HomeMy WebLinkAbout03-12-2009 Housing & Community Development Commission
AGENDA
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
IOWA CITY PUBLIC LIBRARY, MEETING ROOM A
123 S. LINN STREET, IOWA CITY
THURSDAY, MARCH 12, 2009
7:00 P.M.
1. Call Meeting to Order
2. Approval of the February 17 & 19, 2009 Minutes
3. Public Comment of Items Not on the Agenda
4. Staff/Commission Comment
5. Human Rights Commission - City Board and Commission Survey
6. Update on the American Recovery and Reinvestment Act (a.k.a. Stimulus Bill)
7. Consider an Exception to the Policy for Allocation of Uncommitted CDBG and HOME
Funds
8. Discussion Regarding FY10 Community Development Block Grant (CDBG) and HOME
Investment Partnership Program (HOME) Requests
. Review Project Rankings
. Discuss Average Allocation Worksheet
9. Adjournment
Reminder: The meeting will be held at the Iowa City Public Library,
Meeting Room A, at 7:00 PM
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CITY OF IOWA CITY
MEMORANDUM
DATE:
TO:
FROM:
RE:
March 6, 2009
Housing and Community Development Commission
Community Development Staff
HCDC Meeting on March 12, 2009
Thank you for the many hours of time and energy that you have put into the allocation process
up to this point. Below is a brief description of the March 12 agenda items.
The Human Rights Commission requested that staff distribute the enclosed survey to you.
Please read the letter submitted by Stefanie Bowers, Human Rights Coordinator. The survey is
voluntary and very short. If interested, you can complete the survey enclosed or staff will
provide the survey to you at the meeting. There will be an envelope to hand in the survey at the
meeting.
Staff recently received notification that the City will receive an additional $176,785 in CDBG
funds. These funds were contained in the Economic Stimulus Package that was recently
signed into law and were allocated by annual HUD formulas. Staff is waiting for HUD's official
guidance regarding what types of activities may be funded and when the projects must be
initiated and funds spent by. Additional updates will be provided at the March 12 meeting.
At the upcoming meeting you will be discussing the FY10 applications, funding amounts and the
rankings. Congress has not approved a budget yet, thus we will continue to anticipate the
funding as stated previously in regards to our annual entitlement funding. This meeting is
designed to help you finalize the ranking sheets and adjust your funding amounts. At the
March 26th meeting, HCDC will finalize their FY10 CDBG/HOME budget recommendation to
submit to City Council.
The applications for CHDO operating expense and tenant based rent assistance are HOME
eligible projects only. For rental housing projects involving new construction, only the
acquisition of land is CDBG eligible. Construction of new rental housing is a HOME eligible
expense. All other housing applications are both CDBG and HOME eligible. Staff will discuss
how this affects your recommendations, specifically as it relates to funds available for public
service/public facility projects.
Please keep in mind that the proposed amount allocated to public service projects is right at the
statutory limit, which is set by law. The public service category will be competitive. The
minimum allocation for public service applications is $2,500.
(Over)
March 6, 2009
Page 2
Included in this packet are your preliminary rankings and allocations. Please review your scores
and allocations. If you notice any errors, please contact staff so we can make corrections
before the meeting. After the March 12th meeting, please submit your revised scores and/or
allocations to staff if you make any changes. The revised spreadsheets will be ready for your
review for the March 26th meeting.
If you have any questions regarding this information, please feel free to contact Tracy Hightshoe
or Steve Long at 356-5230.
Please remember that both meetings (March 12 & 26) will be at the Iowa City Public Library.
Meeting Room A.
The March 12 meeting will start at 7:00 PM.
The March 26 meeting will start at 6:30 PM.
MINUTES
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
TUESDAY, FEBRUARY 17, 2009-11:00AM
PLANNING DEPARTMENT CONFERENCE ROOM, CITY HALL
PRELIMINARY
MEMBERS PRESENT: Steve Crane, Andy Douglas, Charles Drum, Mike McKay,
Brian Richman, Michael Shaw
MEMBERS ABSENT: Marcy DeFrance, Holly Hart, Rebecca McMurray
STAFF PRESENT: Tracy Hightshoe, Steve Long
RECOMMENDATION TO COUNCIL (become effective only after separate Council
action):
None
Call to order:
Brian Richman called the meeting to order at 11 :00 a.m.
Site Visits to FY10 CDBG/HOME Proposed Project Sites
. Arc of Southeast Iowa (2620 Muscatine Ave.). Bill Reagan provided a tour of the
facility and highlighted the project sites.
. MECCA (430 & 436/8 Southgate Ave.). Ron Berg and Heidi Cuda provided a
tour of the the project sites.
. United Action for Youth (422 Iowa Ave.). Jim Swain provided a tour of the project
site.
Adjournment:
MOTION: Drum moved to adjourn the meeting. Douglas seconded the motion. The
motion carried on a vote of 6-0.
The meeting was adjourned at United Action for Youth at 1:10 p.m.
MINUTES
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
FEBRUARY 19, 2009 - 6:00 PM
MEETING ROOM A, IOWA CITY PUBLIC LIBRARY
PRELIMINARY
Members Present: Stephen Crane, Marcy DeFrance, Charlie Drum, Holly Jane Hart,
Michael McKay, Rebecca McMurray, Brian Richman, Michael Shaw
Members Absent: Andy Douglas
Staff Present: Tracy Hightshoe, Steve Long
Others Present: Sandy Pickup (Free Medical Clinic); Brianne Wojtak, Ashlee Swinton
(Successful Living); Laura Dowd (Local Foods Connection), Crissy
Canganelli (Shelter House), Maryann Dennis, Charlie Eastham (The Housing
Fellowship), Arvind Thakore (Dolphin International), Steven Rackis (Iowa
City Housing Authority), Andy Johnson (Housing Trust Fund), Josh Weber,
Heather Weber (Builders of Hope), Yolanda Spears (Isis); Bill Wittig (Bill
Wittig); Brian Loring (Neighborhood Centers of Johnson County); Sherri
Zastrow (Community Mental Health); Diane Funk, Jan Koch (First
Mennonite Church/Home Ties); Ron Berg (MECCA); Kristie Doser
(Domestic Violence Intervention Project); Jim Swaim (United Action for
Youth); Bill Reagan (ARC of Southeast Iowa); Megan Lisman, Ashley
Keating, Megan Dial, Kelly O'Neil, Rachel Mardoian, Katie Harrington, Bret
Peterson, (University of Iowa School of Journalism)
RECOMMENDATIONS TO COUNCIL (become effective only after separate Council action):
None.
CALL TO ORDER:
The meeting was called to order at 6:00 p.m.
APPROVAL OF THE NOVEMBER 20. 2008 MINUTES:
McKay noted that he was present at the December 18, 2008 meeting, and the minutes indicated that
he was not.
Crane motioned to approve the minutes with a correction noting McKay was present. Hart
seconded. The motion carried 8-0 (Douglas absent).
PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA:
None.
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DISCUSSION REGARDING APPLICATIONS FOR FYIO COMMUNITY DEVELOPMENT
BLOCK GRANT (CDBG) AND HOME INVESTMENT PARTNERSHIP PROGRAM
(HOME) FUNDING - QUESTIONI ANSWER SESSION:
Richman explained that the meeting was a question and answer session for applicants to the HOME
and CDBG funding programs for 2010. He explained that there would be three meetings over the
next two months, the first of which was being held currently. He said that this was an opportunity for
Commissioners to ask applicants any questions they had about their applications, their projects, or
their responses to what was written up in the staff report. Richman encouraged everyone on the
Commission to ask questions. Richman encouraged applicants to follow the tight time schedule that
had been set up and to provide focused and succinct answers. He said there had been five minutes
allotted to each of the public service and public facilities projects, and ten minutes allotted to each of
the housing projects. He apologized in advance in case he had to cut anyone off to keep the meeting
movmg.
Hightshoe reminded Commissioners and applicants that applicants are not to provide written
materials in response to the staff comments found in the staff report. If a Commissioner specifically
requests a written response in this question and answer session, then the applicant may provide one to
staff to distribute to all Commissioners. The application materials should speak for themselves, and
no supporting documentation will be accepted unless requested by the Commission.
Hightshoe explained that ranking sheets for the projects would be mailed bye-mail (or paper copy if
requested) to Commissioners on February 20th.
Richman reiterated that this meeting was intended to give the Commissioners an opportunity to ask
questions of the applicant. The next meeting, on March 12,2009, will be a meeting in which
Commissioners discuss their rankings for various projects. March 26,2009, is the meeting in which
Commissioners will have to ultimately determine how to allocate the very limited funding amongst
the very deserving projects.
Hightshoe noted that the City has not yet heard from Congress about their final allocation. She said
the original numbers are the numbers which the Commission will be working from. Hightshoe and
Long said that there had been additional funding written into the stimulus package, but that they did
not know what the terms or amounts would be for Iowa City.
Hightshoe noted that applicants are welcome to talk about their applications to fill the full five
minutes if the questions do not take the entire allotment.
Free Medical Clinic - Operations: Sandy Pickup:
Pickup said that Staffhad done a good job with the analysis and summary of the Free Medical
Clinic's application. She noted that Staff had asked how the clinic intended to locate funds to
operate in the future. Pickup responded that the clinic had been receiving some state funds to
provide a more medical/home model. She said that some of those funds are being used now to
provide pharmacy services. That funding is somewhat up in the air at this point, however, Pickup
said.
