HomeMy WebLinkAbout05-18-2006 Housing & Community Development Commission
AGENDA
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
LOBBY CONFERENCE ROOM, CITY HALL
THURSDAY, MAY 18, 2006
6:30 P.M.
1. Call Meeting to Order
2. Approval of the April 20, 2006 Minutes
3. Public Comment of Items Not on the Agenda
4. New Business
. Community Land Trust Presentation - The Housing Fellowship
. Review of Allocation Process - Creation of Subcommittee
. Discuss Summer Schedule
. Discuss Inclusionary Zoning
. Announce Upcoming HCDC Vacancies
5. Old Business
. Discuss National Community Development Week Celebration
6. Monitoring Reports
. City of Iowa City - Economic Development Fund (Greazel)
. Goodwill Industries - Facility Rehabilitation (MeHecker)
. Planned Parenthood - Facility Rehabilitation (Mellecker)
. City of Iowa City - Housing Rehabilitation (Mellecker)
. City of Iowa City - Downpayment Assistance (Mellecker)
7. Adjournment
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CITY OF IOWA CITY
MEMORANDUM
Date:
May 12, 2006
From:
Housing and Community Development Commission
Community Development Staff
HCDC Meeting on May 18, 2006
To:
Re:
As you may already know, on May 2 the City Council approved the FY07 Annual Action Plan as
recommended by HCDC. A copy of the approved FY07 Action Plan budget is included in the
packet for your information.
The following is a short description of the May agenda items. If you have any questions about
the agenda, or are unable to attend the meeting, please contact Tracy Hightshoe at 356-5244 or
by email at tracy-hightshoe@iowa-city.org.
New Business
Community Land Trust Presentation - The Housing Fellowship
Maryann Dennis, Director of The Housing Fellowship, will present information on community
land trusts and will discuss how The Housing Fellowship has worked with land trusts to ensure
permanent affordability for owner-occupied homes.
Review of the Allocation Process
With the FY07 allocation process fresh in your mind, staff is interested in hearing your
suggestions for next year. Last year a subcommittee was created to review the process and
recommend changes to the allocation process. There were some substantial changes made to
the process this year, such as separate applications and ranking systems for different funding
categories. The committee may decide to appoint a subcommittee for further review or simply
offer suggestions for next year.
Discuss Summer Schedule
Typically, the commission does not meet one month during the summer. We will need to
discuss summer plans and our meeting schedule over the upcoming months. Please bring your
date books.
Discuss Inclusionary Zoning
The commission will discuss the process of reviewing inclusionary zoning. At the May meeting
the commission will discuss a process, timeline, and information necessary to formulate a
recommendation to City Council. Upon consideration of inclusionary zoning, the commission
may decide to recommend, not recommend or to make no recommendation to City Council.
The June agenda will include the discussion of design guidelines and inclusionary zoning.
There will be an August or September agenda item regarding the financial investment policy.
Upcoming HCDC Vacancies
Bill Greazel and Michael Shaw's terms expire September 1, 2006. If interested in reapplying,
please submit your application to the City Clerk before July 26, 2006.
May 12, 2006
Page 2
Old Business
National Community Development Celebration
The Community Development Celebration committee will meet to discuss proposed dates and
location for the celebration before the May 18 meeting. The committee will provide an update at
the May meeting.
Monitoring Reports
. City of Iowa City - Economic Development Fund (Greazel)
Contact Tracy Hightshoe at 356.5244
. Goodwill Industries - Facility Rehabilitation (Mellecker)
Contact Mike Townsend at 337.4158
. Planned Parenthood - Facility Rehabilitation (Mellecker)
Contact Krista Noah at 354.2044
. City of Iowa City - Housing Rehabilitation (Mellecker)
Contact David Powers or Jeff VanaUer at 356.5230
. City of Iowa City - Downpayment Assistance (Mellecker)
Contact Steve Long at 356.5250
MINUTES
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
THURSDAY, APRIL 20,2006,6:30 P.M.
EMMA J. HARVAT HALL, CITY HALL
PRELIMINARY
Members Present:
Jerry Anthony, William Greazel, Matthew Hayek, Kelly Mellecker, Thomas
Niblock, Brian Richman, Michael Shaw
Staff Present:
Tracy Hightshoe, Steve Long
Public Present:
Bob Burns, Dan Garrett (Iowa Equity Fund), Krista Noah (Planned Parenthood)
Call Meetina to Order
Anthony called the meeting to order at 6:30 p.m.
