HomeMy WebLinkAboutWS.4 PRO housing grant Item: WS-4
STAFF PRESENTATION TO FOLLOW :
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CITY OF IOWA CITY
110 East Washington Strcct
Iowa City. Iowa S2240- 1826
(3 19) 356- 5000
(319) 356- 5009 FAX
www.icgov.org
PRO Housing Federal
Grant Award
CITY COUNCIL WORK SESSION
AUGUST 6 , 2024
Background
•U.S. Department of Housing and Urban
Development ( HUD)
•$85 million in competitive grant funding
•Supports communities taking steps to remove N o
■ ■ ■ ■
barriers to affordable housing, including ■ ■
outdated zoning and land use policies N o 0 E
■ ■ ■ ■ ■ ■
•October 17, 2023 � o No � �
• City Council adopted a resolution approving the
PRO Housing grant application
• City requested $5.6 million
Grant Application
Grant Grant Request
Proposed Budget Proposed : . .
1
Parking Study & City-initiated Revision to Zoning Code Parking
Standards $250,000 $250,000
Regional Housing Needs Study $150,000 $150,000
Comprehensive Plan Update: Land Use & Housing Elements $150,000 $150,000
City-Initiated Rezoning to Accommodate Higher Density Housing $50,000 $50,000
Iowa City Housing Authority-Feasibility Study for Housing
Development Division $50,000 $50,000
Accessory Dwelling Unit Incentive Program $500,000 Removed
Housing Counseling $200,000 $200,000
Immediate Housing Assistance Program $750,000 Removed
Pilot Affordable Housing Development Project $5,800,000 Reduced
Project Administration $550,000 Reduced
Total Expenditures $8,450,000 $5,700,000
PRO Housing Grant Request $5,600,000 $2,850,000
City Affordable Housing Funds $2,850,000 $2,850,000
Total Revenues $8,450,000 $5,700,000
01
7PIPRO HOUSING WINNER
- • ■ _ - ■
Grant Award Overview: m unity housing soppy and lower housing costa,HUD s
Office of Community Planning and Development awarded$3.t
million to Iowa City.This grant funding will be used to!it
remove barriers m affordable housing pmductlon and presery
22%of homeowners an 61%of renters in Iowa City are g
cast Hundred d.The City has taken considerable actions to advance
housing supply through forming an affordable housing Pond,land use
reform,tax increment financing,and updating local regulations.
*Created to support II I I PRO H Due i ng funding will er able l owe City to evaluate local
regulations and land use policies,develop and update regional
housing plans,and create pilots to support affordable housing
communities committed to development.
locally-led zoning reform Restrictive Land Use Policies
Minimum parking standards and neighborhood land use
restrictions discourage multifamily tlevelopment. / r
Limited Availability of Housing • •
*Awarded grants to 21 The demand for tha Upspenty of Iowa.
bythe Additionally,
students attending the University of Iowa.Additionally,Iowa City / 7
is expected to grow by orer 10,000 residents,and needs 4,600
new housing un los to meet demand. /
communities Local Development Capacity
In recent years,the number of rhes for new homes has
decreased,due to a lack of capacity M local affordable housing.
*Iowa City awarded $3,752,000
Iowa City
• Amended the Chye Comprehensive Plan to encourage
affordable housing tlevelopment—including mixedincome
development,anneeof new lots,and flexibil es when•NofITIcation from HUD :
homes on undeveloped
building lantl.
• . Adopted an Affordable Housing Action Plan and Fair
Recognized we received less
HousingChoice transparency,
lee Study—uptlprovi tical technical
as,
• • C / • increasing transparency,antl updating
local
leegulatl assistance.
than the full amount t reaterhino a affordable ht years In
_generating over$7
million h over the Iasi eight 114 ho n households alone,this led l0 36
/ s new homes and assisted 114 houaeholtls.
• Adopted Tax Increment Financing[TIF)to support affordable
• Stated we can revise scope of housing-whi ch bas already led to 26 affordable units
• Encouraged affordable un Is in downtown districts—
work as contemplated in our
generating 79 off Drilabl units and$58 million in fees to help
gwithen rating nal affordable housing units.
grantapplication ,IIIIII. ImormaEon above is a wmmary avvwwe awardes pant api me o,annewis naroanprehensive. 11111'
II ILII Funded ac"iis mar diner all]iJm wu n.,arms sans•.n.,eanone wM HUD. I=
Revised Scope & Budget
Based on correspondence Grant Award
from HUD: IL
• Revised budget should Parking Study & City-initiated Revision to
Zoning Code Parking Standards
align with our brant Regional Housing Needs Study
application. Comprehensive Plan Update: Land Use & Details still need to be
• HUD to assist us aligning Housing Elements worked out with HUD.
City-Initiated Rezoning to Accommodate Staff anticipates the
our activates with award Higher Density Housing revised budget to be
amount, consistent with Iowa City Housing Authority-Feasibility Study similar to the 50% grant
our application. for Housing Development Division request.
• Anticipate budget to look Housing Counseling
similar to the 50% proposal Pilot Affordable Housing Development Project
in the application Project Administration
Total Expenditures $6,602,000
PRO Housing Grant Request $3,752,000
City Affordable Housing Funds $2,850,000
Total Revenues $6,602,000
Notice of Funding Opportunity (NOFO) Posted: September 7,
2023
Draft Application Published/Start of Comment Period: October
212023
Public Meeting/End of Comment Period/Resolution Adopt:
October 17, 2023
Timeline • Application Due Date: October 30, 2023
Next Steps Award Notice: June 26, 2024
HUD Hosted Webinars with Award Recipients:
August 20 & August 27
Execution of Grant Agreement:
City will receive grant agreement prior to webinars
Must be executed within 10 business days of receipt
Estimated Start Date: ???
Estimated end date: End of FY2029
STAFF PRESENTATION CONCLUDED
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CITY OF IOWA CIT)'
410 East Washington Strcct
Iona City. lona 52240- 1826
( 319) 356- 5000
( 319) 356. 5009 FAX
www. icgov.org