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HomeMy WebLinkAboutFY26 ICHA Rental Acquisition CDBG ApplicationPrinted By: Brianna Thul on 8/4/2025 1 of 13 Program Overview Completed by rcarter@iowa-city.org on 7/29/2025 11:55 AM Case Id: 30110 Name: Iowa City Housing Authority - 2024 Address: *No Address Assigned Program Overview Please provide the following information. CITY OF IOWA RENTAL ACQUISITION APPLICATION City of Iowa City 410 E. Washington Street Iowa City, IA 52240 (319) 356-5240 bthul@iowa-city.org The City of Iowa City receives Community Development Block Grant (CDBG) from the U.S. Department of Housing and Urban Development. Each year, a portion of this funding is made available for qualified applicants to undertake eligible activities. Please review the FY26 Applicant Guide prior to applying. Information related to this opportunity is available at www.icgov.org/grants. The City anticipates about $212,132 available for acquisition of rental housing in FY26. Printed By: Brianna Thul on 8/4/2025 2 of 13 A. General Information Completed by rcarter@iowa-city.org on 7/29/2025 11:57 AM Case Id: 30110 Name: Iowa City Housing Authority - 2024 Address: *No Address Assigned A. General Information Please provide the following information. LEAD ORGANIZATION/AGENCY A.1. Organization/Agency Name: Iowa City Housing Authority A.2. Organization/Agency Address: 410 East Washington Street Iowa City, IA 52240 A.3. Organization Website: Iowa City Housing Authority A.4. Unique Entity ID Number: U65GKD7KvMF1 A.5. Organization Type:  501(c)3  Public  For Profit  Faith-Based  CHDO  Other A.6. Did you attend the Applicant Workshop or meet with City staff about your project? Yes If yes, date: 07/28/2025 APPLICATION CONTACT A.7. First Name: Rachel A.8. Last Name: Carter A.9. Title: Housing Administrator A.10. Phone: (319) 887-6065 A.11. Email: rcarter@iowa-city.org A.12. 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)? Yes A.13. Is there a secondary applicant? No A.14. 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 Printed By: Brianna Thul on 8/4/2025 3 of 13 B. Project Need Completed by rcarter@iowa-city.org on 7/31/2025 5:29 PM Case Id: 30110 Name: Iowa City Housing Authority - 2024 Address: *No Address Assigned B. Project Need Please provide the following information. B.1. Name: ICHA Affordable Housing Rental Acquisition B.2. Address: (if unknown, leave blank) B.3. Additional Addresses? No B.4. Project Type  Rental Housing  Owner Housing Amount of Funds Requested: $212,132.00 B.5. Project Description: The Iowa City Housing Authority proposes the purchase of a single family housing unit (attached or detached) that we will manage and rent to households under 50% Area Median Income. Currently ICHA sees 3 and 4 bedroom voucher holders with the longest rental search time for a unit that will accept a voucher. We intend to purchase a 3 or 4 bedroom unit with these funds to address that need. B.6. Mark goal from City Steps 2025 primarily addressed by this application  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  Provide public services Printed By: Brianna Thul on 8/4/2025 4 of 13  Improve public facilities  Improve public infrastructure & address climate action needs  Support economic and workforce development B.7. Briefly explain how your project will meet this goal. This project will add another unit of affordable rental housing to the City. Acquiring a unit of this size serves one of the greatest housing needs we see for Housing Choice Voucher households in our jurisdiction. Printed By: Brianna Thul on 8/4/2025 5 of 13 C. Budget - Source of Funds Completed by rcarter@iowa-city.org on 7/31/2025 4:14 PM Case Id: 30110 Name: Iowa City Housing Authority - 2024 Address: *No Address Assigned C. Budget - Source of Funds Program regulations encourage leveraging non-federal funds. Non-public funds are especially encouraged. 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. C.1. Source of Funds Category Amount Description(s) of Funds Status* Requested CDBG/HOME funds $212,132.00 Requested CDBG funds or applied for (A) Previous Award $0.00 Other local funds $0.00 State funds $0.00 Other federal funds $0.00 Applicant Funds (Equity)$0.00 Applicant Loan $0.00 Other Private Funds $0.00 Other:$115,000.00 Public Housing disposition proceeds committed (C) $327,132.00 C.2. In-Kind Contributions Category Amount Description(s) of Funds Status* Materials $0.00 Labor $3,000.00 City staff time in acquisition and leasing services committed (C) Other:$0.00 $3,000.00 C.3. Describe community partnerships or volunteers that will contribute to project. We partner with Shelter House, the VA, and the Coordinated Entry Region partners to assist in identifying families in need of our vacancies. We have additional partnerships with Iowa Legal Aid, Iowa City Climate Action, Johnson County, the Housing Trust Fund of Johnson County, Horizons Credit Counseling, and the Iowa Balance of State Continuum of Care to coordinate services for ICHA clients. Printed By: Brianna Thul on 8/4/2025 6 of 13 D. Use of Funds Completed by rcarter@iowa-city.org on 7/31/2025 4:16 PM Case Id: 30110 Name: Iowa City Housing Authority - 2024 Address: *No Address Assigned D. Use of Funds Program regulations encourage leveraging non-federal funds. Non-public funds are especially encouraged. 