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Home My WebLink About02-19-2009 Housing & Community Development Commission AGENDA HOUSING AND COMMUNITY DEVELOPMENT COMMISSION IOWA CITY PUBLIC LIBRARY, MEETING ROOM A 123 S. LINN STREET, IOWA CITY THURSDAY, FEBRUARY 19, 2009 6:00 P.M. 1. Call Meeting to Order 2. Approval of the December 18, 2009 Minutes 3. Public Comment of Items Not on the Agenda 4. Discussion Regarding Applications for FY10 Community Development Block Grant (CDBG) and HOME Investment Partnership Program (HOME) Funding - Question/Answer Session 5. Adjourn ,~ 1 ~~5.....a~'" (~W~~ ~:. ~...~ -- CITY OF IOWA CITY MEMORANDUM Date: February 13, 2009 Housing and Community Development Commission Tracy Hightshoe, Associate Planner February 19 HCDC Meeting & Site Visits To: From: Re: The February 19 meeting will be held at the Iowa City Public Library in Meeting Room A and it will be structured around the Question/Answer session with the applicants for FY10 CDBG/HOME funds. The meeting will begin at 6:00 PM. The FY10 Allocation Timeline mistakenly stated 6:30 PM. Staff corrected the timeline and included a revised copy in your packet. A copy of the schedule for the evening and the staff report for each application are enclosed. The public service and public facility applicants are allowed five minutes and the housing applicants are allowed ten minutes to respond to questions. The staff report includes concerns or issues that staff had regarding the proposed project. Staff advised applicants not to submit written materials in response to staff concerns. If commission members have the same concern or any other concern, please ask the applicant during their session. HCDC may ask applicants to submit additional information. If so, all received information will be collected and staff will mail all HCDC members the materials after the meeting to ensure all commission members have the same information. Please review the applications and staff reports. On the staff reports, staff identified if the applicant received CDBG and/or HOME funding in the last five years. If staff had any concerns about the capacity of an organization or administration of a previous project during this same time, it is included in the report. Staff included cost per unit and the estimated cost per square foot for new construction projects when the values could be determined. The Financial Terms for CDBG\HOME Applicants from the FY10 Applicant Guide is included in the packet. It clarifies Council's policy on financing terms for CDBG/HOME assisted projects. The FY07 Location Map identifying areas encouraged for affordable housing opportunities is enclosed. Staff recommends at this point, to not include any points for site location on your ranking sheets until we can discuss this issue at the March 12 meeting. Staff will email the ranking sheets and proposed allocation form (excel format) to HCDC members. The forms are due back to staff on Friday, February 27. If you prefer to have hard copies of the forms, please contact staff. The forms can be delivered, faxed or emailed to my attention. HCDC will meet March 12 & 26 to review the groupings and to make funding recommendations. These meetings will also be held in Room A at the Iowa City Public Library. If you have any questions about these items or will be unable to attend, please contact me at 356-5244 or by email at tracy-hiohtshoe@iowa-city.oro. See you the 19th! MINUTES HOUSING AND COMMUNITY DEVELOPMENT COMMISSION DECEMBER 18, 2008 - 6:30 PM LOBBY CONFERENCE ROOM, CITY HALL PRELIMINARY Members Present: Stephen Crane, Andy Douglas, Charlie Drum, Holly Jane Hart, Rebecca McMurray, Brian Richman, Michael Shaw Members Absent: Marcy DeFrance, Michael McKay Staff Present: Tracy Hightshoe Others Present: Maryann Dennis, Charlie Eastham RECOMMENDATIONS TO COUNCIL (become effective only after separate Council action): None CALL TO ORDER: The meeting was called to order at 6:30 p.m. APPROVAL OF THE NOVEMBER 20. 2008 MINUTES: Drum motioned to approve the minutes. Crane seconded. The motion carried 7-0 ( DeFrance and McKay absent ). PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA: Maryann Dennis of the Housing Fellowship informed the Commission that the Aniston Village Project was awarded low-income housing tax credit status. Dennis said that 35 applications were received, and 15 were awarded, 2 of which were non-profits. Dennis said Aniston Village was the only application from Iowa City, and is the only application in the state that provides single-family housing. There was no other comment from the public. STAFF/COMMISSION COMMENT: Hightshoe noted that in this month's packet there is a report on program income. Total CDBG & HOME program income was $260,000 in FY08. The major source of program income is the City's owner occupied housing rehabilitation program. A lien is placed on the homeowner's property. When they sell or rent the property, the amount of assistance the City provided is repaid. Some households are able to make monthly payments to repay, but for some the City does not get repaid until the homeowner sells, dies or when the home no longer remains their principal residence. HOUSING AND COMMUNITY DEVELOPMENT COMMISSION DECEMBER 18, 2008 LOBBY CONFERENCE ROOM, CITY HALL Page 2 of9 Economic development loans are also repaid, most with interest. $13,000 was received during the fiscal year. The remaining public facility projects continue to repay their loans. Current policy for public facility loans are conditional occupancy loans that only have to be repaid if the recipient is in default. Total HOME program income was $99,285, which includes rehab from the owner-occupied rehab program, all rental projects, any owner-occupied project where it was sold and the money came back. Total program income is down $42,000 from last year, so it will be interesting to see how FY09 comes in, Hightshoe said. Crane asked why there was a drop from last year. Hightshoe said that on some of the economic development projects there are monthly payments so it is a fairly reliable source of program income. With rehab, however, if the amount of the rehab payment is over what the homeowner pays (if they pay more than 30% of their housing costs already) then the City does not require them to make monthly payments. Instead, a lien is placed on their property and when the property is sold the payment comes due. Rehab makes up a large chunk of program income; however, the income is sporadic. Richman asked if this money is then added to the amounts that are available for allocation the next year. Hightshoe said it is not because they are required to estimate their FY08 program income, so it has already been allocated. Because it is based on estimates, sometimes the following year's estimate has to be lowered to make up for shortfalls in prior year's program income. Hightshoe said that FY09 income will have to be watched closely as if it is not coming in at the rate expected and could therefore affect FYlO funding. Hightshoe passed out a report outlining what financial terms other entitlement cities offer their low- income tax credit projects. She said they vary across the board. She said there were not a lot of cities that provide grants, but there were deferred loans, interest-only payments, etc. Davenport did true gap-financing with a wide variety of terms offered on a project by project basis. Hightshoe said Council Bluffs was interesting because they are in a consortium with Omaha. Thus, when a Council Bluff's project pays program income it does not necessarily get reinvested in their city. Des Moines goes through quite a review process with a balloon payment after year 16. Hightshoe said the majority had a general structure they followed, making exceptions as needed. Richman announced that Deb Briggs of the Iowa City Housing Authority (ICHA) would be leaving her position as Public Housing Coordinator to take a position with the Iowa Finance Authority. Pat McKay, currently an inspector with Housing and Inspections Services will be taking over Briggs' position. Hightshoe cautioned that this could cause some delays for the HOME assisted downpayment program as Briggs' had been running the program and was also a certified mortgage counselor. Hightshoe passed out the FY09 aid-to-agencies recommendations for the Commissioners to review. The FYI 0 HOME and CDBG application process has just begun, with the first applicant workshop having just taken place. Hightshoe noted that the first home-based business for CDBG economic development funding was just approved. This is a handyman and property maintenance business which qualified as a micro- enterprise that will be hiring one full-time employee. Crane asked if it was ever necessary to monitor the financials on any of these businesses. Hightshoe said micro-enterprises are the easiest because they just have to qualify as a micro-enterprise when the application is made. Even though they have to qualify as a micro-enterprise upon award, we have not had one expand so rapidly as to not be considered a micro-enterprise during the first year. Crane asked how much funding was left for economic development since a lot of funding was used this year. Hightshoe said there had been $155,000, and $35,000 was just allocated to the micro- enterprise she had mentioned. She said that $95,000 would be added to the funds for FYI0. Staff HOUSING AND COMMUNITY DEVELOPMENT COMMISSION DECEMBER] 8, 2008 LOBBY CONFERENCE ROOM, CITY HALL Page 3 of9 will make recommendations for this money based on applications received. She noted that in the 5- Year Plan, public facility spending is not up to the level required by the goals that had been set. The target for public facilities was 21 % of the budget, and only 13 % has been reached. If applications are low, staff may make a recommendation not to fund economic development quite up to the $95,000 level, and shift some of those funds to public facilities or other spending. Hightshoe said she is finding that it is much easier to concentrate on micro-enterprises for economic development funding, and that these generally require less money/capital. Hightshoe said that she has found that businesses that are simply creating jobs have more difficulty maintaining the necessary paperwork. She noted that in prior years City Council has been pretty adamant about fully funding economic development, so staff would have to wait and see what applications are received. Crane asked if many recent applications had been denied. Hightshoe offered an example of a home-based daycare business whose application was denied, as it could not be determined if the benefit would be more to the homeowner in remodeling the home or more for the business. She said staff and the committee have denied potential businesses. Many due to poor credit scores (not caused by a health problem), lack of a business plan, or insufficient information. PUBLIC HEARING & APPROVAL OF THE FY08 CONSOLIDATED ANNUAL PERFORMANCE & EVALUATION REPORT (CAPER): Hightshoe explained that this was the HUD required evaluation report that is typically due by the end of September (3 months into the current fiscal year); however, due to the flood, HUD gave staff an extension to December 31,2008. Hightshoe said it puts in perspective how much was accomplished over the course of the year. She said the "meat" of the document is actually in the tables found on page 16; they summarize CDBG- assisted projects. These tables outline which projects are still underway, how much was spent, etc. Hightshoe noted that pages 32-36 are all new HUD required tables which take the CITY STEPS plan and breaks it down into estimated numbers for each year. Hightshoe acknowledged that many of the original goals may have been unrealistic given the amount of funds to be received. For example the goal of helping 120 families with down-payment assistance was not realistic given the amount of funds received and how much downpayment assistance is needed for a low-income household. The new CITY STEPS plan will incorporate more realistic goals based on estimations of the amount of money the City will receive, and what kind of programs can be supported with it. Shaw asked how much was allocated in the FY08 cycle. Hightshoe said that for public services there was about $124,000, $105,000 of which went to aid-to-agencies (MECCA, UAY, Elder Services), leaving only about $19,000 to fund other agencies. Hart said it was her impression that there was only $9,000 left. Hightshoe explained that that was for FY09, and that for FYlO only about $10,000 is available, making it a competitive process. Shaw asked if what this meant was that for Elder Services, for example, the CBDG funding was $59,500; Hightshoe said this was correct. Hightshoe eXplained that HCDC provides $105,000 for the aid to agencies budget. Rather than dividing this $105,000 among all 16 agencies, staff takes the three agencies (receiving the most funds) and who have the capacity to administer federal funds and enters a CDBG agreement with just those three agencies. In this way, staff avoids imposing all of the federal requirements on the smaller agencies. Hightshoe said she believes that in FYI 0 the aid to agencies also takes a hit. Douglas asked if it was correct that it had been agreed to put a $2,500 minimum on public service applications. Hart said that her impression was that this would better target the money to agencies that can viably use it; she said she believed Council also liked the idea of making a larger impact. HOUSING AND COMMUNITY DEVELOPMENT COMMISSION DECEMBER I 8, 2008 LOBBY CONFERENCE ROOM, CITY HALL Page 4 of9 Richman gave an example that instead of allocating $10,000 to six or eight agencies; it would now be allocated to a maximum of four agencies. Douglas noted that the Commission will have to discuss how best to prioritize funding. Hart said she has wondered ifthe Commission should more broadly consider other types of funding sources in its overall discussions, as it is usually the same agencies that require funding. McMurray said she thought there was a three year cut-off for CDBG funding. Hightshoe said that there used to be a three year funding limit for CDBG public service funding, but that it was dropped