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Home My WebLink AboutWS-5 Final AH Revenue Streams wN Ln - r V ow Q b �y LL CC, M M V uj 0 O LL 0 z 0 LU v 1 LU ry r LL LL a City of Iowa City Affordable Housing Revenue Streams it October 15, 2024 � r CITY OF IOWA CITY Tracy Hightshoe UNESCO CITY OF LITERATURE Director, Neighborhood & Development Services City of Iowa City Sources of funds Types of Funding Description Funds Received Examples Annual Allocations & Regular recurring funding; Annually CDBG, HOME, HCV Entitlements Amounts vary based on Affordable Housing annual budgets Fund Special Allocations One-time special grants Sporadic, not ARPA, PRO Housing, awarded to the City guaranteed HOME-ARP, CDBG- CV Project Generated Revenues generated over Project Based, RFC and TIF F - Revenue time as a result of local amount varies Lieu housing policies. Reserves Excess revenue from Carried over ICHA Public Housing program operations or sale from year to Program reserves, of property. year Opportunity Fund Annual Allocations and DVIP - New Shelter Entitlements US Department of Housing & Urban Development (HUD): , Community Development Block Grants (CDBG) & HOME - �7 FY25 CDBG Funding of $919,719 FY25 HOME Funding of $634,281 Total FY25 CDBG/HOME funds available $1 ,554,000 (includes entitlement, program income and returned funds) FY25 Approved housing projects: • $325,000 Owner Occupied Housing Rehabilitation • $300,000 Tenant Based Rent Assistance — ICHA =_ • $19,000 CHDO Operations to The Housing Fellowship • $420,000 Rental Acquisition —The Housing Fellowship • $48,000 HOME Administration HOME funds can only be used for housing related activities. CDBG funds can fund a wide variety of community needs: public 3 services, public facilities, economic development, neighborhood amenities, and housing related activities. Annual Allocations and Entitlements Historic CDBG and HOME Funding CDBG Funding FY95-FY24 HOME S1,200,000 - $800,000 $1,000,000 d h $700,000 $600,000 $800,000 $500,000 $600,000 $400,000 $400,000 $300,000 $200,000 $200,000 $100,000 50 $0 1990 1995 2000 2005 2010 2015 1990 1995 2000 2005 2010 2015 2020 2025 2030 4 Annual Allocations and Entitlements Housing Choice Voucher Program (HUD) Approximately $11 ,331 ,190 to support 1 ,595 vouchers. 94.88% ICHA voucher Form .3._Fz,F,F,,�4 utilization rate Housing Choice Vouchers 1,286 ((8.2.33%StateW deVeterans Supportive Housrng(VASH) 95 verage) PPF- Mainstream 78 Emergency Housing Vouchers 69 Project Based Vouchers 60 During 2023: Stability Vouchers 7 Total 1,595 $10.8 ICHA Housing Public Housing Program (HUD) Payments Approximately $838,090 in operating, capital improvements, and rents to operate 86 public housing units. dA 5 Annual Allocations and Entitlements Aid to Agencies (Combined with CDBG) 103.4% increase in funding since FY16 $378,700 to $770,444 FY25 Budget of $770,444 ($646,444 in General Funds, $124,000 in CDBG funds) Aid to Agency Funding FY16-25 $900,000 Average of 26% of funds allocated for housing, shelter or housing $800,000 services over last three years. $700,000 Housing Related Funded Agencies: $600,000 $500,000 • Domestic Violence Intervention Program (DVIP) $400,000 • Eschucha Mi Voz $300,000 • HACAP $200,000 • Houses into Homes $100,000$0 • Inside Out Reentry FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 • Iowa City Sober Living • Iowa Valley Habitat for Humanity • Shelter House 6 Annual Allocations and Fntitlements City General Fund $200,000 General Rehabilitation Improvement Program (GRIP) $1 ,030,000Affordable Housing Fund Affordable Housing Fund 49% Housing Trust Fund (HTF) $500,000 19% HTF - LIHTC Projects $200,000 FY17 $ 1,000,000 2% Opportunity Fund $25,000 FY18 $ 650,000 FY19 $ 1,000,000 4% Healthy Homes $45,000 FY20 $ 1,000,000 11 % Housing Placement Services FY21 $ 1,000,000 ($80,000 Security Deposits/ $110,000 $30,000 Landlord Risk Mitigation) FY22 $ 1,000,000 5% Emergent Situation $50,000 FY23 $ 1,000,000 10% Winter Shelter $100,000 FY24 $ 1,000,000 FY25 $ 1,030,000 Total $1,030,000 Total: $ 8,680,000 End of year balances from Healthy Homes and Emergent Fund transfer to 7 the Opportunity Fund. Opportunity Fund amount available: $265,428. Annual Allocations and Entitlements Annual Entitlements and Special Allocations HUD: FY25 CDBG (dedicated to housing) $ 477,719 FY25 HOME $ 634,281 HCV Program $11,331,190 Public Housing Program $ 838,090 Subtotal: $13,281,280 City General Fund: Aid to Agencies $ 646,444 GRIP $ 200,000 Affordable Housing Fund $ 1,030,000 Subtotal: $ 1,876,444 Total: $15,157,724 8 Special Allocations American Rescue Plan Act (ARPA) Awarded FY21, fund expenditure deadline of Dec. 31, 2026 Dedicated $2.85 million of total $18.3 million award to housing: • Acquisition of 4673 Herbert Hoover Highway — 3, 3-bedroom condos. $957,939 ME old i.; is ei F .