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. D.1. Use of Funds Hard Costs Amount Description of Work Land Acquisition $0.00 Building Acquisition $327,132.00 Acquisition of one rental home. Site Improvements $0.00 Rehabilitation $0.00 Construction $0.00 Other $0.00 D.2. Soft Costs Amount Description of Work Professional Fees $0.00 Construction Finance $0.00 Permanent Finance $0.00 Developer Fees $0.00 Reserves $0.00 Other $0.00 $0.00 Printed By: Brianna Thul on 8/4/2025 7 of 13 E. Feasibility and Community Impact Completed by rcarter@iowa-city.org on 7/31/2025 5:28 PM Case Id: 30110 Name: Iowa City Housing Authority - 2024 Address: *No Address Assigned E. Feasibility and Community Impact Please provide the following information. E.1. Anticipated Income Levels of Beneficiaries (Unduplicated) Households Persons 0-30% AMI 31-50% AMI 1 4-6 51-60% AMI 61-80% AMI Over 80% AMI AMI = Area Median Income, see Applicant Guide or www.icgov.org/actionplan E.2. Special Populations (If applicable, mark one “presumed benefit” category if required for assistance) Domestic Violence Victims Elderly Homelessness Persons with Disabilities Migrant Farm Workers Persons with AIDs Other as defined in 24 CFR 570.208(2)1 E.3. Housing Projects (Required for Housing Projects Only) Rental Housing Proposed Contract Rent Owner Housing Proposed Sales Price 1 $1,220.00 $0.00 $1,220.00 $0.00 E.4. 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. (Required for Housing Projects Only) One of ICHA's goals in acquiring and managing affordable rental units is placing them in high opportunity areas, which historically have not had many affordable housing options. Our intention with this project is to purchase a home in a neighborhood without many naturally occurring affordable housing opportunities. E.5. Vacancy and Property Management (Required for Housing Projects Only) Number of people on the housing Total number of units owned by the Total number of units currently Total vacancy rate (vacant units Number of federally Does your organization Printed By: Brianna Thul on 8/4/2025 8 of 13 waiting list for your organization organization vacant divided by total units) funded units vacant (units from previous CDBG/HOME projects currently in a period of affordability) use a property manager? If yes, please indicate the entity and provide a point of contact. 1616 110 2 0.02 or 2%0 No E.6. Proposed Project Timetable (include milestones such as rezoning, construction schedule, application(s) for other funding, and expected commitment dates. Date Milestones 0 Purchase property - 6 months after funding is awarded to ICHA 0 Complete leasing - 2 months after property is purchased. E.7. Describe your agency’s approach to serving LMI households and how this promotes efficient use of funding in the long term. ICHA is committed to promoting housing stability and economic opportunity for low- and moderate-income (LMI) households. Our approach emphasizes equity, responsiveness, and resource optimization through the administration of Housing Choice Vouchers (HCV), project-based vouchers (PBV), and targeted programs such as HUD-VASH for veterans and Family Self-Sufficiency (FSS) for long-term economic empowerment. A key strategy in ICHA’s mission is the development and preservation of deeply affordable housing options. This includes the acquisition of single-family homes to be rented to LMI households. By purchasing these units directly, ICHA ensures long-term affordability, preserving access for vulnerable populations. E.8. Describe how the project will provide for affordable housing or public assistance at rates or prices lower than those in the existing market. The project will provide affordable housing at rates below those in the existing market by setting rents at 80% of the HUD-determined Fair Market Rent (FMR), ensuring affordability for low-income households. This rent level is substantially lower than typical market rents in Iowa City, creating meaningful savings for tenants. Additionally, units are actively advertised to Housing Choice Voucher (HCV) holders, expanding access for households who often face barriers in the private rental market. By targeting voucher holders and maintaining rents below market levels, the project ensures that housing remains both accessible and affordable to those most in need. E.9. 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. No, the project will not proceed if less than full funding is awarded. Full funding is essential to ensure the acquisition and long-term affordability of the unit. Without complete financial support, the project would not be viable or sustainable within the targeted rent structure and intended service to low- and moderate-income households. Printed By: Brianna Thul on 8/4/2025 9 of 13 F. Agency Capacity Completed by rcarter@iowa-city.org on 7/31/2025 4:54 PM Case Id: 30110 Name: Iowa City Housing Authority - 2024 Address: *No Address Assigned F. Agency Capacity Please provide the following information. F.1. CDBG and/or HOME funds received, and status of the project(s) undertaken Timeframe Budget Expended through 2024 Date Project Completed July 1 2019 – June 30 2020 $0.00 $0.00 M/d/yyyy July 1 2020 – June 30 2021 $0.00 $0.00 M/d/yyyy July 1 2021 – June 30 2022 $0.00 $0.00 M/d/yyyy July 1 2022 – June 30 2023 $0.00 $0.00 M/d/yyyy July 1 2023 – June 30 2024 $0.00 $0.00 M/d/yyyy F.2. 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. N/A F.3. 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. Yes F.4. 