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HomeMy WebLinkAbout01-19-2012 Housing & Community Development CommissionAGENDA HOUSING AND COMMUNITY DEVELOPMENT COMMISSION IOWA CITY PUBLIC LIBRARY, MEETING ROOM A 123 S. LINN STREET THURSDAY, JANUARY 19, 2012 6:30 P.M. 1. Call Meeting to Order 2. Approval of the December 15, 2012 Minutes 3. Public Comment of Items Not on the Agenda 4. Staff /Commission Comment 5. Review of the FY13 Allocation Process and Proforma 6. Discussion Regarding FY13 Aid to Agencies Funding Requests • Discuss Aid to Agencies Applications • Develop Aid to Agencies Budget Recommendation to Council 7. Monitoring Reports • Successful Living — Rental Rehab & Vehicle (Drum) • Shelter House — Rental Rehab & Operations (Drum) • Iowa City Housing Authority — Tenant Based Rent Assistance (Drum) 8. Adjournment CITY OF IOWA CITY MEMORANDUM Date: January 12, 2012 To: Housing and Community Development Commission From: Community Development Staff Re: January 19, 2012 HCDC Meeting The following is a short description of the January agenda items. If you have any questions about the agenda or if you are unable to attend the meeting, please contact Tracy Hightshoe at 356 -5244 or by email at tracy- hightshoe @iowa - city.org as soon as possible. Review of the FY13 Allocation Process and Proforma Basics Staff will review the allocation cycle for the benefit of the current and new commission members. Staff will also provide a brief overview of the proforma sheet included in the housing application for rental housing projects. Please review the packet of information regarding housing project finance. This information will give you the basics in understanding the spreadsheet and rental housing budgets. Staff will also be discussing conflict of interest issues as they relate to the allocation process. FY13 Aid to Agencies Funding Requests (Please bring your FY13 Aid to Agencies Funding Applications) At this meeting, HCDC will formulate a budget recommendation to the City Council. The Housing Trust Fund of Johnson County (HTF) received funds through the City's Aid to Agencies budget in prior years. In a request to the City Manager, HTF requested $8,000. Their funding request is in the packet for your review. All Aid to Agency requests will be considered at our January meeting. In FY12, HTF received $8,000 from this fund. Monitoring reports Successful Living — Rental Rehab & Vehicle (Drum) Shelter House — Rental Rehab & Operations (Drum) Iowa City Housing Authority — Tenant Based Rent Assistance (Drum) NOTE; The January 19, 2012 HCDC meeting will be held at the Iowa City Public Library, Meeting Room A at 6:30 PM, y N tkO Q N 4J 'v C GJ Q O M } LL v- O E 3 N O H .E O V i E CL O 4J GJ D E O V V C m to C •O V 3 O C 4J E O v W V V N O O O O O O N Q O O O O N O O O O O dJ O O O O O O O O O O O 0 O O O M O N 00 0 Ln M q:* Ln Ln i00 NN 1.0 rr-i w' to LL a-+ � N 0 00 0 00 0 0 0 0 0 0 0 0 0 ) Q O O O O O O O a 0 Ln 0 O o Z m IA- I* in Ln i/- Ln i/� V)- tn -tn V/ - V). k.0 in. r 'I Vn cn V/ to V, LL 0 O C � ON v O N O w O N m U C m i to C qp U O �- u O i a O V v N Ln pf ° J� to i Q� 0 m �- m .v, E � V to L Q V 00 '� E "a N 4J W to O O O v v O ��� t� Q oo V V 0 LU LL LL LL_ 2 2 Z a oC Ln Qi N 00 rl Q1 M . � u m R d0 C 3 LL. M vi C � _ L m wl � m C7 D — V +� n O � dam` O LOA N Q1 t0 QN 4A N v ft.... v FY13 AID TO AGENCIES HCDC REVIEW � r i �t �:rlll�r �'► "''IM' Qo r �q�i � CITY OF IOWA CITY 4Cs Community Coordinated Child Care $2,000 Request 1. CITY STEPS priority level? (High = 10, Medium = 6, Low = 2 points) 10 2. Level of low- to moderate- income persons assisted? (0- 30 % =10, 31- 50 % =6, 61 -80 % =2 points) See Narrative 1. Please list the counties and municipalities that you serve. Is there a state or federal organization that mandates your service area? 4Cs serves Johnson and Washington Counties. There is no state or federal organization that mandates our service area. 2. Where are your clients /consumers coming from? Please provide a breakdown by municipality /community or county (if from rural area). e.g. Iowa City, West Branch, rural Iowa County, etc... 4Cs Home Ties Emergency Child Care Center: This fiscal year to date we have served 36 children. Iowa City 94% Coralville 6% (Note: 17% of children served in Iowa City were staying in Shelter House, Domestic Violence Intervention Project or MECCA.) 4Cs provides consultations and support to child care programs in our community to promote the quality of child care. Home -based child care programs: 118 programs Iowa City 48% Coralville 20% North Liberty 22% Other 10% (Hills, Oxford, Solon, Tiffin & Lone Tree) Child Care Centers 71 programs Iowa City 69% Coralville 11% North Liberty 14% Other 11% (Solon, Tiffin, Swisher) 3. Please provide a breakdown of the income of your clients /consumers by the following categories, if possible. a. 0 -30% 94% of children served at Home Ties b. 31 -50% c. 51 -80% d. >81% 6% of children served at Home Ties We do not have a breakdown of income for home or center based child care programs. All family child care providers, combining registered and unregistered, have a median annual income of $19,760 — reported in Building Iowa's Child Care Workforce for the 21" Century: Results of the Center and Family Child Care Provider Wage Study: A report prepared for Iowa workforce Development by Iowa State University Dept of Statistics, March 2010.) 4. Briefly describe efforts to secure funding from other entities, municipalities, counties, etc... Home Ties Child Care Center receives funding from Johnson County Social Services and from Early Childhood Iowa - Johnson County Area (Empowerment). Support for Child Care Provider Services is received from Early Childhood Iowa — Johnson County Area and the University of Iowa. The agency also receives general funding from Johnson County Social Services and United Way of Johnson County. 4Cs mission is to improve the quality of child care in Johnson County. 4Cs believes that good quality child care is part of the infrastructure of a vibrant, sustainable community that determines the quality of life to residents. In the past year there have been great changes to the Iowa Early Childhood System. Major issues affecting the child care community are: • Registration for home -based programs is now completed in Des Moines. • Concerns about home -based child care programs are referred to Linn County. • Child Care Assistance: Approval is completed in Linn County and payment issues are dealt with in Des Moines. • DHS has introduced a state -wide training registry that requires internet access. • Resource & Referral Services are provided by a Davenport regional office serving twenty counties. 4Cs is currently the only locally- situated agency that is able to provide support to local child care programs. Child care is a reality for the majority of families in our community (69 %). These early childhood experiences impact children's later success at school and in life. Child care providers and parents can not do this work alone, infrastructure and support at the community level is necessary to provide children with the early care necessary to keep them safe and learning. Stable, good quality child care also impacts the productivity of parents in the workforce as it provides the peace of mind to focus on work. FY13 AID TO AGENCIES HCDC REVIEW CITY OF IOWA CITY Big Brothers Big Sisters of Johnson County $35,000 Request 1. CITY STEPS priority level? (High = 10, Medium = 6, Low = 2 points) 10 2. Level of low- to moderate- income persons assisted? (0- 30 % =10, 31- 50 % =6, 61 -80 % =2 points) 6 1. Please list the counties and municipalities that you serve. Is there a state or federal organization that mandates your service area? We currently serve Johnson County and will serve Iowa County in 2012. We serve youth who reside in all Johnson County municipalities. Big Brothers Big Sisters of America mandates our service area to include the following counties in Iowa: Johnson, Iowa, Washington, and Keokuk, however we are not required to serve these counties and up until this year have only served Johnson County. 2. Where are your clients /consumers coming from? Please provide a breakdown by municipality /community or county (if from rural area). e.g. Iowa City, West Branch, rural Iowa County, etc... Geographic Location FY 11 Johnson County (Combined, unduplicated) 640 Iowa City 406 Coralville 94 North Liberty 140 3. Please provide a breakdown of the income of your clients /consumers by the following categories, if possible. A. 57% of our clients fall in the 0 -30% range B. 23% were between 31 -50% C. 8% were between 51 -80% D. 12% were over 80 %. 0 -30% 106 31-50% 42 51-80% 15 Over 80% 23 TOTAL 186 4. Briefly describe efforts to secure funding from other entities, municipalities, counties, etc... We currently receive funding from Iowa City, Coralville, North Liberty, and Johnson County. The Iowa County Community Foundation will pay for our programming in Marengo. We have applied for funding from all of the above entities for FY 13. We also receive funding from the Johnson County United Way, grants, fundraising activities, and individual and corporate donors. FY13 AID TO AGENCIES HCDC REVIEW Crisis Center $42,000 Request =4" I r ;~rr�'''''�,,� memo CITY OF IOWA CITY 1. CITY STEPS priority level? (High = 10, Medium = 6, Low = 2 points) 6 2. Level of low- to moderate- income persons assisted? (0- 30 % =10, 31- 50 % =6, 61 -80 % =2 points) 9 1. Please list the counties and municipalities that you serve. Is there a state or federal organization that mandates your service area? We serve the entire county of Johnson County and all residents of the county. We are not mandated by state or federal entities. We also provide some limited transient services to individuals who are non - county residents, but stranded in Johnson County. Typically, we may work with another organization or hospital to share costs, or sometime with a local business. 