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Upcoming Housing & Community Development Commission Meetings
Regular: January 19, 2023 (No December Meeting)
HOUSING & COMMUNITY DEVELOPMENT
COMMISSION (HCDC)
November 17, 2022
Regular Meeting – 6:30 PM
Iowa City Senior Center Assembly Room
28 S Linn Street
AGENDA:
1.Call to Order
2.Consideration of Meeting Minutes: October 20, 2022
3.Public Comment of Items not on the Agenda
Commentators shall address the Commission for no more than 5 minutes. Commissioners
shall not engage in discussion with the public concerning said items.
4. FY24 Legacy Aid to Agencies (A2A) Funding Discussion
During this meeting, HCDC will discuss applications, rankings, and funding for the FY24
Legacy A2A cycle. Staff recommendations have also been provided to aid discussion.
HCDC will consider a budget recommendation to Council at their January 19, 2023
meeting. Council will provide final funding allocations in May of 2023.
5.Consider Approval of FY24 CDBG/HOME and FY24 Emerging Aid to Agencies (EA2A)
Application Materials
HCDC will consider approval of the FY24 CDBG/HOME application and application guide
as well as the FY24 Emerging A2A application. HCDC will need to formalize the application
materials at this meeting for staff to prepare for the upcoming allocation period.
6.Staff & Commission Updates
This item includes an opportunity for brief updates from staff and Commissioners.
Commissioners shall not engage in discussion on updates.
7.Adjournment
Housing and Community Development Commission
November 17, 2022 Meeting Packet Contents
Agenda Item #2
•October 20, 2022 Draft HCDC Meeting Minutes
Agenda Item #4
•November 1, 2022 Staff Memo - FY24 Aid to Agencies Staff Scores and Funding
Recommendations
•FY24 HCDC A2A Preliminary Rankings by Score
•FY24 HCDC Scoring Summary
•FY24 HCDC Funding Summary
Agenda Item #5
•FY24 CDBG/HOME Application
•FY24 CDBG/HOME Application Guide
•FY24 Emerging Aid to Agencies Application
Agenda Item #6
•Public Records and Open Meeting Training Opportunity
MINUTES PRELIMINARY
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
OCTOBER 20, 2022 – 6:30 PM
FORMAL MEETING
THE CENTER ASSEMBLY ROOM
MEMBERS PRESENT: Kaleb Beining, Maryann Dennis, Michael Eckhardt, Karol Krotz, Nasr
Mohammed, Becci Reedus, Kyle Vogel
MEMBERS ABSENT: Elizabeth Marilla-Kapp (resigned 10/20/22), Jennifer Haylett
STAFF PRESENT: Erika Kubly, Brianna Thul
OTHERS PRESENT: Genevieve Anglin (UAY), Lucy Barker (Houses into Homes), Jon Brown
(FLP), Crissy Canganelli (Shelter House), Delaney Dixon (DVIP), Charlie
Eastham (CWJ), Michelle Heinz (Inside Out Reentry), Kai Kiser (FLP),
Chelsey Markle (Arc of SE Iowa), Salina McCarty (Houses into Homes),
Talia Meidlinger (UAY), Angie Meiers (CommUnity), Christi Regan
(HACAP), Adam Robinson (RVAP), Mazahir Salih (CWJ), Jennie
Schmidt (IC FMC), Natasja Schroeder (Houses into Homes), Daleta
Thurness (BBBSJC), Barbara Vinograde (IC FMC)
PRESENT ON ZOOM: Theresa Burns (Habitat), Shelly Zabel (Community and Family
Resources)
RECOMMENDATIONS TO CITY COUNCIL:
None.
CALL MEETING TO ORDER:
Beining called the meeting to order at 6:30 PM.
WELCOME NEW MEMBERS:
Eckhardt introduced himself, he has lived in the Iowa City area for a while now and has been in the
Johnson County area for 11 years. He is interested in the subject of affordable housing because when
they moved back to Iowa for family during the recession, they didn't have a lot of money and came back
to stay with family and affordable housing was a very serious issue for him early in his life. Today he is a
mechanical engineer and a design professional for construction where he designs mechanical systems
for buildings and is actually working on at least one of the projects for Shelter House right now.
CONSIDERATION OF MEETING MINUTES: SEPTEMBER 15, 2022:
Reedus moved to approve the minutes of September 15, 2022, Vogel seconded the motion. A vote was
taken, and the minutes were approved 6-0.
PUBLIC COMMENT FOR TOPICS NOT ON THE AGENDA:
None.
Agenda Item #2
Housing and Community Development Commission
October 20, 2022
Page 2 of 6
2
LEGACY AID TO AGENCIES (A2A) QUESTION & ANSWER (Q&A) DISCUSSION:
Krotz appreciates the agencies who had questions and provided answers. The Commissioners had a few
questions that were very relevant, but she did notice that some of the responses didn't seem real direct.
She asked that when a question is asked, just provide the answer in one sentence, and use the rest of
the allotted space to explain in more detail because sometimes it was difficult to draw the answer out.
Reedus noted two or three meetings ago they went through the budget and the joint funding application
process and made some recommendations. Was there ever a response from United Way or were any of
recommendations incorporated. Thul noted they did add in the question about staff turnover, but they
couldn't make all changes. Reedus noted one of the things she has come to realize is the there's a
variety of ways in which the agencies answered financial questions, some with profit and loss statements
which are not her favorite thing to get, she would prefer to see end of year financial statements that has
been approved by the Board so that she knows that the Board is watching over the financial aspect of the
organization. She noted form C actually asked for budgeted information and so there are some agencies
that are giving budgeted figures as opposed to actual revenue and expenditures, which just makes it even
worse, because then they don't have the same kind of information from each organization.
Reedus also agrees with Krotz that a couple, not all, of the answers to the questions were excellent and
she appreciates the organizations that went to great lengths to answer those questions, it was information
that they needed to make some better decisions. However, there are a couple that she was even more
confused after reading some of the answers. She had to go looking at websites, read GuideStar, pull the
latest 990 to get the information she was seeking.
Reedus also has a question regarding the lowest funding level for legacy agencies is 15k and they are
bound by that, but they don't necessarily have to recommend any funding to an organization. Kubly
confirmed that was correct.
Reedus wanted to thank staff again for doing the application summaries, it’s very useful, even if it actually
might draw more questions. One concern is some of the unit costs that they're seeing, and she has
concerns for agencies that are providing similar services they might not be paying similar unit costs per
agency, so she’d like to see them get to a point where they’re paying more per unit cost so it's more fair to
an organization and doesn't penalize one for being a large organization versus a smaller organization. If
they’re paying that unit cost, whether that's for food, whether it's for childcare, whether it's per unit of
situation in a youth type of group, she thinks that it would be useful to try as maybe some of those unit
costs were not correct, not because staff did them wrong, but because of the numbers that the agencies
provided were agency numbers versus program numbers.
Krotz asked if there a standardized format for the answers to follow with in terms of continuity, whether
they're providing answers for the agency at large or the program or the project that their application is for
specifically. Kubly replied not specifically, she feels they should be describing how they're going to use
the funds and basing their application on that which varies across agencies, some agencies might be only
using funds for a specific program and some agencies might be using it for more broader operational
expenses.
Mohammed had a comment about Habitat for Humanity and the last item on the response where they
indicate that the cost increased by 26% and all that increase is applied on the on the low-income families
who receive the benefit from the Habitat for Humanity. Before the pandemic, they had the ratio 50/50,
they would draw a loan from a bank and then they give the individual about 50% of the money without
any interest, but now the ratio has been increased significantly, probably 75% loan drawn from the bank
and that 25% from Habitat. Also, there is some closing fees, and it seems like this program has become
hard to afford and the question is how they can help Habitat for Humanity to help the people in the
community, specifically the low-income families, some of them are very low income and the wages are
not growing in the community to match that increase on the costs for this program.
Housing and Community Development Commission
October 20, 2022
Page 3 of 6
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Krotz was wondering if they want to go through each agency and ask specifically if anyone has any
questions because she would hate to see this part of it draw to a close so soon it seems like they haven't
really batted the ball around.
Dennis noted they have all gone through all the applications and have asked their questions and got
answers so maybe not a lot of value in going through each agency during meeting time. If there are
specific questions on answers received, now is the time.
Vogel asked if it possible for the Commission to also find out what organization’s funding has been from
the United Way. Are they only asking Iowa City for money or are they are they hitting United Way and
Coralville equally? Kubly replied they can get those numbers, their requests for each agency should be in
the application. Vogel asked if they could get the funding requests for the past couple of years, staff
replied they could do that. Dennis noted that those figures are what they requested and not necessarily
what they received.
Reedus reiterated the one rule is they have to fund a minimum of $15,000 but they don't necessarily have
to increase an agency and they can decrease an agency allocation if they've gotten information that
shows that for whatever reason, unit cost is more or perhaps Iowa City is too heavily funding something
or because of decisions made a couple of years ago, there is nothing that says they have to give an
increase to an organization.
