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Home My WebLink AboutWS 1 - City Steps 2030, Five-year Consolidated Plan Preview Item: Ws-1 STAFF PRESENTATION TO FOLLOW : CITY OF lOVVA CITY 41❑ East Washington Street Iowa City, Iowa 5 2240-1 826 (319) 356-5000 Q 19) 356-5009 FAX www.icgov.org 00000 City of Iowa City City 2030 Five-Year Consolidated Plan Preview November 4, 2024 -Agenda CityCouncil Work Session • Mullin & Lonergan introduction • Overview of Consolidated Plan and related planning efforts. • Public input process • Observations of Iowa City's HUD programs • Recommended Investment Strategies for CDBG and HOME • Aid to Agencies • Recommended Investment Strategies • City Funding Priorities • Funding Review Process Recommendations Mullin & Lonergan • Hired by the city through RFP process. • Headquarters in Pittsburgh, PA. • Have prepared more than 125 Consolidated Plans for nearly 80 entitlements. • Provide ongoing CDBG and HOME technical assistance to 40 communities. • Completing the city's Analysis of Impediments to Fair Housing and Regional Housing Needs Assessment Consultant Team: Bill Wasielewski, AICP - President Hannah Genovese, MPA - Housing & Community Development Specialist Emily Reilly - Housing & Community Development Specialist ■ CitySteps 2030 Iowa City's Five-Year Consolidated Plan • What is a Consolidated Plan? • Framework document to identify housing and community development needs for the next five gears • Helps the citg focus expenditures of federal CDBG and HOME funds. • Sections of the Consolidated Plan: • Needs Assessment • Housing Market Analgsis • Non-housing community development section • Strategic Plan • Related Planning Efforts: • FY26 Annual Action Plan • Analgsis of Impediments to Fair Housing • Regional Housing Needs Assessment Public Input Public Meetings • Pheasant Ridge Neighborhood Center: 7/30/24 at 6:00pm Seeking Input Community and =___ • Saint Patrick Church (Escucha Mi Voz): 7/31/24 at 7:00pm Housing Needs --- • Broadway Neighborhood Center: 8/1/24 at 5:30pm in Iowa City • Virtual public meeting 9/9/24 at 2:30pm As part of its City Steps 2030 plan, - City seeks input from local partners and AAA Stakeholder Input Sessions agencies on Iowa Cil affordable housing,community development, and econom ic development needs over the ni frie years.Peedback will help determine he.federal funds will be spent to best benefit low-to-moderate income households. 1. Housing Needs of Underserved Populations 2. Housing Assistance and Barriers to Safe Affordable Stakeholder Sessions City Steps ' ' Housing Tuesday,July 3D,2024 Session#1 9:45-11 a.m. Housing Needs of Underserved Populations 3. People Experiencing or At-Risk of Homelessness Session#2 11 a.m.-12:15 p.m. Housing Assistance and Barriers to Safe Afforda StepS Session 93 1:30-2:45 p.m. People Expenereing or at Risk of Homelessness 4. Non-Housing Community Development and Basic Needs Wednesday,July 31,2024 5. Workforce Development Session#4 11 a.m.-12:15 p.m. Non-Housing Community Development and Basic Needs 6. Sustainable Neighborhoods and Amenities Thursday,August 1,2024 Session#5 8 30-9:45 a.m. Workforce Development Session#6 9 45-11 a.m. Sustainable Neighborhoods and Amenities Session#7 11 a.m-12:15 p.m. Make-Up Session Housing Needs Survey for Iowa City • Translated to Spanish, French, Arabic & Mandarin ®iowacITY EARN MORE A Y 336 responses completed icgov.org/2030 Take p p o• o h' h' If you have questions r need disability-related accammobations to participate in the stakeholder workshops,contact Erika Kubly,Neighborhood Services,at.kublKfLa.,ily.org,a 311-111-111, Shelter Survey Early requestsare strongly encouraged to allow sutticienl lime to meet youraccess needs. 0 • Distributed by Shelter House and DVIP staff Public Input Themes from Public Input Sessions: El 1 Expanded affordable housing opportunities P �� Rental cost burden; need for rent assistance • Expanded permanent supportive housing opportunities • Increased need for housing for below 30% AMI Access to housing and services 'r �= � � �� • Transportation Barriers for immigrants • Fair Housing concerns Continuing and expanded public services • Increased mental health needs • Additional services in LMI neighborhoods (health clinics) e Workforce development and improved access to opportunities -' v • Vocational training opportunities ; �-- Childcare that is both affordable and pays a living wage Iowa Cit 's HUD Programs�J General Observations of the City's Funding • Iowa City is a small entitlement community. • Received $716,206 in CDBG and $384,380 in HOME funds in FY25 • Over the last 5-7 gears federal allocations have remained the same or decreased. Programmatic and Administrative Observations • The Citg allows ang eligible activitg under CDBG or HOME. • Small entitlement communities lack staff capacitg to administer all tgpes of activities. • Federal regulations increases project costs. • HUD continues to add complex regulatorg requirements. • The current staff levels for the Citg are too thin to administer everg tgpe of eligible activitg, given the increasing federal regulations and complexitg. • Iowa Citg has dedicated local resources towards affordable housing and public services. Iowa City must prioritize their federal resources on the highest priority needs and focus strategic investments and funding decisions based on these identified needs. 