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Home My WebLink About02-17-2005 Housing & Community Development Commission AGENDA HOUSING AND COMMUNITY DEVELOPMENT COMMISSION SENIOR CENTER 28 S. Linn Street, Iowa City lower level Classroom (Use Washington Street Entrance) THURSDAY, FEBRUARY 17, 2005 6:00 P.M. 1. Call Meeting to Order 2. Approval of the January 20, 2005 Minutes 3. Public Comment of Items Not on the Agenda 4. Old Business · Unsuccessful or Delayed Projects Policy - Project update of those FY05 projects not in conformance with said policy (Blooming Garden LP and United Action for Youth) 5. Discussion Regarding Applications for FY06 Community Development Block Grant (CDBG) and HOME Investment Partnership Program (HOME) Funding -- Question/Answer Session 6. Adjourn 1 ~ 1 -~= -.....!t ----..... !~W!: ~~ ~Jl., ......... CITY OF IOWA CITY MEMORANDUM Date: February 10, 2005 From: Housing and Community Development Commission Tracy Hightshoe, Associate Planner February 17 HCDC Meeting To: Re: The February meeting is structured around the Question/Answer session with the applicants for FY06 CDBG/HOME funds. A copy of the staff report for each application is enclosed for your review. The review includes concerns or issues that need to be addressed by the applicants. Please review the applications and staff reports. Focus the time with applicants to ask questions, as there is only approximately five minutes available for each application. Upon reviewing applications, staff noticed that one page was missing from two applications. A copy of the missing pages is provided to insert in your binders. The Financial Terms for CDBG\HOME Applicants from the FY06 Applicant Guide is included in the packet. It clarifies Council's policy on financing terms for CDBG/HOME assisted projects. As with last year, if an applicant requests other financing terms, the applicant will have to seek Council approval. Ranking sheets are due March 4. We will meet March 10 & 17 to review the groupings and to make funding recommendations. These meetings will also be held at the Senior Center. There is an agenda item to provide an update on those FY05 projects not in conformance with the Unsuccessful or Delayed Projects Policy. At this time we will discuss Blooming Garden LP and United Action for Youth. Sue Dulek, Assistant City Attorney, has provided a recommendation regarding the Blooming Garden project; it is enclosed in this packet. To summarize, her recommendation is that the funds must be recaptured. She advises HCDC to make a recommendation to the City Council for the re-use of the funds. The City will proceed with all necessary actions to re-use the funds. If you have any questions about these items or will be unable to attend, please contact me at 356-5244 or by email at tracv-hiqhtshoe@iowa-citv.orq. REMINDER: Meeting is located at the Senior Center 28 S. Linn Street, Iowa City Lower level classroom (Use Washington Street Entrance) 6:00 PM MINUTES HOUSING AND COMMUNITY DEVELOPMENT COMMISSION JANUARY 20,2005 LOBBY CONFERENCE ROOM, CITY HALL PRELIMINARY Members Present: Jerry Anthony (arrived at 6:55), Erin Barnes, Lori Bears, Mark Edwards, Matthew Hayek, Brian Richman Members Absent: William Greazel, Rita Marcus, Jayne Sandler Staff Present: Tracy Hightshoe, Steve Long Public Present: NONE CALL MEETING TO ORDER Chairperson Hayek called the meeting to order at 6:47 APPROVAL OF THE MINUTES FROM NOVEMBER 18. 2004 Motion: Richman moved to approve the November 18, 2004 minutes as submitted. Barnes seconded the motion. Motion passed 5-0. PUBLIC COMMENT OF ITEMS NOT ON THE AGENDA NONE OLD BUSINESS Unsuccessful or Delaved Proiects Policv Discussion regarding United Action for Youth. Hightshoe stated UAY has not entered an agreement yet due to historical considerations that prevents the City form entering an agreement. The State Historical Preservation Office (SHPO) must review possible effects to historic properties as part of the Section 106 process for each proposed project. The SHPO cited concerns regarding the window replacements proposed by UAY. UAY will work with a Dubuque company to replace the existing windows. UAY will submit the new information to the SHPO and request SHPO's concurrence with the proposed windows so that they may proceed with the project. The discussion was tabled for the February meeting. Discussion regarding Blooming Garden. Hightshoe stated Blooming Garden had not entered an Agreement with the City as sites have not been identified. Hightshoe stated staff will also need to confirm if the applicant applied for Low Income Housing Tax Credits (LlHTCs) as the policy requires the applicant to apply for other funds (as cited in applicant HOME/CDBG application) in the first available application period. Long passed out a letter submitted by Robert Burns addressed to the Commission. Upon review of the letter, Hayek proposed that staff get an opinion from the legal department to determine how to proceed. REVIEW OF THE FY06 ALLOCATION PROCESS Long said that there were two applicant workshops. He said that over 30 people attended the workshops. He added that there was discussion, constructive criticism, and that some good suggestions were made. He said that it would be helpful to have the input of persons who have applied in the past when reviewing next year's applications. Long said that in the past the Commission has taken tours of projects that interested them. He mentioned that there is usually around eight project sites (four sites each day for two days) that would be visited if there was sufficient interest. Feb. 17 is the question/answer session with applicants. This will be an important meeting because it would be the time to ask questions or express concerns to applicants before submitting their ranking sheets and allocation recommendations. Ranking sheets will be mailed with the applications. Ranking Housing and Community Development Commission Minutes January 20, 2005 Page 2 forms will be due to staff on March 4th. Members are encouraged to have the ranking sheets out during the applicant Q/A session. After staff receives the ranking/allocation preliminary recommendations, staff will put together various spreadsheets to summarize the data. Long stated their names would be on the data next to their recommendations, and these sheets will be public information. Sample spreadsheets from last year were reviewed. Included were the ranking worksheet (with high, low and average score), average allocation worksheet, and the consensus worksheet. The consensus worksheet presents whether the project was fully funded, partially funded, or no funding. Hightshoe said that the staff would go through the applications and provide a 2 page staff report for each application. She said that a copy of this report is also sent to the applicant so that everyone is informed of staff concerns. The staff reports will be mailed to HCDC members with the Feb.17 HCDC packet. March 10 the commission will meet to review the groupings, spreadsheets and discuss differences in recommended scoring, allocations, etc. The commission may ask agency representatives questions if they are in attendance. Commission members are free to change their scores or allocations and return to staff for revised scores and allocations to be handed out at the March 17 meeting. At the March 17 meeting, the final allocation recommendation will be made that is forwarded to the Council for review and approval. Long said that here would be a sub-commission formed which would write a memo to the Council to justify the recommendations. The justifications are due to Council March 24. He added that on May 3rd everything goes to the City Council for approval. PROFORMA BASICS Hightshoe said that each year all rental housing applicants are required to provide a proforma with their application. A proforma is used to evaluate rental housing projects. She said that it compares each rental housing project and reviews operating expenses, fees, rent revenues, etc. Hightshoe stated that the City reviews each project to determine if the amount of public subsidy is appropriate for the project. Staff will review if expenses are reasonable, if the rents comply with HOME provisions, etc. Staff will look at the debt coverage ratio, DCR, (net operating income/debt service). If under 1.0, the project does not generate enough income to service its debt. Strong debt coverage is over 1 .15. Hightshoe stated if the project receives private financing a lender may require a higher debt coverage ratio before the lender will provide financing. Local institutions may require a 1.2 or 1.25 DCR. The Bank-Ability Guide was also in this packet to help provide an estimate of general housing project expenses. Member asked if staff will assist members go through the project proforma. Hightshoe mentioned that the staff would go over the Proforma and if expenses, or developer's fees, for example, are too high, that staff would express their concern. Hightshoe stated that applicants are required to complete the proformas so that staff/commission members can determine if based on their projections, which should be reasonable, that the project is viable and will not need future subsidy for replacement reserves, repairs, etc. HOME rules do not allow additional allocations after the first year during the project's HUD required period of affordability, which could be up to 20 years. She added that the second part of the Proforma concerns taxes. Hightshoe mentioned that non-profit organizations usually do not pay taxes, thus the second page is mostly for for-profit entities. Staff will also review the return on investment. MONITORING REPORTS Hightshoe said that Sandler had emailed her monitoring reports. Goodwill Industries Hightshoe said that they were allocated $8,000, and they have spent $4,000 to date. Upon their last report, cars have been provided to 15 households. Housing and Community Development Commission Minutes January 20, 2005 Page 3 DVIP- Securitv camera Hightshoe said that the camera is currently in the process of installation, and is expected to be finished by the following week. She said that the contractors that installed the camera would donate half of the labor. Old Brick Barnes said that they did not make much progress on the bathroom because they depend a lot on volunteer hours. She said that they put a bid on materials and are focused on the wheelchair lift currently. She said that they do need to follow the Historic Preservation guidelines, and that also slows the process. Greater Iowa Citv HousinQ Fellowship Barnes said that the persons that are eligible for buying houses are those that qualify to get a mortgage, and have incomes below 80% of the AMI. She added that currently the Greater Iowa City Housing Fellowship serves mostly white families. As far as ethnic minorities, she said that they serve one Bosnian and one Asian family. They have one household with a person with disabilities as the head of the household. She added that buyers are selected on a first come first served basis. Shelter House Richman said that the outreach coordinator position is more concerned with the STAR services. He said that they provide resume building, online job search, referrals, and employment services. Shelter House administers the STAR program in Iowa City. Adiournment Anthony moved to adjourn. Barnes seconded. The meeting adjourned at 7:45 PM. s:/pcd/minutes/hcdc/2005/0 1-20-05 .doc 1 ~ 1 -~'3. -~Mo ;t~w~~ '"-...... ~..., .... - C I T Y 0 F IOWA C I T Y MEMORANDUM DATE: TO: FROM: RE: 02/09/05 HOUSING AND COMMUNIVITY DEVELO~NT COMMISSION SUSAN DULEK, ASST. CITY A TTORNEY~ BLOOMING GARDEN/HOME FUNDS You requested my opinion on the status of the allocation of FY05 HOME funds to Blooming Garden IHA Limited Partnership ("Blooming Garden"). On May 4,2004 in Resolution No. 04-127, the City Council, as recommended by HCDC, awarded $200,000 in FY05 HOME funds to Blooming Garden for land acquisition to support the development of affordable housing. The FY05 allocation included the provision that the City must approve the location of the lots due to "scattered site" concerns. Because the City Council did not approve the location of the lots identified by Blooming Garden, the City has never entered into an agreement with Blooming Garden for the use of the funds and has never disbursed any funds. On March 2, 2004, in Resolution No. 04-68, the City Council adopted an "Unsuccessful or Delayed Projects Policy," a copy of which is attached for your reference. The policy was in effect when Council made the FY05 allocations. Blooming Garden is not in compliance with said policy. Specifically, under Paragraph 1, Blooming Garden did not enter into a formal agreement with the CiW by September 30, and under Paragraph 3, Blooming Garden did not apply for other funds in the first available application period. In a letter dated December 8, 2004, the City requested verification from Blooming Garden that it had applied for Low Income Housing Tax Credits as required by said policy. Blooming Garden did not provide such verification. As a result, the funds must be recaptured. Because funds have not been disbursed, Blooming Garden does not have to reimburse the City any money, but rather the City will no longer have $200,000 in FY05 HOME funds set aside, so to speak, for Blooming Garden. HCDC should make a recommendation to City Council for the re-use of the funds. Last, in a letter to HCDC dated January 20, 2005, Robert P. Burns contends that the City has violated 24 C.F.R. 92.202(a). The City Attorney's office denies this allegation. I hope that you find this memorandum helpful. Copy to: Steven Nasby Stephen Long Tracy Hightshoe Housing and Community Development Commission Unsuccessful or Delayed Projects Policy Adopted by City Council March 2, 2004 in Resolution 04-68 From time to time there may be Community Development Block Grant (CDBG) and/or HOME Investment Partnership Program (HOME) projects that do not meet the anticipated schedule for implementation as presented to the Housing and Community Development Commission (HCDC). These circumstances may be due to unforeseen events (e.g. unfunded appltcations for other financing). HCDC recognizes the need to utilize CDBG, HOME and other funding as effectively and efficiently as possible to meet the needs of low-moderate income household for housing, jobs and selVices within Iowa City. To assist HCDC in evaluating a project's status and ability to proceed the following policy is hereby adopted to begin with Fiscal Year '04 projects beginning July 1, 2003: 1. All CDBG and HOME projects will have entered into a formal agreement with the City of Iowa City for the utilization of federal funds by September 30 each year. Should a recipient fail to meet this threshold, the project will be reviewed by HCDC to evaluate if extenuating - circumstances exist. If extenuating circumstances exist and it is anticipated the project will proceed, a new timeline will be established ·for the completion of the project. If circumstances do not warrant an extension of time, HCDC may recommend the recapture and re-use of the funds to the City Council. 2. All CDBG projects (except applicants for UHTCs) will have expended a minimum of fifty percent (50%) of the assistance provided for the proposed project by March 15 each year. This' provides the recipient with approximately 255 days following the start of the fiscal year to reach this threshold for CDBG projects. All HOME projects will expend their funds on a timely basis per the applicable HOME regulation. Should a recipient fail to meet these thresholds, all unexpended CDBG/HOME funding. will be recaptúred by the City of Iowa City and recommendations be made by the HCDC for re":use of the funds or HCDC may allow the recipient to retain the funds for the previously approved project. 3. If housing projects are applying for other funds through various state or federal agencies, the recipient must apply for those funds in the first available application period offered. Should a recipient fail to meet this application threshold, all CDBG/HOME funding will be recaptured by the City of Iowa City and recommendations be made by the HCDC for re-use of the funds. 4. Should a recipient be unsuccessful in obtaining the funds listed in the application in the application round immediately·following the allocation of local CDBG\HOME funds, and· the project-will not be able to proceed without the aforementioned funds, all CDBG/HOME funds will be recaptured by the City of Iowa City and recommendations be made by the HCDC for re-use of the funds or HCDC may allow the recipient to retain the funds for the previously approved project. If the project is unsuccessful in obtaining the required funds listed in the application after two consecutive funding rounds following the allocation of local CDBG/HOME funds, the City of Iowa City will recapture all CDBG/HOME funds. . FY06 Financial Terms for CDBG\HOME Applicants The U.S. Department of Housing and Urban Development (HUD) is encouraging both grantees (cities, counties and states) and applicants (subrecipients such as yourselves) to maximize private investment. HUD has set a national goal of leveraging three private dollars for each public dollar invested in a project. Although this is not a program requirement we are asking you, as applicants, to leverage private funding, volunteers and in-kind contributions whenever possible and to include this information on your application. Both volunteers and in-kind donations are very important. These contributions are worth points in the ranking sheets and are included in HCDC's evaluation of your application. Applicants can apply for grants and/or loans from the CDBG and HOME programs. All applications received by the due date will be evaluated and ranked by HCDC. A copy of the ranking sheet is attached herein. HCDC has recommended the following financial assistance format for CDBG and HOME applications. · Housing activities by a for-profit organization will be eligible for an amortized loan for the period of HOME affordability up to 30 years. The interest rate will be prime rate (as of January 1, 2005) minus two points. · Housing activities by a non-profit organization will be eligible for a 0% amortized loan for the period of HOME affordability up to 30 years. Each housing project, except minor home repairs, funded with CDBG and/or HOME funds must appraise to value by an independent third party appraiser. If the project costs exceed the appraised value; the applicant/owner must repay the City the difference between the appraised value and the total project cosç up to 100% of the City's contribution. · Public Facilities activities undertaken by non-profit organizations will be eligible for a Conditional Occupancy Loan (no interest or repayments for 99 years or as long as the applicant operates the facility for the use specified in the CDBG Agreement). Upon termination of the Agreement for cause or convenience, 100% of the original CDBG award will be repaid. · Public Service activities will be funded as grants. ** All financial terms are subject to change as directed by the City Council ** If an applicant requests different terms that those found above, the applicant must submit a written request directly to the City Council prior to April 25, 2005. Lt) "'t 0 e oí3 ,b 0 oocu~ .