HomeMy WebLinkAbout01-19-2006 Housing & Community Development Commission
AGENDA
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
LOBBY CONFERENCE ROOM, CITY HALL
THURSDAY, JANUARY 19, 2006
6:30 P.M.
1. Call Meeting to Order
2. Approval of the November 17,2005 Minutes
3. Public Comment of Items Not on the Agenda
4. Iowa City Free Medical Clinic Request to Amend their FY1997 Community
Development Block Grant Agreement
5. Review of the FY07 Allocation Process & Proforma Basics
6. Consideration of Potential 2006 Agenda Items
7. Neighborhood Centers of Johnson County - Broadway Revitalization
Project Presentation
8. Monitoring Reports
· Emma'Goldman Clinic - FY04 & FY06 Facility Rehabilitation (Richman)
· Free Lunch Program - Facility Rehabilitation (Niblock)
· Free Lunch/Free Medical Clinic - Facility Rehabilitation (Niblock)
. IC Free Medical Clinic - Operations (Niblock)
. Compeer - Operations (Shaw)
. ICHA":' Tenant Based Rent Assistance (Bears)
· Old Brick Foundation - Historic Preservation/Rehabilitation (Anthony)
. HACAP - Transitional Housing (Shaw)
· ICCSD - FY05 Wood Family Resource Center (Shaw)
8. Adjournment
,~ 1
-~= -....!t
,....-- -...,
~~~!!
~ ~...~
_.:.. ,
CITY OF IOWA CITY
MEMORANDUM
Date: January 12, 2006
To: Housing & Community Development Commission (HCDC)
From: Tracy Hightshoe, Associate Planner
Re: January Meeting Packet
Below is a brief description of the January agenda items.
New Business
Iowa City Free Medical Clinic Request to Amend their FY1997 Community Development
Block Grant Agreement
The Iowa City Iowa Free Medical Clinic requested the forgiveness of a FY1997 CDBG award.
Free Medical Clinic (FMC) and Wesley received $62,776 of CDBG funds in 1997 for the
renovation of the FMC space. FMC has notified the City of their intent to move to the Towncrest
area effective 4/1/2006. The Board requests that the remaining$S,OOO of the conditional loan
be forgiven. $37,776 was a grant, and $2S,000 was a conditional loan ($2,SOO forgiven on the
30th of June each year commencing 6/30/1998, last payment 6/30/2007).
A lease between the FMC and Wesley was signed and attached as Exhibit B of the agreement.
According to the lease filed with the agreement, if the tenant (FMC) leaves before 6/30/2007
they must repay the City the outstanding balance. If the Landlord (Wesley) terminates the lease
before 6/30/2007 they must repay the City the outstanding balance.
Wesley is currently searching for a qualified successor lessee, as provided by federal
regulations, to rent this space as allowed by the agreement. If Wesley is unable to do so then
both entities would be responsible forthe payment as stipulated in the lease. The FMC request
is included in your packet.
Review of the FY07 Allocation Process and Proforma Basics
Staff will review the allocation cycle for the benefit of the current and new commission members.
Staff will also provide a brief overview of the proforma sheet included in the housing application
for rental housing projects. Please review the packet of information regarding housing project
finance. This information will give you the basics in understanding the spreadsheet and rental
housing budgets.
Consideration of Potential 2006 Agenda Items
Upon the request of the HCDC Chair, the commission will review and decide if and when certain
items will be placed on subsequent HCDC agendas. Please review Anthony's letter enclosed in
your packet.
Old Business
Neighborhood Centers of Johnson County - Broadway Revitalization Project
Presentation
Pat Meyer from the Neighborhood Centers of Johnson County will present the findings from the
FYOS CDBG funded ($S,931) Broadway Revitalization Project planning study.
January 12, 2006
Page 2
Monitoring Reports
Due to time considerations, project updates due in December and January are on this meeting's
agenda. The updates rescheduled previously will be moved to this spring. The contact
information is provided after each project.
. Emma Goldman Clinic - FY04 & FY06 Facility Rehabilitation (Richman)
(Karen Kubby, 337.2112)
. Free Lunch Program - Facility Rehabilitation (Niblock)
(Paul Shultz, 338.1179)
. Free Lunch/Free Medical Clinic - Facility Rehabilitatior:l (Niblock)
(Free Lunch, Paul Shultz, 338.1179, FMC Sandy Pickup 337.9727)
. IC Free Medical Clinic - Operations (Niblock)
(Sandy Pickup, 337.9727
. Compeer - Operations (Shaw)
(Sherri Zastrow, 338.7884)
. ICHA - Tenant Based Rent Assistance (Bears)
(Steve Rackis, 887.6065)
. Old Brick Foundation - Historic Preservation/Rehabilitation (Anthony)
(David Wellendorf, 351.2626)
. HACAP - Transitional Housing (Shaw)
(AI Axeen, 337.5765)
. ICCSD - FY05 Wood Family Resource Center (Shaw)
(Joan VandenBerg, 688.1000)
If you have any questions about these agenda items, or will be unable to attend, please contact
me at 356-5230 or by email at tracy-hightshoe@iowa-city.org.
MINUTES
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
LOBBY CONFERENCE ROOM, CITY HALL, IOWA CITY
THURSDAY, NOVEMBER 17,2005
PRELIMINARY
Members Present: Jerry Anthony, Lori Bears, William Greazel, Matthew Hayek, Kelly Mellecker,
Thomas Niblock, Brian Richman, Michael Shaw
Members Absent: none
Staff Present: Tracy Hightshoe, Steve Long
Public Present: Crissy Canganelli, Charlie Eastham, Sandy Pickup
CALL MEETING TO ORDER
Chairperson Anthony called the meeting to order at 6:37 PM.
APPROVAL OF THE MINUTES FROM MAY 19, 2005
Motion: Bears moved to approve the minutes as submitted. Hayek seconded the motion.
Anthony said that there was a discussion regarding aid to agencies that was not included in the minutes.
Hightshoe said that they will revise the minutes to include that discussion.
Motion passed 8:0.
PUBLIC COMMENTS OF ITEMS NOT ON THE AGENDA
Long said that Rita Marcus resigned from the Commission. Advertisement for the vacant position would begin
December 14th and a new person should replace Marcus hopefully by the end of January 2006.
Anthony said that the original mandate of the Housing and Community Development Commission was to advise
the City Council in matters regarding housing. He added that it is a broad mandate and for the past few years
the commission has not been active either in reviewing policies or recommending those that affect housing
issues. He encouraged the commission to use its mandate. Anthony noted that the commission might want to
discuss inclusionary zoning and maybe submit a pro or against memo to the City Council. Richman said that it
would be a good idea to circulate an outline regarding the ideas to be discussed regarding inclusionary zoning
and when it would be on the agenda, as to allow members to formulate thoughts. Greazel noted that one of the
City Council candidates mentioned in their campaign how much support there is in the community for low
income housing, however, he said the support is not transferred to actions.
Shaw said that the commission should first understand how it should make recommendations, and how best to
involve the community. Hayek said there are different opinions in the community and the commission would
have to listen to all sides.
Bears said that she would like to discuss the Pheasant Ridge apartments issue and the letter that was sent to
HUD. She asked if the Planning Department had received a copy of the letter that was sent by the University of
Iowa. Long noted the letter was sent directly to HUD, not the City. Anthony had a copy of the letter submitted
and offered to read it to the commission: "We are deeply concerned that any University of Iowa student not in
need of public housing assistance may be displacing or could displace a family that is in need of affordable
housing under the current eligibility guidelines. While we also recognize every individual's legal rights to local,
state, and federal resources, including housing, and certainly want to make sure that University of Iowa students
who are legitimately in need of and eligible for low income housing receive it. We believe the actions we
recommend above could help eliminate violations of the spirit of Section 8 housing by students of the University
of Iowa and in higher education generally." Anthony said they are asking for a nation-wide change of eligibility
guidelines, and have a couple of specifications, which was a very proactive initiative of the University.
PROPOSED ALLOCATION OF ADDITIONAL CDBG PUBLIC SERVICE FUNDS
Hightshoe said the commission at last month's meeting agreed to allocate the $14,000 of unanticipated
additional program income to existing FY06 public service ptojects. The commission decided to send a letter to
applicants that received publiC service funding for FY06 to advise them of the funds. The applicants, she said,
were required to submit a written request for funds and an updated budget. Each applicant was encouraged to
have a representative at the meeting.
Housing and Community Development Commission Minutes
November 17, 2005
Page 2
Greazel said that he would be in favor of approving the staff recommendations. Shaw asked what was the
rationale for the staffs recommended allocations. Long said that the sums were calculated based on proportions
of funding received in the 2006 allocation process. Hightshoe said that of the 5 projects that received funding, 4
requested additional funds. She noted that Shelter House had 2 projects that received funding but they only
submitted a request for the Outreach Coordinator position.
Canganelli said that at the last meeting she requested additional funds from the commission to assure that
Shelter House meets the required cash match obligation for the STAR program. She added that they do not
exist in a vacuum, and they rely on other service providers to be there when their clients are in need.
Shaw said that they might consider funding based on priorities or greater need. He said that it might serve a
greater purpose or need by giving more money to Shelter House and Free Medical Clinic.
MOTION: Hayek moved to distribute the additional funds according to the staff recommendations with
one exception. The funds allocated to the Emergency Assistance Program (Shelter House) will be
allocated to the Shelter House Outreach Coordinator project at the agency request. Greazel seconded
the motion.
The motion passed 8:0.
NEW BUSINESS
DISCUSS AND REVIEW FY07 CDBG/HOME FUNDING PROCESS AND TIMELlNE AND APPROVE
APPLICATION MATERIALS
Hightshoe said that the timeline for FY07 funding is included in the commission's packet. She added that the
February 15 meeting was added in case there is a high number of applications. Long said that February and
March meetings will be held at the Iowa City Public Library.
Shaw asked if there is a general estimate on how long the meetings will be. Long said that February 16th, March
9th and 23rd tend to be long.
Hightshoe said that there are a few changes made in the Applicant Guide. She noted that at the last council
meeting Habitat for Humanity requested for the council to review the financial investment policy and the council
decided to review it.
Greazel said that the subcommittee formed to look at the application materials. One of their goals was to try to
simplify the forms and only require the information necessary to make a funding decision. He added that one
suggestion was for the commission to have a goal setting session to determine some priorities and focus
dwindling resources to meet those priorities. He noted that a lot of projects tend to be funded just enough to
survive, but not enough to help actually move the project. Greazel said that based on the priorities set they
would let applicants know the year's primary focus. He also recommended a quick, initial review and reject
applications when the commission knows the project will not get funding, thus not make the agency go through
the entire process. The quick review and setting priorities would be considered for next year's funding as timing
does not allow for it this year (FY07 process).
Richman said that the abbreviated application forms would lessen the burden of agencies that are applying
depending on the type of project. He noted that the housing application was not changed much, however
applications for public services and facilities were drastically reduced to contain just pertinent information.
Hightshoe said that there are 4 categories that people can apply for CDBG/HOME funding; public services,
public facilities, housing, and economic development. She noted that the economic development applications
are reviewed by the City Council Economic Development Subcommittee. If the subcommittee refers an
economic development application back to HCDC for review, the commission would review the same application
as submitted to the Economic Development Subcommittee. She noted there is a difference in the application
format, but was agreed that the applicant should not have to complete two separate applications for the same
project.