Reedus noted she is not available during the day right now until 5:30pm so she didn't even get this letter
on Center for Worker Justice in time to read it before this meeting so could staff summarize what is in the
letter. Reedus doesn’t think it is fair not to go through this at the meeting.
Kubly stated earlier this week an article came out in the newspaper about the Center for Worker Justice,
essentially, they had to pay an IRS penalty for delay in filing taxes and the article said that they had lost
their nonprofit status for a period of time as a result of that. Staff reached out to them with a few questions
about compliance related to Aid to Agencies and the other funding that the City provides. One was how
they would comply with the City's audit policy as the City has different levels of audit requirements for
agencies that receive City funding. If an agency had a total budget of $500,000 or more, they’d have to
submit an audit prior to receiving the legacy Aid to Agency funds, which is why staff asked how they are
going to prepare to comply with this if they were to receive funding. The Center for Worker Justice has
hired an external accountant and will would work with them to meet the audit requirements. Staff is also
meeting with them for technical assistance because the agency is receiving federal funds through the
ARPA program. The second question was what changes the Center for Worker Justice has implemented
with their accounting and financial management procedures to ensure ongoing compliance. They
responded that they're using a professional accountant agency to complete their 990 and resolve those
issues and they're shifting from volunteers doing accounting to professional reporting services. The third
question was about the timeline of losing their 501C3 status and when it was reinstated, and to ask them
to provide documentation that it was in place, since that impacts their eligibility for funding. Essentially,
they said they didn't actually lose their status, it was just at the time they revoked it and then they
reaffirmed the status, so it was just like timing of the submission, it was retroactively reestablished.
Reedus states it would have been better for HCDC to find this out directly rather than in the newspaper.
Dennis is a little concerned that Center for Worker Justice is now a legacy agency and they're proposing
that they want to meet with the City for technical assistance to make sure they're in compliance with the
regulations. She would have hope that they would have been in compliance all along. Kubly stated when
she submitted these questions to the Center for Worker Justice, she was also asking not only about the
Legacy application, but also the federal funds that they're receiving through ARPA. Staff had
recommended that they do technical assistance to make sure they're meeting the uniform administrative
requirements for federal funding, that was more related to the federal portion.
Housing and Community Development Commission
October 20, 2022
Page 4 of 6
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Reedus noted one of her questions for Center for Worker Justice was they said that they distributed about
a half a million dollars, but that wasn't reflected in their financials. Should that been run through the
books? That would that have put them over the mark for an audit.
Vogel noted there is a disconnect between the description of My Home to Yours distributing $500,000 to
individuals and families but because the article talks about $65,000 but that was 2020, so maybe it's 2020
versus 2021? Reedus thinks the program is spanned over multiple years, two to three years, but that
wasn’t in their budgeted figures. Krotz asked if they provided a budget, Dennis noted it is in the joint
application
Reedus assumes next month is where there's going to be more comments because there's going to be a
lot of discussion about why people are scoring the way they're scoring and why they made their
recommendations. Reedus asked what will happen when staff receives the information. Thul states that
they will compile individual scores and recommendations into a summary. Depending on what the data
shows, they can include averages and rankings. Staff will put together a selection of things for
Commissioners to consider.
Dennis thought it was interesting that the Neighborhood Centers talked about the change in computer
programming, Windows 10 to Windows 11 and nobody else did. That could be a big deal for a lot of
organizations. Vogel stated it may not be a problem for some if they haven't upgraded their equipment,
the Windows 11 upgrade is just for newer PCs, less than five or six years old, if someone has a 10- or 12-
year-old PC then they will have to replace the PC in order to do the upgrade. Reedus commented that
she would hope the organizations would have some sort of budget for those expenses and that it wouldn’t
be a surprise for an organization.
LEGACY AID TO AGENCIES NEXT STEPS – INDIVIDUAL SCORING AND FUNDING RECOMMENDATIONS:
Thul noted in the last page of the agenda packet is a calendar to give the benchmarks of what's upcoming
for the Commission. In the packet she mailed out, a copy of the calendar is in there as well along with a
copy of the score sheet. Thul will follow up after the meeting and send an electronic version as well. The
next step is to start looking through the applications and scoring and making funding recommendations
based on those scores. Staff will share scores and funding recommendations November 1, so the
Commission has time to think about that in reference to their own scores. November 8 is when staff would
like scores to be submitted to give them time to put all the scores together and get the information for
everyone to look at for the next meeting. If staff don’t have scores by this date it will be difficult to compile
and produce useful information for the November HCDC meeting.
Krotz asked in terms of scoring, will there be something in the packet that will guide them through how
they are to score. Staff will provide the score sheet and the document that includes narrative descriptions
that guide the scoring. Reedus explained that the questions are broken out into levels with points
assigned to each level. Staff will supply the score sheet and Commissioners can handwrite answers,
submit electronically, or drop it off to staff. Thul also shared that staff summary sheets were created to
match the score sheets and that those should help take Commissioners through the scoring.
STAFF & COMMISSION UPDATES:
Staff showed a video about The Housing Fellowship as this video was something discussed back in April
with the Commission when it was Community Development Week. This video was made to highlight the
CDBG/HOME funded work in Iowa City.
Thul noted she got a message from Elizabeth Marilla-Kapp that she's resigned from the Commission.
ADJOURNMENT:
Housing and Community Development Commission
October 20, 2022
Page 5 of 6
5
Krotz moved to adjourn, Reedus seconded the motion, a vote was taken, and the motion passed 7-0.
Housing and Community Development Commission
October 20, 2022
Page 6 of 6
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Housing and Community
Development Commission
Attendance Record 2022-2023
*Resigned from Commission
Key:
X = Present
O = Absent
O/E = Absent/Excused
--- = Vacant
Name Terms Exp. 7/21 9/15 10/20
Beining, Kaleb 6/30/24 X O/E X
Dennis, Maryann 6/30/25 X O/E X
Haylett, Jennifer 6/30/25 X X O/E
Krotz, Karol 6/30/24 O/E X X
Marilla-Kapp, Elizabeth 6/30/23 X O/E * * * * * * *
Mohammed, Nasr 6/30/23 X X X
Reedus, Becci 6/30/24 X X X
Vogel, Kyle 6/30/23 O/E X X
Eckhardt, Michael 6/30/25 -- -- X
Date: November 1, 2022
To: Housing and Community Development Commission
From: Brianna Thul, Community Development Planner
Erika Kubly, Neighborhood Services Coordinator
Re: FY24 Aid to Agencies Staff Scores and Funding Recommendations
The purpose of this memo is to provide staff composite scores and funding recommendations
for the FY24 Legacy Aid to Agencies (A2A) funding round. Commissioners may consider this
information during their independent evaluation of the submissions. The table attached contains
staff scores, funding recommendations, and a five-year funding history for the Legacy A2A
program.
Staff Comments on Funding Recommendations:
In general, staff funding recommendations were developed by awarding the largest funding
increases to the highest scoring submissions. The following are instances where members of
HCDC may benefit from additional explanations to inform the decision-making process.
CommUnity and United Action for Youth
Commissioners will observe that the recommendations show a funding decrease for
CommUnity and United Action for Youth compared to the FY23 Legacy A2A allocations. This is
due to a decrease in the FY24 requests submitted by the agencies rather than a staff-imposed
reduction in the funding recommendations. Staff recommend full funding to the agencies at their
FY24 request.
Inside Out Reentry
In FY20, the A2A budget was increased and as a result, Inside Out Reentry began receiving
funding that was a comparatively large portion of the agency’s total operating budget. A majority
of Legacy Agencies are funded at a level between one and five percent of their agency budget,
and the FY24 request from Inside Out Reentry was over 20% of their total budget. Staff
recommend a slight decrease in funding from FY23 levels due to the size of the agency budget
and the percentage of the request. The decrease in funding recommended is less than $3,000
and should avoid any significant disruptions to agency operations.
Community and Family Resources (formerly Prelude)
Staff support the mission of the agency, but do not recommend funding Community and Family
Resources based on the quality of the application and use of funds. The proposal was one of
the lowest scoring applications and some of the narrative responses did not adequately address
the questions. Additionally, the agency proposed using funds for security deposit and rent
assistance, as well as facility repairs. While the Legacy A2A program is designed to provide
flexible funding for operations, City resources for the program are limited and there are other
opportunities for funding for housing through federal CDBG or HOME programs, as well as the
city’s Affordable Housing Fund. Lastly, the application was submitted after the deadline of 5pm
due to technical difficulties.
Agenda Item #4
November 1, 2022
Page 2
Center for Worker Justice
Staff support the mission of the agency, but do not recommend funding for Center for Worker
Justice based on the quality of the application, use of funds, and other funds in place for
proposed services. The proposal was one of the lowest scoring applications and issues arose
regarding the agency’s financial capacity and oversight. Additionally, some services proposed to
be provided with Iowa City funds are ineligible, such as work with communities outside of Iowa
City. Center for Worker Justice has been allocated funds for wage theft through the American
Rescue Plan Act (ARPA) and additional need has not been demonstrated. Lastly, the
application was submitted after the deadline of 5pm due to technical difficulties.
