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HomeMy WebLinkAbout02-16-2006 Housing & Community Development CommissionAGENDA HOUSING AND COMMUNITY DEVELOPMENT COMMISSION IOWA CITY PUBLIC LIBRARY, ROOM A 123 S. Linn Street, Iowa City THURSDAY, FEBRUARY 16, 2006 6:30 P.M. 1. Call Meeting to Order 2. Approval of the January 19, 2006 Minutes 3. Public Comment of Items Not on the Agenda 4. Discussion of Recommendations to Council for FY06 Housing Sites 5. Discussion Regarding Applications for FY07 Community Development Block Grant (CDBG) and HOME Investment Partnership Program (HOME) Funding -- Question/Answer Session 6. Adjourn r �.,.® CITY OF IOWA CITY '. h IT MEMORANDUM Date: February 9, 2006 To: Housing and Community Development Commission From: Tracy Hightshoe, Associate Planner Re: February 16 HCDC Meeting The February 16 meeting will be held at the Iowa City Public Library in Room A and it will be structured around the Question/Answer session with the applicants for FY07 CDBG/HOME funds. A copy of the staff report for each application is enclosed for your review. The review includes concerns or issues that need to be addressed by the applicants. Please review the applications and staff reports. The public service and public facility applicants are allowed five minutes and the housing applicants are allowed ten minutes to respond to questions. The Financial Terms for CDBG\HOME Applicants from the FY07 Applicant Guide is included in the packet. It clarifies Council's policy on financing terms for CDBG/HOME assisted projects. We also need to discuss site approval for FY06 housing projects. Last year, HCDC agreed to submit site approvals directly to the City Council until a formal scattered site policy was approved. Since HCDC only meets once a month this expedites the approval process since housing projects involving acquisition are often under time constraints. The Commission will need to decide how to handle FY06 site approval requests at the February 16 meeting. We will hand out the ranking sheets at the February 16 meeting and they will be due back to us on March 2. HCDC will meet March 9 & 23 to review the groupings and to make funding recommendations. These meetings will also be held in Room A at the Iowa City Public Library. If you have any questions about these items or will be unable to attend, please contact me at 356-5244 or by email at tracy-hightshoe@iowa-city.org. REMINDER: Meeting is located at the Iowa City Public Library, Room A 123 S. Linn Street, Iowa City 6:30 PM MINUTES PRELIMINARY HOUSING AND COMMUNITY DEVELOPMENT COMMISSION LOBBY CONFERENCE ROOM, CITY HALL, IOWA CITY THURSDAY, JANUARY 19, 2006 Members Present: Jerry Anthony, Lori Bears, Thomas Niblock, Brian Richman, Michael Shaw Members Absent: William Greazel, Matthew Hayek, Kelly Mellecker Staff Present: Tracy Hightshoe, Steve Long Public Present: Valdean Lembke, Pat Meyer, Sandy Pickup CALL MEETING TO ORDER Chairperson Anthony called the meeting to order at 6:36 PM. APPROVAL OF THE NOVEMBER 17, 2005 MINUTES Motion: Niblock moved to approve the minutes as submitted. Richman seconded the motion. Motion passed 5:0. PUBLIC COMMENTS OF ITEMS NOT ON THE AGENDA Long handed out a memorandum from the City's Clerk office and said that the City is currently going through the annual budgeting cycle. He noted that the commission could propose changes/additions to the budget. Bears asked if the commission had ever requested funds from the City Council. Anthony said that this might be an appropriate year to ask for funds, since the City's CDBG and HOME funds have been cut and the City has conditional money that if not spent might have to be returned. He added that the City, according to an article in the Press Citizen, may have a surplus and would need to decide how to use it or reduce the tax rate. He noted that if not used the money will be returned to the public. Anthony said that the Commission supports good community projects and our recipients would be grateful for additional sources of support, if additional funding could be found. Anthony said that the City has two (2) strings of money which result in a surplus. First, he said, the City would have a surplus of revenue collected from property taxes. Anthony mentioned that the City is anticipating a significant amount of money from the increase in, property values. Anthony said that if the City would decide to return the money to property owners, it may not be a significant amount to an individual property owner, but it would represent a significant sum for the community projects. Anthony said that the second source of surplus comes from the budget reserve decided by the City Council. He said that the Council had voted to keep 20% of the annual budget as a reserve. Anthony said that currently the amount going to the budget reserve is higher that 20%. He proposed that the additional money from the reserve above the 20% voted upon could be put in a trust fund, and the interest from that fund be added to the CDBG funds. Bears asked if additional funds are approved by the Council would there be a stipulation in terms of what the money could be used for. Anthony said that it is at the discretion of the Council to add such stipulations, but any additional funds that could be added to the CDBG program would be appreciated. Richman said that the commission should first come to a consensus about whether they should ask the City Council for additional money. Shaw said that if the commission will decide to ask for money, they should request a specific dollar amount to the Council. Sandy Pickup said that the deadline for the CDBG applications is January 251h, and the deadline for budget recommendations is January 30' . She said that the commission could wait and see the amounts requested in this year's applications, determine the difference between the requested amount and the CDBG funds available, and use that difference as a proposal to the City Council. MOTION: Shaw made a motion that the Commission would ask the Council for additional money if funds are available. Bears seconded the motion. Motion passed 5:0. Richman said that he agrees that if money is available, the commission should request additional funds. He noted that without further review, he is uncomfortable about recommending a dollar amount. Niblock asked what the percent decrease in CDBG funds was for the current year compared with those from the last year. Long said that CDBG funds were reduced by 10.5% from last year. Niblock said that the commission could recommend restoring the funding levels from last year. Long added that in the past five (5) years there has been a 30% decrease in CDBG funds. Long said that the highest amount allocated from HUD to Iowa City for CDBG/HOME funds was approximately 1.7 million dollars. Shaw proposed that the commission choose a moderate money figure because the projects funded this year might not be self-sustaining in subsequent years if additional funds are not available every year. Richman said that the commission could reach a consensus to have the chairperson arrive at a dollar request after a dialogue with various City Council members. He noted that if there is a way of making more money available for allocation the commission should try to pursue it, however without studying the issue further he feels less comfortable voting on how much money to request. 2 Richman said that any additional funds received would be helpful. Anthony would represent the commission in discussions with the City Council, and would report back to the commission through e-mail. Hightshoe announced that the local religious communities organized an ecumenical reflection on homelessness in Iowa City, and members of the HCDC are invited to participate. Anthony said that he was invited to give a presentation at that session. IOWA CITY FREE MEDICAL CLINIC REQUEST TO AMMEND THEIR FY1997 COMMUNITY DEVELOPMENT BLOCK GRANT AGREEMENT Lembke said that the Free Medical Clinic has been housed at the Wesley Foundation for a long time. He added that the number of patients and frequency of visits had increased dramatically. He stated the current facility and working conditions are making it hard to effectively attract and utilize the staff and community volunteers. Lembke said that they found a building in Towncrest that offers more space and amenities for medical offices. He stated that the Towncrest property was vacant for several years, but is in very good shape. He said that it was built as a medical facility, provides parking, offers a subsidized rent, and provides a win -win opportunity. He noted that the Free Medical Clinic received CDBG funds in 1997 to assist in renovating the facility to a medical clinic. $25,000 was in the form of a conditional grant that is forgiven over a 10-year period, $2,500 forgiven each year as long as the Clinic remained at the Wesley location. Lembke said that they are requesting the remaining two (2) payments of the conditional grant be forgiven as of April 1 ", 2006 to facilitate moving to the Towncrest property. Hightshoe said that the Wesley Foundation submitted an email in support of the Free Medical Clinic request; however the email stated that the Wesley Foundation does not forfeit their rights as Landlord by this request. Richman asked if they will have a long term lease agreement at the new location. Lembke said that the draft agreement is formulated for five (5) years. He added that they will include a purchase option and verbiage to protect their long term interests. He said that the chair of their board is a lawyer and would make sure the clinic is protected. Richman asked if additional funds from CDBG would be needed for renovation of the building. Lembke said that no additional funds would be requested. He said that the building is in good shape and they would be able to move without stopping the operation. Hightshoe asked about the size of the new facility. Pickup said that she does not have the exact measurements, but the advantage is not only that the building is bigger, but that it has a better