Housing and Community Development Commission Minutes
November 17, 2005
Page 3
Shaw noted that for the current year the commission would only change the application format. Bears said that
the new applications are very helpful. She asked what the role of the bolded questions are in the ranking sheet
Hightshoe said the questions in bold are core questions with a yes or no answer. If the answer is no, the
applicant receives no score for that section. The subcommittee looked at ways to make the ranking sheets
easier and less subjective. In the new format, the reviewer asks yes or no to each question. If the reviewer
feels the project meets the review requirement, they get a certain amount of points (not a range of points). If the
reviewer doesn't feel that item is met, the project doesn't get any points for that question. If the answer for any
core, bolded question is no, the reviewer must consider if the application should get any funding. She said that
several questions were removed from the public services and facilities applications, while they remain and are
necessary for the housing applications. The total score for the ranking sheet for public services and public
facilities was reduced to 60. Housing remains at 100 points. Hightshoe stated that as they are no longer an
"apple to apple" comparison, staff felt that a different point total was acceptable.
Richman said that it would be easier if the scores would add up to 100. Hayek, Greazel and Anthony considered
60 as being appropriate.
Hightshoe said that the applicant guide is sent along with the application form. She said that on the first page of
the guide there is a checklist for applicants to check whether they have all needed materials. She added that
Hayek had requested direction from Council regarding the location of housing that the commission assists. She
said that for FY07 the Council created a map that identifies areas in which additional assisted housing would be
encouraged or conversely, locating in some areas would not be encouraged.
Long said that the Council did not make any decisions regarding the adoption of the Scattered Site Policy. He
added that the Council changed the considerations on the map to show that in block group 105,18-1,18-2 and
17-2 no more affordable housing should be allowed. Anthony asked if the Council voted on the decision.
Hightshoe said that the Council did not vote, but they reached a consensus. Anthony asked if it would be
possible to use the map as part of the ranking system, and give additional points to applicants that propose
housing in underserved areas of the map. The commission reached a consensus to add 5 extra points for those
applicants that would build in the underserved areas as decided by the Council.
Greazel said that lots in underserved areas would cost too much money. Hayek said that the issue will go down
to whether applicants will want to buy two lots in an over-served area, or one lot in an underserved area of the
city. Greazel said that Habitat for Humanity purchased a lot on Rochester Avenue for approximately $60,000 as
they could not purchase land where it is significantly lower in price. Building only in "underserved areas" will
reduce the number of units available with entitlement funds (rental and owner-occupied).
Anthony asked what projects would be affected if the Council clarifies the issue. Hightshoe said that it would
only affect the housing projects. Long clarified the decision of the commission; if the applicant proposes assisted
housing in an underserved area, it will receive 5 points and 0 if the proposed site is not in an underserved area.
Anthony noted a concern about the applicant guide. On the page titled CDBG and HOME Program Investment
Policies, especially the policy for housing, the Council recommended and approved this policy. As HCDC did
not consider or make any recommendation, the HCDC motion to approve the application materials should be
the rest of the application materials within HCDC review.
Long said that there is a change from last year. He noted that the interest rate is determined at the time the
agreement is executed by the City (prime minus two points for for-profit projects). Anthony said that in
applications it should be specified that the same rules regarding interest rates apply to all applications, and are
set up by the City Council.
Hightshoe said that since last year there was an issue regarding submission of proformas. The application
checklist states that a proforma MUST be submitted. If one is not submitted, the commission may consider not
reviewing the application.
MOTION: Greazel moved to approve the application materials (under HCDC review) with the proposed
revisions as noted above. Shaw seconded the motion.
Motion passed 8:0.
Housing and Community Development Commission Minutes
November 17, 2005
Page 4
OLD BUSINESS
MONITORING REPORTS
Extend the Dream Foundation-Property Acquisition
Hayek said that the projects refer to the acquisition of a building on F Street, near the Hy-Vee on First Avenue.
The building has three low-income apartments on the second floor with three store fronts on the first floor. The
store fronts house local businesses. There is a jewelry and clothing business, a furniture business, and last one
is an e-commerce business. They are all open. Unfortunately they suffered a burglary a few weeks ago Hayek
reported.
Bears said that she saw the outside of the building and was amazed by the improvements. Hightshoe said that
she was also impressed by the progress of the building.
Shelter House - Emergency Assistance
Anthony said that Shelter House was funded with CDBG money for the John E. Thomas security deposit
assistance program. The program helps individuals and families secure rental housing with an average of less
than $100 assistance per household. To qualify for the security deposit, families must have a rental agreement,
for utilities, a shut-off notice, and for emergency rent assistance an eviction notice. He noted that the Shelter
requires individuals to participate in a one-hour meeting with a housing councilor and discuss the tenant-
landlord relationship, responsibilities of tenants, and how to be a good neighbor. After the meeting individuals
are required to take a quiz to prove their understanding of the matter. He noted that since July 2005 the Shelter
helped 13 households, out of which 5 were assisted with CDBG funds. Anthony said that 3 of the 5 households
had individuals with disabilities, 2 were female headed, and they assisted a total of 4 children.
Shelter House - Land Acquisition
Anthony said that in 2003 Shelter House was funded $230,000 for land acquisition. Hightshoe said that the
Shelter used $193,000 for land. The remainder of the funds will be used for site preparation. She said that the
commission would need to discuss this project and timeline if they lose the appeal.
Anthony said that Shelter House received the money to acquire a lot to be used for the relocation of the facility.
He noted that they are trying to build a bigger facility. He said that the population of Johnson County increased,
and the number of homeless people increased as well. The current facility can house 29 homeless people, and
the proposed facility has plans to house 59 people. Shelter House needed a special exception to locate in the
tract of land bought. They applied for an exception to the Board of Adjustment on July 14, 2004. A neighborhood
group objected to the relocation, and filed a case against the Board of Adjustment which was heard by the local
district Court. The Court ruled against the Board of Adjustment. He noted that the City has appealed the district
court decision and is waiting a resolution.
Hightshoe said that if the case is lost in court the Shelter would need to sell the land and repay the funds.
Shelter House- Operational
Report rescheduled for next meeting
DVIP - Facility Rehab
Shaw said that they received funds to install 9 toilets and one camera in the kitchen. He noted that they had to
match some money, and received some donated work. He said that Chamber Electric donated the electric work.
Shaw said that the toilets have benefited the facility greatly. Since they've been replaced, they've had no
additional plumbing costs or repairs.
Shaw said that the camera was installed at the requirements of the residents to protect against loss of food, and
for supervision of kids.
Aid to Agencies-ESI, UAY & MECCA
Report rescheduled for next meeting
UA Y -Facility Rehab
Report rescheduled for next meeting
Housing and Community Development Commission Minutes
November 17, 2005
Page 5
Habitat for Humanity- land Acquisition
Greazel said that Habitat had spent most of the funds. He said that with FY05 funds, Habitat for Humanity has
purchased four of the five lots. He added that by next year all the money would be spent.
Whispering Garden-Affordable Renting
Report rescheduled for next meeting.
Greater Iowa City Housing Fellowship-Homeownership
Report needs to be reassigned.
ADJOURNMENT
The meeting adjourned at 8:15 PM.
Minutes submitted by Bogdana Rus.
s:lpcd/minuleslhcdcl2005111-17 -05.doc
December 21, 2005
Karin Franklin
Director of Planning and Community Development
City of Iowa City
410 E. Washington St.
Iowa City, IA 52240
Dear Ms. Franklin:
The Iowa City Free Medical Clinic received a Community Development Block Grant in 1997 to
assist in renovating its facilities at 120 N. Dubuque Street. It is our understanding that $2,500 of
the grant is being forgi ven annually and that at June 30, 2007, the full amount of the grant would
be forgiven if we remain in our current location. On behalf of the Board of Directors of the FMC
I am requesting the remainder of the grant be forgiven as of April 1,2006, to facilitate moving
both the Free Medical Clinic and the Free Dental Clinic to the Towncrest area.
Over the past 10 years we have seen the number of patients and the frequency of visits increase
rather dramatically. In our current facilities it is becoming increasing difficult to efficiently and
effectively utilize our staff and the large number of community volunteers who assist us in
delivering much needed health care to the uninsured and underinsured in Johnson County and
surrounding area.
We believe we have found a building in Towncrest we can rent at a subsidized rate that will meet
our needs for the foreseeable future. We are in the process of determining the costs of making
such a move and are hopeful the remainder of the CBDG can be forgiven to help make sllch a
move more feasible.
Sincerely,
V~ c i~
Val dean C. Lembke
Member, Board of Directors
Iowa City Free Medical Clinic
L
.~
; ~
an
I I
-
. .
A practical guide to real estate financing for nonprofit developers
2nd EDITION
\
lliii
, \ ,
t. \\ \ \ \ . \ \ \\ I \
LL
lL~L...l
I "' i
l~_
.J.1
I
ROBERT R. REAM
LYNN ARLINGTON PHARE
Commissioned by
a consortium of
New York banks
~.,.,
,
Rules of Thumb for Estimating Development Soft Costs
(Note: Soft costs vary according to the size, type and location of the de-
velopment project. Most of the guidelines presented below are based
on fonnulas currently used by the New York City Division of Housing
Preservation and Development (HPD) and the Community Preservation
Corporation (CPC). These rules of thumb reflect current (1996) cost es-
timates which are subject to change. Whenever possible, obtain
information about actual costs for your project.
(.
Architect and Engineering: The fee charged by the architect for pre-
paring drawings and monitoring the project during construction. Usu-
ally 4% to 10% of the construction cost, not including the contingency
allowance. Government funders frequently set a maximum allowable
percentage. The architects fee includes the cost of hiring engineers
needed for structural and major system design.
Environmental Survey: Survey of building and lot for toxic sub-
stances including asbestos. Varies from about $1,700 to $2,500 per
building or site.
Appraisal: A determination of the value of the existing property and
the value of the property after completion of construction. The ap-
praised value determines the maximum loan amount based on the loan
to value formula used by the lender. Varies with the size and complex-
ity of the project. Cost will be higher for mixed-use and scattered site
projects. Allow at least $2,500 to $5,000.
Consultant Fees: Varies with the size and complexity of the project
and the extent of consultant services to be provided. Allowable con-
sultant fees are usually limited by government funders.
Survey: Determines the boundaries and exact location of the lot and is
required in order to obtain title insurance. Fee varies, allow $1,500 per
building or lot.
Tax Exemption Program Filing Fee: A fee paid to a government
agency for processing an application for real estate tax exemption
and/or abatement. Varies with the program. .'
Title Insurance: Insurance that protects the owner and lender from
possible future losses caused by defects in the title. Estimated cost is
.007 x the amount of the mortgage or the total development cost.
Mortgage Recording Tax: A State tax charged when a mortgage is re-
corded in a book of public records. Calculate as 2.75% of the mort-
gage recorded. Calculate as 2.5% of mortgages over $500,000 and 2%
of mortgages under $500,000. This fee can be waived for certain types
of nonprofit development corporations.
)
,r
;
-";~
'j'
.. ~,
,:' ~.
.'.
61
\
Developer Legal Lawyer's fees for reviewing and preparing docu-
ments and managing the legal aspects of the closing. Varies with the
complexity of the project. Allow from $10,000 to $25,000. Develop-
ers of projects with multiple sources of government and private financ-
ing may incur higher legal fees.
Developer Fee: Varies. Usually calculated at 3% to 10% of the total
project cos~ or as a flat fee based on the number of units. Certain gov-
ernment programs allow developer fees of up to 15% of the total devel-
opment cost. The fee is intended to compensate the developer for
project-related administrative costs, salaries, office rent, transporta-
tion, etc. Government funders may limit or disallow this fee.
