View counterparts formed a community association to push back against their own rent hikes. ARTICLE CONTINUE S BELOW ADVERTISEMENT Don Lund, one of the association organizers, said he was not sure whether the group could persuade Havenpark to adjust its proposed rent increases, “but I’d rather go down ghting than not do anything at all, at least to make sure they know we’re human beings and we are a community.” The sports writer later added, “Just because I don’t have a lot of money doesn’t mean I’m not important.” Hames said she recognizes the concern among park residents but added, “Where else in Iowa City are you going to nd housing for $455 a month? Even if the rent hikes seem steep, it’s still a real bargain compared to condos and apartments.” In a statement, Jodie McDougal, an attorney representing Havenpark, said the company intends to make “well over $2 million” in investments into Golf View and Midwest Country Estates, including for new homes, road improvements and playgrounds for children, though she did not specify similar plans for the Sunrise and West Branch parks. Havenpark also will offer services f rom its sales and leasing company to park residents who wish to sell their homes, and even could offer to buy some residents’ homes directly, the attorney wrote, though she did not mention pricing details. Havenpark paid $2.8 million for Sunrise and $1.8 million for West Branch, according to property records and the county assessor’s ofce. The company spent $12.3 million and $17.4 million, respectively, to buy Golfview and Midwest Country Estates, the records show. THE BIG PICTURE Lund, one of the resident association organizers, was one of seven residents f rom Golf View and Midwest Country Estates who visited the Iowa State Capitol in Des Moines on April 17, and spoke about the mobile home acquisitions at a news conference with two state senators. The following week, Zach Wahls, D-Coralville, and Kevin Kinney, D-Oxford, began circulating a memorandum among lawmakers, proposing multiple new protections for mobile home park residents. ARTICLE CONTINUE S BELOW ADVERTISEMENT State senators approved two proposals Friday — tripling the notication period for rent increases f rom 60 to 180 days and requiring park owners to show “good cause” when evicting residents — with state 5/9/2019 Rent hikes hit Iowa City, West Branch mobile home parks | The Gazette https://www.thegazette.com/subject/news/business/rent-hikes-hit-iowa-city-west-branch-mobile-home-parks-20190428 4/7 representatives also poised to vote as of press time. Sen. Annette Sweeney, R-Alden, the bill manager, said the legislation was a “big bipartisan effort” among lawmakers and would give mobile home park residents “a little more security.” “We talked about how it’s affecting some of our people and we want to make sure people are taken care of,” she said. At the news conference, Wahls spoke critically of mobile home park owners like Havenpark. “It is unconscionable that people are trying to take this approach, acquire the park, jack up the rent, evict people,” he said. “This is an incredibly traumatic experience ... . Fundamentally, this is not right.” Havenpark’s purchases and rent hikes of mobile home parks mirror a nationwide trend, albeit on a smaller scale. Havenpark’s website shows it owns 25 mobile home communities totaling around 5,000 home sites in nine states, though the site is not fully up to date. Nationwide, there are about 8.5 million mobile homes, or 10 percent of the nation’s housing stock, per data f rom the Manufactured Housing Institute. Census data shows approximately 20 million Americans live in the homes. The largest 50 companies that own and operate parks nationwide control an estimated 693,447 lots, up f rom 521,836 lots in 2015, the institute says. ARTICLE CONTINUE S BELOW ADVERTISEMENT Equity LifeStyle Properties Inc., had the most sites as of last year, at 71,500, followed by Sun Communities Inc., with 71,129 lots, and RHP, with 54,200 lots. A February report f rom the Private Equity Stakeholder Project and two partner groups suggests that the mobile home parks appealing for private equity and real estate companies to snap up because their residents have few affordable housing alternatives. “For most residents, it is nearly impossible to move their homes — the structures cannot withstand the move, the costs of moving them are