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Crane asked how the Free Medical Clinic's building project was coming along. Pickup said that the
project had stalled for awhile. She said that an inspection and appraisal had been done and that the
results of those findings had been presented to the property owner. Crane asked if the appraisal was
close to the purchase price. Pickup said that it was not close at all, and that this was one of the major
reasons the negotiations have returned to the "talking phase."
Richman asked if Pickup had seen an increase in people using their services over the last six to
twelve months. Pickup said that due to the setup of the operation and the reliance on volunteers, it
was not really possible to see more people than they had already been seeing. However, she did note
that the statistics they keep on the rate of patients who are unemployed show an increase in the
number of patients seeking services who are jobless. She added that the need for services is
definitely not decreasing.
Shaw asked if the application would be funding a half-time pharmacy technician. Pickup said that it
would not cover all of the cost, but that funding would go toward that purpose. Shaw noted that the
clinic already has a pharmacy technician. Pickup said this was correct, and that CDBG funds have
been used for the last two or three years to fund that position.
McKay asked if there was any reason to believe that the donations of prescription medications that
the clinic receives would be reduced in the coming year. Pickup said that she believed legislation
was being passed in Congress to eliminate pharmaceutical samples and other gifting items given out
by pharmaceutical companies, but that she did not think such legislation would greatly affect their
clinic as it did not actually use many samples. Pickup said that the free medications the clinic
receives are stock bottles from the pharmaceutical companies and are not samples.
Pickup said that she appreciated the opportunity to come before the Commission each year, and that
she appreciated the Commission's work on behalf of the clinic and the community.
Richman said that if applicants wished to take a few minutes at the beginning of their time to address
any concerns in the staffreport they could do so, and then questions could follow.
Compeer ProJlram - Operations: Karen Fox:
Fox said the Compeer Program is an important program that helps to improve the lives of people
living with mental illness by pairing them with volunteer friends from the community who provide
stability and socialization in their lives. Fox noted that Staffhad expressed concern over the turnover
rate of directors for the program and how that was affecting the program. Fox said that the major
result of the turnover had been to hamper the growth and development of the program, as well as the
program's ability to be advocates for the mentally ill in the community. Fox said the Board made a
concerted effort with its last hire (her) to find someone who was really connected to the community.
Fox said she has lived in the community for thirty years and has been a volunteer for many different
organizations, and is very committed to the program. She said she is now working to reach out to
mental health professionals in the community to educate them about the program, and working hard
to recruit program volunteers. Fox said that since she joined the agency in August, the program has
already made four new volunteer/client matches, and received nine new client referrals. She said
there are currently a total of22 matches, and 15 people on the waiting list. Fox said she believed that
this program could support well over 100 clients in this community. She noted that one in every five
people suffers from mental illness at some point in their adult lives.
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Shaw asked if the disruptions in leadership had caused disruptions in the program's ability to provide
services or sustain itself. Fox said that it had. Fox said that it takes at least three months to get to the
point where you know the program well enough to actually make referrals. Fox acknowledged that
the ability to create matches was hampered by the turnover in management, but that the program has
a very strong Board of Directors who has worked hard at sustaining the program. Fox said she is
confident that the program will now thrive.
Shaw asked if Fox had been involved with Compeer prior to taking over its leadership. Fox said that
she knew of the program but had not volunteered in it. Shaw noted Fox's long history with the
community and her commitment to the program, and asked if she had acquired any sense of what the
turnover was related to. Fox said that the position is a half-time one, and so many people take those
positions while finishing school or waiting for a full-time position to come along. Fox said the
turnover was not anything the board could have controlled and was based on the individual life
circumstances of the previous directors.
Drum noted that the staff report indicates there had been some difficulty in getting income
verifications for the program. Fox said that this problem had been resolved and that all of the
necessary information was now right on the application form. She added that it was not easy to track
this population as many chronically mental ill clients do not answer the phone and do not have e-
mail. Shaw said that she does have permission to speak with their therapists so this is often the route
she has to take.
McMurray asked how Compeer found its volunteers. Fox said they were found through outreach,
word-of-mouth, churches, service clubs and through the 1000 Hours program at the University of
Iowa.
Fox closed by saying that it has been shown nationally through research that programs like Compeer
do a great deal of good for people, helping to keep mentally ill clients stable, on their therapy and
medication schedules, and preventing hospitalizations.
Successful Living - Ooerations: Ashlee Swinton. Brianne Woitak
Swinton introduced herself as a counselor at Successful Living, and Wojtak identified herself as the
director of RecNet, a program which partners volunteers from the University of Iowa with agencies
in the community.
Swinton stated that Successful Living is a non-profit organization that assists individuals with mental
illness in maintaining independent living skills. Swinton cited basic life skills such as helping clients
with grocery shopping and helping to maintain medication compliance as things Successful Living
assists clients with.
Swinton said that their application was submitted in hopes of partnering Successful Living with
RecNet and Play It Again Sports. Swinton said that they hope to be able to provide a full-time staff
member to oversee this partnership with the help ofCDBG funding. Swinton said that it is their hope
that a full-time staff member will be able to use the first funded year as time to both work with
resources in the community as well as time to initiate an annual fundraiser. Swinton said that
summer would be the best time to have this fundraiser as it tends to be a very good time of year for
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people with mental illness, and this would help to get most of the clients involved. Swinton offered
suggestions of a softball tournament, chili cook-off, or a run as possible fundraising ideas. This
fundraiser would be intended to help support the full-time position in the future, as well as fund arts
and craft supplies and prizes for different game nights. Wojtak added that they had started a pilot
program at Successful Living the previous week, hosting a game night for clients. She said that
seven residents participated in the inaugural event, and that nine participated in the next one. Wojtak
said she believes there is a great deal of interest in this and other activities, such as classes on
cooking and nutrition. Wojtak said that the partnership with Play It Again Sports would allow the
program to introduce exercise equipment to the residents and allow the program to expand to outdoor
activities as the weather warms.
Richman asked Swinton and Wojtak to pause for questions from the Commission. Hart asked what
the affect on the program would be if funding was for a half-time position, or if only partial funding
was granted. Swinton replied that she believed it would hinder the program's ability to build
successful relationships. Swinton said that her experience in working with mental illness has shown
that it takes a lot to build trust with these clients. A part-time position would take twice as long to
gain trust. Swinton said the overall goal was to get clients to trust the peers in their household in
order to offer them outreach and community support. Swinton gave the example of evening
programs offered by Lifeskills. She said that without the support of staff or volunteers from RecNet,
it would be difficult to get clients to go out into the community, expand their social network and
build a better quality of life. A full-time position would also offer flexibility for planning, allowing
RecNet to come in twice a day rather than once a day. Wojtak noted that the program would also
offer leisure education. Wojtak said that RecNet has a leisure resource binder that would be very
helpful in identifying individual interests and allowing the staff member to build relationships with
clients based on those interests and activities.
Shaw asked if RecNet, Successful Living and Play It Again Sports have a formal agreement, or if the
relationship is more informal. Shaw wondered if there were contracts in place. Wojtak said that
there is a partnership in place. Wojtak said that the volunteers are rotating in and out at this time, but
that a paid staff position would allow for better coordination and tracking of volunteer hours.
There were no further questions for the applicants.
Local Foods Connection - Operations: Laura Dowd
Dowd addressed staff concerns as to how Local Foods Connection was planning for long-term
stability. Dowd said that in the manual "Iowa Best Principles and Practices for a Charitable Non-
Profit" put out by the University ofIowa's Non-Profit Resource Center, a strategic plan that includes
a specific financial plan is recommended. Local Foods Connection currently has an informal
financial strategic plan, and intends to have a written financial plan as well as an internal control
manual for their finances by December 2009. Dowd said that a second point laid out in the manual
encourages diversity in funding sources to increase organizational financial stability. Dowd said that
Local Foods does have a diversity of funding sources. She said that the program is part of the New
Pioneer Co-Op's "Dividend Check Donation Program," resulting in donations from 1,300 different
people in 2008. Grants to Local Foods are received each year from The Iowa Foundation for
Education, Environment and the Arts. Local Foods receives donations from businesses and
individuals located in cities served by Local Foods: Iowa City, Coralville, North Liberty, Des
Moines, Fairfield and Cedar Rapids. Local Foods receives donations via the internet through their
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own and other non-profit websites. The Haunted Bookshop has held a permanent benefit sale for
Local Foods for the past two years, and plans on continuing to do so. Local Foods sells T-shirts,
note-cards, and cookbooks as other means of fundraising. Referring back to the best practices
manual, Dowd noted that it encourages prudence on the part of non-profits, requiring them to
generate income beyond daily operational needs in order to build a cash reserve.
Richman asked Dowd to pause in her presentation to allow for Commission questions.
Crane asked if the partnership Local Foods has with the Co-op will be continuing into this year, and
if the same income was expected. Dowd said the partnership was continuing and that every year the
income has increased. Dowd said that the second year saw a dramatic increase from the first, going
from approximately $4,500 to over $10,000, and then increased again to $16,000 in 2008.