¡!¡ "'8 ~ ; v 8 ..... 0 j~~g~Jj~ .¡..¡Lt) U t::'l. ~ c:J "C'J :=s ~ ~ " ...... 00 ~ OO:.E Z>-''' v.lJO"° e'" ;:s ~ ~..q- ~ 0 H ç e í31.E ~ ~ 8 ~ v .S ~.S ~ ~~'"O...... o:=Ssû 8 . :os v '" :::s j 0 ~ o 00 -~ZQ~~~~ o cu cu ~;:So Z~§~ C'f')...... 0 ~ ¡:Qv~~~~",o .-.¡..¡ >. ~ 0::::= ~~:=s .. 0 0 ~ ~g 000& cu a ~ ~ cu \OC'J_ ¡s "'i!"'~~~ 00...0 ~ ~ :=s ...0 ......¡::oo 6- - .~ 0 ~ J5 ~ cu ~ cu_ ~ cu ~z - cu c:J ~ ~ u '" MEMORANDUM DATE: February 9, 2005 TO: City Council City Manager FROM: Steven Nasby, Community and Economic Development Coordinator RE: Community Development Block Grant (CDBG) Program Changes Proposed On February 3, 2005, the U. S Department of Commerce officially acknowledged that the economic development and community development programs (e.g., CDBG and Brownfields) operated by the U.S. Department of Housing and Urban Development (HUD) are proposed to be moved to the Commerce Department. This was confirmed with this week's release of the Budget of the United States Government - Fiscal Year 2006. The President's FY06 Budget proposes to consolidate 18 existing economic and community development programs from 5 different Federal agencies (HUD, Agriculture, EDA, HHS, and Treasury) into one single program (see attached list). This consolidation of programs is entitled "Strengthening America's Community's Initiative". The Commerce Department states that the President is moving in this direction because economic growth is not being felt throughout the country and that the existing economic and community development programs are fragmented, duplicative and do not show results. The Budget of the United States Government - Fiscal Year 2006 proposes to fund this single program at $3.71 billion in FY06. As such, we anticipate sharp decreases within each of the 18 existing programs as CDBG alone was funded at $4.7 billion ($4.1 billion in formula funding) in FY05. It is widely anticipated that the cut to CDBG will be between 40% - 50%. In addition to the reduction in funding, the remaining monies may be allocated or targeted to what the administration is referring to as the most economically distressed communities. The Office of Management and Budget (OMB) and the Budget of the United States Government - Fiscal Year 2006 have stated the following: ''Many communities no longer in need of assistance continue to receive funding, undermining the purpose of some programs - to help distressed communities. For example, the COSG program at HUD was created to serve distressed communities, but 38 percent of the funds currently goes to communities and States with less poverty than the national average. " This assertion is questioned by organizations such as the National Community Development Association (NCDA) and U.S. Conference of Mayors. They state that CDBG was never created to be an anti-poverty program. The impact on Iowa City of targeting these funds to distressed communities may not be known for sometime as the criteria used by the Department of Commerce to identify these areas has not been released. February 9, 2005 Page 2 The idea to consolidate these 18 programs into one program is also based on the Office of Management and Budget's review of federal programs and that OMB identified overlap, little accountability, and no measure of achievement of long term success in each of these program areas. States and CDBG Entitlement communities believe that CDBG is very results-oriented and HUD has a great deal of accomplishment data on the program. Many cities and states have been working with their respective national organizations, HUD and OMB to develop performance measures for the program. The Commerce Department plans to develop enabling legislation by the Summer to send to Congress to enact this proposal. Congress' pursuit of such a major reorganization and consolidation effort will affect numerous authorizing committees, each of which will want to hold hearings on this effort before any legislation is enacted. As such, the timing for accomplishing this task is to be determined. Over the last five years, (City FYOO - City FY05) Iowa City has already seen a reduction in CDBG funding of 18.4% or $172,000. If the proposed 40% - 50% funding cuts were enacted, independent of the move from HUD to the Commerce Department, the impact on Iowa City's CDBG program would be profound. We will continue to update you on this matter as new information becomes available. In the upcoming weeks extensive communications with our federal elected officials will be important to let them know how CDBG is being used in our community and the devastating impacts a 40% - 50% reduction in funding would be to the community and especially the low-moderate income households that depend upon CDBG funded programs. Cc: Karin Franklin, Director of Planning and Community Development Housing and Community Development Commission Attachment Programs to be Consolidated Under the President's Strengthening America's Community's Initiative Housing and Urban Development CDBG Formula Grants National Community Development Initiative CDBG Set-Asides Brownfields Economic Development Initiative Rural Housing and Economic Development Urban Empowerment Zones Round II Grants Community Development Loan Guarantees Commerce Economic Development Administration Agriculture Rural Business Enterprise Grants Rural Business Opportunity Grants Economic Impact Grants Rural Empowerment Zones (EZ)/Enterprise Communities (Ee) Treasury Community Development Financial Institutions (CDFI) Program Bank Enterprise Award (BEA-) Program CDFI Native Initiatives Health and Human Services Community Services Block Grant Urban and Rural Community and Economic Development Rural Community Facilities press-citizen. com I Staff Editorials . . °F!!!1'y~r!mZEN Page 1 of2 Find deals at stores nearYOll newsll sportsll featuresll opinion1 goiowacity I classified~ I obitsll customersll community I shop ~'. oporftnefùs.com ~ News via RSS: I~Utl Local news I:UJI Hawkeyes Em! Entertainment Thursday, January 27,2005 Don't slash but reform HUD funds By Iowa City Press-Citizen Editorial Board Significant cuts tò the Department of Housing and Urban Development being pondered by the White House would devastate Iowa City's efforts to address its affordable housing and homeless problem. Earlier this month, the Washington Post learn-ed that the administration wants to shrink and dismantle the department. A December memo from the White House Office of Management and Budget to HUD outlines the proposed cuts: the Commun-ity Development Block Grant, used to support clinics, recreation centers, day-care facilities, literacy programs and housing development in urban areas, would lose about half of its funding and be shifted to the Commerce and Labor Department; the Rural Housing and Ec-onomic Development would lose all of its $23.7 million in funding; and the Brownfields Economic Development Initiative, which Coralville has drawn upon to rejuvenate its Old Industrial Park, would be shifted to Com-merce and Labor. Significant national problem The issue: . A memo indicates the White House plans to propose reducing funding for affordable housing programs. We suggest · Reform aimed at holistically addressing interdependent parts of the housing problem, not cuts, is warranted. What do you think? · How should the affordable housing issue be addressed? . Send comments via e-mail to opinion@ press-citizen.com. Unfortunately, that's the wrong answer to addressing our nation's affordable housing and homeless problem. Washington, D.C.-based National Coalition for the Homeless notes that 14.4 million Americans face "critical housing needs." Indeed, even a small state such as Connecticut estimates it needs 10,000 housing units built during the next decade to get all homeless off its streets. The difficulties in addressing this problem likely will be exacerbated in the months ahead as housing and property values continue to soar. Meanwhile, the agricultural crisis across the Great Plains shows no signs of abating as family farms continue to fold and small towns see their Main Streets board up. Of greatest concern to Iowa City is the Com-munity Development Block Grant program, which sends about $2 million here annually. If half the program were cut, Iowa City could expèct to see a proportionately similar reduction in funding. The Neighborhood Centers of Johnson County, Crisis Center and MECCA all rely to some degree on the program. But such a cut goes much deeper than tighter belts and no playground at low-income housing units. Many federal grants lead to additional funds from private donors. After HUD recently granted the Neighborhood Centers $300,000 to renovate Pheasant Ridge and the Broadway area community centers, private parties satisfied that the plan had http://www.press-citizen.comlapps/pbcs.dll/artic1e? AID=/20050 127/0PINION03/50 1270303/1021 . REALTOR US1'ED 101 SEll FASTI Search our! Isearch site 1/27/2005 press-citizen. com I Staff Editorials EmI Sports (non- Hawkeye) What is RSS? c-} ~ fA Page 2 of2 met stringent standards more than doubled the amount in donations. Indeed, cutting federal funds carries much higher dollar losses here and in almost every other community. The White House is considering the cuts to eliminate waste and to consolidate redundant as well as ineffective programs. That's a worthy goal; certainly such problems exist to some degree in any bureaucracy and always must be addressed. Yet, the White House memo merely calls for axing HUD's community funding and rolling it into Commerce and Labor, which has no similar programs aimed at low-income housing. Address housing holistically Reform arguably is needed to make the HUD programs more effective; as homelessness and low-income housing is inextricably linked to poverty and unemployment, and with homelessness often to substance abuse and mental illness, many housing advocates would agree. Consid-ering that, reform addressing these issues holistically rather than in isolation would go a long way toward ending several problems -- and hence in years ahead also the need to spend billions annually. We urge Rep. Jim Leach to spend some of his political capital, as a moderate conservative with congressional seniority and White House connections, to spearhead such positive reform. He should enjoy the administration's support in doing so -- the president has pledged to reduce the number of homeless by 10 percent annually, after all. President Bush will deliver his budget to Congress on Feb. 7. He shouldn't include the HUD proposal outlined in the budget memo in his proposal. Certainly we agree with the president that the nation has limited dollars to spend and must be fiscally sound. That means establishing priorities, however. Clearly shelter, among the most basic of human needs, ought to be among those priorities. Let us know what you think of this story... 1&5!!f!!! are >1 Winter weather : ""~Y¡¡\t;~~" got you down? 'fi ~I Travel mH~I!IIi1IK:i!J!j!:¡¡;"-'=~Bi!IIIiiii: "'J&~" '" ""'" *'" ~. ~ _ _ ~ Copyright 1999-2004 Iowa City Press-Citizen Use of this site signifies your agreement to the terms of service (updated 2/1/2003) contact us at online@press-citizen.com tUSA wrn<£ND (;{)f'fJ 4 http://www.press-citizen.comlapps/pbcs.dll/ article? AID=120050 127 IOPINI ON031 501270303/1021 1/2712005 Daily Iowan Page 1 of 1 Daily Iowan - Metro Issue: 1/21/05 Proposed HUD cuts could hurt local services By Nick Petersen - The Daily Iowan Funds that helped the Neighborhood Centers of Johnson County replace windows that wouldn't open and build a playground for children in low-income families would be slashed in half if White House plans reported in the Washington Post come to fruition. The newspaper reported Jan. 14 - citing leaked documents - that a federal grant program administered through the Department of Housing and Urban Development, which made almost $2 million available for Iowa City's need-based services last year, would be downsized to fulfill President Bush's promise to "eliminate or consolidate what he sees as duplicative or ineffective programs." "They make grants for things that are not that sexy, but the grants are important for the programs they are funding," said Brian Loring, the executive director of Neighborhood Centers of Johnson County. David Arbogast, a member of the Johnson County Republican Central Committee, said that while he can understand Bush's attempts to deflate "bloated bureaucracies," he said this aspect of Bush's proposed budget isn't likely to survive congressional debate. "In my experience, very few government programs ever get eliminated," he said. According to the article, President Bush "will seek to drastically shrink the Department of Housing and Urban Development's $8 billion community branch," which, the article continues, could cut the Community Development Block Grant program as much as 50 percent. This would likely lead to a proportional cut in the city's portion of the funds, said. Linda Severson, the human- services coordinator for the Johnson County Council of Governments. Loring said the federal funds are crucial to the Neighborhood Centers of Johnson County and others, such as the Crisis Center and MECCA, because they lead to more donations. . "Community Development Block Grant money is the first money that goes into these projects," he said. "It makes it easier for the second funder to come on board." He said his organization received approximately $300,000 to renovate community centers in Pheasant Ridge and in the Broadway area over two years. It used the grants to leverage another $600,000 to $700,000 from private donors. "It's one thing to lose that $300,000," Loring said. "It's another to lose $600,000 to $700,000." E-mail DI reporter Nick Petersen at: nicholas-pete rsen@uiowa.edu http://www.dailyiowan.comlglobal_user_elements/printpage.cfin?storyid=83 7662 1/21/2005 FEB. 9.200S 3:41PM APPLIED SYSTEMS NO.0S2 P.2 Eagles' flíght, Inc. r.O-ßo~9S2. lowaÜt9,(A ,u.