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HomeMy WebLinkAbout11-17-2022 Housing & Community Development CommissionHOUSING & COMMUNITY DEVELOPMENT COMMISSION (HCDC) November 17, 2022 Regular Meeting - 6:30 PM Iowa City Senior Center Assembly Room 28 S Linn Street AGENDA: 1. Call to Order 2. Consideration of Meeting Minutes: October 20, 2022 3. Public Comment of Items not on the Agenda Commentators shall address the Commission for no more than 5 minutes. Commissioners shall not engage in discussion with the public concerning said items. 4. FY24 Legacy Aid to Agencies (A2A) Funding Discussion During this meeting, HCDC will discuss applications, rankings, and funding for the FY24 Legacy A2A cycle. Staff recommendations have also been provided to aid discussion. HCDC will consider a budget recommendation to Council at their January 19, 2023 meeting. Council will provide final funding allocations in May of 2023. 5. Consider Approval of FY24 CDBG/HOME and FY24 Emerging Aid to Agencies (EA2A) Application Materials HCDC will consider approval of the FY24 CDBG/HOME application and application guide as well as the FY24 Emerging A2A application. HCDC will need to formalize the application materials at this meeting for staff to prepare for the upcoming allocation period. 6. Staff & Commission Updates This item includes an opportunity for brief updates from staff and Commissioners. Commissioners shall not engage in discussion on updates. 7. Adjournment If you will need disability -related accommodations to participate in this program or event, please contact Brianna Thul at bthul(o.iowa-city.org or 319-356-5230. Early requests are strongly encouraged to allow sufficient time to meet your access needs. Upcoming Housing & Community Development Commission Meetings Regular: January 19, 2023 (No December Meeting) � r � 'puma CITY OF IOWA CITY 410 East Washington Street Iowa City. Iowa 52240-1826 (319) 356-5000 (3191 3S6-5009 FAX www.lcgov.org Housing and Community Development Commission November 17, 2022 Meeting Packet Contents Agenda Item #2 • October 20, 2022 Draft HCDC Meeting Minutes Agenda Item #4 • November 1, 2022 Staff Memo - FY24 Aid to Agencies Staff Scores and Funding Recommendations • FY24 HCDC A2A Preliminary Rankings by Score • FY24 HCDC Scoring Summary • FY24 HCDC Funding Summary Agenda Item #5 • FY24 CDBG/HOME Application • FY24 CDBG/HOME Application Guide • FY24 Emerging Aid to Agencies Application Agenda Item #6 • Public Records and Open Meeting Training Opportunity Agenda Item #2 MINUTES PRELIMINARY HOUSING AND COMMUNITY DEVELOPMENT COMMISSION OCTOBER 20, 2022 — 6:30 PM FORMAL MEETING THE CENTER ASSEMBLY ROOM MEMBERS PRESENT: Kaleb Beining, Maryann Dennis, Michael Eckhardt, Karol Krotz, Nasr Mohammed, Becci Reedus, Kyle Vogel MEMBERS ABSENT: Elizabeth Marilla-Kapp (resigned 10/20/22), Jennifer Haylett STAFF PRESENT: Erika Kubly, Brianna Thul OTHERS PRESENT: Genevieve Anglin (UAY), Lucy Barker (Houses into Homes), Jon Brown (FLP), Crissy Canganelli (Shelter House), Delaney Dixon (DVIP), Charlie Eastham (CWJ), Michelle Heinz (Inside Out Reentry), Kai Kiser (FLP), Chelsey Markle (Arc of SE Iowa), Salina McCarty (Houses into Homes), Talia Meidlinger (UAY), Angie Meiers (CommUnity), Christi Regan (HACAP), Adam Robinson (RVAP), Mazahir Salih (CWJ), Jennie Schmidt (IC FMC), Natasja Schroeder (Houses into Homes), Daleta Thurness (BBBSJC), Barbara Vinograde (IC FMC) PRESENT ON ZOOM: Theresa Burns (Habitat), Shelly Zabel (Community and Family Resources) RECOMMENDATIONS TO CITY COUNCIL: None. CALL MEETING TO ORDER: Beining called the meeting to order at 6:30 PM. WELCOME NEW MEMBERS: Eckhardt introduced himself, he has lived in the Iowa City area for a while now and has been in the Johnson County area for 11 years. He is interested in the subject of affordable housing because when they moved back to Iowa for family during the recession, they didn't have a lot of money and came back to stay with family and affordable housing was a very serious issue for him early in his life. Today he is a mechanical engineer and a design professional for construction where he designs mechanical systems for buildings and is actually working on at least one of the projects for Shelter House right now. CONSIDERATION OF MEETING MINUTES: SEPTEMBER 15, 2022: Reedus moved to approve the minutes of September 15, 2022, Vogel seconded the motion. A vote was taken, and the minutes were approved 6-0. PUBLIC COMMENT FOR TOPICS NOT ON THE AGENDA: None. Housing and Community Development Commission October 20, 2022 Page 2 of 6 LEGACY AID TO AGENCIES (A2A) QUESTION & ANSWER (Q&A) DISCUSSION: Krotz appreciates the agencies who had questions and provided answers. The Commissioners had a few questions that were very relevant, but she did notice that some of the responses didn't seem real direct. She asked that when a question is asked, just provide the answer in one sentence, and use the rest of the allotted space to explain in more detail because sometimes it was difficult to draw the answer out. Reedus noted two or three meetings ago they went through the budget and the joint funding application process and made some recommendations. Was there ever a response from United Way or were any of recommendations incorporated. Thul noted they did add in the question about staff turnover, but they couldn't make all changes. Reedus noted one of the things she has come to realize is the there's a variety of ways in which the agencies answered financial questions, some with profit and loss statements which are not her favorite thing to get, she would prefer to see end of year financial statements that has been approved by the Board so that she knows that the Board is watching over the financial aspect of the organization. She noted form C actually asked for budgeted information and so there are some agencies that are giving budgeted figures as opposed to actual revenue and expenditures, which just makes it even worse, because then they don't have the same kind of information from each organization. Reedus also agrees with Krotz that a couple, not all, of the answers to the questions were excellent and she appreciates the organizations that went to great lengths to answer those questions, it was information that they needed to make some better decisions. However, there are a couple that she was even more confused after reading some of the answers. She had to go looking at websites, read GuideStar, pull the latest 990 to get the information she was seeking. Reedus also has a question regarding the lowest funding level for legacy agencies is 15k and they are bound by that, but they don't necessarily have to recommend any funding to an organization. Kubly confirmed that was correct. Reedus wanted to thank staff again for doing the application summaries, it's very useful, even if it actually might draw more questions. One concern is some of the unit costs that they're seeing, and she has concerns for agencies that are providing similar services they might not be paying similar unit costs per agency, so she'd like to see them get to a point where they're paying more per unit cost so it's more fair to an organization and doesn't penalize one for being a large organization versus a smaller organization. If they're paying that unit cost, whether that's for food, whether it's for childcare, whether its per unit of situation in a youth type of group, she thinks that it would be useful to try as maybe some of those unit costs were not correct, not because staff did them wrong, but because of the numbers that the agencies provided were agency numbers versus program numbers. Krotz asked if there a standardized format for the answers to follow with in terms of continuity, whether they're providing answers for the agency at large or the program or the project that their application is for specifically. Kubly replied not specifically, she feels they should be describing how they're going to use the funds and basing their application on that which varies across agencies, some agencies might be only using funds for a specific program and some agencies might be using it for more broader operational expenses. Mohammed had a comment about Habitat for Humanity and the last item on the response where they indicate that the cost increased by 26% and all that increase is applied on the on the low-income families who receive the benefit from the Habitat for Humanity. Before the pandemic, they had the ratio 50/50, they would draw a loan from a bank and then they give the individual about 50% of the money without any interest, but now the ratio has been increased significantly, probably 75% loan drawn from the bank and that 25% from Habitat. Also, there is some closing fees, and it seems like this program has become hard to afford and the question is how they can help Habitat for Humanity to help the people in the community, specifically the low-income families, some of them are very low income and the wages are not growing in the community to match that increase on the costs for this program. Housing and Community Development Commission October 20, 2022 Page 3 of 6 Krotz was wondering if they want to go through each agency and ask specifically if anyone has any questions because she would hate to see this part of it draw to a close so soon it seems like they haven't really batted the ball around. Dennis noted they have all gone through all the applications and have asked their questions and got answers so maybe not a lot of value in going through each agency during meeting time. If there are specific questions on answers received, now is the time. Vogel asked if it possible for the Commission to also find out what organization's funding has been from the United Way. Are they only asking Iowa City for money or are they are they hitting United Way and Coralville equally? Kubly replied they can get those numbers, their requests for each agency should be in the application. Vogel asked if they could get the funding requests for the past couple of years, staff replied they could do that. Dennis noted that those figures are what they requested and not necessarily what they received. Reedus reiterated the one rule is they have to fund a minimum of $15,000 but they don't necessarily have to increase an agency and they can decrease an agency allocation if they've gotten information that shows that for whatever reason, unit cost is more or perhaps Iowa City is too heavily funding something or because of decisions made