New Legacy Agencies
Of the three new Legacy Agencies, staff recommend funding Houses into Homes and Dream
City (Dream Center) at the minimum award amount of $15,000.
Free Medical Clinic and Neighborhood Centers of Johnson County
The largest increases in funding compared to the previous fiscal were allocated to Free Medical
Clinic and Neighborhood Center of Johnson County. While not fully funded, the proposals were
both tied for the third highest scoring submissions.
Conclusion
Iowa City is fortunate to have many qualified nonprofit organizations serving the community.
Although these decisions are challenging, staff feel that the information provided is fair,
objective, and reasonable. Commissioners are reminded that the deadline to submit
independent scores and recommendations to staff is November 8, 2022. Staff will compile
scores and post them in the meeting packet on November 10, 2022 ahead of the November 17,
2022 HCDC meeting.
Attachments
FY24 Staff Legacy Aid to Agencies (A2A) Recommendation
Agency FY19 Allocation FY20 Allocation FY21 Allocation FY22 Allocation FY23 Allocation FY24 Request
Staff
Recommendation
Change from FY23
to FY24
Percentage of
FY24 Request
Funding Request
as a percent of
FY23
Staff
Score
CommUnity $40,000 $66,000 $69,086 $72,402 $74,037 $69,086 $69,086 93%100%93%95
Shelter House $50,000 $85,000 $84,738 $88,808 $90,810 $99,790 $99,790 110%100%110%94
Free Medical Clinic $15,000 $17,500 $24,923 $26,119 $26,709 $40,000 $34,954 131%87%150%92
Neighborhood Centers of Johnson County $34,300 $55,000 $54,830 $57,000 $58,759 $110,000 $70,000 119%64%187%92
Inside Out Reentry $15,000 $30,000 $39,877 $41,839 $42,734 $45,000 $40,000 94%89%105%90
DVIP $40,000 $50,000 $49,846 $52,000 $53,418 $60,000 $60,000 112%100%112%89
Aging Services (formerly Pathways)$15,000 $25,000 $24,923 $26,119 $26,709 $27,000 $27,000 101%100%101%88
United Action for Youth $27,400 $33,000 $32,898 $34,525 $35,256 $34,500 $34,500 98%100%98%87
Big Brothers Big Sisters $15,000 $25,000 $24,923 $26,119 $26,709 $27,125 $27,125 102%100%102%86
Table to Table $15,000 $20,000 $30,904 $32,387 $33,119 $45,000 $34,775 105%77%136%86
4Cs $15,000 $20,000 $24,923 $26,119 $26,709 $30,000 $28,044 105%93%112%84
RVAP $20,000 $23,000 $24,923 $26,119 $26,709 $30,000 $28,044 105%93%112%81
Arc of Southeast Iowa $0 $20,000 $19,938 $20,895 $21,367 $30,000 $22,435 105%75%140%80
HACAP $15,000 $25,000 $24,923 $26,119 $26,709 $27,510 $27,510 103%100%103%80
Iowa Valley Habitat for Humanity $0 $25,000 $24,923 $26,119 $26,709 $30,000 $28,044 105%93%112%80
Free Lunch Program $15,000 $16,000 $17,944 $18,805 $19,230 $25,000 $20,192 105%81%130%78
Houses into Homes NA NA NA NA NA $15,000 $15,000 NA 100%NA 77
Horizons $20,000 $40,000 $43,863 $45,968 $47,007 $47,007 $40,000 85%85%100%76
Dream City NA NA NA NA NA $30,000 $15,000 NA 50%NA 70
Center for Worker Justice NA NA NA NA NA $45,000 $0 NA 0%NA 64
Community and Family Resources (formerly Prelude)$16,000 $20,000 $39,877 $41,788 $42,734 $41,788 $0 0%0%98%64
HTFJC $24,000 $0 $0 $0 $0 $0 $0 $0 $0 NA NA
Total $367,700 $595,500 $658,262 $689,250 $705,434 $908,806 $721,500
Estimated FY24 A2A Budget $751,500.00 Fully funded
Emerging A2A Budget $30,000.00 New Legacy Agency
Legacy A2A Budget $721,500.00 Decreased funding
FY24 Staff Legacy Aid to Agencies (A2A) Recommendation
FY24 HCDC Legacy Aid to Agencies (A2A) Preliminary Ranking by Score
Agency
HCDC Average
Score FY24 Request
HCDC Average
Funding
Recommendation % of Funding
Shelter House 96 $99,790 $99,790 100%
Neighborhood Centers of Johnson County 95 $110,000 $70,000 64%
CommUnity 95 $69,086 $69,086 100%
Free Medical Clinic 94 $40,000 $36,651 92%
DVIP 91 $60,000 $60,000 100%
United Action for Youth 89 $34,500 $34,500 100%
Table to Table 89 $45,000 $38,258 85%
Big Brothers Big Sisters 88 $27,125 $27,142 100%
Iowa Valley Habitat for Humanity 87 $30,000 $27,029 90%
4Cs 86 $30,000 $24,918 83%
Aging Services (formerly Pathways)83 $27,000 $23,000 85%
Houses into Homes 82 $15,000 $10,000 67%
RVAP 82 $30,000 $26,584 89%
Horizons 82 $47,007 $38,667 82%
Inside Out Reentry 81 $45,000 $31,667 70%
Arc of Southeast Iowa 80 $30,000 $21,620 72%
HACAP 80 $27,510 $27,270 99%
Dream City 76 $30,000 $15,000 50%
Free Lunch Program 72 $25,000 $17,731 71%
Community and Family Resources (formerly Prelude)52 $41,788 $0 0%
Center for Worker Justice 52 $45,000 $5,000 11%
HTFJC NA $0.00 NA NA
Total $908,806 $703,913
Estimated FY24 A2A Budget $751,500.00
Emerging A2A Budget $30,000.00
Legacy A2A Budget $721,500.00
Agenda Item #4
FY24 Legacy Aid to Agencies Scoring Summary
4Cs Arc of SE Iowa
Big Brother Big
Sisters
Center for
Worker Justice CommUnity DVIP Dream City
Free Lunch
Program HACAP Horizons
Houses into
Homes
Inside Out
Reentry
IC Free Medical
Clinic
Habitat for
Humanity NCJC Pathways
Community and
Family
Resources
(formerly
Prelude)RVAP Shelter House Table to Table
United Action for
Youth
Beining 82 83 90 62 97 90 67 76 83 74 79 91 95 82 94 86 61 76 96 88 91
Dennis 79 71 86 54 98 93 73 74 84 80 76 74 93 84 92 89 56 86 97 88 90
Haylett 89 83 93 67 97 90 80 83 92 84 82 86 95 90 95 83 64 89 99 82 85
Krotz ---------------------
Eckhardt ---------------------
Mohammed 92 84 85 76 83 89 75 78 88 86 86 78 87 92 95 86 81 85 89 87 90
Reedus 89 79 84 0 98 95 86 51 93 85 89 76 98 89 98 71 0 74 97 100 91
Vogel ---------------------
Range 13 13 9 76 15 6 19 32 10 12 13 17 11 10 6 18 81 15 10 18 6
Median 89 83 86 62 97 90 75 76 88 84 82 78 95 89 95 86 61 85 97 88 90
Average 86 80 88 52 95 91 76 72 88 82 82 81 94 87 95 83 52 82 96 89 89
Agenda Item #4
FY24 Legacy Aid to Agencies Preliminary Funding Recommendation Summary
4Cs Arc of SE Iowa
Big Brother Big
Sisters
Center for Worker
Justice CommUnity DVIP Dream City
Free Lunch
Program HACAP Horizons
Houses into
Homes
Inside Out
Reentry
IC Free Medical
Clinic
Habitat for
Humanity NCJC Pathways
Community and
Family Resources
(formerly Prelude) RVAP Shelter House Table to Table
United Action for
Youth
Beining ---------------------
Dennis $20,000.00 $20,000.00 $27,150.00 $0.00 $69,086.00 $60,000.00 $20,000.00 $15,000.00 $27,150.00 $40,000.00 $0.00 $40,000.00 $40,000.00 $25,000.00 $70,000.00 $27,000.00 $0.00 $25,000.00 $99,790.00 $40,000.00 $34,500.00
Haylett ---------------------
Krotz ---------------------
Eckhardt $28,044.00 $22,425.00 $27,150.00 $15,000.00 $69,086.00 $60,000.00 $0.00 $20,192.00 $27,510.00 $40,000.00 $15,000.00 $15,000.00 $34,954.00 $28,044.00 $70,000.00 $27,000.00 $0.00 $28,044.00 $99,790.00 $34,775.00 $34,500.00
Mohammed ---------------------
Reedus $26,709.00 $22,435.00 $27,125.00 $0.00 $69,086.00 $60,000.00 $25,000.00 $18,000.00 $27,150.00 $36,000.00 $15,000.00 $40,000.00 $35,000.00 $28,044.00 $70,000.00 $15,000.00 $0.00 $26,709.00 $99,790.00 $40,000.00 $34,500.00
Vogel ---------------------
Range $8,044.00 $2,435.00 $25.00 $15,000.00 $0.00 $0.00 $25,000.00 $5,192.00 $360.00 $4,000.00 $15,000.00 $25,000.00 $5,046.00 $3,044.00 $0.00 $12,000.00 $0.00 $3,044.00 $0.00 $5,225.00 $0.00
Median $26,709.00 $22,425.00 $27,150.00 $0.00 $69,086.00 $60,000.00 $20,000.00 $18,000.00 $27,150.00 $40,000.00 $15,000.00 $40,000.00 $35,000.00 $28,044.00 $70,000.00 $27,000.00 $0.00 $26,709.00 $99,790.00 $40,000.00 $34,500.00
Average $24,917.67 $21,620.00 $27,141.67 $5,000.00 $69,086.00 $60,000.00 $15,000.00 $17,730.67 $27,270.00 $38,666.67 $10,000.00 $31,666.67 $36,651.33 $27,029.33 $70,000.00 $23,000.00 $0.00 $26,584.33 $99,790.00 $38,258.33 $34,500.00
Agenda Item #4
FY2024 CDBG/HOME Application
City of Iowa City
Review the Application Guide that follows this application form below.