<t+ (~1.9)"7-8ó18 (:~19)"'7-ð628fax Pebruary 9, 2005 City ofIowa City 410 East Washington Iowa City, IA 52240 To Whom It May Concern: Please be advised that Ranfl~l1's Blessing Child Development Center, a program of Eagle's Flight, Inc., officially closed on FridaYI January 14,2005. Hannah's Blessing CDC was located at 1516 Sheridan Avenue in Iowa City, This property was property was purchased and rehabbed with Community Development Block Grant funds. I can be reached at 319-337-8628 should you require any additional information. Respectfully submitted, ~..j{¡~ Danielle V. Thompson Eagles' Fligh~ Inc. Treasurer f' CDBG: $ Total Loan Requested: $ 5. Provide a brief description of the proposed project (please limit response to a paragraph). The Iowa City Housing Authority will operate a Tenant Based Rental Assistance (TBRA) program. We will target low-Income elderly and/or disabled families under 50% of the median Income level for Johnson County, Iowa. The Housing Authority will provide direct housing assistance payments to landlords on behalf of eligible participants. With Housing authority approval, utility payments may be provided eligible families. The Housing Authority intends to seNe 30 families per year over a 2-year timeframe (total of 60 families). Section 1 - Need/Priority 6. Tell us why this project is needed (include information from market studies or other supporting documentation that identifies the need for this type of housing for Iowa City's need) and how it will fill a gap in the City's housing market. On December 17, 2004, The Federal Department of Housing and Urban Development (HUD) transmitted Housing Choice Voucher (HCV) funding provisions resulting from the Consolidated Appropriations Act, FY 2005 (PL 108-447). The funding provisions outlined in HUD's FMC Memo 04-043 are not sufficient for the Iowa City Housing Authority to lease-up to our HUD approved baseline of 1,213 Housing Choice Vouchers. Since our projected lease-up level for the HCV program is 1,183 vouchers, operating a TBRA program will mitigate this shortfall and allow the Housing Authority to serve an additional 30 families per year. 7. Describe how the proposed project addresses the priorities, strategies and goals cited in the CITY STEPS Plan, the Maxfield Housing Market Analysis and/or "Assessing Iowa's Housing Needs" (August 2000) by Professor Heather McDonald. (Please specify the one most applicable priority need and priority need level, as shown in CITY STEPS 2006-2010, Section IV. Strategic Plan). The Executive Summary of "Assessing Iowa's Housing Needs" contains the following statements: ~ "Given the ample supply of subsidized elderly housing in most communities, a total of only 1,378 elderly extremely low income renters have a housing problem;" ~ "Among elderly very low income renters, we estimate that 428 have a housing problem:" ~ "For disabled individuals who are already receiving supportive services, housing assistance could improve their ability to live outside of an institutional or group home setting;" As of January 13, 2005, there are 2,091 families on the HCV waiting list; 107 (5%) are elderly and 611 (29%) are disabled. Of the elderly applicants, 81 (76%) have income below 30% of the median family income for Johnson County, Iowa. Of the d!sabled applicants, 558 (91%) have income below 30% of the median family income for Johnson County, Iowa Assisting 30 families per year will have a positive, albeit FY06 Housing Application -,qo.... ppdcdbglicha home fund applicatlon.doc week 70-80 Agape guests are seated at tables and served a nutritious breakfast by volunteers. Each Thursday, Old Brick offers social service or other non-profit groups a place to meet, free of charge. Old Brick provides office space to non-proñt and human service agencies at a below-market rate so that these organizations have a convenient base from which to serve the population of Iowa City. Old Brick's proximity to the University also allows opportunities for students and faculty to gather for classes, special events, and non-alcoholic dances that provide a safe alternative to the party night life. 18. List goal(s) of this specific project. In addition, please indicate the population to bEt ~ArvAd by the proposed project according to the income categories shown in the Applicant Guide. (Please Note: If this application Is funded, the infonnatlon in this tabla will be used as income targeting for the CDBG Agreement). Six goals will be achieved in the repainting project: pre-cleaning, mortar removal, mortar replacement, brick replacement, ñnal cleaning of masonry, and stone repair. Nine areas (listed below) have been identiñed for work: 1. West Elevation N. W. Section, Previous Pointed With Portland Mortar 2. West Elevation, S. W Section 3. Front South Elevation, Sides & Tower Section to Base of Tower 4. Tower, All (4) Sides 5. East Elevation 6. North Elevation, Main Building & Chimney 7. Back Addition, North Elevation 8. Back Addition, East Elevation 9. Main Entrance Stone Steps & Landing Because Old Brick serves such a wide range of people in the community, it is not possible to specifically identify the percentage of Old Brick's users that fall into the income categories listed below. . Total Percent LMI persons (a) persons (b) persons (c) persons (d) persons (e) persons (f) (a + b + c) + f) Number between 0 - 30% median income Number between 31 - 50% median income Number between 51 - 80% median income Number between 80 - 100% median income Number over 100% median income c20~~ CITY OF IOWA CITY FY06 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Extend the Dream Foundation - Economic Development, Page 1 Applicant Contact: Tom Walz 319-339-0401 Project Address: 912 - 2nd Avenue Activity Type: Micro-enterprise Assistance CITY STEPS Priority: High CITY STEPS Goal Achieved: Provide Employment Support Services (page 123 - 124) Beneficiaries: 0-30% mfi 31-50% mfi 60% 40% Amount Requested: $147,000 Loan or Grant: Grant Requested Repayment Terms: Grant Requested (applicant must seek approval from the City Council) Total Cost Per Person/Household: $5,880/person Capital improvement project that will benefit individuals over a 15-year useful life expectancy. Total cost per person over a 15- year period: $450.08. Percent of Project Publicly Funded: 87% leveraging City CDBG\HOME Funds: $0.15 in other funds for each HOME dollar requested Property Taxes: Tax-exempt STAFF ANALYSIS Documentation of Project Need Extend the Dream Foundation is requesting funds to purchase a mixed-use building at 912 - 2nd Avenue that contains 1,650 feet of commercial space. The commercial space would be used to provide storefronts to businesses that are ready to incubate from the micro-enterprise activity undertaken by Extend the Dream Foundation, which is targeted to persons with disabilities. Extend the Dream Foundation anticipates the need for the additonal space to accommodate two businesses and to launch an e-commerce training program operated by Extend the Dream Foundation. If the commercial space were not fully utilized for these businesses it could be leased on the private market Project Budget Discussion This proposed project is comprised to two parts (housing and economic development). Applications for both parts are currently under consideration by the HCDC. To be successful, the proposed project will need to be substantially financed by both applications. Extend the Dream Foundation has also submitted an application for this activity to the Council ED Committee for their consideration. Private funds will finance about 13% of this project No private funds or mortgage is shown for the acquisition. The acquisition cost for the commercial portion of the property is estimated to be $147,000, with total a total project cost of $168,780. Private funds are to be used for renovations and the realtor fee (part of which is being donated). Project Coordination with Existing Services\Activities Coordination with other Extend the Dream Services is proposed. Use or referrals to existing services was not described within the application. Applicant History or Capacity to Successfully Complete the Proposed Project Extend the Dream Foundation has demonstrated the capacity to successfully complete a CDBG funded project focusing on micro-enterprise development and training. Summary of Items to be Addressed 1) No operational budget was submitted. Has the applicant researched the long-term feasiblity of the project? 2) Have other possible funding sources been researched? Such as State small business development funds or a private mortgage? 3) The application indicates that the building is being sold below market value. Can this number be documented for additional leverage? Or a loan obtained on this equity? 4) Could the project proceed with partial funding? At what level does the project become unfeasible? CITY OF IOWA CITY FY06 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: City of Iowa City - Downpayment Assistance Program Page 14 Applicant Contact: Steve Nasby 356.5248 Project Address: Citywide Activity Type: Homeownership CITY STEPS Priority: Low - Ownership CITY STEPS Goal Achieved: IV B. Affordable Housing Acquisition of Existing Units Assistance to Homebuyers to Purchase Existing Housing (P-102) Beneficiaries: 51 - 80% mfi 100% Amount Requested: $250,000 loan or Grant: Loan Repayment Terms: Applicant is requesting a deferred payment loan to be repaid by the homeowner at the time of sale or at the end of 20 years. Applicant must seek Council approval for request. Total Cost Per Person/Household: $151,600 per household and $33,689 per person Percent of Project Publicly Funded: 10.11 % Leveraging City CDBG\HOME Funds: $10.93 in other funds for each CDBG/HOME dollar requested Property Taxes: Homeowners will pay property taxes STAFF ANALYSIS Documentation of Project Need Homeownership is a strategy to help low-moderate income households gain self- sufficiency, stabilize families & neighborhoods and to build wealth. Iowa City has a homeownership rate of 46%, compared to 68% for the State of Iowa and 66% for the nation as a whole. CITY STEPS encourages the use of down payment assistance for the purchase of existing housing units as a way to provide affordable housing to low- moderate income households. Project Budget Discussion The project budget shows that 20 units will be assisted with an average of $15,000 in down payment assistance and the homebuyer contributes around $1,500 towards the purchase of a home valued at around $151,500. The applicant is proposing to contribute up to 10% of the purchase price for down payment assistance. Project Coordination with Existing Services\Activities The City has a long history of coordinating with a wide variety of non-profits, businesses and community groups. For this project, the City is going to partner with a private lender to administer the program and also meet with realtors and lenders to promote the program. Applicant History or Capacity to Successfully Complete the Proposed Project City staff is responsible for the annual administration of the entire CDSG and HOME program. In addition, staff has operated a number of downpayment assistance programs in prior years. . Summary of Items to be Addressed 1. Status of private lender administrator? 2. Status of in-kind loan processing donation? 3. Any documentation that shows that the number of available three-bedroom homes built post 1977 that fall within the desired price range and income range? 4. $10,000 to $20,000 per household is substantially higher than previous City funded downpayment programs, please discuss. 5. Will the second mortgage for up to 20 years be a barrier to the program? CITY OF IOWA CITY FY06 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Extend the Dream Foundation - Permanent Rental Housing, Page 21 Applicant Contact: Tom Walz 319-339-0401 Project Address: 912 - 2nd Avenue Activity Type: Affordable Rental Housing CITY STEPS Priority: High CITY STEPS Goal Achieved: Acquisition of Existing Units (page 102) Beneficiaries: 0-30% mfi 31-50% mfi 33% 67% Amount Requested: $98,000 loan or Grant: Loan Repayment Terms: Conditional Occupancy Loan Requested (applicant must seek approval from the City Council as policy is for a 0% loan for a maximum term of 30 years) Total Cost Per Person/Household: $45,542/person Capital improvement project that will benefit individuals over a 15-year useful life expectancy. Total cost per person over a 15- year period: $3,036. Percent of Project Publicly Funded: 72% Leveraging City CDBG\HOME Funds: $0.72 in other funds for each HOME dollar requested Property Taxes: Tax-exempt STAFF ANALYSIS Documentation of Project Need Extend the Dream Foundation is requesting funds to purchase a mixed-use building at 912 - 2nd Avenue that contains three one-bedroom rental units. All three units would be targeted to persons with disabilities. If possible, the housing component of this project will tie into the economic development\job training activities proposed by Extend the Dream on the first floor of the building. The needs of housing assistance for persons with disabilities is evident in the June 30, 2004 data from the ICHA that shows approximately 52% of the Section 8 participants were elderly or reported a disability. Project Budget Discussion This proposed project is comprised of two parts (housing and economic development). Applications for both parts are currently under consideration by the HCDC. To be successful, the proposed project will need to be substantially financed by both applications. Private funds will finance about 28% of this project. The acquisition cost for the housing portion of the property is estimated to be $98,000, with total a total project cost of $136,625. The cost per bedroom is $45,542. The required proforma was not submitted so we are unable to calculate the feasibility of this project. Project Coordination with Existing Services\Activities Coordination with other Extend the Dream Services is proposed. Use of referrals to existing services was not described within the application. Applicant History or Capacity to Successfully Complete the Proposed Project Extend the Dream Foundation has demonstrated the capacity to successfully complete a CDBG funded project focusing on micro-enterprise development and training. Extend the Dream Foundation has not undertaken housing projects; however, they have assisted some of their clients with a home purchase. We would encourage Extend the Dream Foundation to seek partnerships with a property manager with experience in Section 8, HOME or other federally funded programs. Summary of Items to be Addressed 1) No proforma was submitted. Operational costs need to be provided. 2) Rent was stated as being approximately 10% below the existing $400 per month lease rate. How long will is the proposed affordability period? Are these rents sustainable? 3) Have other possible funding sources been researched? Such as State HOME funds or a private mortgage? 4) Does this project anticipate Section 8 rental assistance? 5) Units to be purchased appear to be pre-1978, as such additional expenses related to Lead Based Paint may be applicable. Has the property been inspected by a Certified Lead Paint Inspector? 6) In a pre-1978 building on-going lead based paint inspections and maintenance is required. How will this requirement be met? 7) Will the housing units be accessible to persons with mobility disabilities? CITY OF IOWA CITY FY06 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Greater Iowa City Housing Fellowship - CL TOwner Occupied Housing Page 31 Applicant Contact: Maryann Dennis 358.9212 Project Address: Citywide Activity Type: Housing CITY STEPS Priority: Medium - Small related households cost burden >30 and 50% CITY STEPS Goal Achieved: IV B. Affordable Housing Production of New Units (Page 101) Beneficiaries: 51 - 80% LMI 100% Amount Requested: $181,200 loan or Grant: Loan Repayment Terms: Applicant is requesting a 20-year Declining Balance Loan. Applicant must seek Council approval for request. Total Cost Per Person/Household: $184,650 per household and $12,943 per person Percent of Project Publicly Funded: 32.7% leveraging City CDBG\HOME Funds: $2.05 in other funds for each CDBG dollar requested Property Taxes: The homeowners will pay an estimated $5,100 in property taxes STAFF ANALYSIS Documentation of Project Need The Maxfield Housing Market Analysis and CITY STEPS both show a great need for affordable owner occupied housing in Iowa City. CITY STEPS states that one of the greatest problems facing homeowners is the rising cost of housing and that one barrier to producing new, affordable houses is the cost of developable land. This project will offer the opportunity for three low-income families to become homeowners at an affordable price ($115,000 - $125,000) and the Greater Iowa City Housing Fellowship's Community Land Trust program ensures that the homes remain affordable over time. Project Budget Discussion The bottom portion of the budget states that there will be 12 bedrooms, four at each home, when in reality there will be nine bedrooms, three at each home. The number of persons assisted drops to 14, public subsidy per bedroom changes to $20,133, total cost per bedroom changes to $61,550, total public cost per person changes to $12,943 and the total cost per person changes to $39,568. The budget shows a per lot cost of $60,000 which is higher than previous projects because of the intent to purchase lots in higher cost areas scattered throughout the community. Project Coordination with Existing Services\Activities GICHF has a long history of working with a variety of agencies, organizations and private businesses to ensure the success of each project and of the families living in each home. This project has the potential to continue the partnership between GICHF, the Iowa City Community School District and the Home Builders Association of Iowa City to construct a student built house. Applicant History or Capacity to Successfully Complete the Proposed Project GICHF has received over $11.2 million dollars in grants and loans from public and private sources to develop affordable housing. GICHF currently owns and manages 110 rental homes and GICHF has built and sold 12 Community Land Trust homes in Iowa City. This project will qualify for the CHDO set-aside within the HOME program. Summary of Items to be Addressed 1. Please give an update on the FY02 Peninsula project, the FY03 Lot Acquisition project and the FY05 Longfellow Rental project. 2. Is there a waiting list for the sale of the homes? 3. Discuss implications of partial funding. 4. The application states that the average per lot cost on the MLS is $59,042. Are there lots available for less than the average cost that are acceptable? If possible, discuss locations being considered. 