prior to her employment with the City. Hightshoe said the "double-dipping" question was never really resolved, and the Commission would sort of have to go on the basis of who applies. She said that it could be put on the January agenda as part of the year-end report and the review process. Crane asked if economic development funds could be used for public service. Hightshoe said they could not; CDBG rules are very specific and have very stringent definitions. Economic development basically has to go to for-profits (with some exceptions for specific job training programs). Hightshoe said she has received no public comment on the report. Richman opened the floor for a motion. Hart motioned to approve the FY08 CAPER with corrections as noted in discussions (heading change on a table). Drum seconded. The motion carried 7-0. OLD BUSINESS: · Review and Discuss Amendment to CITY STEPS as it Relates to Chane:es in Proiect Financine: Currently, cases are not reviewed unless there has been a substantial change in purpose, scope, location or beneficiary of funding. At last month's meeting, Hightshoe noted that there was discussion about modifying language in CITY STEPS so that a change in financial terms also constituted a "substantial change." Hightshoe said that staff has never been thrilled with the review process in CITY STEPS, as even time-sensitive issues can sometimes take two months because they must go back through HCDC and City Council. Staff is looking at alternative ways to review. In the meantime, language changes have been proposed to address a change in financial terms. Richman asked what the schedule for such changes would be. Hightshoe said that a new CITY STEPS plan is due by December of next year; in January a consultant will be hired to take it through the public input steps and community meetings, and then will draft an initial plan. Richman invited Maryann Dennis and Charlie Eastham of The Housing Fellowship to address the Commission on the subject of changes in financial terms resulting in a review. Dennis said that when The Housing Fellowship requested a change in financial terms they felt they were making a reasonable and honest request in order to be able to provide affordable housing to low-income Iowa City residents. Dennis said that it is her personal opinion that this new policy is being established because of The Housing Fellowship, and that she is very sorry to hear that. Dennis said she was not sure it was wise for a local unit of government to try to establish a policy because of one applicant. On the other hand, The Housing Fellowship has been in business for many years and as a private non-profit, Dennis said, their whole intention is to provide housing for people of low-income. She said that she thinks the amendment is unnecessary, and she would ask that projects be reviewed on their merits and their priorities. HOUSING AND COMMUNITY DEVELOPMENT COMMISSION DECEMBER 18, 2008 LOBBY CONFERENCE ROOM, CITY HALL Page 5 of9 Dennis said that in The Housing Fellowship's case, if their request had had to go back to Council, they would not have been able to submit their application (which ultimately was granted tax-credit status). Dennis said that if this becomes policy, then they will always first seek the amended terms they received (20 years deferred at 0% interest), as will every other applicant. Eastham said that as he understands it this proposed change has the intended purpose of the City and the applicant settling on the most reasonable terms. If that is the general purpose, then it does not get to the ultimate goal of getting to the best loan terms to encourage affordable housing. Eastham said that for tax-credit projects the best terms for HOME funds cannot be known until all of the financing is in place for the project. It is not known what the tax credits are going to sell for until after the application processes are completed and the syndicator commits to a price. At that point, the general contractor knows what all of the financing is. It is not until that point that it is rational to look at the City's terms for financing and see if the original terms should be modified. Douglas asked for clarification on what triggered the request for the change in terms. Eastham said it was the requirement of submitting the application by October 31 st. Hightshoe said the financial terms did not change; the budget did. Dennis explained that everything changed between October 7th (the date The Housing Fellowship requested a change in financial terms from HCDC) and October 31 st (the date the application was due). Dennis explained that the qualified allocation plan changed and the costs that were eligible changed, as a result, the whole budget changed. Shaw said that it was his understanding that the changes were triggered by changes that IFA made at the last minute. Eastham said The Housing Fellowship had been talking about requesting changes in the terms for the HOME funds since summer time, because they had concerns all along that the original terms would not make it through the tax-credit process. Dennis acknowledged that the budget for the project did change a lot between October 7th and October 31 st. Shaw said that as he recalled, because it was not a substantial change according to CITY STEPS, HCDC did not have the authority to require The Housing Fellowship to return to the Commission. Hightshoe said that based on the budget that was ultimately submitted, staff would not have made the recommendation for the change in financial terms that was granted. Hightshoe said she did not want to get back into a conversation about what had happened, but wanted to focus on how to proceed from here. She said that one way of proceeding with low-income housing tax-credits would be to approve it with no financial terms and then have HCDC give final approval in October when all the numbers are in. Eastham said he is not sure that is even possible; Hightshoe said they would look into it. Dennis said she also believed that it depended on what the City allocated HOME funds were being used for on the project. Dennis said they have always used the funds for land acquisition; with land acquisition, you have to have site control before the application can be sent in. Shaw said that for him changing the policy was not related to one particular agency doing what they needed to do to keep a project moving forward. Shaw said his understanding is that the policy at that time might not have been a good policy to be able to make effective decisions as a Commission and he wants to look at the policy in that context. Richman said that there were, in his opinion, two things that the Commission was not there to discuss: 1) Aniston Village; that project is done and their allocation has been made, and 2) concepts for broader investment policy. Richman said the item on the agenda is whether or not an amendment is needed for CITY STEPS to help the Commission respond to changes in projects, and, if so, is this the correct amendment. Richman suggested continuing along Shaw's line of discussion and focus first on whether it is appropriate for HCDC to have the ability to respond to changes in projects. Hightshoe said that there is no pressing need on the immediate horizon to make these changes. She said ifHCDC HOUSING AND COMMUNITY DEVELOPMENT COMMISSION DECEMBER 18, 2008 LOBBY CONFERENCE ROOM, CITY HALL Page 6 of 9 wished to wait and combine it with the other changes to CITY STEPS that would take effect next year that would be fine; ifHCDC wished to make more immediate and incremental changes, that is fine too. Richman asked what the consultant's approach to dealing with this issue might be. Hightshoe said that hopefully the consultant would look at what other city's do, and perhaps look at financing at the same time. The current policy is very rigid, with little flexibility. That sort of a discussion would have to be part of a process, and would not get done in one night. Hightshoe said she wants to revamp CITY STEPS quite a bit, and the current amendment is not critical to her at this time. Richman said that he strongly supports the need to deal with this issue, but also supports what Eastham said, which is that adopting the current amendment does provide very little incentive for a developer to ask for anything other than a 30-year non-amortizing loan at 0% interest. This amendment requires the Commission to take a more active role in setting financial terms. Richman said he is not sure that is a role the Commission is ready to take on at present, or if it would be better to discuss the matter fully with the consultant. Hightshoe said the Commission does get a variety of housing applications that present their financial terms to the Commission (transitional housing, down-payment assistance, low-income-tax-credits) so that will continue to be a question asked in the application process regardless of whether an amendment is adopted. Hightshoe said that economic development loans are also at issue with this amendment; payment deferrals (for small time periods) are granted without taking the matter back to HCDC or City Council. Richman said it sounds to him like the choices are to I) approve this amendment (or amend it and approve it), 2) do nothing, or 3) direct staff to have the consultant address the issue in the larger CITY STEPS revision. The general consensus was to address the issue on a more macro-level with the consultant. Richman said he had a somewhat related question for Hightshoe. He asked if there could be a policy that ifmembers of the public or agencies cannot provide the Commission with supporting documents at the time the agenda is put out then they simply will not consider it. Drum said it was important not to cut somebody out, and that there may be extenuating circumstances that reasonably prevent someone from submitting documents ahead of time; these would be things to consider before creating a written policy. Hightshoe said she would discuss the matter with the City Attorney's Office and see what if anything was already in place. Hightshoe said the applicant workshops have been and will be addressing this very issue to cut down on duplicate, incomplete, and late additions received after the deadline this year. · Discussion of a HCDC Sponsored Event Focused on Affordable Housine: Douglas said he had an idea for this and wanted to present it to the Commission. One of the Commission's roles is to educate the public about affordable housing issues as well as provide new options for affordable housing. Given the present need for more affordable housing and the economic downturn, the Commission needs to encourage more environmentally sustainable building. Douglas suggested that a few public events could help place attention on some of these needs. The original idea was for a conference on affordable housing options that are not currently being considered or utilized, such as shared equity cooperative housing for families and co-housing (groups of smaller houses that share a communal area). McMurray said she was aware of this phenomenon for retirees, but not for young families. Douglas also suggested smaller houses as an option. Other concepts are the ecological village (one exists in Fairfield) and the idea of universal design. Douglas said that at the FAIR! meeting last week the idea was HOUSING AND COMMUNITY DEVELOPMENT COMMISSION DECEMBER 18, 2008 LOBBY CONFERENCE ROOM, CITY HALL Page 7 of9 put forward to put on an affordable housing fair so that affordable housing consumers could get a better idea of what was out there. Douglas said he simply wanted to present some of these ideas and see if anyone was interested. Hightshoe said she and Steve Long had tossed around some ideas prior to the flood, one of which was a marketing campaign about who needs affordable workforce housing. Basically, Hightshoe said, it is just a campaign that reminds people that everyone needs housing. Committing HOME funds for a design sponsored by a University student for a green building, universal design, starter home, or affordable housing and then deeding it over to a non-profit for rental housing was another idea. Hightshoe noted that the Housing Trust Fund does do a Housing Summit so it would be important to do something different from what they are doing. Hightshoe said her office receives a lot of literature on building smaller houses and noted that it might be good to see what could be done to encourage private developers to build smaller houses, making them affordable without the need for subsidy. Shaw suggested determining where the gap is, so that they can target those who do not typically attend the Housing Summit. Hightshoe said that she felt the Housing Summit targeted lenders and developers. Hart noted that the Energy Expo created a venue with a wide variety of target audiences, creating room for multiple focuses. Hightshoe noted that an advertising campaign could similarly reach a wide range of people. Hightshoe said she likes the idea of a partnership with the University, but that it would require looking at the University's schedule too. Richman asked where the money would come from to co-sponsor such an event. Hightshoe said that money from the City's general fund and administrative budget would have to be used, as public service funds have not been applied for in the past. Shaw noted that the library would be a good venue if the target audience was the community, whereas if the target audience was academics, the University would want to have the event on campus somewhere. He recommended defining the purpose and the audience as the first step in determining the scale of the project. Hightshoe said the idea behind a marketing campaign was to reach an audience that had not been reached before. She said that in all honesty people who would come to an affordable housing event are going to be people who are already in favor of affordable housing and versed in the issues. Douglas stated that it had been suggested at the FAIR! meeting that a "Housing Week" could be held, with different days targeting different audiences, i.e., one targeting consumers, one targeting policy makers, etc. It was suggested to plug an event into an existing venue, such as "Homeless Week" or the annual