2. Where are your clients /consumers coming from? Please provide a breakdown by municipality /community or county (if from rural area). e.g. Iowa City, West Branch, rural Iowa County, etc... Emergency Assistance: Food Bank: Iowa City 66% 73% Coralville 18% 15% North Liberty 8% 5.5% Lone Tree 1 % 1.2% Tiffin 1 % 1.1% Oxford <1% 1.2% Solon <1% .5% Hills <1% .5% Other rural JC n/a .9% Non —JC (transient 4 %) .9% 3. Please provide a breakdown of the income of your clients /consumers by the following categories, if possible. a. 0 -30% Emergency Assistance 90% Food Bank: 91.5% b. 31 -50% Emergency Assistance 4% Food Bank: 7.5% c. 51 -80% Emergency Assistance 0% Food Bank: 1.0% d. >81 % Emergency Assistance 0% Food Bank: 0% 4. Briefly describe efforts to secure funding from other entities, municipalities, counties, etc... The Crisis Center of Johnson County is a United Way partner agency, and their support provides approximately 18% of the organization's annual budget. Support is also received from the Johnson County Board of Supervisors, City of Coralville, University of Iowa, and FEMA. In this fiscal period, these allocations total 41% of the operating budget. The other 59% is derived through fundraising activities directed at individuals, local service organizations, businesses and foundations. FY13 AID TO AGENCIES HCDC REVIEW 1. CITY STEPS priority level? Compeer $10,000 Request � r , CITY OF IOWA CITY (High = 10, Medium = 6, Low = 2 points) 2. Level of low- to moderate- income persons assisted? (0- 30 % =10, 31- 50 % =6, 61 -80 % =2 points) 1. Please list the counties and municipalities that you serve. Is there a state or federal organization that mandates your service area? 10 M The Compeer Programs serves individuals in Johnson County. There is no mandate for the Compeer Program from state or federal organizations. 2. Where are your clients /consumers coming from? Please provide a breakdown by municipality /community or county (if from rural area). e.g. Iowa City, West Branch, rural Iowa County, etc... Currently: ■ 72% reside in Iowa City ■ 20% reside in Coralville ■ 8% reside in North Liberty 3. Please provide a breakdown of the income of your clients /consumers by the following categories, if possible. a. 0 -30% 75% of our current clients b. 31 -50 14% of our current clients c. 51 -80% 7% of our current clients d. >81 4% of our current clients 4. Briefly describe efforts to secure funding from other entities, municipalities, counties, etc... The Compeer Director and Board raise money to fund the Compeer Program through an annual direct mail campaign, an annual dessert concert called the "Sound of Friendship ", participating in local fundraising opportunities like "Rummage in the Ramp ", application for small local grants through service organizations and churches. When larger granting opportunities are applicable, we also attempt to secure funding in this manner. FY13 AID TO AGENCIES HCDC REVIEW «� AMMlN CITY OF IOWA CITY Domestic Violence Intervention Program $55,000 Request 1. CITY STEPS priority level? (High = 10, Medium = 6, Low = 2 points) 6 2. Level of low- to moderate- income persons assisted? (0- 30 % =10, 31- 50 % =6, 61 -80 % =2 points) 5 1. Please list the counties and municipalities that you serve. Is there a state or federal organization that mandates your service area? The Domestic Violence Intervention Program (DVIP) serves the following counties: Cedar, Iowa, Johnson and Washington. This includes all communities within these county boundaries. Our service area is defined by our agency in collaboration with our funders and our membership to the Iowa Coalition Against Domestic Violence. We receive state and federal funding, and while they do not mandate our service area, our federal and state funding require that we cannot turn away a domestic violence victim based on their community or state of origin. This requirement is critical for victims of domestic violence. On average batterers stalk their intimate partners for 21 months after they leave the relationship. Imagine what it would take to keep you safe from the one person that knows everything about you — for the next two years — if it was their intent to harm you physically, sexually and emotionally. It is common for victims of domestic violence to leave their community of origin for safety. Batterers commonly cross community and state lines to stalk and abuse their former intimate partner, this is such a recognized issue there are national laws that make this a federal crime. The network of nearly 2000 domestic violence programs across the country work closely together to support victims that must cross community and state boundaries to escape violence or start over. So, while we may work with individuals outside our immediate service area, at the same time, we are working with programs across the country to support Iowa City families, our neighbors, as they seek temporary (until they are able to return safely to their home community) or permanent safety. 2. Where are your clients /consumers coming from? Please provide a breakdown by municipality /community or county (if from rural area). e.g. Iowa City, West Branch, rural Iowa County, etc... From our 2011 fiscal year, total served 1773: Iowa City - 703 Coralville — 142 North Liberty — 63 Other Johnson County — 115 Cedar County — 8 Iowa County — 51 Washington County — 311 Other in Iowa — 193 Out of state — 113 Unknown - 76 3. Please provide a breakdown of the income of your clients /consumers by the following categories, if possible. a. 0 -30% = 907 or 51% b. 31 -50% = 433 or 24% c. 51 -80% = 204 or 11% d. >81% = 249 or l4% 4. Briefly describe efforts to secure funding from other entities, municipalities, counties, etc... DVIP secures funding from a broad range of resources. Currently local municipalities (City of Iowa City 5 %, Coralville <1 %, and Johnson County 6 %) make up 12% of our total income. With 57% of our clients coming from Johnson County, DVIP can confidently say that all local municipality funding is directed to support individuals within Iowa City, Coralville and Johnson County. In addition, DVIP receives local funding from the United Way and Community Foundation of Johnson County – this funding makes up 8% of our budget. 20% of our budget comes from direct fundraising – this includes local fundraising events, online auctions and local supporters. State and federal funding make 46% of our income. We also receive funding (4 %) from individuals and municipalities in one of three of our remaining service counties. Finally, about 10% of our budget comes from local, regional and national corporations and foundations. We believe we have a healthy range of funding sources, but continue to grow our resources at every opportunity. Like many non - profits, we have struggled with funding cuts, our funding diversification has helped us weather these losses. But make no mistake, we are struggling like many programs in our area. While the current economy doesn't cause domestic violence, there is no question we are seeing increasingly severe trauma and lethality. Victims are waiting to leave abusive partners, because they are afraid there will be no job, no safe place to live. For the women and children staying in our shelter —we're fighting every day to meet their most basic needs, but it's taking longer and longer to find those resources. This means longer shelter stays, so fewer women and children are getting into shelter, but it is our policy that individuals in immediate danger get in no matter what. This past summer was a record breaker —while 35 beds is our shelter limit (with 5 additional beds for immediate danger situations), from May to early October our shelter numbers were at 42 -49 women and children nightly. Going over capacity in this manner is a direct reflection of the danger level these families faced. We are grateful for our community's support. Iowa City has been steadfast in its support of victims of domestic violence – a piece of the intricate puzzle that supports safety and dignity for victims. FY13 AID TO AGENCIES HCDC REVIEW Elder Services $55,620 Request II ;"'' fir: a Ift " ' =1 - CITY OF IOWA CITY 1. CITY STEPS priority level? (High = 10, Medium = 6, Low = 2 points) 6 2. Level of low- to moderate- income persons assisted? (0- 30 % =10, 31- 50 % =6, 61 -80 % =2 points) 6 1. Please list the counties and municipalities that you serve. Is there a state or federal organization that mandates your service area? ESI has 5 programs: The ones we solicited funding for is ** 1. Nutrition, which is primarily funded through OAA funding and Medicaid Waiver. This programming services all of Johnson County, and provides rural route service to Washington, Iowa, & Cedar counties. This service delivery area was determined by the Heritage Agency in the early 2000's. 2. * *Elder Answers and non Waiver Case management serves Johnson County. 3. Waiver Case Management serves Johnson County 4. RSVP (Retired Senior Volunteer Program) set the service delivery area in the early 1980's. ESI provides services under this program to Johnson, Muscatine, and Des Moines County 5. Home Assistance, which includes Chore and Rep Payee provides services to Johnson County 2. Where are your clients /consumers coming from? Please provide a breakdown by municipality /community or county (if from rural area). e.g. Iowa City, West Branch, rural Iowa County, etc... For Nutrition, we currently serve 833 unique clients. 454 reside in the Iowa City limits, 246 in Johnson County, and 133 are in the remaining three counties of Iowa, Cedar, and Washington. Of the 454 Iowa City Clients, 235 (52 %) fall under Poverty level, and 95 (21 %) fall under the median income of 60 %. Of our 92 case management clients, 69 (75 %) reside in Iowa City, 23 in Johnson County. All of the clients fall under the poverty level. Of the nearly 250 contacts for Elder Answers and non - waiver case management, 221 reside in Iowa City; 172 (69 %) fall below the median income of 60 %. 3. Please provide a breakdown of the income of your clients /consumers by the following categories, if possible. a. 0 -30% b. 31 -50% c. 51 -80% d. >81% Please see #2 4. Briefly describe efforts to secure funding from other entities, municipalities, counties, etc... ESI has had a new Executive Director and new Bookkeeper in the last 6 months. As we become more familiar with funding streams and programming, ESI's intention is to contact all of the governmental entities where our clients reside. FY13 AID TO AGENCIES HCDC REVIEW 1. CITY STEPS priority level? Four Oaks $1,000 Request � r � %U.