Construction Period Real Estate Taxes: Real estate taxes on the land
and the building under construction. Calculate by using the present as-
sessed value x tax rate x length of the construction period. Real estate
taxes will be higher if the project is re-assessed during construction
and is not exempt from tax increases.
Construction Period Water and Sewer: Charges for water and sewer
service during construction. Calculated by assessment x length of the
construction period or as a flat fee for limited usage during construction.
Construction Period Insurance: Cost of fire and liability insurance
during construction. Insurance is in addition to insurance carried by
the general contractor. Use actual quote from your insurer or estimate
at $5 to $8 per $1,000 of replacement value.
Permanent Lender Fee: A fee charged by the lender for underwriting
and processing the loan. Usually 1 % to 2% of the loan.
Permanent Lender Legal: Legal expenses incurred by the lender in
connection with making the loan. Paid by the developer. Estimate at
$10,000 to $30,009 depending on the size and complexity of the project.
Construction Lender Fee: A fee charged by the lender for underwrit-
ing and processing the loan. Usually I % to 2% of the loan.
Construction Lender Legal: Legal expenses incurred by the lender in
connection with making the loan. Paid by the developer. Estimate at
$10,000 to $30,000 depending on the size and complexity of the project.
Bank Engineer: Usually a consultant selected by the lender to inspect
the construction work and approve the release of funds to the general con-
tractor. Fee includes the initial review of construction drawings ($2,500 to
$5,000) plus a charge for each inspection of the building and review of the
contractor's requisitions for payment. Allow $500 to $750 for each inspec-
tion and assume one inspection per month during construction.
Construction Loan Interest: Interest paid monthly on the portion of
the loan that has been advanced to the borrower. Usually estimated at
/\
,
,;1;
.,
I!
; i
I ~ r !
i'I'
:/j
'III
~~
1
,.
'!i
I, .
., 'I
'~I '
~ i;
62
~
.
50% to 60% of the construction loan x the interest rate x the length of
the construction period.
Marketing and Leasing: Costs incurred during leasing of apartments and
commercial space or the sale of residential units can vary enonnously--esti-
mates should be given careful consideration. For low and moderate income
residential rental projects, HPD allows $9,000 plus $300 per unit.
Soft Cost Contingency: This is an allowance for unforeseen costs and
overruns. Allow a lump sum of$10,000 to $25,000 depending on the
size of the project, or use 5% to 10% of the soft costs.
""--"
i
)/'
Income and Expenses
The Schedule of Pro Fonna Income and Expenses is used for income
producing property only and is frequently referred to as the pro forma.
The pro forma presents the expected results of the first year of opera-
tion of the project after it has been completed and leased. The pro
forma is simply a detailed presentation of the following fonnula: Gross
Rents - Vacancy Allowance - Expenses = Net Operating Income. Each
of the components of this fonnula is discussed below. (In the case of a
sales project, the comparable schedule would show projected gross in-
come from the sale of the units less the expenses incurred in selling the
units such as legal costs, brokerage fees, advertising and transfer taxes.
The schedule should include a breakdown of the projected per unit
sales price for each unit or type of unit. For a sales project, the schedule
is a detailed presentation of the following formula: Gross Sales Pro-
ceeds - Sales Expenses = Net Sales Proceeds. The developer's profit
equals Net Sales Proceeds less the total development cost shown in the
Sources and Uses schedule.)
j)
Gross Rents: This item includes all sources of income including resi-
dential rents broken out by unit type, number. of units; commercial
units with square footage and rent per square foot, and any other in-
come such as coin operated laundry, parking, and other charges. The
total gross rent is the projected total income from the project if all
units are occupied for the full year and all rents are collected.
Vacancy and Loss Allowance: Gross rents are reduced by this allow-
ance for vacancies and uncollected rents. The rule of thumb for detennin-
ing the vacancy and loss allowance is 5% for residential and at least 10%
for commercial space. Banks may require higher vacancy and loss allow-
ances depending upon the location of a project and market conditions.
While the demand for affordable rental housing is usually very strong, de-
mand for commercial space can vary greatly and the lender may require a
vacancy allowances of20% or more for commercial space.
))
63
Expenses: Lists all operating expenses, management fees, and alloca-
tions to reserv~ funds. Remember to include the operating expenses
for the superintendenf s apartment. (See Rules of Thumb for Estimat-
ing Annual Operating Expenses, below.)
Net Operating Income: This "bottom line" is referred to as the Net
Operating Income (NOI). It is the most important number on the
spreadsheet because it will be used by the lender to determine the
amount of debt that your project can support. (Determining the maxi-
mum'loan amount using the NOI is discussed in Chapter 3.)
Rules of Thumb for Estimating Annual Operating Expenses
(Note: Operating costs vary greatly depending upon the age, size and
location of the building. The guidelines presented below are based on
formulas used by the New York City Division of Housing Preservation
and Development (HPD) and the Community Preservation Corporation
CCPC). For cost estimates based on the number of rooms, calculate the
room count by using two rooms for studios, three rooms for one bed-
room units, four rooms for two bedroom units and five rooms for three
bedroom units.)
Real Estate Taxes: Varies with the type of tax exemption program. '
Most projects in low and moderate income areas will be eligible for
tax exemption. For projects without tax exemption benefits, annual
taxes equal the estimated assessed value of the completed project x the
applicable tax rate.
Insurance: Includes fire and liability insurance. Estimate insurance
costs at $2.50 per $] ,000 of coverage for fire insurance plus $250 per
unit for liability insurance. If possible, obtain an estimate from your in-
surance agent.
Payroll: Varies with the size of the building, location and the services
to be provided. This cost is usually estimated on a case by case basis.
HPD uses the following general guidelines:
Superintendent
Porter . . . ,
$25,000
$]2,000
:i
(1
Superintendents of larger buildings (20+ units) are usually also given
a free apartment. A porter is usually required for buildings with more
than 35 units.
Elevator Maintenance: Includes the cost of the elevator maintenance
contract and an allowance for repairs. Estimate at $4,000 per elevator.
,64
.."
~
Exhibit 3: Pro Forma Income and Expenses
~.S.-
)/_.
DATE
NAME OF PROJECT
SCHEDULE 2 : Pro Forma INCOME AND EXPENSES
RESIDENTIAL INCOME
Unit Type Rent/Mo. Units GrosslYr
One Bedroom $650 6 $46,800
Two Bedroom $750 6 $54,000
Three Bedroom $850 ..A $40.800
TOTALS 16 $141,600
COMMERCIAL INCOME
Gross Rentable SF 1,200
Rent per SFlYear $17.50
TOTAL COMMERCIAL INCOME $21,000
GROSS ANNUAL INCOME $162,600
(less) Residential Vacancy 5.00% ($7,080)
(less) Commercial Vacancy 10.00% ( 2,100)
EFFECTIVE GROSS INCOME $153,420
-5)
EXPENSES
Real Estate Taxes
Insurance
Payroll
Elevator Maintenance
Water and Sewer
Heating
Utilities
Clean ing/Ex tenn i nat ing/S upp lies
Repairs and Replacements
Painting
Legal and Accounting
Management Fee (6%)
Building Reserve (2% of gross)
$0
7,348
18,000
4,000
7,750
10,850.
2,790
2,604
3,680
2,480
3,200
9,205
.J..222
TOTAL EXPENSES AND RESERVES
$75.159
NET OPERATING INCOME
$78.26\
-j)
65
\
I
t
, ,
. ,:
Water and Sewer: Based on frontage or metered water use. Use the
actual assessment or calculate at $125 per room.
Heat: Varies with the age and type of the building and the type of
fuel used. HPD estimates at $150 to $175 per room per year. Build-
ings heated with gas or the best grade of fuel oil are estimated at $175
per room.
Utilities: Apartment gas and electricity is usually individually metered
and paid by the tenant. For common area utility expenses (hall-
ways,basement, exterior), the City uses $40 per room for walk-up
buildings and $45 per room for elevator buildings.
Supplies, Cleaning and Exterminating: Charge for contract with ex-
terminating service and for cost of supplies used by superintendent
and porter; Varies. CPC and HPD use $42 per room.
Repairs and Replacements: Estimate at $230 to $390 per unit depend-
ing upon the extent of the work. Includes the cost of repairing and re-
placing appliances. Gut rehabs and new construction projects will
have lower repair and replacement expenses, at least during the early
years of operation.
Painting: Annual allowance for painting apartments and hallways. Es-
timate at $40 per room.
Legal and Accounting: Covers legal fees for leasing and evictions
and accountant's fees. CPC and l:IPD estimate this cost at $1,600 plus
$100 per unit.
Management Fee; Use 6% to 8% of the net rent (gross income less
vacancy allowance). Note that lenders will require a deduction for this
expense even if your organization intends to manage the project.
Building Reserve: Annual payments into a fund used for future major
expenses such as replacing the roof or the boiler. Usually calculated as
2% to 3% of the gross rent. Total rehabilitation and new construction
projects should use 2%.
I
'\
I
I
~
.,
~
. \
I
il
I
j
I j'
, .:t:
. .
. .
: ;l
, )
.1
E:
,.'
N
"-
lif 1
j':l,\
\i~.l..
I tl~l
I" :i
. ;~~ :_i
Questions To Ask The Lender
Before taking the time to prepare and submit a loan application, contact
prospective lenders and briefly describe the project and the type and ap-
proximate amount of the loan required for your project. Lender
guidelines regarding the type and size ofloans being made are subject
to change. The fact that six months ago XYZ Bank made a construction
loan at 1.5% over prime for a mixed-use project in Brooklyn does not
assure that they would make the same loan today. The overall availabil-
ity of loans, the availability of particular types of loans, and the terms
66
"
.
and conditions of those loans are all subject to change. Make sure there
is a match between your project and the type of loans currently being
made by the lender.
If the lender is willing to consider your application, ask for guidelines
regarding terms and conditions such as the current rate or range of
rates, the commitment fee, bank legal fees, and bank policy regarding
equity requirements and guarantees. (You may want to request a letter
confirming the lenders interest in the project.) Don't be afraid to ask
questions, but don't expect precise answers. Remember that at this
stage, information provided about rates, fees, and other terms will be
very preliminary and subject to negotiation and change during the loan
review and underwriting process. If your loan is approved, the lender
will issue a conunitment letter detailing the terms and conditions of the
loan. Until the conunitment letter has been signed by both parties,
terms and conditions can be negotiated and changed.
Listed below are some questions you may want to ask the lender prior
to submitting an application. (Many of these items are discussed in
Chapter 3.)
Interest Rate
. For the type ofloan requested, what is the current interest rate or range
of rates? For variable rate loans, how is the rate calculated? (Construc-
tionloans are usually keyed to the prime interest rate, variable rate
mortgages are usually keyed to treasury bill rates.)
))
Loan-to-Va/ue and Debt Service Coverage
Ask about the lender's 'guidelines for these underwriting criteria. (For- .
mulas for calculating loan-to-value and debt service coverage are
presented in Chapter 3.)
Fees
For the type of loan requested, what is the range of percentage points
charged as a conunitment fee? (Although commitment fees usually
vary with the type of loan and the perceived level of risk, the lender can
usually provide an estimate that is within a fairly narrow range.) Does
the lender normally charge a lower conunitment fee to non-profit bor-
rowers. Could payment of the commitment fee be deferred until the
loan closing? If not, what is the likely schedule for payment of the fee.
-LJ
67
If 1
(This is an important consideration in planning for the pre-closing ex-
penses you will incur.)