■ �• =_IiE _-- Land Acquisition of 1002 & 1006 N. Summit St. to construct up to 36 units. $750,000 • Shelter House Stability Pilot Project for Coordinated Entry, Housing Stabilization Services, and Eviction Prevention and Diversion. $1 ,137,710 Housing Related Assistance Provided Through Other ARPA Set-Asides totaling $1 ,646,500: • . • Forest View Relocation: $1 ,071 ,500 � • DVIP Operations: $45,000 • Houses into Homes: $10,000 • InsideOut Reentry: 20,000 9 • Lead Reduction — service lines of private homes: $500,000 Special Allocations HOME ARP - $1 ,789,981 Awarded FY22, fund expenditure deadline of September30, 2030 • $650,000 DVIP for non-congregate shelter • $681 ,981 Shelter House for supporting services and operating expense • $200,000 Iowa Legal Aid for supportive services State HOME ARP - $294889733 Announcement by IFA 9124. Construction complete 2 years after agreement entered, services spent by December 31, 2029. Partnership with DVIP. DVIP will purchase lot on Kenneth Drive previously purchased by the City with Opportunity Funds through the Affordable Housing Fund. City will issue grant funds for the land acquisition. IFA award to DVIP includes: • $1 ,740,508 - Development funds for up to six townhomes • $608,225 - Supportive services • $140,000 - Operating funds 10 Special Allocations PRO Housing Funds - $3,752,000 PRO HOUSING Awarded FY25, fund expenditure deadline of Sept. 30, 2029 "l "'.'ys to Removing Obbw u • $150,000 Comprehensive Plan (updated Land Use Plan) • $300,000 Parking Study • $100,000 City initiated rezoning to increase multi-family zones " *T""'►F` ' • $200,000 Housing Counseling (focus on our 1 ,595 voucher _ holders + community workshops) • $100,000 Technical assistance to establish a development arm ( i 77 within the Housing Authority • $2,256,800 Affordable Housing Pilot Project (requires local match of at least $1 ,876,000) t CDBG-CV $623,620 Awarded FY24, fund expenditure deadline of Dec. 31 , 2025 �►i Iowa Finance Authority awarded Shelter House funds for improvements at their shelter including design, reconfiguration of existing dormitory restrooms, adding a workstation for increased security, and related improvements. State is contracting with the 11 City to administer the award. Special Allocations Special Allocations Fund Expenditure Deadline ARPA $ 218451649 12/31 /2026 HOME ARP $ 117891981 9/30/2030 State HOME ARP $ 214881733 Construction 2 Years; Services 2029 PRO Housing $ 317521000 9/30/2029 C D B G-CV $ 6231620 12/31 /2025 Total: $ 1194999983 12 �II9 I I Illllp I"" u' I �I ��' Vie IIIIIIIIIIIIIIIIII III II IIIIIIII �"��N�� III Illllllllllill Illllllllllluullulu�ll(�1 I ��I N I �I u i IIIIIIIII Illlluuuu I III ��IIIIIIIIIIIIIIIIIIIIIN Illlllllllllllllllllllllll�lliiiill II ulliiil � ' I NIIIIIIIII I IINI�IIII lill'� '��III�!�!�+ H ulllHNlllll�lll�llllill�lllll�l Project Generated Revenue �1N�Illll�ll�l�lh N '1 Riverfront Crossings Fee In Lieu �II�I`II ' I � I � Payments of $5,841 ,714 + interest of $442,400. Total available: $6,284,114 (Must be used in RFC) Foster Road Tax Increment Financing (10-year Residential TIF) Generated $393,759 to date. Year 3 of 10-year TIF. (Can be used citywide) Tailwinds TIF — Fee In Lieu -=-yam � � —_ Paid $1 ,805,648. Purchased 8 duplexes for South District Program. s s Available balance of $317,459 (dedicated to rehabilitation) South District Program Renovated duplex, sold to toil- income eligible homebu ers. 13 we,. Project Generated Revenue Project Generated Revenue RiverFront Crossings FIL $ 672847114 Foster Road TIF $ 3937759 Tailwinds TIF Balance $ 3177459 Total: $ 6,995,332 14 Reserves Public Housing — Restricted Funds • $1 ,380,388 available for affordable, income and rent restricted housing projects (can be used within the ICHA jurisdiction — Johnson, Iowa and parts of Washington County). Note: Eligible activities include acquisition and rehabilitation of City owned affordable housing. Public Housing Capital