- in'l. `l - •ti.at- CITY OF IOWA CITY (High = 10, Medium = 6, Low = 2 points) 2. Level of low- to moderate- income persons assisted? (0- 30 % =10, 31- 50 % =6, 61 -80 % =2 points) 1. Please list the counties and municipalities that you serve. Is there a state or federal organization that mandates your service area? 10 5 Four Oaks Iowa City PAL Program is licensed by the Iowa Department of Human Services and is the only afterschool program in Johnson County serving clients with special needs through mental health and / or behavioral diagnosis. Four Oaks Iowa City PAL Program primarily serves clients that are residents of Johnson County. *Residents of surrounding counties may be served if transportation can be provided and funding can be secured through Child Care Assistance. 2. Where are your clients /consumers coming from? Please provide a breakdown by municipality /community or county (if from rural area). e.g. Iowa City, West Branch, rural Iowa County, etc... Four Oaks Iowa City PAL Clients reside in North Liberty, Coralville, and Iowa City. 3. Please provide a breakdown of the income of your clients /consumers by the following categories, if possible. a. 0 -30% - 9 families b. 31% - 50% - 3 families c. 51% - 80% - 4 families d. >81% - 3 families 4. Briefly describe efforts to secure funding from other entities, municipalities, counties, etc... Funding available for children and families to place their child in the Four Oaks Iowa City PAL Program is limited at this time to Child Care Assistance and funding from Johnson County. Families can also pay privately for their child's attendance if they can prove special needs and afford to pay the special needs rate. Qualification for funding through Child Care Assistance is limited to a child's special needs, family income, parents working or going to school, children in foster care, or protective services in place. Funding through Child Care Assistance can also take up to 30 days to be approved. FY13 AID TO AGENCIES HCDC REVIEW Free Lunch Program $2,000 Request I r 1 CITY OF IOWA CITY 1. CITY STEPS priority level? (High = 10, Medium = 6, Low = 2 points) 6 2. Level of low- to moderate- income persons assisted? (0- 30 % =10, 31- 50 % =6, 61 -80 % =2 points) 10 1. Please list the counties and municipalities that you serve. Is there a state or federal organization that mandates your service area? We serve the Johnson County area ... Iowa City and Coralville. A few of our guests may also come from nearby communities /counties from time to time. No state or federal organization mandates our service area. 2. Where are your clients /consumers coming from? Please provide a breakdown by municipality /community or county (if from rural area). e.g. Iowa City, West Branch, rural Iowa County, etc... We don't customarily collect data on our clients; we have no registration procedure for using our services. But a survey taken at Free Lunch in March 2010 showed 24 of 24 responding were Johnson County residents. Since most of our clients rely on public transportation (or bicycles), we know they live in Iowa City or Coralville. We also see persons who are traveling through town and use our services for a few days to a month or so at a time. 3. Please provide a breakdown of the income of your clients /consumers by the following categories, if possible. • 100% of our clients are in the 0 -30% income range. 4. Briefly describe efforts to secure funding from other entities, municipalities, counties, etc... Via our serving teams, the bulk of which come from area churches, we solicit and receive funds from faith communities. We apply for and receive funds from the United Way of Johnson County. For the past 2 -3 years we have received funds from the Cloud Family Foundation Fund of the Greater Kansas City Community Foundation, beginning 2012, we'll receive funds from the First Presbyterian (Iowa City) endowment, and in recent years we've received funds from area businesses (in 2011, New Pioneer & Scheels). We've applied (unsuccessfully in 2011) for funds from the Lichty Fund of Trinity Episcopal Church) and from the Carina Mohler Fund of the United Methodist Church. We're relatively new to fundraising efforts, but we know that we need to put more effort into fundraising as our rent increases, and as we anticipate a move to a new location in the coming year or so. FY13 AID TO AGENCIES HCDC REVIEW Iowa City Free Medical Clinic $8,000 Request � r some Il CITY OF IOWA CITY 1. CITY STEPS priority level? (High = 10, Medium = 6, Low = 2 points) 6 2. Level of low- to moderate- income persons assisted? (0- 30 % =10, 31- 50 % =6, 61 -80 % =2 points) 5 1. Please list the counties and municipalities that you serve. Is there a state or federal organization that mandates your service area? Appanoose Benton Black Hawk Boone Cedar Clinton Cumberland Dallas Delaware Des Moines Dubuque Fayette Henry Iowa Jasper Jefferson Johnson Keokuk Lee Linn Louisa Mahaska Marion Muscatine Polk Pottawattamie Poweshiek Rock Island Scott Wa ello Warren Washington York 2. Where are your clients /consumers coming from? Please provide a breakdown by municipality /community or county (if from rural area). e.g. Iowa City, West Branch, rural Iowa County, etc. 58 -60% reside in Iowa City zip code area, 12% in Coralville, 4% North Liberty, 3% Muscatine, 4% West Liberty, 2% Washington, 1 % Solon and 14% scattered among 80 different zip codes. 3. Please provide a breakdown of the income of your clients /consumers by the following categories, if possible. These are approximate percentages based on previous income surveys. a. 0 -30% 10% b. 31 -50% 30% c. 51 -80% 41% d. >81% 19% 4. Briefly describe efforts to secure funding from other entities, municipalities, counties, etc... In the past, Free Med board members contacted the county health departments from 6 surrounding counties whose residents use FMC/FDC services. Only 2 responded, and were not interested in making any contribution to FMC/FDC. Coralville contributes $2,000 per year. FY13 AID TO AGENCIES HCDC REVIEW CITY OF IOWA CITY Housing Trust Fund of Johnson County $8,000 Request 1. CITY STEPS priority level? (High = 10, Medium = 6, Low = 2 points) 2. Level of low- to moderate- income persons assisted? (0- 30 % =10, 31- 50 % =6, 61 -80 % =2 points) 1. Please list the counties and municipalities that you serve. Is there a state or federal organization that mandates your service area? 10 5 The Housing Trust Fund of Johnson County ( HTFJC) serves the entire county: the municipalities and the rural areas of Johnson County. Any organization/business or person providing housing to those at or below 80% of the area median income located in Johnson County would be eligible to apply for our revolving loan funds. We are funded through the State Housing Trust Fund Program, administered by the Iowa Finance Authority, and our original housing trust fund designation was intended for residents of Johnson County. Because of this, we are awarded state funds based on the population of Johnson County. 2. Where are your clients /consumers coming from? Please provide a breakdown by municipality /community or county (if from rural area). e.g. Iowa City, West Branch, rural Iowa County, etc. Because only organizations/business or persons who provide housing are eligible to apply for our revolving loan funds, we do not track from where the individual persons or families who live in the housing assisted by the HTFJC may have come. The reports filed with the Iowa Finance Authority for our last three years of funding awards (2009, 2010, and 2011) revealed over 78% of those living in housing that had received funding from our revolving loan fund were living in housing in Iowa City. The actual numbers were: 14 in North Liberty, one in Coralville, and 55 in Iowa City. 3. Please provide a breakdown of the income of your clients /consumers by the following categories, if possible. Due to the regulations of the state housing trust fund program, we are mandated to only award state housing trust fund funding for those projects that serve a population with income below 80 percent of the area median. We are further mandated that 30 percent of our state funding be set aside for those projects that provide housing for those with income below 30 percent of the area median income. For this reason, we only ask the organizations/businesses and persons awarded revolving loan fund dollars to report on the number of households with income below 30 and below 80 percent median income. Again, in looking at the IFA reports filed for the 2009, 2010, and 2011 state awards, HTFJC assisted the following number of households at these income levels: Below 30% AMI: 16 Between 30 and 80% AMI: 54 4. Briefly describe efforts to secure funding from other entities, municipalities, counties, etc... HTFJC is required to provide a 25 percent local match in its state housing trust fund funding request each year. For the past several years, the following cities and Johnson County have provided these funding amounts: Johnson County $24,000 City of Coralville $15,000 City of Iowa City $8,000 City of North Liberty $8,000 Because HTFJC provides most of its funding as loans, rather than grants, HTFJC is now also able to dedicate a minimal amount of loan repayments as local match, which has assisted us in meeting our state applications' local match requirement. In the last three state funding rounds, at least 85 percent of the local government contributions listed above were used toward funding projects, and less than 15 percent was used toward HTFJC administration. Historically, HTFJC Board of Directors has also initiated fund raising for specific projects, such as providing Housing Summits or the Iowa City Area Association of Realtors' Homes for Our Future project. These efforts have resulted in securing additional funding for those projects from lenders, other businesses, and private individuals. As a result of the strategic planning done last year, a committee of the HTFJC Board of Directors is currently working on conducting additional fundraising activities. As has