Only one project proposal may be submitted on each application. Please use separate
applications for each project proposal. HUD defines a project as a site or sites together
with any building (including a manufactured housing unit) or buildings located on the site(s)
that are under common ownership, management, and financing and are to be assisted
with federal funds as a single undertaking. The project includes all the activities associated
with the site and building. For direct assistance activities (example: downpayment
assistance), project is defined as assistance to one or more families.
Submit completed applications online at www.icgov.org/actionplan or a PDF version to
bthul@iowa-city.org. Emailed applications must receive a confirmation email from City staff
before the application deadline to be considered for funding. Online submittals are
preferred, but you may send your application by certified or registered mail; overnight
delivery service (FedEx, UPS, etc.); or deliver in person if arrangements are made with a
Neighborhood Services representative to ensure receipt. Please call 319-356-5240 to
make drop off arrangements prior to arrival.
Should you have any questions while completing the application contact Neighborhood
Services staff at 319-356-5240 or by email at brianna-thul@iowa-city.org.
Applications are due on Monday, January 30,
2023 by 12pm.
No exceptions will be made for late
applications.
Agenda Item #5
1
Section 1 – General Information and Project Need
1.Lead Organization/Agency
Unique Entity ID
Number (replaced
DUNS Numbers) Organization Type
(Mark all that apply)
Name:
Address: 501(c)3:
Website: Public:
Application Contact App. Workshop
Attendance Date:
For Profit:
Name: Faith-Based:
Title: CHDO:
Phone: Did not attend: Other:
Email:
Is the individual or entity eligible to receive
federal funding (i.e., not listed as an excluded
party in the SAM database. An excluded party
is any individual or entity that has been
suspended or debarred from doing business
with federal funds)?
Is there a secondary applicant: Yes/No
Is applicant (including partners, co-applicants, etc.) currently in compliance with all federal,
state, and local laws, rules and regulations, including CDBG and/or HOME funded projects?
Yes If “NO” or currently in
litigation, provide the
name of and explain the
basis for the case. No
2. Project
Project Type
(Mark all that apply) Activity Type
(Mark all that apply)
Name: Rental Housing Acquisition
Address: Owner Housing Rehabilitation
City Public Facility New Construction
State Zip CHDO Operations Direct Assistance
Additional Addresses Yes No Other Other
3.Project Description
(include purpose,
benefits, and specific
activities of project)
4.Mark goal from City Steps 2025 primarily addressed by this
application
Briefly explain how the
project will meet this goal.
Increase affordable rental housing units
Provide Tenant-Based Rental Assistance
Support homebuyer activities
Rehabilitate/improve owner-occupied housing units
Rehabilitate/improve renter-occupied housing units
Serve homeless / reduce homelessness
2
Provide public services
Improve public facilities
Improve public infrastructure & address climate action needs
Support economic and workforce development
Section 2 – Budget and Resources
Program regulations encourage leveraging non-federal funds. Non-public funds are especially encouraged.
HOME funds require a minimum 25% match. Funding terms including type of assistance and affordability
period are determined upon award; evidence of funding commitments is required for project underwriting.
Source of Funds must match Use of Funds.
Please attach a scope of work or estimate for any project that involves rehabilitation or new
construction to demonstrate the cost reasonableness of any proposal.
5.Source of Funds
Category Amount Description(s) of Funds Status*
Requested CDBG/HOME funds $
Previous Award $
Other local funds $
State funds $
Other federal funds $
Applicant Funds (Equity) $
Applicant Loan $
Other Private Funds $
Other: $
Total $
Non-CDBG/HOME Match %
In-Kind Contributions
Materials $
Labor $
Other: $
Describe community
partnerships or volunteers
that will contribute to project
*Statuses include pending (P), committed (C), received (R), or applied for (A)
3
6.Use of Funds Description of Work Hard Costs Land Acquisition $
Building Acquisition $
Site Improvements $
Rehabilitation $
Construction $
Other $ Soft Costs Professional Fees $
Construction Finance $
Permanent Finance $
Developer Fees $
Reserves $
Other $
Total $
As noted above, please attach estimate or documentation of how these costs were determined.
4
Section 3 – Feasibility and Community Impact
7.Anticipated Income Levels of
Beneficiaries (Unduplicated)
Special Populations (If applicable, mark one “presumed
benefit” category if required for assistance)
Households Persons
0-30% AMI Domestic Violence Victims
31-50% AMI Elderly
51-60% AMI Homeless
61-80% AMI Persons with Disabilities
Over 80% AMI Migrant Farm Workers
Total Persons with AIDs
Basis for
Estimates
Other as defined in 24 CFR 570.208(2)
AMI = Area Median Income, see www.icgov.org/actionplan.
8.Housing Projects (Required for Housing Projects Only)
Rental Housing Owner Housing
Number of Units Proposed Contract
Rent
Number of Units Proposed Sales Price
$ $
$ $
$ $
9. (Required for Housing Projects
Only) One of the City’s goals is to
encourage the distribution of housing
and residential facilities throughout all
neighborhoods in Iowa City. Explain
how your project meets this goal and
support your explanation with data.
Note: Heat map of City’s existing
subsidized housing under a
compliance/affordability period attached
for reference.
10.Vacancy and Property Management (Required for Rental Housing Projects Only)
Number of people on the housing waiting list for your organization
Total number of units owned by the organization
Total number of units currently vacant
Total vacancy rate (vacant units divided by total units)
Number of federally funded units vacant (units from previous CDBG/HOME projects
currently in a period of affordability)
Does your organization use a property manager? If yes, please indicate the entity and
provide a point of contact.
5
11.Proposed Project Timetable (include milestones such as rezoning, construction schedule,
application(s) for other funding, and expected commitment dates.
Date Milestones
July 1, 2023 Beginning of City Fiscal Year and Project Start Date
12.Describe your agency’s
approach to serving LMI
households and how this
promotes efficient use of
funding in the long term.
13.Describe how the
project will provide for
affordable housing or
public assistance at rates
or prices lower than those
in the existing market:
14.Will the project proceed
if less than full funding is
awarded? If yes, describe. If
there are several
components, describe how
they will be prioritized:
6
Section 4 - Capacity and Applicant History
15.CDBG and/or HOME funds received and status of the project(s) undertaken
Timeframe Budget Expended through
2023
Date Project
Completed
July 1, 2017 – June 30, 2018 $ $
July 1, 2018 – June 30, 2019 $ $
July 1, 2019 – June 30, 2020 $ $
July 1, 2020 – June 30, 2021 $ $
July 1, 2021 – June 30, 2022 $ $
July 1, 2022 – June 30, 2023 $ $
Identify any prior year funds
that remain unspent and
indicate the number of projects
pending completion. If funds
remain unspent from prior
years, justify this funding
request.
Do you anticipate receiving
and/or expending over
$750,000 in federal funds in a
single fiscal year?
*This includes CDBG, HOME,
and other federal funds such
as ESG.
16.Describe your
organization’s experience and
capacity to administer the
proposed project. Include the
roles of key staff who will
implement the project and their
qualifications (excludes
volunteers, board members
and consultants).
17.Does your agency have
written policies in place that
comply with federal regulations
in 2 CFR 200 for topics such as
procurement, financial
management, and segregation
of duties?
Yes
No
Unsure
18. What is the demand for the
proposed project and how does
your organization verify that
data?
If another organization
provides the same service,
explain why both projects are
needed to address the need.
7
19.Describe the strategies your
agency uses to serve those in
need and an overview of the
organization’s recent activities,
including projects underway.
20.Describe any identity of
interest (IOI) relationships with
the applicant and/or project
owner, i.e. General Partner has
a financial interest in the
construction company, etc.
21.Describe how you will
incorporate sustainability
initiatives into your project to
help carry out the City’s
Climate Action Plan.
22.Provide a description of
your primary target
population(s). Explain how
your agency promotes racial
equity and inclusivity for
marginalized populations
(including people of color,
LGBTQ, immigrants/refugees,
individuals with disabilities).