. ~
,
If the loan is approved but does not close, will your organization still
be liable for payment of the commitment fee and other bank expenses?
Other Fees and Expenses
For the type of loan requested, what is a reasonable estimate of bank le-
gal fees? Would the legal work be done in-house or by outside
counsel? (Fees for outside counsel are usually higher.) Ask about the
timing of payments for fees and expenses such as the cost of the ap-
praisal, surveys, and environmental reports. (The loan officer can be a
useful source of infonnation about expenses you will incur and pay
prior to the closing.)
~ !;
\~
i
II
I!!
;,':
Equity Requirements and Guarantees
What is the lender's policy regarding corporate guarantees by nonprofit
organizations? What are the lender's guidelines regarding equity re-
quirements by nonprofits? Would grants and loans be accepted as
equity contributions? What types of expenses previously incurred in
connection with the project would be acceptable as equity? Will the
lender require that the equity be spent prior to release of funds by the
lender?
Nature and Timing of the Loan Review Process
'J !
. ~l
.1 ;,
:;!
What are the steps in the loan review process and how much time is re-
quired for each step? What types of infonnation or documentation will
be required at each step?
:1 !
!:; ,
ti
1:]1
, . .
I" '.
I:' r
i1:i
I '\
\:
!I :1
.'ij
f ;lj
.,
,
Loan Application Checklist
A suggested list of documents and additional information that should
be submitted with the loan proposal is presented below. Some of these
items supplement information about your organization, others are pro-
ject specific. Prior to submitting your application, contact the loan
officer and list for her the items you plan to include in the application.
Ask about any additional items you should include. By submitting a
complete package to the lender now, you will avoid future delays and
frustration.
68
PROFORMA SPREAD SHEET
Instructions for Completing This Attachment
\
J
The FY06 Housing Application, as in the past, requires the developers of rental housing projects to complete and
submit a proforma for the project being proposed. The purpose of this proforma is to help the Housing and Community
Development Commission (HCDC) and staff to make informed decisions on the allocation oflocal HOME Investment
Partnership and/or Community Development Block Grant funding.
All applicants for rental housing are required to complete the attached proforma. This form will provide HCDC with
the needed information in a format that is uniform among all applicants. The following are instructions for completing
this form and some basic "rules of thumb" for your consideration. This form allows for up to 20 years of information.
If you have any questions about the form or need technical assistance please call Steve Nasby or Steve Long at 356-
5230. ***Fields shown in "erey" are for number entry when usine the excel spreadsheet***
Revenues f After YR I a rent escalator of 2% is calculated in the spreadsheet which is consistent with the Fair Market
Rent (FMR) increases for Iowa Cityl
Line 2
Line 3
Line 4
Line 5
Line 6
Gross Rent: Is the total amount of rent generated from the housing units, based on
proposed rent levels (proposed rents may be less than FMRs but cannot exceed FMRs).
Other Income: Include laundry income, application or pet fees, and interest income.
Tenant Contributions.: Include other payments such as rent for parking or storage space.
Gross Income: Is the sum of Lines I through 3.
Vacancy Loss: Line 1 multiplied by 5%.
Effective Gross Income: Line 4 minus Line 5.
Line 1
Operating Expenses fAn inflation escalator of3% is calculated in the spreadsheetl
Line 7 . Operating Expenses: Estimated insurance expense (estimate from an agent).
Line 8 Operating Expenses: Repairs and Replacements ($230 - $390 per unit depending on building age).
Line 9 Operating Expenses: Management Fee (usually 5 - 7% of Gross Rent).
Line 10 Operating Expenses: Property Taxes (estimate may be obtained from the City Assessor's Office).
Line 11 Operating Expenses: Miscellaneous Expenses (legal, accounting, advertising, water\sewer, etc.).
Line 12 Operating Expenses: Reserves (generally no more than 2-3% of gross rent).
Line 13 Total Operating Expenses: Is the sum of Lines 7 through 12.
Net Operatinl! Income
Line 14 Net Operating Income: Is Line 6 minus Line 13.
Debt Service flist mortgage payments for principal and interest onlvl
Line 15 Debt Service for 151 Mortgage.
Line 16 Debt Service for 2nd Mortgage(s) (include the total payments for all junior mortgages on this line).
Line 17 Total Debt Service: Is the sum of Lines 15 and 16 (should not be less than 87% of Line 14).
Cash Flow Available for Distribution
Line 18 Cash Flow: Equals Line 14 minus Line 17.
Equity Investment
Line 18B is the amount of funds being invested in the project by the project developer\sponsor. This does not
include the equity raised through the sale of Low Income Housing Tax Credits as they are accounted for on Line 33.
Cash on Cash Return on Investment fshows return to developer or investors on their eQuity contribution
before taxes or tax credits are includedl
Line 19 Cash on Cash ROI: Equals Line 18 divided by equity investment as shown on the application.
PAGE 2 PROFORMA INSTRUCTIONS CONTINUED
Determinine Taxes
Line 20 Cash Flow:' Carry over the figure from Line 18,
Line 21 Depreciation Expenses: Annual depreciation of property (27.5 year straight-line schedule).
Line 22 Amortization of Fees: Annual amortization of project fees (I5-year straight-line schedule).
Line 23 Principal Payments: Calculate the amount oforincipal oaid on all loans for each year.
Line 24 Reserves: Carry over the figure from Line 12.
Earnines (Loss) Before Taxes
Line 25 Earnings Before Tax: Equals (Line 20 minus Lines 21 and 22) plus Lines 23 and 24.
Taxes
Line 26 Tax Rate: Use a 35% tax rate on for-profit organizations and non-profits use 0%.
Line 27 Taxes Incurred (Saved): Equals Line 25 multiplied by Line 26.
Cash Flow After-Tax
Line 28 Cash Flow: Carry over figure from Line 20.
Line 29 Taxes Incurred (Saved): Carry over figure from Line 27.
Line 30 Cash Flow After-tax: Equals Line 28 minus Line 29.
Total Benefit Analvsis
Line 31 Cash Flow After-tax: Carry over figure from Line 30.
Line 32 Rehabilitation Tax Credits: Calculate full value of rehab tax credits.
Line 33 Low Income Housing Tax Credits: Calculate full value ofLIHTC annually for each of the 1st 10
years.
Line 34 Net Sale Proceeds: In year 20, calculate the estimated future market value of the property by taking
the total cost of the project as presented in this application and compound it by 2% for each year.
Place this amount on line 34.
Line 35 Net Cash Flow After-tax: Equals the sum of Lines 31 through 34.
Line 36 Return on Investment: Equals the Net Cash Flow After Tax divided by the Equity Investment.
i i ! i
~H4 ~1 ~i
11ft - -II J
, I I I 0::
I . : t' > - ~ - -
,.... ,: , 'I
0::
: ttll--
>
..
,
I , , .
I ' , ,
.. 'i, -..) ,"1' - ~i
I 'i ' 'I
41 ~i~l~
, 'I 'I 'I '. " '
,~n~1 ~I r
l-I-I~~~I-rll:rll
~I~ rl -tli 11
flit'... ... ...1,..: M' Mi <<It: flit
ll.-T'nl'
- :1 t-1,-i-!.4-d
, I
It)
0::
I>
8
J!l II
G) ~I
G) .~
.c 21
Cl)D.
"01 ~,
CU'.-
G),t/I
...::::l
c.O
CI):2:
cuS
E el'
...&
~CD
~ CI
D.lt
c
o
;:;
CI.l
e
o
CJ
.s
~ tl
GIll i ~I gj I S
ECGlo~CI.l
8 0 6;,...Ji ..~
.E: ~ 0::' (;1 ~:e
&1J Jt]J ~
'I:
u
III
r!
GI
E
8
.E
~I ~
1::, &
nll~
GI '
C
::J
~, .1' ~~!
,5< Ill, Jj
, (/)1 $, '
ell' U. .,. c:
~ I 81 ~I ~I ~I
c: 81 !ij E 1-, 8J III
~l ~t ~I ~ ~ ~I ~
iil 'cu !ij I 2 I .!!!, gj
o _.E _ ~ ::!j~+:iE+ 0::
I ; ,
CX): ~i
III
GI
Gl1 i
~ 2
~I C1l
o .5
::!i "E
~I ~
.~ .~
~I ~
~I ~
zl z
9..,c!l
~I
~
i
'I "II
.. ..,
, ,:~,'~
i fi
.. -.'!'11-": '
, " '! ~
fi
~
i
~
i
'I '
~
fi
<<It <<It! M
n~i-l-~
I ,fi
~ ~~f_~
I 'iii'
" til ~I
~
Wi
-J
~ ~I
8
.~ ~
(/) 0
zLi:
c!l.c::
- II)
~~
&ll-
.~o
21 a::
0., .c::
.E II)
~~
E .
'1i) c::
~! 0
.E ~!Ii
i~_l--
e: .0)
col ....
....,
o
...
II::
>-
171
.11::
-+>-
'CO 'l' '
. II:: , :
>- , i
1- ---t4-~ ~
~
II::
>-
~
>-
~ '~rl ~
:Ttr
-+-~+~! ~
..,
II::
>-
N
II::
>-
~
~
~ ~ ~
~
i
~
'I
· l ~. <I ~ - :
I
.... !....:........
.1 : · J~
J~ .~I
~ ~
~ ~
.... ...1
,i
I i Q
I, I I 5
. ~I l'~+~ __"1-
'I 'i Q
I ~
~: ~. ~r' ~ _.~~-
i Q
I ~
. I Ii
.... w .,.' ... ...:
-----t-- - ..--}-
'I ~
.l.~:~f
~I .1--1 .__ 1
I I 1
.1 . .f ~._.I 1..__._
r~ .1'
I
W .... wi
--- +
~ ~ ~
*
0
~ +~I
'I ~
I
I
~
,!
i ~
I i
~
Ii
~
Ii
i ~-t-
'" tl ~
~ ~ ~I i ~ )( )( ~ c.. ~!
u., c.. w .!.. !;;: !;;: ~ '" u. i5
u ~ + '" 'It 6 ~ u. u. ::i z U, 0:
If u + + z.
ll! ~ I + "
+ I
"
...
II::
>-
i
I &11 I
'" ~ ~ ",I
~I I ~ ~ ~'
:~I ~I il i ~ ~
~j' u.., lil, '2 .QJ, Q)
.m ~: ~ 0 g fA
~ 8 ~ ~ it &
~.._.._~---
= I 0 or- N ('t) 'lilt
:::i '" '" '" '" '"
'~'I
il ~
~<f.
l:l It)
.9 <'l
CI) ~
~, II::
'E t,1
III I-
W )(
1
~ ~i ~ ~
~ !I ~ i ~
U~t'H
~ I:co 0) 0
'" I "', '" <'l
~ lEl
I
1/1
'iii
iii
c
0(
....
'i
c
Gl
Ie
H
:t:= i=i
al <(I
':1:1 ~I ~
1 'al ~' t,1'
~ C) t- c
~ ~ '~I'''' ~ I
iii Uill
~r~, ~t ~ ~
Dear Fellow Commissioner:
I wish you a Very Happy and Healthy New Year! I thank you for your willingness to serve on
the Housing and Community Development Commission (HCDC) of Iowa City, and for the
time and effort that you spend serving the citizens of Iowa City.
In the next few weeks, HCDC will be involved in crucial stages of the annual CDBG/HOME
funds allocation cycle. This important activity will place greater demands on our time and
commitment as HCDC members than the past few months. And I am sure each and every
one of us will rise to the occasion and deliver, just as past and present members of the
HCDC have always done.