Drum noted that food banks nationally had seen a decline in donations. He asked Dowd if she had
experienced this. Dowd said that Local Foods had raised their highest amount of money ever,
$34,000; prior to that the highest had been $26,000.
Shaw asked specifically how the program intended to support the full-time director position. Dowd
said that all of the interest earned from their endowment fund will go toward the director position; a
grant will be applied for from CFSC, a group dedicated to building strong, sustainable, accessible
local food programs; funding is also being sought from the Leopold Center at Iowa State University.
Hightshoe asked if any of the donations currently being received would go toward supporting a
director's salary. Dowd replied that funds are often donated to the group for certain reasons which
become earmarked or designated funds. A percentage of undesignated funds will be considered by
the board as a source of funding for the director's position.
Extend the Dream Foundation - Operations:
No one was present to represent this organization so the Commission moved on to the next applicant.
Shelter House - Operations (STAR ProJ!ram): Crissv Can2aneIli
Canganelli explained that this application was requesting support from CDBG for a cash match for
the STAR program. Canganelli explained that the program was a county-wide case management
program for homeless adults who have a vocational goal or objective. The program provides a
maximum of two years of supportive services for individuals and their dependents. Canganelli said
that over 25% of program participants are or have been residents ofDVIP (The Domestic Violence
Intervention Program). Another 10% are HACAP (Hawkeye Area Community Action Program)
participants, and a number of clients are referred to the program through the corrections department.
Canganelli noted that the scope of program participants reaches far beyond the residents of Shelter
House.
Canganelli said that it has always been a challenge for the STAR program to raise the required cash
match of$106,750 to receive the $448,000 HUD award. Canganelli said that each year she has
forced the organization to meet the cash match obligation on a monthly basis so that they never get
behind. During times of cash flow problems, Canganelli said, debt has sometimes been incurred to
do this; however, at the end of each fiscal year the debt has been paid off. The support through
CBDG and Shelter House fundraisers allows the program to continue and meet the cash match
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obligation. Canganelli said that it is very important to recognize that the funding through CDBG
does help the program to leverage $448,000 in federal funds coming into the community for
homeless services.
Canganelli said that hundreds of hours in volunteer support and fundraising hours must also be taken
into account when considering the financial viability of the program. She said that many volunteers
throughout the community help organize and implement fundraisers throughout the year, putting
forth incredible effort, time and expense on behalf of the cause. Canganelli said this is an important
contribution not reflected in the grant documentation as it is not considered an applicable cost.
Richman asked Canganelli to pause for Commission questions.
Shaw asked Canganelli when Shelter House would be moving to its new facility. Canganelli said
that Shelter House is working on that. Canganelli said that an increase in operational costs is not
really relative to the STAR Program as the program has been able to exceed the required number of
clients served -serving more than double the number contracted by HUD-and still remain within
the confines of the original grant agreement and budget. Canganelli said that this was a pretty
extraordinary accomplishment. Shaw asked if the program received an amount from HUn based on
each client served, or received a set amount with which to serve all clients. Canganelli said STAR
received a set amount of money with which to serve a minimum number of clients.
There were no further questions about the STAR program. Richman moved the proceedings to the
Housing section of the agenda.
Hightshoe stated that the time limit for each applicant seeking Housing funding would be 10 minutes.
She reminded applicants that written materials could not be submitted to the Commission at this
point unless specifically requested by Staff or a Commissioner. The applicant could then submit
documents to Staff, who would distribute the document to Commissioners.
Richman invited applicants to take a few minutes at the outset to discuss their applications prior to
Commission questions.
Shelter House - Rental HousinJ!: Chrissy Caneanelli
Canganelli said that the project before the Commission was an exciting one and is truly innovative.
Canganelli said that Shelter House has been working with NAMI (National Alliance for the Mentally
Ill) for some time and has recently begun working with the Department of Veterans' Affairs to
examine funding sources available through their agency. VA money could ultimately change the
scope of the project, aiming it toward permanent supportive housing for homeless veterans.
Canganelli said that the project is innovative because there are no similar projects in the state of
Iowa. Canganelli said Shelter House has been meeting with and consulting a project in Minneapolis
that has been implementing a similar project for a number of years; both projects are modeled
somewhat on the Fairweather Project, which began on the west coast.
The lodge model is intended to provide independent living opportunities for individuals who have
serious mental illness, chronic mental illness, or brain disorder. Canganelli said that their project
would be tailored to the chronically homeless population. Individuals would have a diagnosed
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chronic mental illness or disability, but would also have been chronically homeless. The project
would look like a single-family home but would provide housing for six unrelated individuals. The
premise behind the project is that living in single room occupancy units is often too isolating for
individuals who are chronically homeless and/or mentally ill and not necessarily the model that will
garner the most success. For some, having a more communal living situation may work better.
Canganelli noted that this project is not intended for everyone, but is intended to provide more
diversity in the continuum of services and helping options provided by Shelter House. Canganelli
noted that there is no permanent supportive housing for the homeless in this community, and this
would be a first step toward that. Canganelli noted that the proposed project would be intended for
single men only.
Richman asked what Canganelli believed would be the greatest impediment to the success of this
project, or the one thing she worries about for this project. Canganelli said that for this particular
project the greatest impediment is that as it is currently proposed it is very expensive. Canganelli
said that it is difficult to make the argument that for six unrelated individuals a budget of over
$500,000 is reasonable. This figure is the budget that has come out of the working group for this
project, and Canganelli said that she believes it is reasonable to expect that that budget will be
worked on to identify what is and is not realistic about it. Canganelli said that the commitment is to
the model and the delivery of services under that model, not to the budget or the type of housing
proposed in it. Canganelli said that if it is necessary to reduce costs and re-envision what that
housing will look like, then they will do that, rather than in any way compromise the opportunity to
provide housing under the proposed model.
Canganelli addressed staff concerns as to whether Shelter House has the ability to simultaneously
manage and implement two projects like this -the building of a rental project and the building of a
new shelter facility - Canganelli said that in all seriousness she does not know that the projects will
be simultaneous. She said that money still needs to be raised for both projects. There is a significant
amount of fundraising that needs to be done for the lodge model, as well as a number of grants that
need to be applied for. Canganelli said that there is also a significant amount of money still to be
raised for the new facility as its construction has been pushed back repeatedly by ongoing legal
issues. Canganelli said that while she does not know if the projects will be simultaneous, she does
know that Shelter House has access to a wealth of professional volunteers who will work hard to
make both projects work. Canganelli said that additional staff has been hired to help with the capital
campaign and program development.
Canganelli acknowledged that Shelter House does not have experience with rental housing. Drum
asked if it was not the case that Shelter House had been working very closely with an agency that did
have rental experience. Canganelli said that the project in Minneapolis has been very helpful and
very generous with their time, assisting from a number of angles.
Drum noted that the budget for construction was currently set at $500,000, and wondered what the
continuing and operating costs of the project would be once it was constructed. Canganelli said that
the staffing for the project was intended to be minimalistic, with no more than 10 hours per week of
direct staff oversight of clients and household. The idea is that the individuals in the program would
become engaged in ongoing supportive services through county case management and vocational
rehabilitation supports. Drum asked if the residency was intended to be permanent housing.
Canganelli responded that the intention is for the housing to be permanent for the residents, with no
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cap or time limit; however, it is not home ownership. Canganelli said this is one reason the housing
style is not for everyone. McMurray asked that if it was correct that once residents moved in they
could stay there indefinitely and Canganelli said that this was correct.
McKay asked if there was a reason that it was proposed to have the building LEED certified.
Canganelli said that this was the suggestion of the working group after the commitment to new
construction over rehabilitated housing was made. The architect, John Shaw, who has donated a
tremendous amount of time to the project suggested LEED certification. McKay clarified that it was
then a choice not a mandate, and Canganelli acknowledged that it was. McKay pointed out that 35%
was added to the costs of construction in making the project LEED certified. Canganelli said that she
had no problem taking the Commission's concerns back to the working group and informing them
that there may be things in the budget that need to be looked at. McKay clarified that he was very
much in favor of LEED as rule, but that it is very expensive.
Shaw asked what the name of the agency in Minneapolis was that had been assisting the Shelter
House. Canganelli replied that the director's name is John Trepp, but that the corporation's name
escaped her mind at that moment. She offered to provide the information to the Commission later.
Crane asked if the project would still be viable with only partial funding. Canganelli said that it
would. Richman asked if it made sense for Canganelli to take the budget back to the working group,
look for opportunities to reduce costs, and then get back to the Commission in a reasonable
timeframe. Canganelli said she would be happy to do so. Canganelli said she would submit a
revised proforma and budget to staff.
Drum asked again about the operations budget beyond the costs of staff. Canganelli said that other
than maintenance, utilities, and insurance that were included in the application documents, the
staffing is the primary expense.
McKay asked if the facility was designed with any kind of a security system. Canganelli said that it
was not a requirement and she did not think it was necessary. She explained that it is not used in the
other lodge model facilities that she is familiar with, and that all residents have 24-hour access to a
staff person. Canganelli said that the model is intended to replicate a single family residence as
much as possible. Hightshoe noted that residents' personal spaces such as bedrooms would be
lockable. McKay said that he was thinking more about undesirable guests rather than residents.