Approval of the March 9. March 23. and March 29. 2006 Meetina Minutes
MOTION: Hayek moved to approve the minutes as submitted. Mellecker seconded, and the motion
carried on a vote of 6-0.
Greazel arrived at this point.
Public Comment of Items not on the Aaenda
Richman asked if the commission should reconsider allocations in light of the recent tornado. Long asked
if he had suggestions. Richman said he did not have any particular suggestions, and he has not heard
any assessment of damages to public facilities. He said his question centers on whether there are other
priorities now.
Long said people are still trying to assess the damage, so very little is known at this point and funding
gaps are unknown. He said the city is working with The Housing Fellowship with their damages, since
CDBG funds were involved in some of their projects. Greazel noted the funds which were held back
during allocations are still available, and the commission could consider future applications. Long said the
city is still waiting to hear from the federal government on whether the area will be declared a disaster
zone. If so, some requirements for applications are waived and money could be shifted around more
easily. Otherwise, projects need to go through the normal application.
Anthony asked what the timeline is for the disaster area designation. Long said it could be up to 30 days.
He said the city has not heard from non-profits regarding desired funding or if they received any
damages. Hayek said he had heard several of the rental houses on Iowa Avenue were underinsured, so
there may be gaps in that area.
Anthony said there is a request to have the Iowa Equity Fund presentation before discussion of the
annual action plan. He asked if there were any objections from commission members. There were no
objections.
Presentation bv the Iowa Eauitv Fund Reaardina Low Income Housina Tax Credits
Garrett introduced himself as a representative from the Iowa Equity Fund. The Fund is a non-profit tax
credit syndicate that buys tax credits on affordable housing projects. The Fund is part of a larger company
called Midlands Housing Equity Group, based in Omaha, Nebraska.
Garrett said the state awards the tax credits for low-income projects, and the required compliance period
in Iowa is15 years, though an extended period is an option. The Fund is designed to help those with low
to moderate incomes. It actually consists of four funds with four offices. Iowa Equity has two funds, and
his area, called Fund Two, is handling about $20 million this year. They have syndicated projects all over
the state for both historic and adaptive rehabilitation, and assisted living. They have just completed their
second assisted living project and plan to do four smaller ones this year.
Garrett said tax credits are very competitive, so the Fund would like to get in on the ground floor. The
Fund's greatest offering is that it is local. The national syndicators are aggressive, and there is more
money available. He said the Iowa Equity Fund is trying to work with people who might need the services
and get in on the ground floor.
Housing and Community Development Commission Minutes
April 20, 2006
Page 2
Garrett said the Fund is asked by an investor to help non-profits with existing stock turn them into tax
credit projects. What happens is that a limited partnership is created, with the syndicate holding 99.99 .
percent ownership. The non-profit sells the project to the limited partnership, and holds .01 percent
ownership. The resultant tax credit equity helps with rehab done on the unit, and builds a reserve. Also,
tax-exempt properties become taxable. There is a formula for calculating affordable housing tax credits
based on state code, so it is not the same as becoming 100 percent commercial.
Garrett said the tax credit money, which covers typically 60 percent of the project costs, is not public
money. It is investor money, such as with Wells Fargo, Bank of the West, and Fannie Mae. They get
dollar for dollar tax credits on their returns. Hayek asked how much money comes back to the investors
per tax credit dollar. Garrett said when he started five years ago they were at about 72 cents for every
dollar. Burns said it was approximately 42 cents on the dollar in the late 1980s, but investors wanted
higher returns. Garrett said he is now doing about 92 cents, which is lower than the national average
because the company is very conservative. He added it is possible to get over a dollar in some areas.
Hayek asked what happens to the property after 15 years. Garrett said the affordability period is at least
15 years. At the end of that period, the property can be sold back to the non-profit organization for the
balance of the outstanding debt. At that point they could be put back into the tax credit program.
Richman asked if the unit would need to apply for additional dollars for rehab after 15 years. Garrett said
it is a possibility. Greazel noted that projects presented to the commission usually have an affordability
period of 30 or 40 years.. Garrett said the limited partners are only interested in the first 15 years, but
there is an option to extend affordability. The investors only get tax credit up through year 10. The
syndicate is done after 15 years.