layout, allowing all the offices to be on one floor. Richman asked what would happen to the space vacated at the Wesley building. Pickup said the Wesley Foundation is looking to lease the space to a different human service agency. Shaw said the Free Lunch Program remains in the building, and the Wesley Foundation is offering the spaces (medical clinic and offices on the 2°d floor) vacated at very low rents and is making a large effort to lease to another human service organization. Shaw asked what would be the effect of forgiving the remainder of the conditional grant on our budget. Hightshoe said there will be no effect since the agreement was a forgivable grant. The conditional grant was set up so that the City would only receive funds if the grant recipient defaulted in the 10-year period. The City was not anticipating program income from this project. Bears asked if the new facility will be accessible. Pickup said that there is a ramp and everything is on one floor. Lembke said that there is a shelter for the bus in front of the building. He noted that the Towncrest line serves the area. MOTION: Richman moved to approve the request of Free Medical Clinic to amend their FY1997 CDBG agreement. Niblock seconded the motion. Motion passed 5:0. NEIGHBORHOOD CENTERS OF JOHNSON COUNTY- BROADWAY REVITALIZATION PROJECT PRESENTATION Long introduced Pat Meyer from NCJC. NCJC received FY05 CDBG funds ($5,931) for a planning study of the Broadway area. Meyer said that a community assessment study had been conducted by the National Resource Center for Family Centered Practice. She added that the City allocated $10,000 for the survey, and in addition helped them compile and publish 100 copies of a neighborhood welcome packet. She said that the neighborhood has high turnover with new comers continuously moving in and out of the area. She added that they employed people from the neighborhood to greet newcomers, and the packets are very helpful. Meyer said that some of their goals were to get people within the neighborhood connected within the community faster, to improve communication with newcomers, for the newcomer to learn about community resources, and how to make their voices heard within the community. She said that Iowa City needs entry level employees and newcomers might represent the future of the community in this sense. She noted that the neighborhood has a more than 50% minority population. She said that they are working together with other organizations within the County, so that the work, like translation of materials, is not repeated. Meyer noted that they also strive to make the area more kid friendly. She said that some parks have been renovated to achieve this goal. She said that another project is being pursued in collaboration with the Police Department. She said that as a lot of kids are scared of talking to the police, they have police officers tutor kids and an officer within the neighborhood who plays basketball and football with the kids. The response has been great. She noted that this sideways approach works very well. M Bears said she lives in the Broadway area and really appreciates the young kids in the neighborhood. She added that the kids sometimes help her take the groceries all the way to the door. She said that she really appreciates the recurring police cars and the fact that officers take their time in solving the issues, not just writing up reports. Shaw asked if the new chief of police had impacted the relationship with the neighborhood center. Loring said that the relationship has not been influenced by the new chief. Meyer said that they have a very good working relationship with certain officers. REVIEW OF THE FY07 ALLOCATION PROCESS & PROFORMA BASICS Long said that the proforma is used for rental housing projects. He said that the basic definition of a proforma is an analysis of income and expenses. He noted that a proforma is used to compare income and debt to get the debt coverage ratio (DCR). Long said they are looking for at least a 1.15 DCR. He noted that a typical proforma for a rental housing project has a 5% vacancy rate built into the analysis. If a proposed project used a 15% vacancy rate, that would raise concerns. He mentioned the proforma is also used to determine the return on investment. He noted that a 10-14% return would be considered standard. Long noted that if any projects do not look good on paper the staff would inform the commissioners. Bears asked if the training sessions for the applicants were well attended. Long said that the day session was attended by 12-14 people and the evening meeting had 7-8 attendants. Hightshoe noted that by this time she would have typically reviewed 5 applications, but for the current year only one application has been reviewed so far. She noted that the small amount of money available for public services might have discouraged a lot of applicants from applying. Long said that some people called with concerns regarding the payback terms. He said that when a loan is awarded, for accounting purposes the recipient has to carry it on their books as a liability for twenty years or longer depending on the period of affordability or compliance period. Richman explained that the assets are depreciated, but the liability stays on the books for the term of the loan.. Niblock asked if there are any other benchmarks related to proformas that are commonly used. Long said that the presented benchmarks are the ones commonly used, but the staff also looks at management fees, development fees, and reserves. Hightshoe said that the projects need to be viable. . Richman recommended for future proformas including the debt cover ratio on the spreadsheet. CONSIDERATION OF THE POTENTIAL 2006 AGENDA ITEMS Anthony said that he wrote a two page letter which is included in the package. He said that he would like to propose to the commission to move beyond just allocating funds, and use its policy advising capabilities. He said that the charter creating the commission notes that the HCDC is charged with advising the City Council on ways to improve the availability of affordable housing. Anthony said that he would like the HCDC to consider various methods of increasing the supply of affordable housing in Iowa City and Johnson County. He said that there are several communities within Iowa that are fighting aggressively against homelessness, and Iowa City is not doing as much as they could in his opinion. He said that availability of affordable housing affects the schools. Anthony added that if parents do not have stable affordable housing they are moving from one rental unit to another and that mobility affects school performance. He noted that the availability of affordable housing also affects economic development within a community. He said that high housing costs and the lack of affordable housing might induce higher wage rates, and might drive off companies that would otherwise locate within the community??? The first proposal, he said, could be an inclusionary housing program. He noted that this program would require new residential developments to include a small proportion of affordable units. Anthony said that the developers in Iowa City have consistently not used the allowable densities. He said that developers typically built with lower densities, larger lots, high square footage, and a higher priced unit. Anthony said that single family homes below $200,000 are not being built in Iowa City. Anthony said that it is not a new program, and many communities pursue this method. Anthony said that a community -investment linked deposit program for city funds could be a second possible program. He said that this would require the City of Iowa City choosing banks for its checking and investment accounts using measures of community - investment in addition to standard financial parameters. He said that these measures of community -investment could include factors like number of home mortgage loans made to low-income and minority households of Iowa City, percentage of business loans to small and minority -owned businesses of Iowa City. Anthony noted that as banks compete to win the City's business, those with higher points on community -investment measures would be better placed in the competition. He said that this competition would result in more money being channeled to affordable housing and community development projects. Anthony mentioned that much of the data for such measurements is being collected and reported by all banks to comply with the federal Home Mortgage Disclosure Act of 1975, and the City should put this data to good use. He said that such a program could be adopted by an administrative decision by City staff. He added that this method would not cost anything, and is being used by scores of cities and counties across the nation. Anthony said that a one -cent restaurant food and beverage levy program could also be used. He said this would require all food and beverage serving commercial establishments in Iowa City to be charged a one cent affordable housing and community development levy for every dollar of customer billing. He said that if a meal costs $9.99, the consumer will still chose to eat if the price would increase to $10.06. He said that while a one -cent levy is a small and almost unnoticeable burden on patrons, the amount generated by it can be significant. Hightshoe asked if this is something the State would R need to approve. Anthony said the state does not need to approve it if there is a public referendum. Niblock said that is a good idea for HCDC to become a housing policy advisor. He said that focusing on affordable housing would be a great start. He noted that they should be cautious regarding inclusionary zoning because when getting into price control a greater shortage could be created. Hightshoe said that land banking might be another solution. She said that the City would buy parcels of land with CDBG funds and develop it as affordable housing at a later date. Shaw asked what other similar sized communities have done. Long said that staff