unaffordable and nding a new spot is untenable,” the report reads. “When community owners raise the lot rents, residents are trapped, choosing between paying (higher) rent and abandoning their home.” Lot rent increases generally have tracked with a 20-year trend of mobile home park ownership shifting f rom mom-and-pop enterprises to large, multi-state corporations, the report continued. Sunrise Capital Investors CEO Kevin Bupp in a 2015 podcast encouraged investors to raise rents after purchasing mobile home parks, saying the extra lot rent “goes immediately to your bottom line.” Parsons said even though a rent increase would be a “big deal” for him and likely strain his budget, he feels stuck in West Branch. “Where else would I move? Nobody would want this place, especially if the rent went up that much,” he said. ADVERTISEMENT “You’re lucky if you can nd a one-bedroom for $600 and the companies know it,” said Frantz, who pays $355 a month in lot rent for a three-bedroom, two-bathroom mobile home. “It’s like OK, we can go in there and raise the lot rent because it’s not cheap to move one of these, plus you’d have to nd another place to move it to. It’s just an extreme hassle.” Jodie McDougal, the Havenpark attorney, said that because the rent had not been increased for years at the company’s newly acquired parks, a mobile home community was no longer the “highest and best” use for 5/9/2019 Rent hikes hit Iowa City, West Branch mobile home parks | The Gazette https://www.thegazette.com/subject/news/business/rent-hikes-hit-iowa-city-west-branch-mobile-home-parks-20190428 5/7 the real estate, compared to luxury apartments or single-family homes. As such, she said, Havenpark averted a “mass-eviction event f rom a potential developer” by continuing to operate the parks. “In exchange for preserving the current housing at this property we expect our tenants to also pay a fair market rent when compared with other types of affordable housing in the area,” McDougal said. Havenpark declined to comment on the proposed new mobile home legislation, its specic rent rates or future park purchases. “We continue to acquire quality assets and invest in them to make them viable, affordable options throughout several states and markets throughout the U.S.,” its attorney said. • Comments: (319) 398-8366; thomas.f riestad@thegazette.com Thomas Friestad The Gazette   Ben & Jerry’s co-founder talks origin of ice cream empire, social responsibility for businesses Drone spraying can work for crops like hemp, grapes, says Iowa City company Rent hikes hit Iowa City, West Branch mobile home parks Sen. Joni Ernst ‘cautiously optimistic’ relief f rom tariffs will come soon First Federal Credit Union expects to open Marion ofce in early 2020 All articles by Thomas  GIVE US FEEDBACK We value your trust and work hard to provide fair, accurate coverage. If you have found an error or omission in our reporting, tell us here. Or if you have a story idea we should look into? Tell us here. 5/9/2019 Rent hikes hit Iowa City, West Branch mobile home parks | The Gazette https://www.thegazette.com/subject/news/business/rent-hikes-hit-iowa-city-west-branch-mobile-home-parks-20190428 6/7 Despite f rustrations, Grassley, Ernst back president on Chinese trade talks Facebook co-founder calls for breakup of company Global meat output to fall as swine u ravages China pig farms Edison Pub & Eatery features light bulb decor, hearty meals MORE BUSINESS ARTICLES TO READ NEXT ... 5/9/2019 Rent hikes hit Iowa City, West Branch mobile home parks | The Gazette https://www.thegazette.com/subject/news/business/rent-hikes-hit-iowa-city-west-branch-mobile-home-parks-20190428 7/7 Ofcer-involved shooting in Iowa City under investigation by DCI Cedar Rapids mayor to recuse himself on key trafc camera vote Kelsea Ballerini bringing 'Miss Me More' tour to U.S. Cellular Center Friday night Springville man accused of abusing two young girls for months in Fairfax TOP STORIES FROM THE GAZETTE TRENDING Funerals set for children killed in I-80 crash Chew on this: New coffee kiosk, a bike-f riendly bar, thespian-inspired ice cream and Iowa’s Best Burger Kamala Harris campaign launches paid internships in Iowa Iowa City man faces sex abuse charge Free community college tuition for some Linn County high schoolers part of county’s vision Iowa Medicaid transition meetings aim to calm concerns, director says