Homebuilders Association event held in April. Richman noted that many of the ideas Douglas had put forth would be developer driven ideas, and suggested seeing if the Homebuilders would be interested in having an expert in such topics come and speak to them, thus creating some energy around some of these ideas. Crane suggested having different booths at the builders show supporting some of these concepts. It was noted that the Homebuilders Association had previously been against the concept of universal design as cost- prohibitive but now embraced it as sound policy, and that the same could happen with some of these design concepts. Hightshoe asked if the general idea was to form a subcommittee at the present meeting and bring the issue back up in a subsequent meeting in January of February. She noted that in February and March the Commission would have a lot of materials relating to allocation. Richman asked if anyone wished to volunteer for a committee to look into the issue. McMurray and Drum volunteered. Hightshoe suggested looking into partnerships in the community for transitional housing for domestic violence and other issues. HOUSING AND COMMUNITY DEVELOPMENT COMMISSION DECEMBER 18, 2008 LOBBY CONFERENCE ROOM, CITY HALL Page 8 of9 MONITORING REPORTS: · Hawkeve Area Community Action Proeram - Housine (Douelas) Douglas said he spoke with Al Axeen who said that they have 50 units for people who are moving from unstable situations to more stable situations. Douglas said that HACAP had received $80,000 from HCDC & intended to purchase another unit after the 1st of the year. All ofHACAP's clients have an income of under 30% of the median income. · Iowa City Housine Authority - Down-pavment Assistance & Tenant-Based Rent Assistance (McMurrav) No report. · Compeer Proeram - Operations (Hart) No report. · Extend the Dream Foundation - Operations (Douelas) No report. · Neiehborhood Centers of Johnson County - Facility Rehab. (Crane) No report. · Shelter House - FY04 Land Acquisition (Hart) Hightshoe said that Shelter House got their land; the state court ruled in Shelter House's favor. The project will be closed out. The neighborhood filed a new suit, this time in federal court. The City is anticipating that the lower federal court will dismiss the case, but has not heard what the Court will do. Shelter House hopes to be finished building by December 2009. . Goodwill (Shaw) The work is done, but they have not yet been billed for the retainer. ADJOURNMENT: Crane motioned to adjourn. Shaw seconded. The motion passed 7-0. HOUSING AND COMMUNITY DEVELOPMENT COMMISSION ~Y~6 ~r,~GjHOME QUESTION & ANSWER SESSION IOWA CITY ~unLl~ LlnlU~Y, M~~"ING ROOM A THURSDAY, FEBRUARY 19, 2009 TIME AGENCY NAME CONTACT I PHONE # E-MAIL PUBLIC SERVICES 6:10 pm Free Medical Clinic - Operations Sandy Pickup 337.9727 spickup3@mchsLcom 6:15 pm Compeer Program - Operations Karen Fox 337.7884 x245 kfox@meimhc.org 6:20 pm Successful Living - Operations Steve Noack 358.6800 Successfullving52246@gmail.com 6:25 pm Local Foods Connection - Operations Laura Dowd 338.2010 localfoodsconnection@yahoo.com 6:30 pm Extend the Dream Foundation - Operations Tom Walz 339.0401 thomas-walz@uiowa.edu 6:35 pm Shelter House - Operations (STAR program) Crissy Canganelli 338.5416 X1 02 crissy@shelterhouseiowa.org HOUSING 6:45 pm Shelter House - Rental Housing Crissy Canganelli 338.5416 x102 crissy@shelterhouseiowa.org 6:55 pm The Housing Fellowship - CHDO Operating Exp. Maryann Dennis 358.9212 housing@qwestoffice.net 7:05 pm The Housing Fellowship - Rental Maryann Dennis 358.9212 housing@qwestoffice.net 7:15 pm Dolphin International LLC - Homeownership Arvind Thakore 224.622.1171 arvind1 OO_us@yahoo.com 7:25 pm ICHA - TBRA Steve Rackis 887.6065 steven-rackis@iowa-city.org 7:35 pm Builders of Hope - Rental Housing Josh Weber 936.3548 Joshua@buildersofhope.us 7:45 pm Isis Investments LLC - Rental Salome Raheim 530.4375 salome-raheim@att.net 7:55 pm Anchor Hsg of Saddlebrook - Rental Housing Dan Tonnesen 815.540.4733 dtonnesen@anchor-group.org 8:05 pm Bill Wittig - Rental Housing Bill Wittig 631.6100 bill@billwittig.com BREAK PUBLIC FACILITIES 8:30 pm Shelter House - New Construction Crissy Canganelli 338.5416 x102 crissy@shelterhouseiowa.org 8:35 pm NCJC - Facility Rehabilitation Brian Loring 358.0438 brian-Ioring@ncjc.org 8:40 pm CMHC - Facility Rehabilitation Sherri Zastrow 338.7884 x219 szastrow@meimhc.org 8:45 pm First Mennonite Church - Home Ties Addition Diane Funk 335.6001 Diane-funk@uiowa.edu 8:50 pm MECCA - Facility Rehabilitation Ron Berg 351.4357 rberg@meccaia.com 8:55 pm DVIP - Facility Rehabilitation Kristie Doser 351.1042X112 kristiedvip@southslope.net 9:00 pm Arc of Southeast lowa- Facility Rehabilitation Bill Reagan 351.5017 wmreagan@iowatelecom.net 9:05 pm United Action for Youth - Facility Rehabilitation Jim Swaim 338.7518 jimswaim@unitedactionforyouth.org CITY OF IOWA CITY FY10 ALLOCATIONS TIMELINE Dates Subject to Change Dec. 4, 2008 Dee. 17, 2008 Jan. 08, 2009 Jan. 21, 2009 Feb. 19,2009 Feb. 27, 2009 Mar. 12, 2009 Mar. 26, 2009 April2, 2009 April 3, 2009 May 4, 2009 May 4, 2009 May 5, 2009 May 5, 2008 July 1, 2009 Public notice that CDBG and HOME applications are available CDBG/HOME Applicant Workshop, Emma Harvat Hall, City Hall, 10:00 AM CDBG/HOME Applicant Workshop Emma Harvat Hall, City Hall, 2:00 PM Applications due to City of Iowa City by 12 noon HCDC meeting: question/answer discussion with CDBG/HOME applicants. Iowa City Public Library, 123 S. Linn Street, Meeting Room A, 6:00 PM HCDC ranking forms due to City staff HCDC meeting: review of groupings and consensus funding scenario. Iowa City Public Library, 123 S. Linn St., Meeting Room A, 6:30 PM (CDBG/HOME applicants encouraged to attend, but not mandatory) HCDC meeting: recommendation on CDBG/HOME funding awards. Iowa City Public Library, 123 S. Linn St., Meeting Room A, 6:30 PM (CDBG/HOME Applicants encouraged to attend, but not mandatory) HCDC justifications memo due for council packet Draft FY10 Annual Action Plan done - 30-day comment period begins Expiration 30-day comment period on the FYlO Annual Action Plan If Needed - joint HCDC/City Council meeting City Council: public hearing on the FYlO Annual Action Plan City Council Meeting: resolution-approving the FYlO Annual Action Plan Start FY10 projects (If awarded funding, no expenses may be incurred prior to both July 1 AND execution of a CDBG/HOME agreement) Items in bold are the scheduled HCDC meetings. Items in italics are for those items due from HCDC members to Community Development staff. Revised 2/12/2009 ,'.\ ( EXHIBIT A COBG AND HOME PROGRAM INVESTMENT POLICIES Economic Development Economic development projects making application to the CDBG Economic Development Fund will be reviewed by the Council Economic Development Committee. The Council Economic Development Committee will make a recommendation to the City Council for each project proposed for funding. Said recommendation shall include the amount of CDBG assistance to be allocated and the terms of investment. Typically, for-profit business projects will receive low-interest loans; whereas, non-profits may be recommended for forgivable loans or grants. Decisions regarding investment terms for economic development projects will be made based on the nature of the project including I but not limited to, the risk, potential for growth, the number of and quality of jobs created for low-moderate income persons, the ability to repay a loan and the amount of other funding leveraged. Housing Rental Housing. Except as noted below, the interest rate for rental housing activities will be zero percent (0%) for non-profit owned projects and prime rate (determined at the time the CDBG\HOME agreement is executed by the City) minus two points for for-profit owned projects with an amortization period up to thirty (30) years or the period of affordability, whichever is less. Homeownership. Except as noted below, assistance to homeown.ership projects will have three repayment options as shown herein. 1. A 20-year loan that must be paid in full when the low/moderate income homeowner sells, transfers title, moves or rents the property or the 20-year term expires, whichever occurs first. No interest will accrue and no payments will be required to be made by the property owner prior to payoff. 2. The homeowner has the option to make monthly payments to the City or its designee in a form not to exceed a 30-year, zero percent (0%) amortized loan, a 30 year amortized loan must start at the time the assistance is provided. 3. If CDBG\HOME assistance is provided to a certified non-profit organization, for a Community Land Trust project, the CDBG\HOME funds will be in the form of a grant. Tenant Based Rental Assistance (TBRA). All HOME funds provided for TBRA will be in the form of a grant. Exceptions. The City may grant a different interest rate and/or a different repayment option based on the nature of the project including, but not limited to, the revenue generated, the ability to repay a loan, the type of housing provided, the beneficiaries, the amount of other funding leveraged and the location of the site. . Public Facilities The City of Iowa City, as the recipient of Community Development Block Grant (CDBG) funds, utilizes these funds for "public facilities" projects as defined in 24 CFR 570.201 (c) that are completed by the City and\or subrecipents. The following policy applies to CDBG assistance provided to non-governmental subrecipients ("governmental" includes only jurisdictions with taxing authority as provided for in Iowa Code). , . 2 Projects that receive an allocation by the City of Iowa City will receive an earned grant, as defined herein, which will be secured by a mortgage or other comparable security instrument. The compliance term of the earned grant will be determined by the formula also provided herein. At the end of the applicable compliance term the lien or other security instrument will be released by the City. If the real property is leased, the lease shall be for a period that matches or exceeds the compliance term of the earned grant. . Earned Grant: A lien against the real property being assisted, or other comparable security, which is repaid only upon transfer of title, rental of the property, or termination of services or occupancy as outlined in the applicable COBG Agreement. If the subrecipient fully satisfies the terms outlined in the applicable CDBG Agreement the mortgage against the property, or other security instrument, will be released by the City following the completion of the compliance period that begins on the date of execution of the mortgage or security instrument. . Earned Grant Formula: The total amount of CDBG assistance allocated to a subrecipient in anyone City fiscal year for a "public facility" project divided by $3,000 equals the number of CDSG compliance years for the Earned Grant. (For example:$17,000 in CDBG assistance divided by $3,000 would equal a compliance term of 5.67 years or 68 months). If the Earned Grant Formula results in a compliance term of less than one year (12 months) the minimum compliance term sha,lI be one year (12 months) and if the Earned Grant Formula results in a compliance term of more than ninety-nine (99) years the maximum compliance term shall be ninety-nine (99) years. Public Service Public Service projects as defined in 24 CFR 570.201 (e) shall receive COBG assistance in the form of a grant with a term of not less than one year. ppdcdbg/prolnveslpolicies 10/06 \ I / J 'I J -~ :\ I II " I \~~I Ie hi ~, w ~,,"" ~ ~J' ~ 1 ~ ,,~"~"~'w,,~ ~ l:T}~, h ~- "~~.~~'\?~~'<~~~'\~ ~~ l~\~~~ rC. ~ " ~~~'" ~ ," ,"II! ~ -0 ~'\:i ,~ .X .,~::,,,,,,,,, ~~ j ,,~ e ~ ~ '-J~~0~ ~ ~~1\c' [S~i >><~ ~ .~ .~ 00-..'-' ~'\ -. ... 'l'/'" ==:J ~ ,,"," ::-\:'.."-.:" 'l" ~ ~ '\ ~'\~.~l\ '\~~'\~i~ t.~ ~ '-I' ,.: iJ w l-Cri s "0 0-"-.: __ il "" S2 ~ ~ ~"''''~ '\~ ~ ~ H 11 0: ~ ~~~~~~ x ~ -- ~:I. 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"2E ~i ~g. ~Ol 1::,5; ::JII) ::J eo liLt: ....Q/ CII_ Si lfe e~ 'li1(C11 ~ I ~ j ~~3._""" ~~~;!:'"l. ~ ....., ~~ - CITY OF IOWA CITY FY10 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Builders of Hope - Affordable Rental Housing Number Page 1 Project Address 343 Scott Court, Iowa City Activity Type Housing CITY STEPS Priority High - Permanent Supportive Housing CITY STEPS Goal IV B. Affordable Housing: Production of New Units Achieved (Page 101) Beneficiaries 0-30% mfi - 100% Amount Requested $260,000 Repayment Terms 30-Year loan at 0.1% interest Period of Affordability HOME regulations require 20 years, applicant proposes 30 years. Percent of Project Unable to calculate Publicly Funded Leveraging City Funds Unable to calculate Property Taxes Yes, both the housing and commercial component will pay taxes. I ~ I f~~~1It ::-: -.'m~ ..... -- CITY OF IOWA CITY STAFF ANAL YSIS Documentation of Project Need Project Budget Discussion Project Coordination with Existing Services & other Services Available in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed CITY STEPS identifies permanent supportive housing as a high need. The proposed project would assist persons with chronic mental health disabilities find permanent housing with supportive services. The proposed facility will provide office space for a social service organization, a psychiatrist, a psychologist, a licensed social worker, a chiropractor, massage therapists, a nutritionist, a yoga instructor and will include affordable rental units for persons with chronic mental illness. The goal of the project is to provide opportunities to stabilize the mental health of the clients and to establish a foundation for living healthy. Applicant also applied for public facility funding. Based on a clarification on program eligibility by our regional HUD office, a for- profit entity is not eligible to apply for public facility funding. Based on program rules, the applicant is also not eligible for special economic development activities as construction of new housing is disallowed. HUD also advised for a new facility (new construction), 51 % of the positions in the building would have to be available or held by low-to- moderate income persons (no advanced degrees or special training required to obtain the position.) Based on the information from HUD received after the application deadline, applicant will provide a new proforma that separates the housing construction costs from the commercial costs. Staff is not able to review the proforma or budget as presented as it will need to be modified to be in compliance with CDBG/HOME regulations. Applicant works with a variety of professionals and agencies to provide supportive services for persons with chronic mental health disabilities. The director has previous experience managing and maintaining a transitional living facility. Applicant hires a private accounting firm for financial auditing and record keeping. Applicant has successfully administered HOME funding in the past. Applicant received FY08 HOME funds to acquire a single family home with 6 SRO units for permanent supportive housinQ. Staff will review the revised proforma once submitted. 