Loading...
HomeMy WebLinkAbout05-15-2008 Housing & Community Development Commission AGENDA HOUSING AND COMMUNITY DEVELOPMENT COMMISSION LOBBY CONFERENCE ROOM, CITY HALL THURSDAY, MAY 15, 2008 6:30 P.M. 1. Call Meeting to Order 2. Approval of the April 17, 2008 Minutes 3. Public Comment of Items Not on the Agenda 4. Staff/Commission Comment 5. Presentation by Karen Kubby Regarding a Consensus Statement on Affordable Housing 6. Annual Action Plan Amendments 7. Subcommittee Reports: Community Development Celebration & Allocation Process 8. Discussion of the Housing Market Analysis www.icgov.org/affordablehousing 9. Monitoring Reports . Hawkeye Area Community Action Program - Transitional Housing (Richman) . Goodwill Industries - Facility Rehabilitation (Douglas) . Iowa City Free Medical Clinic - Accessibility (Richman) . Blooming Garden IHA LP - Homeownership (Douglas) . The Housing Fellowship - CHDO Operating (Anthony) . Neighborhood Centers of Johnson County - Facility Rehabilitation (DeFrance) 10. Adjournment ,~ i ~~5._~.... ~~W:t:~ ~ .,...,~ ~:: CITY OF IOWA CITY MEMORANDUM TO: FROM: DATE: RE: Housing and Community Development Commission Community Development Staff May 8, 2008 May 15 Meeting Packet As you know, City Council met on April 28 to discuss the Housing and Community Development Commission's FY09 CDBG and HOME funding recommendations and they decided to reallocate the $18,000 in HOME funds from the Chauncey Swan affordable rental housing project to The Housing Fellowship's affordable rental housing project. City Council will again be discussing the FY09 CDBG & HOME funding recommendations at its Monday, May 12 informal meeting. The meeting will begin at 6:30 pm in Emma Harvat Hall at City Hall, 410 E. Washington Street, Iowa City. The public hearing and vote on the actual funding recommendations will be on Tuesday, May 13. Immediately after the public hearing, City Council will vote on the FY09 Annual Action Plan which includes the CDBG/HOME funding recommendations. The meeting will begin at 7:00 pm in Emma Harvat Hall at City Hall, 410 E. Washington Street, Iowa City. You are welcome to come to both meetings, but it is not required. The May 12 and May 13 City Council agendas and information packets are available at: www.icqov.orq/defauIUapps/councillaqendas.asp The following is a short description of the May 15 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. Presentation Regarding a Consensus Statement on Affordable Housing Karen Kubby will present the consensus statement on affordable housing drafted by a committee of individuals, developers and realtors concerned about affordable housing. Annual Action Plan Amendments There have been some program changes in the past fiscal year that require an action plan amendment. Some of the changes do not require an amendment; however staff included them to inform the commission and public about the project. The changes include: . FY06 Iowa City CDBG funded Downpayment Assistance Program - project cancelled; . FY06 The Housing Fellowship HOME funded Affordable Rental - project cancelled; . FY08 Iowa City HOME Lead grant - administrative change; and . FY08 Habitat for Humanity CDBG/HOME funded - Land Acquisition. Agreement stated acquisition of 3 lots, but 4 will be acquired. Staff will provide further updates regarding these projects at the meeting. (Over) Subcommittee Reports Members will provide committee reports regarding the Community Development Celebration and allocation process. Discussion of the Housing Market Analysis At April's meeting, the Chair requested this item to be on the agenda for general discussion for the next couple of meetings. The study can be found at www.icQov.orQ/affordablehousinQ. Monitoring Reports . Hawkeye Area Community Action Program - Transitional Housing (Richman) Contact AI Axeen, 337.5765 . Goodwill Industries - Facility Rehabilitation (Douglas) Contact John Watson, 337.4158 . Iowa City Free Medical Clinic - Accessibility (Richman) Contact Sandy Pickup, 337.9727 . Blooming Garden IHA LP - Homeownership (Douglas) Contact Jesse Burns, 338.7600 . The Housing Fellowship - CHDO Operating (Anthony) Contact Maryann Dennis, 358.9212 . Neighborhood Centers of Johnson County - Facility Rehabilitation (DeFrance) Contact Brian Loring, 358.0438 MINUTES HOUSING AND COMMUNITY DEVELOPMENT COMMISSION APRIL 17, 2008 LOBBY CONFERENCE ROOM, CITY HALL DRAFT Members Present: Jerry Anthony, Andy Douglas, Charles Drum, Holly Hart, Rebecca McMurray, Brian Richman Members Absent: Steve Crane, Marcy DeFrance, Michael Shaw Staff Present: Tracy Hightshoe, Jeff Vanatter Others Present: RECOMMENDATIONS TO COUNCIL (become effective only after separate Council action): . Recommend to the City Council the changes, as presented, to the Targeted Area Rehabilitation Program (T ARP). The program would be offered city-wide under the name General Rehabilitation and Improvement Program (GRIP). Approved 6-0. . Recommend to the City Council the FY09 Annual Action Plan as presented. Approved 6-0. CALL TO ORDER: Chairperson Anthony called the meeting to order at 6:30 P.M. APPROVAL OF THE MARCH 27, 2008 MINUTES: Hightshoe noted that she needs to add Linda Severson's name to the minutes. Hart noted that there