contacts communities and tries to discuss and borrow new ideas. He said that information is generally available on the individual web site of each city. Niblock said that another good resource would be the National Association of Builders. Richman added as a resource the National Association of State Housing Agency. Richman said that it would be helpful to put together a package regarding the proposals to be discussed and have more intelligent decisions at a later time. Hightshoe said they would prepare an introductory package for the March meeting. Richman said that stakeholders should be included in the process. Shaw added that the commission should focus on a specific item to focus at each meeting to be able to be educated about pros and cons of each alternative. MONITORING REPORTS Emma Goldman Clinic-FY04 &FY06 Facility Rehabilitation Richman said that the Clinic completed the FY06 project. The roof and the door have been replaced, and the leak stopped. He said that for the FY04 project they installed energy efficient lightning, and the flooring will be finished by the end of the fiscal year, and the automated door is scheduled to be installed the first week of February. He added that if additional money will be available they will spend it on soundproofing one of the procedures room. Free Lunch Program- Facility Rehabilitation Niblock said that he will be able to give his report at the next meeting. Hightshoe said that they have not installed the flooring yet. She noted that part of the agreement with Wesley Foundation was that the Free Medical Clinic will use that space. She noted that the staff administratively would amend the agreement to install flooring for the space as it's only 4% of the total. Free Lunch/ Free Medical Clinic- Facility Rehabilitation Hightshoe said that Free Lunch is serving 90-100 people a day. She noted that she served last week and was impressed by the number of people attending. Long said that every time there is a fifth Thursday in the month people from the Planning Department serve at the Free Lunch Program. She noted that they got estimates regarding the fire suppression system and will proceed in the spring. 7 IC Free Medial Clinic- Operations Niblock said that the Free Medical Clinic received $5,000 to help them towards operational salaries. He noted that he discussed the program with the case manager and was impressed to learn that she sees 350 patients. Compeer- Operations Shaw noted that Compeer hired a new director. He noted that the amount allocated was $1,300. He added that they used $534 for salary for the director, $511 for salaries from July to December, and are expecting to use $107.45 per month until all funds are used. Shaw said that the new director increased the volunteer recruitment efforts and is making more matches than they have in the past. ICHA- Tenant Based Rent Assistance Bears said that the allocated money will be OK for two years. She added that currently they have 19 active clients. She noted that one client was terminated, one client was moved to the Iowa City Rehabilitation Center, and one left the program. Old Brick Foundation- Historic Preservation/ Rehabilitation Anthony said that Old Brick received funds to refurbish the exterior of the building. He said that the project costs about $180,000 and was funded from three sources. He added that the foundation got a $75,000 grant from the state, $60,000 from the City of Iowa City, and they fundraised the rest. Anthony said that last fall they began the first part of the project, chemical cleaning, for which they used the money received from the City. He said that in spring they would do the second part of the project, which is repointing. Anthony showed before and after chemical cleaning pictures of the building. HACAP- Transitional Housing Shaw said that HACAP was allocated $300,000 out of which they spent $243,000. He noted they are struggling in purchasing the fourth property. He said they have $8,000- $9,000 less than the average purchase price of the other three properties. He said they are currently discussing if they will be able to purchase a unit, or will have to return the money. ICCSD- FY05 Wood Family Resource Center Shaw said that Grant Wood received $325,000 CDBG funds. He added that the project's cost is more than 3 millions dollars. He noted that they completed the preliminary plan in September and are currently 50-75% done. Shaw added that the work on the gym was delayed due to a suspicious smell. He noted that they started installing the flooring this week, and it is predicted to be finished next month. He noted that the improvements had a very high impact on students; everyone is very pleased with the project. ADJOURNMENT The meeting adjourned at 8:40 PM. IOWA CITY HOUSING AND COMMUNITY DEVELOPMENT COMMISSION FY07 QUESTION/ANSWER SESSION IOWA CITY PUBLIC LIBRARY, ROOM A THURSDAY, FEBRUARY 16, 2oo6 TIME I AGENCY NAME I CONTACT NAME I PHONE # 6:40 pm 6:45 Pm. 6:5o pm 6:55 Pm 7:00 pm 7:05 Pm 7:10 pm 7:20 pm 7:30 Pm 7:40 Pm 7:50 Pm BREAK 8:15 pm 8:2o pm 8:25 pm 8:30 pm 8:35 Pm 8:40 pm 8:45 Pm :xtend the Dream Foundation Neighborhood Centers of JC Free Medical Clinic Visiting Nurse Association Compeer helter House (Security Deposit) helter House (Outreach Coord) IC Housing Authority Harmony Development, LLC The Housing Fellowship Iowa Vallev Habitat Iowa Valley Habitat (ReStore) Grant Wood PTO DVIP Four Oaks MECCA The Arc of Johnson County Community Mental Health Ctr. Tom Walz Brian Loring Sandy Pickup Suellen Novotny Patricia Kelley Crissy Canganelli Crissy Canganelli Steve Rackis Tracy Falcomata Maryann Dennis Mark Patton 339.0401 358.0438 337.9727 337.9686 351.4492 338.5416 338.5416 887.o665 338.7600 358.9212 337.8949 Mark Patton 337.8949 Marla Edwards 351.1751 Kristie Fortmann-Doser 351.1042 Mary Chval/Kelli Malone 337.4523 Ron Berg 351.4357 Jennifer Adrian 351.5017 Stephen Trefz 338.7884 FY07 CDBG/HOME APPLICATIONS Housing Habitat for Humanity - Land Acq. $ 220,000.00 Harmony Development, LLC - Rental $ 300,000.00 The Housing Fellowship - Preservation $ 250,000.00 ICHA - Tenant Based Rent Assistance $ 368,064.00 Housing Total $ 1,138,064.00 Funds Available for Housing Public Facilities The Arc of JC - Facility Rehab $ 2,852.00 CMHC - Facility Rehab $ 18,280.00 DVIP - Facility Rehab $ 6,400.00 Four Oaks - New Construction $ 200,000.00 Grant Wood PTO - Playground $ 56,437.00 Iowa Valley Habitat - ReStore $ 200,000.00 MECCA - Facility Rehab $ 22,000.00 Public Facilities Total $ 505,969.00 Funds Available for Public Facilities Public Services Compeer - Director $ 2,584.00 Extend the Dream Foundation - Coord. $ 2,250.00 Free Medical Clinic - Case Mgmnt $ 21,000.00 NCJC - Newcomers Network $ 12,840.00 Shelter House - Outreach Coord. $ 10,000.00 Shelter House - Security Deposit $ 1,500.00 VNA - Mental Health Home Care $ 10,000.00 Public Services Total $ 60,174.00 Funds Available for Public Services TOTAL REQUESTED $ 1,704,207.00 FUNDS AVAILABLE $ 484,378.00 $ 331,000.00 $ 14,300.00 $ 829,678.00 2/9/2006 CDBG and HOME Program Investment Policies (Resolution 05-213) Economic Development Economic development projects making application to the CDBG Economic Development Fund will be reviewed by the Council Economic Development Committee. The Council Economic Development Committee will make a recommendation to the City Council for each project proposed for funding. Said recommendation shall include the amount of CDBG assistance to be allocated and the terms of investment. Typically, for -profit business projects will receive low -interest loans; whereas, non -profits may be recommended for forgivable loans or grants. Decisions regarding investment terms for economic development projects will be made based on the nature of the project including, 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. Housina The interest rate for all 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. Assistance to homeownership projects will have three repayment options as shown herein..1. A 20-year loan that must be paid in full when the low -moderate income homeowner sells, transfers title, moves or rents the property or the 20-year term expires, whichever occurs first. No interest will accrue and no payments will be required to be made by the property owner prior to payoff. 2. The homeowner has the option to make monthly payments to the City or its designee in a form not to exceed a 30-year, zero percent (0%) amortized loan, a 30- year amortized loan must start at the time the assistance is provided. 3. If CDBG\HOME assistance is provided to a certified non-profit organization, for a Community Land Trust project, the CDBG\HOME funds will be in the form of a grant. All HOME funds provided for Tenant Based Rent Assistance will be in the form of a grant. Public facilities The City of Iowa City, as the recipient of Community Development Block Grant (CDBG) funds, utilizes these funds for "public facilities" projects as defined in 24 CFR 570.201(c) that are completed by the City and\or subrecipents. The following policy applies to CDBG assistance provided to non -governmental subrecipients ("governmental" includes only jurisdictions with taxing authority as provided for in Iowa Code). Projects that receive an allocation by the City of Iowa City will receive an earned grant, as defined herein, which will be secured by a mortgage or other comparable security instrument. The compliance term of the earned grant will be determined by the formula also provided herein. At the end of the applicable compliance term the lien or other security instrument will be released by the City. If the real property is leased, the lease shall be for a period that matches or exceeds the compliance term of the earned grant. • Earned Grant: A lien against the real property being assisted, or other comparable security, which is repaid only upon transfer of title, rental of the property, or termination of services or occupancy as outlined in the applicable CDBG Agreement. If the subrecipient fully satisfies the terms outlined in the applicable CDBG Agreement