Canganelli said that part of the training that residents will go through in order to enter the program
will cover those issues. Canganelli said that not everyone will be appropriate for this housing; there
is an application and training process. She said that the house will set rules which the individuals
living in the house will have to follow, and that there is a whole governance system that will be
established.
There were no further questions for Canganelli and Richman invited the next applicant to speak.
The Housinf! Fellowship - CHDO Operatinf! Expenses: MarvAnn Dennis. Charlie Eastham
Maryann Dennis, Executive Director of The Housing Fellowship, and Charlie Eastham, President of
the Board of Trustees, represented The Housing Fellowship in their application for funds.
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Dennis said that the application before the Commission is for operating expenses for The Housing
Fellowship's Community Housing Development Organization (CHDO). Dennis said that their
request was for $50,000, but that they full understand that they are eligible only for 5% of the HOME
allocation that comes in for the community. At the time of the application, Dennis said, they were
not aware of how much that figure would be, so they requested their full need.
Dennis said that staff is absolutely correct in saying that as a CHDO their rental units have HOME
funds invested in them, and as a result rents are strictly controlled. Unlike private landlords, costs
cannot be passed onto tenants when there are cost overruns. Dennis said that this year utility
allowances have increased and the City of Iowa City recently passed a 191/2 % increase in rental
inspection fees, neither of which can be passed on to residents of their rental units. Dennis said these
changes are projected to reduce The Housing Fellowship's rent revenues by around $32,000 in 2009.
Dennis said the federal government sets the HOME rents and the utility allowances, and is somewhat
slow in catching up with market forces.
Dennis said she is aware that the Commission is concerned with how The Housing Fellowship plans
to increase its financial stability. Dennis said that this is something that she has been working on for
the entire 16 years she has been with The Housing Fellowship, and is something that their Board has
been working on the entire time as well. Dennis said that the market analysis is correct and that like
many non-profits, The Housing Fellowship works on a shoestring budget. She said that they would
appreciate the Commission's support as a CHDO that was specifically incorporated to provide
affordable housing in Johnson County.
Although The Housing Fellowship has a very active finance committee that monitors budgeted
expenses and revenues, The Housing Fellowship is working diligently at restructuring all oftheir
private debt, and hopes to get a lower interest rate. The Housing Fellowship is looking at tax-exempt
bond financing which would significantly reduce the interest rate on all of their private debt, which is
currently about $1.9 million; Dennis said this would help their financial picture a lot.
The biggest way that The Housing Fellowship can produce operational income is to produce housing
and to get developer's fees for tax-credit projects, Dennis said.
Richman asked how the losses of units in Coralville affected The Housing Fellowship's financial
picture. Dennis said that in frankness the losses had improved the financial picture. Richman asked
how this was so. Dennis said that the units in Coralville were an endeavor The Housing Fellowship
had entered into about five years ago, and was the only multi-family apartment building owned by
the group. Dennis said that the 16 three-bedroom units were housed in three multi-level buildings.
The Housing Fellowship found that these were not units their families wished to live in despite the
affordable rents. Dennis said it was almost as if the first thing the families did upon signing the lease
was try to find another place to live. The vacancy rate was high, the loan was big, and all utilities
were paid by The Housing Fellowship as well as snow removal, lawn care and trash removal
(unlike in their other single family units). Eastham said that since the property was purchased five
years ago the income never exceeded the expenses on the units. After the flood, of course, there was
no revenue and the expenses continued. Ultimately, the City of Coralville purchased the property
and The Housing Fellowship was able to retire their debt on it. Eastham noted that the sale price to
the City of Coralville did not increase their overall revenues, but was a wash.
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Dennis said that the work that The Housing Fellowship does really requires a pretty knowledgeable
staff that deserves to be compensated.
Richman said this sort of led to his next question. He asked if Dennis or Eastham could address what
had happened with their staffing and administration budget over the last couple of years.
Dennis said that it had grown. She noted that The Housing Fellowship had recently closed out a
project and received a developer fee for that. This allowed them to add a full-time staff person who
is a compliance specialist for all of their rental homes. Dennis said that The Housing Fellowship
would like to add a half-time hourly staff person to answer phones and file so that the office manager
can do other things. Eastham said that there is a great deal of compliance work associated with tax-
credit projects, which require more staff time than other rental housing.
Richman asked what The Housing Fellowship's plan was going forward for funding the new full-
time compliance specialist. Dennis said they plan on doing more tax-credit projects to bring in more
developer fees. Dennis said they have purchased software, a server, a maintenance vehicle (reducing
costs due to mileage reimbursements), all of which can be utilized for the next tax-credit project.
Dennis said that while they run on a shoestring, they must have a certain amount of staff.
Dennis said that the $30,000 The Housing Fellowship had received in 2008 had very much helped
the agency. Crane asked if that funding was for a part-time bookkeeper. Dennis said it had helped
support the salary of a full-time finance manager.
There were no further questions on this application.
The HousinJ! Fellowship - Rental: Marvann Dennis. Charlie Eastham
Dennis said this application was being made in the amount of $400,000 for site acquisition to be used
as part of an affordable rental tax-credit project which The Housing Fellowship plans to submit to the
Iowa Finance Authority (IF A) in October. The plan is to acquire townhome and duplex lots and to
build 20 rental units of two and three bedrooms. Dennis said that The Housing Fellowship's
preference is, as always, for scattered site housing.
Dennis said there is an unprecedented opportunity in Iowa for low-income housing tax-credits. Due
to recent natural disasters, the state is receiving an additional $33 million above its usual $6-7 million
allocation for tax credits. Dennis said that $3.3 million of those dollars must be set aside for a non-
profit tax credit. The market analysis is very clear that there is an overwhelming need for such
projects in this area, Dennis said. The Housing Fellowship thinks that because of its experience and
its local nature it can do the best job possible of establishing a low-income tax-credit in the city, but
what it needs is land. Dennis said that a recent opportunity for a prime piece of property was lost
because the financing was not in place. Eastham said that location was attractive because it was on
the west side of town.
Dennis said that The Housing Fellowship has the capacity to handle another low-income housing tax
credit. Dennis said that the strategic planning done by the Board of Trustees in 2008 established its
number one goal as The Housing Fellowship bringing an additional! 00 affordable rental homes to
Johnson County in the next five years.
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Dennis addressed staff concerns about The Housing Fellowship's concentration of property in Iowa
City. Dennis said that The Fellowship is very interested in a parcel in North Liberty, and hopes to
acquire it.
Richman asked if tax-credits can ever be used for acquisition and rehab as opposed to new
construction. Dennis said that it could, and that the Barry Court project was acquisition and rehab.
Richman asked if that was more attractive in the current market. Eastham said there are two major
pitfalls in trying to use tax-credits for rehab. The first is a ten-year rule that says a home has to be in
service ten years before a tax-credit is invested in it. The other pitfall is that in order to secure tax
credits you have to put a project together and you have to have site control for that project.
Practically speaking, Eastham said, it is very, very difficult to do on property's which are not already
owned by The Housing Fellowship. Eastham said changes in the tax credit rules may change to
alleviate those problems, however, for now it is very difficult to do in a scattered-site model such as
the one used by The Housing Fellowship. Dennis said The Housing Fellowship only owns single
family homes, townhomes, duplexes and a few condos.
Dennis advised the Commission to keep in mind that supporting The Housing Fellowship's efforts to
create affordable rental housing in Iowa City assures local management.
Eastham said that staff had questioned whether $30,000 was enough to buy a lot. He said that there
have been townhome lots on the market in the last two years for about $25,000 each. Eastham said
that he personally thinks $30,000 for townhome and duplex lots is a reasonable price.
Richman said that the terms requested by The Housing Fellowship were for a 20-year non-amortizing
balloon payment. Eastham added that it would be a 0% interest loan. Richman asked if there was a
capacity in the cash flow to potentially pay some of the loan back along the way. Eastham said there
was not that capacity if the rents were to remain low. Eastham said The Housing Fellowship could
pay the money back, but if they did so the tenants would pay that in rent. Richman said that the debt
ratio was about 1.39, and that the underwriters require a debt ration of between 1.3 and 1.4; as a
result it looks like there is about $10,000 above the bottom line each year. Richman asked if it was
feasible to use that as debt payment. Eastham replied that there are different interests at play: one
interest is to pay back money, another is to keep rents low, and another is the tax credit investors who
want to see a project that will be financially viable. Eastham said their tax-credit consultant has
advised them to keep a high income to debt ratio and have plenty of money to cover operating
expenses. Dennis said that the other thing to keep in mind is that by the time the tax-credit
application is submitted to IF A the numbers will more than likely have changed many times.
There were no further questions for the applicants.
Dolphin International LLC - Homeownership: Arvind Thakore
Thakore introduced himself as a consultant for Dolphin International LLC, the property formerly
known as Lakeside Manor.
Richman said that this project had been allocated $68,000 last year for down payment assistance for
prospective buyers.
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Crane asked what the price points were for the one and two bedroom units. Thakore said that a 1-
bedroom is $109,000, and a 2-bedroom is $114,000. Crane asked what the success in selling those
units has been. Thakore said that the first phase has totally sold out: 32 townhouses and 17 condos.