8
Section 5 - Required Documentation
It is recommended that applicants submit as much information as possible with the application to facilitate a full
project evaluation. The table below reflects the minimum requirements for each application. If an award is
granted, additional documentation may be requested prior to entering an agreement with the City.
Description Required
W-9 Form (Request for Taxpayer ID # & Certification)Yes
Board of Directors and Organizational Chart. Please include a complete list
of board members and their contact information. Additionally, please submit
an organizational chart.
Yes
Unique Entity ID (UEI). Provide documentation of your UEI. Please note that
UEI replaced DUNS numbers in 2022. This transition allowed the
government to streamline the entity identification and validation process,
making it easier and less burdensome for entities to do business with the
federal government.
Find your UEI: https://sam.gov/content/entity-information
Yes
Organizational Status. Go to https://sos.iowa.gov/search/business to look
up the organization applying for funds. Provide a copy of the Business
Entity Summary screen.
Yes
Financial Commitment Letters. Please attach the following for committed
funding sources listed in Section 2. HOME requires evidence of firm
commitments before project agreements may be signed.
1)Letters of intent from lending institutions for private financing. These must
be on the lending institution’s letterhead.
2)Commitment letters from all other sources (i.e. grants, loans, etc.). Each
letter must include the value of the commitment; the interest rate & term; the
purpose the funds can be used for; and any time limitations related to the
commitment.
3)Evidence of capital for private equity such as current bank statements
showing the funds
Yes
Evidence of Fiscal Capacity. Please submit your most recent audit (if
applicable).
If you have already submitted your most recent audit to staff for other
purposes (e.g., monitoring for other projects under compliance), there is no
need to resubmit.
Applicants that do not receive an annual audit may submit sufficient
alternative information, such as financial statements.
Yes
9
Evidence of Organizational Capacity. Up to four pages of additional
information about the capacity of the organization may be included.
Examples of possible evidence may be resumes of key staff, additional
descriptions of organizational activities, or other relevant information.
Yes
CHDO Certification Letter. If applying as a CHDO, please include evidence
of CHDO status.
Please note that a CHDO’s status must be recertified before committing
funds per HOME rules. CHDO applications are due February 14 annually to
allow time for the City to review the submission ahead of the fiscal year and
potential commitment of funds. Additional CHDO recertifications may be
required during the year if any supplementary funds are to be committed.
Yes, if applying for CHDO
specific funds
Scope of Work. Include a write up of the work to be completed and include
copies of the cost estimates that are the basis of the uses table.
Yes, if activity includes
construction or rehab work.
Pro forma. Acquisition, rehabilitation, or new construction of rental housing
project MUST include completed pro forma. Excel format is provided by the
City. Applications for rental housing projects without the City’s pro forma will
not be considered. See applicant guide for proforma instructions.
Yes, if the project includes
rental acquisition,
rehabilitation, or new
construction of rental
housing
Letters of Support. If applicable, attach letters of support for the proposed
project.
No.
FY24 Iowa City CDBG and HOME Applicant Guide 1
Applicant Guide
Iowa City CDBG and HOME Programs
This guide outlines requirements for applicants seeking Community Development Block Grant (CDBG)
and/or HOME Investment Partnership (HOME) program funds through the City of Iowa City. The CDBG
program helps develop viable urban communities by providing decent housing and suitable living
environments, and expanding economic opportunities, principally for persons of low and moderate
income. The HOME program helps provide safe and decent affordable housing. Both programs are
funded by the U.S. Department of Housing and Urban Development (HUD).
Notes to applicants
1)Housing and Community Development Commission (HCDC) strongly encourages all applicants
to attend the CDBG/HOME Applicant Workshop (see Application Timeline below).
2)First consideration for funding will go to housing (not including Community Housing Development
Organizations [CHDO] operating expenses or set aside) and public facility projects of $50,000 or
more. Top ranking applications will be considered first.
3)The application must be complete for HCDC consideration. HCDC will not review any materials
submitted by the applicant after the deadline unless requested by HCDC.
4)Please review the City’s Strategic Plan (www.icgov.org/strategicplan) and City Steps 2025
(https://www.icgov.org/actionplan) to determine if your project fits into the identified priorities. If so,
please identify in the application.
Application Timeline
The following is a tentative timeline of the application process. Dates are subject to change. Visit
https://www.icgov.org/actionplan for current information or contact staff at 319-356-5230.
1)Applications open December 28, 2022
2)Virtual Applicant Workshop January 10, 2022 at 11:00 AM
3)Virtual Applicant Workshop Upon Request
4)Applications Due January 30, 2023 at 12 PM
5)HCDC Meeting – Question/Answer with Applicants February 16, 2023 at 6:30 PM
6)HCDC Meeting – Recommendations March 23, 2023 at 6:30 PM
PART I. Estimated Federal Funding Available
Federal funding has not yet been awarded, so numbers will be subject to change. However, the City of
Iowa City expects to receive approximately $1,500,000 in FY24 federal funds (including entitlements and
program income) from HUD. The City will approximate the amount of funds available for allocation to
recipients after Council set-asides have been removed for economic development, housing rehabilitation,
CHDO reserve, CHDO operating, administration, neighborhood improvements, and Aid to Agencies
(public services).
Agenda Item #5
FY24 Iowa City CDBG and HOME Applicant Guide 2
PART II. Application Requirements and Considerations
Applicants should evaluate the following HUD guidelines as well as City policies contained in City Steps
2025 when considering the proposals, funding estimates, and time schedules for achieving their project
goals.
Program Purpose
All proposals must benefit low-moderate income individuals. The specific ways that a project must
accomplish the program’s purpose (also called a National Objective) varies by program.
CDBG Funds. At least 51% of those befitting from the program (persons or households) must
have incomes at or below 80% of the area median income (AMI) based on household size (see
table below). For programs that benefit individual households, all households must earn less than
80% of the median household income.
Applicants must document that its purpose is being met. CDBG allows households to self-certify
their income with their signature, though a percentage of beneficiaries must also provide source
documentation such as pay stubs or a Social Security statement to verify the household’s income.
The City must approve this percentage based on the program and number of beneficiaries –
usually set between two and five percent. This source documentation must be kept in the client’s
file and is subject to monitoring when City or HUD staff review the client files.
HOME Funds. All activities undertaken with HOME funds must benefit households below 80%
AMI, and nearly all assisted units must be targeted to households below 60% AMI.
Median household income limits for projects in Iowa City are as follows:
CDBG allows its purpose to be satisfied by meeting the following criteria:
a.The activity must be carried out in an area or neighborhood consisting predominantly of low-
moderate income persons, or the activity must involve facilities or services designed for use
by predominantly low-moderate income persons. Demographic information is available at the
Neighborhood & Development Services Department. In some instances, applicants may need
to conduct a survey of the potential beneficiaries to determine income eligibility.
b.Housing that is being improved, as part of a project must be occupied by low-moderate income
households.
c.Job creation or retention as an activity must involve employment of predominantly low and
moderate-income persons.
FY24 Iowa City CDBG and HOME Applicant Guide 3
Eligible Activities
Activities that can be carried out with CDBG funds include, but are not limited to, the following:
•Acquiring real property, demolishing structures and clearing property, and relocation
assistance for residents of property being demolished.
•Rehabilitation or preservation of residential and nonresidential structures, including
weatherization, painting, accessibility improvements, emergency repairs and comprehensive
rehabilitation.
•Construction of public facilities and improvements, such as water and sewer facilities,
infrastructure repairs and installation of curb ramps, construction of neighborhood centers and
installation of accessible playground equipment.
Activities that can be carried out with HOME funds include the following:
•Acquisition of real property (including Homeownership Assistance), payment of “soft” costs
associated with a project, demolition and clearing property, site and infrastructure improve-
ments, and relocation assistance for persons being displaced by a HOME activity.
•Rehabilitation or preservation of residential structures (comprehensive rehabilitation only).
•Tenant Based Rental Assistance (TBRA) for a period of up to 24 months.
•New construction of affordable housing units (rental or owner-occupied).
•Operational expenses and Capacity Building for Community Housing Development Organi-
zations (CHDOs) within the limit of 5% of Iowa City's HOME allocation.
The following types of activities that are ineligible include, but are not limited to, the following:
•Public service eligible activities such as operations or salaries.
•Buildings for general conduct of government and expenses required to conduct the regular
responsibilities of local government, e.g. street maintenance, public buildings for
government.
•Political, religious and lobbying activities, income payments, such as rent assistance and
mortgage payments. HOME only: tenant based rent assistance is an allowable activity.
•CDBG only: New housing construction, except for residential facilities providing shelter for
persons with special needs (homeless shelters, convalescent homes, halfway houses, and
group homes).
•Purchase of construction equipment.
NOTE: The purchase or lease of furnishings, equipment, or other personal property (such as vehicles)
needed for an eligible public service will not be considered under this allocation process. However, these
expenses would be eligible under the City’s Aid to Agency process. Additional requirements and CDBG
award limitations may apply, please contact Neighborhood Services staff to discuss.