the mortgage against the property, or other security instrument, will be released by the City following the completion of the compliance period that begins on the date of execution of the mortgage or security instrument. Earned Grant Formula: The total amount of CDBG assistance allocated to a subrecipient in any one City fiscal year for a "public facility" project divided by $3, 000 equals the number of CDBG compliance years for the Earned Grant. (For example: $17,000 in CDBG assistance divided by $3,000 would equal a compliance term of 5.67 years or 68 months). If the Earned Grant Formula results in a compliance term of less than one year (12 months) the minimum compliance term shall be one year (12 months) and if the Earned Grant Formula results in a compliance term of more than ninety-nine (99) years the maximum compliance term shall be ninety-nine(99) years. Public Service Public Service projects as defined in 24 CFR 570.201 (e) shall receive CDBG assistance in the form of a grant with a term of not less than one year. CITY OF IOWA CITY FY07 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Applicant Contact: Project Address: Activity Type: CITY STEPS Priority: CITY STEPS Goal Achieved: Beneficiaries: Amount Requested: Repayment Terms: Extend the Dream Foundation — Operational Expenses, Page 126 Thomas Walz 339-0401 912-2"dAvenue Public Service High - Employment Training Provide Employment Training and Education (Page 122) 0-30% mfi 33% 31-50% mfi 0% 51-80% mfi 67% $2,250 Grant Total Cost Per Person/Household: $1,139\person Percent of Project Publicly Funded: 55% Leveraging City CDBG\HOME Funds: $4.56 in other fundsfor each CDBG dollar requested. Property Taxes: Tax Exempt STAFF ANALYSIS Documentation of Project Need CITY STEPS notes the need for employment training and education skills. Short-term objective is to continue and expand apprenticeship and employment training programs. The project proposes to train 6-9 individuals with disabilities to become buyers and sellers on the internet. Applicant states that 50-70% of those persons with major disabilities in Iowa City are without employment. Most are dependent upon disability benefits or intermittent employment. Those trainees that become skilled enough to effectively sell (the retail store would inventory most of the items to be sold on the internet by the trainees) would be placed on a commission and may earn stipends as they go through training. Applicant states that while only a few may be able to make a living from sales, most trainees should be able to augment their disability benefits, if received, and achieve a higher economic quality of life. Upon graduation, applicant states EDF would help with necessary equipment and inventory to start a home based business/practice. Project Budget Discussion This project leverages a Federal Work Study position to provide a graduate student or equivalent student with computer skills and internet sales interest to assist in the recruitment of trainees, the coordination of the training program, and individual tutoring of entry level trainees. It is anticipated that the person hired will work approximately 15 hours per week for at least 50 weeks. Project Coordination with Existing ServiceslActivities Extend the Dream has been working with community partners (including the University of Iowa) with the Uptown Bill's Small Mall and other projects. Applicant History or Capacity to Successfully Complete the Proposed Project Applicant has received CDBG funds in FY01, FY05, and FY06 for various economic development and building acquisition type projects. Applicant has successfully managed the funds received. Summary of Items to be Addressed 1. If partial funding is awarded, will project be able to proceed? After the first year, how will the project be financed? 2. Explain the volunteer contribution as applicable to the eCommerce Training Program. 3. When did the eCommerce Training Program start and how is it currently being staffed? 4. What types of assistance will applicant provide graduates to set up their own home based business? 5. Applicant provides a volunteer contribution valued at $50/hour (100 hours). How did the applicant arrive at this hourly rate? Any changes in the volunteer contribution would affect the numbers reported on page one, total cost per person, leverage amount, and percent of project publicly funded. CITY OF IOWA CITY FY07 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Applicant Contact: Activity Type: Project Address: CITY STEPS Priority: CITY STEPS Goal Achieved: Beneficiaries: Amount Requested: Repayment Terms: Total Cost Per Person: Neighborhood Centers of Johnson County Page 147 Brian Loring 358.0438 Public Service Citywide HIGH — Other Public Service Needs Strategy: Provision of Training in Living Skills (p-115) 0-30% mfi 100% 31-50% mfi 0% 51-80% mfi 0% Over 80% mfi 0% $ 12,840 Grant $36.68 per person based on 765 persons receiving assistance over a one year period. Percent of Project Publicly Funded: 46% Leveraging City CDBG\HOME Funds: $1.19 in other funds for each CDBG dollar requested. Property Taxes: Tax Exempt STAFF ANALYSIS Documentation of Project Need The Neighborhood Centers of Johnson County (NCJC) is requesting support for the Johnson County Newcomers' Network (JCNN). The goal of JCNN is to help low-income residents new to Iowa City settle and to assist them in finding ways to share their strengths and culture with the larger community. Johnson County is in the midst of a demographic transformation that is increasing the numbers of low-income children in our community. The Iowa City Housing Authority reports that combined applications for housing vouchers and public housing have increased 230% from the first quarter of 2002 to the second quarter of 2004. A survey done in the summer of 2004 indicated that one-half of the families in the Broadway neighborhood had been there for less than a year. Project Budget Discussion The CDBG funds make up 46% of the total project budget. The remainder of the funds will be coming from NCJC and have been committed. The applicant proposes to use 170 hours of volunteer time for a in -kind contribution valued at $3,800. The volunteers will assist with planning, technical support and facilitation. Project Coordination with Existing ServiceslActivities The JCNN brings together service providers, policy makers, concerned community groups and representatives from the newcomer communities to coordinate services and to involve new residents in decision making. Applicant History or Capacity to Successfully Complete the Proposed Project NCJC has been successful in completing a variety of CDBG funded public service and public facility projects over the last 20 years. Summary of Items to be Addressed 1. Will the project continue if partial funded? 2. Has NCJC researched other funding mechanisms for the JCNN project? 3. If JCNN is funded, what is being done to assure that the program will continue beyond the CDBG fiscal year? CITY OF IOWA CITY FY07 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Applicant Contact: Project Address: Activity Type: CITY STEPS Priority: CITY STEPS Goal Achieved: Beneficiaries: Amount Requested: Loan or Grant: Repayment Terms: Free Medical Clinic — Case Management Page 135 Sandy Pickup 337-9729 120 N. Dubuque Street Public Service High — Health Services Provision of Health Services: Continue support of health, dental and HIV/AIDS services. (Page 115) 0-30% mfi 43% 31-50% mfi 37% 51-80% mfi 18% Over 80% mfi 2% $21,000 Grant NA Total Cost Per Person: $1,881 Percent of Project Publicly Funded: 4% Leveraging City CDBG: $25.87 in other funds for each CDBG dollar requested Property Taxes: Tax exempt STAFF ANALYSIS Documentation of Project Need: In FY05 the Free Medical Clinic had 2,170 patient visits for chronic ailments such as diabetes, hypertension, asthma and depression, a 33% increase from FY04 and a 61 % increase since FY03. The applicant notes that there are no other free services in Iowa City that provide on -going health care for low -to -moderate income person. According to the Kaiser Commission report, submitted with the application, low-income workers are less likely to be offered coverage through their own or a spouse's job or afford it on their own and applicant states the number of patients using FMC as their "medical home" is increasing faster than they can keep up. CITY STEPS lists Health Services as a high priority and has a short-term objective to continue the support of health, dental and HIV/AIDS services. Project Budget Discussion Applicant provides $24.97 in other funds for every CDBG dollar requested. The total public (CDBG) cost per person is $70 or $9.68 per visit (based on 2,170 patient visits). Project leverages $400,000 in donated prescription medications and $50,000 in laboratory tests paid for by the University of Iowa Hospitals and Clinics. The applicant received CDBG funds for operational expenses in FY01, FY03, FY04, FY05 and FY06. Project Coordination with Existing ServiceslActivities The Free Medical Clinic has a long history of working with a variety of agencies and organizations in Iowa City, such as Shelter House, DVIP, U of I Hospitals, U of I Dental program, MECCA, STAR and many private health care professionals. Applicant History or Capacity to Successfully Complete the Proposed Project The Free Medical Clinic has successfully administered CDBG funds in previous years. Additionally, the clinic has a 30-plus year history of operating the clinic and overseeing renovations funded with grants and donations. Summary of Items to be Addressed 1. Are all of the costs shown in the application (totaling $524,400) for the 300 clients with chronic ailments (diabetes, hypertension, asthma and depression)? 2. Will the project continue with partial funding? 