As you know, this region of the state has an alarming shortage of affordable housing.
According to the U.S. Census Bureau, Johnson County has the highest proportion of
households paying an unreasonably high share of their income for housing costs among all
99 Iowa counties. Highest, bar none! It also has the lowest homeownership rate among all
99 counties in Iowa. These facts, to my mind, tarnish this region's reputation of being a
progressive place in the state and nation. The lack of affordable housing places significant
hardships on a large number of citizens of Iowa City and Johnson County: teachers, police
officers, firefighters, nurses, and others. Importantly, the lack of affordable housing is a
major obstacle to local economic growth.
Even though the City of Iowa City distributes about $1-2 million of federal funds for housing
and community development programs every year, these amounts are woefully inadequate
to address this affordable housing crisis. Moreover, if the current trend of declining federal
funding for these programs continues, then in the very near future, there will be far smaller
amounts of federal money to support housing and community development in Iowa City.
Progressive cities around the nation have put in place innovative programs to increase the
supply of affordable housing for their K-12 teachers, police officers, nurses, firefighters and
other citizens. It is time that the City of Iowa City adopted new programs that harness the
power of market forces, government agencies, non-profit entities, of committed volunteers
and of working collaboratively across political boundaries in innovative ways. The HCDC is
charged with advising the City Council on ways to improve the availability of affordable
housing. Therefore, in the upcoming year, I would like the HCDC to consider the following
three time-tested and proven methods of increasing the supply of affordable housing in Iowa
City and Johnson County:
a) An inclusionary housing program. This would require new residential developments
to include a small proportion of affordably priced units. Developers could be given
density bonuses to offset possible lowering of profits caused by the mandatory inclusion
of affordably priced units. Such a program was first adopted by Montgomery County,
Maryland in 1969. Currently, over a 1000 cities and counties across the nation use this
innovative, "no-new tax" and "no additional public money" technique to ensure a steady
supply of affordable units that are scattered across their jurisdictions.
b) A community-investment linked deposit program for city funds. This would require
the City of Iowa City choosing banks for its checking and investment accounts using
measures of community-investment in addition to standard financial parameters. These
measures of community-investment could include factors like number of home mortgage
loans made to low-income and minority households of Iowa city (as a percentage of all
1
mortgage loans), percentage of business loans to small and minority-owned businesses
of Iowa City, etc. As banks compete to win the City's business, those with higher points
on community-investment measures would be better placed in this competition. This
would result in more money being channeled to affordable housing and community
development projects in Iowa City. Much of the data for such measurement is being
collected and reported by all banks to comply with the federal Home Mortgage
Disclosure Act of 1975. It is time that the citizens of Iowa City put this data to good use.
A linked deposit program could be adopted by an administrative decision by city staff.
The City is currently preparing bank selection criteria for placing city funds; so the first
quarter of 2006 would be an appropriate time to press for such a program. This "no-new
tax" and "no additional public money" method of increasing funding for affordable
housing and community development is being used by scores of cities and counties
across the nation. Perhaps Iowa City too can join this group soon.
c) A one-cent restaurant food and beverage levy program. This would require all food
and beverage serving commercial establishments in Iowa City to be charged a one-cent
affordable housing and community development levy for every dollar of customer billing.
While a one-cent levy is a small and almost unnoticeable burden on patrons, the amount
generated by it can indeed be significant, as many communities across the nation have
discovered. For example, in Miami-Dade County, Florida, a one-cent restaurant food
and beverage levy provides over $300,000 annually for the area's emergency shelters.
In the near future the City should seek to work collaboratively with governments and
agencies in the rest of the Iowa City metropolitan area to solve the region's affordable
housing crisis. Finally, I hope that the City would help create a dedicated source of funding
for a newly created regional non-profit agency, the Housing Trust Fund of Johnson County.
I hope HCDC can initiate and be a part of both these efforts.
In the months ahead, as a citizen of Iowa City I plan to work to see these proposals become
reality. As the chair of the HCDC I plan to place these ideas for discussion, debate and vote
within the HCDC. I hope you would join me as a private citizen and as a member of the
HCDC to see that these innovative approaches are implemented by the end of the year. I
know that a majority of the citizens of Iowa City would be supportive of these initiatives. I
have firm faith in the wisdom and leadership of our City councilors. I know that they too
desire to alleviate our area's affordable housing crisis and increase economic growth.
Therefore, I am optimistic that by the end of the year one or more of these programs would
be in operation. I look forward to a challenging, exciting and very rewarding year ahead!
Yours sincerely,
Jerry Anthony
2
'~~I l()
a ~
Oi
'~~ ~ V)
1:141 i ~ e
~
~I 1 -a '-' ....
OJ t1l ::J
fie. I ro ~ '-'
'~l[11 ~ -a <'l -0
Cl. ....
~'I g ::> ;S t1l
llcii Z~ 0
.~ .Q
E:Oi ~ c1
CO
l() ;S
C
M
a::
::t:
I
V)
V)
e
'-' ....
t1l ::J
~ u
> "... "E
;S 111
0
.~ .Q
I
CO CIl
It) ;S
C
M
a::
::t:
(/)
Q)
-
ns
E
-
(/)
W
s::
o
-
ns
()
o
u
(\)
t5
m
c
~
c c c c c
-cgoo;;
51)1)1)1)
u..LOOClO'<t
~~go~
:::Jr0r0,.-1'-
E ' , . .
...;Jt;Jt(%~
0.."""
u..r0'<tLO(D
(!)g888
CCNNNN
R>->->->-
"",LLLLLLLL
<:t:
C!>
[Xl
o
U
tD
o
o
N
>-
U.
~ (D 0 0 LO 0 (J) (D 0Cl ,.- r0 I'- -.;j' 0Cl r-- ,.- N 0 LO ill (D ill r0 ,.- CO '<t
.....
(/) 0 N 0Cl 0Cl LO (J) 0 N LO LD "t 1-- I'- ill -.;j' (D 0Cl 1-- (<) 0Cl (J) 0 (D III ,.-
~ r0 LD I'- 0 LO N (D ill 0Cl (D 0 1-- (D 1'-. (J) I'- I'- LO 1-- (J) (D "-, 0Cl lD (J)
(/) I'- (D ,.- 0Cl 0 "t r0 CO 0 "t (J) I'- (D 0 ,.- (D CO 0 CO (D CO I'- ..f 0
CO (D I'- 0Cl '<t N LD ill (D ..- LD r0 LO r0 ,.- ,.- "l' CO N ill N 0 t-- OJ
(/) {{j {{j ({j r0 N if( if( ,.- r-- M V) (I) N LO ,.- V) N (/) CO N
0 , , {{j , (/) (/) tI( c0 , , if( ({j V) if( (/) , (/) (/) , - (/)
....J , , , CO , , , , I C') "t ,
if( V; (/) V;
,
(0 ,;J
o
o
N
>-
u..
0 'm ,.- N 0 6 r0 (!:r.'~F" W
,.- 0 r0 N ,.- "t 0 r0 LO LO r0
0Cl to 0 LO r0 0 0 1'-. (J) 0 ..- ill "t. r0 W LD "l'. CO 0Cl r0 OJ
(/) OJ 0 I'- 0 ,.- LO (J) N I'- N 0 "l' "l' r0 (J) r0 N LO r0 (J) ,.- to LO
1'- W LO 0Cl ,.- 0 "t W "l' OJ 0 LO r0 "t ...... (J) I'- r0 I'- 0 "t III W
VI (f) {{j ,.- {{j r0 N {{j (f) r0 lD {{j (f) ,.- ...... ,.- '<t ,.- (f) N CO "<t N
0 , , lA , V; V; , , if( <0 , , lA lA V; V; lA I <.I( tI( . - If}
....J , t-- , , , N"<t ,
If} {f) if} {f)
, , , ,
lD
o
o
N
~
U.
(/)
~
(/)
(/)
-0 0
CO CIl ....J
l() ....
C '-'
M t1l
t::
a:: CIl
::t: V)
111
,.- (J)
~~~~~~~~~'<tMLO~~~~~~co
NLDNNNLO'<t(D"l'r0lD(J),.-(J)COLDCOr0ill
I'-LO"tI'-COOCl"tLOr0I'-CO'<tr0NOI'-NNill
~W~WN~W~~O~ww~~ ~~~
I I <1 ~ ff(f.I( f I if( r0U:>- I I f/(Y( ift U(U( I
lA {f)
I ,
WON
(J) 0Cl r0
0Cl r0 N
,.- ,.- (f)
Y[ti(l
t--LD
1ll(J)
'<tt--O
I'-M"l'
LOON
. - lA
N"<t ,
lA {f)
, ,
Ill0r0r0r00'<t,.-0Cl1'-"-MNI'-(J)WillN,.-LO(J)LOI'-(J)CO"-
o r0"t(J) (DLONill CO...... LOt--r0,.-LON(J)"tMI'-"tr0W LOCOW
o (J)N"-NOWillOI'-MNI'-I'-OClI'-LO"-I'-OI'-r0LO"l'lDl'-
N~ill~mill~~ill<0<0~N~0N<0mroomm~ro~co
~NN"-NO"-O"tNMt--WLOI'-r0(J)W(J)WLOW(DLDmM
u.OClWWOClN,.-LO(DLO(J)NLOr0'<tC'J(J)OClMI'-......LONNCOI'-
{{j{{j~{f)<0N{f){{j~~OO{{j{f)~~~~~{{jN~{{jm~N
(f) {{j{{j {{jr0t-- {f){{j{{j{{jlA {{jlA N"t{{j
{{j {f) if} {f)
E Z~~~~~~~~~
I/)
~~~~~~~~~<t:~~
(f)
::,:
2
~ 2
~ <t:
>- 0 0::
wf- 0:: (f)~
f-Z ~~ ~ ~S
i: wtlJ::>>-WZ (f)LL LL
-~ >-Of->-OOf-~~ ~O::>f-(f) ~~~C
O~ ZZ::>~ Zf-O ....J~....Jo::W >-0 f-O>~
Z~ ~W~LLZ::>(f)Z ~~mOZW>-f-O(f)~ 0
~> mmI~OO LLO::~ -::>~U....JWOf-~(f)
~>~~IW....Jf-O~....J o::o::O~OOO 0:: (f)....J~
CIl-~O f-o::f-....J ~~(f)~~ZW2::>~~Wf-~~(f)
EG~Z~::>O::~~~Of-woo::>>(f)m~O~~~f-Z
~~~~~~~~~5~~~~~8~~~Q~~~Q~:2
\
V;
<Ii
G
$:
o
c:
(l)
E
Q
o
Q)
:,.
Q) OJ
<:J ...
(l) 0
Q: ci
<:J.2
c: CO
<D C
r I
o _
J::-:-:
...... a.
o ::::
c: ..c
S2
CO
G
o
V;
V;
<::(
<Ii
c:
2
<D
:<::
;?
Table of Contents
lntroducti on. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Meetings Generally. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2
Public Notice and Agendas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4
Meeting Procedures and Minutes. .. .. . .. ... .. .. .. .. .. .. .6
Electronic Meetings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Closed Meetings Generally... . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Notice for Closed Meeting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Closed Meeting Procedures and Minutes. . . . . . . . . . . . . . 13
Closed Meeting on Personnel Issue. . . . . . . . . . . . . . . . . . . . 15
Enforcement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 7
Iowa League of Cities. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . .20
*******PROVIDED BY IOWA LEAGUE OF CITIES*******
Published August 2005
Open Meetings
Questions & Answers
The purpose of this publication is to provide general guidance on
the Iowa Open Meetings Law, Code of Iowa Chapter 21. This law
requires meetings of governmental bodies to be open to the public.