00000 Comparable Entitlements - CDBG Communities with a similar CDBG allocation to Iowa City focus funding on a small number of activities: Iowa City National City, CA Albany, GA Davis, CA Lynchburg, VA CDBG Funds $716,206 $712,730 $720,108 $720,159 $722,622 Admin & Planning x x x x x Public Services x x x x x Public Facilities x x Owner Rehab x x Rental Rehab x x Acquisition x Down Payment Assistance x Infrastructure x x x x Economic Development x x Recommended Investment Strategies HOME Funding HOME Funding • Recommended Set-Asides: ✓ TBRA • Tenant-Based Rent Assistance ✓ Down Payment Assistance • Down Payment Assistance ✓ CH DO Activities • Direct projects involving construction of new affordable housing to the Housing Trust Fund of Johnson County revolving loan fund which receives an annual contribution from the city's Affordable Housing Fund. �- • Current quarterly funding round has $1.7 million _� —. _ sue;•• available _- -_ ••• • Limit competitive funding for HOME to CHDOs =-- -- _••••*•»•••••s«».. (Community Housing Development Organization) _ • HOME Rule requires 15% funds to CHDO activities Recommended Investment Strategies CDBG Funding • Utilize the economic development set-aside on microenterprise assistance for in-home childcare providers. • Focus owner-occupied rehab activities under CDBG • Eliminate the HOME owner-occupied rehab set-aside. CDBG Funding • Establish a rental rehab set-aside for city-owned (non-public ✓ Childcare Technical Assistance housing) rentals. ✓ Owner-occupied • Limit competitive funding for CDBG to the following activities: rehab • Public facilities ✓ Rental Rehab ✓ Public Facilities • Rental acquisition ✓ Rental Acquisition • Restructure the method for providing public service funding ✓ Public Services (Aid to Agencies) Proposed Activities for CDBG/ HOME 00000Activity CDBG HOME Admin & Planning Set-aside Set-aside Recommendation: Public Services Set-aside NA Iowa City must prioritize its federal Economic Development Limited Set-aside NA resources on the highest priority Public Facilities Competitive NA needs and focus strategic Infrastructure Not funded NA investments and funding decisions Owner Rehab Set-aside Not funded based on these identified needs. Rental Rehab Set-aside CHDO projects Acquisition Competitive CHDO projects New Construction NA Not funded Down Payment Assistance Not funded Set-aside TBRA NA Set-aside 00000 400000 Funding Priorities Recommended public service funding priorities based on Aid to Agencies Funding community needs and public input: • Establish City public service funding priorities • Homeless and Shelter Services and direct funding to meet those priorities. • Food Insecurity • What core services do we need in our • Healthcare (includes mental & behavioral health) community? • Childcare and Youth Services • Incorporate public input received • Housing Stability Services • Focus on impact, outcomes, and performance. • Transportation • Data through joint funding application Additional prioritization for agencies serving populations • Simplify the application and review process. with higher barriers to accessing services, including (but • This year's A2A packet is over 500 pages. not limited to): • The process is burdensome for both • Immigrants & refugees applicants and commissioners. • Elderly populations • Persons with disabilities 000400 . Victims of domestic violence Aid to Agencies Recommendations Factors . . A2A Direct Funding Process Meets City Steps Agencg provides an essential service that is Agencies who meet city priorities and other key Priority identified as a priority in City Steps 2030. Years in Existence Agencg has been operating for no less than factors will receive five-year funding through the 15 gears in its current capacitg. city as core services Local Agencg's headquarters is located in Iowa Citg and serves Iowa Citg residents. • These agencies will not participate in the Agencg has full-time,dedicated professional competitive review process. Financial Capacity financial staff.Agencg has a single audit annuallg or has equivalent process that • Funding would increase/decrease demonstrates financial oversight. Quality of Agencg demonstrates sound operational proportionate to the annual budget. operations practices. • Any agency in this group is able to administer Agencg consistentlg meets performance measures and demonstrates an increase in CDBG funding. Performance the work performed and clients served over time. Agencg provides timelg submissions of reports and responses to staff inquiries. Aid to Agencies Recommendations HCDC Participation A2A Competitive Process Staff will score the applications for the • All other agencies would apply through the • competitive process and make a funding joint funding process every 2 years. • For many agencies this would mean no recommendation to HCDC. change to their process. • Memo provided for rationale. • This would eliminate Legacy and Non- HCDC can revise the staff recommendations Legacy categories. • Adjust minimum award to $20,000. as they see fit. • Agencies that score well in the competitive HCDC will not be obligated to score funding round will get priority for funding, applications individually. similar to now. Will continue to have access to • Agencies who were not previously eligible for application materials and scoring criteria. funding, including new agencies, will have access to a greater amount of grant funding opportunities. Next Steps for CitySteps 2030 Aid to Agencies • Legacy A2A applications have been submitted for the FY26-FY27 joint funding round. • Changes established through City Steps 2030 will be implemented over the next few years. CDBG & HOME • New set-asides for CDBG and HOME would be implemented beginning in FY26. Timeline for City Steps 2030 • Draft plan complete in November • HCDC review - December 2nd (tentatively) • City Council review - December loth • CDBG/HOME funding applications available at the end of Dec; due in January 2025 • City Steps 2030 will be back before Council on Spring 2025 with the FY26 Annual Action Plan once we have our funding allocations from HUD. CitySteps 2030 Preview Discussion Items • Do you concur with the following proposed changes? • HOME Investment Strategies • CDBG Investment Strategies • Funding Priorities • Direct funding for core services • Competitive Aid to Agencies process • If not, what guidance do you have for staff as we work on the draft plan? • Questions for Mullin & Lonergan ahead of the draft plan. 004000 STAFF PRESENTATION CONCLUDED CITY OF IOWA CITY 410 East Washington Street Iowa City, Iowa 52240-1 826 (319) 356-5000 (319) 356-5009 FAX www.icgov.org