were a couple of places where she was quoted where the wording did not seem right. Under "public services," on page 3, where it says: "Hart noted that she gave a similar amount to everybody, but that she did notice that some members have done the opposite by giving nothing to some applicants. She stated that she wanted to spread it out in order to give everyone something." She would like this changed to show that she is "open to allocating funds where they would do the most good." Another one is about the Extend the Dream allocation, on page 4: "... Hart stated that she questions if some of these applicants couldn't seek funds from other sources, noting that an applicant such as Extend the Dream Foundation - Operations..." - she stated that she was referring to the critical need for mental health services. Drum moved to accept the March 27, 2008 minutes as amended; seconded by Richman. Motion carried 6-0. 1 HOUSING AND COMMUNITY DEVELOPMENT COMMISSION APRIL 17, 2008 LOBBY CONFERENCE ROOM, CITY HALL PUBLIC COMMENT OF ITEMS NOT ON THE AGENDA: None. STAFF/COMMISSION COMMENT: Hightshoe noted that the City is going through a new process for minute takers. She reminded members that when a motion is made, the names should be stated out loud as the meetings are being recorded and this will help the minute takers in transcribing from the audio recording. Douglas spoke about the advocacy group for community development (FAIR) and stated that there are a couple of projects in the works. One was a survey looking to find out what the housing needs are. This survey was conducted at places like the Free Lunch program, Salvation Army, Pheasant Ridge, and Forest View mobile home park. He also noted that Karen Kubby, a Member of F AIR, has been meeting with housing developers and others from non-profit housing groups to discuss housing issues. He stated that they have come up with a number of policy suggestions, and he invited Kubby to come to next month's meeting to speak about these issues. TARGETED AREA REHABILITATION PROGRAM (T ARP) - PROGRAM CHANGE: Hightshoe noted that the Commission needs to make a recommendation to Council on the proposed changes to the TARP program. She stated that JeffVanatter of the Housing Rehabilitation division is present to talk to members about the proposed changes. Vanatter stated that the program began in 2001, when it was realized that some people did not meet the Federal guidelines or were just slightly over income guidelines, and this program was started to help that population. He also stated a part of the original intent was to improve homes and neighborhoods and increase the tax base. Hightshoe added that T ARP is for owner-occupied rehabilitation and does not receive HOME or CDBG funds. She stated that it is separate funding, and households up to 110% of area median income are eligible for this program. Vanatter shared a housing survey that was done last summer by housing staff, and he shared some of the information. He stated that there seemed to be a pretty strong need for housing repairs throughout the city, and he said that only a couple of blocks did not fall under the 110% of area median income. He stated that they would like to open the program on a city-wide basis. In the original neighborhoods, they have offered the program since 2001. Many have utilized the program; however eligible referrals are fewer in these neighborhoods as they can't use bond money for commercial or rental properties and some homeowners do not have enough equity in their homes for another project. Members asked questions ofVanatter regarding TARP, and he clarified the program's requirements. Anthony asked how much money was available for this program last year, and Vanatter stated that it was $200,000. He added that previously the funding was part of the annual budget, and that it was approved as part of the overall budget. However, he added that this year they were told they will need to go through the City Council in order to get this recognized as a "program" from here on out. Vanatter stated that he is not sure 2 HOUSING AND COMMUNITY DEVELOPMENT COMMISSION APRIL 17, 2008 LOBBY CONFERENCE ROOM, CITY HALL if they will get more than the $200,000, but that this amount is what has been budgeted thus far. Hightshoe noted that they do have carry-over funds in this account. Vanatter stated that currently they have a little over $300,000 from previous carry-overs, and should have the budgeted $200,000 in July. The discussion continued, with Vanatter explaining in more detail how T ARP works. Members asked if there had been any loan defaults to date, and Vanatter stated that there had not been. He explained what the pre-qualifying process entails, and how some don't make it past this point. With no credit or poor credit, and little equity, he stated that there have been few who have made it through the process in the past few years. Anthony asked about targeted areas, and Vanatter pointed this out on the map. The discussion turned to the areas being targeted, and it was noted that these are older areas of town and areas with high student populations. Vanatter noted that this brings down the income figures quite a bit. Hightshoe and Vanatter talked briefly