2 I ~ 1 -....= -..... ~~~!:'"t. ~ __,~ -........ - CITY OF IOWA CITY FY10 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Iowa City Housing Authority - Tenant Based Rental Assistance Number Page 34 Project Address Citywide Activity Type Housing High - Small Related Renter\Large Related Renter- cost burdened> 30% with incomes at or below 30% of the median income CITY STEPS Priority Medium - Elderly Related Renter - cost burdened> 30% with incomes at or below 30% of the median income CITY STEPS Goal IV B. Affordable Housing/Rental Assistance (page 101) Achieved Beneficiaries 0-30% mfi 100% Amount Requested $180,000 Repayment Terms Grant Period of Affordability NA Percent of Project 64% Publicly Funded Leveraging City Funds $ 0.57 in other funds for each local HOME dollar requested Property Taxes Indirectly, private owners/landlords providing rental units pay property taxes. I ~ J -....= -...... t~~~'"'- ~ "'_I~ -....... ~ CITY OF IOWA CITY STAFF ANAL YSIS Documentation of Project Need Project Budget Discussion Project Coordination with Existing Services & other Services Available in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed CITY STEPS recognizes that rental assistance is the most often cited and important need identified by low-income persons due to the high market rents in Iowa City. As of 1/20/09, the ICHA reports 820 families on the Housing Choice Voucher (HCV) waiting list. Of which, 25 are elderly families, 172 are families with disabilities and 566 are families with children. The ICHA, in partnership with the Housing Trust Fund of Johnson County, is operating a TBRA program with State HOME Funds. The grant has a September 2010 deadline. The funds will allow them to transition families from the state program to the Housing Choice Voucher program without a break in assistance. The proposed project will assist 37 frail elderly and/or chronically mentally ill households with direct housing assistance paid to landlords on behalf of eligible participants. Any remaining funds not needed to support these households will be available to assist low income households with children under 18 (18 households per year over a 2-year period) In the proposed project, participants pay no more than 30% of their adjusted gross income towards rent. The average HCV voucher per unit cost is $399/month per household. In applicant's budget, the FY09 HOME allocation of $60,000 was included. These funds and beneficiary information will be reported in the FY09 Annual Action Plan and subsequent year end reports. To not duplicate beneficiary data, the $60,000 was removed. The $180,000 (FY10 request) will assist 18 families over a two year period. Families participating in the proposed project will remain on the HCV and Public Housing waiting lists. When they reach the top of either list, the ICHA will process their applications and transition the families into the HCV or Public Housing program. The ICHA received and successfully administered $159,564 in FY06 TBRA funds. ICHA received $200,000 in TBRA funds in FY07 and that project is currently active with $29,322 remaining. In FY09 applicant received $60,000. Applicant has not utilized these funds yet. ICHA also maintains public housing units and administers the Housing Choice Voucher Program. 1. HOME rules allow the applicant to use TBRA outside of Iowa City. Applicant plans to utilize the vouchers in Johnson County. How many Iowa City households will be served? 2. The State HOME funds expire in FY11 - September 2010. Will the funds not be utilized until FY11, starting July 1, 2010? 2 I ~ ! -....= -II' ~~iil!='t ~ ....-.~ ....,~ - CITY OF IOWA CITY FY10 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Isis Investments, LLC - Affordable Rental Housing Number Page 45 Project Address No sites selected at this time (Iowa City) Activity Type Housing CITY STEPS Priority High -large related - (0-30% of MI) CITY STEPS Goal IV B. Affordable Housing: Acquisition of Existing Units Achieved (Page 102) Beneficiaries 0-30% mfi - 60% 31-50% mfi - 40% Amount Requested $250,000 $242,000 30-year loan with 0% interest, 15-year deferment; $7,500 Repayment Terms grant Period of Affordabi/ity HOME regulations require 15 years Percent of Project 35% Publicly Funded Leveraging City Funds $1.85 in other funds for each HOME dollar requested Property Taxes Yes. The applicant estimates annual tax payments of $10,568. I ~ I ~~=_..... :f~~e~ ~""I!IIr'"""-!-' ~.......... CITY OF IOWA CITY Documentation of Project Need Project Budget Discussion Project Coordination with Existing Services & other Services Available in the Community STAFF ANAL YSIS The applicant proposes to acquire and rehabilitate five (4 - three bedroom and 1 - four bedroom) homes to rent to low income households. Households will be allowed to spread their security deposit and utility deposits over several months to provide greater access to affordable units. Applicant references several studies documenting the need for additional affordable housing units in Iowa City. The project addresses Iowa City's current and projected demand for affordable housing for low-income households, removes the barriers for security and utility deposits and supports families in developing skills to manage and maintain a single family home. It is the goal of CITY STEPS to acquire and rehabilitate 20 affordable rental units annually. Creating affordable housing from existing stock is cost-effective. Applicant will offer the opportunity for the household to purchase the home after being a tenant for at least 12 months. Applicant requests funds for the downpayment of five single family homes. Applicant will secure private mortgages for approx. 65% of the acquisition price. The proposed budget shows an average cost of $142,350 per unit. Donated labor at a value of $1,250 will assist proposed tenants participate in the housing search and other pre- home purchase activities. Proforma Concerns; Staff analysis looked at Years 3-20 where full rent and expenses are included. Staff calculated debt service for first mortgage at $37,680 (based on average cost of 142,350 minus a 35% downpayment). This would result in a 1.15 debt coverage ratio for Year 3, slightly higher for subsequent years until Year 16 when the second mortgage commences. The proforma did not budget for reserves. Staff recommends that reserves be funded for long-term viability. Applicant estimated only $4,000 in rehabilitation costs per home. The figure may be low depending on what the home needs and if lead stabilization/clearance testing is required. Staff recommends the financial terms as proposed. The applicant will work with the Iowa City Housing Authority to assist tenants with asset-building and homeownership. Qualified families will be identified prior to purchasing a home and will be encouraged to participate in all stages of the acquisition process as each tenant will have the opportunity to purchase the home if interested. 2 Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed Applicant received FY09 CDBG funds to acquire and rehabilitate two properties for affordable rental housing. Applicant completed the project by the end of August 2008. The Managing Member has extensive administrative and financial management experience. Applicant owns and manages seven local properties and hires a social worker to serve as property manager. The property manager also works with tenant families to assist with gaining skills to maintain their homes. 1) Staff encourages applicant to budget for reserves for the assisted units. HCDC may request a revised budget that includes reserves. 2) If a tenant purchases the home within 15 years, a resale agreement approved by the City's Community Development Dept. must be signed by the proposed buyer. 3 I ~ I ~~=_..... ~I~~j!:'"t. ~"'!!Ir_.!..' ~......... CITY OF IOWA CITY FY10 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Shelter House - Affordable Rental Housing Number Page 59 Project Address No site selected at this time (Iowa City) Activity Type Housing CITY STEPS Priority High - Permanent Supportive Housing CITY STEPS Goal Priority Homeless Needs: Permanent Housing Achieved (Page 99) Beneficiaries 0-30% mfi - 100% Amount Requested $200,000 Repayment Terms Forgivable Loan Period of Affordabi/ity HOME regulations require 20 years Percent of Project 59% Publicly Funded Leveraging City Funds $1.45 in other funds for each HOME dollar requested Property Taxes Tax-Exempt I ~ 1 ~~5._IIt... !~~~~ :::: ..-'~ ..... ......... CITY OF IOWA CITY STAFF ANAL YSIS Documentation of Project Need Project Budget Discussion ProjectCoordinauon with Existing Services & other Services Available in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed CITY STEPS identifies permanent supportive housing as a high need. The proposed project would assist chronically homeless individuals with a disabling mental illness with permanent housing. The applicant proposes to build a single family home with six bedrooms to provide a communal living environment with continued supportive services based on prior successful models. Research shows that many clients fail in permanent housing placements due to not only inadequate income but social isolation and lack of adequate support. The proposed home will be LEED certified and have the outward appearance of an ordinary single family, ranch home. No site has been secured, but applicant states the site will be located in an area encouraged by City Council. 59% of the project is publicly funded. The square foot cost of construction is estimated at over $175/SF. The cost is $490,115 for the single family home; the per unit (by bedroom) would be $81,686. Applicant states oversight and management will be provided by a .25FTE Shelter House position. What is the source for these funds? Proforma Concerns: The debt coverage ratio is 1.19 to 1.53 over the 20 years. Applicant requests a forgivable loan. Repayment of a portion of the loan may be feasible. Staff also recommends reviewing project costs. The applicant has a history of working with several area partners including Goodwill, Community Mental Health Center, the Consultation of Religious Communities, ICHA, Dept. of Veteran Affairs and several others. Shelter House successfully administers federal and state funds. Applicant has received funds for various public facility and public service projects. 1) Shelter House is also applying for funds to construct a new homeless shelter for up to 70 persons. Does applicant have the capacity to successfully support and manage both projects simultaneously? Does applicant have prior experience in rental housing? 2) Project costs appear to be high. Can applicant reduce costs to make the project more feasible? 3) Applicant states tenants will be charged with rent and operating expenses. Please define what operating expenses. 4) Please discuss question above under project budget. 2 I ~ 1 ;:;.:=_It.., !:~r,;e'"t. :::""!IIr"".'-' ..... ........... CITY OF IOWA CITY FY10 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Dolphin Lake Point Enclave - Affordable Homeownership Number Page 73 Project Address 2401 Highway 6, Iowa City Activity Type Housing Low - Owner-occupied housing for small and large families (31-80% CITY STEPS Priority MFI) CITY STEPS Goal IV.B. Affordable Housing - Acquisition of Existing Units Achieved Assistance to Homebuyers to Purchase Existing Housing Page 102 0-30% mfi 0% 31-50% mfi 16% Beneficiaries 51-60% mfi 16% 61-80% mfi 68% Over 80% mfi 0% Amount Requested $558,000 Repayment Terms Years 1-5 recapture 100%; Years 6-10 20% forgiven each year Period of Affordabi/ity 10 years Percent of Project 14% Publicly Funded Leveraging City Funds $ 5.96 in other funds for each local HOME dollar requested Property Taxes The homeowners will pay property taxes. I ~ I .::;~5._It... !~w!=~ ~ -.., ............ CITY OF IOWA CITY STAFF ANAL YSIS Documentation of Project Need Project Budget Discussion Project Coordination with Existing Services & other Services Available in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Homeownership is a strategy to help low-moderate income households gain self-sufficiency, stabilize families & neighborhoods and to build wealth. CITY STEPS encourages the use of down payment assistance for the purchase of existing housing units as a way to provide affordable housing to low-moderate income households. This project proposes to rehabilitate the interior and exterior of Lake Point Enclave (formerly known as Lakeside Apartments) and to create homeownership opportunities through downpayment assistance to households with incomes 31 - 80% (majority between 61 - 80%) of the median income. The application states that the proposed mortgage payment will be close or lower than current rents which are below HUD FMR figures. The recently completed Affordable Housing Market Analysis encourages redevelopment of residential areas close to employment centers and public transportation. This project is near shopping, public transportation and employment. Up to 64 households will be assisted with up to $10,000 (depending on the unit and required downpayment amount by the lender) in downpayment assistance. The homebuyer will work with a private lender for financing. The applicant will be working with volunteer educators, lenders and realtors to provide homebuyer education at an estimated value of $107,008. Staff removed the volunteer labor cost from the budget, thus lowering the cost per unit to $60,731. Please confirm. The applicant is proposing to partner with local organizations to provide homebuyer education and will require that homebuyers pre- qualify and register for the classes. The principals of the project have experience with distressed properties and the architect and consultant have worked with HOME funds to redevelop property. Applicant was allocated $60,000 in HOME Funds in FY09. Applicant anticipates spending all the FY09 allocation by June 2009. 