Greazel asked who keeps track of affordability after 15 years. Garrett said the Iowa Finance Authority is
the agency that awards tax credits. If the property goes back to the non-profit, they would be responsible
for keeping up the affordability. Otherwise, the unit can be sold with an easement kept to retain
affordability. Richman asked if the city could require a longer period of affordability. Garrett said yes, but
the affordability requirements are already stringent, and they are monitored closely because there is a lot
at stake.
Garrett said his syndicate has placed $300 million of funding since its beginning. Though that might seem
like a lot, there are national companies that have done well over a billion. There is a lot riding on keeping
up with the requirements and keeping the books straight. Files are audited every year.
Long asked for an explanation of the local commitment. Garrett said the Finance Authority requires a
local commitment to indicate the local entity is behind the project, either in the form of a direct placement
of money or tax abatement. Then the city also has to give a written resolution and letter of support. The
local contribution has to be a certain percentage of the project cost.
Long asked if the local monetary support could be from the county if the project is in the city. Burns said
the city needs to support the project to get the application points, but the funds can come from the county.
Garrett said more projects are funded at four percent credit level because there is so much competition at
the nine percent level.
Hayek asked what participation is needed at the municipal level other than supporting the project. Garrett
said it depends on the entity. Some have given direct contributions or tax abatements. One good thing
about moving forward with it at this point is having the opportunity to think through all these decisions
rather than when putting together the materials in August. Applications are due in November.
Dennis asked for explanation of what investors want to see in terms of development project numbers for
Iowa Finance Authority applications. Garrett said the Iowa Finance Authority is the one charged with
overseeing the program and awarding the credits. A certain amount of money should be put aside per
unit per year for the reserve. However, his syndicate requires a higher amount to be kept in reserve than
the Finance Authority, and the amount depends on the project. The Finance Authority releases reserves
after seven years, but the Fund does not. The Fund is very conservative, and the investors expect care to
be taken to look for good projects in good markets at good rents.
Housing and Community Development Commission Minutes
April 20, 2006
Page 3
Dennis asked for clarification on individual items on the budget. Garrett said usually 60 percent are hard
construction costs, while 40 percent are soft costs such as accounting, attorneys, and reserves. The
whole process is very complicated, and a lot is involved. At the same time, in similar projects, 60 percent
of the costs are covered by tax credits, which isa wonderful way to assist projects and keep them viable.
Greazel asked if 60 percent is paid when the project opens. Garrett said not necessarily. They try to make
projects as viable as possible. Greazel asked what average percentage debt is normal. Garrett said there
are no average projects because of the wide variability. The Fund requires a certain debt coverage ratio.
The Finance Authority requires that debt coverage ratio be met consistently throughout the 15 years.
Greazel asked what the acceptable vacancy rate is. Garrett said perhaps five to seven percent. He added
that vacancy always depends on price in his opinion.
Richman asked whether the Fund participates in scattered site projects, small units, or package deals.
Garrett said yes, they are comfortable with that.
Shaw asked for clarification where the Fund figures into the tax credit funding operation and how much
competition there is among the syndicates. Garrett said the non-profit applies for tax credits, which the
Fund then buys. Then the Fund gives the credits to investors. The syndicate does have control over the
project, and will assert that if necessary. However, generally the project is left for the organization to run.
The Fund has to make sure the project will work because they cannot afford to have a project go bad, so
will assert requirements if things are not proceeding well. There is a huge amount of competition in this
area. All the companies are good at what they do, so what it comes down to is what the developer can do
and the developer's performance record.
Garrett added that they are very concerned with keeping projects within compliance, and they are able to
enforce if necessary. Dennis noted that if the project is out of compliance, the investor stands to lose
credits for every year of the project, and have to pay back the money. The investor does have a strong
interest in keeping the project viable and in compliance.
Richman asked if there is a difference in price with scattered site projects. Garrett said no, it depends on
the developer. There is a certain economy of scale, but that can be balanced by other costs or savings.
There is no difference in their price.
Anthony asked who primarily invests with the Fund. Garrett said corporate entities. Hayek asked if
anyone with state taxes could invest. Garrett said it is based on federal tax. Both C and S corps could get
involved, but there is not much benefit to S corps. Anthony said the tax credit program is the largest
producer of affordable housing. It is a huge industry, which increases money for affordable housing.