about the increase in rehab in the area south of Highway 6 and in other portions of town. Anthony asked what types of projects are most common. Vanatter stated that on almost every house they do it would be windows, furnace/HV AC, plumbing, and electrical. Hightshoe added that in certain areas of town concrete, for sidewalks and driveways, would be a common problem. Vanatter stated that the largest projects are repairs and maintenance. McMurray asked if people can reapply, such as if they did their roof and now need to do something else. Vanatter stated that it would depend on the person's equity on the home. They like to see around 5% equity. Richman asked about making maintenance and repairs the priority and Vanatter stated that it pretty much is this way. He stated that they go over code issues and point out what is most important to get done, before they consider the person's "wish list" of things to do. Vanatter also explained the difference in federally funded programs of this nature, and what they can and cannot do for homeowners. Richman moved to recommend to the City Council the changes, as presented, to the Targeted Area Rehabilitation Program (T ARP). The program would be offered city-wide under the name General Rehabilitation and Improvement Program (GRIP); seconded by Drum. Motion carried 6-0. Hightshoe added that the Commission will be reviewing changes or policy proposals by the Public Housing Authority and the Community Development Division before they go to Council for consideration as it is one of the duties of the commission. The by-laws that state the duties of HCDC were enclosed in this month's packet. REVIEW THE FY09 ANNUAL ACTION PLAN: Hightshoe noted that members received the entire action plan via email, only the summary was enclosed in the packet. For the public it is also available online and at the Library and Planning Department. Hart requested a copy, one was provided. She stated that this document identifies the FY09 CDBG/HOME budget and also encompasses HUD's requirements as it relates to the Annual Action Plan and the activities to be undertaken in FY09. There are new sections such as goals for the program in terms of number of persons services, facilities assisted, housing created, etc. Staff took the amount of money estimated for FY09 and FYIO and based on project averages for prior 3 HOUSING AND COMMUNITY DEVELOPMENT COMMISSION APRIL 17, 2008 LOBBY CONFERENCE ROOM, CITY HALL projects, estimated the number of persons served, facilities assisted, etc. She said when 2008 is done, the members will then see the 'goal' and the 'actual.' She added that when they start on the next CITY STEPS plan for 2011 through 2015, it will be very outcome driven. Hightshoe pointed out that more has been allocated in "housing" than they planned, and more is in "rental" than was anticipated. In "housing counseling," she stated that they have not received any applications, and most housing providers state that this need is already being met. Hightshoe added that when they complete the annual review of CITY STEPS, we should review this. Anthony stated that there is a big demand right now for foreclosure type counseling, and he questioned if this would cover that type of counseling. Hightshoe stated that she would have to look at the definitions in CITY STEPS to see if it would. Anthony asked what happens if targets are not met, and Hightshoe stated that they would have to discuss and provide reasons to HUD in our CAPER why targets were not met. She stated HUD would review the reasons and evaluate our performance and if anything needed to be done, the City would receive some type of direction or requirement. Hightshoe stated that the rest of the document explains where the money comes from, lays out the budget and describes the activities to be undertaken. The last few pages are certifications required by HUD. She added that members received a copy of this budget, as well. She briefly went over the HUD-required documents and the certifications that the City has to sign. Members continued the discussion, asking for clarifications from Hightshoe on the allocation process. Richman brought up possibly using some of the economic development dollars, such as working with the Chamber to bring in more attractive jobs, as an example. Hightshoe noted that the Iowa City Area Development Group and the Chamber, as well as Wendy Ford, who is the City Economic Development Coordinator work on issues such as this, and that they use different incentives, such as tax increment financing. A member asked the question if an HCDC Member could possibly serve on the Economic Development Committee. Hightshoe stated it has been discussed previously at HCDC. As the Economic Development Committee consists of 3 Council members, it is not likely that an HCDC member would have a vote; however the HCDC member could attend, provide input and report back to HCDC. When discussed before no HCDC member volunteered to attend the meetings. Drum moved to recommend to the City Council the FY09 Annual Action Plan as presented; seconded by Douglas. Motion carried 6-0. REVIEW OF THE IOWA CITY HOUSING AUTHORITY FY2008 ANNUAL PLAN: Hightshoe stated that according to the by-laws, the Commission