2 1) Please confirm that applicant is applying for the same financial terms as the approved FY09 project (10-year period of affordability, Years 1-5 100% repaid, Years 6-1020% forgiven annually. ) Summary of Items to be Addressed 2) Please explain the proposed homebuyer education classes. Are the classes offered through a partnership with the Iowa City Housing Authority and the Iowa City Area Association of Realtors? 3) What is the anticipated sales price for 1 and 2 bedroom units? 4) Rehabilitation may be subject to federal labor provisions (Davis Bacon "prevailing" wages) for the proposed work depending on award amount and number of units assisted. 3 I ~ 1 .::;.~=_..... ~~~!='"'- :::~".,' ......,............ - CITY OF IOWA CITY FY10 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page The Housing Fellowship, CHDO Operating Expenses Number Page 86 Project Address 322 E. 2nd. Street, Iowa City Activity Type Housing CITY STEPS Priority High - Other public services CITY STEPS Goal Anti-poverty plan and strategies - housing support Achieved services/facilitate increased capacity of area housing providers (page 127) Beneficiaries Agency wide. Owns and manages 117 affordable rental units. Amount Requested $50,000 (Due to HOME requirements, allocation can't exceed 5% of HOME allocation or $30,687) Repayment Terms Grant Period of Affordability NA Percent of Project 8% of the calendar year administrative expense budget. Publicly Funded Leveraging City Funds $10.46 in other funds for each HOME dollar requested Property Taxes Tax Exempt I ~ I .=:~=_...... !~~!='"!. ~ _..~ .............. - CITY OF IOWA CITY STAFF ANAL YSIS Documentation of Project Need Project Budget Discussion ProjectCoordina60n with Existing Services & other Services Available in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed The Housing Fellowship (THF) has been in operation since 1990. THF now owns and manages 117 affordable rental units occupied by low-income households, developed and sold 17 owner-occupied homes into a land trust to ensure permanent affordability and administers a revolving loan fund for low-income renters to pay for security deposits. The financial management responsibilities have grown extensively. THF manages four separate limited partnerships. THF currently has six full time employees. THF has experienced cash flow problems over the last few years. THF expects decreased revenue in 2009 as utility allowances have increased and it is anticipated that rental inspection/permit fees will increase while the allowable HOME rent will not cover the increased costs. The CHDO funds requested will help THF achieve financial stability, provide adequate replacemenVrepair reserves and prevent further sales of THF rental units. The 2007 Affordable Housing Market Analysis encourages the City to increase the capacity of non-profit housing providers that develop affordable housing. The project is an operational grant allowed under the HOME program. The HOME program caps CHDO operating expense to 5% of the HOME allocation or $30,687. Funds allocated for CHDO operating expenses are not an eligible cost for CHDO set-aside funds. This project can also be funded partially through CDBG funds as a public service project; however any CDBG funding provided would be subject to the CDBG cap on public services. The applicant has a long history of working with a variety of agencies, organizations and private businesses to ensure the success of each project and of the families living in each home. Applicant has successfully managed hundreds of thousands of dollars of CDBG and HOME funded projects. THF has experience and a successful track record with the acquisition, construction and management of affordable housing. THF qualifies as a Community Housing Development Organization (CHDO). Applicant received CHDO operating funds in FY08 & 09. 1. THF received CHDO operating funds in FY08 & 09. How will THF increase their financial stability in subsequent years? 2 I ~ j =:.:'5._"~ ~t~~~~ :::~"_,' ............I.L.. - CITY OF IOWA CITY FY10 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page The Housing Fellowship, Affordable Rental Housing Number Page 97 Project Address No sites selected at this time (Iowa City). Activity Type Housing CITY STEPS Priority High - Small related - cost burdened >30% (0-30% of MI) High - Small related - cost burdened >50% (31-50% of MI) CITY STEPS Goal IV B. Affordable Housing: Production of New Rental Units Achieved (Page 101) Beneficiaries 31-50% mfi - 15% 51-60% mfi - 85% (75% of THF tenants have incomes between 0-30%) Amount Requested $400,000 Repayment Terms 20-Year balloon payment at 0% interest Period of Affordabi/ity HOME regulations require 20 years, applicant proposes 30 years Percent of Project 91 % (City considers L1HTC as public funds, the State of Iowa Publicly Funded considers them private funds) Leveraging City Funds $10.67 in other funds for each (City) HOME dollar requested Property Taxes Paid according to Iowa law for L1HTC projects. The applicant estimates tax payments of $19,500 per year. I ~ I .;;~=_..... !'~~!:'"!. ::: ...., .................. CITY OF IOWA CITY STAFF ANAL YSIS Documentation of Project Need Project Budget Discussion Project Coordination with Existing Services & other Services Available in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed The application references various studies, including the Mullin & Lonergan Iowa City Metro Area Affordable Housing Market Analysis and CITY STEPS. Both of these documents demonstrate the community need for affordable rental housing. Based on the Market Analysis there is currently approximately 1,368 cost-burdened family renter households in Iowa City. Rents will be set at a level affordable for 3 person households with incomes at 40% MFI and 4-5 person households at 50% MFI. It is the goal of CITY STEPS to construct 20 new affordable rental units annually. This project proposes to purchase 20 sites to construct 20 (10 - 2 bedroom, 10 - 3 bedroom) homes scattered throughout Iowa City as part of a Low Income Housing Tax Credit (L1HTC) project. The State of Iowa has additional tax credits to allocate in 2009 due to increased funding from disaster assistance programs. 91 % of the total project budget is made up of public funds if tax credits are considered public. The proposed budget shows an average $233,685 cost per unit. Debt coverage ratio is 1.39-1.06 through years 1-20. The Housing Fellowship will receive a developer fee of $513,135 for the $4,667,035 project (11 % of the project cost). This is standard under both the tax credit program and allowable under the HOME program. Non-profits are encouraged to allow for the fee in order to pay for the extra time and effort involved with the development of affordable housing through the complicated tax credit process. The second page of the proforma is not complete as is does not include tax, L1HTC, depreciation, and reserve calculations to accurately compute the return on investment. THF plans to purchase the properties at the end of Year 20. Staff recommends the financial terms as proposed. The applicant has a long history of working with a variety of agencies, organizations and private businesses to ensure the success of each project and of the families living in each home. The THF has applied and received L1HTC for rental housing projects (preservation and affordable rental) and is involved in the management of four separate limited partnerships. Applicant has successfully managed hundreds of thousands of dollars of CDBG and HOME funded projects. THF has experience and a successful track record with the acquisition, construction and management of affordable housing. THF qualifies as a Community Housing Development Organization (CHDO). Applicant received CDBG/HOME funds for housing in FY05, 06 (2 projects-rental housing project cancelled), 08 & 09. 1. Estimated lot cost is $30,000 per lot. Will the applicant be able to find lots (single or multi-family) at this price scattered throughout Iowa City? 2. Applicant received FY08 & FY09 HOME funds to construct 22 rental housing units. Applicant has three more years to construct units with the FY08 funds and an additional four years to construct the remaining units with FY09 funds. Will applicant have the capacity to construct an additional 20 units within five years? 3. Any consideration given to scattering units throughout the metro area instead of just in Iowa City? I 2 I ~ ! ;::::.50.......... ;t~~~'"!. ~~...I' .........-AL. - CITY OF IOWA CITY FY10 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Anchor Housing of Saddlebrook, Affordable Rental Housing Number Page 111 Project Address Saddlebrook Meadows - Part I, Iowa City Activity Type Housing CITY STEPS Priority High - Large related - cost burdened >30% (0-30% of MI) High - Large related - cost burdened >50% (31-50% of MI) CITY STEPS Goal IV B. Affordable Housing: Production of New Rental Units Achieved (Page 101) Beneficiaries 51-60% mfi - 100% Amount Requested $250,000 Repayment Terms 30-Year loan at 1% interest Period of Affordability HOME regulations require 20 years, applicant proposes 20 years. Percent of Project Unable to calculate. Publicly Funded Leveraging City Funds Unable to calculate. Property Taxes Paid according to Iowa law for L1HTC projects. The applicant estimates tax payments of $60,000 per year. I ~ I .;:::~=._,,~ f~w!:'"t. :::~"_I' ....-..&.L. - CITY OF IOWA CITY STAFF ANAL YSIS Documentation of Project Need Project Budget Discussion Project Coordination with Existing Services & other Services Available in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed The application references various studies, including the Mullin & Lonergan Iowa City Metro Area Affordable Housing Market Analysis and CITY STEPS. Both of these documents demonstrate the community need for affordable rental housing. Based on the Market Analysis there is projected to be an unmet need of 3,690 affordable rental units by 2012. It is the goal of CITY STEPS to construct 20 new affordable rental units annually. This project proposes to purchase a 50 unit parcel from the Saddlebrook subdivision (SE Iowa City) and construct 50 (3 bedroom) single family and townhouse/duplex homes as part of a Low Income Housing Tax Credit (L1HTC) project. The State of Iowa has additional tax credits to allocate in 2009 due to increased funding from disaster assistance programs. The project will mainly serve larger households at or below 60% of area median income. Applicant did not answer Question 10a and b (source or use of funds), however the applicant did submit a separate development budget. 79% of the total project budget is public funds if tax credits are considered public. The proposed budget shows an average $228,195 cost per unit. In the applicant's proforma, there was no debt service provided to calculate the debt coverage ratio. The proforma and many questions on the application are incomplete. Staff is unable to recommend financial terms. The applicant will receive a developer fee of $1 ,433,250 for the $11,409,755 project (13% of the project cost). The fee is allowed under the L1HTC program. No information provided. Applicant has experience with various state and federal funding programs in Illinois and Oklahoma that produced 370 units using primarily tax credits. 1. The application and financial information is not complete. Developer stated they learned of the Iowa City deadline and had very little time to compile the necessary application materials before the applications were due. 2. Applicant proposes to place 50 HOME assisted units in an area not encouraged by the City Council for affordable rental housing. Is applicant willing to purchase other sites within the City for a scattered site development? 3. Applicant anticipates project completion by October 2010. Does applicant have the capacity to build 50 homes in that timeframe? 2 I ~ I ~:.'5._..... ~~I~e'"!. :::~"'_,' ................. - CITY OF IOWA CITY FY10 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page William Wittig, Affordable Rental Housing Number Page 127 Project Address 1131 3rd Ave., Iowa City Activity Type Housing CITY STEPS Priority High - Small related - cost burdened >30% (0-30% of MI) High - Permanent Housing CITY STEPS Goal IV B. Affordable Housing: Rehabilitation of Old Units (Rental Units) Achieved (Page 101) Beneficiaries 0-30% mfi - 100% Amount Requested $66,400 Repayment Terms 20-Year loan at 0% interest Period of Affordability HOME regulations require 5 years Percent of Project 100% Publicly Funded Leveraging City Funds $0.00 in other funds for each HOME dollar requested Property Taxes Yes. The applicant estimates annual tax payments of $7,552. I! I --= -... :!t~ifi!:1lt ~ ...., .......~ CITY OF IOWA CITY STAFF ANAL YSIS Documentation of Project Need Project Budget Discussion ProjectCoordinauon with Existing Services & other Services A vai/able in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed CITY STEPS supports the rehabilitation and maintenance of the City's housing stock (owner and rental). Rehabilitation and maintenance is one of the most cost-effective and efficient means of insuring safe, decent, affordable homes. Applicant proposes to rehabilitate their 16 single room occupancy property in order to maintain it as transient housing and ensure code compliance for voucher holders. All tenants are between 0-30% MFI. Applicant states affordable financing to complete repairs will ensure rent at affordable levels in the future. 