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Home My WebLink About2020-09-15 Affordable Housing Plan Update PresentationAFFORDABLE HOUSING IN IOWA CITY FY20 YEAR END REPORT Generally defined as housing in which the occupant is paying no more than 30% of gross income for gross housing costs, including utility costs. For most programs, owner-occupied beneficiaries must be under 80% of the area’s median income and under 60% of the area median income for rental housing. WHAT IS AFFORDABLE HOUSING? Household Size 50% Median Income (MI) Hourly Rate FTE 60% Median Income (MI) Hourly Rate FTE 80% Median Income (MI) Hourly Rate FTE 1 $35,450 $17.04 $42,540 $20.45 $54,950 $26.42 2 $40,500 $19.47 $48,600 $23.37 $62,800 $30.19 3 $45,550 $21.90 $54,660 $26.28 $70,650 $33.97 4 $50,600 $24.33 $60,720 $29.19 $78,500 $37.74 Effective 7/1/2020 RENT LIMITS Rent Limits -Effective 7/1/2020 SRO Efficiency 1 BDR 2BDR 3 BDR 4 BDR High HOME Rent $528 $705 $774 $1,011 $1,458 $1,775 CDBG Fair Market Rent $528 $705 $774 $1,011 $1,458 $1,775 Maximum rent for HOME and CDBG units. Utility allowances for tenant paid utilities must be subtracted from rent. Example: 1 BDR unit with a $92 utility allowance for tenant paid utilities, rent can’t exceed $682 ($774 -$92). CONSOLIDATED PLAN & AFFORDABLE HOUSING ACTION PLAN ▪Invest City and federal CDBG/HOME funds to create and/or preserve affordable homes, both rental and owner-occupied housing. ▪Support our most vulnerable residents, especially those experiencing homelessness or at risk of homelessness, maintain safe, affordable housing. ▪Ensure equitable growth for all residents and minimize displacement; and ▪Support innovation in housing and streamline processes. FY20 SUMMARY DATA Total Funds Available: $12,460,316 Total Funds Spent in FY20:$12,006,773 Number of Affordable Rental Units/Households Created or Assisted: 1,745 Number of Owner-Occupied Units Created or Assisted: 35 Reports units/households completed in FY20 with FY20 or prior year funds. Program/Fund Funds Allocated Funds Spent Households/ Units Served Affordable Housing Fund $1,000,000 $581,490 172 Housing Rehabilitation Programs $725,000 $689,967 32 CDBG/HOME Housing -Competitive Allocations $731,957 $731,957 57 ICHA Programs -Vouchers and Public Housing $10,003,359 $10,003,359 1,420 Tax Increment Financing, RFC & Local Affordable Housing Requirement (In Compliance Period)NA NA 99 Totals: $12,460,316 $12,006,773 1,780 AFFORDABLE HOUSING FUND Distribution Formula (modified by City Council, July 2019) FY20 Allocation: $1,000,000 % Distribution Amount Purpose 70%$700,000 Housing Trust Fund of Johnson County (Competitive Allocations, Quarterly Funding Rounds) At least 20% ($200,000) designated for Low Income Housing Tax Credit (LIHTC) Projects 7.5%$75,000 Opportunity Fund, formerly Land Banking Fund 7.5%$75,000 Healthy Homes Program 10%$100,000 Programs to assist low income households secure housing 5%$50,000 Reserved for emergent situations AFFORDABLE HOUSING FUND FY20 ACCOMPLISHMENTS Housing Trust Fund of Johnson County (HTFJC) Annually allocate 70% of Affordable Housing Fund to the HTFJC 20% reserved for Low Income Housing Tax Credit (LIHTC) applications ▪Incorporated in 2002, HTFJC is committed to affordable housing. Board consists of those highly experienced in housing finance and review of complex projects. ▪Unique position to leverage outside funding and attract private partnerships that extend the impact of City’s dollars. ▪Provide more flexible financing than is available typically through federal and state programs. ▪Funds offered on a quarterly basis, including one annual LIHTC funding round that precedes the annual application cycle by the Iowa Finance Authority for LIHTC applications. AFFORDABLE HOUSING FUND FY20 ACCOMPLISHMENTS Housing Trust Fund of Johnson County (HTFJC) FY20 Allocation: $500,000 Spent: $182,046 Committed: $317,954 to Cross Park Place 2.0 Project. (Permanent supportive housing for persons who are chronically homeless with a disabling condition.) FY20 LIHC Set Aside: $200,000 Spent: $10,000 Administration (complete funding round and monitor prior projects) Carry over: $190,000 to FY21 LIHTC Funding Round Completed 2 LIHTC projects: Del Ray Ridge