is responsible for reviewing policies and programs of the Public Housing Authority, Community Development Division, and making recommendations regarding the same to the Council. Basically, anything that is going to be going to Council for approval will first go through HCDC for their recommendation. Anthony asked if this includes the recent housing market analysis, and Hightshoe stated yes as it relates to actions that will be proposed by either of these two divisions. She added that next year, this plan, for example, will go 4 HOUSING AND COMMUNITY DEVELOPMENT COMMISSION APRIL 17, 2008 LOBBY CONFERENCE ROOM, CITY HALL through the Commission before the Council sees it. The plan has already been approved by Council. Hightshoe further clarified the reporting requirements and the various federal divisions they have to report to. Members continued to discuss the various funding available, and Richman stated that in regards to the Housing Authority, he wonders ifthere would be a benefit to increasing the dialog between the Commission and the Housing Authority. He noted the issue that came up in the allocation process last month, where the HA said they would take responsibility for all of the down payment assistance programs. He stated that this caught everyone by surprise, and he wonders if increased dialog wouldn't be helpful. Anthony stated that he agrees, but asked if they could hold up on this discussion until Item 12 of the agenda, review of the allocation process. He agreed that it is important. He added that they could discuss other shortcomings of the allocation process as well. Anthony stated that he has a couple of questions regarding the Housing Authority and that he thought Steve would be present this evening. Hightshoe noted that he is out of town for the week, but she added that she can email him the questions and then respond to members. Anthony said that he has two or three questions, pertaining to pages 18 and 19 of the HA report. First, he said he would like a clarification on the fifth bullet item on page 18. He added that the next bullet point is excellent and that Housing Authorities that have lobbied for this should be commended. On the second bullet from the bottom, Anthony asked where the money is going to come from, and if this money will compete with money for rental housing or Section 8 voucher programs, adding that there is a very limited supply of rental housing nationally. DISCUSSION OF THE COMMUNITY DEVELOPMENT CELEBRATION: Hightshoe noted that typically every summer they have a celebration where they have all of the non-profits come in and the Mayor presents them with their checks. She added that the celebration typically highlights prior and current projects and staff also submits press releases. She added that in the past they have had interns working in the department and they typically have planned this event. However, in the past few years the funds have not been available for an intern in this department. Hightshoe asked if the Commission feels this celebration is still pertinent, or if they should downsize the celebration. She stated that if they would like to proceed as they have in the past, a committee needs to be formed that will discuss the date for this celebration and plan it. Drum stated that this has always been a nice event, and he asked what kind of money it takes to do this. Hightshoe noted that it is more the amount of staff time that is needed, as they are short on staff in the department, as well. Anthony stated that it is a very good event to have, and that perhaps another department has an intern they could use. He believes it shows the good work that the City does in this area. Richman asked if the event could accomplish something more, something it isn't currently doing, what that would be. McMurray noted that she believes that last year the presentation about the issues was very good, and that this helped clarify things for her. Drum added that this time is also recognition for those agencies that receive funding, and he asked ifthe members couldn't help more in planning this celebration. Richman stated that he would be in favor of perhaps publicizing the event better. He noted that they have had new 5 HOUSING AND COMMUNITY DEVELOPMENT COMMISSION APRIL 17, 2008 LOBBY CONFERENCE ROOM, CITY HALL applicants the last few years, and that the more agencies involved the better. Anthony noted that the last few years, both Hightshoe and Long have gone on local radio programs to highlight the event, and that this helps to get the word out too. Hightshoe stated that it sounds like there is interest, and therefore, they need to form a subcommittee for this summer's celebration. McMurray, Drum and Anthony volunteered to be on the subcommittee. Discussion continued, with members suggesting that the various neighborhood associations receive word of this celebration as well. DISCUSSION OF FY08 PROJECTS THAT HAVE NOT PERFORMED PER THE UNSUCCESSFUL OR DELAYED PROJECTS POLICY: Hightshoe explained the policy. Each year CDBG recipients are required to spend at least 50% of their award by March 15th of each year, and if they don't spend any money, they are asked to explain why there has been a delay. She further explained