100% of the project is publicly funded. Applicant recently installed a new roof, furnace, air conditioner and water heater. The proposed budget shows an average $4,150 cost per unit. Rent is $263/mo based on the annual property operating data. HOME allows up to $353/mo if all utilities are paid by the owner. Applicant requests no other funds besides rehabilitation expenses. Based on the submitted financials, net operating income does not exceed debt service. Applicant uses a 15% vacancy rate. The City usually anticipates a 5% vacancy rate. The project does not appear viable, especially with the addition of more debt. Applicant must submit the City provided proforma. Staff is not able to recommend financial terms until further review. Applicant has worked with the STAR program and Shelter House to assist persons with permanent housing. Applicant has owned the property since 1997 and has been in the general contracting field for 23 years. Applicant is a licensed Realtor with expertise in financial analysis of investment properties. Project's on site manager was recommended by Shelter House. He lives on site and receives room rent and salary for maintenance and additional funds for specific requests. 1. Applicant must submit a proforma based on the City format. 2. Does the owner or tenant pay for utilities? 2 I ~ j -~=-..... :!:~~~'"!. ::: "'!!L' ............... CITY OF IOWA CITY FY10 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Arc of Southeast Iowa - Facility Rehabilitation Number Page 141 Project Address 2620 Muscatine Avenue, Iowa City Activity Type Public Facility CITY STEPS Priority High - Youth Centers Medium - Services for Persons with Disabilities CITY STEPS Goal Provision of dependent care facilities: Support development of Achieved respite care, childcare and family resource centers. (Page 112) 0-30% mfi - 44% Beneficiaries 31-50% mfi - 13% 51-80% mfi - 21% Over 80% mfi - 22% Amount Requested $4,500 Repayment Terms Earned Grant. Compliance period of 1.5 years. Period of Affordability NA Percent of Project 100% Publicly Funded Leveraging City Funds $0 in other funds for each CDSG dollar requested Property Taxes Applicant is responsible for taxes until March 2009 $30,724 per year I ~ j -~=-.... !--~;!:~ ~ ~..~ ................... - CITY OF IOWA CITY STAFF ANAL YSIS Documentation of Project Need Project Budget Discussion ProjectCoordinauon with Existing Services & other Services Available in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed Applicant provides approximately 361 children, adults and their families with developmental disabilities with advocacy, respite, supported community living, attendant care, intermittent medical monitoring treatment, supported employment, support group, education, day camps and other related services. Applicant requests funds to replace carpeting on the upper level of the Arc building. This is a high traffic area used by children and adults with disabilities on a daily basis. Applicant requests 100% in CDSG funds. No applicant match is noted. Applicant partners with the City of Iowa City Parks and Recreation to provide facilities in conjunction with their summer day camps. Applicant has a history of working with Johnson County Mental Health/Development Disabilities. The focus of the agency is to provide services and advocacy to children with disabilities and their families. Goodwill provides employment training to adults with disabilities. Applicant has served the disabled community for 52 years and has over 200 employees. Arc has received federal, state and local funds to administer programs. Applicant employs a professional administrative staff. Applicant received CDSG public facility funds in FY09. Applicant allocated funds in FY07, but project cancelled as office moved to present location. 1. Applicant does not provide any matching funds. If partial funds are awarded, will the project proceed? 2. Federal labor provisions will apply to this project (Davis Sacon - prevailing wages) 2 ,~ j ~~~~'t ~~"_I' ..,............. - CITY OF IOWA CITY STAFF REPORT FY10 CDBG/HOME APPLICANT REVIEW Project Name & Page Community Mental Health Center for Mid-Eastern Iowa _ Number Facility Rehabilitation Page 158 Project Address 505 & 507 E. College Street Activity Type Public Facility CITY STEPS Priority Low - Health Facilities High - Health Services CITY STEPS Goal Strategy: Provision for Health Services (p-113) Achieved 0-30% mfi - 76% Beneficiaries 31-50% mfi - 15% 51-80% mfi - 5% Over 80% mfi - 4% Amount Requested $33,376 Repayment Terms Earned Grant. Compliance period of 11 years. Period of Affordability NA Percent of Project 87% Publicly Funded Leveraging City Funds $0.15 in other funds for each CDBG dollar requested Property Taxes Tax Exempt I ~ I ,;:;-=-......~ :!'~""i!:'"!. :::: .--., .................. - CITY OF IOWA CITY Documentation of Project Need Project Budget Discussion ProjectCoordinauon with Existing Services & other Services Available in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed STAFF ANAL YSIS The Community Mental Health Center for Mid-Eastern Iowa (CMHC) serves over 2,000 individuals with mental illness each year. The CMHC is housed in a complex of four buildings just east of downtown. Two of the buildings are over 120 years old. The proposed project is to provide maintenance and improvements to the properties for the safety of clients, staff and the general public and to increase the energy efficiency at their oldest building (125 years old). The improvements include asphalt on the alley between the Clubhouse and the 507 E. College building, repair/replace the parking lot behind 507 E. College and to replace windows at the 505 E. College building. CDBG funds make up approximately 87% of the project's budget. Applicant secured bids for the expenses stated in the budget breakdown, so the costs appear to be valid. Applicant will need to secure at least two bids if CDBG funds are awarded. CMHC collaborates with a wide range of community groups working on issues related to persons with mental illness. CMHC works with a variety of community partners to assist persons who are homeless and are experiencing mental illness. They also assist local law enforcement agencies when they encounter a person with a mental illness. CMHC also works with three local elementary schools to provide outreach and consultation services. CMHC has received a number of CDBG funding awards, including funds to acquire some of the current buildings and also funds to rehabilitate the buildings. CMHC has capacity to complete the project. Applicant received CDBG (public facility) funding in FY07. 1. 40% of the clients served by applicant live outside of Iowa City. Are there other funding sources available? 2. Changes to the building's exterior (windows) must be reviewed and approved by the Iowa State Historic Preservation Office. 3. Federal labor provisions will apply to this project (Davis Bacon - prevailing wages). 2 I ~ ! ,:::;~=_..... f~~~'"t. :::~"_,~ ..............Ir.L. - CITY OF IOWA CITY STAFF REPORT FY10 CDBG/HOME APPLICANT REVIEW Project Name & Page Domestic Violence Intervention Program (DVIP)- Number Facility Rehabilitation Page 167 Project Address Confidential Activity Type Public Facility CITY STEPS Priority High - Emergency Shelter CITY STEPS Goal Strategy: Improve and maintain existing shelter facilities. (Page 108) Achieved Beneficiaries Presumed benefit (Nature of Activity) Amount Requested $12,256 Repayment Terms Earned Grant. Compliance period of 4.1 years Period of Affordability NA Percent of Project 93% Publicly Funded Leveraging City Funds $ 0.07 in other funds for each COBG dollar requested Property Taxes Tax exempt I ~ j .:::;~=_..... !~~!=~ :::~".,~ ......,........... - CITY OF IOWA CITY STAFF ANAL YS/S Documentation of Project Need Project Budget Discussion ProjectCoordinaffon with Existing Services & other Services Available in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed DVIP provides shelter, crisis intervention and support services to victims of domestic violence and their children. A critical aspect of the program is to provide a safe environment while the client moves beyond the initial stages of crisis. The shelter has housed more than 4,900 women and children since the facility was constructed in 1993. Applicant requests funds to place replace four air conditioning units. CDBG funds make up approximately 93% of the project's budget. Applicant secured bids for the expenses stated in the budget breakdown, so the costs appear to be valid. DVIP collaborates with a wide range of community groups working on housing issues and support services, such as Shelter House, Iowa City Housing Authority, STAR, The Housing Fellowship, Home Ties, DHS, Iowa Workforce Development, Johnson County Coalition Against Domestic Violence and the Local Homeless Coordinating Board. DVIP has received a number of CDBG funding awards, including funds to construct and subsequently rehab the current facility. In the past, DVIP has shown sufficient capacity to complete the projects. However, there is a concern about staff capacity to adequately administer a federally funded construction project. Specifically, regulations regarding Davis-Bacon labor provisions. Applicant received CDBG (public facility) funding in FY05, 06, 07, 08 & 09. 1. 42% of the clients served by applicant live outside of Iowa City. Are there other funding sources available? 2. Does applicant have a capital reserve budget? Applicant has requested funds over the last several years for small repair/maintenance items that could possibly be funded through reserves. 3. All work will be subject to federal labor provisions (Davis Bacon "prevailing" wages) and must comply with federal procurement standards (competitive bids) for the proposed work. 2 I ~ j ~=.'5._.-... :f~"!:'"t. ~ ...., .............. - CITY OF IOWA CITY FY10 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page First Mennonite Church - Home Ties Addition Number Page 175 Project Address 405 Myrtle Avenue, Iowa City Activity Type Public Facility CITY STEPS Priority High - Child Care Centers CITY STEPS Goal Support development of childcare facilities (Page 112) Achieved Beneficiaries 0-30% mfi 100% Amount Requested $60,000 Repayment Terms Earned Grant. Compliance period of 20 years. Period of Affordability NA Percent of Project 25% Publicly Funded Leveraging City Funds $ 3.06 in other funds for each CDBG dollar requested. Property Taxes Tax exempt I ~ ! ~:.5._IIt... !~~!:~ ~~"'_I~ ..... --- CITY OF IOWA CITY STAFF ANAL YSIS Documentation of Project Need Project Budget Discussion ProjectCoordina60n with Existing Services & other Services Available in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed CITY STEPS, the Local Homeless Coordinating Board and local human service organizations recognize the need for affordable dependent care. Home Ties Child Care Center, a program of Community Coordinated Child Care (4C's), provides temporary, free child care for families struggling to find housing, employment and treatment. The families served by Home Ties are dealing with homelessness, domestic violence, substance abuse, foster care placement and poverty. The First Mennonite Church has housed this program since 1995 at no cost to Home Ties for an annual in-kind contribution valued at over $56,000. Due to growth in the program, the church is experiencing a space shortage. Home Ties now serves 90 children annually (90% of the children are Iowa City residents). Home Ties staff spends considerable time tearing down and resetting rooms each Monday and Friday for the occupied rooms to accommodate functions for the church and other groups. First Mennonite requests funds to construct a 1,640 SF addition thc;3t would be dedicated to the daycare and not used by other groups. Home Ties is housed at First Mennonite, but the church is not involved in the programming or policies of the day care. CDBG funds make up 25% of the total project budget. Members of the congregation have donated or pledged $161,000 toward the completion of this facility. Funding for Home Ties comes from several sources including Johnson County Social Services, Empowerment, State funds from childcare assistance, subsidies from the food program, and subsidized slots funded by the University of Iowa. The cost of construction is $132/SF. Home Ties works with several agencies to coordinate services for families and children. Some of their partners include Johnson County Health Department, Promise Jobs, Crisis Center, Grant Wood AEA, Shelter House, DVIP, MECCA, ICCSD, Head Start, UI Family Services and many others. Home Ties (operated by 4C's) has worked with various state and local funding sources. The proposed construction will be managed by an oversight committee of First Mennonite members with experience in construction, reporting and grant administration. 4C's will provide programmatic oversight to the project. 4C's has been in operation in Iowa City since 1972 and has participated in developing new programs and projects. 1. Will the project continue if partially funded? If the project size is reduced, how does that affect Home Ties? 2. Will the applicant accept a lien on the property during the compliance period? 3. All work will be subject to federal labor provisions (Davis Bacon - prevailing wages). 2 I ~ 1 ~.5._....... ~l~~i!:'"!. ~-~, .........&a.- CITY OF IOWA CITY FY10 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page MECCA - Facility Rehabilitation Number Page 185 Project Address 430 & 436/8 Southgate Avenue, Iowa City Activity Type Public Facility CITY STEPS Priority Low - Health Facilities, Transitional Housing - High High - Health Services CITY STEPS Goal Provision for Health Facilities; support expansion needs of Achieved existing medical facilities (p-113) 0-30% mfi - 64% Beneficiaries 31-50% mfi - 10% 51-80% mfi - 4% Over 80% mfi - 22% (includes 682 clients that did not disclose income) Amount Requested $43,639 Repayment Terms Earned Grant. Compliance period of 14.6 years. Period of Affordability NA Percent of Project 80% Publicly Funded Leveraging City Funds $0.26 in other funds for each CDBG dollar requested Property Taxes Reduced rate paid for 12 housing units: $25,OOO/year I ~ j .=:~=_...... :r~~~'"1. ::::~...