5. Why didn't the applicant seek State HOME funds? CITY OF IOWA CITY FY06 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Greater Iowa City Housing Fellowship - School Choice Program (Rental Housing) Page 40 Applicant Contact: Maryann Dennis 358.9212 Project Address: Citywide Activity Type: Housing CITY STEPS Priority: High - Small Related Renter - cost burdened> 50% with incomes at or below 50% Medium -Small Related Renter-cost burdened> 30% with incomes at or below 50% CITY STEPS Goal Achieved: IV B. Affordable Housing Acquisition of Existing Units (Page 102) Beneficiaries: 31-50% mfi 100% Amount Requested: $812,404 Loan or Grant: $730,004 loan $82,400 grant Repayment Terms: 0% interest for 30 years, (applicant must seek approval from the City Council for the requested grant) Total Cost Per Person/Household: $47,413/person Capital improvement project that will benefit individuals over a 15-year useful life expectancy. Total cost per person over a 15- year period: $3,161 Percent of Project Publicly Funded: 97.8% leveraging City CDBG\HOME Funds: (e.g. 1:1) $0.40 in other funds for each local HOME dollar requested Property Taxes: Tax exempt, however, GICHF will make a payment in lieu of taxes in the amount of $2,330 STAFF ANALYSIS Documentation of Project Need The application references various studies, including the Maxfield Housing Market Analysis and CITY STEPS plan. Both of these documents show a need for housing that is affordable to low-moderate income (LMI) persons. The CITY STEPS strategic plan identifies the acquisition of 20 units of affordable rental housing for low-income persons within the next five years. This project will provide eight rental units to LMI households located in elementary attendance areas that report less than 20% free and reduced lunch eligible student enrollment in 2003. The project also includes rehabilitation costs that will help preserve older homes available to low-income households. Project Budget Discussion Over 97% of the project is publicly funded. The applicant does not identify any private lenders, but indicates State HOME funds will be requested. Applicant states a State HOME application will be submitted December of 2005 and awards announced in April 2006. The applicant has no equity in the project besides a donated realtor commission. The applicant states they will maintain a 3D-year period of affordability to match the term of the loan. (HOME regulations only require a 20-year period of affordability). Developer fee consists of 7% of the total project costs. Developer fee usually ranges between 6-15% of the hard costs of the development budget. Total annual operating costs per unit is approximately $2,329. Project Coordination with Existing Services\Activities The applicant has a long history of working with a variety of agencies, organizations and private businesses to ensure the success of each project and of the families living in each home. In the past they have constructed owner-occupied homes in conjunction with the Iowa City Community School District, the Iowa City Housing Authority and the Homebuilders Association. Applicant History or Capacity to Successfully Complete the Proposed Project Greater Iowa City Housing Fellowship has successfully managed hundreds of thousands of dollars of CDBG and HOME funded projects. GICHF, founded in 1990, has experience and a successful track record with the acquisition and construction of affordable housing. GICHF owns and manages 110 rental homes, housing 335 very low- income persons. This project will qualify for the CHDO set-aside within the HOME program. Summary of Items to be Addressed 1. Applicant has no equity in the proposed project besides donated realtor commission. Has applicant explored private financing? 2. Update on status of FY03/04 projects. 3. If the project does not receive State HOME funds will the project continue? 4. Applicant states purchase offers will be made as early as Sept. 2005. Is this possible without State HOME funds? (State HOME funds if awarded, would not be available until March 2006.) 5. Rehabilitation costs must be clearly separated from acquisition costs for each unit, as the total unit cost for rehabilitation determines what level of lead mitigation or abatement is required. This may significantly impact the total cost of the project. CITY OF IOWA CITY FY06 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Iowa Valley Habitat for Humanity (IVHFH) Page 56 Applicant Contact: Mark Patton 337.8949 Project Address: Citywide Activity Type: Housing CITY STEPS Priority: High - Large Related Owner- Physical Defects with incomes at or below 50% Low - Large Related Owner - cost burdened> 50% with incomes at or below 50% Medium -Large Related Owner -cost burdened> 50% with incomes at or below 30% CITY STEPS Goal Achieved: IV B. Affordable Housing Production of New Units (page 101) Beneficiaries: 0-25% mfi 31-50% mfi 43% 57% Amount Requested: $300,000 loan or Grant: $300,000 loan Repayment Terms: Forgivable loan requested, applicant must seek approval from the City Council Total Cost Per Person: $19,973 Capital improvement project that will benefit individuals over a 15-year useful life expectancy. Total cost per person over a 15-year period: $1,332 Percent of Project Publicly Funded: 41 % leveraging City CDBG\HOME Funds: (e.g. 1:1) $1.45 in other funds for each local HOME dollar requested Property Taxes: . Homeowners will pay property taxes. STAFF ANALYSIS Documentation of Project Need CITY STEPS identifies affordable housing as a great need in Iowa City. Owner-occupied housing for those families living in homes with physical defects is a high priority. Habitat builds based on the selected household's need. This project is designed to provide seven affordable homes that will be available to a household between 25-50% of median family income (mfi). Of the qualified families, those with the greatest need are selected. Habitat reviews several factors such as spending too high a percentage of disposable income on housing, overcrowded sleeping space, and dangerous or dilapidated housing conditions. Applicant proposes to work with the Section 8 Home Purchase Program to assist 2-3 qualified households to transition from renters to owners. Applicant states that each site and its subsequent housing design will be reviewed and approved by city staff. Habitat requests funds for land acquisition only. Project Budget Discussion Private funding, volunteer labor and in-kind donations make up 59% of the project budget. Each selected family must put in up to 250-400 hours of sweat equity into the construction of the home. IVHFH has one paid staff member and houses are sold with no profit. Repayments are recycled back into additional home construction within the local community. Mostly volunteers and the partner families selected for the homes build the homes. The applicant is prohibited by its national parent organization from charging interest to the families they house. Applicant states that by making a forgivable loan with 0% interest, they will be able to serve lower income families (those families at the lower end of the 25-50% bracket). Applicant must seek Council approval. The total cost per unit for the proposed project is $104,857 Project Coordination with Existing Services \Activities The Iowa Valley Habitat for Humanity works with volunteers, donors, agencies, churches, and businesses to build permanent, safe housing for persons between 25 to 50% of median family income. Applicant History or Capacity to Successfully Complete the Proposed Project Since 1992, Iowa Valley Habitat for Humanity has successfully completed 33 single-family homes. IVHFH hired a full-time Director in late 2003. To date, IVHFH has used CDBG andlor HOME funds to acquire land for the construction of 15 homes. Summary of Items to be Addressed 1. Discuss possibility of partial funding if necessary. 2. For each home built, what percentage of funds gets recycled back into home construction in Iowa City? 3. Discuss housing design for the proposed units. How will the project be compatible with existing neighborhoods? 4. Storage space, or lack of storage space, is a sensitive issue in most neighborhoods. How will Habitat address storage issues in the new homes to be built? 5. The application is for the acquisition of 7 lots, not 10. The budget has been modified to reflect 7 lots. CITY OF IOWA CITY FY06 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Hawkeye Area Community Action Program - Transitional Housing - Johnson Co., Page 66 Applicant Contact: Allan Axeen 319-393-7811 Project Address: Specific sites not yet identified (CT 4, 5 and 13) Activity Type: Housing CITY STEPS Priority: HIGH (Transitional Housing) CITY STEPS Goal Achieved: Improve transitional housing programs for families. (Page 96) Beneficiaries: 0-30% mfi 100% Amount Requested: $312,000 Loan or Grant: Loan Repayment Terms: 0% Amortized Loan over 30 Years Total Cost Per Person/Household: $32,500/person Capital improvement project that will benefit individuals over a 15-year useful life expectancy. Total cost per person over a 15- year period: $2,166.67. Percent of Project Publicly Funded: 80% leveraging City CDBG\HOME Funds: $0.25 in other funds for each HOME dollar requested Property Taxes: Tax-exempt STAFF ANALYSIS Documentation of Project Need HACAP is requesting funds to purchase four, two-bedroom rental units. All four units would be used in their transitional housing program with two of the units earmarked for a cooperative project with United Action for Youth (UAY). UAY currently operates seven units of transitional housing for pregnant teens and teen parents. UA Y is losing the units that were operated in a partnership with Youth Homes. HACAP will provide supportive services (e.g. Head Start, early Head Start, case management, employment and educational counseling). UA Y will also offer services to the two units where their clients reside. According to the application, HACAP has a waiting list of 53 households and UA Y has a backlog of applicants and referrals awaiting services. CITY STEPS identifies transitional housing as a "high" priority and a bridge between emergency shelter and permanent housing. Participants in the transitional housing programs will all be below 30% median family income. Project Budget Discussion A private mortgage will finance about 20% of this project. Acquisition, rehab and closing costs are estimated to be $97,500 per unit or $39,000 per bedroom. No documentation regarding the availability and cost of potential units was provided in the application. HACAP has undertaken similar projects in the last few years and has been successful in locating units. The proforma indicates that the management fee is 22% and the maintenance\reserves are $875/unit. The management fee ratio is significantly over the 5-7% range identified by HUD and the maintenance\reserves at $875/unit appear to be near the maximum generally acceptable range due to the maintenance portion of the proforma. Regarding supportive services, the application indicates both UA Y and HACAP will use other State or Federal programs for overhead and supportive service expenses. Project Coordination with Existing Services\Activities Case management provides coordination and referral to existing services to avoid duplication and streamline services. The partnership with UAY does not appear to be duplication as the existing relationship with Youth Homes for the two UA Y units is ending. Applicant History or Capacity to Successfully Complete the Proposed Project HACAP began the Transitional Housing Program in 1987. It operates scattered site single family transitional housing units of various sizes in Johnson County. HACAP administers and operates 40 different programs. As evidenced by their previous transitional housing projects, which have been completed on schedule and within budget, HACAP has demonstrated the capacity to successfully complete the project. Summary of Items to be Addressed 1) The information on "Need/Priority" is from 1996. Is more current data available? 2) Rent is estimated to be approximately $357/month. This appears to be below the FMR levels. Are other HUD funds paying some of these operational expenses? 3) The proforma shows that the debt service exceeds net operating income. How will HACAP be able to cover the minimum debt service (loan payments)? 4) Have other possible funding sources been researched? Such as State HOME funds? 5) Does this project anticipate Section 8 rental assistance? If the project does not get Section 8 vouchers, could it proceed without that assistance? 6) Units to be purchased should be constructed post-1978 so additional expenses related to Lead Based Paint may be avoided. CITY OF IOWA CITY FY06 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Iowa City Housing Authority Tenant Based Rental Assistance (TBRA), Page 79 Applicant Contact: Steve Rackis 887.6065 Project Address: Citywide Activity Type: Housing CITY STEPS Priority: High - Small Related Renter - cost burdened > 30% with incomes at or below 30% M I CITY STEPS Goal Achieved: IV B. Affordable Housing Rental Assistance (page 101) Beneficiaries: 0-30% mfi 100% Amount Requested: $298,080 loan or Grant: $298,080 Grant Repayment Terms: Grant requested, Council will need to review as housing policy did not address TBRA Total Cost Per Person: $2,362 Percent of Project Publicly Funded: 70% leveraging City CDBG\HOME Funds: (e.g. 1:1) $0.43 in other funds for each local HOME dollar requested Property Taxes: Indirectly, private ownersllandlords providing rental units pay property taxes. STAFF ANALYSIS Documentation of Project Need CITY STEPS recognizes that rental assistance is the most often cited and important need identified by low-income persons due to the high market rents in Iowa City. As of 1/13/05, the ICHA reports 2,091 families on the Housing Choice Voucher (HCV) waiting list. Of which, 107 of the applicants are elderly and 611 are disabled. The proposed project will assist 60 low-income elderly andlor disabled households (30 families per year over a 2-year period) with direct housing assistance to landlords on behalf of eligible participants. The proposed project will mitigate the impact of federal budget reductions in the HCV program and allow the ICHA to provide immediate assistance to elderly andlor disabled families currently on the waiting list and maintain assistance to low income families up to their HUD approved baseline of 1,213 families. There is an approximate 2-year wait for assistance. Project Budget Discussion In the proposed project, participants pay no more than 30% of their adjusted gross income towards rent. The ICHA anticipates that they will subsidize approximately 70% of the contract rent. The HUD calculated per unit cost for the ICHA is $414/month. The tenant is responsible, on average, for approximately 30% the contract rent to private landlords scattered throughout Iowa City. Project Coordination with Existing Services\Activities Families participating in the proposed project will remain on the HCV and Public Housing waiting lists. When they reach the top of either list, the ICHA will process their applications and transition the families into the HCV or Public Housing program. Applicant History or Capacity to Successfully Complete the Propos!3d Project The ICHA successfully maintains 88 public housing units and administers the Housing Choice Voucher Program (1,213 vouchers). The ICHA has received HUD's High Performance designation status for 10 consecutive years. Summary of Items to be Addressed 1. Discuss possibility of partial funding if necessary. 2. HOME rules allow the applicant to use TBRA outside of Iowa City. If allowed by Council, what limitations would applicant set regarding portability and how many clients would be served outside of Iowa City? 3. Will applicant have a minimum tenant rent level? 4. Discuss availability of accessible rental units. CITY OF IOWA CITY FY06 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Johnson County Permanent Supportive Housing, Limited Partnership Affordable Supportive Housing, Page 86 Applicant Contact: Mary Jean Donovan 887 -2701 Project Address: Next to 4515 Melrose Ave. (Chatham Oaks) Activity Type: Housing CITY STEPS Priority: High - Rental Housing for 0-50% AMI CITY STEPS Goal Achieved: IV B. Affordable Housing Production of New Units (Page 101) Beneficiaries: 0-30% mfi 31-50% mfi 51-80% mfi Over 80% mfi 100% 0% 0% 0% Amount Requested: $275,000 loan or Grant: Loan Repayment Terms: 3.25% interest for 30 years Total Cost Per Person: $92,284/person Capital improvement project that will benefit individuals over a 15-year useful life expectancy. Total cost per person over a 15- year period: $6,152. Percent of Project Publicly Funded: 100% leveraging City CDBG\HOME Funds: $9.06 in other funds for each local HOME dollar requested (includes value for use of land). Property Taxes: Yes (Partial property taxes according to the formula for LlHTC project in Iowa law.) STAFF ANALYSIS Documentation of Project Need The application references the City funded Maxfield Housing Market Analysis, Governor's Housing Task Force Report, and CITY STEPS which show a need for permanent affordable rental housing for persons with disabilities. Additionally the application references a study by the Johnson County Department of Human Resources (2002) and anecdotal evidence from case managers for Johnson County MH\DD. Renter households between 0-50% of median income are a high priority. Project will accept Section 8 Rental Assistance; therefore it is possible that all units could serve households with incomes less than 30% median income. The proposed project would provide 18 units of affordable rental housing in two buildings. Each building will have eight one-bedroom units and a two-bedroom unit as well as common space. Supportive services will be provided by volunteers and transportation is to be provided by Chatham Oaks. Project Budget Discussion Virtually 100% of the project budget is publicly funded (City and State HOME funds and LlHTCs) with the land to be leased to the project by the Johnson County Board of Supervisors at "no cost". The application is dependent on the award of Low Income Housing Tax Credits (LlHTC) from the IFA and State HOME funds in the 2005 round (with awards announced approximately in March 2006). The Sources of funds includes $864,544 that is indicated as "support services" in question 10.b and not directly related to the construction of the proposed facility. As such, these volunteer hours\value were subtracted from the total project cost. After these items are subtracted, the per unit cost is projected to be $153,807. As this project consists of 16 one-bedroom units and 2 two-bedroom units the cost per bedroom is $138,426. The project proforma indicates that there is an 8% management fee and a budget for maintenance\repair and reserves of $1,350 per unit. Both of these items are outside of HUD's generally accepted guidelines of 5-7% for management and $325-$500 per unit for maintenance\reserves. These items are in addition to a funded "reserve" of $96,025. Project Coordination with Existing ServiceslActivities The applicant is a private, for-profit limited partnership. The proposed project would help fill an identified community housing need identified in CITY STEPS for permanent supportive housing for persons with disabilities. The application states that the proposed project will offer on-site service coordination, 24-hour crisis assistance and a variety of direct supportive services. Applicant History or Capacity to Successfully Complete the Proposed Project The applicant does not have a history of developing affordable housing or receiving HOME funds. To address this gap, the applicant has engaged Burns & Burns L.C. as a consultant. Summary of Items to be Addressed 1. Is the applicant requesting the maximum amount of State HOME funds? If not, why and what level of City HOME funds would be needed to maximize the leverage of State HOME funds? 