a couple of years ago, there is nothing that says they have to give an increase to an organization. Reedus noted she is not available during the day right now until 5:30pm so she didn't even get this letter on Center for Worker Justice in time to read it before this meeting so could staff summarize what is in the letter. Reedus doesn't think it is fair not to go through this at the meeting. Kubly stated earlier this week an article came out in the newspaper about the Center for Worker Justice, essentially, they had to pay an IRS penalty for delay in filing taxes and the article said that they had lost their nonprofit status for a period of time as a result of that. Staff reached out to them with a few questions about compliance related to Aid to Agencies and the other funding that the City provides. One was how they would comply with the City's audit policy as the City has different levels of audit requirements for agencies that receive City funding. If an agency had a total budget of $500,000 or more, they'd have to submit an audit prior to receiving the legacy Aid to Agency funds, which is why staff asked how they are going to prepare to comply with this if they were to receive funding. The Center for Worker Justice has hired an external accountant and will would work with them to meet the audit requirements. Staff is also meeting with them for technical assistance because the agency is receiving federal funds through the ARPA program. The second question was what changes the Center for Worker Justice has implemented with their accounting and financial management procedures to ensure ongoing compliance. They responded that they're using a professional accountant agency to complete their 990 and resolve those issues and they're shifting from volunteers doing accounting to professional reporting services. The third question was about the timeline of losing their 501 C3 status and when it was reinstated, and to ask them to provide documentation that it was in place, since that impacts their eligibility for funding. Essentially, they said they didn't actually lose their status, it was just at the time they revoked it and then they reaffirmed the status, so it was just like timing of the submission, it was retroactively reestablished. Reedus states it would have been better for HCDC to find this out directly rather than in the newspaper. Dennis is a little concerned that Center for Worker Justice is now a legacy agency and they're proposing that they want to meet with the City for technical assistance to make sure they're in compliance with the regulations. She would have hope that they would have been in compliance all along. Kubly stated when she submitted these questions to the Center for Worker Justice, she was also asking not only about the Legacy application, but also the federal funds that they're receiving through ARPA. Staff had recommended that they do technical assistance to make sure they're meeting the uniform administrative requirements for federal funding, that was more related to the federal portion. Housing and Community Development Commission October 20, 2022 Page 4 of 6 Reedus noted one of her questions for Center for Worker Justice was they said that they distributed about a half a million dollars, but that wasn't reflected in their financials. Should that been run through the books? That would that have put them over the mark for an audit. Vogel noted there is a disconnect between the description of My Home to Yours distributing $500,000 to individuals and families but because the article talks about $65,000 but that was 2020, so maybe it's 2020 versus 2021? Reedus thinks the program is spanned over multiple years, two to three years, but that wasn't in their budgeted figures. Krotz asked if they provided a budget, Dennis noted it is in the joint application Reedus assumes next month is where there's going to be more comments because there's going to be a lot of discussion about why people are scoring the way they're scoring and why they made their recommendations. Reedus asked what will happen when staff receives the information. Thu] states that they will compile individual scores and recommendations into a summary. Depending on what the data shows, they can include averages and rankings. Staff will put together a selection of things for Commissioners to consider. Dennis thought it was interesting that the Neighborhood Centers talked about the change in computer programming, Windows 10 to Windows 11 and nobody else did. That could be a big deal for a lot of organizations. Vogel stated it may not be a problem for some if they haven't upgraded their equipment, the Windows 11 upgrade is just for newer PCs, less than five or six years old, if someone has a 10- or 12- year-old PC then they will have to replace the PC in order to do the upgrade. Reedus commented that she would hope the organizations would have some sort of budget for those expenses and that it wouldn't be a surprise for an organization. LEGACY AID TO AGENCIES NEXT STEPS — INDIVIDUAL SCORING AND FUNDING RECOMMENDATIONS: Thul noted in the last page of the agenda packet is a calendar to give the benchmarks of what's upcoming for the Commission. In the packet she mailed out, a copy of the calendar is in there as well along with a copy of the score sheet. Thul will follow up after the meeting and send an electronic version as well. The next step is to start looking through the applications and scoring and making funding recommendations based on those scores. Staff will share scores and funding recommendations November 1, so the Commission has time to think about that in reference to their own scores. November 8 is when staff would like scores to be submitted to give them time to put all the scores together and get the information for everyone to look at for the next meeting. If staff don't have scores by this date it will be difficult to compile and produce useful information for the November HCDC meeting. Krotz asked in terms of scoring, will there be something in the packet that will guide them through how they are to score. Staff will provide the score sheet and the document that includes narrative descriptions that guide the scoring. Reedus explained that the questions are broken out into levels with points assigned to each level. Staff will supply the score sheet and Commissioners can handwrite answers, submit electronically, or drop it off to staff. Thul also shared that staff summary sheets were created to match the score sheets and that those should help take Commissioners through the scoring. STAFF & COMMISSION UPDATES: Staff showed a video about The Housing Fellowship as this video was something discussed back in April with the Commission when it was Community Development Week. This video was made to highlight the CDBG/HOME funded work in Iowa City. Thul noted she got a message from Elizabeth Marilla-Kapp that she's resigned from the Commission. ADJOURNMENT: 4 Housing and Community Development Commission October 20, 2022 Page 5 of 6 Krotz moved to adjourn, Reedus seconded the motion, a vote was taken, and the motion passed 7-0. Housing and Community Development Commission October 20, 2022 Page 6 of 6 Housing and Community Development Commission Name Terms Exp. 7/21 9/15 10/20 Beining, Kaleb 6/30/24 X O/E X Dennis, Maryann 6/30/25 X O/E X Haylett, Jennifer 6/30/25 X X O/E Krotz, Karol 6/30/24 O/E X X Marilla-Kapp, Elizabeth 6/30123 X O/E ' Mohammed, Nasr 6/30/23 X X X Reedus, Becci 6/30/24 X X X Vogel, Kyle 6/30/23 O/E X X Eckhardt, Michael 6/30/25 X Attendance Record 2022-2023 *Resigned from Commission Kew X = Present O = Absent O/E = Absent/Excused --- = Vacant 1 f i CITY OF IOWA CITY UNESCO CITY OF LITERATURE CITY OF 1 O WA CITY MEMORANDUM Date: November 1, 2022 To: Housing and Community Development Commission From: Brianna Thul, Community Development Planner Erika Kubly, Neighborhood Services Coordinator Re: FY24 Aid to Agencies Staff Scores and Funding Recommendations Agenda Item #4 The purpose of this memo is to provide staff composite scores and funding recommendations for the FY24 Legacy Aid to Agencies (A2A) funding round. Commissioners may consider this information during their independent evaluation of the submissions. The table attached contains staff scores, funding recommendations, and a five-year funding history for the Legacy A2A program. Staff Comments on Funding Recommendations: In general, staff funding recommendations were developed by awarding the largest funding increases to the highest scoring submissions. The following are instances where members of HCDC may benefit from additional explanations to inform the decision -making process. CommUnity and United Action for Youth Commissioners will observe that the recommendations show a funding decrease for CommUnity and United Action for Youth compared to the FY23 Legacy A2A allocations. This is due to a decrease in the FY24 requests submitted by the agencies rather than a staff -imposed reduction in the funding recommendations. Staff recommend full funding to the agencies at their FY24 request. Inside Out Reentry In FY20, the A2A budget was increased and as a result, Inside Out Reentry began receiving funding that was a comparatively large portion of the agency's total operating budget. A majority of Legacy Agencies are funded at a level between one and five percent of their agency budget, and the FY24 request from Inside Out Reentry was over 20% of their total budget. Staff recommend a slight decrease in funding from FY23 levels due to the size of the agency budget and the percentage of the request. The decrease in funding recommended is less than $3,000 and should avoid any significant disruptions to agency operations. Community and Family Resources (formerly Prelude) Staff support the mission of the agency, but do not recommend funding Community and Family Resources based on the quality of the application and use of funds. The proposal was one of the lowest scoring applications and some of the narrative responses did not adequately address the questions. Additionally, the agency proposed using funds for security deposit and rent assistance, as well as facility repairs. While the Legacy A2A program is designed to provide flexible funding for operations, City resources for the program are limited and there are other opportunities for funding for housing through federal CDBG or HOME programs, as well as the city's Affordable Housing Fund. Lastly, the application was submitted after