FY24 Iowa City CDBG and HOME Applicant Guide 4
Performance Schedule and Payment
Reimbursements can be made after the contract has been formalized. Expenses incurred before July
1, 2023 or before a contract has been entered may not be reimbursable and may jeopardize all the
CDBG/HOME funds awarded to the project. Disbursements can be made upon receipt of 1) invoices
for labor, materials and services rendered, and 2) signed lien waivers (as appropriate) covering all
amounts to be paid. In some instances, pre-agreement costs may be reimbursed to applicants; however,
Neighborhood Services staff must be contacted prior to making any pre-agreement disbursements to
verify if the cost may be reimbursed. In case of minor cost overruns or requests for additional funding, the
City Manager and staff may approve a contract amendment that is non-substantial. In the case of
substantial changes (as defined in the Citizen Participation Plan) the Housing and Community
Development Commission and City Council must approve the change and an amended agreement is
required.
Budget Considerations
In estimating the amount of the proposal or the project budget, applicants should try to obtain
documentation for the costs and consider the following expenses:
•Appraisals, legal fees, title opinions and surveying costs for property acquisition projects.
•Building permits, engineering or surveying costs, zoning application fees, professional fees,
advertising and bidding costs for rehabilitation and building projects.
•HOME funds are required to be matched at the rate of one match dollar for each four HOME
dollars or 25% of the HOME funds being requested. The City has made a commitment to
match local HOME dollars, however, we also expect applicants for local HOME funds to
contribute to meeting this matching contribution (see HOME regulations for eligible forms of
match).
•The City requests that applicants leverage private funding, volunteers, and in-kind
contributions whenever possible and to include this information on your application. These
contributions are worth points in the ranking sheets and are included in HCDC’s evaluation of
your application.
•Construction estimates should be realistic. Funds remaining after the proposed work is
completed will revert to the CDBG line of credit.
•Applicants can apply for grants and/or loans.
•Other project costs such as compliance with HUD regulations (audits, labor standards,
environmental studies, fair housing, etc.) listed in Part III below should also be included.
FY24 Iowa City CDBG and HOME Applicant Guide 5
FY24 CDBG/HOME Scoring Criteria
FY24 Iowa City CDBG and HOME Applicant Guide 6
FY24 Iowa City CDBG and HOME Applicant Guide 7
FY24 Iowa City CDBG and HOME Applicant Guide 8
PART III. Housing
Additional Information Requirements. Before an applicant may enter an agreement with the City, the
applicant must submit updated information such as the project schedule, sources and uses statement,
construction budget (if applicable), and pro forma (if applicable) to facilitate the underwriting process.
All other funding sources must be identified and verification submitted to the City to complete a subsidy
layering analysis when multiple public funding sources are utilized.
Appraised Value at Project Completion. Each housing project, except minor home repairs, funded with
CDBG and/or HOME funds must have an appraised value at project completion that demonstrates
adequate equity to secure any liens.
Site Location. One of the City’s goals is to encourage the distribution of housing and residential facilities
(e.g. permanent housing – rental and homeownership, transitional housing, homeless shelters, and
special needs housing) throughout all neighborhoods of Iowa City. To encourage applicants to meet
this goal, a greater number of points will be awarded during the scoring process to projects that
successfully encourage housing through neighborhoods in Iowa City that traditionally lack affordable
options. The Affordable Housing Location Model was discontinued in October of 2022.
Pro Forma. Projects that include development of rental housing are required to complete a pro forma
that abides by the City’s rules for project underwriting. See Appendix B on pages 11-12 for specific
criteria.
FY24 Iowa City CDBG and HOME Applicant Guide 9
PART IV. Compliance with Federal Regulatory Requirements
All CDBG/HOME contracts include requirements imposed by various Federal-sponsoring agencies.
These include procurement standards for labor, materials, supplies and services not only related to the
project but also to the applicant's operation.
•No choice limiting actions may be made prior to receiving environmental clearance from the City
to move forward with a project. These include but are not limited to include signing contracts,
acquisition, demolition, disposition, rehabilitation, repair, new construction, site preparation, and
leasing or any other activities that commit to future activities.
•Procurement standards and subcontracting requirements are set forth in 2 Code of Federal
Regulations (CFR) Part 200. The following list briefly describes the main points in contracting for
services and purchasing supplies and materials.
•Affirmative efforts shall be made to utilize small and minority-owned businesses or sources of
supplies and services. Conflict of Interest rules will also apply.
•Construction contracts in excess of $2,000 shall comply with the Fair Labor Standards Acts.
Specifically, 1) the Davis-Bacon Act which requires contractors to pay wages to laborers and
mechanics at a rate not less than the minimum wages specified in a wage determination made by
the Secretary of Labor, 2) Copeland Anti-Kick Back Act which prohibits employers from inducing
employees to give up any part of the compensation to which they are otherwise entitled, and 3)
the Contract Work Hours and Safety Standards Act which requires contractors to compute wages
on the basis of a standard work week of 40 hours. Work in excess of the standard workweek shall
be permissible if the worker is compensated at a rate of 1½ times the basic rate of pay for all hours
worked in excess of 40 hours in the workweek. No worker shall be required to work in unsanitary,
dangerous or hazardous surroundings.
•Contracts over $10,000 shall contain requirements relating to Equal Employment Opportunity.
•Provisions for termination shall also be included in all contracts.
•Records should be kept for all procurements. Construction projects for more than $250,000 must
utilize the competitive sealed bids (formal advertisement) method of procurement. Procurement
by small purchase procedures shall be utilized for projects $250,000 or less. Contracts under
$10,000 may use the micropurchase method of procurement. Price or rate quotations shall be
obtained from an adequate number of qualified sources under this method.
•Contracts in excess of $25,000 shall contain provisions and conditions that allow for
administrative, contractual or legal remedies in instances in which contractors violate or breach
contract terms.
•Contracts in excess of $200,000 shall meet bonding and Section 3 requirements. Minimum bond
requirements include: bid guarantee equal to 5% of bid price, performance bond for 100% of
contract price and payment bond for 100% of contract price
•Applicants undertaking a Section 3 project are strongly encouraged to complete the free, self-
paced online training provided by HUD titled Understanding Section 3 or meet with staff to
understand the scope of the requirements before submitting an application:
https://www.hudexchange.info/trainings/section-3/
•Provisions regarding federal regulations on Non-discrimination, Equal Employment, Affirmative
Marketing and Fair Housing.
FY24 Iowa City CDBG and HOME Applicant Guide 10
•Acquisition, Displacement and Relocation are also contained in the Agreement.
•Lead Based Paint regulations regarding interim controls and abatement may also apply.
FY24 Iowa City CDBG and HOME Applicant Guide 11
PART V. Financial Management, Reporting, and Monitoring
Standards for financial management and record keeping are provided in 2 CFR 200. Local accountants
and agency directors experienced with federal requirements may be helpful resources.
•Each recipient shall have a financial management system that provides effective control over and
accountability for all funds, property, and other assets, must identify the source and application of
funds for federally-sponsored activities, and permit the accurate, complete, and timely disclosure of
financial results in accordance with the reporting requirements of the City and HUD.
•A separate ledger for the CDBG and/or HOME account is strongly recommended.
•Appropriate time distribution records must be kept for employees paid with CDBG funds in addition to
other funds.
•All project-related expenditures must be supported by third party documentation (invoices, contracts,
and purchase orders). Lien waivers are required from all contractors and subcontractors.
•Reductions in project costs or increases in the commitment of other funding, if any, shall be brought
to the immediate attention of staff. The impacts of these changes must be discussed with staff and
appropriate reductions in CDBG and/or HOME funds may be made on a case-by-case basis.
In most cases, a financial audit of the project expenditures will be required. Qualified individuals who are
sufficiently independent of the agency and can produce unbiased opinions and conclusions should
conduct these audits. Audit reports should be submitted within six months of project completion and final
disbursement of funds. Organizations that expect more than $750,000 in federal assistance from all
sources are required to have an audit covering the financial activities of the organization as well as the
project disbursements as set forth in 2 CFR 200.
Neighborhood Services staff will monitor all aspects of the project beginning with pre-agreement activities,
goal setting to project closeout. Any project changes must be approved by the City. Periodically,
Neighborhood Services staff and HCDC members will conduct monitoring visits to review project
progress, financial management, construction contracts, time records related to the project, as well as
client statistics. Staff will attempt to give reasonable notice prior to the site visit.
The City of Iowa City requires quarterly reports and has a standardized reporting form. For rental and
homeownership projects, the applicant must complete project close-out forms and submit to the City upon
project completion. The period of affordability does not begin until the City has been notified and the data
entered into HUD’s information and management system. The compliance period will vary depending
upon the regulatory requirements of the CDBG and/or HOME program and the information contained
within the CDBG/HOME application. During the compliance period, Neighborhood Services staff will
request records relating to the stated purpose of the project to see if goals have been carried out, to review
the low and moderate income benefit requirements as established by HUD, and to monitor the financial
status of the organization. All notices and reports should be directed to:
Neighborhood Services
410 East Washington Street
Iowa City, IA 52240
For CDBG projects, all records relating to the project should be kept at least four years after the
submission of the Consolidated Annual Performance and Evaluation Report (CAPER) in which the activity
is reported as complete. The CDBG Agreement should be retained until the end of the compliance period.