3. How will applicant locate funds for operational costs in the future? CITY OF IOWA CITY FY07 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Visiting Nurse Association of Johnson County Page 173 Applicant Contact: Suellen Novotny 337.9686 ext. 148 Activity Type: Public Service Project Address: Citywide CITY STEPS Priority: HIGH — Health Services CITY STEPS Goal Achieved: Continue support of health, dental and HIV/AIDS services. (p. 115) Beneficiaries: 0-30% mfi 94% 31-50% mfi 3% 51-80% mfi 3% Over 80% mfi 0% Amount Requested: $ 10,000 Repayment Terms: Grant Total Cost Per Person: $1,580 per person based on 34 persons receiving home health services over a one year period. Percent of Project Publicly Funded: 19% Leveraging City CDBGIHOME Funds: $4.37 in other funds for each CDBG dollar requested. Property Taxes: Tax Exempt STAFF ANALYSIS Documentation of Project Need The Visiting Nurse Association of Johnson County (VNA) is requesting assistance in covering the cost of home health services to 34 low-income Iowa City residents requiring care related to mental health disorders. The VNA is the primary provider of mental health home care in Iowa City. The VNA provided 695 mental health home visits last year, the majority of which resulted in a financial loss for the agency. They have noticed an increase of patients without insurance for medically related home care, further limiting their ability to increase subsidies for mental health services. Project Budget Discussion All of the CDBG funds are targeted for operational expenses (salaries) for the nursing visits. Most of the other funds have been committed and the funds are expended as the services are rendered. Project Coordination with Existing ServiceslActivities The VNA works actively with the Community Mental Health Center and area psychiatrists to provide home care for mental health needs. The nurses providing mental health home care also coordinate with a variety of community service providers. Applicant History or Capacity to Successfully Complete the Proposed Project The VNA has not received CDBG funds in the past; however, the VNA does have experience administering grants from the State of Iowa, Johnson County and the United Way. They are also a Medicare certified agency and they receive an annual financial audit. Summary of Items to be Addressed 1. What percentage of the individuals that you assist live in Iowa City? 2. Please describe the implications of partial funding. 3. What is the VNA's long-term plan for generating funds? CITY OF IOWA CITY FY07 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Applicant Contact: Project Address: Activity Type: CITY STEPS Priority: CITY STEPS Goal Achieved: Beneficiaries: Amount Requested: Repayment Terms: Total Cost Per Person Percent of Project Publicly Funded: Compeer Program Page119 Karen Ganiard 338.7884 extension 245 507 E. College Street Public Service High — Health Services Provision of Health Services: Short -Term Objectives: Continue support of health, dental and HIV/AIDS services. Long Term Objective: Encourage participation of additional health care service providers. (Page 115) 0 — 30% mfi 84% 31 — 50% mfi 14% 51 — 80% mfi 2% $2,583.60 Grant $753 7% Leveraging City CDBGIHOME Funds: $13.57 in other funds for each CDBG dollar requested Property Taxes: Tax Exempt STAFF ANALYSIS Documentation of Project Need This project connects a trained volunteer with a person with chronic mental illness to encourage and support participation in community activities. The program indicates that it will cut down the isolation and loneliness many with chronic mental illness experience. Applicant estimates there are approximately 926 persons diagnosed with Schizophrenia and 5,554 persons with Affected Disorders in Johnson County. There are currently 16 active one-on-one matches of volunteer friends from the community with adults receiving mental heath treatment for socialization and recreation and a volunteer coordinator for Skillbuilder activities for those on the waiting list for a volunteer match. The applicant requests funds to pay for a portion of the salary of the one -quarter time director. Project Budget Discussion The Board decreased the director position from one-half to one -quarter time and moved back into the Community Mental Health Center (CMHC), their parent organization. CMHC does not put money into the program, but provides in -kind services of office space, phone service, and insurance. Compeer does pay $200/month to CMHC for financial and accounting services. The project proposes using volunteers extensively at a value of $29,880. Project Coordination with Existing ServiceslActivities Compeer, like the Community Mental Health Center, relies on extensive coordination with existing services throughout the community. Applicant History or Capacity to Successfully Complete the Proposed Project The Board was formed in the fall of 2001 under the sponsorship of the Community Mental Health Center. Compeer received CDBG funds in FY05 and FY06. Summary of Items to be Addressed 1. Will the project continue if partial funding from CDBG is awarded? 2. The application states 50 persons will be served. Does this number include existing matches and those on the waiting list receiving Skillbuilder activities? 3. How many new matches does Compeer anticipate in FY07? 4. The program has been in existence for four years. How many total volunteer matches have been made? When recruiting and screening for new volunteers, what is the minimum time commitment (duration) that is encouraged? 5. Application states a survey of income will be undertaken to obtain income information of the 50 people matched or on the waiting list. As the project received FY05 & FY06 funding, income information on current persons served by the program should be available. Applicant must collect income and race/ethnicity data from all beneficiaries to verify eligibility for CDBG funds. CITY OF IOWA CITY FY07 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Shelter House — John Thomas Deposit Assistance and Emergency Assistance Program; Page 157 Applicant Contact: Christina Canganelli 338.5416 ext. 105 Activity Type: Public Services Project Address: City-wide CITY STEPS Priority: HIGH — Other Public Service Need CITY STEPS Goal Achieved: Homeless prevention Permanent Housing — Homeless (page 107) Beneficiaries: 0-30% mfi 100% Amount Requested: $ 1,500 Repayment Terms: Grant Total Cost Per Person/Household: Unknown due to a missing page in the application Percent of Project Publicly Funded: 5% Leveraging City CDBGIHOME Funds: $20.82 in other funds for each CDBG dollar requested Property Taxes: Undetermined as the recipients of the security deposits/emergency assistance may reside in privately owned units (taxable) or in units owned by non-profit organizations (tax exempt). STAFF ANALYSIS Documentation of Project Need Iowa City homeless shelters serve hundreds of people each year. Homeless facilities are designed to serve as emergency shelter or as a temporary housing solution. This program assists homeless individuals or households secure housing or maintain their existing housing. The need for security deposit assistance is documented in the Analysis of Impediments to Fair Housing where it is mentioned as a barrier to low income persons seeking housing. Many households experience difficulty saving enough to pay the upfront rental costs to obtain a rental unit. Emergency assistance helps maintain housing for those households near homelessness. The short-term cost of such assistance is much lower than the long-term expense to support the same household in emergency facilities. The assistance provided is a one-time deposit or emergency payment to secure or maintain housing. Project Budget Discussion The Security Deposit program has received CDBG funds for the past five years. The amount of direct assistance to LMI households is $10,880 with the remainder of the program budget earmarked for staff costs and program materials. The staff cost of $21,355, as shown in the application, is almost double the amount of the direct financial assistance ($10,880). The Security Deposit program has received CDBG funds for the past five years. The applicant's history with this program indicates that over 100 persons will be assisted, which averages about $100 per household. However, the page of the application that states the number of persons anticipated to be assisted was missing from this year's application so we are not able to compute the average cost per person. Shelter House has worked with landlords to secure a repayment of the deposit assistance in the event an assisted household moves out. Shelter House anticipates the return of $1,750 to be used for the continued operation of this program. Due to lead based paint regulations the project had to be modified in FY04. Security deposit assistance can not be provided to tenants that will use the assistance to live in a unit built before 1978. One-time emergency rent or utility assistance can be provided which is exempt from the lead regulations. To utilize the one-time emergency assistance the applicant must receive one of the following: an eviction notice, utility shut-off notice, or must be residing in a shelter. Project Coordination with Existing ServiceslActivities Referrals by other service organizations are recognized. Referrals are accepted from various sources including Domestic Violence Intervention Program, the Crisis Center, The Housing Fellowship, local landlords and/or management companies, and the faith community. Applicant History or Capacity to Successfully Complete the Proposed Project Shelter House has been successful in completing this CDBG funded project over the last few years. Summary of Items to be Addressed 1. Please submit the page of the application with questions 10, 11 & 12. 2. What is the increase in the number of households that were able to relocate out of Shelter House due to this program. 3. What percentage of households are successful in maintaining their place of residence for 6 months to 1 year after they receive the one-time assistance? 