and Nex Apartments for a total of 61 new affordable homes. LOW INCOME HOUSING TAX CREDIT (LIHTC) PROJECTS COMPLETED IN FY20 Nex Apartments –671 Nex Avenue HTFJC Allocation: $775,000 32 Affordable Units Estimated Project Cost: $11,113,789 Del Ray Ridge –628 S. Dubuque St. HTFJC Allocation: $800,000 29 Affordable Units Estimated Project Cost: $5,813,496 AFFORDABLE HOUSING FUND FY20 ACCOMPLISHMENTS Programs to secure housing by low income residents: 10% ($100,000) Allocated annually: ▪$70,000 –Established Security Deposit Program through CommUnity Crisis Services (contract signed 2/2020) $27,855 spent, 31 households assisted in FY20. ▪$30,000 –Unspent, allocated to Opportunity Fund at end of FY20. Will continue to work with Johnson County Local Homeless Coordinating Board for a Landlord Risk Mitigation Funds in FY21. Emergent Funds 5% ($50,000) Allocated annually: ▪$2,135 spent in FY20 to assist with Hawkeye Trailer Park relocation expenses. Total funds spent: $17,557 to assist 8 households relocate. Unspent funds at end of FY20 reallocated to Opportunity Fund. AFFORDABLE HOUSING FUND FY20 ACCOMPLISHMENTS Opportunity Fund (former land banking fund) ▪Acquired first vacant lot for the construction of six townhomes in the Lindemann Subdivision, Part 8. Land will be held for a future affordable housing project. 7.5% ($75,000) Allocated annually: ▪$15,000 to Houses into Homes, assisting 72 households establish homes by providing and delivering furniture. ▪$25,000 Center for Worker Justice –COVID relief payments ▪$50,000 Shelter House –Eviction/foreclosure prevention. ($35,000 FY20 funds, $15,000 in FY21 funds) IOWA FINANCE AUTHORITY -$20 MILLION Iowa City residents must apply/determine eligibility for IFA’s program before obtaining City assistance for rent or mortgage payments. IOWA CITY’S COVID RELIEF EFFORTS Shelter House Eviction/Foreclosure Prevention Program $50,000 (Opportunity Fund: $35,000 in FY20 funds, $15,000 in FY21 funds) ▪Emergency rent, mortgage and/or utility assistance up to $3,200 for up to three months. ▪May self certify income and if impacted financially by COVID. ▪First payment must be in arrears, subsequent payments are made on time if applicant self certifies same financial condition exists up to 14 days before payment is due. ▪Assistance provided through the Coordinated Entry system for homeless services. ▪Payment issued to the landlord, mortgagee and/or utility provider. Center for Worker Justice: $25,000 (FY20 Opportunity Fund) ▪Emergency payments up to $600 per household for rent, mortgage, utilities, food, healthcare and/or childcare. ▪Can receive up to two payments in a 12-month period. ▪Must not be eligible for unemployment or stimulus benefits and experiencing financial hardship due to COVID. ▪May self certify income and if impacted financially by COVID. ▪Payment made to vendor. If not possible, the applicant must submit receipts for eligible expenses. City Manager authorized to increase allocation for these two programs and the Security Deposit Program, up to 1.5 times the original allocation, when needed. IOWA CITY’S COVID RELIEF EFFORTS CommUnity Crisis Services (CDBG –CV) Eviction/Foreclosure Prevention Program $246,000 ▪Emergency rent, mortgage and/or utility assistance up to $4,800 for up to six consecutive months. ▪Must document income and if financially impacted by COVID. May self certify assets. ▪First payment must be in arrears, subsequent payments are made on time if applicant self certifies same financial condition exists up to 14 days before payment is due. ▪Assistance provided through the Coordinated Entry system for homeless services. ▪Payment made directly to landlord, mortgagee and/or utility provider. ▪Federal programs require verification of duplication of benefits. 