been done in the past, the funding that is raised will likely be used toward a certain project or housing activity. FY13 AID TO AGENCIES HCDC REVIEW MECCA $20,000 Request � r i CITY OF IOWA CITY 1. CITY STEPS priority level? (High = 10, Medium = 6, Low = 2 points) 10 2. Level of low- to moderate- income persons assisted? (0- 30 % =10, 31- 50 % =6, 61 -80 % =2 points) 7 1. Please list the counties and municipalities that you serve. Is there a state or federal organization that mandates your service area? MECCA receives funding through the Iowa Plan to provide outpatient substance abuse treatment services to 2 regions of Iowa. Region 16 includes Cedar, Iowa, Johnson, and Washington counties. Region 12 includes Polk and Warren counties. Because we also provide residential substance abuse treatment, we are required to accept clients from any county of the state for that service. We provide substance abuse prevention services to Cedar, Iowa, Johnson, and Washington counties through the State Comprehensive Prevention Contract. We provide services to HIV /Aids population across 23 counties as required by the state HOPWA contract. Ryan White services include a smaller region and include Johnson county and Iowa City. MECCA also receives funding to provide gambling treatment and prevention services to 5 counties in Eastern Iowa (Cedar, Iowa, Johnson, Washington and Keokuk counties) and 6 counties in Central Iowa (Polk, Warren, Mahaska, Jasper, Dallas, and Marion). SPF -SIG substance abuse prevention grant to Johnson County, Drug Free Community grant to Cedar and Washington counties (the Johnson county grant ended after 10 years). 2. Where are your clients /consumers coming from? Please provide a breakdown by municipality /community or county (if from rural area). e.g. Iowa City, West Branch, rural Iowa County, etc... MECCA provided services in our Iowa City location to clients from 168 different communities. Below is a summary of where our clients come from. Johnson County Total Coralville 169 9% Hills 7 0% Iowa City 859 45% Lone Tree 15 1 % North Liberty 87 5% Oxford 15 1% Solon 15 1% Swisher 2 0% Tiffin 21 1 % Total Johnson County 1190 62% All other communities 731 38% Total 1921 168 communities 3. Please provide a breakdown of the income of your clients /consumers by the following categories, if possible. Number between 0 - 30% median income Number between 31 - 50% median income Number between 51 - 80% median income Number between 80 - 100% median income Number over 100% median income 922 (86 %) persons 107 (10 %) persons 17 (1.6 %) persons 7 (0.6 %) persons 15 (1.4 %) persons Total 1,068 persons 4. Briefly describe efforts to secure funding from other entities, municipalities, counties, etc... MECCA has an active fund development and grant writing staff that works to secure funding from a variety of sources throughout the year. Our activities include applications for government funding, both new and renewal applications, applications for private foundations, fund raising events including our annual on -line auction, and ICARE pancake breakfast, and pursuing individual contributions in support of MECCA's mission. For the period covering February 2011 through December 2011, MECCA submitted 25 different grant applications for a total request of $2,034,000. MECCA routinely monitors government sites listing upcoming opportunities for funding to identify grants that are consistent with our mission and strategic initiatives. 2 FY13 AID TO AGENCIES HCDC REVIEW I I , t. : ®4 CITY OF IOWA CITY Neighborhood Centers of Johnson County $63,000 Request 1. CITY STEPS priority level? (High = 10, Medium = 6, Low = 2 points) 10 2. Level of low- to moderate- income persons assisted? (0- 30 % =10, 31- 50 % =6, 61 -80 % =2 points) 8 1. Please list the counties and municipalities that you serve. Is there a state or federal organization that mandates your service area? Johnson County NCJC services are not mandated. 2. Where are your clients /consumers coming from? Please provide a breakdown by municipality /community or county (if from rural area). e.g. Iowa City, West Branch, rural Iowa County, etc... Families live in pocket neighborhoods in the Johnson County communities, which include the target areas of Broadway /Twain/Grant Wood; Pheasant Ridge; and Breckenridge, Forest View, Regency Mobile Home neighborhoods. 3. Please provide a breakdown of the income of your clients /consumers by the following categories, if possible. a. 0 -30% 80% b. 31 -50% 10% c. 51 -80% 5% d. >81% 5% 4. Briefly describe efforts to secure funding from other entities, municipalities, counties, etc... NCJC currently receives local funding from the City of Iowa City, the City of Coralville, and Johnson County. We also secure grant funding through a variety of state and federal departments, such as the Department of Education and the Department of Human Services. FY13 AID TO AGENCIES HCDC REVIEW Pathways Adult Daycare $5,000 Request � r -0% CITY OF IOWA CITY 1. CITY STEPS priority level? (High = 10, Medium = 6, Low = 2 points) 6 2. Level of low- to moderate- income persons assisted? (0- 30 % =10, 31- 50 % =6, 61 -80 % =2 points) 5 1. Please list the counties and municipalities that you serve. Is there a state or federal organization that mandates your service area? We primarily serve individuals from Johnson County, although we currently serve Cedar and Iowa County. We have served individuals from Washington and Linn County as well. We are not mandated to a particular service organization. 2. Where are your clients /consumers coming from? Please provide a breakdown by municipality /community or county (if from rural area). e.g. Iowa City, West Branch, rural Iowa County, etc... • Iowa City = 50 participants • Coralville = 7 participants • Tiffin = 3 participants • Oxford = 1 participant • Solon = 1 participant • Hills = 1 participant • Riverside = 1 participant • West Liberty = 1 participant • West Branch = 1 participant • Nichols = 1 participant 3. Please provide a breakdown of the income of your clients /consumers by the following categories, if possible. a. 0 -30% = 47 participants b. 31 -50% = 4 participants c. 51 -80% = 1 participant d. >81%=25 participants 4. Briefly describe efforts to secure funding from other entities, municipalities, counties, etc... We currently receive funding for participant fees from the Veteran's Administration, Title 19 Medicaid Waiver Program (Elderly, Intellectual Disabilities, AIDS & HIV, Ill & Handicapped, Brain Injury), Heritage Area Agency on Aging (over 60 years of age), and United Way of Johnson County (lowers fees to as low as $12 a day). Unfortunately, we still have people that either do not qualify for one of these funding sources or cannot afford to pay the reduced rate to attend. FY13 AID TO AGENCIES HCDC REVIEW 1. CITY STEPS priority level? RVAP $14,000 Request i r 1 CITY OF IOWA CITY (High = 10, Medium = 6, Low = 2 points) 6 2. Level of low- to moderate- income persons assisted? (0- 30 % =10, 31- 50 % =6, 61 -80 % =2 points) See Narrative 1. Please list the counties and municipalities that you serve. Is there a state or federal organization that mandates your service area? RVAP serves Johnson, Iowa, Cedar and Washington counties. Our service area is mandated by the Crime Victim Assistance Division of the Iowa Attorney General's Office. Our service area is related to federal grant dollars received through the Victims of Crime Act (VOCA) and the Violence Against Women Act (VAWA). We also receive funding from the State of Iowa to staff the Iowa Sexual Abuse Hotline. These funds mandate that we provide crisis line response to callers from the entire state. 2. Where are your clients /consumers coming from? Please provide a breakdown by municipality /community or county (if from rural area). e.g. Iowa City, West Branch, rural Iowa County, etc... Direct Services FY10 FY11 Johnson County 329 317* Cedar County 10 14 Iowa County 5 9 Washington County 1 10 1 17 State of Iowa Crisis Line 1 339 1 283 *Johnson Co =317, Iowa City---225, Coralville =33 All Services Direct & Educational FY10 FY11 Johnson County 9,778 6,299 Iowa City 7,432 4,545 Coralville 1,271 755 North Liberty 98 64 Cedar County 58 115 Iowa County 173 110 Washington County 457 591 It is not always possible for us to determine the exact service area on calls received on the crisis line so we categorize them as best we can. 3. Please provide a breakdown of the income of your clients /consumers by the following categories, if possible. We do not collect income data on our clients. Our federal grants require that we provide free services to all individuals seeking services. 4. Briefly describe efforts to secure funding from other entities, municipalities, counties, etc... RVAP requests and receives funding from many sources in order to provide services. State and federal grants provide the majority of the funding we use to provide direct services to victims and their significant others in our four county service area. Local financial support is required to leverage the state and federal funds which are used to provide services to local residents. Additionally we receive funding from the United Way of East Central Iowa to support services in Iowa, Cedar and Washington counties. The University of Iowa provides funding to support direct services and educational programming for UI related services. We also receive grant funding from an anonymous donor and other smaller grants periodically. Coralville Iowa City Johnson County United Way - Johnson Co United Way -East Central Iowa U of I Student Government Grants (Federal, State, Donor) $3,000 $12,000 $16,325 $27,125 $32,000 $47,090 $399,136 ■ Coralville ■ Iowa City ■ Johnson County ■ United Way - Johnson Co ■ United Way East Central Iowa ■ U of I Student Government Grants(Federal, State, Donor) FY13 AID TO AGENCIES HCDC REVIEW Shelter House $40,000 Request I1 � �raar4l CITY OF IOWA CITY 1. CITY STEPS priority level? (High = 10, Medium = 6, Low = 2 points) 10 2. Level of low- to moderate- income persons assisted? (0- 30 % =10, 31- 50 % =6, 61 -80 % =2 points) 10 1. Please list the counties and municipalities that you serve. Is there a state or federal organization that mandates your service area? Shelter House is the only general -use homeless shelter (providing shelter for the general homeless population —men, women, children, disabled, elderly, and veterans) in Johnson County. As such, all municipalities within the county are considered centric to the service area. There is no state or federal organization that mandates the service area. However, as a recipient of federal funds, Shelter House is available to all qualifying (homeless) US Citizens, 2. Where are your clients /consumers coming from? Please provide a breakdown by municipality /community or county (if from rural area). e.g. Iowa City, West Branch, rural Iowa County, etc... In the last program year: ■ 60% of Shelter House clients derived from Iowa Counties. ■ 42% of Shelter House clients derived from Johnson County ■ 31 % of Shelter House clients derived from Iowa City ■ 9% of Shelter House clients derived from Coralville ■ 1 % of Shelter House clients derived from North Liberty ■ 2% of Shelter House clients derived from Cedar Rapids ■ 1% of Shelter House clients derived West Branch 3. Please provide a breakdown of the income of your clients /consumers by the following categories, if possible. • 100% of Shelter House clients are within the 0 -30% income level. 