2. COI is named as the General Partner in the Limited Partnership. Are they the sole Managing General Partner? 3. Are supportive services being provided by the Limited Partner? If so, please describe the type of service(s) and how they are paid for. 4. The per unit cost appears high at $153,807. Please discuss. 5. Are the support services mentioned in the application generally available to Iowa City residents or will those services be specifically available to the residents of this project? If so, how will they differ? 6. The application states that the rents will not exceed the Fair Market Rent (FMR) level for the term of the HOME affordability period. Since the proposed project is requesting a 30-year loan term the FMR limit would apply for 30 years not 20 years. Please confirm. 7. If partial funds are awarded, at what point does the project become no longer feasible? CITY OF IOWA CITY FY06 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Johnson County Permanent Supportive Housing, Limited Partnership Affordable Supportive Housing, Page 103 Applicant Contact: Mary Jean Donovan 887-2701 Project Address: Next to 4515 Melrose Ave. (Chatham Oaks) Activity Type: Housing CITY STEPS Priority: High - Rental Housing for 0-50% AMI CITY STEPS Goal Achieved: IV B. Affordable Housing Production of New Units (Page1 01 ) Beneficiaries: 0- 30% mfi 100% Amount Requested: $550,000 loan or Grant: Loan Repayment Terms: 0% interest for 30 years. (Council policy calls for a 3.25% repayable loan - applicant must seek Council approval for different loan terms) Total Cost Per Person: $92,284/person Capital improvement project that will benefit individuals over a 15-year useful life expectancy. Total cost per person over a 15- year period: $6,152. Percent of Project Publicly Funded: 100% Leveraging City CDBG\HOME Funds: $2.36 in other funds for each local HOME dollar requested (includes value for use of land). Property Taxes: Yes (Partial property taxes according to the formula for LlHTC project in Iowa law.) STAFF ANALYSIS Documentation of Project Need The application references the City funded Maxfield Housing Market Analysis, Governor's Housing Task Force Report, and CITY STEPS which show a need for permanent affordable rental housing for persons with disabilities. Additionally the application references a study by the Johnson County Department of Human Resources (2002) and anecdotal evidence from case managers for Johnson County MH\DD. Renter households between 0-50% of median income are a high priority. Project will accept Section 8 Rental Assistance; therefore it is possible that all units could serve households with incomes less than 30% median income. The proposed project would provide 18 units of affordable rental housing in two buildings. Each building will have eight one-bedroom units and a two-bedroom unit as well as common space. Supportive services will be provided by volunteers and transportation is to be provided by Chatham Oaks. Project Budget Discussion This application is essentially replacing the State HOME funds that were sought in the other application from Johnson County Permanent Supportive Housing L.P. Virtually 100% of the project budget is publicly funded (City HOME funds and LlHTCs) with the land to be leased to the project by the Johnson County Board of Supervisors at "no cost". The application is dependent on the award of Low Income Housing Tax Credits (LlHTC) from the IFA and State HOME funds in the 2005 round (with awards announced approximately in March 2006). The Sources of funds includes $864,544 that is indicated as "support services" in question 10.b and not directly related to the construction of the proposed facility. As such, these volunteer hours\value were subtracted from the total project cost. After these items are subtracted, the per unit cost is projected to be $153,807. As this project consists of 16 one-bedroom units and 2 two-bedroom units the cost per bedroom is $138,426. The project proforma indicates that there is an 8% management fee and a budget for maintenance\repair and reserves of $1,350 per unit. Both of these items are outside of HUD's generally accepted guidelines of 5-7% for management and $325-$500 per unit for maintenance\reserves. These items are in addition to a funded "reserve" of $96,025. The $550,000 in City HOME funds requested in this application appear to be requested as a deferred payment loan or grant as there is no repayment shown on the proforma. Project Coordination with Existing Services\Activities The applicant is a private, for-profit limited partnership. The proposed project would help fill an identified community housing need identified in CITY STEPS for permanent supportive housing for persons with disabilities. The application states that the proposed project will offer on-site service coordination, 24-hour crisis assistance and a variety of direct supportive services. Applicant History or Capacity to Successfully Complete the Proposed Project The applicant does not have a history of developing affordable housing or receiving HOME funds. To address this gap, the applicant has engaged Burns & Burns L.C. as a consultant. Summary of Items to be Addressed 1. Why is the applicant not requesting the maximum amount of State HOME funds? 2. COI is named as the General Partner in the Limited Partnership. Are they the sole General Partner and Managing General Partner? 3. Are supportive services being provided by the Limited Partner? If so, please describe the type of service(s) and how they are paid for. 4. The per unit cost appears high at $153,807. Please discuss. 5. Are the support services mentioned in the application generally available to Iowa City residents or will those services be specifically available to the residents of this project? If so, how will they differ? 6. The application states that the rents will not exceed the Fair Market Rent (FMR) level for the term of the HOME affordability period. Since the proposed project is requesting an unspecified deferred payment loan or grant please confirm the length of the affordability period. 7. If partial funds are awarded, at what point does the project become no longer feasible? 8. Question 16, where the applicant discusses how the project is promoting the efficient use of HOME funds, does not address this $550,000 request. It states the $275,000 of City HOME loan will be 3.25% interest for 30 years (which was the same as the prior application). This needs to be clarified. CITY OF IOWA CITY FY06 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: River City Housing Collective - Property Acquisition Page 120 Applicant Contact: Burgess Adam Smith 337.8445 Project Address: 932 E. College Street Activity Type: Housing CITY STEPS Priority: High - small related renter - cost burdened >50% with incomes at or below 50% High - small related renter - cost burdened >30% with incomes between 0 - 30% Medium - small related renter - cost burdened >50% with incomes 31 - 50% CITY STEPS Goal Achieved: IV B. Affordable Housing Acquisition of Existing Units Page 102 Beneficiaries: Not stated clearly on application, but vast majority appear to fall below 80% mfi Amount Requested: $100,000 loan or Grant: loan Repayment Terms: 0% interest for 30 years Total Cost Per Person: $28,888 Percent of Project Publicly Funded: 15.4% leveraging City CDBG\HOME Funds: $5.50 in other funds for each CDBG dollar requested Property Taxes: Yes, $19,334 per year STAFF ANALYSIS Documentation of Project Need The River City Housing Collective (RCHC) would like to acquire a rooming house to expand their affordable housing stock. Both the Maxfield Housing Market Analysis and CITY STEPS plan show a need for housing that is affordable to low-moderate income (LMI) persons. The proposed units will be rented at below fair market rents to low- moderate income persons, with special consideration given to single parent families, non-students' and non-traditional or working students. Under IV B. Acquisition of Existing Units in CITY STEPS, there is a goal to acquire 20 units of affordable rental housing for low-income persons over the next five years. Project Budget Discussion The application states 15 rooms available; however, zoning regulations require that no more than 13 units may be occupied. The budget states that $550,000 in private financing is available, but does not state if the financing has been secured or committed. It appears that RCHC will be utilizing volunteers, but the value of the volunteer labor was not included on the budget. Project Coordination with Existing Services\Activities RCHC's Articles of Incorporation and By-Laws state that their purpose is to provide low- cost housing affordable to low and moderate income persons and households in a cooperative atmosphere. The rents are set at below fair market rents and the cost of living is further reduced through the provision of free laundry facilities, basic furniture, a $300 security deposit and cooperative cooking, cleaning and property management. Applicant History or Capacity to Successfully Complete the Proposed Project RCHC has been providing affordable rental housing in Iowa City for 28 years. RCHC received assistance through the City's Housing Rehabilitation program in 1998 for accessibility improvements to its Summit House property. Summary of Items to be Addressed 1. Has a purchase offer been accepted? 2. Has private financing been secured? 3. The income of potential occupants of the building was not clearly stated on application, could you survey occupants of the two existing buildings to estimate the income of the proposed building? 4. The application refers to 15 bedrooms being available to rent, however, zoning regulations require that no more than 13 units may be occupied. Does that change the proforma? 5. Discuss implications of partial funding. CITY OF IOWA CITY FY06 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Domestic Violence Intervention Program (DVIP) Page - 130 Applicant Contact: Kristie Fortmann Doser 351.1042 ext. 112 Project Address: (Undisclosed) Iowa City Activity Type: Public Facility CITY STEPS Priority: High - Emergency Shelter CITY STEPS Goal Achieved: Strategy: Improve and maintain existing shelter facilities. (Page 108) . Beneficiaries: 0-30% mfi 86% 31-50% mfi 7% 51-80% mfi 1 % Over 80% mfi 6% Amount Requested: $3,525 loan or Grant: Grant requested (Council policy calls for a conditional occupancy loan. Applicant must seek Council approval for a grant.) Repayment Terms: NA Total Cost Per Person/Household: $ 4.67 per person Capital improvement project that will benefit individuals over a 15-year useful life expectancy. Total cost per person over a 15- year period: $.31 Percent of Project Publicly Funded: 88% leveraging City CDBG\HOME Funds: $.14 in other funds for each CDBG dollar requested. Property Taxes: T ax Exempt STAFF ANALYSIS Documentation of Project Need DVIP provides shelter, crisis intervention and support services to victims of domestic violence and their children. A critical aspect of the program is to provide a safe environment while the client moves beyond the initial stages of crisis. Applicant requests funds to acquire and install a security camera in the kitchen in order to complete the interior and exterior security upgrade that began with FY05 CDBG funds. The system not only monitors the front entry, but also the side and rear yards. (A fire was set on the rear of the DVIP property in September 2003) The second part of the project involves the replacement of nine toilets and upgrading them to a commercial grade to accommodate the commercial residential nature of the facility. Project Budget Discussion DVIP received CDBG funds previously for security cameras at the shelter's main entrance and additional cameras inside and outside of the facility. This application is for an additional camera to monitor the kitchen area. In addition, DVIP is asking for funds to replace the 12 year old toilets that have served more than 3,300 women and children. CDBG funds make up approximately 88% of the project's budget. Project Coordination with Existing Services\Activities DVIP collaborates with a wide range of community groups working on housing issues and support services. Applicant History or Capacity to Successfully Complete the Proposed Project DVIP has received a number of CDBG funding awards, including funds to construct and subsequently rehab the current facility. DVIP has always shown sufficient capacity to complete the projects. Summary of Items to be Addressed 1. Has DVIP researched the availability of using other funds? 2. DVIP anticipates fundraising to provide the stated project match of $500. Has fundraising already begun for this project? 3. Please provide a timeline as to when the applicant estimates they will obtain the necessary funds and when they will begin and complete this project. 4. If partially funded, will the project continue? 5. Does DVIP have a capital reserve budget? CITY OF IOWA CITY FY06 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Emma Goldman Clinic - Roof Replacement Page 138 Applicant Contact: Karen Kubby 337-2112 Project Address: 227 N. Dubuque Street Activity Type: Public Facility CITY STEPS Priority: Low - Health Facilities CITY STEPS Goal Achieved: Objective: Support expansion needs of existing medical/dental facilities. (Page 113) Beneficiaries: o - 30% mfi 31 - 50 % 51 - 80% over 80% 48% 21% 14% 17% Amount Requested: $20,000 Loan Repayment Terms: Applicant is requesting a 1 O-year declining balance loan. Applicant must seek Council approval for request. Total Cost Per Person: $4.63 Capital improvement project that will benefit individuals over a 15-year useful life expectancy. Total cost per person over a 15-year period: $.31 Percent of Project Publicly Funded: 83.3% Leveraging City CDBG Funds: $0.20 in other funds for each CDBG dollar requested Property Taxes: Emma Goldman in a non-profit and not required to pay taxes, however, they elect to make a Payment in Lieu of Taxes in the amount of $2,825 which covers the amount of taxes that would go toward the IC Police and Fire Departments. STAFF ANALYSIS Documentation of Project Need CITY STEPS cites the objective of supporting expansion needs of existing medicalldental facilities. The Clinic operates on a sliding scale fee structure to provide basic reproductive and health services to clients. The Clinic also discounts services for teens and free services for victims of sexual assault seeking services surrounding the assault. Due to the non-profit nature of the clinic, and payment based on the client's ability to pay for services, the clinic is requesting CDBG funds to make the necessary roof replacement. Project Budget Discussion Applicant requests a declining balance loan for 1 O-years as the improvements will depreciate and they must seek Council approval for the request. Applicant was very successful in receiving donated services from contractors for the previous CDBG funded project. This year's application states that a contractor donated time to prepare the cost estimate and to strategize for the roof replacement project. In addition, staff will contribute to the project by assisting with painting. Project Coordination with Existing Services\Activities The Emma Goldman Clinic focuses on reproductive health care. To not duplicate services and to provide the necessary referrals, the Clinic collaborates with the Free Medical Clinic and Planned Parenthood of Greater Iowa. In addition, the Clinic works with other local agencies including Domestic Violence Intervention Program, Iowa Women's Foundation, Rape Victim Advocacy Program, United Action for Youth and Women's Resource and Action Center. Applicant History or Capacity to Successfully Complete the Proposed Project The Emma Goldman Clinic has been providing basic health care services since 1973. They received and successfully administered CDBG funds in FY04. They have also received a variety of grants from various entities to support their services over the past 30 years. Staff is experienced in grant administration and project requirements. Summary of Items to be Addressed 1. All improvements must be bid through a public, competitive process. 2. Will need to discuss financing terms based on council policy. 3. Has applicant applied for or researched other funding sources? 4. Discuss implications of partial funding. 5. Please discuss status of FY04 CDBG funded project. 