Cities often have questions about the applicability of this law to
day-to-day city business. The infonnation contained here is
designed to be general in nature and does not constitute legal
advice. If there are specific legal questions about open meetings
requirements, the city should contact the city attorney. The Iowa
Open Meetings Law favors openness, so situations where the
applicability of the law is unclear should be resolved on the side
of openness.
Meetings Generally
The Iowa Open Meetings Law applies to governmental bodies,
including city, county and state government and others, such as
some nonprofits. Governmental body refers to a "board, council,
commission or other governing body." The law also applies to "an
advisory board, advisory commission, advisory committee, task ,
force, or other body created by statute or executive order of this
state or created by an executive order of a political subdivision of
this state to develop and make recommendations on public policy
issues." For cities, this law applies to the city council, as well as
entities such as the planning and zoning commission, the board of
adjustment, library board and the park and recreation commission.
A meeting is "a gathering in person or by electronic means, formal
or informal, of a majority of the members of a governmental body
where there is deliberation or action upon any matter within the
scope of the governmental body's policy-making duties."
To have a meeting, a quorum (or majority) of the governing body
must be present and there must be discussion or deliberation on
city business. Vacant positions must be included when calculating
the number of council members that must be present for a quorum.
Examples: If a five-member council has two vacancies, it needs a majori-
ty of the jive (all three current members) to be present in order to hold a
meeting. If a regular meeting is held and only two nlembers of a five-
member council attend, the meeting cannot take place.
A gathering of members of a governmental body for purely ministerial
2
or social purposes when there is no discussion of policy or no intent to
avoid the requirements of the open meetings law is not a meeting.
Example: Three council members of a five-mentber city council attend the
same high school football game. They do not need to avoid each other,
but should not get together during the game to discuss city business, this
VI/ould constitute a meeting.
Q: Are committee meetings that include the mayor and two
council members supposed to be open meetings?
This question has to be answered on a case by case basis. Because
the law applies to bodies "created by an executive order of a polit-
ical subdivision of this state to develop and make recommenda-
tions on public policy issues," this may include committees estab-
lished by executive order of the council.
Example: A city council passes an ordinance to establish a budget com-
mittee, consisting of the mayor, two council members and the city finance
officer. It may be argued that this con'lmittee would be subject to open
n'leetings requirements and an opinion should be sought ji"om the city
attorney on whether or not that is the case.
Q: Are work sessions or retreats where the council discusses,
but does not take any action on items, subject to the open
meetings requirements?
Yes, if a majority of the council is present and they are discussing
or deliberating on city business. The fact that the council is delib-
erating on city policy is enough to make the gathering a meeting,
it is not necessary that they take action or vote.
3
Public Notice and Agendas
Meetings of governmental bodies must be preceded by public
notice. Public .notice is given by delivering a copy of the public
notice to those in the media who have requested it and by posting
the public notice in a prominent place in the city office. Many
cities post notice on a bulletin board in city hall or on the door. If
the city does not have a city hall, they can post notice in the build-
ing where the meeting will be held.
Public notice must give:
- Time, date and place of the meeting
- The tentative agenda for the meeting
Public notice must be given at least 24 hours prior to the meeting.
Q: When posting the agenda, what needs to be listed and in
how much detail?
The agenda should list the items the council intends to discuss and
intends to act upon. There is no clear definition on what is enough
information, therefore, if in doubt, give more rather than less
information. Whether or not the detail provided in a tentative
agenda is sufficient must be viewed in the context of surrounding
events, therefore exhaustive detail is not required.
Example: An agenda item of "water" may not be enough information to
tell the public that the council will be discussing an amendment to an
ordinance increasing water rates. On the other hand, it is not necessary
for the agenda to include the wording of the entire ordinance.
4
Q. Can cities hold meetings with less than 24 hours notice?
Yes, if it is not possible or practicable to give 24 hours notice. The
law requires as much notice as possible. If an emergency situation
requires a meeting with less than 24 hours notice, give as much
notice as can be given, but in any event, give at least some notice.
The city must justify its reason for not giving proper notice in the
minutes of the meeting. The city must also justify its action if it'
holds a meeting at a place not reasonably accessible or at a time
not reasonably convenient to the public.
Example: A levee breaks and the city is being flooded, the council/nay
need to have an emergency meeting to hire a contractor to come in and
repair the levee imnzediately. The minutes of the meeting need to explain
why the council held a meeting without providing 24 hours notice.
Q. Can the council amend the agenda once the council meet-
ing has started?
It is not advisable to amend the agenda after a council meeting has
started. The council shall provide 24 hours notice to the public on
what will be discussed at the meeting. If an item is added to the
agenda less than 24 hours prior to a meeting or at a meeting, the
public may contend that proper notice was not given.
Example: During the public forum, a citizen complains about dogs running at
large and suggests the council pass an ordinance at that meeting to address
the problem. The mayor or presiding officer should defer the discussion and
action to the next council lneeting or suggest a special meeting be called if
there is an immediate need to address the issue. It is not a good idea to move
forward with discussion and action on an item that was not on the agenda.
5
Meeting Procedures and Minutes
A meeting occurs when a majority of the council gathers to dis-
cuss city business. If a quorum of members of the governing body
is not present, a meeting cannot be held. Most city attorneys also
feel the requirement for a quorum is extended to public hearings.
Q: Can a council member who will not be present at a meeting
send in their vote with another council member or tell the
clerk to record their vote a certain way?
Although state law does not explicitly prohibit proxy voting, it is
not advisable for a council member to vote by proxy. Sending in a
vote and not participating in the discussion at a meeting denies the
public access to whatever information or discussion led a council
member to vote in a certain way. Additionally, had a council mem-
ber attended the meeting, they may have been presented with
information that would have caused them to vote differently.
Example: Council member Smith will not attend the council meeting but
tells council member Jones that the city clerk should record Smith as a
"nay" vote for the water rate ordinance. The public was not privy to any
discussion or information that led Smith to vote "nay", so this may be
problematic under the requirements for open meetings.
Q: The minutes have to record the vote of each council mem-
ber. Does this mean a roll call vote is required on each action
of the council?
The procedure to record the vote of each member is to either take
6
a roll call vote or to determine each member's vote in some other
manner. The method is not as critical as the fact that each council
member's vote is recorded.
Example: Some cities n1ay use an electronic voting system that records
each council member s vote. Some mayors or clerks may be adept at pick-
ing up on how each council member voted during a regular voice vote or
may request that council members raise their hands to vote.
Q. Do citizens have to be allowed to participate in a meeting or
can cities have rules regulating the public attending a council
meeting?
The public can use cameras or recording equipment to take pho-
tos, movies, recordings, etc. of any open session. Although many
cities provide time for public input, it is not a requirement of
council meetings. It is advisable to provide a time for public com-
ment in order to allow citizens to give feedback and have input in
their city government. There are specific situations that require the
city to hold a public hearing (prior to adoption of the budget, for
example). The purpose of a public hearing is to solicit public input
on the proposed action, so receiving public comment is a require-
ment. Cities can make rules of conduct for their meetings to
ensure the meetings are orderly. The mayor or presiding officer is
responsible for enforcing these rules.
Example: A city might offer a {public con1ment" agenda iten1 and limit
each person to five minutes, requesting that they state their nalne and
address, etc.
7
Electronic Meetings
A city can hold a meeting by electronic means if it is either impos-
sible or impractical for a council member to attend in person and
only if it complies with all of the following rules:
- Public access to the conversation of the meeting has been pro-
vided to the extent reasonably possible.
- Minutes are kept of the meeting and explain why a meeting in
person was impossible or impractical.
Example: On a five-member council, one city council melnber is out of
(Oll1n on business, one council member is ill and the council has one
vacant seat. The city cannot hold a meeting without a quorum and they
need to meet so they can conduct city business. In order to have a quo-
rum, the council member that is out of town calls in and participates in
the meeting via speakerphone. The minutes must explain why it was nec-
essary to hold this meeting electronically.
Q: When council members communicate with each other by
email, is that considered a meeting?
If a majority of council members are simultaneously communicat-
ing electronically about city business, a person may challenge that
they are actually conducting a meeting and therefore violating the
open meetings law if the meeting was not announced and open to
the public. City officials need to be very cautious engaging in
electronic communications, whether that be by phone or email.
8
Closed Meetings Generally
A closed meeting is a meeting of a governmental body that is
closed to public access, meaning that neither the general public
nor the press can be present at that meeting. A city councilor
other body can close a meeting only for very specific reasons
described in law. The law favors openness so before closing any
meeting, the city should consult the city attorney.
The Code Section 21.5 allows for eleven reasons to hold closed
sessions. Some of the common reasons used by cities include: to
review or discuss records which are required or authorized by
state or federal law to be kept confidential, to discuss strategy with
counsel in matters that are presently in litigation or where litiga-
tion is imminent and specific law enforcement matters.
Cities can also close a meeting to discuss the purchase of particu-
lar real estate only where premature disclosure could be reason-
ably expected to increase the price the governmental body would
have to pay for that property. The qualification with this exemp-
tion is that the minutes and the tape recording of a session closed
under this paragraph need to be available for public examination
when the transaction discussed is completed.
The most common reason cities hold a closed meeting is to evalu-
ate the professional competency of an individual whose appoint-
ment, hiring, performance or discharge is being considered when
necessary to prevent needless and irreparable injury to that indi-
vidual's reputation and that individual requests a closed session.
9
Q: Are there any meetings of a governmental body that are
exempt from the open meetings requirements?
Yes. A meeting to discuss strategy in matters relating to employ-
Inent conditions of employees of the governlnental body who are
not covered by a collective bargaining agreement under Code
Chapter 20. A city considering holding a meeting of this sort
should seek the guidance of the city attorney.
Note: This exemption is only for the purpose of discussing strategy. Therefore,
action involving employment conditions must be taken at a meeting that complies
with the open meetings requirements. For this purpose, "employment conditions"
means areas included in the scope of negotiations listed in Code Section 20.9.
Examples: Insurance, holidays, leaves of absence, shift differentials, over-
time compensation, supplemental pay and seniority.
Q. Does the city clerk have to be present during a closed ses-
sion to take minutes?
No. If the clerk is not present, the governing body must appoint
someone to perform this function.
Q: Can persons other than members of the governing body be
present during a closed session?
Yes, provided that governing body authorizes their presence.
Q: Do persons other than members of the governing body
have an absolute right to be present at a closed session?
No.
10
Notice for Closed Meeting
The meeting must begin in open session with a call to order and a
roll call. In order to go into closed session, there must be a motion
to hold a closed session that is approved by two-thirds of the
members or all those present. The minutes must record the votes
of individual council members on the question of holding a closed
session. In addition, the motion and minutes must state the exemp-
tion under Code Section 21.5 that permits a closed session.
No business can be discussed during the closed session that does
not directly relate to the specific reason for the closed session.
Upon completion of the closed session, a motion and vote must be
taken to end the closed session and return to open session. Final
action must be taken in open session.
Q: Does a closed session have to be listed on the governing
body's agenda?
Generally, yes. The legislative intent underlying the Iowa Open
Meetings Law is that this law should be construed or applied in
favor of openness. Therefore, if a closed session is anticipated, the
fact that there is to be such a session should be made known by
setting forth the topic for the closed session and the fact that a
closed session will be held on the agenda.