For HOME projects, all records shall be maintained as required in 92.508 Recordkeeping depending on
the type of project (rental, homeownership, or tenant-based rental assistance).
FY24 Iowa City CDBG and HOME Applicant Guide 12
Appendix A: CDBG and HOME Consolidated Policies
The City recognizes the need to utilize Community Development Block Grant (CDBG) and/or HOME Investment
Partnership Program (HOME) projects and other funding as effectively and efficiently as possible to meet the needs
of low-moderate income household for housing, jobs and services within Iowa City. To assist the Housing and
Community Development Commission (HCDC) in investing funds and evaluating a project’s status and ability to
proceed, the following policies shall apply to all projects effective July 1, 2020:
I.Investment Policies
a.Economic Development
Economic development projects making application to the CDBG Economic Development Fund will be reviewed
and approved by City staff based on criteria identified in the Applicant Guide. Updates will be provided to the City
Council Economic Development Committee periodically.
Typically, for-profit business projects will receive low-interest loans; whereas, non-profits may be recommended
for forgivable loans or grants. Decisions regarding investment terms for economic development projects will be
made based on the nature of the project including, but not limited to, the risk, potential for growth, the number of
and quality of jobs created for low-moderate income persons, the ability to repay a loan and the amount of other
funding leveraged. Economic development assistance may be used for direct business funding, or for funding
technical assistance for eligible businesses.
b. Housing
Rental Housing. The interest rate for rental housing activities will be zero percent (0%) for non-profit owned
projects and prime rate (determined at the time the CDBG/HOME agreement is executed by the City) minus two
points for for-profit owned projects with an amortization period up to thirty (30) years or the period of affordability,
whichever is less. The City may grant a different interest rate and/or a different repayment option based on the
nature of the project including, but not limited to, the revenue generated, the ability to repay a loan, the type of
housing provided, the beneficiaries, the amount of other funding leveraged and the location of the site.
Homeownership. Each year Iowa City adopts resale/recapture provisions that apply to all HOME assisted
homebuyer projects. The recapture/resale provisions shall be the same for both CDBG and HOME assisted
homebuyer projects. These provisions are set forth in the Annual Action Plan for the year the funds were
allocated to the Subrecipient/Recipient.
Tenant Based Rental Assistance (TBRA). All HOME funds provided for TBRA will be in the form of a grant.
c.Public Facilities
Public Facility projects as defined in 24 CFR 570.201(c) may be completed by the City and/or subrecipients.
Governmental entities (i.e. jurisdictions with taxing authority as provided for in Iowa Code) that conduct CDBG-
assisted public facilities projects will receive a grant with a compliance period of five years (60 months). Non-
governmental subrecipients will receive a conditional occupancy loan, which the City shall secure through a lien,
mortgage, or other comparable security against the assisted real property, to only be repaid upon transfer of title,
rental of the property, or termination of services or occupancy as outlined in the applicable CDBG Agreement. If
the subrecipient fully satisfies the terms outlined in the applicable CDBG Agreement, the security instrument will
be released by the City following the successful completion of the compliance period that begins on the date as
listed within the applicable CDBG Agreement. If the real property is leased, the lease shall be for a period that
matches or exceeds the compliance term of the earned grant.
The number of years in the compliance period of a conditional occupancy loan will be calculated by dividing the
total amount of CDBG assistance allocated to a subrecipient in any one City fiscal year for a public facility project
by $10,000, rounded down. The minimum compliance period is five years (60 months). The maximum compliance
period shall be no more than twenty (20) years. For example, $75,000 in CDBG assistance equals a compliance
term of 7 years or 84 months.
FY24 Iowa City CDBG and HOME Applicant Guide 13
d.Public Service
Public Service projects as defined in 24 CFR 570.201(e) shall receive CDBG assistance in the form of a grant
with a term of not less than one year (12 months).
II.Unsuccessful and Delayed Projects
HCDC recognizes that from time to time, there may be CDBG and/or HOME projects that do not meet the
anticipated schedule for implementation as presented to HCDC. These circumstances may be due to unforeseen
events (e.g. unfunded applications for other financing). The following process helps ensure subrecipients use their
funds in a timely manner.
1.All CDBG projects carried out by subrecipients will have entered into a formal agreement with the City of
Iowa City for the utilization of funds by September 30 each year. Should a subrecipient fail to meet this
schedule, the project will be reviewed by HCDC to evaluate if extenuating circumstances exist. If
extenuating circumstances exist and it is anticipated the project will proceed, a new timeline will be
established for the project. If circumstances do not warrant an extension of time, HCDC may recommend
the recapture and re-use of the funds to the City Council.
2.All CDBG projects (except applicants for Low Income Housing Tax Credits) carried out by subrecipients
will have expended a minimum of fifty percent (50%) of the assistance provided for the proposed project
by March 15 each year. This provides the subrecipient with approximately 255 days following the start of
the fiscal year to reach this threshold for CDBG projects. Should a recipient fail to meet this threshold, the
project will be reviewed by HCDC to evaluate the timeliness of the project and its ability to proceed. If
extenuating circumstances exist, a new timeline for expenditure will be established. If circumstances do
not warrant an extension of time, HCDC may recommend the recapture and reuse of the funds to City
Council.
3.All HOME projects carried out by subrecipients will have entered into a formal agreement with the City of
Iowa City within two years of award (24 months). All HOME funds must be spent within five years. Should
a subrecipient fail to show adequate progress towards meeting the schedule as identified in its application
or the statutory requirements of the HOME program, the project will be reviewed by HCDC. If a HOME
recipient is unsuccessful in obtaining funds identified in the application, HCDC will review the project and
determine its viability without the proposed funds. HCDC may recommend the recapture and reuse of the
funds to City Council.
III.Allocation of Uncommitted Funds
The City may have uncommitted CDBG or HOME funds that become available after the regular funding round
either through windfall income, project cancellation, or additional funds provided by HUD. In most cases, funds
will be retained for the next regular funding round and/or be used for administrative amendments of existing
projects. In the event uncommitted funds exceed $150,000, HCDC may choose to:
1.Provide funding to existing projects that did not receive full funding and/or to projects that submitted
applications but did not receive CDBG/HOME funding, up to their full request; or
2.Hold a special funding round to solicit and fund new proposals.
If funds shall be provided to existing and/or unfunded project, applicants will be notified of the availability of funds
and asked to provide a written request for funds and how they will utilize them for their original request. If new
projects are being considered, HCDC must publish notice of funding availability and proceed with a formal
application process. In all cases the public must be given the opportunity for comment on the proposed use of
funds in accordance with the City’s adopted Citizen Participation Plan.
FY24 Iowa City CDBG and HOME Applicant Guide 14
APPENDIX B: PRO FORMA INSTRUCTIONS
Developers of rental housing (including rehabilitation projects) are required to complete the pro forma at the time
of application. The purpose of this pro forma is to demonstrate that the project is financially feasible and viable
using the least amount of City funding, and to help staff and HCDC make informed decisions on the allocation of
HOME and/or CDBG funding. This form will provide the necessary information in a format that is uniform among
all rental housing applicants.
The following are instructions for completing the pro forma and some basic information for reference. The pro
forma template allows for up to 20 years of information, however, it only needs to be filled out through the
project’s period of affordability. Underwriting is required prior to signing an agreement and an updated pro forma
will be required if applicable to ensure information is current for staff review.
Please note, cells shown in grey in the pro forma template indicate fields that should be filled out by the
applicant.
If you have any questions about the form or need technical assistance, please call Community Development
staff at 319-356-5230. Staff can also help you determine the period of affordability for the project. Developer
fees (including overhead and profit, consulting fees) shall not exceed 10%.
Revenues [Income escalates at 2% as calculated in the spreadsheet; consistent with the Fair Market Rent (FMR)
increases for Iowa City]
Line 1 Gross Rent: Is the total amount of rent generated from the housing units, based on proposed
rent levels and expected utility allowance deductions for tenant-paid utilities (proposed rents
may be less than fair market rent (FMR), but cannot exceed FMR.
Line 2 Other Income: Include laundry income, application or pet fees, and interest income.
Line 3 Tenant Contributions: Include other payments such as rent for parking or storage space.
Line 4 Gross Income: Is the sum of Lines 1 through 3.
Line 5 Vacancy Loss: Line 1 multiplied by 5% (may be increased up to 10% depending on Applicant’s
past performance in managing units).
Line 6 Effective Gross Income: Line 4 minus Line 5.
Operating Expenses [Inflation escalator at 3% as calculated in the spreadsheet]
Line 7 Insurance: Estimated insurance expense from an agent or similar property.
Line 8 Maintenance & Structural Repairs: Repairs and replacements are typically 1% of the property’s
value, though varies depending on building age, condition, size, and use.