Unfortunately, Iowa City has not received many tax credits in the past.
Consideration of a Letter of Support for the Use of General Obliaation Bonds
MOTION: Greazel moved to approve submitting a letter of support and Shaw seconded.
Hayek asked what the significance is of using General Obligation Bond (GOB) funding for a project like
this; that is, why use the GOB versus some other means. He also asked for clarification of whether the
letter of support refers to this project specifically or the concept of using these funds as a whole.
Richman said GOBs are supported by a property tax levy on all taxable property in the city. They are
authorized by voters, and then the property tax levy pays back the bonds. It is a low risk venture from an
investor standpoint, and the money raised can be used for various purposes. Eastman said up to $700K
can be issued without voter approval in Iowa City, and the proceeds can be used widely.
Shaw asked if $700K could be raised per year. Eastham said per instance. He noted this is not the first
time the city has used these funds for affordable housing, and that the Fellowship did not request funding
through the bonds. The City Manager suggested this route.
Richman asked if the Peninsula loan was through a GOB. Eastham said yes, the same structure was
requested for that project as the bond issue. Richman confirmed there was some risk to the city with the
Housing and Comm.unity Development Commission Minutes
April 20, 2006
Page 4
Peninsula project, whether the rents would be high enough to pay back the loan. Eastham said the city
manager was satisfied that the risk was acceptable.
Hayek asked if this would be the third project using these types of funds. Dennis said the Peninsula
project was a partnership, with the funds issued through a bond that was split between the Housing
Fellowship and the City of Iowa City Housing Authority. That was one bond, so this would be the second
one. She said the Fellowship did not ask for General Obligation Bond funding. The Fellowship asked for
suggestions on how to fund their project apart from using CDBG funds, and Steve Atkins said the GOB
was a good way to go.
Hayek asked if the Finance Department approved this funding. Long said yes. Hayek noted he also would
like confirmation whether this letter of support is for the general concept of using General Obligation
Bonds for this type of project, or if it would support this project in particular.
Greazel asked for clarification of what would happen to the funds. Eastham said they would be paid back.
Dennis said the bond would be issued to a limited partnership rather than directly to the Fellowship. They
would then pay back the bond, private financing, and all of the other hard debt. Debt is repaid from
renting those units. This partnership would be for this project alone. Eastham said there is no bank
financing proposed on the project at this point.
Hayek asked if there is a reason this sort of project is suited for these funds, rather than supporting new
acquisition. Long said funds are dwindling, so this is a way to find alternative funding. Hayek asked if this
would be a way to find additional funds for multiple projects every year. Hightshoe said it is evaluated on
a case-by-case basis. These units are nearing the end of their periods of affordability, so this is a way to
extend their affordability. Garrett said using these funds would be a good way to do the project. State
HOME funding is too competitive.
Hightshoe said GOBs have been used for various affordable housing projects in the past such as D&K
properties (Successful Living) and the peninsula project. Eastham said this is a way to lower rents, and
the units also contribute property tax.
VOTE: The motion carried on a vote of 6-0, with Richman abstaining.
Richman said he did not abstain because of concerns with this particular project, but because he is not
fully aware of other projects the city needs to finance that could be covered by General Obligation Bond
funding.
Review the FY07 Annual Action Plan
Long distributed summaries of the allocations approved at the March 23 meeting. Summaries of the
projects need to be submitted to HUD. He gave an overview of the parts of the packet, and asked the
commission members to review the information.
Shaw asked for clarification on what the shaded versus unshaded portions of the map signified. Long
noted there was no key. Hightshoe said the areas with the small dots are those areas outside the city's
corporate limits. Census tracts do not always follow the city's corporate limits.
Niblock asked what the turnaround is with HUD. Long said the application must be submitted to HUD by
May 15 and the funding is available July 1. Anthony asked if it would be a line of credit or actual money
deposited into the bank. Long said it is a line of credit. The recipient must expend funds, the City
reimburses the eligible expense, and then draw downs the funds from HUD.
Anthony asked on page 28 under Geographic Distribution of Resources, if having a scattered site policy
invalidated one of the statements. Shaw said the entire project is community-wide projects, not just
housing, so it qualifies. Long agreed. Long said a recommendation is needed for the council.
MOTION: Niblock moved to recommend the Annual Action Plan as summarized. Greazel seconded, and
the motion passed on a vote of 7-0.