11
Q: Does every closed session have to be listed on the govern-
ing body's agenda?
No. If, during an open meeting, a topic comes up which may be
considered during a closed session and which could not reason-
ably have been anticipated at the time notice of the agenda was
given, then it would be appropriate to proceed to closed session
from the open meeting.
12
Closed Meeting Procedures and Minutes
When holding a closed session the governmental body must keep
the following:
- Detailed, written minutes of all discussion, persons present,
and action occurring during the closed session.
- A taped record of the entire closed session.
The minutes are sealed and must be kept by the governmental
body for a period of at least one year from the date of the meeting
at which the closed session was held.
Q: Is there any situation which will result in the sealed
detailed minutes and the tape recording of a closed session
becoming unsealed?
Yes, but only if a lawsuit is brought to enforce the provisions of
the Iowa Opening Meetings Law, then upon order of court, they
must be unsealed and examined by the court. The court has to bal-
ance what adverse consequences may result from public disclosure
against the value of information that is contained in the minutes or
on the recording to determine whether to disclose any portion of
the closed session.
Q: If a member of a governing body is absent and the govern-
ing body holds a closed session, can that member listen to the
tape recording of the closed session?
Yes. The member who is absent still remains a member of the gov-
13
eming body. The member has a right to be informed of discussion
and action that occurred during his or her absence. The fact that the
detailed minutes and tape recording of a closed session are not
open to public inspection does not preclude a person who would
otherwise have been privy to such records, except for an absence
from later listening to the tape or reviewing the minutes.
Closed Meeting on Personnel Issue
One of the most common reasons cities hold closed meetings is to
discuss a person's appointment, discharge and performance. In
order to hoJd a closed session for this reason, the person who is
being discussed must request a closed session. The city may want
to alert the person of this privilege or the individual might
unknowingly waive their opportunity for a closed session.
Q: If a person who may request a closed session in fact makes
such a request, must the request be granted?
No. The law provides that a governing body may hold a closed
session for certain specific purposes. It does not require that such
a session be held.
Q: Can job interviews be conducted during a closed session?
Yes. However, the person being interviewed must request the
closed session.
Example: The city plans to hire a city administrator. The city has nar-
rowed their list of candidates to three they plan to interview. The city may
alert the candidates of their option for a closed session. If the candidate
requests a closed session for the interview, the city could proceed with a
closed session.
15
Q: When a closed session is held to discuss employment issues
involving a specific employee, is the employee required to be
present during the session?
Not all attorneys agree whether or not the employee requesting a
closed session needs to attend the closed session, so if a city is
presented with this situation, they should seek the guidance of t~e
city attorney.
Q: Can a closed session be held to discuss salaries in general
for the upcoming year?
No. There is no express authority in the Iowa Open Meetings Law
for such action. Therefore, under the policy prescribed by the Iowa
legislature, this matter must be resolved in favor of openness.
Enforcement
The courts enforce the Iowa Opening Meetings Law. Any
aggrieved person, the attorney general or the county attorney can
bring a lawsuit to enforce this law. The burden is on the city to
prove they complied with the law.
Q: What happens if the court finds that there has been a vio-
lation of the open meetings requirements?
The court must assess each member of the governing body that
participated in the violation an amount not more than $500 and
not less than $100. Each such member must be ordered by the
court to pay all costs and reasonable attorney fees to the party who
successfully established a violation of the law.
The court must void any action taken in violation of the law if the
lawsuit for enforcement is brought within six months of the viola-
tion and if the court finds that the public interest in enforcing the
policy of the Iowa Open Meetings Law outweighs the public inter-
est in sustaining the validity of the action taken in the closed ses-
sion. The court cannot, however, void the issuance of bonds or
other evidence of indebtedness of a governmental body if a public
hearing, election or public sale has been held regarding the bonds
or evidence of indebtedness.
If a member of the governing body has engaged in a prior viola-
tion of the open meetings requirements for which damages were
assessed during the member's term, the court must issue an order
17
removing the member from office.
The court may also issue a mandatory injunction, punishable by
civil contempt, ordering the member of the governing body to
refrain fron1 any future violations of the open meetings require-
n1ents for one year.
Q: Can a person charged with a violation of the Iowa Open
Meetings Law claim they did not know the provisions of the
law?
No, ignorance of the law is not a defense.
18
Q: What are the defenses against being held individually
liable for violations of this law?
1. Voting against the closed session. This demonstrates the
importance of recording the vote of each council member.
2. Had good reason to believe and in good faith believed facts
which, if true, would have indicated compliance with all the
requirements of this chapter.
3. Reasonably relied upon a decision of a court or a formal opin-
ion of the attorney general or the city attorney. This demon-
strates that cities need to obtain a written opinion from the
city attorney before holding any closed session.
Q: Do members of governing bodies need to be provided with
information about the Iowa Open Meetings Law?
19
Yes. The appropriate commissioner of elections must
provide this information to the elected members of
governmental bodies. Also, the authority that
appoints Inembers of governing bodies must pro-
vide this information.
Example: The county auditor must provide this information to
mayors and city council members. When city councils make
appointments to boards or commissions or to fill a vacancy on
the council, they must provide this information to their appointees.
Iowa League of Cities
The Iowa League of Cities is a nonprofit association of city gov-
ernments in Iowa. The League provides a variety of informational
resources to its members.
Municipal Leadership Academy (MLA)
Tailored to newly elected officials, the League's Municipal
Leadership Academy prepares attendees for participation in city
govermnent. This intensive, four-part series gives new leaders the
tools they need to succeed in public office.
Web Site
The League's web site,www.iowaleague.org, is an excellent
resource for cities. It contains legislative infonnation, frequently
asked questions, a database of grants, a calendar of events, work-
shop information and League publications. Contact information
for League staff and links to state agencies, the Code of Iowa and
other useful sites are also included.
Technical Assistance
Once a city official takes office, the Iowa League of Cities will
provide assistance by answering questions and providing informa-
tion. Membership services staff is available to answer questions
from cities of all sizes facing a variety of challenges.
Ongoing Training
'The League holds "a variety of training events throughout the year.
Annual workshops cover city budgets, issues facing small cities
and a variety of other topics. Each fall, the League holds an annu-
20
al conference offering the most current, relevant information to
city officials.
Advocacy
League staff advocates city policy positions to members of the
Iowa Legislature, and monitors federal issues. City officials
should participate in advocating local government positions.
League publications help local officials stay abreast of important
issues, making them informed voices when speaking to legislators.
The City Voices emaillist is another valuable tool for sharpening
advocacy skills. The League's annual Legislative Day invites city
officials to the Capitol to meet legislators en masse after receiving
an update on key issues. .
Publications
The League provides a variety of publications to cities. Cityscape
is a monthly n1agazine with articles designed to inform and edu-
cate city officials. During the legislative session, the League pub-
lishes a biweekly Legislative Bulletin. A biennial directory of
cities in Iowa, a municipal salary and benefits survey and an annu-
,al report are also available.
t
~
'"
~.
'l
LOCAL INITIATIVES SUPPORt CORPORATION
GOOD DESIGN
The Best Kept Secret in
Community Development
.'):~.0H("')Y0''}~~.. ("\3'
. . ~> ')~ .~..~ ~
~)~' ~"j' '. ';' : . ,~i,''"'' f': i!" !~
.~..:";;""'."".".'~.. ...,,~...,. _.,i..;:ooI.l..,..:,.......~ .t"..> '('...."j.~f ......'.---'.....~.....;'
~.i .,'''. ,~" '..' ""-1.,...1"
- LJ ,.,. . .' .. ..," ...~ """'" . '~
:,',', ....... C,.' ' ..' ' :"",,.:.. ,'. '~)
." <; i,.,}.. .r
fr' r~-\)I') r--'~" ,~'$i..J r r ,I-
. ':^__L~;',,~ 'kV..~ 1.. \,;1/' ~.: C)
...'" ..l."".. '..;r. :," '. . ..t' . -." . ~~'.'~'. Li... :-.DI"
, , 1 ,., '"J""'\.,..
,::'t~:C , : ~':'~r~ . ~;~J "e
1ff!!J'70 'P~t~'>'~;)c~ ,I)
/..~ ",.,,, "11' . .,J
I . r Ie. '. ' ". . .. fll
'~"(...J~'~{'J''''~;:l.(~.., ..... .. .(~<j
,1 .' ..' '. L,+~1 ..\.,/~\'r'~,.., .. '.r'~~ ',,,,1
\;.,.A~' .....-... \ ....} ,...r.!;';..;....,.;,}... ~'....~i,.'.\,"\,",.",..I'\,."i ',,' .
. ~
cltlgroupJ
~Q,
Hi!IpiJtlf lJeighboP'$
build '(Jlnm-!fJlit~$
i:'
t
GOOD DESIGN
The Best Kept Secret in C~mmunity Development
Published by Local Initiatives Support Corporation
November 2004
Written by Deane Evans. FAIA, and Jody Beck
New Jersey Institute ofTechnology Center for Architecture and Building Science Research
......
cltlgroUpJ
ACKNOWLEDGMENTS
L1SC wishes to thank the Citigroup Foundation for sponsoring this
paper and generously supporting LISe's Organizational
Development Initiative and its Research and Evaluation unit.
Citigroup, the preeminent global financial services company, does
business in more than 100 countries, providing consumers,
corporations, governments, and institutions with a brood range of
financial products and services, including consumer bonking and
credit, corporote and investment bonking, insurance, securities
brokerage, and asset management. The Citigroup Foundation
focuses its grants primarily in three areas: financial ed\Jcatlon,
educating the next generation, and building communities
and entrepreneurs.
u~
.~~.
b",rkI~m4~1i.(li'j
L1SC is also grateful that the U.S. Department of Housing and
Urban Development and living Cities: The Notional Community
Development Initiative helped fund this publication.
The authors and publisher are solely responsible for the accuracy of
the statements and interpretations. contained herein. Such
Interpretations do not necessarily reflect the views of Citlgroup, the
federal government, or Living Cities.
1
i-
Many people think that to be affordable, housing must sacrifice "frills" such as
good design. Indeed, affordable housing projects often seem to be developed as
if the goal was no design, or as little as possible, without regard for what the
buildings look like, how they're situated, their relationship to open space, or any of the
other elements that define good design.
Great design is
But good design can be the critical difference between an affordable
development that succeeds-one that satisfies its residents and
neighbors, enhances the community where it is buUt, and remains a
stable part of that community long after the ribbon is cut-and one
that doesn't.
often considered
a luxury found in
expensive houses
LISC supports the notion that good design can be a ~otent weapon in
overcoming the strong, increasingly well-organized opposition that
faces affordable housing developments across the country. While much
of this opposition is self-serving and shortsighted, legitimate concerns
may exist about the design quality of proposed developments. A legacy
of large, poorly designed affordable housing projects has been firmly
established in the public imagination, and this is what opponents
often envision when a new development is proposed.
with high-priced
architects.
This perception, coupled with the low level of design quality that characterizes much of the
nation's affordable housing, perpetuates the resistance to new affordable housing; decreases
neighborhood stability; and diminishes rather than expands the opportunities for creating
high-quality, affordable housing.
The most direct way to fight this perception-and to overcome at least one key argument of
affordable housing opponents-is to strive for good design in every development. Indeed,
higher design quality may be the single most cost-effective strategy currently available to
improve the quality, asset value, and acceptance of affordable housing. Housing
development funds are not likely to rise; land acquisition and construction costs are not
likely to fall; and regulations are not likely to become less burdensome. In the face of these
constraints, better design is an effective option for improving the quantity and quality of
affordable housing in America and leveraging limited resources, such as U.S. Department of
Housing and Urban Development (HUD) HOME dollars, that support this work. This isn't
just a theory. Examples of well-designed, highly effective affordable housing-many
supported directly by LISC-are proving it right now in communities across the country.