Shaw asked how the transitioning of residents from renters to homeowners has been going. Thakore
said that it has been going really well. He said that he has been teaching clients about the importance
of credit and how it works, and the importance of operating within the banking system. Shaw asked
how many units were still available. Thakore said 256 units are occupied and 142 are vacant. As
phases progress, the number of units will go down from 401 to 332.
Richman said that based on the cost of the units Thakore will need at least $10,000 in down-payment
assistance to get people into them. Richman said that it is pretty clear that HCDC cannot fund even a
majority of that need. He asked ifThakore was seeking other sources of funding for his down-
payment assistance program. Thakore joked that ifhe admitted he was looking for money from other
sources he did not want the Commission to cut him off. He said there are a lot of individuals in the
community with a lot of money that are interested in helping the program. Crane asked if all of last
year's funding was used for the down-payment assistance. Thakore said that it had and that there is
now a waiting list.
Richman noted that the deposit price required for applicants is relatively low compared to the
purchase price of the units. He wondered how many of those people would wind up just walking
away from their $100 deposit. Thakore said that the low deposit is because the people with whom he
is dealing do not have access to large deposits. Thakore said those giving $100 are serious buyers,
and will not walk away from the deal.
Crane asked when the units are scheduled to close. The units are to be finished by March 25,2009.
Around April 2nd the units will be inspected for their certificates of occupancy. Thakore said that by
April 15th units should start closing.
Thakore said that he wanted to share with the Commission that he had collaborated with Grant Wood
school on the method for naming streets in the development. The streets will be named for native
Iowans, including one named after long-time Grant Wood principal Paul Davis
Hart asked if the affordability term would be for five years as last year's was or ifit is actually for ten
years as one document indicates. Thakore and Hightshoe explained that the terms were actually the
same as last year.
There were no further questions for the applicant.
The Iowa Citv Housinl! Authoritv - TBRA: Steve Rados
Rackis said that he made a mistake in the application by listing the TBRA ending date as September
2010 rather than 2009. However, Rackis said, he received an e-mail today from Andy Johnson, the
ICHA's partner on the state TBRA grant and he has gotten an indication from the state that they
would perhaps entertain an extension to 2010. Rackis said that changes the funding request a little
bit. If the money was not used to protect the state TBRA people after all, then ICHA would simply
use the money as a way to extend into their waiting list and get housing assistance to people more
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quickly. The current waiting lists for Section 8 and Public Housing are approximately 12-14 months
from the date of application.
The use of the TBRA funds really allows the ICHA to leverage against their federal allocation for
Section 8. Rackis explained that HUD has the Section 8 program in a position where it has one foot
in a budget-based system and one foot in a unit-based system. Rackis explained that ICHA has 1,214
vouchers. ICHA cannot utilize more than 1,214 vouchers; however, HUD wants ICHA to utilize
100% of the allocated vouchers. HUD gives ICHA a certain amount of funding that does not
necessarily correspond with the costs of utilizing 1,214 vouchers. There is a balancing act that ICHA
must do. In order to increase their allocation from the federal government, ICHA must spend all of
its allocation, but not exceed 1,214 vouchers. Rackis said it is difficult with normal attrition to
maintain 100% participation due to the various factors at play: income levels rise and fall, program
compliance regulations, people going off program or being terminated from the program. The TBRA
dollars have allowed the ICHA to over-lease above their 100% in order to ensure maximum federal
dollars. People are transitioned on or off of TBRA as needed, making the program a little more
nimble. Every dollar of TBRA helps ICHA to leverage an additional dollar from the federal
government.
Rackis said that TBRA vouchers are used throughout the county. Rackis said that presently in the
Section 8 program, 71 % of the vouchers are used in Iowa City, 17% in Coralville, 6% in North
Liberty. Rackis said that when the number of state TBRA vouchers are taken into account -the frail,
elderly, disabled, chronically mentally ill-89% of the vouchers are in Iowa City. At a minimum,
65% of all TBRA vouchers will be used in Iowa City; targeting elderly and disabled populations just
increases that percentage.
Shaw asked for clarification on what Rackis was trying to correct. Rackis said that in his application
he had mistakenly stated that the end date of the state TBRA grant was September 2010, when in fact
it is September 2009, but that the state had subsequently seemed quite confident that an extension to
2010 could be granted. Shaw asked ifit was correct that $60,000 from FY09 has not been utilized.
Rackis said that was correct. He said that the second half of this application was if that money was
not needed to help bridge the state TBRA funds into the regular Section 8 voucher program, then
some additional TBRA funds could be coupled with that existing $60,000 and serve more families.
Rackis said that $60,000 would serve about 12 families over one year, so if those funds were
packaged together with additional funds then a larger pool of families could be served over one or
two years. Rackis said that the ICHA's regular allocation fund for Section 8 is about $6 million for
about 1,000 families over multiple years. Rackis said that the other two allocations discussed in the
staff report have been depleted and only the $60,000 remains.
Rackis said that the affordable housing study states that there is a need for affordable rental housing
in Iowa City and there are two ways to get there: 1) build more affordable units, or 2) provide rental
subsidy to make housing affordable. Rackis said ICHA offers the latter opportunity, and a number of
other applicants offer the former. HCDC is charged with finding the right combination of both
options to best serve the community.
Builders of Hove - Rental Housim!: Josh Weber
Josh Weber introduced himself as the Executive Director of Builders of Hope, and introduced the
program designer as Heather. Weber said the program has been in operation for three years, and
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serves individuals with chronic mental health disorders such as bipolar disorder and schizophrenia.
Weber said that they seek to create a program that really empowers the individuals they serve.
Weber said they currently own and operate two transitional living facilities in the community one
which is for individuals coming out of institutional or hospital settings, and a second that is more
independent, with more peer relationships and accountability. Weber said that these individuals are
thriving in their new found sense of community, which has been found to be empowering and
stabilizing.
The application takes the transitional housing model to the next level and will be for individuals
transitioning out of the second housing level. Typically these will be individuals who are on their
way to stabilizing in the community and who need less support. This particular project embraces a
commercial side. HUD has requested that 51 % of the residents be given the opportunity to apply for
jobs in the commercial side of the project. The commercial side will actually have a curriculum
component to help further stabilize the client for community living.
Richman asked the applicant to pause to allow for Commission questions. McMurray asked if
Weber was open to the idea of having more than two units. Weber said that they were and that they
had actually changed the scope of the project and brought revised design plans. The program
decided to take the project from two units to four units, utilizing the entire basement portion of the
project.
Hightshoe explained that this was a unique circumstance as the applicant and staff had to clarify
several questions with HUD. Hightshoe said that because they are a for-profit entity, they could not
apply for public facility money for the commercial portion of the property, nor were they eligible for
economic development funds. Hightshoe said that staff asked the applicant to submit their proforma
based only on the housing portion of the project (HOME requirement).
Hart asked what the curriculum for the program is. Weber said that it is still in the design phase, but
that the goal is to begin implementing it June 1 st. Essentially, the curriculum takes different aspects
of an individual's life and focuses on the different areas they need to stabilize, i.e., physical health,
mental/emotional state, the purposeful self, etc. Builders of Hope is developing the curriculum,
Weber explained. Shaw asked if it was based on a model or best practices. Weber said that it is
based somewhat on the Fairweather model, which has a 50% success rate for people stabilizing in the
community. Shaw asked ifit was similar then to the Shelter House project. Weber said it is but that
it also takes things one step in a different direction.
Richman asked if the same loan terms were being requested in the revised proforma. Weber said
they were. Crane asked how many individuals would be served. Weber said that four individuals
would be served.
McMurray asked if the housing was permanent or if there would be time limits placed on the
residents. Weber said that he was not sure about HUD guidelines were, but that he believed there
might be a two year limit.
Weber said he thinks that the project is unique because a curriculum based system has not yet been
implemented in the state of Iowa, and because they are a for-profit, Iowa City will receive $22,000 in
property taxes from them each year.
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Drum asked if the curriculum was for people living in the units or for others utilizing their services.
Weber said that both would have access to the curriculum. Richman asked if the project funded by
HCDC a couple of years ago was fully leased. Weber said that it is and that it has been a great
success. He encouraged Commissioners to take a tour or visit the website.
Crane asked if the lot had been selected. Weber said that it had, and it is just off Scott Boulevard.
There were no further questions for the applicant.
Isis Investments LLC - Rental: Yolanda Spears
Spears said that she was representing Isis Investment on behalf of Salome Rahiem, and that she was
the property manager and case manager for the properties.
Richman noted that Isis properties had been funded in the past. Hightshoe said that on the last
project funds that had been allocated had been utilized within a month. Spears said Isis also has
properties that were not funded through HCDC. Spears said she is currently managing six affordable
homes for Isis. Spears said she provided family support for the families, if they need help with
agencies or referrals for anything from community services to down payment for utilities. Spears
said they speak with residents about what it means to be a homeowner and helping residents
understand different terms and agreements.
Richman said that Isis was unique in that there is an option for the homeowner to buy the home.
Richman asked when the option kicks in and what happens to the affordability factor. Spears says
the option is available from the outset, and that Isis actually does a number of things to engage
families in the process of home-owning, such as inviting them to closings. Richman clarified that he
was actually asking when the client had the option to buy the home. Spears said that after the first
year the client has that option. Spears said that Rahiem is usually the person involved in that process.
