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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! 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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. 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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