6. Does the Clinic have a capital reserve budget? CITY OF IOWA CITY FY06 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Free Lunch Program Fire Suppressant System Page 150 Applicant Contact: Paul Shultz 338.1179 Project Address: Wesley Center, 120 N Dubuque St. Activity Type: Public Facility CITY STEPS Priority: Low - Other Public Facilities\Health Facilities High - Health Services\Other Public Services CITY STEPS Goal Achieved: Provision of Health Facilities (p. 113) Provision of Health Services (p. 115) Beneficiaries: "Presumed benefit" due to nature of activity and location Amount Requested: $1,777 loan or Grant: $1,777 loan Repayment Terms: Requesting a 5-year Declining Balance Loan, applicant must seek approval from the City Council Total Cost Per Person/Household: $.06 cents per meal Percent of Project Publicly Funded: 75% leveraging City CDBG\HOME Funds:(e.g. 1:1) $0.33 in other funds for each CDBG dollar requested Property Taxes: Tax Exempt STAFF ANALYSIS Documentation of Project Need The Free Lunch Program serves approximately 100 meals per day, six days a week, to low income persons. Many of the participants in the program are homeless, chronic substance abusers, mentally ill, veterans, elderly, or very low income. Applicant states that recent surveys indicate between 56% to 62% of the Free Lunch Program diners eat their largest nutritional meal of the day at Free Lunch. Applicant requests to replace the fire suppressant system that provides fire safety directly over the stove. The current system has become out of date and is no longer serviceable. Applicant states they must upgrade the system or the Fire Marshall could find them out-of-compliance. If this happens, the Fire Marshall would require replacement under an urgent timeline. Project Budget Discussion The Free Lunch Program operates on a very small budget with the vast majority of the labor and food being donated. Applicant will contribute $590 toward project costs that include the payment of electrician fees and volunteer labor to remove the old system. Applicant received a January 2005 bid for the acquisition of a wet chemical fire suppression system. . Project Coordination with Existing Services\Activities The Free Lunch Program provides a free meal that is open to the public. The 5T AR Program, PATH Program, and the Nursing Outreach Program use the Free Lunch site to meet and provide outreach to many of their program participants. It is co-located with the Free Medical Clinic. Free Lunch operates based on the coordination of hundreds of volunteers and organizations. Applicant History or Capacity to Successfully Complete the Proposed Project The Free Lunch Program received COSG funds in the past to make facility Improvements. The projects were successfully completed on time and within budget. Summary of Items to be Addressed 1. The proposed project is small in nature for a COSG project, has applicant explored other funding sources? Please explain. 2. For previously COSG funded projects, the Free Lunch Program used surveys to document the low-income status of the program participants. Would the Free Lunch Program be willing to continue this practice? CITY OF IOWA CITY FY06 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Free Lunch Program IFree Medical Clinic Floor Replacement, Page 158 Applicant Contact: Paul Shultz 338.1179 Project Address: Wesley Center, 120 N Dubuque St. Activity Type: Public Facility CITY STEPS Priority: Low - Other Public Facilities\Health Facilities High - Health Services\Other Public Services CITY STEPS Goal Achieved: Provision of Health Facilities (p. 113) Provision of Health Services (p. 115) Beneficiaries: "Presumed benefit" due to nature of activity and location Amount Requested: $17,646 loan or Grant: $17,646 loan Repayment Terms: Requesting a 5-year Declining Balance Loan, applicant must seek approval from the City Council Total Cost Per Person: $8.68 (based on the number served at the Free Medical Clinic) Capital improvement project that will benefit individuals over a 15-year useful life. Total cost per person over a 15-year period: $0.57 Percent of Project Publicly Funded: 98% leveraging City CDBG\HOME Funds:(e.g. 1:1) $0.02 in other funds for each CDBG dollar requested Property Taxes: Tax Exempt STAFF ANALYSIS Documentation of Project Need The Free Lunch Program serves approximately 100 meals per day, six days a week, to low income persons. Many of the participants in the program are homeless, chronic substance abusers, mentally ill, veterans, elderly, or very low income. In 2004, the Free Medical Clinic served 2,034 people with over 5,900 visits. Applicant states the current facility is 40 to 50 years old with the original asbestos tile flooring. Applicants states the tile is uneven, presents possible health hazards, and is in dire need of replacing. Project consists of the removal of the asbestos tile and floor replacement. The asbestos tile must be removed and disposed of according to health and safety regulations. Project Budget Discussion The Free Lunch Program and Free Medical clinic operate on small budgets with the vast majority of the labor and food being donated. Applicant received January 2005 bids for the asbestos removal and floor replacement. Project Coordination with Existing Services\Activities The Free Lunch Program provides a free meal that is open to the public. The STAR Program, PATH Program, and the Nursing Outreach Program use the Free Lunch site to meet and provide outreach to many of their program participants. It is co-located with the Free Medical Clinic that provides essential medical services to low-income and un- insured persons. Both programs operate based on the coordination of hundreds of volunteers and organizations. Applicant History or Capacity to Successfully Complete the Proposed Project Both programs have received CDBG funds in the past to make facility Improvements. The projects were successfully completed on time and within budget. Summary of Items to be Addressed 1. The public subsidy for this project is 98%, has applicant explored other funding sources? 2. Will the Free Lunch Program and Free Medical Clinic continue to operate during the rehabilitation? CITY OF IOWA CITY FY06 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Goodwill Industries of Southeast Iowa - Air Conditioning, Page 167 Applicant Contact: Mike Townsend 337.4158 Project Address: 1410 S. First Avenue Activity Type: Public Facility CITY STEPS Priority: Low - Other Public Facilities High - Employment Training CITY STEPS Goal Achieved: Provision of Employment Training and Education (p. 122) Beneficiaries: 0-30% mfi 31-50% mfi 51-80% mfi Over 80% mfi 82% 7% 11% 0% Amount Requested: $120,000 loan or Grant: $120,000 loan Repayment Terms: Requesting a 15-year Declining Balance Loan, applicant must seek approval from the City Council Total Cost Per Person: $2,055 Capital improvement project that will benefit individuals over a 15-year useful life expectancy. Total cost per person over a 15-year period: $137 Percent of Project Publicly Funded: 80% leveraging City CDBG\HOME Funds:(e.g. 1:1) $0.25 in other funds for each CDBG dollar requested Property Taxes: Tax Exempt STAFF ANALYSIS Documentation of Project Need Applicant has provided employment and training for persons with a variety of barriers to independence at the First Avenue location since 1968. Applicant states all the individuals receiving center-based services have a disability. Many have medically fragile conditions that make if difficult or unsafe to work in an area that is not air- conditioned on hot and/or humid days. Applicant states air-conditioning the training area will greatly improve the working environment for these individuals and allow them to work and receive vocational training during hot-weather days. Project Budget Discussion Applicant is relying on an architect estimate for project costs. No contractor bids were received or referred to in the application. Applicant states they initiated a capital campaign to raise $780,000 to renovate the 1st Avenue facility to address building deterioration. The facility is approximately 37 years old. Applicant has raised $340,000 to date, but states they will have difficulty reaching their goal. The applicant budget is strictly for the proposed air-conditioning project, it did not include the other renovations planned. Project Coordination with Existing Services\Activities The employment and training services offered are coordinated with a variety of community agencies. They work with their funding sources and residential providers to coordinate services and participation. The applicant also works with local businesses to whom they contract to perform work, such as Rockwell Collins and North Liberty Plastics. Applicant History or Capacity to Successfully Complete the Proposed Project Applicant has successfully administered past COBG funds. Applicant receives and administers a variety of federal, state, and private grants. Goodwill has operated the Center-based Employment and Training program since 1966. Summary of Items to be Addressed 1. The application did not include a contractor's estimate. Has the applicant received one or contacted a contractor to provide an estimate? 2. The applicant stated that $340,000 has been raised for capital improvements. Are these funds earmarked for some purpose? CITY OF IOWA CITY FY06 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Iowa Valley Habitat for Humanity - ReStore Project Page 175 Applicant Contact: Mark Patton 337-8949 Project Address: Not Identified Activity Type: Public Facility CITY STEPS Priority: CITY STEPS Goal Achieved: low - Other Public Facilities New Construction of Affordable Owner-occupied Units (Page 101) Beneficiaries: 0-30% mfi 31-50% mfi 51-80% mfi 80-100% mfi Over 100% mfi 12% 38% 23% 12% 15% Amount Requested: $350,000 loan or Grant: loan Repayment Terms: Conditional Occupancy loan (Applicant requesting Council approval of an exemption to repayment of the COl if another, larger facility were to be acquired in the future.) Total Cost Per Person: $1,434/person Capital improvement project that will benefit individuals over a 15-year useful life expectancy. Total cost per person over a 15-year period: $95.60. Percent of Project Publicly Funded: 39% leveraging City CDBG\HOME Funds: $1.71 in other funds for each CDBG dollar requested Property Taxes: Tax Exempt STAFF ANALYSIS Documentation of Project Need The proposed project has identified the need for this project to be environmental (recycling materials vs. landfill), provision of low cost materials and appliances to LMI households and generation of funds for the production of affordable housing. ReStore facilities in Madison, WI and the Quad Cities have documented that approximately 550 tons of construction refuse has been annually diverted from landfills. Project Budget Discussion The project financing is largely provided through a private bank loan of $500,000. Other funds for building renovations and equipment are to be provided by Habitat volunteers and a Iowa DNR grant of $23,000. Project Coordination with Existing Services \Activities The applicant has a history of working with local construction companies and building supply stores as well as volunteers. Aside from the private lender, the application did not identify business partners or services (e.g. Small Business Development Center, SCORE or ISED) that potentially could have provided technical assistance to Habitat with the proposed project. Applicant History or Capacity to Successfully Complete the Proposed Project The applicant has worked with CDBG and HOME funds in the past, however, this will be the applicant's first experience with operating a retail business. Summary of Items to be Addressed 1. Has the applicant 'prepared a business plan and financial projections? 2. Has a site or specific commercial area been identified? 3. Is there a purchase offer for the proposed building? If not, how was the value of the property determined? 4. Would the applicant be open to coordinating the ReStore with a larger community effort (e.g. Furniture Project)? CITY OF IOWA CITY FY06 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Aliber/Hillel Jewish Student Center Accessiblity Renovation Page 184 Applicant Contact: Gerald L. Sorokin 338.0778 Project Address: 122 E. Market Street Activity Type: Public Facility CITY STEPS Priority: High - Accessibility Needs CITY STEPS Goal Achieved: Accessibility Needs Beneficiaries: Presumed benefit (Nature of Activity) Amount Requested: $29,968 loan or Grant: Loan Repayment Terms: Applicant is requesting a declining balance loan as improvements depreciate. Applicant must seek Council approval for request. Total Cost Per Person: $183 per person Capital improvement project that will benefit individuals over a 15-year useful life expectancy. Total cost per person over a 15- year period: $12.20 Percent of Project Publicly Funded: 32.7% leveraging City CDBG\HOME Funds: $2.05 in other funds for each CDBG dollar requested Property Taxes: Tax Exempt STAFF ANALYSIS Documentation of Project Need The multilevel facility was constructed in 1970 according to standards of accessibility that are long out of date. The building is used by the Jewish campus community, but is also open to and used by the entire community. Individuals using the facility are severely limited by Hillel's entrance doors, restrooms and stairways between levels. In addition, there is space on the lower level that is completely inaccessible and would be opened up upon completion of the project. Project Budget Discussion The applicant received a bid from a contractor to allow for an accurate estimate of construction expenses on the proposed budget. A large portion of the budget is based on anticipated private gifts, but the status of the gifts is unknown. Project Coordination with Existing Services\Activities The Hillel Center is used by a variety of community organizations including the Johnson County chapter of the National Alliance for the Mentally III, the Emma Goldman Clinic, Women's Resource and Action Center, the School for the Performing Arts, Willowwind School and the Princeton Review Company. Applicant History or Capacity to Successfully Complete the Proposed Project Although the organization has not received CDSG funds in the past, they have been successfully operating at that site for 35 years. They have also successfully completed a number of renovations over the last seven years. Summary of Items to be Addressed 1. Has the national organization been asked to contribute to the project? 2. Discuss implication of partial funding. 3. Church/State issues may need to be addressed. 4. Status of the anticipated private gifts? 5. How did the applicant pay for previous building renovations? CITY OF IOWA CITY FY06 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Neighborhood Centers of Johnson County - Broadway Building Improvements Page 196 Applicant Contact: Brian Loring 358.0438 Project Address: 2105 Broadway Street Activity Type: Public Facility CITY STEPS Priority: High - Neighborhood Facilities High - Child Care Centers CITY STEPS Goal Achieved: Support development of childcare facilities (Page 112) Provision of Neighborhood Facilities (Page 113) Beneficiaries: 0-30% mfi 31-50% mfi 51-80% mfi Over 80% mfi 100% 0% 0% 0% Amount Requested: $63,245 CDBG Loan Repayment Terms: Applicant is requesting a declining balance loan as improvements depreciate. Applicant must seek Council approval for request. Total Cost Per Person: $68.00 per person Capital improvement project that will benefit individuals over the life of the improvements. Per person cost over a 15-year period is $4.53. Percent of Project Publicly Funded: 90% leveraging City CDBG\HOME Funds: $0.09 in other funds for each CDSG dollar requested Property Taxes: Tax Exempt STAFF ANALYSIS Documentation of Project Need CITY STEPS, the Local Homeless Coordinating Board and local human service organizations recognize the need for affordable dependent care. The space capacity at the Broadway Neighborhood Center has not increased in the past 15 years, while programming demand has tripled in the past 10 years. Project proposes to use funds for 1) replacing classroom cabinets, countertops and repairing floors and rotting door frames; 2) adding cabinets and sink to downstairs afterschool classroom; 3) replacing carpet and tile in library and entrance; 4) replacing sink and cabinets in the upstairs bathroom; 5) replacing cabinets and counters in upstairs kitchen; 6) adding built-in office "pod" space for childcare, youth and parent support staff; and 7) repair 900 square feet of broken concrete in parking lot. Project Budget Discussion The applicant has a commitment of $7,000 of "local funds" to be used for the project. The applicant has been successful with raising funds to assist with previous CDBG funded construction projects. There was no mention of how the applicant arrived at the construction estimates. Project Coordination with Existing Services\Activities NCJC has a long history of coordinating with area non-profits, organizations, neighborhood groups, neighborhood businesses and local community leaders. There is no duplication of services as there are limited subsidized day care options in the area. Applicant History or Capacity to Successfully Complete the Proposed Project Applicant has received a number of CDBG allocations for both the Pheasant Ridge Neighborhood Center and for the Broadway Neighborhood Center. The funds were expended in a timely manner. Applicant operates with a budget of approximately $1,500,000 and 50 full-time staff. They are accredited by the National Association for the Education of the Young Child (NAEYC) and have the capacity to complete the proposed project successfully. Summary of Items to be Addressed 1) How were the cost estimates for the proposed improvements completed? 2) Any other funding options available? 3) What do you mean by "local funds" committed to the project? 4) Discuss implications of partial funding. 5) What is a built-in office pod? 6) Status of FY05 project? 