4. Does one-time assistance mean one time per year? 5. This project has received CDBG funds since FY02. Will this program become self- sustaining through the repayment of rent deposits? CITY OF IOWA CITY FY07 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Shelter House — Outreach Services Coordinator/Cash Match Page164 Applicant Contact: Christina Canganelli 338.5416 ext. 105 Activity Type: Public Service Project Address: 331 N. Gilbert Street CITY STEPS Priority: HIGH — Homeless Needs CITY STEPS Goal Achieved: Expanding staff and capabilities within the existing system to provide improved service and expanding available services. (p. 108) Beneficiaries: Presumed Benefit (Homeless) Amount Requested: $ 10,000 Repayment Terms: Grant Total Cost Per Person: $1,072 per person based on anticipated shelter usage of 525 persons over a one year period. Percent of Project Publicly Funded: 98% Leveraging City CDBGIHOME Funds: $55.26 in other funds for each CDBG dollar requested. Property Taxes: Tax Exempt STAFF ANALYSIS Documentation of Project Need Shelter House is proposing a fifth year of case -management services to an estimated 525 persons annually. The application indicates the staff coordinator to be paid for with CDBG funds are to be a part of the STAR program. As such, these funds will be used to help meet the matching requirement for the STAR program. The newly renewed STAR grant will require approximately $106,750 in local match. Project Budget Discussion All of the CDBG funds are targeted for operational expenses (salaries) for the outreach and case management functions. Other services (e.g. employment assistance, life skills, etc.) are provided through the STAR program, which represents approximately 60% of the "other funds" identified in the application. Volunteers are anticipated to provide 750 hours of general administrative assistance to the proposed project for a value of $7,500. Project Coordination with Existing ServiceslActivities Referrals to local human service organizations are essential to the success of this proposed project. The function of the outreach coordinator is to focus on expediting access to local mental health and substance abuse resources, employment, housing and other corollary community based and public resources. Applicant History or Capacity to Successfully Complete the Proposed Project Shelter House has been successful in completing a number of similar public service and public facility CDBG projects. Summary of Items to be Addressed 1. CDBG funds were used to provide a portion of the cash match required to leverage the STAR grant in FY05 and FY06. What other funds will be used to complete the cash match in FY07? 2. How many of the 525 clients identified in the application will participate in STAR? 3. Discuss various outcome measures such as how many clients residing at the shelter obtain permanent housing, how many clients with substance abuse problems or with mental health issues seek and continue treatment with the appropriate provider. 4. This is the sixth year of funding for this activity. What is STAR's long-term plan for generating match? 5. In question 9, Goodwill is shown as committing $5,000. Where is this shown in the budget breakdown? CITY OF IOWA CITY FY07 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Iowa City Housing Authority Tenant Based Rental Assistance (TBRA), Page 41 Applicant Contact: Steve Rackis 887.6065 Project Address: Citywide Activity Type: Housing CITY STEPS Priority: High — Small Related Renter\Large Related Renter — cost burdened > 30% with incomes at or below 30% mfi Medium — Elderly Related Renter — cost burdened > 30% with incomes at or below 30% mfi CITY STEPS Goal Achieved: IV B. Affordable Housing Rental Assistance (page 101) Beneficiaries: 0-30% mfi 100% Amount Requested: $368,064 Loan or Grant: Grant Repayment Terms: Grant for Tenant Based Rent Assistance Total Cost Per Person: $1,704 over the two-year term of the rent assistance. Percent of Project Publicly Funded: 70% Leveraging City CDBG\HOME Funds: (e.g. 1:1) $0.30 in other funds for each local HOME dollar requested Property Taxes: Indirectly, private owners/landlords providing rental units pay property taxes. STAFF ANALYSIS Documentation of Project Need CITY STEPS recognizes that rental assistance is the most often cited and important need identified by low-income persons due to the high market rents in Iowa City. As of 1/4/06, the ICHA reports 2,977 families on the Housing Choice Voucher (HCV) waiting list. This is an increase of 886 since last year (1/13/05). Of which, 138 of the applicants are elderly and 843 are disabled. The proposed project will assist 72 low-income elderly and/or disabled households (36 households per year over a 2-year period) with direct housing assistance to landlords on behalf of eligible participants. The proposed project will mitigate the impact of federal budget reductions in the HCV program and allow the ICHA to provide immediate assistance to elderly and/or disabled families currently on the waiting list and maintain assistance to low income families up to their HUD approved baseline of 1,213 families. There is a 2+ year wait for HCV assistance. Project Budget Discussion In the proposed project, participants pay no more than 30% of their adjusted gross income towards rent. The ICHA anticipates that they will subsidize approximately 70% of the contract rent. The HUD calculated per unit cost for the ICHA is $426/month. The tenant is responsible, on average, for approximately 30% the contract rent to private landlords scattered throughout Iowa City. Project Coordination with Existing ServiceslActivities Families participating in the proposed project will remain on the HCV and Public Housing waiting lists. When they reach the top of either list, the ICHA will process their applications and transition the families into the HCV or Public Housing program. Applicant History or Capacity to Successfully Complete the Proposed Project The ICHA successfully implemented a TBRA program with FY06 funds and that project is currently active. It also maintains public housing units and administers the Housing Choice Voucher Program. The ICHA has received HUD's High Performance designation status for 10 consecutive years. Summary of Items to be Addressed 1. Discuss possibility of partial funding if necessary. 2. HOME rules allow the applicant to use TBRA outside of Iowa City, what limitations would applicant set regarding portability and how many clients would be served outside of Iowa City? 3. Will applicant have a minimum tenant rent level? 4. Discuss availability of accessible rental units. CITY OF IOWA CITY FY07 CDBG\HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Harmony Development L.L.C. - Affordable Rental Housing, Page 12 Applicant Contact: Tracy Falcomata 338-7600 Project Address: Not Identified Activity Type: Housing CITY STEPS Priority: Medium/High - Large Renter — cost burdened below 50% mfi Low /Medium — Households cost burdened with 50-80%mfi CITY STEPS Goal Achieved: IV B. Affordable Housing Production of New Units (Page 98) Beneficiaries: 0-30% mfi 0% 31-50% mfi 50% 51-60% mfi 50% 61- 80% mfi 0% Over 80% mfi 0% Amount Requested: $360,000 Repayment Terms: 1 % for 50 years. These terms do not comply with the City Council's CDBG\HOME Investment Policy (Res. #05- 213) which calls for a 1 % loan with a maximum term of 30 years. Total Cost Per Person: $54,599/person Capital improvement project that will benefit individuals over a 30-year HOME affordability period which corresponds with the loan term. Total cost per person over this 30-year period equals $1,820. Percent of Project Publicly Funded: 93.2% Leveraging City CDBGIHOME Funds: $3.09 in other funds for each HOME dollar requested Property Taxes: Paid according to Iowa law for LIHTC projects. The applicant estimates tax payments in the amount of $6,300 annually. 02/10/06 STAFF ANALYSIS Documentation of Project Need The application references various studies, including the Maxfield Housing Market Analysis and CITY STEPS plan. Both of these documents show a need for housing that is affordable to low - moderate income (LMI) persons. This project will provide six rental units to LMI households under 60% median family income. Project Budget Discussion Over 93% of the project is publicly funded. The HOME funds being requested is for land acquisition. The proposed budget shows an average of $60,000 in land acquisition costs, $125,000 for construction, $23,030 in developer fees and $37,664 in other soft costs per unit. The application indicates that a non-profit will be the managing general partner for the ownership entity which qualifies the project for a 1 % loan. However, the loan amortization period shown in the application is for 50 years, which is not in non-compliance with the City Council's CDBG\HOME Investment Policy. Using the 30 year term identified within the City Council's policy an additional $4,743 will be needed annually for debt service. The applicant has indicated that they will apply for LIHTCs in and State HOME funds in November 2006 with an anticipated award date of Spring 2007. The total cost of the project, minus the $54,737 `reserve' account is $236,571 per unit. Project Coordination with Existing ServiceslActivities The applicant has shown an ability to work with a variety of agencies and organizations Applicant History or Capacity to Successfully Complete the Proposed Project The applicant has identified partners, including Jesse Burns and Robert Burns and Associates, to manage and develop the proposed project. These partners have successfully managed numerous CDBG and HOME funded projects. This structue has experience and a successful track record with the development and management of affordable housing. Summary of Items to be Addressed 1. Discuss the ability of the project to proceed financially within the terms of the CDBG\HOME Investment Policy. 2. In the past, other applications for LIHTC projects have indicated to HCDC that the projects must be at least 12-24 units in size to be favorably considered for LIHTCs and syndication. This project, as proposed, is six units. Please discuss. 3. Should a non-profit partner not be found, will the project proceed as a for -profit? If so, will it be able to cash -flow with additional debt service if the interest rate were to rise above 1 %? 