Housing and Community Development Commission Minutes
April 20, 2006
Page 5
Long noted that some organizations are lobbying the council to receive the funding that was held back
during allocation.
Discussion of the Community DeveloDment Celebration
Hightshoe said this is an annual event recognizing each organization that will be receiving CDBG/HOME
funding in the upcoming fiscal year. It is also an opportunity to highlight prior CDBG/HOME funding in our
community. She suggested having the celebration at the new Grant Wood School facility. Hayek agreed
that is a good idea. Hightshoe asked for volunteers for a planning committee. The committee members
would decide where and when to have it, who to honor, and other details. City staff would then make the
arrangements. Anthony, Mellecker, and Shaw volunteered.
Discussion of FY07 Potential Aaenda Items
Anthony said there are three pieces of information that will probably be discussed at the next meeting. He
asked city staff to discuss the design guidelines.
Hightshoe said the guidelines have been discussed in the past. The city's interest is to have some
reference document to use when discussing requirements for new housing construction. City staff request
HCDC approved criteria when reviewing housing plans assisted with CDBG/HOME funds. The document
would serve as a simple guideline in hopes that new housing will fit into the neighborhood where it is built.
Design guidelines would help to reduce NIMBYism as the resulting house would not be easily recognized
as subsidized and may reduce fears about what type of housing will be placed into someone's
neighborhood.
Long said that all agreements with housing providers require that city staff review building designs.
However, there are no criteria established, so changes are difficult to justify. Hightshoe said some
guidelines from other communities can be reviewed such as those from the Springfield, MO (included in
this month's packet for review). Staff's intent is to develop generalized guidelines so that assisted housing
fits into the neighborhood where it is built, with some basic requirements such as each single family home
must have access from the street, utility hookups must be on the side or back of the home, etc.
Shaw asked for confirmation that staff would like to have guidelines and the recommendation would be to
give them that guidance. Hightshoe said yes, some established criteria for FY08, since it may be too late
for FY07 projects. Staff would like to have some consistency in how projects are reviewed.
Anthony said the other items are inclusionary zoning and housing. He asked that the commission
members read the enclosed information on inclusionary zoning for the next meeting. Also, hopefully some
developers could be invited to give their viewpoints on inclusionary zoning to add to the discussion.
Shaw asked whether time should be specified and set aside for each issue ahead of time. Anthony
suggested inclusionary zoning should have its own meeting, because there are a lot of people who have
opinions about the matter, both pro and con. Richman asked if there are other stakeholders besides
affordable housing developers that the commission should hear from. Anthony said private market
developers and landowners. Richman suggested also neighborhood groups.
Anthony said there is a lot of literature written about inclusionary zoning, both in support and against it.
Richman asked how to reach out to the other stakeholders. Hightshoe said invitations can be extended.
City staff could work with the commission to determine who to invite.
Shaw asked whether the commission should spend time just to have a discussion about items, or if the
commission should focus on what types of recommendations should be made to the council and discuss
only those. Anthony said the commission should have a discussion about the issues, and if the members
agree that a recommendation to the council is needed, then go ahead and make it.
Anthony suggested taking up as many of the issues over the summer as is feasible, including members of
the community, then making a recommendation to the council if the commission feels it is warranted.
Shaw asked for clarification on the timeline to finish the discussion phase and move back into funding.
Anthony said the funding cycle starts up in November, reviewing score sheets and application. CITY
STEPS needs to be reviewed in late summer/early fall, which does not take too long, so the commission
has time to discuss through November.
Housing and Community Development Commission Minutes
April 20, 2006
Page 6
Hightshoe said it would be good to have all recommendations be made together, so they are consistent.
Anthony noted the recommendations should be given to council early enough that they can act upon
them before applications are sent out. In that case, discussion should be finished in September or
October.
Hayek said this is a big undertaking, and time goes quickly. Shaw agreed, saying that is why he would
like to consider the timeline before starting. Mellecker asked how specific the recommendations on design
guidelines would be. Anthony said that would have to be decided during the discussion. Hayek said the
commission could discuss and decide that design guidelines are a good idea, and then ask staff to come
up with something for the commission to review. However, there are also policy issues that are related
that need to be discussed.