this process, and stated that there are several projects that have not spent 50% of their award. They are: Goodwill, Free Medical Clinic, Neighborhood Centers of Johnson County, Wetherby Splash Pad, Blooming Garden, and the Housing Fellowship Rental. She briefly explained the status of each. Goodwill recently put their project out to bid and a pre-construction meeting will be held May 9. She noted that they were coordinating with the Cedar Rapids location, and the project will be completed this construction season. Free Medical Clinic completed their bathroom project, and the accessibility projects will start with better weather. Neighborhood Centers of Johnson County is a HUD-based project and they encountered difficulties entering a leasehold mortgage due to some extra requirements. She noted that they are in the processing of working out the final details of the bid to submit to area contractors and plan rooms. The project will also be completed in the current construction season. The Wetherby Splash Pad was allocated $30,000 in CDBG funds. Parks and Rec. allocated $100,000 and they received approximately $35,000 in open space funding and additional donations from the community. They have approximately $180,000. They continue to fundraise in hopes of purchasing the desired size of splash pad and not have to scale the project down. The project will now be able to move forward once final plans are approved. Blooming Garden has selected the lot and is working on the design. An agreement for funds will be entered soon. As the funds are for homebuyer assistance, funds would not get spent until the units are built. Members agreed that all the projects are making satisfactory progress. Further updates will be provided by staff if a project stops proceeding or becomes delayed further. DISCUSSION OF THE HOUSING MARKET ANALYSIS: Anthony suggested they have this as an agenda item for several meetings, as they will have a lot to discuss. This way they can prepare their recommendations for Council. Anthony continued, stating that he believes this market analysis is a good document and that it is much better than the one done in 1997. He said that one advantage is that it separates out family housing needs from student housing needs, which he believes is a good idea. It helps to identify the needs of families in both ownership and rental housing. He further addressed the information in the market analysis, pointing out the various , numbers generated. Hightshoe noted that the Housing Trust Fund hired a facilitator to continue discussions and actions to increase affordable housing and JCCOG is sponsoring a committee of staff and elected officials from the cities in the study to 6 HOUSING AND COMMUNITY DEVELOPMENT COMMISSION APRIL 17, 2008 LOBBY CONFERENCE ROOM, CITY HALL develop actions for their own communities to increase affordable housing and meet the goals stated in the plan. Anthony then discussed several points - one being the standard definition of "affordable housing." He added that the consultant used the standard 30% on this item for rental housing, but that they used a 50% standard for ownership housing. He stated that this is not right, that he believes the consultants should be using standard, acceptable definitions. Anthony continued with his concerns, adding that there is an internal inconsistency in this evaluation. He stated that he has asked for documentation on why it was done this way, however, he has not received anything to date. Anthony stated that he believes they should focus more on rentals and owners that are cost burdened more than 50%, but that the study should be free of these policy biases. He stated they should have what the federally accepted standards are for defining unaffordable homes. The other problem with this study, according to Anthony, was that the consultants found that 31 % of the workforce in Johnson County lives outside of the county and commutes to Johnson County. He added that this is about 15,700 people who commute. Anthony added that a big chunk of these people probably have made the choice to not live within the county, but that he believes a large chunk is living outside of the county because they cannot afford to live here. He stated that this number is not even part of the analysis, which concerns him. Richman stated that he flagged the 50% figure, as well, and that he has never seen that number used before either. The discussion continued on this, with Anthony stating that for consistency they should have used 30/30 or 50/50. Anthony stated that the data that was captured in the study is more the retirees on fixed income whose property taxes have gone up, not families who are spending more than 50% of their income on housing. Anthony suggested they ask the consultants to provide more information on their findings. Drum asked how seriously the 50% damages the usability of this study, and how hard would it be to go back. Anthony responded that the consultants did present 30% numbers in January, so it should not be a problem to get this information. He suggested that the City request this information. Drum added that it is not clear to him how the numbers work in the plan, and he questioned how systemic of a problem