7) Does applicant have a capital reserve budget? CITY OF IOWA CITY FY06 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Old Brick Repointing Project Page 205 Applicant Contact: David Wellendorf 351.2626 Project Address: 26 E. Market Street Activity Type: Public Facility CITY STEPS Priority: Low - Non-Residential Historic Preservation Needs CITY STEPS Goal Achieved: Historic Preservation (Page 111) Beneficiaries: Not applicable Amount Requested: $60,000 loan or Grant: $60,000 loan Repayment Terms: Conditional Occupancy Loan Total Cost Per Person: Unable to compute Percent of Project Publicly Funded: 35% Leveraging City CDBG\HOME Funds:{e.g. 1:1) $1.90 in other funds for each CDBG dollar requested Property Taxes: Tax Exempt, except for portion rented to non-exempt entities. STAFF ANALYSIS Documentation of Project Need Old Brick was built in 1856 and was placed on the National Register in 1973. Old Brick provides a gathering place for civic, educational, cultural and social events in the community. The applicant states except for a small section of the west wall, the building has not been repointed and shows signs of mortar deterioration. Applicant requests funds to tuckpoint the structure. Project Budget Discussion Applicant states the State Historical Society awarded them a $86,900 grant. They have an application pending with the Bechtel Trusts and Foundation that will be reviewed in August of 2005. Applicant did not state the amount or what the funds will be directed for if awarded. Of the total project cost, applicant will secure outside grants or complete fund raising for 65% of the project. Applicant did not supply or refer to a contractor's estimate for the project. Project Coordination with Existing Services\Activities Old Brick exists because of cooperation between dozens of organizations, businesses and non-profits. The application states that the auditorium is used for a wide array of events such as concerts, community awareness programs, social service fundraisers, plays, and weddings. Old Brick is the home of Agape Café (a weekly free breakfast program) that serves between 70 to 80 persons a week who are homeless or at risk of being homeless. Applicant History or Capacity to Successfully Complete the Proposed Project Old Brick has operated on a small budget for many years, successfully depending on donations, grants and volunteers. In FYOO Old Brick received $20,000 in CDBG funds to assist with the installation of an elevator, however, the funds were not fully expended until FY03. Applicant received FY05 funds for a wheel chair lift. Applicant has accepted bids and it is anticipated that the project will be complete by the end of the fiscal year. Summary of Items to be Addressed 1. The application did not include a contractor's estimate. Has the applicant received one or contacted a contractor to provide an estimate? 2. The total project cost is $173,800, of which is $32,460 for equipment. What type of equipment? Is this equipment needed to complete the tuckpointing project? 3. For a conditional occupancy loan, the City will place a mortgage on the property for the length of the loan. This has created problems in the past with Old Brick's board. Will Old Brick accept a mortgage on the facility or will they be requesting a deviance from Council policy? 4. Update on FY05 project. CITY OF IOWA CITY FY06 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Planned Parenthood of Greater Iowa Page 215 Applicant Contact: Kelly Thornberg 354-2044 ext. 3 Project Address: 850 Orchard Street Activity Type: Public Facility CITY STEPS Priority: High - Accessibility Low - Health Facility CITY STEPS Goal Achieved: Objective: Support expansion needs of existing medical/dental facilities. (Page 113-116) Beneficiaries: 0-30% mfi 31-50% mfi 51-80% mfi Over 80% mfi 81% 11% 7% 1% Amount Requested: $30,000 loan loan or Grant: Conditional Occupancy Loan Repayment Terms: Requesting a 7 year declining balance loan as improvements depreciate. Applicant must seek Council approval for request. Total Cost Per Person/Household: $13.48/Person Percent of Project Publicly Funded: 59% Leveraging City CDBG\HOME Funds: $0.71 in other funds for each CDSG dollar requested Property Taxes: Property is leased. As such, the landlord pays Full property taxes. STAFF ANALYSIS Documentation of Project Need CITY STEPS cites the objective of supporting expansion needs of existing medicalldental facilities. The resurfacing of the parking lot and reconfiguration of the entance could qualify under CITY STEPS as accessibility improvements while the remainder of the proposed project includes the renovation of the facility and replacement\purchase of equipment. The non-profit Clinic operates on a fee structure enabling it to provide basic reproductive and health services to very low income clients (last year 80% of clients were under 30% median income). The closing of the UI Family Practice Clinic is dramaticly impacting the Clinic. In the last two months of 2004 the patient visits were up 103% (November) and 52% (December) from the prior year. Due to the nature of the clinic, and payment based on the client's ability to pay for services, the clinic requests funds to make accessibility and maintenance related improvements. Project Budget Discussion Applicant requests a 7 -year declining balance loan as the improvements will depreciate over time. Since this is a leased property, the Clinic would not be able to provide a conditional occupancy loan on the real property. Applicant has had an internal review of the costs involved for the proposed improvements. The total cost is anticipated to be $51,200 with the CDBG funds to be used for the accessiblity improvements and replacement of countertops and plumbing fixtures. Project Coordination with Existing Services\Activities Clinic focuses on reproductive health care and not general medical issues. Coordination with other agencies\organizations (e.g. Emma Goldman Clinic or Free Medical Progr?lm) were not described. The Clinic does work with the Department of Health and government programs such as Title XIX (Medicade) and XX (Social Services Block Grant). Applicant History or Capacity to Successfully Complete the Proposed Project The Clinic has been in operation in Iowa City since 1990. They have received and administered a variety of grants from various entities to support their services. Staff is experienced in grant administration and project requirements. Summary of Items to be Addressed 1. All improvements must be bid through a public, competitive process. 2. Will need to discuss financing terms based on council policy. 3. Has the applicant contacted a contractor(s) for an estimate? 4. Has the landlord been asked to contribute to the resurfacing of the parking lot as This improvement will increase the long-term value of the property? CITY OF IOWA CITY FY06 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Compeer Program Page 225 Applicant Contact: Joanna Mouming 337.5400 Project Address: Office is at 122 E. Market Street, but program is citywide Activity Type: Public Service CITY STEPS Priority: High - Health Services CITY STEPS Goal Achieved: Provision of Health Services: Short-Term Objectives: Continue support of health, dental and HIV/AIOS services. Long Term Objective: Encourage participation of additional health care service providers. (Page 115) Beneficiaries: o - 30 % mfi 93% 31 - 50 % mfi 7% Amount Requested: $ 1 ,300 loan or Grant: Grant Repayment Terms: NA Total Cost Per Person $121 Percent of Project Publicly Funded: 25% leveraging City CDBG\HOME Funds: $3.00 in other funds for each COSG dollar requested Property Taxes: Tax Exempt STAFF ANALYSIS Documentation of Project Need This project connects a trained volunteer with a person with chronic mental illness to encourage and support participation in community activities. The program indicates that it will cut down the isolation and loneliness many with chronic mental illness experience. The program increases socialization and friendship, which the applicant states, is shown to prevent relapse where treatment can be more expensive. Applicant estimates there are approximately 926 persons diagnosed with Schizophrenia and 5,554 persons with Affected Disorders in Johnson County. There are currently 12 active one-on-one matches of volunteer friends from the community with adults receiving mental heath treatment for socialization and recreation. The applicant requests funds to pay for a portion of the salary of the one-quarter time director. Project Budget Discussion The project budget shows $3,900 in other funds anticipated through grants and fund raising and based on previous fundraising efforts the figure seems reasonable. The program's major funding source, the Robert Wood Johnson Foundation grant, expired in June 2004. The Board decreased the director position from one-half to one-quarter time, the office was moved to a space that was donated and the telephone expenses are shared. The project proposes using volunteers extensively at a value of over $28,530. Project Coordination with Existing Services\Activities Compeer, like the Community Mental Health Center, relies on extensive coordination with existing services throughout the community. Applicant History or Capacity to Successfully Complete the Proposed Project Compeer received CDBG funds in FY05 and has been successfully fulfilling the administrative requirements. The Board was formed in the fall of 2001 under the sponsorship of the Community Mental Health Center. Summary of Items to be Addressed 1. Will the project continue if partial funding from CDBG is awarded? 2. Currently, Compeer has 12 active matches. Does Compeer anticipate any difficulty in getting additional volunteers for the 16 individuals on the waiting list? CITY OF IOWA CITY FY06 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Emma Goldman Clinic - Creating Financial Access to Reproductive Health Care Services Page 236 Applicant Contact: Karen Kubby 337-2112 Project Address: 227 N. Dubuque Street Activity Type: Public Service CITY STEPS Priority: High - Health Services CITY STEPS Goal Achieved: Provision of Health Services: Continue support of health, dental and HIV/AIDS services. (Page 115) Beneficiaries: o - 30% mfi 31 - 50 % 51 - 80% over 80% 48% 21% 14% 17% Amount Requested: $5,000 loan or Grant: Grant Repayment Terms: NA Total Cost Per Person/Household: $45.38 Percent of Project Publicly Funded: 2.1 % leveraging City CDBG Funds: $46.00 in other funds for each CDSG dollar requested Property Taxes: Emma Goldman in a non-profit and not required to pay taxes, however, they elect to make a Payment in Lieu of Taxes in the amount of $2,825 which covers the amount of taxes that would go toward the IC Police and Fire Departments. STAFF ANALYSIS Documentation of Project Need The Emma Goldman Clinic's sliding scale fee structure creates financial access to basic reproductive and health care services and over 90% of their clients utilize the fee structure. The Clinic also discounts services for teens and free services for victims of sexual assault seeking services surrounding the assault. In addition, the University of Iowa's Family Planning Clinic closed in the fall of 2004 so the Emma Goldman Clinic is anticipating an increase in the number of clients who will be using the sliding scale fee structure. Due to the non-profit nature of the clinic, and payment based on the client's ability to pay for services, the clinic requests funds to help them absorb some of the costs of the sliding scale fee subsidy. Project Budget Discussion The applicant is leveraging $46 in other funds for every CDSG dollar requested. They have applied for and received a number of outside grants and the CDSG funds would be filling a gap in funding. Project Coordination with Existing Services\Activities The Emma Goldman Clinic focuses on reproductive health care. To not duplicate services and to provide the necessary referrals, the Clinic collaborates with the Free Medical Clinic and Planned Parenthood of Greater Iowa. In addition, the Clinic works with other local agencies including Domestic Violence Intervention Program, Iowa Women's Foundation, Rape Victim Advocacy Program, United Action for Youth and Women's Resource and Action Center. Applicant History or Capacity to Successfully Complete the Proposed Project The Emma Goldman Clinic has been providing basic health care services since 1973. They received and successfully administered CDSG funds in FY03. They have also received a variety of grants from various entities to support their services over the past 30 years. Staff is experienced in grant administration and project requirements. Summary of Items to be Addressed 1. Discuss implications of partial funding. 2. Please discuss status of the FY04 funded project. 3. How will the clinic cover the additional costs from clients using the sliding fee scale in future years? CITY OF IOWA CITY FY06 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Extend the Dream -- Operational Expenses Page 244 Applicant Contact: Carolyn Lukrofka 339-0401 Project Address: 401 S. Gilbert St. & 912 - 2nd Ave. Activity Type: Public Service CITY STEPS Priority: Medium CITY STEPS Goal Achieved: Services for Persons with Disabilities - Provision of Living Skills (page 118) Beneficiaries: 0-30% mfi 31-50% mfi 51-80% mfi 81-100% mfi Over 100% mfi 47% 40% 6% 4% 3% Amount Requested: $ 4,851 Loan or Grant: Grant Repayment Terms: N/A Total Cost Per Person/Household: $56.08\person Percent of Project Publicly Funded: 50% leveraging City CDBG\HOME Funds: $1.00 in other funds for each CDBG dollar requested. Property Taxes: Tax Exempt STAFF ANALYSIS Documentation of Project Need CITY STEPS, notes the need for living skills training. This project is proposing to provide employment training and job skills to persons with disabilities. Through the job training and case management services persons with disabilities will be encouraged to start small businesses and\or begin e-commerce marketing. Project Budget Discussion The project budget is based on the cost for two National Corporation of Service to the Community (AmeriCorps\VIST A) volunteers. This program requires a 50% co-pay. Volunteers are anticipated to provide general labor to the proposed project. The volunteer services were estimated to be 150 hours with an approximate value of $1,875\year. Project Coordination with Existing Services\Activities Extend the Dream has been working with community partners (including the University of Iowa) with the Uptown Bill's Small Mall and other projects. Applicant History or Capacity to Successfully Complete the Proposed Project In FY01 the applicant received a $107,500 CDBG award for the lease of commercial space and accessibility improvements. In FY05 the applicant received a $60,000 CDBG award to cover the lease at 401 S. Gilbert Street for another 3-year period of time. Uptown Bill's Small Mall is on track to become financially self-sustaining at the end of 2007. Both of these awards have been well managed by the recipient. None of the prior CDBG funds have gone for operational expenses. Summary of Items to be Addressed 1. Will the RiverFest proceeds be able to sustain the operational costs associated with the National Corporation of Service to the Community (AmeriCorps\VISTA) volunteers at the end of the two year period? 2. Are the businesses at Uptown Bill's Small Mall and new proposed facility at 912 _2nd Street able to contribute to the proposed project? CITY OF IOWA CITY FY06 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Family Services - Savvy Seniors Series Page 252 Applicant Contact: Scott Shook 319.398.3576 Project Address: 2010 Keokuk Street, Ste 103 Activity Type: Public Services CITY STEPS Priority: High - Senior Services CITY STEPS Goal Achieved: Provision of senior services. Short term objective, continue support of services for the elderly (page 120) Provision of crime awareness and prevention (page 118) Beneficiaries: 0-30% mfi 31-50% mfi 51-80% mfi Over 80% mfi 25% 35% 25% 15% Amount Requested: $4,300 Loan or Grant: Grant Repayment Terms: Not applicable Total Cost Per Person: $43.00 Percent of Project Publicly Funded: 74% leveraging City CDBG\HOME Funds:(e.g. 1:1) $0.35 in other funds for each CDBG dollar requested Property Taxes: Tax Exempt STAFF ANALYSIS Documentation of Project Need A short-term objective of CITY STEPS is to continue support of services for the elderly. Applicant proposes to provide educational presentations on budgeting, fraud, scams, identity theft and predatory lending to elderly low-income persons residing in low- income housing complexes. Applicant states their goal is to help low-income elderly persons learn the financial skills to maximize their limited incomes while making them aware of the dangers that can befall the un-wary consumer, especially this vulnerable population. Project Budget Discussion The total budget is $5,800 for the program. No other mention of additional sources of funds or outside resources besides agency contribution of staff salaries. Project Coordination with Existing Services\Activities Applicant has partnered with several local organizations including HACAP and is currently providing financial counseling to University of Iowa students. Applicant History or Capacity to Successfully Complete the Proposed Project Family Services is accredited and meets all regulatory codes. Their staff is highly professional and has abundant experience. Consumer Credit Counseling Service has been serving the Iowa CitylCedar Rapids area for over 20 years. Applicant received a FY02 CDBG award and successfully managed their award. Applicant states since FY2000 more than $12.46 million in debt has been repaid to creditors through their program. Summary of Items to be Addressed 1. If applicant does not receive their total request, at what amount does this project no longer become viable? 2. The Iowa City Police Department use to provide training on some of these issues, but due to funding constraints and the elimination of the Community Relations officer, they have not been able to provide this service. The ISU Extension office provides financial counseling and crime prevention services. How are the services proposed different than what is available through the ISU Extension office? 