Anthony agreed that looking at the policy level would allow the discussion to move faster. Greazel said
the two things go hand in hand. Hayek said there are people who would have a problem with both
policies. Shaw said he would like to have some ideas about the scope of the discussion, to help with
staying focused.
Hightshoe asked what would be placed on the fiscal year 2007 agendas. Anthony asked whether there
are any items anticipated besides what the commission was reviewing. Hightshoe said no. Anthony said
he would put together agenda information and send it out. Greazel said he would like to have a review of
what the commission did for the past few months. Also, there was some discussion of focusing on certain
issues. Richman said it would be good to talk about potential priorities for the next funding round. Shaw
suggested talking about that first, since those decisions might help guide future discussions.
Anthony said the review should happen at the next meeting, and compare to previous years. Discussion
of goals could happen at the next meeting or after CITY STEPS is reviewed in August. Richman said
having it later is not ideal. Priorities need to be established, and that should happen sooner rather than
later. Anthony said CITY STEPS has not changed very much in recent years. He said that those two
items, along with a process discussion about inclusionary zoning, would be on the next meeting agenda.
Then the actual discussion about inclusionary zoning would occur in June, which would give time to notify
interested parties.
Discussion of FY06 Proiects that have not Performed oer the Unsuccessful or Delaved Proiects Policv
Hightshoe said council policy states that CDBG projects are encouraged to spend at least 50 percent of
their funds by March 15. CDBG is evaluated based on timeliness, so the city would like CDBG recipients
to complete their projects by the end of the fiscal year. All of the agencies on the list have been contacted
for updates.
Noah said she is with Planned Parenthood, and director of securing facilities. She reported they are on
track per their original request to start paving the parking lot, but they are trying to find the best bid. After
the paving is complete, then the entrance will be moved and the other interior improvements will be done.
She said they are confident that this will start by May 1 and be done by June 30.
Shaw asked whether a recommendation should be made before Noah leaves. Hightshoe asked whether
anyone would like to make a recommendation to recapture funding from Planned Parenthood. No
recommendations were made by the commission members.
Long said Goodwill recently completed their paperwork, so a check went out today. Hightshoe said
sometimes there is a difference between the project being completed and the request for reimbursement
being submitted.
Hightshoe said Old Brick spent half their funds. The restoration contractor expects to be done by May 15.
Hightshoe said the fire suppression system for Free Lunch was being installed today. That should be
done tomorrow. The flooring asbestos contractor came in, and the floor should be done this week. Free
Lunch is being held at other churches this week, so the floor needs to be done quickly.
Housing and Community Development Commission Minutes
April 20, 2006
Page 7
Greazel asked why the fire suppression system took so many months to do. Long said the whole lunch
program needed to be moved to another site, so they were timing it with Free Medical Clinic's move and
the floor replacement so they could get it all done at the same time.
Long said Hillel's project will start Monday. They had planned to be done by Passover, but hit a snag so
they held off so the door would not be out of commission during the holiday.
Hightshoe said staff is withholding funds to Compeer until a monitoring visit is completed. Staffs needs to
ensure Compeer is meeting the mandatory income reporting requirements. They are spending the
money, but they have to keep adequate time records and have to get client intake information. The client
can refuse to give income information, but that has to be documented. Due to the nature of the clientele
served, staff doesn't have a concern that the clientele served does not qualify as low-to-moderate
income, just that they must meet all accounting and client intake requirements.
Hightshoe said Extend the Dream says money has been spent and will submit a reimbursement shortly.
Monitorina Reports
Hayek said his information on Hillel is as Long reported. They did not want to tie things up during
Passover, and they expect to be done by May 1: The project involved a power door in the rear of the
building and upgrades to the bathrooms.
Hayek said Extend the Dream says the money has been spent. They hired a work-study for 15 hours a
week last year, and the salary was paid in part with this funding. That person coordinated e-commerce
training programs at the new facilities. Also, all is well with the rental housing. Long noted one person
runs everything with the organization, and he is swamped. Hightshoe added they have spent their money
based on a call to their Director, but they had not sent in a request for reimbursement until today. Staff
has not reviewed it yet.
Long said the Iowa City Down Payment Assistance has not spent any money. Hills Bank is the lender in
charge of this project, and they say most lenders will now do 100 percent financing through two
mortgages, with the down payment essentially a second mortgage on the house. Greazel asked if they
anticipate not needing the money. Richman said it does not seem the program is being marketed.