it would be. Hightshoe responded to questions from members regarding the Steering Committee decisions. Anthony voiced his concerns further, with everyone referring to the market analysis information. Anthony added that the recommendations that have been made by the consultants are very generic, in his opinion. He stated that the City would probably be best served if there were some dates attached to these recommendations, and he gave several examples. DISCUSSION OF THE COMMISSION'S ROLE IN ADVOCATING FOR COMMUNITY DEVELOPMENT NEEDS - HOUSING, JOBS & SERVICES: Anthony noted that they have already addressed this in tonight's discussions, to some degree. He added that the fact that this is now part of the by-laws, it reinforces the need for the Commission to be more engaged in this area. He stated that for the past ten to 7 HOUSING AND COMMUNITY DEVELOPMENT COMMISSION APRIL ]7, 2008 LOBBY CONFERENCE ROOM, CITY HALL twelve years, the Commission has spent most of their time on allocations, which was not the intended purpose. He stated that he believes they will be doing this moving forward. REVIEW OF THE FY09 ALLOCATION PROCESS: Richman stated that he believes there are several issues regarding housing applications to discuss. He questions if they shouldn't coordinate with the Housing Authority. Anthony agreed that they should have better coordination in this area. Hightshoe stated she would like some direction/discussion regarding submitting documents after the application has been turned in. Due to the amount of information submitted after they apply for funds, not all commission members are aware or are reviewing the same information. This needs to be addressed before the next allocation cycle. Members briefly touched on some of the issues they faced during the allocation process. Members responded to Hightshoe concerning the amount of paper and information they received in this process, and if they need all of it. Hightshoe also noted that perhaps they need to change the Q&A session that they have for the allocation process, perhaps splitting it up into two meetings - one for housing and one non-housing. Anthony added that he was contacted by several applicants, after the allocation process, who suggested they make the process like a public hearing. Hightshoe stated that in her opinion they already have a very open process. She addressed her concerns with Anthony's suggestions. She relayed some of the complaints that she received from applicants. Drum noted that he would like to see a closer relationship with the review sheet (ranking sheet) and the staff report, as far as a breakdown of information. He believes this would make the process go smoother. Hightshoe noted that applicants always question the ranking, and members agreed that they like the ranking, as it brings things into perspective for them. The discussion continued, with members stating their likes and dislikes of the allocation process. Anthony stated that staff did a fantastic job in providing staff comments, and he asked if staff would be comfortable in making recommendations, or sharing their recommendations with the Commission. Hightshoe noted that some Commissions have wanted this, and others don't, so it depends on the consensus of the Commission. Hightshoe stated that she would check on this to see if staff can do this. McMurray added that a per-unit cost on the housing section would be helpful, as well. She added that having the information up on the screen while they are doing the allocation process would also be helpful. Members continued to discuss what other items would be helpful for them during the allocations. Richman stated that he would like to see a more standardized comparison in the housing allocations, and gave a couple examples of sources. He stated that he would be glad to work on coming up with something like this. He also would like to see further discussion on whether or not they pay enough attention to affordability issues, and not just money issues. McMurray asked about the down- payment assistance programs and how this is now a ten-year affordability period. Hightshoe responded to questions on this, and further explained some of the issues involved. Members spoke briefly about their concern that some of the budget statements from applicants were too brief. Hightshoe asked if the members want to form a subcommittee to address these issues, and members stated they would like to do this. Anthony asked Richman if he would be part of this committee, to which he agreed. Drum and Crane will also be on this committee. 