the deadline of 5pm due to technical difficulties. November 1, 2022 Page 2 Center for Worker Justice Staff support the mission of the agency, but do not recommend funding for Center for Worker Justice based on the quality of the application, use of funds, and other funds in place for proposed services. The proposal was one of the lowest scoring applications and issues arose regarding the agency's financial capacity and oversight. Additionally, some services proposed to be provided with Iowa City funds are ineligible, such as work with communities outside of Iowa City. Center for Worker Justice has been allocated funds for wage theft through the American Rescue Plan Act (ARPA) and additional need has not been demonstrated. Lastly, the application was submitted after the deadline of 5pm due to technical difficulties. New Legacy Agencies Of the three new Legacy Agencies, staff recommend funding Houses into Homes and Dream City (Dream Center) at the minimum award amount of $15,000. Free Medical Clinic and Neighborhood Centers of Johnson County The largest increases in funding compared to the previous fiscal were allocated to Free Medical Clinic and Neighborhood Center of Johnson County. While not fully funded, the proposals were both tied for the third highest scoring submissions. Conclusion Iowa City is fortunate to have many qualified nonprofit organizations serving the community. Although these decisions are challenging, staff feel that the information provided is fair, objective, and reasonable. Commissioners are reminded that the deadline to submit independent scores and recommendations to staff is November 8, 2022. Staff will compile scores and post them in the meeting packet on November 10, 2022 ahead of the November 17, 2022 HCDC meeting. Attachments FY24 Staff Legacy Aid to Agencies (A2A) Recommendation 9OgO1NO�iTmmOmmmm mm0mrdd fO$ SpO • 0 S��mz c S� 8��im o8 �Po s: PPe4a d'a 2�a eeT ie a d°e C�d'd'^p�d°a epp �C SS0Sj0 SSSSnmmrOgmOSgjOOM 6LL mde d'A de pw NNNN� .ZmZZ.O G�i l2 c L U O a C Q j rmmONiO(�OSp�r(�. m 4GE 0 mm�pr rvFiry xryNOONON 00„ rc u o�8o$58��8888p888o888 g p �Op� Oi nY Nt7N CCCCCCnCC mmt'�NmN�nmO CC yW P i co 0 4 nrPnNnm� y pZ�ZZ�yw ui 6 N$w a BmS�v�i�n�m m�a �iaQnp� o rv�n mZn22�w vi 6 � O„ 1p mwmmmo$immmrnm�i r ^� i yO q $OjQQ OIYiN�I�i�S O�Q�QQ�p 9i m.N 1�NOOrym Nry�020220✓„ Q m +SSSMSSS>SSSSOSOSaSQQ O SS8 �O CC n nZNZZmNb a U � a _ o i rc t C i x E E .Y yy $'YD 033� 5 iai 3q t g' 8 0 m 0 3 m a c »wu�E U o `n c E� E=� aac�mn a a Q UNILZ ��QJmrPCQi—LLSS�UUSF a it E d Y m C N O al O O O O O O O O O O O O O O O O O O O O 0 Q p O 6 O N O O o O O Cl) (n D) N CD N D) CDo Z C O (fl O O) O O W O D7 W OD cD (D W OD IZ h Q) In I� U. w O 0 O O (D O O ap N O a0 O O V I� r O O O O O Q C O O W (n O O (n V N O O 00 (O (D N r O M 61) O Z O Ih 0 0 (D O (n N � O M O O (n (D (D (D N O h O O O D) (D O-1 W r- pl V M O (D W 17 � h (n r- (n (Yp M r O M (D M M N N N N N CO M N N CO M R CO (n (n (n En (n (n (n (n (n (n (n CO (n (n (n (n (n CO i C d T M j Q O E O C EVk C 0 • 2 IL • ' N O co O O O O LO 0 0 0 0 0 f.- O O O O O OD C) (D d O O M O O O O N O 0 0 0 0 0 0 0 � 0 0 OD O O O co • 7 O O O (n O O O O O O O O O Ln 0 0 I- O O Q D) D) O O V (n O O� u O ft (zt O f- O (n (n 0 � O O V (D co C j N M () N M V V co N M N V V En V3� U3 fn En En En v En co En En H3 En En H3 fn En V3 V3 En U3 (D C4 69. }■' lL d d7 L N (n (n V _ O w (D M N N N _ CD CD (0N N N Q m d1 Q) O) O CO w W OD w CO W OD W W ap W W ap n r (n (!7 Z a U m ■ `o U u 2 fn a _J 0) d • 21 N • C J O p U C N V N 3 v c L c co r J O O w E j a a O u 2 O O w Y` o N 0 O 3 ca Oro w ° CD L LL .0 0 -p j0 C m= O 0) L ILO jY O r V 0) p _V C Y V Y 2 O O a) Q O r p a) (n J O () C C O t a i N d N O CL Q E J m ). E a) a m N �` y c J Q a O U (° a) E c U' (Lid z U (L 0 D Co V Q= 0f_ S Q= 0 (L U U= F \E&�E2! .. SI ■§§ (:§( / }�\.\ h§ |!.{..| .}.|\| �` i ! ; •_! |.\..§ .;.|§� \\} \( a§/ \{)/�� | � g8|g\j Agenda Item #5 FY2024 CDBG/HOME Application City of Iowa City ■ Review the Application Guide that follows this application form below. ■ Only one project proposal may be submitted on each application. Please use separate applications for each project proposal. HUD defines a project as a site or sites together with any building (including a manufactured housing unit) or buildings located on the site(s) that are under common ownership, management, and financing and are to be assisted with federal funds as a single undertaking. The project includes all the activities associated with the site and building. For direct assistance activities (example: downpayment assistance), project is defined as assistance to one or more families. ■ Submit completed applications online at www.icgov.org/actionplan or a PDF version to bthul(a)iowa-citv.org. Emailed applications must receive a confirmation email from City staff before the application deadline to be considered for funding. Online submittals are preferred, but you may send your application by certified or registered mail; overnight delivery service (FedEx, UPS, etc.); or deliver in person if arrangements are made with a Neighborhood Services representative to ensure receipt. Please call 319-356-5240 to make drop off arrangements prior to arrival. ■ Should you have any questions while completing the application contact Neighborhood Services staff at 319-356-5240 or by email at brianna-thul@iowa-city.org. � r �1 .:1IItrJkp� CITY OF IOWA CITY EQUAL HOUSING OPPORTUNITY Section 1 — General Information and Project Need Unique Entity ID 1. Lead Organization/Agency Number (replaced Organization Type DUNS Numbers) (Mark all that apply) Name: Address: 501(c)3: Website: Public: Application Contact App. Workshop Attendance Date: For Profit: Name: Faith -Based: Title: CHDO: Phone: Did not attend: Other: Email: Is the individual or entity eligible to receive federal funding (i.e., not listed as an excluded party in the SAM database. An excluded party is any individual or entity that has been suspended or debarred from doing business with federal funds)? Is there a secondary applicant: Yes/No Is applicant (including partners, co -applicants, etc.) currently in compliance with all federal, state, and local laws, rules and regulations, including CDBG and/or HOME funded projects? Yes If "NO" or currently in litigation, provide the name of and explain the No basis for the case. 2. Project Project Type Mark all that appI Activity Type Mark all that apply) Name: Rental Housing Acquisition Address: Owner Housing Rehabilitation City Public Facility New Construction State Zip CHDO Operations Direct Assistance Additional Addresses Yes No Other Other 3. Project Description (include purpose, benefits, and specific activities of project) 4. Mark goal from City Steps 2025 primarily addressed by this application Increase affordable rental housing units Briefly explain how the project will meet this goal. Provide Tenant -Based Rental Assistance Support homebu er activities Rehabilitate/improve owner -occupied housing units Rehabilitate/improve renter -occupied housing units Serve homeless / reduce homelessness Provide public services Improve public facilities Improve public infrastructure & address climate action needs Support economic and workforce development Section 2 — Budget and Resources Program regulations encourage leveraging non-federal funds. Non-public funds are especially encouraged. HOME funds require a minimum 25% match. Funding terms including type of assistance and affordability period are determined upon award; evidence of funding commitments is required for project underwriting. Source of Funds must match Use of Funds. Please attach a scope of work or estimate for any project that involves rehabilitation or new construction to demonstrate the cost reasonableness of any proposal. 5. Source of Funds Category Amount Description(s) of Funds Status* Requested CDBG/HOME funds $ Previous Award $ Other local funds $ State funds $ Other federal funds $ Applicant Funds (Equity) $ Applicant Loan $ Other Private Funds $ Other: $ Total $ Non-CDBGIHOME Match % In -Kind Contributions Materials $ Labor $ Other: $ Describe community partnerships or volunteers that will contribute to project 'Statuses include pending (P), committed (C), received (R), or applied for (A) 2 6. Use of Funds Description of Work Land Acquisition $ Building Acquisition $ vSite Improvements $ -a Rehabilitation $ = Construction $ Other $ Professional Fees $ a Construction Finance $ o Permanent Finance $ Developer Fees $ W Reserves $ Other $ Total $ As noted above, please attach estimate or documentation of how these costs were determined. 3 Section 3 — Feasibility and Community Impact 7. Anticipated Income Levels of Beneficiaries Unduplicated Special Populations (If applicable, mark one "presumed benefit" category if required for assistance) Households Persons 0-30% AMI Domestic Violence Victims 31-50% AMI Elder) 51-60% AMI Homeless 61-80% AMI Persons with Disabilities Over 80% AMI Migrant Farm Workers Total Persons with AIDs Basis for Estimates Other as defined in 24 CFR 570.208(2) AMI = Area Median Income, see www.icgov.org/actionplan. 8. Housing Projects (Required for Housing Projects Only) Rental Housing Owner Housing Number of Units Proposed Contract Rent Number of Units Proposed Sales Price $ $ 9. (Required for Housing Projects Only) One of the City's goals is to encourage the distribution of housing and residential facilities throughout all neighborhoods in Iowa City. Explain how your project meets this goal and support your explanation with data. Note: Heat map of City's existing subsidized housing under a compliance/affordability period attached 10. Vacancy and Property Management (Required for Rental Housing Projects Only) Number of people on the housing waiting list for your organization Total number of units owned by the organization Total number of units currently vacant Total vacancy rate (vacant units divided by total units) Number of federally funded units vacant (units from previous CDBG/HOME projects currently in a period of affordability) Does your organization use a property manager? If yes, please indicate the entity and provide a point of contact. 