3. The proposed budget includes $1,300 for meals and incentives. Could applicant request that the host site provide the incentives? CITY OF IOWA CITY FY06 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Free Medical Clinic - Case Management Page 260 Applicant Contact: Sandy Pickup 337-4459 Project Address: 120 N. Dubuque Street Activity Type: Public Service CITY STEPS Priority: High - Health Services CITY STEPS Goal Achieved: Provision of Health Services: Continue support of health, dental and HIV/AIDS services. (Page 115) Beneficiaries: 0-30% mfi 90% 31-50% mfi 6% 51-80% mfi 3% Over 80% mfi 1 % Amount Requested: $ 10,000 loan or Grant: Grant Repayment Terms: NA Total Cost Per Person: $1,526 Percent of Project Publicly Funded: 1.8 % leveraging City CDBG: $53.95 in other funds for each CDBG dollar requested Property Taxes: Tax exempt STAFF ANALYSIS Documentation of Project Need: In FY04 the Free Medical Clinic had 1,635 patient visits for diabetes, hypertension, asthma and depression, a 21 % increase from FY03 and 67% increase since FY01. In addition, 90% of all the clients are under 30% mfi and very few have private insurance. CITY STEPS lists Health Services as a high priority and has a short-term objective to continue the support of health, dental and HIV/AIDS services. Project Budget Discussion The project appears to have funding for every aspect of the program except the funds for salaries and benefits. They were able to provide $53.95 in other funds for every CDSG dollar requested. The total cost per person is $1,526 or $336 per visit (based on 1,635 patient visits), including prescriptions and in-kind resources. The applicant received CDSG funds for operational expenses in FY01, FY03, FY04 and FY05. Project Coordination with Existing Services\Activities The Free Medical Clinic has a long history of working with a variety of agencies and organizations in Iowa City, such as Shelter House, DVIP, U of I Hospitals, U of I Dental program, MECCA, STAR and many private health care professionals. Applicant History or Capacity to Successfully Complete the Proposed Project The Free Medical Clinic has successfully administered COSG funds in previous years. Additionally, the clinic has a 30-plus year history of operating the clinic and overseeing renovations funded with grants and donations. Summary of Items to be Addressed 1. Please explain the source of funds for the case management program and if those sources allow for operational expenses. 2. Are all of the costs shown in the application (totaling $549,500) only for the 360 clients with diabetes, hypertension, asthma and depression? 3. Will the project continue with partial funding? 4. How will applicant locate reserves for operational costs in the future? CITY OF IOWA CITY FY06 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: L T & J Consulting - Iowa City Community Grantwriters Workshop Page 271 Applicant Contact: Jill Smith 400.2114 Project Address: Citywide Activity Type: Public Service CITY STEPS Priority: High - Other Public Service Needs CITY STEPS Goal Achieved: Continuation of Human Service Coordination Page 121 Beneficiaries: Unknown Amount Requested: $16,567 loan or Grant: $16,567 grant Repayment Terms: NA Total Cost Per Person: $190.14 Percent of Project Publicly Funded: 72.6% leveraging City CDBG\HOME Funds: $0.38 in other funds for each CDBG dollar requested Property Taxes: NA STAFF ANALYSIS Documentation of Project Need L T&J Consulting will deliver four Iowa City Community Grantwriters Workshops offered to 120 community-based organizations to heighten the knowledge, skills and experience of service provider organizations to develop successful grant proposals and compete successfully for federal competitive grants and other competitive funding sources. They will also provide 100 hours of one-on-one leadership training and strategic planning services to those that complete the workshops. According to the application, Iowa continues to la~ in competing for funds to provide for public service needs. Although Iowa is ranked 19 h in the US in the number of charitable nonprofit organizations, the state ranks 28th in gross receipts received in 2003 by those organizations. Project Budget Discussion The applicant is proposing four eight-hour workshops at a cost of $4,142 (including $2,000 in staff time) for each workshop. Almost 73% of the project is publicly funded with the remaining funds a donation from the partners. The applicant does not identify any outside funding, but does offer in-kind contributions from the experienced partners. Project Coordination with Existing Services\Activities The applicant will coordinate and work with community based organizations through the grantwriting workshops and follow-up training. Applicant History or Capacity to Successfully Complete the Proposed Project The L T&J Consulting Team's partners both have more than 20 years experience in working with organizational development and business management and leadership development. Summary of Items to be Addressed 1. Have applicant explored the idea of participants contributing a minimal fee? 2. Could project work on a commission basis for grants that are awarded? 3. Discuss implication of partial funding. 4. How will the Low-Moderate Income (LMI) benefit be met? CITY OF IOWA CITY FY06 CDBG/HOME APPLICANT REVIEW STAFF REPORT . Project Name & Page Number: OMNI Therapies, Inc Page 283 Applicant Contact: Craig Steuer 936.3377 Project Address: 2730 Naples Ave. Ste 102 Activity Type: Public Services CITY STEPS Priority: High - Health Services CITY STEPS Goal Achieved: Provision of Health Services (Page 115) Objectives: Continue support of health, dental and HIV/AIDS services. Long Term Objective: Encourage participation of additional health care service providers. Beneficiaries: 0-30% mfi 31-50% mfi 51-80% mfi Over 80% mfi 52% 9% 25% 14% Amount Requested: $22,600 loan or Grant: Grant Repayment Terms: Not applicable Total Cost Per Person: $50.31 Percent of Project Publicly Funded: 69% Leveraging City CDBG\HOME Funds:(e.g. 1:1) $.45 in other funds for each CDSG dollar requested Property Taxes: Yes STAFF ANALYSIS Documentation of Project Need Health Services are a high need in CITY STEPS. Applicant proposes to offer chiropractic care and massage therapy on a donation basis to low-to-moderate income persons. Applicant provides services to person with back pain, hernias, carpal tunnel syndrome, fibromylagia, chronic fatigue syndrome, TMJ, anxiety, depression and abuse issues. Project Budget Discussion The project budget estimates $32,700. Applicant contribution makes up 31 % of the proposed budget. Of the proposed budget, $6,000 in CDBG funds is requested for advertising. Applicant anticipates 200 volunteer hours. This volunteer contribution is not included in the total budget. Project Coordination with Existing Services\Activities Applicant states they have received referrals from the Senior Center, Community Mental Health Center, the Free Medical Clinic, Ronald McDonald House and others. Applicant History or Capacity to Successfully Complete the Proposed Project All employees have the necessary licensing and training required by the state. Summary of Items to be Addressed 1. Applicant requests $22,600. Is this project viable if less than half of the requested amount is awarded? At what level does this project no longer become viable? 2. How many clients were seen last year on a donation basis? Applicant states they would like to increase their number of clients from 500 to 650. Is this total for the donation only clients or is this the agencies total number of clients? How many clients would be seen strictly on a donation basis based on the proposed budget? 3. Transportation continues to be an issue for low-income clients. Could applicant provide services at multiple location sites such as the Free Medical Clinic? CITY OF IOWA CITY FY06 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Shelter House - John Thomas Deposit Assistance and Emergency Assistance Program; Page 290 Applicant Contact: Christina Canganelli 338.5416 ext. 105 Activity Type: Public Services - Other Public Service Need Project Address: City-wide CITY STEPS Priority: CITY STEPS Goal Achieved: HIGH Homeless prevention Permanent Housing - Homeless (page 107) Beneficiaries: 0-30% mfi 100% Amount Requested: $ 5,000 loan or Grant: $ 5,000 grant Repayment Terms: N/A Total Cost Per Person/Household: $ 336.56 based on 160 households served. Percent of Project Publicly Funded: 9% leveraging City CDBG\HOME Funds: $9.77 in other funds for each CDBG dollar requested Property Taxes: Undetermined as the recipients of the security deposits/emergency assistance may reside in privately owned units (taxable) or in units owned by non-profit organizations (tax exempt). STAFF ANALYSIS Documentation of Project Need Iowa City homeless shelters serve hundreds of people each year. Homeless facilities are designed to serve as emergency shelter or as a temporary housing solution. This program assists homeless individuals or households secure housing or maintain their existing housing. The need for security deposit assistance is documented in the Analysis of Impediments to Fair Housing where it is mentioned as a barrier to low income persons seeking housing. Many households experience difficulty saving enough to pay the upfront rental costs to obtain a rental unit. Emergency assistance helps maintain housing for those households near homelessness. The short-term cost of such assistance is much lower than the long-term expense to support the same household in emergency facilities. The assistance provided is a one-time deposit or emergency payment to secure or maintain housing. Project Budget Discussion The Security Deposit program has received CDBG funds for the past four years. The amount of direct assistance to LMI households is $16,100 with the remainder of the program budget earmarked for staff costs and program materials. The staff cost of $35,250, as shown in the application, is more than double the amount of the direct financial assistance ($16,100). The Security Deposit program has received CDBG funds for the past four years. The applicant's history with this program indicates that approximately 160 households will be assisted, which averages about $100 per household. Shelter House has worked with landlords to secure a repayment of the deposit assistance in the event an assisted household moves out. Shelter House anticipates the return of $600 to be used for the continued operation of this program. Due to lead based paint regulations the project had to be modified in FY04. Security deposit assistance can not be provided to tenants that will use the assistance to live in a unit built before 1978. One-time emergency rent or utility assistance can be provided which is exempt from the lead regulations. To utilize the one-time emergency assistance the applicant must receive one of the following: an eviction notice, utility shut-off notice, or must be residing in a shelter. Project Coordination with Existing Services\Activities As noted in the application, Greater Iowa City Housing Fellowship (GICHF) does operate a similar program. The GICHF program is slightly different in that the assistance it provides are short-term loans funded through a local lender. Referrals by other service organizations are recognized. Referrals are accepted from various sources including Domestic Violence Intervention Program, the Crisis Center, Greater Iowa City Housing Fellowship, local landlords andlor management companies, and the faith community. Applicant History or Capacity to Successfully Complete the Proposed Project Shelter House has been successful in completing this CDBG funded project over the last two years. We would like to see the organization improve their timeliness regarding the submission of payment requests and quarterly reports. Summary of Items to be Addressed 1. What is the increase in the number of households that were able to relocate out of Shelter House due to this program. 2. What percentage of households are successful in maintaining their place of residence for 6 months to 1 year after they receive the one-time assistance? 3. Does one-time assistance mean one time per year? 4. This project has received CDBG funds since FY02. Will this program become self- sustaining through the repayment of rent deposits? CITY OF IOWA CITY FY06 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Shelter House - Outreach Coordinator Page 301 Applicant Contact: Christina Canganelli 338.5416 ext. 105 Activity Type: Public Service Project Address: 331 N. Gilbert Street CITY STEPS Priority: HIGH - Homeless Needs CITY STEPS Goal Achieved: Expanding staff and capabilities within the existing system to provide improved service and expanding available services. (p. 108) Beneficiaries: Presumed Benefit (Homeless) Amount Requested: $ 16,500 loan or Grant: Grant Repayment Terms: N\A Total Cost Per Person: $1,057 per person based on anticipated shelter usage of 525 persons over a one year period. Percent of Project Publicly Funded: 100% leveraging City CDBG\HOME Funds: $32.64 in other funds for each COBG dollar requested. Property Taxes: Tax Exempt STAFF ANALYSIS Documentation of Project Need Shelter House is proposing a fourth year of case-management services to an estimated 525 persons annually. The application indicates the staff coordinator to be paid for with CDBG funds are to be a part of the STAR program. As such, these funds will be used to help meet the matching requirement for the STAR program. The newly renewed STAR grant will require approximately $106,744 in local match. Project Budget Discussion All of the CDBG funds are targeted for operational expenses (salaries) for the outreach and case management functions. Other services (e.g. employment assistance, life skills, etc.) are provided through the STAR program, which represents approximately 83% of the "other funds" identified in the application. Volunteers are anticipated to provide 750 hours of general administrative assistance to the proposed project for a value of $7,500. Project Coordination with Existing Services \Activities Referrals to local human service organizations are essential to the success of this proposed project. The function of the outreach coordinator is to focus on expediting access to local mental health and substance abuse resources, employment, housing and other corollary community based and public resources. Applicant History or Capacity to Successfully Complete the Proposed Project Shelter House has been successful in completing a number of similar public service or public facility CDBG projects. We would like to see the organization improve their timeliness regarding the submission of payment requests and quarterly reports. Summary of Items to be Addressed 1. CDBG funds were used to provide a portion of the cash match required to leverage the STAR grant in FY04 and FY05. What other funds were used to complete the cash match in FY06? 2. How many of the 525 clients identified in the application will participate in STAR? 3. Discuss various outcome measures such as how many clients residing at the shelter obtain permanent housing, how many clients with substance abuse problems or with mental health issues seek and continue treatment with the appropriate provider. 4. This is the fifth year of funding for this activity. What is STAR's long-term plan for generating match? 5. The anticipated numbers of people served are higher than last year by 16.67%. Please discuss how Shelter House will accommodate this level of increase. CITY OF IOWA CITY FY06 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: TTC Housing Program Page 314 Applicant Contact: Theresa Kopatich 354.5197 Project Address: 1100 Arthur St. Activity Type: Public Services CITY STEPS Priority: High - Other Public Service Needs CITY STEPS Goal Achieved: IV E. Other Special Needs (page 109) Priority housing and supportive service needs of persons who are not homeless but require supportive housing. Beneficiaries: 0-30% mfi 100% Amount Requested: $6,000 loan or Grant: Grant Repayment Terms: Not applicable Total Cost Per Person: $1,000 Percent of Project Publicly Funded: 25% leveraging City CDBG\HOME Funds: (e.g. 1:1) $3.00 in other funds for each CDBG dollar requested Property Taxes: Tax Exempt; however Town and Campus Apartments pay property taxes. STAFF ANALYSIS Documentation of Project Need One of the objectives of CITY STEPS is to review the need to provide housing and supportive services to persons who are not homeless but require supportive housing and identify potential providers and sites. Applicant proposes to provide on-site supportive services to the residents of Town and Campus Apartments, a 20 unit one and two bedroom apartment complex. Applicant states the 20 apartments will be available for transitional and permanent housing and will accept referrals from area service providers. On-site services include teaching persons how to cook, clean, take care of personal hygiene, grocery shop, develop crisis plans, etc. that will assist persons increase their daily living skills. Project Budget Discussion The applicant applied for Emergency Shelter Grant (ESG) funding, however funding decisions will not be made until April. ESG funding makes up the majority of the funds for this project. CDSG funding makes up 25% of project cost. Project Coordination with Existing Services\Activities The TTC-Housing Program is relatively new. Applicant states they will accept area referrals and will assist persons living in the units connect to local ?gencies to help them build natural supports. The Director has extensive knowledge of the local services available. Applicant History or Capacity to Successfully Complete the Proposed Project The Director of this project is a social worker who has abundant experience with low- income persons with substance abuse andlor mental illness issues and transitional housing. Summary of Items to be Addressed 1. If applicant does not receive their total request, at what amount does this project no longer become viable? 2. If Emergency Shelter Grant funds are not awarded, will this project move forward? 3. What is the statuslownership of the Town and Country Apartments? Are they used for transitional housing currently? Has the owner made a commitment to this project and if so, for what length of time? 4. Question #18 states the goal of the project is to provide supportive services to low income-persons, especially those with highlspecial needs. Is the project focused on persons with disabilities? If so, are the units accessible?