8 HOUSING AND COMMUNITY DEVELOPMENT COMMISSION APRIL 17, 2008 LOBBY CONFERENCE ROOM, CITY HALL In final discussion, a member asked Hightshoe about the Housing Authority changing their strategy at the end of the allocation process, and if this broke any rules. Hightshoe stated that she addressed this with legal, and basically, taking this issue to the commission after submitting the application was not the recommended course of action. The commission can only review the application as submitted and presented. Substantial changes to an application or "combining" projects can be done, but only at the Council level. If this happens in the future, the applicant would be encouraged to contact Council directly with their request as the commission must evaluate the application as submitted. Richman spoke about tax credit projects, stating that they are very complex situations, but he questioned if there isn't something they can do to move projects along faster. Hightshoe briefly addressed his concerns, stating how they could possibly change allocation dates. This led to a brief discussion on "home banking" and if something like that would work here. Hightshoe explained the various regulations that the City must adhere to with the various federal funds. ADJOURNMENT: McMurray moved to adjourn the meeting at 8:50 PM.; seconded by Douglas. Motion carried 6-0. The next meeting is scheduled for Thursday, May 15,2008, at 6:30 P.M. at City Hall. 9 City loans help businesses get started f'r" , t ...... -- :i . . -- ',- ..'" ....~.._ _ -".~ ,u. ;~ t . 1 l ~ .,..~ -~.~~t~~~;.: , Press-Citi.zen / Dan Williamson Home Ec. Workshop co-owner Alisa Weinstein, left, helps customer Phoebe Martin with a project Thursday at the craft store and learn- ing center in downtown Iowa City. Weinstein and co-owner Codi Josephson opened the new business with the help of a Community Development Block Grant designed to help small businesses get started or expand. Number of applications for program has almost tripled By Kathryn Fiegen Iowa City Press-Citizen Codi Josephson and Ali~a Weinstein met in a knitting class several years ago and talked about how nice it would be to . have a single place where th(!y could get supplies, take craft classes and sip hot coffee. Last October, they saw the perfect spot for their dream busi- ness open up on North Linn Street. However, they lacked the money and know-how to start a business. "There's just so much we did- n't know," Josephson said. The pair started at Hills Bank, arid someone there referred them to another, unique lender of sorts ---; the City of Iowa City. Through a special economic development fund, the women were able to borrow $15,000 to help them meet underwriting guidelines for other private loans they needed to start Horne Ec. See CDBG, 4A Press-Citi.zen / Dan Williamson Katharine Staniforth looks over the selection of knitting yarn for sale Thursday aHhe Home Ee. Workshop in downtown Iowa City. COBG From 1A Workshop, 207 N. Linn St. They also got help from the University of Iowa's Small Business Development Center in writinga business plan. City Associate Planner Tracy Hightshoe said the city started diverting 15 percent of its feder- ally-funded Community' Development Block Grants, or CDBG, to economic develop- ment projects in 2002. The low- interest loans help small busi- nesses in the area get on their feet or expand, she said. Because of some changes made last year in the program, the number of businesses apply- ing for the loans almost has tripled. There were four applications in fiscal year 2003; so far thiS year, there have been 11 applications. Since 2003, the fund has loaned more than $630,000 to nine busi- nesses and two nonprofits. ,There, are two things that keep small businesses from starting up, Hightshoe said: col- lateral and cash. Without enough of either, many don't qualify for . private lender loans. "They are just falling outside the bank's underwriting guide- lines," she said. Last year, Hightshoe said the city began working with private lenders to secure solid capital for small businesses. TIle funds are now used as a way to help small businesses' gain the leverage they need to get bigger loans. Businesses also can now apply for the funds at any point during the year, instead of once a year. "I'm just hoping small busi- nesses get enough capital to suc- ceed," she said. Applicants must meet income requirements and provide jobs to low- and moderate-income people. After getting the loan, they have to submit reports on their progress to the city. They also check in quarterly, if not more often than that, at the ill small business center. "If you get funding through us, you have to get an evaluation and technical assistance," Hightshoe said. "Some (applicants) have great ideas but don't have a lot of business experience. " Paul Heath, director of ill's Small Business Development Center, said there are a lot of . things he works with business owners to solve. "Financing always seems 19 be an issue," he said. "They might <underestimate what they might need by way of working capital and inventory, things like that. " And then if they bring on employees, many owners neep help navigating payroll and insurance systems, Heath said. : "We wantto give them every chance to succeed and avoid some obvious pitfalls," he sai<:I, adding that eventually partici- pants should "graduate" into hir- ing private consultants and accountants to help them. . Jaime Powers, owner ana pastry chef at Deluxe Cakes & Pastries; 812 S. Sllnlrnit St., saM sometimes the required papel'- work was a little overwhelming. Her business received an $8,455 loan to start up in 2004. "There was a lot to meeting the requirements of the loan: I had to focus on," she said. But, Powers said, the low interest rates were nice and site finished repaying her loan last year. On top of that, she said h~r business has really