Richman asked what happens if the money is not spent by June 30. Hightshoe said that is the question
for the commission. Long said that no projects are overspending, so contingency funds are not needed.
The commission could give it until June 30 and ask them to step up marketing or the city could recapture
the funds for another project(s).
Richman said if there is no need for it in the community, there are probably other projects that could use
the money and the funds should be recaptured. Long said if there is a national declaration of a disaster
area, this is one pot of money that could be reallocated. He added that the bank said increasing the
award amount to $10K might make it more attractive.
Shaw asked if there is a reason that lenders would stop financing 100 percent in the next few months.
Richman said the advent of 100 percent financing is recent. Greazel said he has also seen more
repossessions by financial institutions in the past year than in the previous 20 years. Previously, if
someone was having financial problems, they would sell the house themselves and take what equity they
could get before it was repossessed. Now, people are so far behind that they are not bothering. The
lenders are being very aggressive, even though the market is very loose right now.
Richman suggested considering whether to recapture the funds at a later meeting.
MOTION: Richman moved to extend the compliance period for all projects to June 1 and reconsider
recapturing funds from the Iowa City Down Payment Assistance program at the June meeting. Hayek
seconded and the motion carried on a vote of 7-0.
Housing and Community Development Commission Minutes
April 20, 2006
Page 8
Richman reported all work on the Neighborhood Centers has been completed. They installed countertop
style desks with cabinets in the offices, which has really helped with their office space a lot. All money is
expended.
Adiournment
MOTION: Hayek moved to adjourn. Mellecker seconded, and the motion carried on a vote of 7-0. The
meeting adjourned at 8:30 p.m.
s:lpcd/minules/HCDCI2006/04-20-06.doc
FY07 CDBG & HOME FUNDING BUDGET
ECONOMIC DEVELOPMENT PROJECTS
Economic Development Fund - City of Iowa City*
Subtotal
HOUSING PROJECTS
Affordable Homeownership - Iowa Valley Habitat for Humanity
Tenant Based Rent Assistance - Iowa City Housing Authority
Housing Rehabilitation - City of Iowa City*
HOME Funds Not AI/ocated
Subtotal
PUBUC FACILmES PROJECTS
Facility Rehabilitation - The Arc of Johnson County
Facility Rehabilitation - Community Mental Health Center
Facility Rehabilitation - Domestic Violence Intervention Program
New Construction - Four Oaks
Playground Improvements - Grant Wood Elementary
Facility Rehabilitation - MECCA
Subtotal
PUBIC SERVICE PROJECTS
Operational Expenses - Compeer
Operational Expenses - Extend the Dream Foundation
Case Management - Iowa City Free Medical Clinic
Outreach Coordinator - Shelter House
Operational Expenses - Visiting Nurse Association
Aid to Agencies*
Subtotal
ADMINISTRATION AND PLANNING
HOME Program Administration
CDBG Program Administration and Planning
Subtotal
TOTAL
Request
Council Approved
5/2/2006
$141,000
$141,000
$141,000
$141,000
$220,000
$368,064
$279,021
$220,000
$200,000
$279,021
$89,409
$788,430
$867,085
$2,852
$18,280
$6,400
$200,000
$56,437
$22,000
$305,969
$2,852
$18,280
$6,400
$200,000
$56,437
$22,000
$305,969
$2,584
$2,250
$21,000
$10,000
$10,000
$105,000
$150,834
$1,000
$1,000
$4,900
$4,900
$2,500
$105,000
$119,300
$63,722
$159,050
$222,772
$1,577,471
SOURCES OF FUNDS
FY07 CDBG Entitlement
FY07 CDBG Estimated Program Income
Unexpended CDBG Funds (from contingency, projects, & unallocated PI)
TOTALCDBG
FY07 HOME Allocation
FY07 HOME Estimated Program Income
TOTAL HOME
FY07 TOTAL
$680,249
$115,000
$50,000
$845,249
$637,222
$95,000
$732,222
$1,577,471
CCOfY
COMMISSIONERS:
Jerry Anthony
Chairperson
September 2002-2008
Brian Richman
Vice-Chair
September 2004-2007
William Greazel
September 2003-2006
Matthew Hayek
September 2002-2007
Kelly Mellecker
September 2005-2008
Thomas Niblock
September 2005-2008
Michael Shaw
September 2005-2006
STAFF:
Steve Long
Communiry Development
Coordinator
Tracy Hightshoe
AssoCiate Planner
City of Iowa City
Housing and Community Development Commission
410 E. Washington Street
Iowa City, Iowa 52240
April 25, 2006
Dear Mayor Wilburn and Members of the City Council:
I am pleased to write and inform you that the Housing and Community
Development Commission at its meeting on April 20, 2006 passed a resolution
, of support for the issuance of a General Obligation Bond to The Housing
Fellowship. The amount is anticipated to be $250,000. The bond financing
will fulfill the local commitment requirement for an application from The
Housing Fellowship to the Iowa Finance Authority for a reservation of Low
Income Housing Tax Credits to preserve affordable rental housing.