4. Briefly describe efforts to secure funding from other entities, municipalities, counties, etc... In 2011 Shelter House operating revenue came from the following sources: ■ 3% Johnson County ■ 2% City of Iowa City ■ 0.3% City of Coralville ■ 48% Competitive State and Federal Grants ■ 16.7% from "fee- for - service" activities such as the VA Per Diem, payments from meal contracts and janitorial services, etc. ■ 15% all other fundraising and private contributions ■ 7% from Board Sponsored Fundraising Activities ■ 4% from the United Way of Johnson County ■ 2% Faith Communities ■ 2% from Shelter House Endowment FY13 AID TO AGENCIES HCDC REVIEW United Action for Youth $65,000 Request 1 r i � ,y�QOrv�1 CITY OF IOWA CITY 1. CITY STEPS priority level? (High = 10, Medium = 6, Low = 2 points) 10 2. Level of low- to moderate- income persons assisted? (0- 30 % =10, 31- 50 % =6, 61 -80 % =2 points) 5 1. Please list the counties and municipalities that you serve. Is there a state or federal organization that mandates your service area? UAY primarily serves Johnson County. UAY does provide some programs to neighboring counties: Muscatine County —UAY received a grant from the Iowa Department of Public Health to provide services in West Liberty and since the grant expired last year has continued under a contract with the West Liberty schools; Iowa County —Iowa offers some services to students at the Clear Creek schools and that work involves students and families that are in either Johnson or Iowa County; Cedar and Washington Counties - -- some of UAY's grant funded programs allow UAY to serve runaway and homeless youth or crime victims from those counties, also UAY is occasionally asked to assist on small projects by groups from other communities —this year UAY has a small project with WACO schools. UAY does not have a mandated service area by the state or federal funding sources. UAY is considered to be in the service area that MECCA is listed as the primary substance abuse service provider and UAY contracts with MECCA on a variety of projects. UAY's Basic Center grant is from the U.S. Department of Health and Human Services, Administration for Children and Families —the funding is from a formula for the state of Iowa, so the program is required to serve Iowans. 2. Where are your clients /consumers coming from? Please provide a breakdown by municipality /community or county (if from rural area). e.g. Iowa City, West Branch, rural Iowa County, etc... In last year's client summary (July 2010 -June 2011) the youth served were from the following communities: Iowa City - 1,396; Coralville -215; North Liberty -198; Solon -112; other small towns and rural -370 (includes youth from West Liberty, youth from surrounding small towns, and other towns in Iowa). 3. Please provide a breakdown of the income of your clients /consumers by the following categories, if possible. Youth Clients: Very low -120; low -643; moderate -886; high -87; unknown -581. Nearly all of the "unknown income clients are those who are in youth development programs that include community presentations and group work in which the youth names, ages and school are noted but no income information is tracked. Parents: Very low -44; low -138; moderate -232; high -28; unknown -22. Parent information is tracked for parents involved in UAY's counseling program. Total youth served last year: 2,317, of whom 236 were in counseling programs only; 1,574 in youth development programs only; and 507 in both counseling and youth development programs. UAY served 464 parents last year (not including pregnant and parenting teens who are tracked as youth clients and 99 babies (children of teen parents, who are not tracked as youth clients) 4. Briefly describe efforts to secure funding from other entities, municipalities, counties, etc... UAY submits anywhere from 60 to 100 proposals to other entities for funding every year. These include major grants to federal agencies and various Iowa state agencies, as well as area schools, and other municipalities, UAY also submits proposals to national, state, and local foundations, business sponsored funds, some faith based groups, local civic organizations, and a variety of anonymous foundations. The anonymous proposals are generally by invitation -only. UAY has generally 40 to 50 cost allocation centers to track the major grants that are supporting current services. UAY collaborates with a number of local providers in some of these applications — currently they include projects with the Iowa City Schools, Four Oaks, MECCA, Mercy Hospital, and DVIP. UAY often uses local funds to match state and federal grants. Y Housing Trust Fund Iohnsonl County Housing Trust Fund of Johnson County 322 East Second Street Iowa City, IA 52240 Email: tchenbach@htfj'c.org Website: www.htfj'c.org Office: 319.358.0212 Fax: 319.358.0053 Board ofDirectors Bob Dvorsky, President December 8, 2011 State Senator, 1 r District Steve Long, Co- President -elect Iowa City Planning & Community Development Mr. Tom Markus, City Manager Bob Burns, Co- President -elect City of Iowa City Burns &Burns, LC... 410 East Washington Street Ron Mavrias, Seartag Iowa City, Iowa 52240 Private Citi .Zen --- --- --- ------ Dear Mr. Markus: Jerry Anthony, University of Iowa, Urban & Re ionalPlanning On behalf of the Board of Directors of the Housing Trust Fund of Johnson County, we Robert Brooks, University of Would like to thank the City of Iowa City for investing in the Trust Fund for the past Iowa Building and landscape several years. Your investment has been crucial to the success of our organization. Services Crissy Canganelli, Shelter House Enclosed with this letter is a brief report highlighting our activities for the last fiscal year. None of these would have been possible without your participation in our Maryann Dennis, EX- officio The Housing Fellowship organization. These activities included: • State Housing Trust Fund Award of $248,094 for FYI I Kirsten Frey, Kennedy, cruise, Fey and Gelner • FYI Application to State Housing Trust Fund for $225,882 Steve Gordon, AM Management • HTFJC Revolving Loan Fund awards totaling $348,500 to organizations and developers, which proposed to increase the number of rental homes, transitional Ellen Habel, city of Coralvilk housing units, and newly constructed single family homes in our communities Chris Le-Fever, US Bank • Continued to administer Community Priorities Grant award from the United Tracey Mulcahey, City of Nortb Way of Johnson County, which allowed us to collaborate with several agencies to Liberty pd dress funding gaps that prevented households toward moving toward self-sufficiency • Continued to administer IDED grant for Tenant Based Rental Assistance in Scott Schroeder, MidWestOne cooperation with the Iowa City Housing Authority Bank . Continued to administer FHLB Affordable Housing Program in Rod Sullivan, Johnson County grant cooperation with ECICOG Board of Supervisors • Served on the JCCOG Affordable Housing Task Force, Local Homeless Coordinating Board, County Mobile Home Task Force Linda Thrasher, Relocation Specialrrt • Administered Iowa City Single Family New Construction Program, Rounds 1 and 2, intended to provide down payment assistance to 77 homebuyers for homes built Larry Wilson, University Heights in Iowa City Citi .zen • Administered ECICOG Single Family New Construction Program, Round 1, Staff intended to provide down payment assistance to 54 homebuyers for homes built in Tracey Achenbach, Coralville, Hills, Lone Tree, North Liberty, and Tiffin. Executive Director Kehla West Operations Coordinator These projects, as well as the anticipated funding requests for the coming year, continue to address the growing housing needs in Iowa City and throughout the County. Furthermore, the activities we fund are required to assist the lower income residents of our County and often serve a population that necessitates this assistance. Your continued investment in the Housing Trust Fund of Johnson County is critical to our ability to be able to provide loan funds to agencies and businesses who serve these populations. Without your support, it would be impossible for us to request a grant from the State Housing Trust Fund. As you are aware, this annual grant provides the capital for our revolving loan fund. We cannot convey in this letter how much your commitment to the Housing Trust Fund has been critical to our success and your annual investment of $8,000 is much appreciated. We recognize that local governmental entities continue to be challenged to provide more services with fewer resources. We respectfully request; however, that you continue your commitment to affordable housing and budget a similar investment to the HTFJC for the next fiscal year. Thank you for your consideration of this request, and please do not hesitate to contact us if you need further information. As always, members of the board or staff are available to attend a work