-., .............I.L. CITY OF IOWA CITY STAFF ANAL YSIS Documentation of Project Need Project Budget Discussion ProjectCoordina60n with Existing Services & other Services Available in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed Applicant provides substance abuse counseling and treatment along with HIV/AIDS services to approximately 3,200 people a year. MECCA offers 12 transitional housing units and houses a 32 bed inpatient residential facility with 2 detox rooms for those receiving substance use treatment. Applicant requests funding to replace the punch pad entrance to a card access and door intercom system for their transitional housing units as the current system does not work properly and they are unable to monitor the interior hallways and entrances. Adequate security provides an environment that is more safe and better for treatment for both clients and counselors. Applicants also request funds for a closed circuit TV (central monitoring) and security system for the windows of the residential treatment program. CDBG funds make up approximately 80% of the project's budget. No estimate was provided to verify project's costs. MECCA collaborates with a wide range of community organizations such as the Johnson County Empowerment Board, Juvenile Crime Board, Iowa City Schools, Alcohol Awareness Work Group and receives referrals from the US Probation Office, Iowa Dept. of Corrections, Bureau of Prisons and DHS. MECCA has received a number of CDBG and HOME funding awards, including funds to construct the current facility in 1985 and the transitional housing facility in 2001. Applicant has received federal, state and local funds to administer programs. Applicant employs a professional administrative staff. Applicant received CDBG (public facility) funding in FY07 & 09. 1. 72% of the clients served by applicant live outside of Iowa City. Are there other funding sources available? 2. How were project costs determined? 3. Federal labor provisions will apply to this project (Davis Bacon - prevailing wages) 2 I! j ~='::._"'''' !~~!:'"!. ::::~"_I' ................... CITY OF IOWA CITY FY10 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Neighborhood Centers of Johnson County - Number Facility Rehabilitation Page 194 Project Address 2105 Broadway Street, 2651 Roberts Rd., Iowa City Activity Type Public Facility High - Neighborhood Facilities CITY STEPS Priority High - Child Care Centers CITY STEPS Goal Support development of childcare facilities (Page 112) Achieved Provision of Neighborhood Facilities (Page 113) Beneficiaries 0-30% mfi 99% 31-50% mfi 1% Amount Requested $26,615 - Need to confirm Repayment Terms Earned Grant. Compliance period of 8.9 years (Need to confirm). Period of Affordabi/ity NA Percent of Project Unable to calculate Publicly Funded Leveraging City Funds Unable to calculate Property Taxes Tax exempt I ~ I -~5.-..... ~~~!="l. ~~_.I' .............a.L. ~ CITY OF IOWA CITY STAFF ANAL YSIS Documentation of Project Need Project Budget Discussion ProjectCoordinauon with Existing Services & other Services Available in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed CITY STEPS, the Local Homeless Coordinating Board and local human service organizations recognize the need for affordable dependent care. During the school year NCJC host over 160 low income children in licensed programs and provide a summer camp for an additional 120 children. Applicant also provides parenting classes, adult basic education, and ESL classes with Kirkwood. Applicant requests funds to replace the back deck and classroom windows at the Broadway Center and concrete and asphalt repairs to the parking lots at Broadway and Pheasant Ridge. The budget does not match the total requested. The total in the budget adds to $41,600; however under b) the total CDBG requested amount is $26,615. Applicant requests funds for classroom windows, however there is no budget item for this request. Applicant was allocated $14,600 in FY09 funds to replace windows at the Broadway center. There was no mention of how the applicant arrived at the cost estimate and no estimate was provided with the application. NCJC has a long history of coordinating with area non-profits, organizations, neighborhood groups, neighborhood businesses and local community leaders. There is no duplication of services as there are limited subsidized day care options in the area. NCJC has been successful in completing a variety of CDBG funded public service and public facility projects over the last 20 years. NCJC has received a number of CDBG allocations for both the Pheasant Ridge and for the Broadway Neighborhood Center. Applicant operates with a budget of approximately $1,900,000 and 55 full-time staff. They are accredited by the National Association for the Education of the Young Child (NAEYC) and have the capacity to complete the proposed project successfully. Applicant has received CDBG (public facility) funds in FY05, 06, 08 & 09. 1. How were the cost estimates for the proposed improvements completed? 2. Does the applicant request funds for window replacements and please confirm the total amount of CDBG funds requested? 3. Does applicant have a capital reserve budget? 4. All work will be subject to federal labor provisions (Davis Bacon - prevailing wages) and must comply with federal procurement standards (competitive bids) for the proposed work. 2 I ~ j ~~5._..... (~~J!:'"l. ~"'!IIr""!!ru!.' ...... .....I.L.. CITY OF IOWA CITY FY10 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Shelter House - New Construction Number Page 201 Project Address 429 Southgate Avenue, Iowa City Activity Type Public Facility CITY STEPS Priority High - Emergency Shelter CITY STEPS Goal Emergency Shelter Needs: Support expansion or addition of Achieved facilities to meet increased demand (pg. 108) Beneficiaries Presumed Benefit (Homeless) Amount Requested $300,000 Repayment Terms Earned Grant. Compliance period of 100 years. Period of Affordability NA Percent of Project Unable to calculate Publicly Funded Leveraging City Funds Unable to calculate Property Taxes Tax exempt I ~ ! ~~'5._..... &~~~'"!. :::: _.L' .....,....,............. - CITY OF IOWA CITY Documentation of Project Need Project Budget Discussion STAFF ANAL YSIS CITY STEPS identifies Emergency Shelter as a high priority. The current shelter is operating beyond capacity. The shelter operates out of single family home built around 1900 with a capacity of 29 persons. While the population has increased in Johnson County by 36% from 1980 to 2000, there has been no increase in capacity to the shelter. Applicant states on average 100 men, women and children are denied shelter each month due to lack of space. The local faith communities have operated an overflow shelter at their sites for the last five winters. Over 160 persons were sheltered this past winter at the church sites requiring over 450 volunteers each season. The current shelter is overcrowded and no space designated for children. Families with young children share the same floor as single men and women. There are no private areas to be used by outreach services and thus the applicant must rent a secondary office location. Applicant request funds to construct a new 16,500 SF shelter that will provide shelter for 70 individuals. The facility will house Shelter House staff, a drop-in center, training room, nurse's office, kitchen, dining room, laundry and outreach offices. The new shelter will also house a family only area with children's play and study rooms. Land and construction costs are estimated at $2,582,720. Engineering, legal and contingency account for an additional $1,035,956, however applicant states all architectural, engineering and a portion of the legal fess have been donated and are included in a separate line item (volunteer contribution). Furniture and equipment are not an eligible CDBG public facility cost. The construction cost with architecture and engineering (without land) is approximately $207/SF (Volunteer contribution deducted). The cost appears high. How was the cost estimated? 2 Shelter House works with several community partners to Project Coordination coordinate services to assist individuals achieve their highest with Existing Services degree of self-sufficiency. The in-house counseling program & other Services gives clients assistance with community resources, Available in the employment, and housing. Through the STAR program client Community receive case management and vocational support for up to two years. Applicant History or Shelter House has been successful in completing a number of Capacity to similar public service and public facility CDBG projects. Successfully Applicant has not received CDBG (public facility) funds in the Complete the Proposed Project last five years. 1) Please discuss the budget items addressed above. 2) Will Shelter House have the operational funds to increase capacity by 41 persons (29 to 70) - utilities, staff, building reserves, etc? 3) All work will be subject to federal labor provisions (Davis Bacon - prevailing wages) and must comply with federal Summary of Items procurement standards (sealed bids) for the proposed work. 4) Construction can't begin until July 1, 2009. The proposed to be Addressed work schedule states that construction begins in April 2009. 5) Does applicant have all other funding sources secured in order to start construction in FY10? How much has been raised for this purpose? 6) Are all legal challenges resolved so that construction may begin in FY10? 3 I ~ I ~t~~~tt ::: ..!!!-, ......---..-. CITY OF IOWA CITY STAFF REPORT FY10 CDBG/HOME APPLICANT REVIEW Project Name & Page United Action for Youth - Facility Rehabilitation Number Page 211 Project Address 422 Iowa Avenue, Iowa City Activity Type Public Facility CITY STEPS Priority High - Youth Center/Child Care Center CITY STEPS Goal Provision of Youth Center: Continue support of before/after school Achieved facilities for all youth. (Page 112) 0- 30% mfi 4% Beneficiaries 31-50% mfi 52% 51-80% mfi 26% Over 80% mfi 18% (includes 79 persons with unknown income) Amount Requested $18,000 Repayment Terms Earned Grant. Compliance period of 6 years. Period of Affordability NA Percent of Project 90% Publicly Funded Leveraging City Funds $0.11 in other funds for each CDBG dollar requested. Property Taxes Tax exempt I ~ I ~~5.-"Mo ~~~!='"!. ~"'!r"'.I~ ............... CITY OF IOWA CITY STAFF ANAL YSIS Documentation of Project Need Project Budget Discussion Project Coordination with Existing Services & other Services Available in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed Youth Centers and Child Care Centers are a high priority in CITY STEPS. Applicant serves over 1,000 youth and families annually with youth programming, counseling, skill building, teen pregnancy programs and runaway services. UA Y operates three facilities in downtown Iowa City that are used to support services to youth and families. The house at 422 Iowa Ave. is used as a staff resource center and meeting center for some of the programs provided in support of the larger youth center at 355 Iowa Ave. Applicant requests funds to paint the exterior, repair the back and front steps and replace the windows at 422 Iowa Ave. CDBG funds make up 90% of the total project budget. Applicant secured volunteer labor, valued at $8,000, through the Community Corrections Improvement Association, to paint and replace storm windows. 10 volunteers (court ordered community service volunteer group) will each contribute 80 hours to this project. UA Y coordinates their services with several area agencies. UA Y has a history of working with several groups of volunteers for donated labor. United Action for Youth has a long history of successfully administering CDBG funded projects, both large and small. Applicant purchased the youth center (355 Iowa Ave.) in FY03 with the assistance of CDBG funds. Applicant also received CDBG (public facility) funds in FY05. 1. How were project costs determined? 2. All work will be subject to federal labor provisions (Davis Bacon - prevailing wages). 2 I ~ I ~:~-"'" ~~~!!:'"!. ~__,' CITY OF IOWA CITY FY10 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Compeer of Johnson County - Operations Number Page 219 Project Address 507 E College St, Iowa City 52240 Activity Type Public Services CITY STEPS Priority High - Health Services CITY STEPS Goal Provision of Health Services: Continue support of health, dental and Achieved HIV/AIDS Services (pg. 115) o -30% MFI 58% Beneficiaries 31 -50% MFI 16% 51 - 80 % MFI 18% Over 80% MFI 9% Amount Requested $8,280 Repayment Terms Grant Period of Affordability NA Percent of Project 50% Publicly Funded Leveraging City Funds $1.00 in other funds for each CDBG dollar requested Property Taxes NA I ~ ! ~~~~'t ~ ,,~, ~...A..L. CITY OF IOWA CITY STAFF ANAL YSIS Documentation of Project Need Project Budget Discussion ProjectCoordinaHon with Existing Services & other Services Available in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed The Johnson County Health Improvement Planning Committee ranked mental health as one of the Top 5 Major Health Problems in Johnson County (2000) and stated the demand for services is overwhelming the mental health system and there is a lack of preventative health care services. Compeer currently has 22 clients with chronic mental illness with 15 clients on their wait list. The program matches volunteers in the community with a client. The volunteer commits to at least one hour a week of interaction with the client to decrease isolation and to assist the client work toward recovery and socialization. Applicant will match the grant requested through private funds. Volunteers provide 1 ,920 hours of service annually. The estimated dollar value of volunteer contribution is $19,200. The program works out of and purchases accounting services from the Community Mental Health Center. In 2010, the director plans to work with local professionals to offer programs to educate the public and to foster understanding of the challenges of living with a mental illness. Applicant received CDSG funding in FY05, 06, 07 & 09. Staff had some difficulty getting complete information (e.g. income verification and annual reports in the past). 1) Previously there has been frequent director turnover. How does this affect the program? 2 I ~ I -....= -...... !~~!:'"t. ~ -., ........