Sixteen scattered site rental single family and duplex homes owned by The
Hous~ng Fellowship for over ten years are eligible for the Preservation of
Affordable Rental Housing. The Housing Fellowship is partnering with The
Iowa Equity Fund for technical assistance to prepare the application, secure
investors and meet all compliance requirements.
The rental homes will be placed back on the property tax rolls, rents will be
lower and the homes will undergo significant rehabilitation. The General
Obligation Bond will be repaid with rental income.
The Housing Fellowship has proven to be the leading provider of permanent
affordable housing in our community. We applaud them for their efforts and
hope you will support this project.
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Our View
Consensus of the Press-Citizen editorial board
Homelessness
talks can enter
the next phase
No one denies the fact that there is a shortage of
shelter space for the more than 1,200 homeless people
in Johnson County. Decisions on whether to give more
money for the short-term sheltering of these people ,
are relatively straightforward. They depend upon the
availability of funds and on
the priorities of councilors.
Addressing the root causes
of homelessness and pro-
viding comprehensive solu-
tions, however, becomes a
much more complex and
interactive undertaking.
Duringa recent forum on
homelessness, more than
650 Johnson County resi-
dents demonstrated that
they understand this issue is
complex (UCommunity
meeting on homelessness
draws '650," May 1). We
were simply amazed at how
well the Johnson County
ConsUltation of Religious
Communities was able to
preach . beyond the choir
and to attract so many of
their elected officials, public What do you think?
servants and fellow citizens~
ill terms of practical,
concre~ suggestions, the
forum called for annual
support of the Shelter
House, a one-time donation
to help secure a federal
matching grant, the comple-
tion of a transit route study
by the end of 2006 and the
implementation of new zon:
ing ordinances that would
limittlw rent on one out of .... .' ,'..,
five newly. constructed units to be what low-income
families coUld actually afford.
The completion of a transit route study would
seeut the,least controversial of the proposals. Iowa
City currently offers no public transit for people who
have to wor:k the late-nightiearly-morningshifts.
Although we argued against a recent plan to start a
1ate-night bus seIVicein the downtown area, we
would be willing to consider a plan that was geared
for those individuals who depend upon such seIVice
for their livelihood.
It's the fourth component - caIling for inclusion-
az:y zoning ordinances - in which we have to part
ways with.this well-meaning group. The uCoveilant
with Johnson County" calls for both Iowa CitY and
Coralville to pass identical ordinances so that 20 per-
cent of all new construction of5 units or larger would
have to be designated as affordable housing. The
exact wording and specifics would be' crafted by the
Iowa City Housing and Community Development
Commission and would depend upon input from gov-
ernment agencies and developers. ,
Although we strongly encourage dialogue between
developers, city officials 3Ild advoctltes for the home-
less - as well as with actual homeless. people - we
have a. hard time imagining a proposal. that would
meet the needs of an these groups. The inclusionaz:y
zoning proposal demonstrates the ambitious and com-
prehensive objectives of this group, but advocates for
the proposal will have to be very flexible if they expect
to see any movement on this front.
We congratulate the organizers of this event for ini-
tiating the next phase of discussion, and we look for-
ward to being part of that discussion.
The issue
. More than 650
local residents recently
attended a forum on
homelessness.
We suggest
. The amazing
turnout demon.strates
the community's inter-
est In addressing this
issue, but advocates for
. the homeless will need
to be flexible in their,
request for inclusionary
zoning;
. What do our lead-
ers need to do to trans-
form this local interest
into local action?
. Send comments
to oplnion@press-citi-
zen.com.