HomeMy WebLinkAboutFY26 ICHA Rental Acquisition SummaryFY26 CDBG/HOME Application Summary
Application summaries are intended to be a high-level overview of key information and not a substitute for
the full submission. Please consider all materials submitted by the applicant.
Applicant Agency City of Iowa City - Iowa City Housing Authority
Eligible Activity Rental Acquisition
I. Budget and Resources
Total Estimated Project Cost $327,132
Funds Requested $212,132
Funds Leveraged $115,000
II. Feasibility and Community Impact
Primary Target Primary percent of beneficiaries targeted are between 31-50% AMI.
(100% between 31-50% AMI)
Special Populations
Other. Applicant notes their target populations are household
experiencing or at risk of homelessness, extremely low-income
families, people with disabilities, elderly individuals, and recipients of
federal assistance programs.
Encouraging Housing Distribution Applicant notes goal to acquire unit in a high opportunity area that
historically has not had many affordable housing options.
Timeline Project anticipated to be completed within the fiscal year.
Affordability/Compliance Period 20 years. Pro forma submitted indicates the project would have no
debt and would cash flow through compliance period.
III. Capacity/History
Past Projects
Applicant has successfully completed numerous projects in the past
of similar size and scale. Applicant currently owns and manages 116
rental units.
Capacity
Applicant has staff experienced in managing affordable units. Has
maintained a “High Performer” status with HUD. Financial statements
submitted with no findings noted.
Experience and Quality
Applicant is experienced with cross cutting federal regulations such
as procurement and has successfully completed projects of equal to
and larger scale without issues.
Questions and Considerations
Disclosure: Staff preparing the summary sheets work in the same department as ICHA. Part of HCDC’s
role is to help bring an outside perspective to review of the submissions.
Requested funds are below the current subsidy limits. Current 3-bedroom maximum per unit subsidy =
$327,292.80. 4-bedroom per unit subsidy = $359,263.20.
CDBG and ICHA funds would cover the full purchase at the proposed budget.
Due to the mission of ICHA, units would remain affordable post compliance period and any funds
generated from the project would be reinvested in activities and services to support affordable
housing.
Staff Calculations
Percentage of funds leveraged.
(I.3) 35% - 10 points
Primary percentage of median
income persons targeted. (II.6) Majority between 31-50% - 15 points
Experience with applicable federal
requirements. (III.12) 20 points
Bonus Points (IV) None
Application summaries are intended to be a high-level overview of key information and not a substitute for
the full submission. Please consider all materials submitted by the applicant.
Note: Risk assessments are intended to be general guidance. Staff cannot determine definitively how an applicant may
perform in the future. Risk is assessed based on the information available at the time of the submission.
Staff Risk Assessment Key
Points Risk Level
0-3 Low
4-10 Moderate
>10 High
Staff Risk Assessment
Risk Factor Staff Response Points Staff Comments
Has the applicant been subject to
recapture of funds in the last five
years?
☐ Yes (3 pts.)
☒ No (0 pts.) 0
Does the applicant have more than
one other federally funded project
currently underway?
☒ Yes (1 pts.)
☐ No (0 pts.) 1
Applicant has one active
CDBG/HOME project underway
through an annual set aside of
HOME funds to provide Tenant
Based Rental Assistance.
Has the applicant triggered the
City’s Unsuccessful and Delayed
Projects Policy in the last five
years (for reasons beyond factors
such as the COVID-19 pandemic)?
☐ Yes (2 pts.)
☒ No (0 pts.) 0
In the last five years, had the
applicant demonstrated reporting
issues for other City projects (e.g.,
late reports, incomplete reports, or
failing to submit required
reports)?
☐ Yes (1 pts.)
☒ No (0 pts.) 0
Has the applicant experienced
turnover in key staff in the last 12
months?
☐ Yes (1 pts.)
☒ No (0 pts.) 0
Does the applicant have a lack of
experience undertaking projects of
similar size and scale
successfully?
☐ Yes (3 pts.)
☒ No (0 pts.) 0
Are factors present that indicate a
concern for financial capacity
such as audit findings?
☐ Yes (3 pts.)
☒ No (0 pts.) 0
Has the applicant demonstrated
issues with long term compliance
for projects during the period of
affordability or compliance period
in the last five years?
☐ Yes (3 pts.)
☒ No (0 pts.) 0
Are other factors present that
indicate risk? Is yes, explain.
☐ Yes (1-3 pts.)
☒ No (0 pts.) 0
Total Points 1 – Low Risk