Reserves • $2,827,944 reserved for capital improvements or acquisition of new units into the Public Housing Program. Opportunity Fund • $265,428 Balance in fund Reserves Public Housing Restricted Funds $ 133803388 Public Housing Capital Reserves $ 238273944 Opportunity Funds (Prior year carryover) $ 2653428 Total: $ 474739760 15 Funds Available for Affordable Housing in Iowa City Annual Allocations and Entitlements total: $15,157,724 Sources of Funds Uncommitted Total Funds Funds Fund Restrictions PRO Housing Pilot Project, CDBG rules apply. Special Allocations $ 11 ,499,983 $ 2,256,800 Needs project match of at least $1.88 million. Project Generated Revenue $ 6,995,332 $ 6,677,873 $6.3 million must be used in Riverfront Crossings $4.2 million restricted to City owned affordable Reserves $ 4,473,760 $ 4,473,760 Housing or Public Housing program. Total: $ 22,969,075 $ 13,408,433 Total Funds Dedicated to Affordable Housing: $ 38,126,799 16 Affordable Housing Goals • Ensure efficient and effective investments through planning efforts. • Encourage increased supply of housing by reducing regulatory barriers. • Improve diversity of housing stock to ensure all types of households are available for all income levels and stages of life in Iowa City. • Enable and expand the construction of affordable, subsidized housing by creating a development arm within the Housing Authority. Recent Successes • Second Ronalds Street home in partnership with ICCSD, Greater Iowa City HBA Vocational Training - Council and The Housing Fellowship. •= = _ : —:=: • DVIP's new shelter expanding total beds from 40 to 70 and partnership to build six permanent supporting housing units for those transitioning out of shelter. • Acquired three new townhomes for permanent, City— owned affordable housing, operated by the ICHA. • Acquired 1002 & 1006 N. Summit for a future affordable housing project. • Awarded $3.7 million in PRO Housing grant to Jv- support housing, especially affordable housing. • Supporting Shelter House: Housing Stability Pilot I� project underway and securing annual funding for the Winter Shelter. • Approved housing text amendments to zoning code, November 2023 Next Steps • Work with Mullin & Lonergan Associates to: ✓ Develop 5-year Consolidated Plan — guides our federal funding to assist low-income residents based on prioritized needs. ✓ Complete a Regional Housing Market analysis to guide both our Comprehensive and Consolidated Plans. • Reposition the Public Housing Program to a Voucher platform to stabilize funding and create a sustainable model: ✓ RFP for Public Housing Repositioning and technical assistance to develop the City's capacity to develop and manage affordable housing to be released in November. • Continue to make strategic investments in housing and pursue funding opportunities in alignment with the City's Strategic Plan: ✓ Applied for PRO Housing II Grant this month which includes a comprehensive update of the Zoning Code. Next Steps • PRO Housing Actions: ✓ Begin providing housing counseling services. ✓ Update Comprehensive Plan (land use plan): Consultant agreement in November. ✓ Increase land zoned for multi-family development and initiate parking reform. ✓ Develop affordable housing through the pilot development project. • Create a development arm of the Housing Authority to manage existing housing and continue growing our affordable housing portfolio ✓ Evaluating suitable property for affordable housing, including in the RFC District. Cautionary Note: Developing affordable housing is a complex process taking significant investment of time and resources. Numerous stages: Feasibility study/review, identify site (assemble parcels), zoning and land use approvals, community engagement, securing financing (multiple layers), and actual construction. Ensuring regulatory compliance and mandatory reporting throughout. "The right to a good home is one of the noblest motives in the American way of life — it is inherent in the heart and soul of every American and should be the cornerstone of all public policy. Yet we are today facing the gravest housing shortage in our country's history." Remarks of John F. Kennedy in a Campaign Speech on the National Housing Crisis, Boston, Massachusetts, June 1946 Thank NJ t YO U . / D V � rev X +f o N V) `III�4 h 3 O O cc O v, un � LL E�: 'L , ri r W V M M � W nn J U z O U z O a z LU V) W oc LL LL a