4 11. Proposed Project Timetable (include milestones such as rezoning, construction schedule, application(s)for other funding, and expected commitment dates. Date Milestones July 1, 2023 Beginning of City Fiscal Year and Project Start Date 12. Describe your agency's approach to serving LMI households and how this promotes efficient use of funding in the long term. 13. Describe how the project will provide for affordable housing or public assistance at rates or prices lower than those in the existing market: 14. Will the project proceed if less than full funding is awarded? If yes, describe. If there are several components, describe how they will beprioritized: 5 Section 4 - Capacity and Applicant History 15. CDBG and/or HOME funds received and status of the project(s) undertaken Timeframe Budget Expended through Date Project 2023 Completed July 1, 2017 — June 30, 2018 $ $ July 1, 2018 — June 30, 2019 $ $ July 1, 2019 — June 30, 2020 $ $ July 1, 2020 — June 30, 2021 $ $ July 1, 2021 —June 30, 2022 $ $ July 1, 2022 — June 30, 2023 $ $ Identify any prior year funds that remain unspent and indicate the number of projects pending completion. If funds remain unspent from prior years, justify this funding request. Do you anticipate receiving and/or expending over $750,000 in federal funds in a single fiscal year? *This includes CDBG, HOME, and other federal funds such as ESG. 16. Describe your organization's experience and capacity to administer the proposed project. Include the roles of key staff who will implement the project and their qualifications (excludes volunteers, board members and consultants). 17. Does your agency have Yes written policies in place that comply with federal regulations No in 2 CFR 200 for topics such as procurement, financial management, and segregation Unsure of duties? 18. What is the demand for the proposed project and how does your organization verify that data? If another organization provides the same service, explain why both projects are needed to address the need. 0 19. Describe the strategies your agency uses to serve those in need and an overview of the organization's recent activities, including projects underway. 20. Describe any identity of interest (101) relationships with the applicant and/or project owner, i.e. General Partner has a financial interest in the construction company, etc. 21. Describe how you will incorporate sustainability initiatives into your project to help carry out the City's Climate Action Plan. 22. Provide a description of your primary target population(s). Explain how your agency promotes racial equity and inclusivity for marginalized populations (including people of color, LGBTQ, immigrants/refugees, individuals with disabilities). 7 Section 5 - Required Documentation It is recommended that applicants submit as much information as possible with the application to facilitate a full project evaluation. The table below reflects the minimum requirements for each application. If an award is granted, additional documentation may be requested prior to entering an agreement with the City. Description Required W-9 Form (Request for Taxpayer ID # & Certification) Yes Board of Directors and Organizational Chart. Please include a complete list Yes of board members and their contact information. Additionally, please submit an organizational chart. Unique Entity ID (UEI). Provide documentation of your UEI. Please note that Yes UEI replaced DUNS numbers in 2022. This transition allowed the government to streamline the entity identification and validation process, making it easier and less burdensome for entities to do business with the federal government. Find your UEI: https://sam.gov/contenVentity-information Organizational Status. Go to https://sos.iowa.gov/search/business to look Yes up the organization applying for funds. Provide a copy of the Business Entity Summary screen. Financial Commitment Letters. Please attach the following for committed Yes funding sources listed in Section 2. HOME requires evidence of firm commitments before project agreements may be signed. 1) Letters of intent from lending institutions for private financing. These must be on the lending institution's letterhead. 2) Commitment letters from all other sources (i.e. grants, loans, etc.). Each letter must include the value of the commitment; the interest rate & term; the purpose the funds can be used for; and any time limitations related to the commitment. 3) Evidence of capital for private equity such as current bank statements showing the funds Evidence of Fiscal Capacity. Please submit your most recent audit (if Yes applicable). If you have already submitted your most recent audit to staff for other purposes (e.g., monitoring for other projects under compliance), there is no need to resubmit. Applicants that do not receive an annual audit may submit sufficient alternative information, such as financial statements. 0 Evidence of Organizational Capacity. Up to four pages of additional Yes information about the capacity of the organization may be included. Examples of possible evidence may be resumes of key staff, additional descriptions of organizational activities, or other relevant information. CHDO Certification Letter. If applying as a CHDO, please include evidence Yes, if applying for CHDO of CHDO status. specific funds Please note that a CHDO's status must be recertified before committing funds per HOME rules. CHDO applications are due February 14 annually to allow time for the City to review the submission ahead of the fiscal year and potential commitment of funds. Additional CHDO recertifications may be required during the year if any supplementary funds are to be committed. Scope of Work. Include a write up of the work to be completed and include Yes, if activity includes copies of the cost estimates that are the basis of the uses table. construction or rehab work. Pro forma. Acquisition, rehabilitation, or new construction of rental housing Yes, if the project includes project MUST include completed pro forma. Excel format is provided by the rental acquisition, City. Applications for rental housing projects without the City's pro forma will rehabilitation, or new not be considered. See applicant guide for proforma instructions. construction of rental housing Letters of Support. If applicable, attach letters of support for the proposed No. project. 0 Agenda Item #5 t r „044% Applicant Guide CITY OF IOWA CITY Iowa City CDBG and HOME Programs This guide outlines requirements for applicants seeking Community Development Block Grant (CDBG) and/or HOME Investment Partnership (HOME) program funds through the City of Iowa City. The CDBG program helps develop viable urban communities by providing decent housing and suitable living environments, and expanding economic opportunities, principally for persons of low and moderate income. The HOME program helps provide safe and decent affordable housing. Both programs are funded by the U.S. Department of Housing and Urban Development (HUD). Notes to applicants 1) Housing and Community Development Commission (HCDC) strongly encourages all applicants to attend the CDBG/HOME Applicant Workshop (see Application Timeline below). 2) First consideration for funding will go to housing (not including Community Housing Development Organizations [CHDO] operating expenses or set aside) and public facility projects of $50,000 or more. Top ranking applications will be considered first. 3) The application must be complete for HCDC consideration. HCDC will not review any materials submitted by the applicant after the deadline unless requested by HCDC. 4) Please review the City's Strategic Plan (www.icgov.org/strategicplan) and City Steps 2025 (https://www.icgov.org/actionplan) to determine if your project fits into the identified priorities. If so, please identify in the application. Application Timeline The following is a tentative timeline of the application process. Dates are subject to change. Visit https://www.icgov.org/actionplan for current information or contact staff at 319-356-5230. 1) Applications open 2) Virtual Applicant Workshop 3) Virtual Applicant Workshop 4) Applications Due 5) HCDC Meeting — Question/Answer with Applicants 6) HCDC Meeting — Recommendations December 28, 2022 January 10, 2022 at 11:00 AM Upon Request January 30, 2023 at 12 PM February 16, 2023 at 6:30 PM March 23, 2023 at 6:30 PM PART I. Estimated Federal Funding Available Federal funding has not yet been awarded, so numbers will be subject to change. However, the City of Iowa City expects to receive approximately $1,500,000 in FY24 federal funds (including entitlements and program income) from HUD. The City will approximate the amount of funds available for allocation to recipients after Council set -asides have been removed for economic development, housing rehabilitation, CHDO reserve, CHDO operating, administration, neighborhood improvements, and Aid to Agencies (public services). FY24 Iowa City CDBG and HOME Applicant Guide PART II. Application Requirements and Considerations Applicants should evaluate the following HUD guidelines as well as City policies contained in City Steps 2025 when considering the proposals, funding estimates, and time schedules for achieving their project goals. Program Purpose All proposals must benefit low -moderate income individuals. The specific ways that a project must accomplish the program's purpose (also called a National Objective) varies by program. CDBG Funds. At least 51% of those befitting from the program (persons or households) must have incomes at or below 80% of the area median income (AMI) based on household size (see table below). For programs that benefit individual households, all households must earn less than 80% of the median household income. Applicants must document that its purpose is being met. CDBG allows households to self -certify their income with their signature, though a percentage of beneficiaries must also provide source documentation such as pay stubs or a Social Security statement to verify the household's income. The City must approve this percentage based on the program and number of beneficiaries - usually set between two and five percent. This source documentation must be kept in the client's file and is subject to monitoring when City or HUD staff review the client files. HOME Funds.All activities undertaken with HOME funds must benefit households below 80% AMI, and nearly all assisted units must be targeted to households below 60% AMI. Median household income limits for projects in Iowa City are as follows: (effective 6/15/2022) Household Size Extremely Low Income Very Low Income Low Income 30%Median Income 50%Median Income 60% Median Income 80% Median Income 1 S22,900 $38,150 $45,790 $61,050 2 $26,200 $43,600 $52,320 $69,800 3 $29,450 $49,050 $58,860 $78,500 4 $32,700 $54,500 $65,400 $87,200 5 $35,350 $58,900 $70,680 $94,200 6 $37,950 $63,250 $75,900 5101,200 7 $40,550 $67,600 $81,120 $108,150 8 $43,200 $71,950 $86,340 $115,150 CDBG allows its purpose to be satisfied by meeting the following criteria: a. The activity must be carried out in an area or neighborhood consisting predominantly of low - moderate income persons, or the activity must involve facilities or services designed for use by predominantly low -moderate income persons. Demographic information is available at the Neighborhood & Development Services Department. In some instances, applicants may need to conduct a survey of the potential beneficiaries to determine income eligibility. b. Housing that is being improved, as part of a project must be occupied by low -moderate income households. C. Job creation or retention as an activity must involve employment of predominantly low and moderate -income persons. FY24 Iowa City CDBG and HOME Applicant Guide Eligible Activities Activities that can be carried out with CDBG funds include, but are not limited to, the following: • Acquiring real property, demolishing structures and clearing property, and relocation assistance for residents of property being demolished. • Rehabilitation or preservation of residential and nonresidential structures, including weatherization, painting, accessibility improvements, emergency repairs and comprehensive rehabilitation. • Construction of public facilities and improvements, such as water and sewer facilities, infrastructure repairs and installation of curb ramps, construction of neighborhood centers and installation of accessible playground equipment. Activities that can be carried out with HOME funds include the following: • Acquisition of real property (including Homeownership Assistance), payment of "soft" costs associated with a project, demolition and clearing property, site and infrastructure improve- ments, and relocation assistance for persons being displaced by a HOME activity. • Rehabilitation or preservation of residential structures (comprehensive rehabilitation only). • Tenant Based Rental Assistance (TBRA) for a period of up to 24 months. • New construction of affordable housing units (rental or owner -occupied). • Operational expenses and Capacity Building for Community Housing Development Organi- zations (CHDOs) within the limit of 5% of Iowa City's HOME allocation. The following types of activities that are ineligible include, but are not limited to, the following: • Public service eligible activities such as operations or salaries. • Buildings for general conduct of government and expenses required to conduct the regular responsibilities of local government, e.g. street maintenance, public buildings for government. • Political, religious and lobbying activities, income payments, such as rent assistance and mortgage payments. HOME only: tenant based rent assistance is an allowable activity. • CDBG only: New housing construction, except for residential facilities providing shelter for persons with special needs (homeless shelters, convalescent homes, halfway houses, and group homes). • Purchase of construction equipment. NOTE: The purchase or lease of furnishings, equipment, or other personal property (such as vehicles) needed for an eligible public service will not be considered under this allocation process. However, these expenses would be eligible under the City's Aid to Agency process. Additional requirements and CDBG award limitations may apply, please contact Neighborhood Services staff to discuss. FY24 Iowa City CDBG and HOME Applicant Guide Performance Schedule and Payment Reimbursements can be made after the contract has been formalized. Expenses incurred before July 1, 2023 or before a contract has been entered may not be reimbursable and may jeopardize all the CDBG/HOME funds awarded to the project. Disbursements can be made upon receipt of 1) invoices for labor, materials and services rendered, and 2) signed lien waivers (as appropriate) covering all amounts to be paid. In some instances, pre -agreement costs may be reimbursed to applicants; however, Neighborhood Services staff must be contacted prior to making any pre -agreement disbursements to verify if the cost may be reimbursed. In case of minor cost overruns or requests for additional funding, the City Manager and staff may approve a contract amendment that is non -substantial. In the case of substantial changes (as defined in the Citizen Participation Plan) the Housing and Community Development Commission and City Council must approve the change and an amended agreement is required. Budget Considerations In estimating the amount of the proposal or the project budget, applicants should try to obtain documentation for the costs and consider the following expenses: • Appraisals, legal fees, title opinions and surveying costs for property acquisition projects. • Building permits, engineering or surveying costs, zoning application fees, professional fees, advertising and bidding costs for rehabilitation and building projects. • HOME funds are required to be matched at the rate of one match dollar for each four HOME dollars or 25% of the HOME funds being requested. The City has made a commitment to match local HOME dollars, however, we also expect applicants for local HOME funds to contribute to meeting this matching contribution (see HOME regulations for eligible forms of match). • The City requests that applicants leverage private funding, volunteers, and in -kind contributions whenever possible and to include this information on your application. These contributions are worth points in the ranking sheets and are included in HCDC's evaluation of your application. • Construction estimates should be realistic. Funds remaining after the proposed work is completed will revert to the CDBG line of credit. • Applicants can apply for grants and/or loans. • Other project costs such as compliance with HUD regulations (audits, labor standards, environmental studies, fair housing, etc.) listed in Part III below should also be included. FY24 Iowa City CDBG and HOME Applicant Guide FY24 CDBG/HOME Scoring Criteria Obi -Project nfarmaaon project description in clear and explains how Me proper will address a specific goal ham YM City, steps 1025 o1-City Sttps goal end 1 Msonpde ] Are Mere strait concema Nat arnd the agencya ability to successfully undertake Me YM Am proposed project? Submiuion; Stafl experience Comment: 11. Madge R.. Points scom S Reference $ ifind Has the applicant pmvired an itemized project budget deter led a nough to determine that the Agency Agency Agency Agency addressed! proposed expenditures have been researched documented and are deemed reasonable? accurate,mpreliensts, and detailed a. Based on Sources and Uses of Fundsbudget appears m A Cosh ere clearly documented andappear reasonable andustNed. 05 - Source of funds If Based on Sources and Uses of Funds, budget appears mostly scwmte, comprehensive. and 15 tlembed Ccab are mostly documented and appear reasonable and justified. 06 - Use of funds c. Based on Sources and Uses of Funds budget eppean sandstone bid not clear. mmprMens ve, 1B or didiled. The budget is substantively.atiemcamily correct (i.e. miter a.. noted), andfor does but appear complete. of Baxd on Sources and Uses of Funds, budget appears Ouesdonable andfor unreasonable- The 0 budget is substantively inathemaucal incorrect. a Did as agency submit evidence of financial commitment (Example: loan commitment letter from a hani for sources listed in the project budget? t. Evidence of financial ccmmenent provided fora0 appicable sources listed in the pmject budget. A 05 - Soume of funds b. Evidence of financial commitment provided far mad awrche listed In Me posted budget. 15 c Evidence of financial commitment pravaed Mr mine of me aaurres listed in the, proptl budget. Application zMachments 10 d. Other sources of financing not committed or no documentation submitted. 0 5 What percentage of funds has the agency leveraged for Ore praiser? m drnt bit b CCBGFILMENab ErEN aH mI. OS - Source of fursd8 A . 76-percemnt ID b. 5145 percent 15 c.26-M difircturt 10 d.25 percent or less 5 6 0ass the project leverage community par aw rshipa mtllor volunteer resources? a The project informer tlan-mot tes numerous community partnerships career yeaurnmer muctureaus 20 and they are deacnbed in detail. b. The project proposal demonstrates some community partnerships anchor volunteer becomes. 15 05 - Source of funds c. The project proposal demonstrates few community partnerships and/or volunteer resources. tl. pmpoxl does not demonstrate commonly partnerships and/or volunteer resources. 10 0 ? Has Her agency demonstrated Mat they have the resources and fiscal cepac0y to successfully complete the proposed project? 05-Source of funds a. The agency has clearly demonstrated Mat they have Me famurcee and fiscal capacity b A mcxsduiy..Plate Me proposed projed. 06 - Use of funds b. The agency has mostly demonstrated Mat they have Me resources and fiscal capacity to 15 soccandi ..,Plate Me proposed projed. c. The agency has somewhat demonstrated Mat May have Me femume s and fiscal capacity to 014 - CDBGIHOME received 10 Tmcxxfully complete me proposed project . Applicators a0achmenb d. not have the resources or fiscal capacity m.mlNete the pmpofed laojeda0 0 uThe ndeat based is unGear based on 0re proposal. Total Section II Partial 0 0 0 0 FY24 Iowa City CDBG and HOME Applicant Guide Will WAAMA 8 Whistprimliquilsomentoforeffisn hncome persons are ter tad? 07- Income breakdown a. 0-M percent b. 31-M percent 20 15 c. 51-60 percent 10 a. 91dUx 5 9 W0l the project awat."s,jeeial population. (Example: people experiencing hamelessaeaa or Mingle with disabilities)? O! - incomeDeakdown a. The proposal clearly demonstrated that Me project assists me err mom special populations. 20 b. The proposal somewhat demonstrates that Me project abroad aria or more .petal populations. 022 - Description of primary 15 Mrga papulati on and explanalbn of how of how agency promotes racial equitand n clusioiry to o- The proposal manners Met Me protect may assist one or cope slowed pepuleana, out le is net ID certain. meronel¢e0 population. 0 ..The pinglact aces not assists special popullgh. pnis unclear ilia special population is asrrnd. tO Dons Me enconr a housing Mrou h all neighborhoods?alfarc clearlyMe goal of encwrapng housingand e The protectcillaw yni ill suploomsin 20 re reai(Ier601 (BLINe9 MIW g110 nGlghbOrMOE91n OWd Orly. The project expands OCCt9.9 IO allmt g tashoo Iowa to neigtlbomOMS Mat traditionally la* afbMable carbon and Me applicant provides useful data m 0801-hourn Wnb 9 ques supDart Me! conclusion. 