been taking off, increasing profits each year since opening. . "I think it's great to hav~.a neighborhood place like thi6;" Powers said. "I think the dty wanted to be a part of that." .: Josephson said Horne Ep. couldn't have opened withOllt the city loan and planning ass$- tance, and the business has been bustling, she said. . "We've really been pleas~d with the response we've gotten," Josephson said. "It's only gottEin better. " \ Tracy Hightshoe Page 1 of2 From: City of Iowa City [web@iowa-city.org] Sent: Tuesday, April 29, 2008 12:25 PM To: Tracy Hightshoe Subject: ICgov.org Media Release: General City News ~ City's economic development funds help create The American Dream for Sudanese couple Posted by: Community Dev. Originally Posted 4/29/2008 12:24:54 PM Contact: Siephen L.ong Contact Phone: (319) 356-5250 The American Dream is alive and well - and open for business inside the doors of Nile Valley Restaurant at 335 South Gilbert Street in Iowa City. The restaurant, which features traditional Middle Eastern and Mediterranean cuisine including hummus, falafel, tabbouleh, baba ghanoush, okra, and eggplant, is owned by Ilham Mohamed and her husband, Bedrelddin Ahmed. Nile Valley Restaurant allows Ilham to showcase her culinary skills and heritage to bring authentically prepared Middle Eastern cuisine to Iowa City, the community they now call home. While Ilham and Bedrelddin own the restaurant together, Ilham serves as the manager and decision-maker, and oversees the restaurant's day-to-day operations. Using fresh, traditional ingredients such as chickpeas, eggplant, fava beans, feta cheese, tahini, vegetables, and lamb, Nile Valley offers patrons a choice of ordering off the menu or enjoying a variety of foods from their all-you-can-eat buffet. Other specialties include gourmet coffees, uniquely prepared in traditional Sudanese fashion, fresh juices, and freshly baked desserts, including baklava. Table seating is available for small or large groups, and carryout is also available. Business hours are 11 a.m. to 2:30 p.m. for lunch, and 5 to 9 p.m. for dinner, seven days a week. IIham continuously looks for ways to introduce her restaurant to new patrons, and is currently exploring the possibility of live music and outdoor seating. The opening of the restaurant last November was a dream come true for the Sudanese couple, who had been forced to leave their home in Sudan for political reasons when they became perceived as being "anti-government." They were granted political asylum and fled to the United States 15 years ago, arriving with $150 in their pockets, no home, no jobs, no idea of how they were going to survive, and a baby on the way. They have since become U.S. citizens. Although the road up has not been an easy one, today the family is enjoying the success that their hard work and determination has brought them in this country. The idea of owning their own business had been brewing in the back of their minds for years - through the birth of their three children, during the time they lived in Virginia, after their move to Iowa City in 1998, and while each pursued their educations -lIham on an Associate of Arts degree at Kirkwood, and her husband on a Masters Degree and PhD in the 4/29/2008 University of Iowa's College of Education. Five years ago, they decided it was time to put plans in action to bring their dream of a restaurant to fruition. A combination of personal savings, a bank loan, and a $25,000 low-interest economic development loan from the City of Iowa City's Community Development Block Grant program enabled the couple to get their business underway. They leased ground floor space in a newly constructed building on Gilbert Street in downtown Iowa City and made the necessary renovations to convert the space for use as a restaurant. The City's support through the CDBG funds, which offers financial assistance to business development projects that benefit low- and moderate-income persons, was critical to getting their business off the ground, Ilham stated. Not only did the City's loan help fund substantial start-up costs, it also helped secure bank financing for their operation. For IIham, owning the restaurant has provided an opportunity for her to be her own boss, and the restaurant also gives her the chance to do something she loves. "I'm happy, laughing all the time. I get to socialize with friends and customers while I'm working." When asked how she feels about seeing her family's dream of business ownership become a reality, her response was quick. "I'm blessed," she replied. "When we came to the United States, we had nothing. Today we have a house, a car, a business. Our three girls go to the best schools. I thank God for that." . View and edit your subscription details. . ~i$iLQLJLjQP.~_R<::I9?J9LeIl1P1Qym.ent oRRQrtunities. . '.,I'ieYv'_morELilew$ from the City of Iowa City. Do not reply directly to this e-mail! It is produced from an automated system, and is not monitored for replies. If you have a question or comment about this information, please contact the originating department of this message, or by using our te_eJjb<::l~JslQrm. For technical questions regarding the website, please contact our web team. 4/29/2008 Page 2 of2