4. In question 16, the proposed project indicates six, 3-bedroom units and in question 18 the text refers to 3 or 4 bedroom units. Please clarify. 5. If the project does not receive State LIHTC and\or HOME funds will the project continue? 6. Discuss design of the proposed units & compatibility with existing neighborhoods. 7. In question 18 the applicant refers to available lots in Whispering Meadows Subdivision (CT 18 BG 1). This is not an area identified for additional affordable housing. Please discuss. 8. Please provide a location map of the potential locations. 02/10/06 CITY OF IOWA CITY FY07 CDBG\HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: The Housing Fellowship - Affordable Rental Housing Preservation, Page 26 Applicant Contact: Maryann Dennis 358.9212 Project Address: Coneflower Ct, Hotz Ave., Douglass St., and Taylor Dr. and N. Governor St. Activity Type: Housing CITY STEPS Priority: High - Large Renter — cost burdened with incomes at or below 50% Medium — Households cost burdened with incomes at 80% CITY STEPS Goal Achieved: IV B. Affordable Housing Production of New Units (Page 93) Beneficiaries: 0-30% mfi 0% 31-50% mfi 0% 51-60% mfi 94% 61- 80% mfi 6% Over 80% mfi 0% Loan or Grant: $250,000 Loan Repayment Terms: Prime Rate minus 2% for 30 years. Total Cost Per Person: $25,185/person Capital improvement project that will benefit individuals over a 30-year HOME affordability period which corresponds with the loan term. Total cost per person over this 30-year period equals $839.50. Percent of Project Publicly Funded: 80.9% Leveraging City CDBGIHOME Funds: $5.35 in other funds for each HOME dollar requested. Property Taxes: Paid according to Iowa law for LIHTC projects. The applicant estimates tax payments in the amount of $22,083 in project year one. 02/10/06 STAFF ANALYSIS Documentation of Project Need The application references various studies, including the Maxfield Housing Market Analysis and CITY STEPS plan. Both of these documents demonstrate the community need for housing that is affordable to low -moderate income (LMI) persons. This project proposes to preserve 16 rental units for LMI households, would lower rents and add them to the tax rolls. Since the 16 units are existing, have been previously assisted with public funds (City of Iowa City - CDBG) and are owned by a non- profit the proposed project involves a sale of the units to a for -profit entity for the purpose of securing funding for rehabilitation and operations. This shift of ownership is based upon the requirements of the LIHTC program. Project Budget Discussion Approximately 81 % of the project is publicly funded. The proposed budget shows an average of $53,379 in acquisition costs, $19,000 for rehabilitation, $7,638 in developer fees and $19,147 in other soft costs per unit. The applicant has indicated that they will apply for State LIHTCs and HOME funds in November 2006 with an award date anticipated to be March 2007. The rent levels shown on the application (question 16) are lower than the allowable HOME limits. This reduction in rental income improves affordability of the unit to LMI households. Project Coordination with Existing ServiceslActivities The applicant has a long history of working with a variety of agencies and organizations to help insure the success of each project and of the families living in each home. In the past they have constructed owner -occupied homes in conjunction with the Iowa City Community School District and the Homebuilders Association. Applicant History or Capacity to Successfully Complete the Proposed Project The Housing Fellowship has successfully managed hundreds of thousands of dollars of CDBG and HOME funded projects. The Housing Fellowship has experience and a very good track record with the acquisition and rehabilitation of affordable housing. This project will not qualify for the CHDO set -aside within the HOME program. Summary of Items to be Addressed 1. The need for rehabilitation and\or financial necessity for the proposed project is not well defined in the application. Please discuss. 2. Use of the LIHTC program is relatively new for The Housing Fellowship. Please describe the relationship with the various partners that will bring technical assistance or experience to the proposed project. 3. Update on status of FY05\06 projects? The Housing Fellowship indicates $546,200 in prior year funds committed to projects, but not expended. 4. What happens if the project does not receive State LIHTCs and\or State HOME funds? 5. The proforma shows a return on investment of over 27% in the first 10 years. This appears to be high. Please discuss. 6. Would the lower rents enable households without HCV to lease these units? 7. Since prior public funding has been invested in the units identified, do these funds include HOME monies? If so, please discuss how new HOME funds could be used for this project in compliance with the HOME rule (24 CFR 92.214 (6)) which prohibits the use of additional HOME funds during the period of affordability. 02/10/06 CITY OF IOWA CITY FY07 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Iowa Valley Habitat for Humanity (IVHFH) Page 1 Applicant Contact: Mark Patton 337.8949 Project Address: Citywide Activity Type: Housing CITY STEPS Priority: High — Large Related Owner- Physical Defects with incomes at or below 50% High — Large Related Renters — cost burdened > 50% with incomes at or below 30% Medium —Large Related Renters —cost burdened > 30% with incomes at or below 50% CITY STEPS Goal Achieved: IV B. Affordable Housing Production of New Units (page 101) Beneficiaries: 0-30% mfi 50% 31-50% mfi 50% Amount Requested: $220,000 Repayment Terms: Grant due to the units being placed in a Community Land Trust. Total Cost Per Person: $20,810 Capital improvement project that will benefit individuals over a 99-year affordability period. Total cost per person over this 99-year period equals $210. Percent of Project Publicly Funded: 50.3% Leveraging City CDBGIHOME Funds: (e.g. 1:1) $0.99 in other funds for each local HOME dollar requested Property Taxes: Homeowners will pay full property taxes. STAFF ANALYSIS Documentation of Project Need CITY STEPS identifies affordable housing as a great need in Iowa City. Owner -occupied housing for those families living in homes with physical defects is a high priority as is the provision of affordable housing for households earning between 0-50% median income that are identified as cost burdened. Habitat builds based on the selected household's need. This project is designed to provide four affordable homes that will be available to a household between 25-50% of median family income (mfi). Of the qualified families, those with the greatest need are selected. Habitat reviews several factors such as spending too high a percentage of disposable income on housing, overcrowded sleeping space and dangerous or dilapidated housing conditions. Habitat requests funds for land acquisition only. Project Budget Discussion Private funding, volunteer labor and in -kind donations make up 49.7% of the project budget. Each selected family must put in up to 250-400 hours of sweat equity into the construction of the home. The proposed budget shows an average of $55,000 in land acquisition costs, $60,000 for construction, $4,000 in developer fees and $1,500 in other soft costs per unit. IVHFH houses are sold with no profit. Repayments are recycled back into additional home construction. Due to the donations, private labor and grant funds, Habitat states that the homes they sell will be priced approximately 25% below the appraised value. The applicant is prohibited by its national parent organization from charging interest to the families they house. Applicant states that they will be able to serve families under 50% of the median income (typically those families have been between 20-50% mfi). The total cost per unit for the proposed project is $104,857 Project Coordination with Existing ServiceslActivities The Iowa Valley Habitat for Humanity works with volunteers, donors, agencies, churches, and businesses to build permanent, safe housing for persons under 50% of median family income. Applicant History or Capacity to Successfully Complete the Proposed Project Since 1992, Iowa Valley Habitat for Humanity has successfully completed approximately 35 single-family homes. To date, IVHFH has used CDBG and/or HOME funds to acquire land for the construction of more than 15 homes. Summary of Items to be Addressed 1. Discuss possibility of partial funding, if necessary. 2. Are repayments of loans to Habitat, on Iowa City located homes, recycled back into home construction in Iowa City? 3. Discuss design of the proposed units & compatibility with existing neighborhoods. 4. The application (question 10a) shows a total Project Funding of $413,000. The amount shown on the line items totals $437,000. Please review these numbers. 