013- Description M how Me b. The protect somewhat demonstrates Mat it wallsupl%N the goal of encouraging housing and 15 residemal favilhas through all neghMeuods in Iowa City. The project somewhat expands asset. prgectwill phyme affordable lo neighborhoods Mat tradMonally lack affordable options and Me applicant provides some data to Musing or asrLance at rates or support Men concluson- paces lower Man Mow n Me c. The protect provides Musing In wghborboods Mat have a Concentration Of afiordiale housing market 10 opposumbea. d. Nat applicable. proposal does not include a housing netwlly(Examplel public facility 20 mprovemardi 11 Does Me project schedule admquately demonstrate the project will he completed will to required tone p rl Lid mwamw rpWG iNrir, dr i M owns brim AW blur. a. The project timeline is realistic and Me protect will proved immediately when grant funds arc 20 at - PioposN project timetable bVable. The project timeline Is moldy realistic, anchor the poject will proceed soon after grant funds ant 15 aIlable. The project timeline is somewhat realistic One will proceed all a reasonable time period. 10 d. The pmjecttimelie is unclear or" pr,,l is not ready to proceed or the project is likely to 0 LBuw CDBG timeliness concerns. 12 W91 the project promote song -term, efficient we of landing (covering Me compliance period • um(? a. The proposal cleats demonstrates the long -tam, efficient use Of smiling which meets Of exceeds 20 Me rMuired cmolum. whodl 012 - Description of how me project will promote efficient use b. The propewl mean demonstrates Me long-tmn,efc'ient use of funding which meets or exceeds 15 Me required compliance perod. of funding over me long term Pm Forma (if applicable) r. The Dropewl somewhat demonstrates lorg-tam, eMaent use of Nndmg Mat covers, Me handful 10 compliance pendd. 0 d. The propewl does not demonstrate long -tam, transient used funding water dove end cover Man required compliance period Total Shearson IN Pointy 0 0 0 0 FY24 Iowa City CDBG and HOME Applicant Guide 16 Does Me agency nave ..Meant My f resources, technical expertise, arld experience m warty armusi HOME out Me project based on the informal rovidetl? .eve Lelween 0 to 20 with 20 being the highest level of sufficiency, expertise and experience. funds015-CD00 received; iationel 0-20 exper caty a expenentelri un y and of expaning of o $750,0l0in expanding over 5750,000 in federal Winds 016 - Description of orVanGAtie s experience and key ate0 017 - Politico in place 019 - Dnoiption of aryanlmt'wn strategies end recent activities Application AdaMments 17 Deals the project promote racial equity and racial ivity for mar0inalited populations? 022- Description of primary a. The propesal clearly documents Mat the dialect will promote racial Scaly and inclusivity for 20 margutho d populations. a The proposal mostly documents that Me protect will pronwte recal equity and nctusivdy for target population and eVbnation of how agency promates racial 1s ma erah dpopulations 10 m'rurild popula for amnalized populations c The project somewhat promoks moral equity and inclumvity for Martinelli populations, d, The profad does not promote racial equM and'm4usiviry for margnalided popuatorr Qrit is 0 nclearbased on Me proposal. 18 Oms the project incorporate sustatnalud dy inilindivea (Example: Energy star appliances a subber a a, The protect proposal strongly in corporates suslaimbild, initiatives where WsaMle Mat support Me 20 Cil climate related gosh and actions outlined in Me Climate Argon Plan. 021- Description of suslanmbility b, The protect proposal mostly ncoroorates sustargendry nitatives where possMle Mat support Me is C' 's climate related goes and actions outimM In Me Climate Action Plan initiatives c. The project proposal now ewhat incorporates tunninabipry indiatlyes Mat support the City's 10 climate related goals and actionsouYned in the Cimate Anion Plan. of The protect proposal does net Include suslainabill initiatives or it a unaear based on the 0 proposal Overall y of submtasion. 19 score between 0 to 20 with 20 being Me highest qually of automation. 0-20 Total section IV Pomftl 0 0 o 0 FY24 Iowa City CDBG and HOME Applicant Guide 7 PART III. Housing Additional Information Requirements. Before an applicant may enter an agreement with the City, the applicant must submit updated information such as the project schedule, sources and uses statement, construction budget (if applicable), and pro forma (if applicable) to facilitate the underwriting process. All other funding sources must be identified and verification submitted to the City to complete a subsidy layering analysis when multiple public funding sources are utilized. Appraised Value at Project Completion. Each housing project, except minor home repairs, funded with CDBG and/or HOME funds must have an appraised value at project completion that demonstrates adequate equity to secure any liens. Site Location. One of the City's goals is to encourage the distribution of housing and residential facilities (e.g. permanent housing — rental and homeownership, transitional housing, homeless shelters, and special needs housing) throughout all neighborhoods of Iowa City. To encourage applicants to meet this goal, a greater number of points will be awarded during the scoring process to projects that successfully encourage housing through neighborhoods in Iowa City that traditionally lack affordable options. The Affordable Housing Location Model was discontinued in October of 2022. Pro Forma. Projects that include development of rental housing are required to complete a pro forma that abides by the City's rules for project underwriting. See Appendix B on pages 11-12 for specific criteria. FY24 Iowa City CDBG and HOME Applicant Guide 8 PART IV. Compliance with Federal Regulatory Requirements All CDBG/HOME contracts include requirements imposed by various Federal -sponsoring agencies. These include procurement standards for labor, materials, supplies and services not only related to the project but also to the applicant's operation. • No choice limiting actions may be made prior to receiving environmental clearance from the City to move forward with a project. These include but are not limited to include signing contracts, acquisition, demolition, disposition, rehabilitation, repair, new construction, site preparation, and leasing or any other activities that commit to future activities. • Procurement standards and subcontracting requirements are set forth in 2 Code of Federal Regulations (CFR) Part 200. The following list briefly describes the main points in contracting for services and purchasing supplies and materials. • Affirmative efforts shall be made to utilize small and minority -owned businesses or sources of supplies and services. Conflict of Interest rules will also apply. • Construction contracts in excess of $2,000 shall comply with the Fair Labor Standards Acts. Specifically, 1) the Davis -Bacon Act which requires contractors to pay wages to laborers and mechanics at a rate not less than the minimum wages specified in a wage determination made by the Secretary of Labor, 2) Copeland Anti -Kick Back Act which prohibits employers from inducing employees to give up any part of the compensation to which they are otherwise entitled, and 3) the Contract Work Hours and Safety Standards Act which requires contractors to compute wages on the basis of a standard work week of 40 hours. Work in excess of the standard workweek shall be permissible if the worker is compensated at a rate of 1'/z times the basic rate of pay for all hours worked in excess of 40 hours in the workweek. No worker shall be required to work in unsanitary, dangerous or hazardous surroundings. • Contracts over $10,000 shall contain requirements relating to Equal Employment Opportunity. • Provisions for termination shall also be included in all contracts. • Records should be kept for all procurements. Construction projects for more than $250,000 must utilize the competitive sealed bids (formal advertisement) method of procurement. Procurement by small purchase procedures shall be utilized for projects $250,000 or less. Contracts under $10,000 may use the micropurchase method of procurement. Price or rate quotations shall be obtained from an adequate number of qualified sources under this method. • Contracts in excess of $25,000 shall contain provisions and conditions that allow for administrative, contractual or legal remedies in instances in which contractors violate or breach contract terms. • Contracts in excess of $200,000 shall meet bonding and Section 3 requirements. Minimum bond requirements include: bid guarantee equal to 5% of bid price, performance bond for 100% of contract price and payment bond for 100% of contract price • Applicants undertaking a Section 3 project are strongly encouraged to complete the free, self - paced online training provided by HUD titled Understanding Section 3 or meet with staff to understand the scope of the requirements before submitting an application: hfti)s://www.hudexchanae.info/trainings/section-3/ • Provisions regarding federal regulations on Non-discrimination, Equal Employment, Affirmative Marketing and Fair Housing. FY24 Iowa City CDBG and HOME Applicant Guide • Acquisition, Displacement and Relocation are also contained in the Agreement. • Lead Based Paint regulations regarding interim controls and abatement may also apply. FY24 Iowa City CDBG and HOME Applicant Guide 10 PART V. Financial Management, Reporting, and Monitoring Standards for financial management and record keeping are provided in 2 CFR 200. Local accountants and agency directors experienced with federal requirements may be helpful resources. • Each recipient shall have a financial management system that provides effective control over and accountability for all funds, property, and other assets, must identify the source and application of funds for federally -sponsored activities, and permit the accurate, complete, and timely disclosure of financial results in accordance with the reporting requirements of the City and HUD. • A separate ledger for the CDBG and/or HOME account is strongly recommended. • Appropriate time distribution records must be kept for employees paid with CDBG funds in addition