session to answer any questions you may have ahmit vrivi, investment. Sincerely, Sena or Robert Dvorsky, President &M�al �/ 6ul �A �__ Tracey Achenbach, Executive Director Housing Trust Fund lohnsont County Housing Trust Fund of Johnson County 322 East Second Street Iowa City, IA 52240 Email: tachenbach @htfjc.org Website: www.htfjc.org Office: 319.358.0212 Fax: 319.358.0053 Board ofDrrectors Annual Report Bob Dworsky, President State Senator, 1 P District June 30, 2011 Steve Long, Co President -elect RLF Admin FYI I State Housing Trust Fund Award: $248,094 $223,285 $24,809 Iowa City Planning dam' Community Local Match: Development Bob Burns, Co- President -elect Governments 55,000 47,300 7,700 Burns &Burins, LC... Johnson County 24,000 City of Coralville 15000 Ron Mavrias, Secretary Private Citizen Cities of Iowa City & North Liberty 16,000 HTFJC _ 8,000 8,000 Jake Young, Treasurer McGladrey & Pullen, LLP Total Award & Local Match: $311,094 $270,585 $40,509 FY11 HTFJC Revolving Loan Fund Awards Totaled $348,500 Jerry Anthony, University of Iowa, Urban drRegionalPlanning Shelter House $ 64,000 Purchase /rehabilitation of transitional housing for 6 persons Robert Brooks, University of Iowa Building and Landscape The Housing Fellowship $175,000 Services Purchase /rehabilitation of five homes in UniverCity Program Crissy Canganelli, Shelter House Iowa Valley Habitat for Humanity $ 3,500 Construction/Interest for 1 single- family home Maryann Dennis, Ex- officio Successful Living $ 40,000 The Housing Fellowship Rehabilitation of rental home for 9 persons Kirsten Frey, Kennedy, Cruise, Iowa Valley Habitat for Humanity $ 66,000 Firy and Gelner Construction of 2 single - family, owner- occupied homes Steve Gordon, AM Management Ellen Habel, City of CoralWk FYI Other Grants /Activities: Chris LeFever, US Bank • Repayments to HTFJC revolving loan fund exceeded $40,00 in FYI I • Provided over $1.20,000 to Iowa City Area Association of Realtors for Tracey Mulcahey, city of North purchase /rehabilitation of home in Coralville as part of their revolving loan Liberty . Approved administration of micro -loan program for IVHH Dottie Ray Scott Schroeder, MidWestOne Women Build project Bank • HOME grant for Tenant Based Rental Assistance in cooperation with Iowa City Housing Authority providing rental assistance to 53 renters Sally Stutsman, Johnson County Board of Supervisors • FHLB Affordable Housing Program grant in cooperation with ECICOG assisted 12 homeowners with minor repairs Linda Thrasher, Skogman Realty • United Way grant disbursed to a variety of agencies to address barriers to stable housing and long term self sufficiency Larry Wilson, University Heights Citizen Y g Y . Administered Iowa City Single Family New Home Construction Program: Staff Processed 91 applications; 31 closings completed Tracey • Administered ECICOG Single Family New Home Construction Program: Executive Director ve Director Closed on 11 properties in Lone Tree • Served on the JCCOG Affordable Housing Task Force, Local Homeless Andrew Donham, Coordinating Board, and County Mobile Home Task Force Grant Administrator CITY OF IOWA CITY FY13 ALLOCATIONS TIMELINE Dates Subject to Change Dec. 14, 2011 Public notice that CDBG and HOME applications are available Dec. 29, 2011 CDBG /HOME Applicant Workshop, Emma Harvat Hall, City Hall, 3:00 PM Jan. 9, 2012 CDBG /HOME Applicant Workshop Emma Harvat Hall, City Hall, 11:00 AM Jan. 20, 2012 Applications due to City of Iowa City by 12 noon Feb. 16, 2012 HCDC meeting: question /answer discussion with CDBG /HOME applicants. Location TBD, 6:30 PM Feb. 24, 2012 HCDC ranking forms due to City staff Mar. 8, 2012 HCDC meeting: review of groupings and consensus funding scenario. Location TBD, 6:30 PM (CDBG /HOME applicants encouraged to attend, but not mandatory) Mar. 22, 2012 HCDC meeting: recommendation on CDBG /HOME funding awards. Location TBD, 6:30 PM (CDBG /HOME applicants encouraged to attend, but not mandatory) April 3, 2012 HCDC justifications memo due for council packet April 13, 2012 Draft FY13 Annual Action Plan done — 30 -day comment period begins April 19, 2012 HCDC meeting: Review FY13 Annual Action Plan and recommendation to City Council May 15, 2012 Expiration 30 -day comment period on the FY13 Annual Action Plan May 15, 2012 City Council: public hearing on the FY13 Annual Action Plan (If needed, joint HCDC /City Council meeting) May 15, 2012 City Council Meeting: resolution- approving the FY13 Annual Action Plan July 1, 2012 Start FY13 projects (If awarded funding, no expenses may be incurred prior to both July 1 AND execution of a CDBG /HOME agreement) 11/9/2011 I Ba n-k Ity A practical guide to real estate financing for nonprofit developers 2nd EDITION 4 Rules of Thumb for Estimating Development Soft Costs (Note: Soft costs vary according to the size, type and location of the de- velopment project. Most of the guidelines presented below are based on formulas currently used by the New York City Division of Housing Preservation and Development (HPD) and the Community Preservation Corporation (CPC). These rules of thumb reflect current (1996) cost es- timates which are subject to change. Whenever possible, obtain information about actual costs for your project. Architect and Engineering: The fee charged by the architect for pre- paring drawings and monitoring the project during construction. Usu- ally 4% to 10% of the construction cost, not including the contingency allowance. Government funders frequently set a maximum allowable percentage. The architects fee includes the cost of hiring engineers needed for structural and major system design. Environmental Survey: Survey of building and lot for toxic sub- stances including asbestos. Varies from about $1,700 to $2,500 per building or site. Appraisal: A determination of the value of the existing property and the value of the property after completion of construction. The ap- praised value determines the maximum loan amount based on the loan to value formula used by the lender. Varies with the size and complex - ity of the project. Cost will be higher for mixed —use and scattered site projects. Allow at least $2,500 to $5,000. t Consultant Fees: Varies with the size and complexity of the project and the extent of consultant services to be provided. Allowable con - sultant fees are usually limited by government funders. Survey: Determines the boundaries and exact location of the lot and is required in order to obtain title insurance. Fee varies, allow $1,500 per building or lot. Tax Exemption Program Filing Fee: A fee paid to a government agency for processing an application for real estate tax exemption and/or abatement. Varies with the program. Title Insurance: Insurance that protects the owner and lender from possible future losses caused by defects in the title. Estimated cost is .007 x the amount of the mortgage or the total development cost. Mortgage Recording Tax: A State tax charged when a mortgage is re- corded in a book of public records. Calculate as 2.75% of the mort- gage recorded. Calculate as 2.5% of mortgages over $500,000 and 2% of mortgages under $500,000. This fee can be waived for certain types of nonprofit development corporations. 61 r Ilk Developer Legal Lawyer's fees for reviewing and preparing docu- ments and managing the legal aspects of the closing. Varies with the complexity of the project. Allow from $10,000 to $25,000. Develop- ers of projects with multiple sources of government and private financ- ing may incur higher legal fees. Developer Fee: Varies. Usually calculated at 3% to 10% of the total project cost or as a flat fee based on the number of units. Certain gov- ernment programs allow developer fees of up to 15% of the total devel- opment cost. The fee is intended to compensate the developer for project— related administrative costs, salaries, office rent, transporta- tion, etc. Government funders may limit or disallow this fee. Construction Period Real Estate Taxes: Real estate taxes on the land and the building under construction. Calculate by using the present as- sessed value x tax rate x length of the construction period. Real estate taxes will be higher if the project is re- assessed during construction and is not exempt from tax increases. Construction Period Water and Sewer: Charges for water and sewer service during construction. Calculated by assessment x length of the construction period or as a flat fee for limited usage during construction. Construction Period Insurance: Cost of fire and liability insurance during construction. Insurance is in addition to insurance carried by the general contractor. Use actual quote from your insurer or estimate at $5 to $8 per $1,000 of replacement value. Permanent Lender Fee: A fee charged by the lender for underwriting and processing the loan. Usually I% to 2% of the loan. Permanent Lender Legal: Legal expenses incurred by the lender in connection with making the loan. Paid by the developer. Estimate at $10,000 to $30,000 depending on the size and complexity of the project. Construction Lender Fee: A fee charged by the lender for underwrit- ing and processing the loan. Usually 1 % to 2% of the loan. Construction Lender Legal: Legal expenses incurred by the lender in connection with making the loan. Paid by the developer. Estimate at $10,000 to $30,000 depending on the size and complexity of the project. Bank Engineer: Usually a consultant selected by the lender to inspect the construction work and approve the release of funds to the general con- tractor. Fee includes the initial review of construction drawings ($2,500 to $5,000) plus a charge for each inspection of the building and review of the contractor's requisitions for payment. Allow $500 to $750 for each inspec- tion and assume one inspection per month during construction. Construction Loan Interest: Interest paid monthly on the portion of the loan that has been advanced to the borrower. Usually estimated at 62 50% to 60% of the construction loan x the interest rate x the length of the construction period. -� Marketing and Leasing: Costs incurred during leasing of apartments and commercial space or the sale of residential units can vary enormously —esti- mates