Hightshoe clarified that with HOME funds only the tenant can buy the unit within its affordability
period. The homeowner (previous tenant) must sign a resale agreement and ensure an affordability
period of equal length to the original or may enter an agreement with a longer period of affordability.
Thus, if 5 years remaining, the resale agreement for the homeowner must require a 5-year period of
affordability or greater.
McMurray asked ifpart of the resident's rent is put aside for the possibility that they may wish to
purchase the unit. Spears said that question was beyond her field of knowledge. Hightshoe said she
did not believe it was set up that way. Spears said that they do let families know of any programs
that would be beneficial to them in that respect.
Shaw asked if a plan had been developed for establishing reserves for the program. Spears said that
this was something she could speak with Rahiem about and report back to the Commission. Richman
asked what the history has been of people actually buying the homes they had been renting. Spears
said that they had not yet had families in a position to buy their home, but that several were working
on getting to that place.
Shaw asked if any of the families had signed up for the ICHA's Family Self-Sufficiency (FSS)
program. Spears said that they had not, but that this was because a number of them were already
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working toward specific goals. The families they've rented to have been very self-sufficient in their
own way, know their way around the area, and are very happy with their housing choices.
Hightshoe noted that the intended income (upon application) for participants is under 30% of the
median income, so homeownership may be a long way off for some of these families. McMurray
asked if all of the homes were in Iowa City. Spears said that one home is in Oxford, and the rest are
in Iowa City.
There were no further questions from the Commission.
Anchor Housinf! of Saddlebrook - Rental Housinf!: Dan Tonnesen. Craie: Sculley
Tonnesen said that he and his partner, Craig Sculley, have their home office in Rockford, Illinois.
The project they are proposing is Saddlebrook, and consists of 50 units of primarily single-family
dwellings.
Tonnesen said that it is correct that they became aware of the timing deadline the night before the
due date and that as a result the application was not in a complete format. Tonnesen noted that the
project is seeking $250,000, or 2% of their total project. The funds would be leveraging $50 for
every $1 funded by HCDC.
Tonnesen said the project would be tax-credit financed properties with a 20-year period of
affordability. He asked the Commission to ask any questions they might have to ensure there was
adequate time. Shaw asked if the applicant already had the land. Tonnesen replied that they were
close to signing site control. The site is identified and the final terms are being worked out; they
anticipate securing site control by the end of next week.
Crane asked ifit was correct that the proposal was for 50 homes by October 2010. Crane noted that
they had done a similar project in Illinois and asked if the timeframe for completion had been similar.
Tonnesen said that it had been, and that 12 months is a reasonable timeframe considering that all of
the infrastructure must be built.
Richman noted that a 20-year affordability period had been proposed, and asked if a longer one
would be considered. The applicant said that they probably would not.
Shaw noted that the applicant's home office is in Rockford, Illinois, and asked iflocal contractors are
used to do the work or if contractors from outside the area were used. Tonnesen said that they have
an affiliated entity with the same principles that is a general contractor. Tonnesen said that local sub-
contractors are used to do the work. Similarly, there would be on-site property management.
Richman asked the applicant to talk a little bit about the overall budget. Tonnesen said the land costs
$200,000, the infrastructure costs $1 million and the total budget is $13 million. Tonnesen said that
their net developer fee would be about $1 million. He said that he realized this sounded like a big
fee, but that given the guarantees that they were personally signing, it is well within industry
standards and all aspects of the underwriting and operating budget are within IFA guidelines.
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Richman said that $200,000 for land acquisition makes each lot cost about $4,000 which seems
astonishingly low for this community. He asked Tonnesen to explain. Tonnesen said that the per-lot
cost was probably closer to $30,000 once infrastructure and profit was added in.
Long said that the plat had been approved by the City already and that the property was zoned and
ready to go. Tonnesen said that one of the strengths of the proposal that he would like the
Commission to consider is that as far as the zoning, site control and funding, the deal is as good as
done. He said that he and his partner have done ten tax-credits and have been doing these projects
for twenty years. Management is in place, and while they do make mistakes from time to time, they
fix their mistakes quickly, which they believe is the true mark of a good landlord.
Shaw asked if the streets would be connected to other communities. The applicant responded that the
north and east sides of the project would have street connectivity. There were no further questions for
the applicant.
Bill Witti!! - Rental Housin!!: Bill Wittie
Wittig said he was trying to help sixteen residents have a nicer place to live. Wittig said that he has
owned the property since 1997 and has systematically worked to rid the property of its bad history
with the law and bad tenants. Wittig said he had employed and fired three different property
managers, and four years ago took over direct control of the operation. Wittig said he had been
working diligently with STAR and Shelter House over the last four years. Wittig said that this
property accepts Section 8 rental vouchers. Wittig said that he has had both successes and failures
with this property.
Wittig said that one difficulty is in keeping up with the rental permit. He said there are things now
on the property that need repair that are beyond the means of the property's cash flow. The debt
structure for the property is reasonable for its first mortgage. However, a new roof project severely
limited cash flow for an extended period of time in recent years. Wittig said there are exterior repairs
that the City would like done, but he is concerned that that would be a band-aid approach. Wittig
said he has looked at a more long-range plan of getting new windows and new vinyl siding put on to
finish out the exterior. Wittig said that there is a $24,000 electrical code issue included in the
application so that a sub-panel could be present in each room. Drum asked if the City was satisfied
with the safety of the electrical as it is presently. Wittig said they had not pushed the issue but that
he believed inspectors would be more comfortable if it were fixed. Wittig said there are currently no
extension cords allowed.
Shaw asked if there were 16 single-occupancy rooms in the house. Wittig said that was correct, and
briefly explained the layout of the house. Wittig said that he had to represent a 15% vacancy rate on
the application because that is what his historical data shows; however, if the property is improved,
Wittig said, it would be hopeful that the rate would be closer to 5%. Shaw asked who was
responsible for the utility costs. Wittig said that he pays them all.
McKay asked if the units were rented on a month to month basis. Wittig said that was the case, and
that there are no formal leases. McKay asked for clarification on the rent schedule and it's built in
late fees/rebates. Wittig said that the rent is now $375 per month, with a $75 rebate if the rent is paid
on the first of the month, a $50 rebate if paid by the 5th of the month, a $25 rebate if paid by the lOth
of the month, and no rebate if paid after that.
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
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Richman asked if Wittig would consider a longer period of affordability than the 20 years requested
in the application. Wittig joked that he had turned 60 this summer so there was no reason not to. He
said that the property is not a money-maker, and is his way of giving back to the community.
Richman said that the Commission would need a conforming proforma. Wittig said he had now
turned two different ones in to show the two different vacancy rates. Hightshoe said that the
maximum allowable rents and option of fees would have to be looked at and discussed and possibly
changed to be in compliance with HOME rules. Wittig said he was really below that figure and that
could be worked out.
There were no further questions for the applicant.
A fifteen minute break was taken at this time.
Shelter House - New Construction: Crissv Caneanelli
Canganelli explained that this request was for the new facility for Shelter House. This is a 70 bed
facility: 56 beds for short-term emergency use, and 14 beds designated for homeless veterans who
could use the facility for up to two years as their beds would be considered transitional beds.
The budget for the project was discerned by staff as being somewhat high. However, Canganelli
said, the budget was a collaborative effort that was reached through the work of Tom Werderitsch,
Dwight Doberstein and Victor Amaroso. There was a lot of professional input in this budget.
Canganelli noted that the budget has increased because the project has gone on for a number of years.
There is a cost issue with the Davis-Bacon standards applying to the project, something which is now
accounted for in the budget. Canganelli said the project is also trying to account for the ongoing
legal and fundraising delays, so allowances have been built into the budget.
Canganelli addressed staffs question concerning the increased operational costs that could be
associated with increased shelter capacity. Canganelli said that the increase is not of 41 beds, as 14
of the beds are transitional beds for homeless veterans; beds which are eligible for per diem and
service funds from the V A. Canganelli said this shows there is new funding available once the
shelter becomes operational. Canganelli said Shelter House is in initial discussions with UIHC for
beds that would be occupied by patients discharged from the hospital. Shelter House is hoping for
increased investment from the United Way, and continues to do fundraising. A $700,000 endowment
was established for supportive services (a new funding stream) as well as a $100,000 endowment for
operating, which must be significantly increased in a short period of time.
Richman noted that this was a fairly large funding request. He asked what Shelter House's options
were for filling in holes in the budget if HCDC could not fund the full request. Canganelli said the
Capital Campaign Committee is working on raising the funds and are moving forward with
additional grant writing. Canganelli said that it would far exceed their dreams to have $300,000 in
funds awarded as she knows CDBG has already invested $230,000 in the project. Canganelli said
they simply felt it was necessary to come back and request funding because this project has been put
off for over four years due to legal obstacles. Canganelli said that Shelter House has persevered and
made good faith progress toward moving forward with the support of a tremendous amount of
people. Canganelli said one result of the legal battles is that they have been essentially dropped in
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
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the middle of an entirely different economic environment than was faced four years ago. Canganelli
feels that momentum and progress is necessary at this time and that is why Shelter House is coming
back before the Commission.