to other funds. • All project -related expenditures must be supported by third party documentation (invoices, contracts, and purchase orders). Lien waivers are required from all contractors and subcontractors. • Reductions in project costs or increases in the commitment of other funding, if any, shall be brought to the immediate attention of staff. The impacts of these changes must be discussed with staff and appropriate reductions in CDBG and/or HOME funds may be made on a case -by -case basis. In most cases, a financial audit of the project expenditures will be required. Qualified individuals who are sufficiently independent of the agency and can produce unbiased opinions and conclusions should conduct these audits. Audit reports should be submitted within six months of project completion and final disbursement of funds. Organizations that expect more than $750,000 in federal assistance from all sources are required to have an audit covering the financial activities of the organization as well as the project disbursements as set forth in 2 CFR 200. Neighborhood Services staff will monitor all aspects of the project beginning with pre -agreement activities, goal setting to project closeout. Any project changes must be approved by the City. Periodically, Neighborhood Services staff and HCDC members will conduct monitoring visits to review project progress, financial management, construction contracts, time records related to the project, as well as client statistics. Staff will attempt to give reasonable notice prior to the site visit. The City of Iowa City requires quarterly reports and has a standardized reporting form. For rental and homeownership projects, the applicant must complete project close-out forms and submit to the City upon project completion. The period of affordability does not begin until the City has been notified and the data entered into HUD's information and management system. The compliance period will vary depending upon the regulatory requirements of the CDBG and/or HOME program and the information contained within the CDBG/HOME application. During the compliance period, Neighborhood Services staff will request records relating to the stated purpose of the project to see if goals have been carried out, to review the low and moderate income benefit requirements as established by HUD, and to monitor the financial status of the organization. All notices and reports should be directed to: Neighborhood Services 410 East Washington Street Iowa City, IA 52240 For CDBG projects, all records relating to the project should be kept at least four years after the submission of the Consolidated Annual Performance and Evaluation Report (CAPER) in which the activity is reported as complete. The CDBG Agreement should be retained until the end of the compliance period. For HOME projects, all records shall be maintained as required in 92.508 Recordkeeping depending on the type of project (rental, homeownership, or tenant -based rental assistance). FY24 Iowa City CDBG and HOME Applicant Guide 11 Appendix A: CDBG and HOME Consolidated Policies The City recognizes the need to utilize Community Development Block Grant (CDBG) and/or HOME Investment Partnership Program (HOME) projects and other funding as effectively and efficiently as possible to meet the needs of low -moderate income household for housing, jobs and services within Iowa City. To assist the Housing and Community Development Commission (HCDC) in investing funds and evaluating a project's status and ability to proceed, the following policies shall apply to all projects effective July 1, 2020: I. Investment Policies a. Economic Development Economic development projects making application to the CDBG Economic Development Fund will be reviewed and approved by City staff based on criteria identified in the Applicant Guide. Updates will be provided to the City Council Economic Development Committee periodically. Typically, for -profit business projects will receive low -interest loans; whereas, non -profits may be recommended for forgivable loans or grants. Decisions regarding investment terms for economic development projects will be made based on the nature of the project including, but not limited to, the risk, potential for growth, the number of and quality of jobs created for low -moderate income persons, the ability to repay a loan and the amount of other funding leveraged. Economic development assistance may be used for direct business funding, or for funding technical assistance for eligible businesses. b. Housing Rental Housing. The interest rate for rental housing activities will be zero percent (0%) for non-profit owned projects and prime rate (determined at the time the CDBG/HOME agreement is executed by the City) minus two points for for -profit owned projects with an amortization period up to thirty (30) years or the period of affordability, whichever is less. The City may grant a different interest rate and/or a different repayment option based on the nature of the project including, but not limited to, the revenue generated, the ability to repay a loan, the type of housing provided, the beneficiaries, the amount of other funding leveraged and the location of the site. Homeownership. Each year Iowa City adopts resale/recapture provisions that apply to all HOME assisted homebuyer projects. The recapture/resale provisions shall be the same for both CDBG and HOME assisted homebuyer projects. These provisions are set forth in the Annual Action Plan for the year the funds were allocated to the Subrecipient/Recipient. Tenant Based Rental Assistance (TBRA). All HOME funds provided for TBRA will be in the form of a grant. C. Public Facilities Public Facility projects as defined in 24 CFR 570.201(c) may be completed by the City and/or subrecipients. Governmental entities (i.e. jurisdictions with taxing authority as provided for in Iowa Code) that conduct CDBG- assisted public facilities projects will receive a grant with a compliance period of five years (60 months). Non- governmental subrecipients will receive a conditional occupancy loan, which the City shall secure through a lien, mortgage, or other comparable security against the assisted real property, to only be repaid upon transfer of title, rental of the property, or termination of services or occupancy as outlined in the applicable CDBG Agreement. If the subrecipient fully satisfies the terms outlined in the applicable CDBG Agreement, the security instrument will be released by the City following the successful completion of the compliance period that begins on the date as listed within the applicable CDBG Agreement. If the real property is leased, the lease shall be for a period that matches or exceeds the compliance term of the earned grant. The number of years in the compliance period of a conditional occupancy loan will be calculated by dividing the total amount of CDBG assistance allocated to a subrecipient in any one City fiscal year for a public facility project by $10,000, rounded down. The minimum compliance period is five years (60 months). The maximum compliance period shall be no more than twenty (20) years. For example, $75,000 in CDBG assistance equals a compliance term of 7 years or 84 months. FY24 Iowa City CDBG and HOME Applicant Guide 12 d. Public Service Public Service projects as defined in 24 CFR 570.201(e) shall receive CDBG assistance in the form of a grant with a term of not less than one year (12 months). II. Unsuccessful and Delayed Projects HCDC recognizes that from time to time, there may be CDBG and/or HOME projects that do not meet the anticipated schedule for implementation as presented to HCDC. These circumstances may be due to unforeseen events (e.g. unfunded applications for other financing). The following process helps ensure subrecipients use their funds in a timely manner. All CDBG projects carried out by subrecipients will have entered into a formal agreement with the City of Iowa City for the utilization of funds by September 30 each year. Should a subrecipient fail to meet this schedule, the project will be reviewed by HCDC to evaluate if extenuating circumstances exist. If extenuating circumstances exist and it is anticipated the project will proceed, a new timeline will be established for the project. If circumstances do not warrant an extension of time, HCDC may recommend the recapture and re -use of the funds to the City Council. 2. All CDBG projects (except applicants for Low Income Housing Tax Credits) carried out by subrecipients will have expended a minimum of fifty percent (50%) of the assistance provided for the proposed project by March 15 each year. This provides the subrecipient with approximately 255 days following the start of the fiscal year to reach this threshold for CDBG projects. Should a recipient fail to meet this threshold, the project will be reviewed by HCDC to evaluate the timeliness of the project and its ability to proceed. If extenuating circumstances exist, a new timeline for expenditure will be established. If circumstances do not warrant an extension of time, HCDC may recommend the recapture and reuse of the funds to City Council. 