should be given careful consideration. For low and moderate income residential rental projects, HPD allows $9,000 plus $300 per unit. Soft Cost Contingency: This is an allowance for unforeseen costs and overruns. Allow a lump sum of $10,000 to $25,000 depending on the size of the project, or use 5% to 10% of the soft costs. Income and Expenses The Schedule of Pro Forma Income and Expenses is used for income producing property only and is frequently referred to as the pro forma. The pro forma presents the expected results of the first year of opera- tion of the project after it has been completed and leased. The pro forma is simply a detailed presentation of the following formula: Gross Rents – Vacancy Allowance – Expenses = Net Operating Income. Each of the components of this formula is discussed below. (In the case of a sales project, the comparable schedule would show projected gross in- come from the sale of the units less the expenses incurred in selling the units such as legal costs, brokerage fees, advertising and transfer taxes. The schedule should include a breakdown of the projected per unit sales price for each unit or type of unit. For a sales project, the schedule is a detailed presentation of the following formula : Gross Sales Pro- ceeds – Sales Expenses = Net Sales Proceeds. The developer's profit equals Net Sales Proceeds less the total development cost shown in the Sources and Uses schedule.) Gross Rents: This item includes all sources of income including resi- dential rents broken out by unit type, number. of units; commercial units with square footage and rent per square foot, and any other in- come such as coin operated laundry, parking, and other charges. The total gross rent is the projected total income from the project if all units are occupied for the full year and all rents are collected. Vacancy and Loss Allowance: Gross rents are reduced by this allow- ance for vacancies and uncollected rents. The rule of thumb for determin- ing the vacancy and loss allowance is 5% for residential and at least 10% for commercial space. Banks may require higher vacancy and loss allow- ances depending upon the location of a project and market conditions. While the demand for affordable rental housing is usually very strong, de- mand for commercial space can vary greatly and the lender may require a } vacancy allowances of 20% or more for commercial space. l '.: 63 Expenses: Lists all operating expenses, management fees, and alloca- tions to reserve funds. Remember to include the operating expenses for the superintendent's apartment. (See Rules of Thumb for Estimat- ing Annual Operating Expenses, below.) Net Operating Income: This "bottom line" is referred to as the Net Operating Income (NOI). It is the most important number on the spreadsheet because it will be used by the lender to determine the amount of debt that your project can support. (Determining the maxi- mum loan amount using the NOI is discussed in Chapter 3.) Rules of Thumb for Estimating Annual Operating Expenses (Note: Operating costs vary greatly depending upon the age, size and location of the building. The guidelines presented below are based on formulas used by the New York City Division of Housing Preservation and Development (HPD) and the Community Preservation Corporation (CPC). For cost estimates based on the number of rooms, calculate the room count by using two rooms for studios, three rooms for one bed- room units, four rooms for two bedroom units and five rooms for three bedroom units.) Real Estate Taxes: Varies with the type of tax exemption program. Most projects in low and moderate income areas will be eligible for tax exemption. For projects without tax exemption benefits, annual taxes equal the estimated assessed value of the completed project x the applicable tax rate. Insurance: Includes fire and liability insurance. Estimate insurance costs at $2.50 per $1,000 of coverage for fire insurance plus $250 per unit for liability insurance. If possible, obtain an estimate from your in- surance agent. Payroll: Varies with the size of the building, location and the services to be provided. This cost is usually estimated on a case by case basis. HPD uses the following general guidelines : Superintendent . . . . . . . . . . . . . . . . . $25,000 Porter . . . . . . . . . . . . . . . . . . . . . $12,000 Superintendents of larger buildings (20+ units) are usually also given a free apartment. A porter is usually required for buildings with more than 35 units. Elevator Maintenance: Includes the cost of the elevator maintenance contract and an allowance for repairs. Estimate at $4,000 per elevator. 64 Exhibit 3: Pro Forma Income and Expenses DATE NAME OF PROJECT SCHEDULE 2: Pro Forma INCOME AND EXPENSES RESIDENTIAL INCOME Unit Type Rent/Mo. Units Gross /Yr One Bedroom $650 6 $46,800 Two Bedroom $750 6 $54,000 Three Bedroom $850 .4 $40,800 TOTALS 3,680 16 $141,600 COMMERCIAL INCOME Gross Rentable SF 1,200 Rent per SF /Year $17.50 TOTAL COMMERCIAL INCOME $21,000 GROSS ANNQAL INCOME $162,600 (less) Residential Vacancy 5.00% ($7,080) (less) Commercial Vacancy 10.00% ( 2,100) EFFECTIVE GROSS INCOME $153,420 EXPENSES Real Estate Taxes $0 Insurance 7,348 Payroll 18,000 Elevator Maintenance 4,000 Water and Sewer 7,750 Heating 10,850 Utilities 2,790 Cleaning /Exterminating /Supplies 2,604 Repairs and Replacements 3,680 Painting 2,480 Legal and Accounting 3,200 Management Fee (6 %) 9,205 Building Reserve (2% of gross) 3.252 TOTAL EXPENSES AND RESERVES $75.159 NET OPERATING INCOME 26 65 0 L� J) Water and Sewer: Based on frontage or metered water use. Use the actual assessment or calculate at $125 per room. Heat: Varies with the age and type of the building and the type of fuel used. HPD estimates at $150 to $175 per room per year. Build - ings heated with gas or the best grade of fuel oil are estimated at $175 per room. Utilities: Apartment gas and electricity is usually individually metered and paid by the tenant. For common area utility expenses (hall - ways,basement, exterior), the City uses $40 per room for walk —up buildings and $45 per room for elevator buildings. Supplies, Cleaning and Exterminating: Charge for contract with ex- terminating service and for cost of supplies used by superintendent and porter: Varies. CPC and HPD use $42 per room. Repairs and Replacements: Estimate at $230 to $390 per unit depend- ing upon the extent of the work. Includes the cost of repairing and re- placing appliances. Gut rehabs and new construction projects will have lower repair and replacement expenses, at least during the early years of operation. Painting: Annual allowance for painting apartments and hallways. Es- timate at $40 per room. Legal and Accounting: Covers legal fees for leasing and evictions and accountant's fees. CPC and HPD estimate this cost at $1,600 plus $100 per unit. Management Fee: Use 6% to 8% of the net rent (gross income less vacancy allowance). Note that lenders will require a deduction for this expense even if your organization intends to manage the project. Building Reserve: Annual payments into a fund used for future major expenses such as replacing the roof or the boiler. Usually calculated as 2% to 3% of the gross rent. Total rehabilitation and new construction projects should use 2 %. Questions To Ask The Lender Before taking the time to prepare and submit a loan application, contact prospective lenders and briefly describe the project and the type and ap- proximate amount of the loan required for your project. Lender guidelines regarding the type and size of loans being made are subject to change. The fact that six months ago XYZ Bank made a construction loan at 1.5% over prime for a mixed —use project in Brooklyn does not assure that they would make the same loan today. The overall availabil- ity of loans, the availability of particular types of loans, and the terms 66 Interest Rate and conditions of those loans are all subject to change. Make sure there is a match between your project and the type of loans currently being made by the lender. If the lender is willing to consider your application, ask for guidelines regarding terms and conditions such as the current rate or range of rates, the commitment fee, bank legal fees, and bank policy regarding equity requirements and guarantees . (You may want to request a letter confirming the lenders interest in the project.) Don't be afraid to ask questions, but don't expect precise answers. Remember that at this stage, information provided about rates, fees, and other terms will be very preliminary and subject to negotiation and change during the loan review and underwriting process. If your loan is approved, the lender will issue a commitment letter detailing the terms and conditions of the loan. Until the commitment letter has been signed by both parties, terms and conditions can be negotiated and changed. Listed below are some questions you may want to ask the lender prior to submitting an application. (Many of these items are discussed in Chapter 3.) For the type of loan requested, what is the current interest rate or range of rates? For variable rate loans, how is the rate calculated? (Construc- tion loans are usually keyed to the prime interest rate, variable rate mortgages are usually keyed to treasury bill rates.) Loan—to—Value and Debt Service Coverage Fees Ask about the lender's guidelines for these underwriting criteria. (For- mulas for calculating loan -4o value and debt service coverage are presented in Chapter 3.) For the type of loan requested, what is the range of percentage points charged as a commitment fee? (Although commitment fees usually vary with the type of loan and the perceived level of risk, the lender can usually provide an estimate that is within a fairly narrow range.) Does the lender normally charge a lower commitment fee to non—profit bor- rowers. Could payment of the commitment fee be deferred until the loan closing? If not, what is the likely schedule for payment of the fee. 67 N i (This is an important consideration in planning for the pre - closing ex- penses you will incur.) If the loan is approved but does not close, will your organization still be liable for payment of the commitment fee and