Line 9 Management Fees: May not exceed 10% of Annual Gross Rent, typically 5% to 7%.
Line 10 Misc. Operating Expenses: legal, accounting, advertising, owner-paid utilities, etc.
Sum of Lines 7-10 shall be no less than $2,750/unit; SRO properties in single family
homes shall be considered 0.3 units each.
Line 11 Property Tax: Estimate available from City Assessor or Johnson County records.
Line 12 Reserves: Operating reserve no less than $400/unit. If new construction, include a rent-
up reserve for Year 1 of gross monthly rent for all units x 3 months).
Line 13 Total Operating Expenses: Sum of Lines 7 through 12.
Net Operating Income
Line 14 Net Operating Income: Line 6 minus Line 13.
Debt Service [list mortgage payments for principal and interest only]
Line 15 Debt Service for 1st Mortgage.
Line 16 Debt Service for Subordinate Mortgage(s): Total payments for all junior mortgages.
Line 17 Total Debt Service: Sum of Lines 15 and 16 (should not be less than 87% of Line 14).
FY24 Iowa City CDBG and HOME Applicant Guide 15
Cash Flow Available for Distribution
Line 18 Cash Flow: Line 14 minus Line 17.
Line 18B Equity Investment: Amount of funds being invested in the project by the project developer\
sponsor. This does not include the equity raised through the sale of Low Income Housing Tax Credits as
they are accounted for on Line 33. A minimum contribution of $100 is required.
Cash on Cash Return on Investment [shows return to developer or investors on their equity contribution
before taxes or tax credits are included]
Line 19 Cash on Cash ROI: Line 18 divided by equity investment as shown on the application.
Debt Coverage Ratio
Debt Coverage Ratio (DCR): Ratio of estimated net operating income to debt service. Line 14 divided by
line 17. After year 3, DCR shall be no less than 1.15 or over 2.00 during the affordability period.
Encourage 1.20-1.50. If the DSCR exceeds 2.00, the applicant must submit an explanation which staff
will take into consideration when reviewing the application.
Determining Taxes
Line 20 Cash Flow: Carry over the figure from Line 18.
Line 21 Depreciation Expenses: Annual depreciation of property (27.5 year straight-line schedule).
Line 22 Amortization of Fees: Annual amortization of project fees (15-year straight-line schedule).
Line 23 Principal Payments: Calculate the amount of principal paid on all loans for each year.
Line 24 Reserves: Carry over the figure from Line 12.
Earnings (Loss) Before Taxes
Line 25 Earnings Before Tax: Equals (Line 20 minus Lines 21 and 22) plus Lines 23 and 24.
Taxes
Line 26 Tax Rate: Use 35% tax rate for for-profit organizations and 0% for nonprofits.
Line 27 Taxes Incurred (Saved): Line 25 multiplied by Line 26.
Cash Flow After-Tax
Line 28 Cash Flow: Carry over figure from Line 20.
Line 29 Taxes Incurred (Saved): Carry over figure from Line 27.
Line 30 Cash Flow After-tax: Line 28 minus Line 29.
Total Benefit Analysis
Line 31 Cash Flow After-tax: Carry over figure from Line 30.
Line 32 Rehabilitation Tax Credits: Calculate full value of rehab tax credits.
Line 33 Low Income Housing Tax Credits: Calculate full value of LIHTC annually for each of the 1st 10
years.
Line 34 Net Sale Proceeds: In year 20, calculate the estimated future market value of the property by
taking the total cost of the project as presented in this application and compound it by 2% for
each year. Place this amount on line 34.
Line 35 Net Cash Flow After-tax: Equals the sum of Lines 31 through 34.
Line 36 Return on Investment: Equals the Net Cash Flow After Tax divided by the Equity Investment.
FY2023 Aid to Agencies Application
Emerging
Aid to Agencies provides flexible operational funding for nonprofits. Applications are due
Monday, January 30, 2023 at 12pm. This application is for “emerging” agencies, those that
have not existed as a legal entity for at least 2 years or have not received A2A funds in
any of the last five years. Each agency is eligible to apply for up to $15,000. No award will
be made for less than $5,000. Please submit one project proposal per application.
Questions can be directed to Brianna Thul at bthul@iowa-city.org or to Neighborhood
Services at 319-356-5230. Hard copy applications are available upon request.
Submit completed applications online at www.icgov.org/actionplan or a PDF version to
bthul@iowa-city.org. Emailed applications must receive a confirmation email from City staff
before the application deadline to be considered for funding. Online submittals are
preferred, but you may send your application by certified or registered mail; overnight
delivery service e.g., FedEx; or deliver in person if arrangements are made with a
Neighborhood Services representative. Please call 319-356-5230 to make drop off
arrangements prior to arrival.
Applications are due on Monday, January 30, 2023 by 12pm.
No exceptions will be made for late submittals.
Should you have any questions while completing the application contact
Neighborhood Services staff at 319-356-5230 or by email at
bthul@iowa-city.org.
Agenda Item #5
1
Section 1 – General Information
1.Lead Organization/Agency
Name:
Address:
Website:
Application Contact
Name:
Title:
Phone:
Email:
2.Organization/Agency Type
501(c)3:
Public:
For Profit:
Faith-Based:
CHDO:
Other:
Years in Operation:
3.Project
Project Name:
Brief Description:
Total Funds Requested:
4.History
Has your
agency/organization
received City assistance in
the last five years?
Yes
No
If yes, describe
Is the applicant currently in
compliance with all federal,
state and local laws, rules
and regulations including
any CDBG and/or HOME
funded projects? (including
partners, co-applicants,
etc.)
Yes
No
Currently in litigation
Provide comments if needed
Section 2 – Need and Priority
The City Steps Plan guides funding within the community that benefits low-moderate income
persons by creating jobs, improving housing, and providing services. You can find a copy of
City Steps at www.icgov.org/actionplan.
5.Summary of proposed
project:
6.Why is the project
needed?
7.How does the project fill a
gap in the community?
8.How does the project
address the goals of 2021-
2025 CITY STEPS?
9.Describe how you will
incorporate sustainability
initiatives into your project to
help carry out the City’s
Climate Action Plan.
10.Provide a description of
your primary target
population(s). Explain how
your agency promotes racial
equity and inclusivity for
marginalized populations
(including people of color,
LGBTQ, immigrants/refugees,
individuals with disabilities).
Additional documentation: Please submit no more than seven pages.
Section 3 – Resources and Feasibility
Provide a budget breakdown for your specific project. Include only costs directly related to the
project. For example, providing a specific service should include the total estimated costs and
available resources, broke out by general categories such as salaries, materials, office
expense, marketing, etc. If required by local and/or federal regulations, include the cost of an
audit. Document costs whenever possible.
Attach cost documentation.
13.If volunteers are used,
please describe how these
volunteers are utilized for the
proposed activity.
14.All Aid to Agency projects
are required to expend their
full award and complete the
proposed project by the
end of the fiscal year (June
30, 2024). Will you be able to
meet this requirement?
Yes
No
11.Budget
Use of Funds City Funds Other Funds Source of Other Funds Type Status
$ $
$ $
$ $
$ $
$ $
$ $
$ $
Subtotal $ $
Project Total $
12.Labor
Type Description Hours Per Hour Rate Total Cost
$ $
$ $
$ $
$ $
$ $
Total $
Section 4 – Beneficiaries
15.Anticipated Income Levels of Beneficiaries (Unduplicated)
Households Persons
0-30% AMI
31-50% AMI
51-60% AMI
61-80% AMI
Over 80% AMI
Total
Percent LMI
Percent Iowa City Residents
Please describe the basis or
methodology used to estimate the
number of clients to be served.
AMI = Area Median Income, see www.icgov.org/actionplan.
16.Signature
Name
Title
Signature
Section 5 - Required Documentation
It is recommended that applicants submit as much information as possible with the application to facilitate a full
project evaluation.
Description Required
Board of Directors. Provide a list of individuals serving on the board. Yes
Agency Budget. Provide the budget for the agency. Yes
Financial Information. Provide a 990 form, agency financial statements, or
similar documentation.
Yes
IOWA PUBLIC
RECORDS AND
OPEN MEETINGS
LAW TRAINING
FOR BOARD AND
COMMISSION MEMBERS
Thurs., Dec. 8, 2022
YOU WILL LEARN:
✓What is considered a meeting for
governmental bodies✓Whether texts or emails are subject to
open meetings and public records laws✓When a board can go into a closed session✓What the penalties are for violations of
open meetings and public records laws✓And much more.
0
6:00PM
on Zoom
Register by
scanning the
OR code
�IOWA LEAGUE of CITIES
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CITY OF IOWA CITY
UNESCO CITY OF LITERATURE
Presented by Iowa League of Cities
Director of Membership Services,
Mickey Shields
If you will need disability-related accommodations in order to participate in this event, please contact Equity Director Stefanie Bowers at
319-356-5022 or stefanie-bowers@iowa-city.org. Early requests are strongly encouraged to allow sufficient time to meet your access needs.
Agenda Item #6