3. All HOME projects carried out by subrecipients will have entered into a formal agreement with the City of Iowa City within two years of award (24 months). All HOME funds must be spent within five years. Should a subrecipient fail to show adequate progress towards meeting the schedule as identified in its application or the statutory requirements of the HOME program, the project will be reviewed by HCDC. If a HOME recipient is unsuccessful in obtaining funds identified in the application, HCDC will review the project and determine its viability without the proposed funds. HCDC may recommend the recapture and reuse of the funds to City Council. III. Allocation of Uncommitted Funds The City may have uncommitted CDBG or HOME funds that become available after the regular funding round either through windfall income, project cancellation, or additional funds provided by HUD. In most cases, funds will be retained for the next regular funding round and/or be used for administrative amendments of existing projects. In the event uncommitted funds exceed $150,000, HCDC may choose to: 1. Provide funding to existing projects that did not receive full funding and/or to projects that submitted applications but did not receive CDBG/HOME funding, up to their full request; or 2. Hold a special funding round to solicit and fund new proposals. If funds shall be provided to existing and/or unfunded project, applicants will be noted of the availability of funds and asked to provide a written request for funds and how they will utilize them for their original request. If new projects are being considered, HCDC must publish notice of funding availability and proceed with a formal application process. In all cases the public must be given the opportunity for comment on the proposed use of funds in accordance with the City's adopted Citizen Participation Plan. FY24 Iowa City CDBG and HOME Applicant Guide 13 Developers of rental housing (including rehabilitation projects) are required to complete the pro forma at the time of application. The purpose of this pro forma is to demonstrate that the project is financially feasible and viable using the least amount of City funding, and to help staff and HCDC make informed decisions on the allocation of HOME and/or CDBG funding. This form will provide the necessary information in a format that is uniform among all rental housing applicants. The following are instructions for completing the pro forma and some basic information for reference. The pro forma template allows for up to 20 years of information, however, it only needs to be filled out through the project's period of affordability. Underwriting is required prior to signing an agreement and an updated pro forma will be required if applicable to ensure information is current for staff review. Please note, cells shown in grey in the pro forma template indicate fields that should be filled out by the applicant. If you have any questions about the form or need technical assistance, please call Community Development staff at 319-356-5230. Staff can also help you determine the period of affordability for the project. Developer fees (including overhead and profit, consulting fees) shall not exceed 10%. Revenues [Income escalates at 2% as calculated in the spreadsheet; consistent with the Fair Market Rent (FMR) increases for Iowa Cityl Line 1 Gross Rent: Is the total amount of rent generated from the housing units, based on proposed rent levels and expected utility allowance deductions for tenant -paid utilities (proposed rents may be less than fair market rent (FMR), but cannot exceed FMR. 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% (may be increased up to 10% depending on Applicant's past performance in managing units). Line 6 Effective Gross Income: Line 4 minus Line 5. Operating Expenses [Inflation escalator at 3% as calculated in the spreadsheet] Line 7 Insurance: Estimated insurance expense from an agent or similar property. Line 8 Maintenance & Structural Repairs: Repairs and replacements are typically 1 % of the property's value, though varies depending on building age, condition, size, and use. Line 9 Management Fees: May not exceed 10% of Annual Gross Rent, typically 5% to 7%. Line 10 Misc. Operating Expenses: legal, accounting, advertising, owner -paid utilities, etc. Sum of Lines 7-10 shall be no less than $2,750/unit; SRO properties in single family homes shall be considered 0.3 units each. Line 11 Property Tax: Estimate available from City Assessor or Johnson County records. Line 12 Reserves: Operating reserve no less than $400/unit. If new construction, include a rent - up reserve for Year 1 of gross monthly rent for all units x 3 months). Line 13 Total Operating Expenses: Sum of Lines 7 through 12. Net Operating Income Line 14 Net Operating Income: Line 6 minus Line 13. Debt Service [list mortgage payments for principal and interest onlvl Line 15 Debt Service for 1s' Mortgage. Line 16 Debt Service for Subordinate Mortgage(s): Total payments for all junior mortgages. Line 17 Total Debt Service: Sum of Lines 15 and 16 (should not be less than 87% of Line 14). FY24 Iowa City CDBG and HOME Applicant Guide 14 Cash Flow Available for Distribution Line 18 Cash Flow: Line 14 minus Line 17. Line 18B Equity Investment: 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. A minimum contribution of $100 is required. 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 ROL Line 18 divided by equity investment as shown on the application. Debt Coverage Ratio Debt Coverage Ratio (DCR): Ratio of estimated net operating income to debt service. Line 14 divided by line 17. After year 3, DCR shall be no less than 1.15 or over 2.00 during the affordability period. Encourage 1.20-1.50. If the DSCR exceeds 2.00, the applicant must submit an explanation which staff will take into consideration when reviewing 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 35% tax rate for for -profit organizations and 0% for nonprofits. Line 27 Taxes Incurred (Saved): 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: 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 Housinq Tax Credits: Calculate full value of LIHTC annually for each of the 1.,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. Line 36 Return on Investment: Equals the Net Cash Flow After Tax divided by the Equity Investment. FY24 Iowa City CDBG and HOME Applicant Guide 15 Agenda Item #5 FY2023 Aid to Agencies Application Emerging ■ Aid to Agencies provides flexible operational funding for nonprofits. Applications are due Monday, January 30, 2023 at 12pm. This application is for "emerging" agencies, those that have not existed as a legal entity for at least 2 years or have not received A2A funds in any of the last five years. Each agency is eligible to apply for up to $15,000. No award will be made for less than $5,000. Please submit one project proposal per application. Questions can be directed to Brianna Thul at bthul iowa-city.org or to Neighborhood Services at 319-356-5230. Hard copy applications are available upon request. ■ Submit completed applications online at www.icgov.orWactionplan or a PDF version to bthul .iowa-city.org. Emailed applications must receive a confirmation email from City staff before the application deadline to be considered for funding. Online submittals are preferred, but you may send your application by certified or registered mail; overnight delivery service e.g., FedEx; or deliver in person if arrangements are made with a Neighborhood Services representative. Please call 319-356-5230 to make drop off arrangements prior to arrival. Section 1 — General Information 1. Lead Organization/Agency Name: Address: Website: Application Contact Name: Title: Phone: Email: 2. Organization/Agency Type 501(c)3: Public: For Profit: Faith -Based: CHDO: Other: Years in Operation: 3. Project Project Name: Brief Description: Total Funds Requested: 4. History Has your Yes agency/organization received City assistance in No If yes, describe the last five years? Is the applicant currently in compliance with all federal, Yes No state and local laws, rules and regulations including Currently in litigation any CDBG and/or HOME funded projects? (including Provide comments if needed partners, co -applicants, etc. Section 2 — Need and Priority The City Steps Plan guides funding within the community that benefits low -moderate income persons by creating jobs, improving housing, and providing services. You can find a copy of City Steps at www.icgov.orq/actionplan. 5. Summary of proposed project: 6. Why is the project needed? 7. How does the project fill a gap in the community? 8. How does the project address the goals of 2021- 2025 CITY STEPS? 9. Describe how you will incorporate sustainability initiatives into your project to help carry out the City's Climate Action Plan. 10. Provide a description of your primary target population(s). Explain how your agency promotes racial equity and inclusivity for marginalized populations (including people of color, LGBTQ, immigrants/refugees, individuals with disabilities). Additional documentation: Please submit no more than seven pages. Section 3 — Resources and Feasibility Provide a budget breakdown for your specific project. Include only costs directly related to the project. For example, providing a specific service should include the total estimated costs and available resources, broke out by general categories such as salaries, materials, office expense, marketing, etc. If required by local and/or federal regulations, include the cost of an audit. Document costs whenever possible. 11. Budget Use of Funds City Funds Other Funds Source of Other Funds Type Status Subtotal $ $ Project Total $ Attach cost documentation. 12. Labor Type Description Hours Per Hour Rate Total Cost Total $ 13. If volunteers are used, please describe how these volunteers are utilized for the proposed activity. 14. All Aid to Agency projects Yes are required to expend their full award and complete the proposed project by the No end of the fiscal year (June 30, 2024). Will you be able to meet this requirement? Section 4 — Beneficiaries 15. Anticipated Income Levels of Beneficiaries (Unduplicated) Households Persons 0-30% AMI 31-50% AMI 51-60% AMI 61-80% AMI Over 80% AMI Total Percent LMI Percent Iowa City Residents Please describe the basis or methodology used to estimate the number of clients to be served. AMI = Area Median Income, see www.icgov.org/actioni)lan. 16. Signature Name Title Signature Section 5 - Required Documentation It is recommended that applicants submit as much information as possible with the application to facilitate a full project evaluation. Description Required Board of Directors. Provide a list of individuals serving on the board. Yes Agency Budget. Provide the budget for the agency. Yes Financial Information. Provide a 990 form, agency financial statements, or similar documentation. Yes Agenda Item #6 IOWA PUBLIC RECORDS AND OPEN MEETINGS LAW TRAINING FOR BOARD AND COMMISSION MEMBEI Thurs., Dec. 8, 2022 YOU WILL LEARN: What is considered a meeting for governmental bodies Whether texts or emails are subject to open meetings and public records laws When a board can go into a closed session What the penalties are for violations of open meetings and public records laws And much more. IOWA ' LEAGUE �E AG U E CITY OF IOWA CITY ( Sf CITIES UNESCO CITY OF LITERATURE 6:OOPM on Zoom Register by scanning the OR code 0 R1 Presented by Iowa League of Cities Director of Membership Services, Mickey Shields If you will need disabilityrelatedaccommodations in order to participate in this event, please contact Equity Director Stefanie Bowers at 319-356-5022 or stefonie-bowers@iowa-city.org. Early requests are strongly encouraged to allow sufficient time to meet your access needs.