2
..
DAYBREAK GROVE
City officials encouraged innovative design
os 0 way to make sure that this 13-unit,
low-incame housing development in
Escondido, Calif., didn't look "Iow budget."
The result is a showcase project-featuring
striking forms and colors combined with a
traditional, bungalow style courtyard plan-
that works well for residents and neighbors.
DovIdslKlllory
LISC recognizes the benefits of good design and will continue to provide access to
information, tools, and training that can help community development corporations
(CDCs) produce well-designed developments.
This publication describes what good design is, why it's essential to affordable housing that
works, and who's responsible for making it happen. The informatio!l here, and much more,
is part of an important new tool, the Affordable Housing Design Advisor, which HUD
created with help from LISC and other leading national community development
organizations. The Affordable Housing Design Advisor is a website, a design .tool, a
database, and a unique resource of real-world examples and experience that can help any
community developer achieve better-designed affordable housing (see sidebar on page 6).
3
Good design is essential
Good design Is not an amenity that gets added to a
development If s\.!ffl~l~t funds exist or, more likely.
}".""
gets cut to reduce CoSts. From the ground up. good
design Is an essential part of any successful affordable
housing development. Paths and walkways that are
pleasurable to use; a vlsual1y complex and Interesting
building fa~ade; open spaces designed like "outdoor
rooms;" unit layouts that give al1 rooms access to
daylight and views; parking plans that minimize
conflicts between vehicles and pedestrians-these and
many other design elements contribute directly to the
quality and livability of a development. They are, In
fact, the basic fabric of successful places and
communltles-a fabric that c~m exist only If good
design Is a central component of the development
process.
OPEN DOORS
Everything in this 64-unit, family housing
development in Los Gatos, Calif.-from the
placement of the units along the
meandering pathway, to the use of "pop-
. out" windows, to the balconies and fenced
porches-is well designed. The result is a
project that transforms what are basically
very simple buildings into a development
that is something special-for residents
and the surrounding community.
!
}
'~l..,..,.,
.' .
.", ".'
. ,-,~"",.,:..,. :. - ..,
,_" . ",;';1<';';""';14-.
4
Good design is more than aesthetics
The common assumption Is that good design basically
means a better looking, more aesthetically pleasing
building. While aesthetics Is a component of a well-
designed development. It Is by no means the only-or
even the most Important-aspect. On the contrary.
quality design encompasses a wide range of
considerations that go well beyond what a building
looks like. These Include access to light. air. views.
pleasant circulation patterns and spaces that are safe.
easy to maintain, and suitable for the activities that
take place In them. Successful1y Integrating all these
considerations Is necessary to create affordable
housing that beneflts Its residents and adds lasting
value to Its community. Beauty (aesthetics) real1y Is
only skin deep. Good design goes much deeper-to
the heart of successful community development.
..
.'
Good design requires 0 good
design process
The word "design" can sometimes be confusing. It Isn't
just a sketch or a blueprint. Design Involves a process
that unfolds over the full life of a development and Is
Intrinsic to Its success or failure. The process wl1l
Involve not only the architect, but the developer, the
manager, the community. even, In the best cases, some
of the people who will be living there. The result can
be anything from a bench or a fountain to a park or an
entire development. How well or poorly the result
works for its users and Its community Is a direct
function of how well (or poorly) the design process
has been managed.
While It's not possible for community developers to
simply go out and buy good design and add It to a
development, it Is possible (and necessary) for
community developers to manage the design process
so that a well-designed development Is the result.
LYTON PARK PLACE
Simple components-traditional massing, bay windows"
front porches, and horizontal siding-help these affordable,
single-family homes in St. Paul, Minn., fit in with their turn-
of-the-century neighbors.
"I
Good design is fun and interactive
Many community developers may consider the design
process-and even the design profession-to be
daunting and Intimidating. As architects, even we find
the language of design confusing, hard to understand,
and occasionally Irritating. That's unfortunate, because
the process of design Is actually a lot of fun. It Involves
making choices, solving ~roblems, and Interacting
with a variety of people-Inside and outside the design
team-all leading to a real building or set of buildings
In the real world.
How will these buildings be entered? Will the
entrances be at ground level or have steps and front
porches? How high will the porches be and how many
steps will It take to reach them? Will they be wide
enough for several people to sit comfortably? What
type of railing wl1l the porch have? Can you see
through It and over It? Can people see you? What will
the porches and the steps be made of? What color wl1l
they be? Where will the front door be located and
what will it be made of? WI1I the whole assembly-
steps, porch, railing, door-say "welcome to my
home?"
Asking and answering such questions Is what design Is
all about, when It's done right. 'The focus is on people:
how they live, work, play. and socialize, and how
buildings can be crafted to help them do all these
things better. If It sounds like an Interesting process,
that's because it is. Just ask community developers
who've tried it. The process can be extremely
rewarding as well, and every member of the
development team-not just the designers-should
demand the opportunity to participate In it.
5
The Affordable Housing Design Advisor is a new
web-based tool-created by HUD with funding and
support from Lise and other national community
development organizations-that can help the
developers of affordable housing better understand
the value of good design and how they can achieve it
in their own developments. Based on real world
experience and case studies of successful
developments from all over the country, the Design
Advisor contains a wealth of information, including: a
gallery of more than 80 case studies; a detailed, 20-
step procedure for ensuring that design excellence is
built into every step of the development process; and
a compendium of more than 60 design
considerotions-ideas that can help guide and enrich
the design process.
"'10,_11__
~,~
'..,....'.i........... ......
__~....--.'.....~1It....
_...._,.. ..tiIIIiIitl...........
........ ~~_...
---...............
........-t....--,- ...__"""..
.... ..............".. ... ".I-lk..
... . , '"
,~ .
:'fi1~""I'11
~'" ~,,~~
;-:,:'\ .)~ '_~,_'1':~_.',ia'
""oi_.' ..
.....-
~"':.'l:"
......JPl '. ;'1~
.......... ..... . .' '.'
IN!I.............'.,.. n...,
-,llf 11~;
~
MT"
tl",~'~;(;'l ~.."."I n,~"'Ml:l0l"
fi l....... tIo;
~~~tr
rt:.r
!ll.'II""'''
..-......
1iItili_~
.......-.........:
'..IiIiiiiY": _
........ . ! :, , {,
_...Unili . " .
..... ........
t..._irtIItMIt~IIitW!1K.
...
The Design Advisor con be accessed at
www.designadvisor.org.
6
Good design ensures the creotion of
developments that work
The goal of a good design process Is to create
developments that:
. Meet the needs of occupants.
. Understand and respond to the buildings physical
context.
. Enhance their neighborhoods.
. Are built to last.
Using these four criteria to measure design excellence
may surprise some readers. There's no mention of
aestbetlcs; no concern with getting published In design
magazines or winning design awards (nice side
benefits, but never core obJectives). Rather, these
criteria focus on results that provide direct, tangible
benefits to the occupants of an affordable housing
development and their neighbors.
Meeting occupant needs
Well-designed developments respond to the needs of
their occupants and dictate what the physical design
should be. One size definitely does not fit all. Families
with children may need larger homes with more
bedrooms, spacious kitchens, and more storage.
Elderly people living alone, on the other hand, may
need less space but require that space to be designed
with accessibility Issues In mind.
Understanding context
Although the context In which an affordable housing
development Is brought to life includes socioeconomic,
legal and regulatory Issues, It Is the physical context
that. is most Important fror:n a design perspective. How
wide are the Sidewalks? Are they completely paved or Is
there a grassy strip? What do the roofs of neighboring
houses look like? Are they pitched or flat, gabled or
hipped? What are the primary exterior materials? What
are the main colors? Do most of the surrounding houses
have porches? Patios? Decks? How Is open space
handled? Questions like these can help define the
physical context In which a new development Is placed
and can help the design team create housing that
responds positively to this context.
"
"
Wayne Cable
Enhancing neighborhoods
All affordable housing developments, no matter how
small, have a responsibility beyond simply meeting the
needs of their occupants. They also have a public
responsibility to enhance the neighborhoods in which
they are built. Good design Is critical to this process
and to moving developments beyond the goal of
simply providing shelter to the goal of building
communities.
Building to last
Good design can help ensure that a development
stands the test of time. By using materials, Systems and
finishes that are durable, easy to maintain, and energy
efficient, a development team can ensure that Its
projects are cost effective and "built to last," requiring
minimal repair and upkeep. All four of these outcomes
are tied to the physical aspects of a development and
can be achieved only through intelligent, sensitive
design. If successful, the result will be a development
that works":-'one that is fully occupied, increasing in
value, with residents who are proud of where they live,
and neighbors who are pleased as well-and
constitutes a lasting community asset that is, by
definition, well designed.
INTERNATIONAL HOMES
This development of 28 attached row houses was
specifically designed to blend with the traditional
architecture and streetscape of Chicago's Uptown
neighborhood. The houses ore grouped together
with high roofs to fit the scale of the high-density
neighborhood; gables and porches emphasize
their Individuality. This attention to design detail
benefited the residents and enhanced the
neighborhood. The community gained both
stability and vitality by replacing dangerous vacont
lots with quality homes.
WILLOWBROOK GREEN
Jim Simmons
The two-story buildings in this development surround a
generous, well-landscaped courtyard containing 0 community
building and a children's play area. Security was 0 prime
consideration for the residents, and the development, through
careful design and planning, provides an oasis of calm in a
tough neighborhood in south central Los Angeles. The
development works for Its occupants. As resident Venitta
Cunningham, 0 mother with three children, observed, "The
arrangement allows us to keep on eye on each other. It feels
very safe."
7
DEANE EVANS is a registered architect and a
Fellow of the American Institute of Architects, and Is
currently a Research Professor with the New Jersey
Institute of Technology, where he directs the Center for
Architecture and Building Science Research. He has a
broad background In architectural research,
construction technology, and building performance
and has undertaken work in this area for, among
others, the U.S. Department of Energy. the National
Science Foundation, the National Institute of Justice,
the Federal Emergency Management Agency, the U.S.
Department of Health and Human Services, the U.S.
Environmental Protection Agency. and the U.S.
Department of Housing and Urban Development.
While in private practice, Mr. Evans created the
Affordable Housing Design Advisor. a unique,
electronic tool that provides step-by-step guidance for
affordable housing developers and community leaders
on how to create better designed affordable housing.
~
JODY BECK is a Ph.D. candidate at the University of
Pennsylvania. who also holds a license to practice
architecture In the state of Texas. Mr. Beck has worked
in community development for over 10 years In
various capacities, including developing a full socio-
economic survey for San Jose de Buenavista on the
island of Panay in the Philippines as a Peace Corps
volunteer. Most recently. he helped develop the Rehab
Advisor. which is a tool much akin to the Design
Advisor that focuses on energy efficiency in affordable
housing renovation. In addition. in partnership with
Deane Evans, he has developed a series of short
articles on key design issues.
12
.~
't
GOOD DESIGN
The Best Kept Secret in
Community Development
is available online at the
Lise Online Resource Library: www.lisc.org/resources
Printed copies can be ordered at: pu",ications@,isc.org
~~c
H'~ng~
build lOmmJ/,nitia
501 7th Avenue
New York, NY 10018
212.455.9800
www.lisc.org