Richman asked if there was a minimum amount that makes the project work. Canganelli said the
Board is quite conservative fiscally and wants pledges for $3.5 million before breaking ground. A
$300,000 commitment from CDBO would put Shelter House at just under $2 million, with
approximately $1.5 remaining to fundraise.
Drum said that he should probably know, but asked what legal issues had been facing the Shelter
House. Canganelli said that the legal issues focused on the use of the land. In 2004, Shelter House
was awarded a special exception in order to build a shelter on the land. Interested partieslimpacted
neighbors appealed to the Board of Adjustment. Canganelli said that what has ensued has been a
timeline of over four years of litigation culminating in an Iowa Supreme Court decision in Shelter
House's favor. Canganelli said there are now residual lawsuits, but they do not in and of themselves
create an impediment to proceeding with construction.
McMurray asked if one of the major construction projects being taken on by Shelter House had
priority over the other. Canganelli said that they see the projects as separate and as building off of
one another in reinforcing the organization as a whole. Canganelli said that a new facility will not
only provide better living quarters but will also help to provide better services and skills training.
The other project will allow Shelter House to take their services to the next level.
NCJC - Facilitv Rehabilitation: Brian Lorine
Loring said that the actual request for funding is for $37,600, not the $26,615 listed in the
application. Hightshoe said that she would have to confirm with legal staff if HCDC could consider
an amount higher than what was identified on the application. Loring apologized, saying that he had
been out of the office for surgery just prior to completing the application and had somehow messed
up the numbers for the budget when he submitted the form.
Loring said that some of the things on this year's request are the same items that were on last year's
request. He said that in terms of priorities they would really like to get to replace the deck at the
Broadway Street location. Loring said that there are two classrooms on the main level of the
building and off the classrooms is the deck, which when replaced and slightly extended will become
very usable space.
Loring said that John Rothman Construction provided the estimates for the projects. He said that the
agency does have a capital reserve budget. There has been a bit of difficulty this year with childcare
reimbursements and the agency is running a bit of a deficit at this time; however there is enough in
capital reserves to handle the match.
Long said that he would ask the City Attorney's office whether there was any leeway in changing the
application amounts, but that they were generally pretty strict with that kind of thing.
CMHC - Facilitv Rehabilitation: Sherri Zastrow
Zastrow said the agency is located in four old buildings on the comers of Van Buren and College
Streets. The application requests funding to replace the asphalt in the alley between the "club
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
FEBRUARY 19,2009
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house," where folks with chronic mental illness can go for socialization and skill building, and the
psychiatry/therapy buildings. Zastrow said the agency sees all ages from children to the elderly and
has a lot of traffic in and out. About 2,200 clients are seen each year, which rounds to about 22,000
face to face visits, to give an idea of the amount of foot traffic.
Zastrow said that the alley has a lot of trip hazards, especially in the winter as the uneven surface
makes plowing difficult. Zastrow said they wish to replace the alleyway and part of the driveway
behind 507 E. College Street. Zastrow explained that the alleyways are the responsibility of the
property owner even though they are public thoroughfares for anyone to drive on.
Zastrow said that the other project is to replace windows in the 125 year old comer building to help
with drafts that have resulted from the uneven settling of the building.
Shaw asked if the two projects were listed in priority order and Zastrow said that they were. Zastrow
said she was very concerned that someone would fall on the uneven alleyway surface.
There were no further questions for the applicant.
First Mennonite Church - Home Ties Addition: Diane Funk
Diane Funk introduced herself as representing First Mennonite Church and introduced the Director of
Home Ties daycare as Jan.
Funk said that this is an addition to add 1,600 square feet to the church in order to provide a large
group room, storage area, kitchen and handicap accessible bathrooms. The addition is necessary
because the church has grown dramatically and needs additional space.
Funk said that the church houses Home Ties Daycare in its basement free of charge, a donation
equivalent to more than $56,000 per year when rent, utilities, building maintenance, janitorial
services and paper products are taken into account. The church community has already committed
$160,000 to the project, for a building that will be used entirely by the daycare.
Richman asked how this addition will affect the organization's budget. Funk said there will be no
increased costs to the daycare, only the church. Funk said the church is committed to taking these
additional costs on.
The Director of Home Ties informed the Commission that Home Ties provides up to three months of
free childcare for homeless and low-income families, and is the only center of their kind in the state.
She said they provide childcare during the day so that parents can go out and find housing,
employment, go to court, school or other appointments. The families receive a boost because their
children are being appropriately cared for, have age-appropriate programming, nutritious meals and
well-qualified teachers. This is one way Home Ties helps families get on their feet and on their way
to self-sufficiency.
Drum said that he understood there was a security element to the needs in the application. Funk said
that the doors are locked and the doorbell has to be rung. This sometimes results in doors being left
unlocked by church members using the church because it is an inconvenience to them as they go in
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
FEBRUARY 19,2009
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and out of the building. Home Ties collaborates with MECCA and VA Y, and receives children from
DVIP and Shelter House.
Hightshoe noted that Home Ties is actually run by 4 C's (Community Coordinated Child Care, and
not by the church (no religious affiliation). The Director of Home Ties quickly pointed out that
nevertheless Home Ties would not exist without the church's support, which is where the program
began in 1995, and has been housed ever since.
There were no further questions for the applicant.
MECCA - Facilitv Rehabilitation: Ron Ben!
Berg said that MECCA is requesting a package of three separate projects: 1) upgrading the keypad
system currently in place for the transitional housing units to a card swipe system and a door
intercom system, 2) a closed-circuit TV system to monitor the entrance to the transitional housing
units, 3) upgrading the security sensor system on the windows of the residential treatment facility.
Berg said that all cost estimates came from Johnson Controls, the current vendor that MECCA uses
for security needs. Berg said that MECCA is aware that the federal labor provisions do apply. He
said MECCA is constantly scouring for grant opportunities and would be willing to contribute from
its general operating funds.
McKay asked if it was possible to separate the card swipe system form the video monitoring system.
Berg said they are currently separate.
Drum asked if other vendors were consulted. Berg said they had not yet as this vendor has been
reliable and is typically pretty close to the bids of other vendors. Shaw asked if the requests were in
priority order, and Berg said they were.
McKay said he had intended to ask if the card access and the door intercom could be separated from
one another, getting by with just the card swipe system. Berg said that doing so would not achieve
the security objective.
McMurray asked what the window tampering involved. Berg said currently there is a sensor on the
outside of the window that is surface mounted whose function can be interrupted in ingenious ways.
This has sometimes led to prohibited items entering the facility.
There were no further questions for the applicant.
DVIP - Facilitv Rehabilitation: Kristie Doser
Doser said that DVIP is in its 16th year at its current location and has served over 5,000 women and
children. Doser said that DVIP has looked to HCDC for various renovations and repairs for the
building. Doser said that the 16-year old air conditioners are hitting the end of their lifespan, and
will likely fail completely if not replaced sometime in the next two years. Doser said that the air
conditioners really struggled last year, and that they expect to have to replace a minimum of two this
year. Doser joked that it is unwise to take air conditioning away from people in crisis.
Doser said that DVIP will be doing fundraising for this project. She noted that 42% of clients come
from Iowa City and 67% of them come from Johnson County.
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
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Doser said that DVIP allocates a minimum of $20,000 annually for capital reserves. Doser said that
they understood that over the last four or five years DVIP has requested smaller items, but that
CBDG is one of the few funding sources for this type of funding.
DVIP is aware of the Davis-Bacon requirements and it is an important part of how they have done
such work in the past. McMurray asked if each unit was about $3,000. Doser explained that unit
prices are based on the layout of the building and how the ductwork was set up. Different sized units
are required for different parts of the building. Doser said that there are two different bids within the
application: one has a longer warranty period and is therefore more expensive.
Richman asked how old the current air conditioning units are. Doser said they are original to the
building, 16 years. Drum noted that last year's allocation was for a security fence. He said that he
noticed that not only is the new fence not up, but the old one is even worse and he wondered why
that was not taken care of. Doser said that the building flooded in July, and by the time they returned
to the space it was late October. Because of the weather and the fact that the children would not be
using it over the winter, they put it offuntil spring. Doser said that she appreciated Drum asking that
as she would hate for that to have been a concern that had been left unaddressed.
There were no further questions for the applicant.
Arc of Southeast Iowa - Facilitv Rehabilitation: Bill Reae:an
Regan said that the application request is for new floor covering for the upper level of the building.
Reagan said that Arc has had experience implementing Davis-Bacon, and would be able to proceed
with partial funding. Reagan said that the upper level is divided into an east wing of primarily
offices and a west wing of higher client and community traffic. Reagan said that with partial funding
Arc would just do the west wing. Drum said it seemed to him that the east carpet was in far worse
shape than the west side. Reagan said that was correct, but that because that was where the offices
were, they would replace the side that had more programming.
There were no further questions for the applicant.
United Action for Youth - Facility Rehabilitation: Jim Swaim
Jim Swaim introduced himself as the director of VA y. Swaim said all three properties owned by
VA Y on Iowa A venue were supported by CBDG funds.
Swaim said the application is to fund repairs at 422 Iowa A venue. A community volunteer group has
offered to paint the building if VA Y can supply the paint. Estimates for the paint were derived from
two paint contractors.