2nd Allocation of CARES funding through IEDA $390,000 to be applied to this program in FY21. HOUSING REHABILITATION PROGRAMS FY20 FUNDS SPENT: $689,967 TO ASSIST 32 HOMES South District’s First Duplex Before ▪The CDBG/HOME and GRIP programs rehabilitated 30 homes with an investment of $509,000 to preserve our affordable housing stock. ▪Completed first two homes of the South District program and sold to eligible homebuyers at 1232- 1234 Sandusky Drive. Estimated monthly housing costs for each home of approximately $510. ▪Completed rehabilitation on one UniverCity home available for sale. One home currently under renovation at 322 Douglas Court. UniverCity –520 N. Dodge CDBG/HOME HOUSING PROJECTS –COMPETITIVE ALLOCATIONS FY20 FUNDS SPENT: $731,957 29 HOUSEHOLDS AND 28 UNITS ASSISTED Before ▪Completed the HOME Tenant Based Rent Assistance program administered by the Iowa City Housing Authority. Assisted 29 households over four years. At end of program, converted all HOME TBRA units to the Housing Authority’s regular Housing Choice Voucher program. ▪Rental rehabilitation projects completed by Successful Living and the Housing Fellowship serving five persons with disabilities and four households under 60% median income. ▪Successful Living and Mayor’s Youth Empowerment Program acquired three properties to provide housing for 11 persons with disabilities. ▪Shelter House acquired a home for permanent supportive housing that serves 5 individuals. ▪Habitat acquired land, constructed and sold 3 homes. IOWA CITY HOUSING AUTHORITY CY19 FUNDS SPENT: $10,003,359 ASSISTED 1,420 HOUSEHOLDS Before Jurisdiction includes:Johnson County, Iowa County & Washington County (north of Hwy 92, but not within Washington city limits) Reports to HUD on a calendar year, not a fiscal year. Last completed reporting year is CY2019. ▪Authorized for 1,215 Housing Choice Vouchers and 83 VASH vouchers for veterans, assisting a total of 1,335 households. ▪Own and manage 81 public housing units and 10 affordable housing units in Iowa City. ▪Awarded 78 new Mainstream Vouchers for persons/households who are chronically homeless with a disabling condition. Leasing started in March 2020 -beneficiaries to be reported in CY20. 57% of all assisted households were elderly and/or disabled * 49% were working families * Less than 1% of assisted households report Family Investment Program (FIP) as their sole source of income. TAX INCREMENT FINANCING, RIVERFRONT CROSSINGS & LOCAL AFFORDABLE HOUSING REQUIREMENTS 99 UNITS UNDER COMPLIANCE IN FY2 0 Before Tax Increment Financing: 25 units under compliance, 1 underway. 12 units –rents set at 120% of HOME Fair Market Rent, 12 units -rent based on 40% of median income where developer pays utilities. Remaining 2 are set at the HOME Fair Market Rent Local Requirement: The Rise,435 Linn Street.33 units for those under 80% median income, rented at the HOME Fair Market Rent. In perpetuity, a requirement to purchase the land from the City. Riverfront Crossings District Affordable Housing Requirement (10 years): 41 units under a compliance period, $756,244 received for payment in lieu (includes a fee for non-compliance). Funds paid in fee in lieu can only be used in the Riverfront Crossings District. FY20 FUNDS SPENT BY CATEGORY FY20 FUNDS SPENT BY CATEGORY EXCLUDING ICHA FUNDS FY20 FUNDS TO BE CARRIED OVER TO FY21 FOR AFFORDABLE HOUSING OPPORTUNITIES DESIGNATED BY COUNCIL Fund/Source Amount Carried over to FY21 Note: Opportunity Fund (Former Land Banking Fund) $595,000 Low Income Housing Tax Credits $190,000 Administered through the Housing Trust Fund. $380,000 available for the FY21 LIHTC funding round. Riverfront Crossings Fee in Lieu Payments $756,244 May only be used in the Riverfront Crossings District. ICHA Affordable Housing Fund $420,000 Reserved for the development/acquisition of low-income replacement housing units. Total: $1,961,244 FY21 FOCUS Continue our COVID housing relief efforts with CommUnity Crisis Services, Shelter House and Center for Worker Justice Consider regulatory changes. Review zoning code to increase density/diversity of housing in all neighborhoods ▪Adopt and Implement the South District Form Based Codes – concept to be used in future rezonings of greenfields/outlying areas. ▪Policy Review: Consider HBA & Affordable Homes Coalition input to increase density and encourage affordable housing. ▪Initiate a Comprehensive Plan Amendment to increase density/diversity in single family residential zones. tracy -hightshoe@ iowa -city.org erika -kubly@iowa -city.org 319.356.5230 https://www.icgov.org/actionplan https://www.icgov.org/affordablehousingactionplan IOWA CITY NEIGHBORHOOD & DEVELOPMENT SERVICES