other bank expenses? Other Fees and Expenses For the type of loan requested, what is a reasonable estimate of bank le- gal fees? Would the legal work be done in —house or by outside counsel? (Fees for outside counsel are usually higher.) Ask about the timing of payments for fees and expenses such as the cost of the ap- praisal, surveys, and environmental reports. (The loan officer can be a useful source of information about expenses you will incur and pay prior to the closing.) Equity Requirements and Guarantees What is the lender's policy regarding corporate guarantees by nonprofit organizations? What are the lender's guidelines regarding equity re- quirements by nonprofits? Would grants and loans be accepted as equity contributions? What types of expenses previously incurred in connection with the project would be acceptable as equity? Will the lender require that the equity be spent prior to release of funds by the lender? Nature and Timing of the Loan Review Process What are the steps in the loan review process and how much time is re- quired for each step? What types of information or documentation will be required at each step? Loan Application Checklist A suggested list of documents and additional information that should I� be submitted with the loan proposal is presented below. Some of these items supplement information about your organization, others are pro - ject specific. Prior to submitting your application, contact the loan officer and list for her the items you plan to include in the application. Ask about any additional items you should include. By submitting a complete package to the lender now, you will avoid future delays and frustration. III 68 PROFORMA SPREAD SHEET Instructions for Completing This Attachment The Housing Application, as in the past, requires the developers of rental housing projects to complete and submit a proforma for the project being proposed. The purpose of this proforma is to help the Housing and Community Development Commission (HCDC) and staff to make informed decisions on the allocation of local HOME Investment Partnership and/or Community Development Block Grant funding. All applicants for rental housing (including rehabilitation projects) are required to complete the attached proforma. This form will provide HCDC with the needed information in a format that is uniform among all applicants. The following are instructions for completing this form and some basic "rules of thumb" for your consideration. This form allows for up to 20 years of information. If you have any questions about the form or need technical assistance please call Community Development staff at 356 -5230. ** *Fields shown in ° °¢rev" are for number entry when usine the excel spreadsheet * ** Revenues (After YR 1 a rent escalator of 2% is calculated in the spreadsheet which is consistent with the Fair Market Rent (FMR) increases for Iowa City] Line 1 Gross Rent: Is the total amount of rent generated from the housing units, based on proposed rent levels (proposed rents may be less than FMRs but cannot exceed FMRs). Line 2 Other Income: Include laundry income, application or pet fees, and interest income. Line 3 Tenant Contributions: Include other payments such as rent for parking or storage space. Line 4 Gross Income: Is the sum of Lines 1 through 3. Line 5 Vacancy Loss: Line 1 multiplied by 5 %. Line 6 Effective Gross Income: Line 4 minus Line 5. Operating Expenses [An inflation escalator of 3% is calculated in the spreadsheet] Line 7 Operating Expenses: Estimated insurance expense (estimate from an agent). Line 8 Operating Expenses: Repairs and Replacements ($230 - $390 per unit depending on building age). Line 9 Operating Expenses: Management Fee (usually 5 — 7% of Gross Rent). Line 10 Operating Expenses: Property Taxes (estimate may be obtained from the City Assessor's Office). Line 11 Operating Expenses: Miscellaneous Expenses (legal, accounting, advertising, water \sewer, etc.). Line 12 Operating Expenses: Reserves (generally no more than 2 -3% of gross rent). Line 13 Total Operating Expenses: Is the sum of Lines 7 through 12. Net Operating Income Line 14 Net Operating Income: Is Line 6 minus Line 13. Debt Service f list mortgage payments for principal and interest only] Line 15 Debt Service for 0 Mortgage. Line 16 Debt Service for 2 "d Mortgage(s) (include the total payments for all junior mortgages on this line). Line 17 Total Debt Service: Is the sum of Lines 15 and 16 (should not be less than 87% of Line 14). Cash Flow Available for Distribution Line 18 Cash Flow: Equals Line 14 minus Line 17. PAGE 2 PROFORMA INSTRUCTIONS CONTINUED Equity Investment Line 1 8B is the amount of funds being invested in the project by the project developer\sponsor. This does not include the equity raised through the sale of Low Income Housing Tax Credits as they are accounted for on Line 33. Cash on Cash Return on Investment (shows return to developer or investors on their equity contribution before taxes or tax credits are includedl Line 19 Cash on Cash ROI: Equals Line 18 divided by equity investment as shown on the application. Determining Taxes Line 20 Cash Flow: Carry over the figure from Line 18. Line 21 Depreciation Expenses: Annual depreciation of property (27.5 year straight -line schedule). Line 22 Amortization of Fees: Annual amortization of project fees (15 -year straight -line schedule). Line 23 Principal Payments: Calculate the amount of principal paid on all loans for each year. Line 24 Reserves: Carry over the figure from Line 12. Earnings (Loss) Before Taxes Taxes Line 25 Earnings Before Tax: Equals (Line 20 minus Lines 21 and 22) plus Lines 23 and 24. Line 26 Tax Rate: Use a 35% tax rate on for - profit organizations and non - profits use 0 %. Line 27 Taxes Incurred (Saved): Equals Line 25 multiplied by Line 26. Cash Flow After -Tax Line 28 Cash Flow: Carry over figure from Line 20. Line 29 Taxes Incurred (Saved): Carry over figure from Line 27. Line 30 Cash Flow After -tax: Equals Line 28 minus Line 29, Total Benefit Analysis Line 31 Cash Flow After -tax: Carry over figure from Line 30. Line 32 Rehabilitation Tax Credits: Calculate full value of rehab tax credits. Line 33 Low Income Housing Tax Credits: Calculate full value of LIHTC annually for each of the Ise 10 years. Line 34 Net Sale Proceeds: In year 20, calculate the estimated future market value of the property by taking the total cost of the project as presented in this application and compound it by 2% for each year. Place this amount on line 34. Line 35 Net Cash Flow After -tax: Equals the sum of Lines 31 through 34. 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CALL TO ORDER: The meeting was called to order by Chairperson Michael McKay at 6:30 p.m. APPROVAL OF THE NOVEMBER 17. 2011 MINUTES: Zimmerman Smith moved to approve the minutes. Drum seconded. A vote was taken and the motion carried 7 -0. PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA: None. STAFF /COMMISSION COMMENT: Long talked about the 93 homes that have been constructed with the CDBG Disaster funded Single Family New Homes program with another 15 homes that will be built in the next few months. The City just found out that there will be a round 4 of the program that will allow for another 32 homes to be constructed over the next 15 months. The price of the homes HOUSING AND COMMUNITY DEVELOPMENT COMMISSION DECEMBER 16, 2011 PAGE 2 of 4 will have to be below $150,000. He discussed that the home buyer will receive 25% down payment assistance that is forgiven over five years. Long stated that VNA recently purchased a parcel of land near Sycamore Mall with CDBG funds. They will be constructing a new facility next year at that location. PUBLIC MEETING: DISCUSSION REGARDING FY13 AID TO AGENCIES FUNDING REQUESTS: • Discuss Aid to Agencies Allocation Process Long discussed the Aid to Agencies process. Long asked Commission members to review the materials and to make recommendations for the funding process. Long stated that the Commission would need to come up with the allocation plan for the January meeting. Chappell stated that he felt that the ranking form used for the regular CDBG /HOME allocation process may not be the appropriate one to use for this process. He asked if staff can prioritize the priority levels of the applications into high, medium and low. McKay stated that the money is coming from Iowa City tax payers. He wanted to see if they could pick the applications that have the most impact on Iowa City residents. The Commission discussed ways to reformat the ranking form and came up with the following questions to ask each applicant prior to the next HCDC meeting: 1. Please list the counties and municipalities that you serve. Is there a state or federal organization that mandates your service area? 2. Where are your clients /consumers coming from? Please provide a breakdown by municipality /community or county (if from rural area). e.g. Iowa City, West Branch, rural Iowa County, etc... 3. Please provide a breakdown of the income of your clients /consumers by the following categories, if possible. Please see the attached income chart. a. 0 -30% b. 31 -50% c. 51 -80% d. >81 % 4. Briefly describe efforts to secure funding from other entities, municipalities, counties, etc... The questions will be incorporated in to a new ranking form for the allocation of funds at the January meeting. MONITORING REPORTS: • Successful Living — Rental Rehabilitation & Van Acquisition The rental rehabilitation project will begin shortly. Drum talked about Successful Living and they were able to purchase a 12 person van just before Thanksgiving HOUSING AND COMMUNITY DEVELOPMENT COMMISSION DECEMBER 16, 2011 PAGE 3 of 4 and were able to pick up the clients to take them to a Thanksgiving dinner. The van will be used to transport clients to activities and appointments. Shelter House — Rental Rehabilitation & Operations The rehabilitation project is going well and is under budget. Iowa City Housing Authority — Tenant Based Rent Assistance The Iowa City Housing Authority said the TBRA program is about 50% complete. ADJOURNMENT: Chappell made a motion to adjourn. Clamon seconded. 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