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). The City currently owns and manages 116 rental units in Iowa City, 110 of which have local or federal funding and compliance regulations tied to them. ICHA performs all leasing and income verification work. We have a staff person dedicated to maintenance requests and managing workflow of repairs and utilize a contracted maintenance service after hours. Public Housing: The City owns and manages 86 Public Housing units. Of the 86 units, 53 are scattered site single family homes and duplexes. The remainder consist of a 20-unit complex, an 8-unit complex, and 5 units within a high-rise building. All are located with the city limits of Iowa City. Public Housing mandates physical property inspections, lease up rate compliance, and income and asset determinations in accordance with 24 CFR Part 5. ICHA has received favorable HUD assessment scores for the Public Housing Program for over 30 years. The two multi-unit Public Housing sites ICHA owns and manages are similar in density and age of units to the property at 1102 Hollywood Blvd. Affordable Housing: The City owns 24 affordable housing units. These are comprised of a 10-unit building, 6 units in a large apartment building, 5 duplex and single-family units, and 3 townhomes. ICHA utilizes 24 CFR Part 5 income determination standards for each of these properties and is monitored regularly. ICHA currently administers 60 project-based vouchers and has maintained “High Performer” designation with HUD’s Section Eight Management Assessment Program (SEMAP) consistently for over 15 years. Roles of Key Staff: Doug Black, Public Housing Coordinator, Iowa City Housing Authority. Doug has managed properties for the City for 4 years, and currently oversees the Public Housing program (86 units) and the City’s affordable housing units (24). This entails income compliance, leasing, and property management. Diana Huff, Housing Program Assistant II, Iowa City Housing Printed By: Brianna Thul on 8/4/2025 10 of 13 Authority. Diana has worked at the Iowa City Housing Authority for 20 years as a Program Assistant, completing income and rental verifications in the Housing Choice Voucher Program. She also completes the income compliance for Public Housing and City owned affordable housing. Tim Davin, Public Housing Technician, Iowa City Housing Authority. Tim has been with the City for 14 years and completes and tracks maintenance requests for all the City’s housing units. Rachel Carter, Housing Administrator, Iowa City Housing Authority. Rachel has 18 years of experience in affordable housing and veteran homeless services. She oversees Iowa City Housing Authority programs, including the Housing Choice Voucher Program, Public Housing, and the City’s affordable housing rental units. F.5. 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 F.6. 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. The demand for the proposed project is demonstrated by the significant number of households on the Iowa City Housing Authority’s public housing and Housing Choice Voucher waiting lists. As of the most recent data, there are 1,616 households on the public housing waiting list, reflecting a high level of unmet need for affordable housing in the community. This data is verified and maintained in compliance with federal regulations governing Public Housing Authority (PHA) waiting lists, as outlined in 24 CFR 982.204 and 24 CFR 960.206. The list is managed through a secure housing authority software system that tracks applicant eligibility, preferences, and placement in real time, ensuring the accuracy and integrity of the data. While other organizations in the region also offer affordable housing or rental assistance, the demand far exceeds the available supply. Additional units created through this project are not duplicative but complementary, helping to address the housing gap more effectively. Given the long wait times and the number of households seeking assistance, both existing and new projects are essential to meeting the growing need for safe, stable, and affordable housing in Iowa City. F.7. Describe the strategies your agency uses to serve those in need and an overview of the organization’s recent activities, including projects underway. The Iowa City Housing Authority (ICHA) employs a comprehensive, multi-faceted strategy to serve low- and moderate- income households, with a focus on expanding access to safe, stable, and affordable housing. Our approach integrates direct housing assistance, targeted development, and strategic partnerships to address both immediate housing needs and long-term community goals. ICHA is currently collaborating with other City of Iowa City staff on a new development project aimed at creating permanent affordable housing for low-income households. This initiative reflects our broader strategy to expand the supply of deeply affordable units in high-opportunity areas. To further address the needs of those on our Housing Choice Voucher Program (HCVP) waiting list, ICHA is implementing a Tenant-Based Rental Assistance (TBRA) initiative. This provides temporary rental support to eligible households while they await a permanent voucher, helping to prevent housing instability and homelessness. In addition, ICHA was recently awarded funding from the Housing Trust Fund of Johnson County to support the acquisition of affordable rental units in North Liberty. This effort increases the availability of high-quality, affordable housing options in a growing area with limited affordable inventory. ICHA also administers the HCVP program, including 60 Project-Based Vouchers (PBVs), which allow us to provide long-term rental assistance tied to specific units in partnership with local property owners. Alongside this, we directly manage 110 affordable and public housing units, ensuring they are well- maintained and that residents have access to secure, affordable homes. F.8. 