~ CITY OF IOWA CITY FY10 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Extend the Dream Foundation - Financial Management Assistance Number Page 226 Project Address 401 S. Gilbert St. Iowa City, IA Activity Type Public Service CITY STEPS Priority Medium - Services to Persons with Disabilities High - Micro-Businesses CITY STEPS Goal Provide Employment Training and Education (pg. 122) Achieved Beneficiaries o - 30% MFI 67% 31 - 50% MFI 33% Amount Requested $2,500 Repayment Terms Grant Period of Affordability NA Percent of Project 50% Publicly Funded Leveraging City Funds $1.00 in other funds for each CDBG dollar requested. Property Taxes Tax exempt I ~ 1 .::::~=_..... f~~~'"!. =: _.L~ ............. CITY OF IOWA CITY STAFF ANAL YSIS Documentation of Project Need Project Budget Discussion Project Coordination with Existing Services & other Services Available in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed Applicant started Uptown Bill's Small Mall in 2001 as a micro- enterprise incubator for low income person with disabilities. Applicant now has eleven businesses and employees 19 in one or more of these micro-enterprises. During this time the applicant has had various help with financial management and recordkeeping functions, however the organization has very limited paid staff and is managed by a full-time volunteer director. Applicant requests funds to purchase financial management services (bookkeeping, accounting and tax assistance ). Applicant secured a private match to the requested grant amount. The agency has a full-time volunteer director that contributes 20 hours per week to the ongoing support and financial management of the agency. Extend the Dream Foundation (EDF) has been working with several community partners through referrals for micro-enterprise or e- commerce training and hosting meeting spaces for various non-profit organizations. EDF works with LIFE Skills, Systems Unlimited, MECCA, CMHC, Elder Services, STAR homeless outreach and others. EDF has provided work internships for five homeless persons referred by STAR. Applicant has received CDBG and HOME funds in the past for various projects. During prior monitoring visits, various items were noticed that were not in compliance with HUD requirements. The most important item being that EDF must have a financial system that provides control and accountability over funds and assets, identifies the source and application of federal funds, provides source documentation, has basic accounting records, and ensures an adequate separation of financial duties. EDF has worked to resolve some of these issues; however the organization must incorporate a financial management system operated on a long term basis that will meet federal standards. Applicant received CDBG operational funds in FY06, 07, 08 and 09. 1) EDF is currently not in compliance with HOME regulations for the three HOME assisted units at 912 2nd Ave. EDF must submit acceptable income verification for the tenants living in the HOME assisted rental units. Failure to comply may impact EDF's ability to access future City funds. 2) What is the plan for long-term financial sustainability and long-term financial management? 2 I ~ 1 -....= -... ~~~~i!:'t ~~...., ........-IL. - CITY OF IOWA CITY FY10 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page IC Free Medical Clinic (FMC) - Pharmacy Assistance Program Number Page 234 Project Address 2440 Towncrest Dr. Iowa City Activity Type Public Service CITY STEPS Priority High - Health Services CITY STEPS Goal Provision of Health Services: Continue support of health, dental, and Achieved HIV/AIDS services. (pg 115) Beneficiaries 0-31% MFI 99% 31 - 50 % MFI 1% Amount Requested $10,000 Repayment Terms Grant Period of Affordability NA Percent of Project 2% Publicly Funded Leveraging City Funds $40.53 in other funds for each CDBG dollar requested Property Taxes Tax exempt I ~ 1 ~~=.-.... ~~~~!:'"!. =: *!!!'L'- ................ CITY OF IOWA CITY STAFF ANAL YSIS Documentation of Project Need Project Budget Discussion Project Coordination with Existing Services & other Services Available in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed In FY08, Free Medical Clinic had 6,118 patient visits and approximately 6,400 prescriptions dispensed to those patients. FMC submits applications to drug assistance programs for patients without access to any other assistance. FMC serves over 250 persons with chronic diabetes, high blood pressure, asthma or other chronic conditions. FMC requests funding for a pharmacy technician to help provide access to free prescription medications for patients with chronic illness. Applicant notes that there are no other services (pharmacy, lab, follow-up, etc.) in Iowa City that provide on-going health care for low-to-moderate income persons without any cost to the patient. Project leverages $400,000 in donated prescription medications, while staff cost to run the program is less than $20,000. Volunteer pharmacists and assistants fill the prescriptions and dispense the medication at a value of $8,750 annually. The Free Medical Clinic has a long history of working with a variety of agencies and organizations in Iowa City, such as Shelter House, DVIP, U of I Hospital and Clinics, U of I Dental School, MECCA, STAR and many private health care professionals. The Free Medical Clinic has successfully administered CDSG funds in previous years. Additionally, the clinic has a 30 plus year history of operating the clinic and overseeing renovations funded with grants and donations. The applicant received CDSG funds for operational expenses in FY05, 06, 07, 08 & 09. 1) How will applicant locate funds for operational costs in the future? 2) What is the status of the building acquisition project? 2 I ~ I -....= -...... ~~ji;e'"'- ~__,' ..... -.M.- CITY OF IOWA CITY FY10 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Local Foods Connection - Executive Director's Salary Number Page 241 Project Address 502 Kimball Road, Iowa City Activity Type Public Service CITY STEPS Priority High - Health Services (medical, dental, nutrition, preventive care) CITY STEPS Goal Support food and nutrition services for low income residents. (pg. Achieved 115) 0- 31% MFI 95% Beneficiaries 31 - 50% MFI 4% 51 - 80% MFI 1% Amount Requested $8,000 Repayment Terms Grant Period of Affordability NA Percent of Project 100% Publicly Funded Leveraging City Funds $0 in other funds for each CDBG dollar requested. Property Taxes NA I ~ 1 =!'.ii05......... ~~~!:'"? ~ "!!!.L'- ..,., ...AL. CITY OF IOWA CITY STAFF ANAL YSIS Documentation of Project Need Project Budget Discussion ProjectCoordinaffon with Existing Services & other Services Available in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed Local Foods Connection purchases fresh, organic produce, meat products and bakery items from local small family farmers and donates these goods to low income households. As part of their mission the organization also provides clients with nutritional education. CITY STEPS lists Health Services as a high priority and has a short-term objective to support food and nutrition services for low income residents. In 1999, the organization assisted one client; in 2008, the organization served 22 Iowa City households and five local human services agencies. Applicant requests funds to support a paid director's position. For long-term well-being of the organization, their Board is pursuing a paid position as the organization continues to grow and their recognition in the community continues to increase. The Director will donate approximately a 3/5 position to continue and foster organizational growth. The value of the donated labor is estimated at $16,960. In FY2008, the applicant raised over $34,000 to support the organization. The applicant collaborates with and receives referrals from the Crisis Center Food Bank to assist individuals with special nutritional needs. In FY10, applicant will take referrals from DVIP, Ecumenical Towers, Free Medical Clinic and Neighborhood Centers of Johnson County. Applicant was selected by the New Pioneer Co-op to be the recipient charity for its "Donate Your Dividend Check" program. In 2008, they received $16,947 from 1,300 members. The Co-op has informed the applicant they will continue this program for the next several years. The applicant has received funding from several organizations. Applicant received CDBG funding in FY08 & 09. 1) Discuss plan for long-term financial sustainability. 2) Besides CDBG funding, will applicant fundraise to support a paid director's position? 2 I ~ j .;:;~~_...... ~~~!:'"t. ::::~__I~ ............... - CITY OF IOWA CITY FY10 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Shelter House - Client Services Coordinator ICash Match Number Page 252 Project Address 331 N. Gilbert, Iowa City Activity Type Public Service CITY STEPS Priority High - Homeless Needs CITY STEPS Goal Expanding staff and capabilities within the existing system to provide Achieved improved service and expanding available services. (pg. 108) Beneficiaries Presumed Benefit (Homeless) Amount Requested $7,500 Repayment Terms Grant Period of Affordability NA Percent of Project 82% Publicly Funded Leveraging City Funds $74.01 in other funds for each CDBG dollar requested. Property Taxes Tax exempt I ~ ! .:::::~~_..... ~~~!:'"!. =: ..., .......-&L. CITY OF IOWA CITY STAFF ANAL YSIS Shelter House is proposing case managemenVoutreach services to an estimated 450 persons annually. The proposed project will count towards a cash match requirement for the federal Supported Training Documentation of and Access to Resources (STAR) program. The STAR grant requires Project Need $106,750 in local cash match to leverage $448,000 in federal funds. A failure to meet the cash match will result in a loss of the entire grant. The primary service activity of the program is Employment Assistance to persons who are homeless. All of the CDBG funds requested are targeted for operational Project Budget expenses (salaries) for outreach and case management functions. Discussion Volunteers are anticipated to provide 750 hours of general administrative assistance to the proposed project for a value of $7,500. Project Coordination Referrals to local human service organizations are essential to the with Existing Services success of this project. The function of the outreach coordinator is to & other Services focus on expediting access to local mental health and substance Available in the abuse resources, employment, housing and other corollary Community community based and public resources. Applicant History or Capacity to Shelter House has been successful in completing a number of similar Successfully public service and public facility CDBG projects. Applicant received Complete the CDBG operational funds in FY05, 06, 07, 08 & 09. Proposed Project 1) CDBG funds were used to provide a portion of the cash match required to leverage the STAR grant in previous years. Does Shelter House anticipate difficulty with raising the remaining cash match Summary of Items requirement for FY10? to be Addressed 2) How will applicant locate funds for operational costs in the future? Operational costs will also increase upon the opening of the new facility that will assist up to 70 persons (29 currently). 2 I ~ I -...= -It f~ji!!:'t ~~"_I' ............I.L. CITY OF IOWA CITY FY10 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Successful Living - Therapeutic Recreation Program Number Page 262 Project Address 716 N. Dubuque Street, Iowa City Activity Type Public Services CITY STEPS Priority High - Health Services CITY STEPS Goal Provision of Health Services: Continue support of health, dental and Achieved HIV/AIDS Services (pg. 115) Beneficiaries o -30% MFI 100% Amount Requested $8,000 Repayment Terms Grant Period of Affordability NA Percent of Project 43% Publicly Funded Leveraging City Funds $1.31 in other funds for each CDBG dollar requested Property Taxes NA I ~ j ~~=_..... !~~l!:'"'- ::::: -!!m!.' ....... -.&L. CITY OF IOWA CITY Documentation of Project Need Project Budget Discussion Project Coordination with Existing Services & other Services Available in the Community Applicant History or Capacity to Successfully Complete the Proposed Project Summary of Items to be Addressed STAFF ANAL YSIS Successful Living owns 37 single room occupancy (SRO) residences and provides counseling services to low income persons with mental illness. Applicant is requesting funds for the establishment of one full time position to direct recreational and leisure activities specifically designed to increase socialization and build skills. Applicant cites several studies that indicate positive psychiatric health outcomes resulting from the participation in structured physical, social and recreational activities such as decreases in stress and depression, improvement in social interaction skills, increased communication and cooperation skills, improvement in ability to manage stressors which threaten sobriety and many other positive outcomes. Applicant will match the grant requested through private funds. Volunteers from the University's Rec-Net program will provide 624 hours of service with an estimated dollar value of $6,240. Rec-Net will provide volunteers, staff and expertise to Successful Living. Rec-Net is affiliated with the Leisure Studies program at the University of Iowa. Students in therapeutic recreation must complete 400 hours of pre-internship volunteer or paid work to graduate. A private for-profit company, Play-It-Again Sports, will provide access to a range of equipment and supplies for the residents to use. The Life Skills Social Group provides access and utilization of community resources such as the library, recreation center, and recurring free events around town. The group meets weekly for recreational activities (there is a fee) for primarily persons with mental illness. Can applicant utilize these resources as well? Applicant has received prior City and federal funding for the acquisition of residential properties. Successful Living operates three properties with SRO residences at 716 N. Dubuque St., 214 Church St. and 416 S. Dodge St. 1) How will applicant maintain the program after the first year? 2) Must the position be full time at this time? How will partial funding affect the program? 2