McMurray asked if lead would be a concern with the paint conditions. Hightshoe said that is only a
concern for residential properties. Swaim said that all lead paint had been removed when the
property was acquired.
Swaim said that the steps also need to be replaced, and a contractor had given him a verbal estimate
for that. Swaim said that when windows at their property on 410 Iowa Avenue were replaced, VA Y
was required to use windows that fit the State Historic Preservation Office guidelines. At that time,
HOUSING AND COMMUNITY DEVELOPMENT COMMISSION
FEBRUARY 19,2009
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Page 24 of 24
VA Y used Adams Architectural Windows out of Eldridge. To derive the current estimate, the same
pricing data was used.
Swaim said that quite honestly he is embarrassed by that building. He said after the floods of 1993-
1994, VA Y was eligible for a group of dislocated workers to do work on the building through a
federally funded grant. He said the work was never done very well, and he is not exactly proud of its
appearance.
Swaim said that funds had been set aside for some of this work, but at Thanksgiving they had a
catastrophic failure of their furnace and air conditioning units.
There were no further questions for the applicant.
Hightshoe noted that she would e-mail Commissioners the ranking and allocation forms in excel
format on February 20th. They are due by Feb. 27. If a Commissioner prefers a paper copy, they
need just let her know.
There were no further questions for the applicant.
ADJOURNMENT:
Shaw motioned to adjourn. Crane seconded. The motion passed 8-0 (Douglas absent).
The meeting was adjourned at 9: 15 p.m.
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CITY OF IOWA CITY
410 E. Washington Street
Iowa City, Iowa 52240-1826
(319) 356-5022
(319) 887-6213 (FAX)
www.icgov.org/humanrights
lOW A CITY HUMAN RIGHTS COMMISSION
HUMAN RIGHTS - A HUMAN ISSUE
March 1, 2009
Dear Commission/Board Member:
In August 2007, the City of Iowa City joined the Partnership for working towards an
Inclusive Community. The Partnership is an effort led by the National League of Cities
to unite city leaders who are working to support such issues as racial justice and
inclusionary zoning as well as those who celebrate the diversity of race, religions and
cultures in order to build communities that are accepting and representative of the
differences among its citizens. Iowa City joins a growing number of cities across the
nation in this partnership to build inclusive communities through committed efforts to
increase citizen participation and engagement, while promoting equal opportunity and
fairness.
As part of this initiative, the City is reviewing its policies and procedures to determine if
any of these create barriers to inclusiveness. One area of particular interest is whether
the City's current Commissions and Boards reflect the diverse demographics of Iowa
City and whether or not equal access is given to all to serve on City Commissions or
Boards. We are committed to developing strategies to encourage civil involvement by all
in our Community. In the past, the City has not tracked such information. Therefore,
attached is a voluntarv survey that we hope you will feel comfortable in completing and
returning to me. Please note: YOUR COOPERATION IS VOLUNTARY AND WILL BE
USED FOR STATISTICAL PURPOSES ONLY.
Sincerely,
Stefanie Bowers
Human Rights Coordinator
City of Iowa City
Enclosure
VOLUNTARY SURVEY-
FOR CITY OF IOWA CITY STATISTICS ONLY
Data Record
The purpose of this Data Record is to allow the City of Iowa City to track the demographics
of residents who currently serve on City Boards and Commissions. The completion of the
Data Record is optional. All Data Records are kept in a Confidential File in the Human
Rights Department.
Date I
Age I I Disability I I
Gender I I National Origin I I
Sexual Orientation I I Income I I
Religion I I Race, Color, or Ethnicity I I
In order to assist our recruitment process, please select below how you became aware of this Board/Commission:
o Advertisement
Name of Publication
o City Employee o Clerk's Office
o Internet o Other
Name of Web site
W~CIVRIGHT'Board-CommissionApp ~a.doc
2/9109
12/04
POLICY FOR ALLOCATION OF UNCOMMITTED CDSG AND HOME FUNDS
(Funds that become available to the program after initial allocation either through
windfall income, project cancellation or additional funds provided by HUD.)
The Housing and Community Oevelopment Commission (HCOC) will determine if:
1. Existing projects that did not receive full funding will be considered.
2. Projects that had submitted applications but did not receive any COBG or HOME funding
will be considered.
3. New proposals will be considered.
4. Funds will go to the Contingency Fund.
If existing and/or unfunded projects are the only projects that will be considered, the
applicants will be notified of the availability of funds and asked to provide a written request
for funds and how they will be utilized to fund their original request.
If new projects are being considered, HCOC must publish notice of funding availability and
proceed with a formal application process.
If funds are allocated to the Contingency Fund, no formal process is necessary other than
the City Council approval.
In all cases the public must be given the opportunity for comment on the proposed use
of funds, either at a HCDC meeting or a Council meeting.
(See Contingency Fund Use Policy for use of these funds)
CONTINGENCY FUND USE POLICY
The Contingency Fund can be utilized for the following purposes:
a. Cost overruns of existing COBG and HOME projects. Cost overruns of greater than
$50,000 or 25% of initial project budget must be approved for eligibility by HCOC.
b. Funding for new projects that are considered an emergency or urgent need.
Applications for new projects for the use of Contingency Funds must be provided to the HCOC
at its regularly scheduled monthly meeting. HCOC will evaluate the application for compliance
with emergency or urgent need, eligibility for COBG and HOME funds and availability of
Contingency Funds. Projects recommended to be funded under Contingency Funds must then
be formally approved by the City Council after the public has had opportunity to comment.
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February 4,2009
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CITY OF IOWA CITY
The Honorable Charles Grassley
United States Senate
135 Hart Senate Office Building
Washington, DC 20510
410 East Washington Street
Iowa City, Iowa 52240-1826
(319) 356-5000
(319) 356-5009 FAX
www.icgov.org
RE: Community Development Block Grant & HOME Investment Partnerships Program
Dear Senator Grassley:
It was good to see you this week and talk to you about projects in the Iowa City-Cedar Rapids
Corridor. We have appreciated your advocacy for Iowa's flood-affected communities-you are
helping our citizens rebuild their lives in the wake of the worst natural disaster that we have seen
in Iowa City.
I am writing to you in connection with S.l, the American Recovery and Reinvestment Act of
2009 to urge you to include at least $1 billion in Community Development Block Grant (CDBG)
funds in S . I-the same amount that is contained in the House version of the recovery bill. Our
community has eligible, ready-to-go CDBG projects that could be underway within three to six
months. Funding ready-to-go projects with CDBG will create jobs and directly benefit lower
income persons and their neighborhoods. CDBG's delivery system has been used in times of
disaster and uncertainty to allocate much needed funding to communities quickly and effectively.
Our community has had great success in its use of CDBG funding for job creation and economic
development.
Additionally, I strongly urge you to retain the $2.25 billion for the HOME Investment
Partnerships Program that is included in the Senate Appropriations Committee-approved version
of S.l. HOME is a vital program to expand the supply of affordable single-family and
multifamily housing for lower income households in Iowa City. Our community desperately
needs these funds to respond to the declining housing market, spiraling economy, and the
challenges that we face in having enough adequate affordable housing in our community.
HOME funds allocated directly to our entitlement cities allow each city to determine how best to
meet our residents needs through a combination of home buyer assistance, rental and transitional
housing, tenant based rent assistance and owner-occupied housing rehabilitation programs.
For further questions, please contact Steve Long at 319.356.5230 or by email at
steve.long@iowa-city.org.
Sincerely,
rilJ.6a+
Regenia Bailey
Mayor
February 4, 2009
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CITY OF IOWA CITY
The Honorable Tom Harkin
United States Senate
731 Hart Senate Office Building
Washington, DC 20510
410 East Washington Street
Iowa City, Iowa 52240.1826
(319) 356.5000
(319) 356.5009 FAX
www.icgov.org
RE: Community Development Block Grant & HOME Investment Partnerships Program
Dear Senator Harkin:
I am writing to you in connection with S.l, the American Recovery and Reinvestment Act of
2009 to urge you to include at least $1 billion in Community Development Block Grant (CDBG)
funds in S.l-the same amount that is contained in the House version of the recovery bill. Our
community has eligible, ready-to-go CDBG projects that could be underway within three to six
months. Funding ready-to-go projects with CDBG will create jobs and directly benefit lower
income persons and their neighborhoods. CDBG's delivery system has been used in times of
disaster and uncertainty to allocate much needed funding to communities quickly and effectively.
Our community has had great success in its use of CDBG funding for job creation and economic
development.
Additionally, I strongly urge you to retain the $2.25 billion for the HOME Investment
Partnerships Program that is included in the Senate Appropriations Committee-approved version
of S.l. HOME is a vital program to expand the supply of affordable single-family and
multifamily housing for lower income households in Iowa City. Our community desperately
needs these funds to respond to the declining housing market, spiraling economy, and the
challenges that we face in having enough adequate affordable housing in our community.
HOME funds allocated directly to our entitlement cities allow each city to determine how best to
meet our residents needs through a combination of homebuyer assistance, rental and transitional
housing, tenant based rent assistance and owner-occupied housing rehabilitation programs.
For further questions, please contact Steve Long at 319.356.5230 or by email at
steve.long@iowa-city.org.
Sincerely,
ri2).~
Regenia Bailey
Mayor