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. The Iowa City Housing Authority (ICHA) is a work group within the City of Iowa City and does not have an identity of Printed By: Brianna Thul on 8/4/2025 11 of 13 interest with any private project owner or applicant in this proposal. F.9. Describe how you will incorporate sustainability initiatives into your project to help carry out the City’s Climate Action Plan. The Iowa City Housing Authority (ICHA) is committed to supporting the City’s Climate Action and Adaptation Plan, even when acquiring existing housing units. While the project involves the purchase of a unit rather than new development, we will prioritize properties that demonstrate high energy efficiency and environmental performance. As part of the due diligence process, we will evaluate the unit’s existing sustainability features, including insulation, HVAC efficiency, window performance, water-saving fixtures, and appliance ratings. Preference will be given to homes with ENERGY STAR-certified appliances, LED lighting, and other environmentally responsible features that reduce energy consumption and long-term operating costs. In addition, we will work to educate incoming tenants on sustainable living practices, including energy and water conservation, recycling, and alternative transportation options. By selecting efficient homes and promoting sustainable use, ICHA ensures that even through acquisition, our housing investments align with the City’s broader climate action goals and contribute to a more resilient, low- emissions community. F.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). ICHA primarily serves low- and moderate-income individuals and families who face significant barriers to stable housing. Our target populations include households experiencing or at risk of homelessness, extremely low-income families, people with disabilities, elderly individuals, and recipients of federal rental assistance programs such as Housing Choice Vouchers (HCV) and HUD-VASH for veterans. Many of these households represent historically marginalized communities, including people of color, LGBTQ individuals, and immigrants or refugees. ICHA is committed to advancing racial equity and inclusivity in all aspects of its operations. Our policies and practices are grounded in the principles of fair housing and are designed to remove systemic barriers to access. Outreach materials are available in multiple languages, and interpretation services are provided to ensure language access for non- English-speaking applicants. To expand housing opportunities for underserved populations, we advertise our available units directly to Housing Choice Voucher holders, who often face challenges finding landlords willing to accept their assistance. This proactive strategy helps ensure that voucher holders—including many people of color, people with disabilities, and other marginalized groups—are aware of and able to access available affordable units. F.11. Federal regulations require that subrecipients make every effort to use local business firms and contract with small, minority-owned, and/or women-owned businesses in the procurement process. Identify how you will take affirmative steps to meet these requirements in the proposed project. ICHA makes every effort to include local businesses and contract with small, minority-owned, and women-owned firms, within the guidelines of City of Iowa City procurement policies and HUD procurement regulations. While adhering strictly to these requirements, we actively seek opportunities to promote equitable participation in the contracting process and encourage inclusive economic development wherever feasible. Printed By: Brianna Thul on 8/4/2025 12 of 13 G. Required Documents Completed by rcarter@iowa-city.org on 7/31/2025 5:28 PM Case Id: 30110 Name: Iowa City Housing Authority - 2024 Address: *No Address Assigned G. Required Documents Please provide the following information to facilitate a full project evaluation. The list 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. Documentation  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 *Required FY2024 Annual Financial Report.pdf  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. *Required Evidence of Organizational Capacity.pdf  Evidence of Financial Commitment - Please attach commitment documentation for funding sources listed in Section C. Evidence of firm commitments is required before project agreements may be signed (e.g., letters of intent from a financial institution, loan documents identifying interest rates and terms, evidence of capital such as bank statements). *Required Letter of FInancial Commitment.pdf  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 in March 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. **No files uploaded Printed By: Brianna Thul on 8/4/2025 13 of 13  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. *Required Scope of Work.docx  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. FY26 CDBG Pro Forma.xlsx  Letters of Support - If applicable, attach letters of support for the proposed project. **No files uploaded  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. *Required Organizational Status.pdf  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. *Required UEI Proof.pdf  Board of Directors and Organizational Chart - Please include a complete list of board members. Additionally, please submit an organizational chart. *Required City Organization Chart.pdf City of Iowa City 2025 City Council.docx NDS Organizational Chart.pdf  W-9 Form - (Request for Taxpayer ID # & Certification) *Required City of Iowa City W9.pdf