5. Question 11 detailing the Uses of Funds shows $479,000 in expenses. However, the Sources of Funds in Question 10a totals only $437,000. How will this apparent deficit of $42,000 be addressed? CITY OF IOWA CITY FY07 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Iowa Valley Habitat for Humanity — ReStore Project Page 102 Applicant Contact: Mark Patton 337-8949 Project Address: Not Identified Activity Type: Public Facility CITY STEPS Priority: Low — Other Public Facilities CITY STEPS Goal Achieved: ?? Beneficiaries: 0-30% mfi 29% 31-50% mfi 29% 51-80% mfi 29% 80-100% mfi 13% Over 100% mfi 0% Amount Requested: $200,000 Repayment Terms: Earned Grant. Compliance period of 66.67 years. Total Cost Per Person: $623/person Capital improvement project that will benefit individuals over a 15-year useful life expectancy. Total cost per person over a 15-year period: $42. Percent of Project Publicly Funded: 92% Leveraging City CDBG\HOME Funds: $3.36 in other funds for each CDBG dollar requested Property Taxes: Payment in lieu of taxes ($8,000) STAFF ANALYSIS Documentation of Project Need The proposed project has identified the need for this project to be environmental (50 tons of building material saved and sold to the public for reuse in their first year of operation), and a partnership with the Furniture Project and the Friends of Historic Preservation to co -locate so that the public can easily access their services. Applicant identifies Renter, Small and Large Cost Burden as the one most applicable priority need for this project, however does not explain how this project will directly assist low income renters or how the project will develop additional affordable homeownership opportunities for LMI households. The building materials provided at a cost savings to landlords, homeowners or to for -profit entities may not directly assist low -to -moderate income renters. Project Budget Discussion The project relies on a $600,000 contribution from the City of Iowa City. Has the City committed these funds? The identified property will also need to be rezoned. What is the staff recommendation for the rezoning of the property? No construction estimate or purchase offer was included with the application. Restore saved and sold 50 tons of building material, however there is no mention of how much of the proceeds went directly back into the production of affordable housing units or how much of the saved materials were used in the construction of homes completed by the applicant. Project Coordination with Existing ServiceslActivities The applicant has a history of working with local construction companies and building supply stores as well as volunteers. Project proposes to co -locate with two programs, the Furniture Project and the Friends of Historic Preservation. The Furniture Project reuses donated furniture and provides it to low income households transitioning from homelessness or a life changing situation. Applicant History or Capacity to Successfully Complete the Proposed Project The applicant has successfully administered CDBG and HOME funds in past projects. Applicant has operated the ReStore for one year. Summary of Items to be Addressed 1. How was the estimate of the population to be served calculated? Are the 1,400 clients served the number of potential purchasers of building materials? If so, applicant anticipates no one over 100% of median income to purchase building materials? 2. Indicate how this project directly helps low -to -moderate income renters or increases the production of affordable housing units for low income households since applicant stated that as the most applicable priority need. 3. Is there a purchase offer for the proposed building? How were the costs of the project determined? 4. Letters of support from the Furniture Project and Friends of Historic Preservation were not included with the application. Does the applicant have a firm commitment from these partners to co -locate or contribute to shared expenses? 5. Please confirm what HUD national objective this project is intended to meet (benefit low -to - moderate income persons, aid in the prevention of slum and blight, or urgent community need (i.e. natural disasters)) and how it will meet this objective. CITY OF IOWA CITY FY07 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Grant Wood Elementary PTO Page 92 Applicant Contact: Marla Edwards 351.1751 Project Address: 1930 Lakeside Drive Activity Type: Public Facility CITY STEPS Priority: High — Neighborhood Facilities CITY STEPS Goal Achieved: Plan and construct neighborhood facilities (Page 113) Beneficiaries: Area Benefit: Census Tract 18 > 51% LMI Amount Requested: $56,437 Repayment Terms: Earned Grant. Compliance period of 18.81 years. Total Cost Per Person: $264/person Capital improvement project that will benefit individuals over a 15-year useful life expectancy. Total cost per person over a 15-year period: $18. Percent of Project Publicly Funded: 41 % Leveraging City CDBGIHOME Funds: $1.86 in other funds for each CDBG dollar requested Property Taxes: Tax exempt STAFF ANALYSIS Documentation of Project Need CITY STEPS identifies neighborhood facilities as a high priority. CITY STEPS also encourages the addition of parks and recreational facilities in low-income neighborhoods. Wood Elementary is a large elementary school in Iowa City with 417 students (433 enrolled as of January 15). Of the 417 students, applicant states 42% are eligible for free or reduced lunch. Wood Elementary is in Census Tract 18, a tract where over 51 % of the households are below 80% of the area median income. In FY05 Wood Elementary received City and CDBG funds to build a large community gymnasium (for school use as well as Iowa City Parks and Recreation programming) and a family resource center. The resource center will house a pre-school program operated by Neighborhood Centers of Johnson County (NCJC). Applicant states the work is near complete, but required the removal of various play equipment that cannot be repositioned after the completion of the gymnasium/family resource center due to new safety standards. The FY05 family resource center and gymnasium project at Wood encouraged several community partnerships. This application supports outdoor recreational activities, i.e. playground improvements, at the site and benefits the school, the pre-school operated by NCJC, east side summer school students, before and after school students, and the surrounding neighborhood. Project Budget Discussion Applicant has a volunteer contribution of $8,000 and has sought additional funding sources from multiple sources. Applicant has been successful in obtaining various grants for this project. The budget includes playground and surface categories, but does not elaborate on what types of equipment/surface will be purchased. Project Coordination with Existing Services' Activities Applicant stated they are working with the ICCSD Safety Director. Applicant is working with various partners in the selection and installation of playground equipment that will benefit several schools, City and other agency programs. Applicant History or Capacity to Successfully Complete the Proposed Project The ICCSD has successfully administered previous CDBG projects and has experience working with a variety of federal and non-federal funding sources. The school district, if willing as the parent organization, must enter the agreement with the City as they own the project site. Summary of Items to be Addressed 1. The City Investment Policy for CDBG/HOME funds state that a security instrument, such as a mortgage, must be utilized for all public facility projects. By law a mortgage can not be filed on property owned by the school district. Applicant must provide another option for a security instrument or get a waiver from Council from this policy. 2. The compliance period is 18.8 years, if fully funded, based on the City Investment Policy. What is the life expectancy for these improvements? 3. Applicant identifies that the PTO will revise the playground equipment order in April 2006. To be reimbursed with CDBG funds, the applicant may not incur expenses, i.e. order the equipment until July 1, 2006. Will applicant be able to delay ordering until such date? 4. A detailed cost estimate was not provided with the application. Please provide details of total project costs and types of equipment to be purchased. Please also indicate if the ICCSD Safety Coordinator has approved all proposed equipment and surfaces. 5. The applicant may not enter a CDBG agreement with the City as it does not own the property where the equipment will be installed and is not a legal entity certified with the State. Will the school district, as the parent organization, be willing to enter the agreement on behalf of the applicant? CITY OF IOWA CITY FYO7 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Applicant Contact: Project Address: Activity Type: CITY STEPS Priority: CITY STEPS Goal Achieved: Beneficiaries: Amount Requested: Repayment Terms: Domestic Violence Intervention Program (DVIP) Page - 72 Kristie Fortmann Doser 351.1042 ext. 112 (Undisclosed) Iowa City Public Facility High — Emergency Shelter Strategy: Improve and maintain existing shelter facilities. (Page 108) 0-30% mfi 85% 31-50% mfi 8% 51-80% mfi 3% Over 80% mfi 4% $6,400 Earned Grant. Compliance period of 2.13 years. Total Cost Per Person/Household: $ 7.62 per person Capital improvement project that will benefit individuals over a 15-year useful life expectancy. Total cost per person over a 15-year period: $.51 Percent of Project Publicly Funded: 93% Leveraging City CDBGIHOME Funds: $.08 in other funds for each CDBG dollar requested. Property Taxes: Tax Exempt STAFF ANALYSIS Documentation of Project Need DVIP provides shelter, crisis intervention and support services to victims of domestic violence and their children. A critical aspect of the program is to provide a safe environment while the client moves beyond the initial stages of crisis. The shelter has housed more than 3,600 women and children since the facility was constructed in 1993. Applicant requests funds to replace the original carpet in the hallway on the second floor. Project Budget Discussion CDBG funds make up approximately 93% of the project's budget. Applicant secured bids for the expenses stated in the budget breakdown, so the costs appear to be valid. Project Coordination with Existing ServiceslActivities DVIP collaborates with a wide range of community groups working on housing issues and support services. Applicant History or Capacity to Successfully Complete the Proposed Project DVIP has received a number of CDBG funding awards, including funds to construct and subsequently rehab the current facility. DVIP has always shown sufficient capacity to complete the projects. Summary of Items to be Addressed 1. Has DVIP researched the availability of using other funds? 2. DVIP anticipates fundraising to provide the stated project match of $500. Has fundraising already begun for this project? 3. Please provide a timeline as to when the applicant estimates they will obtain the necessary funds and when they will begin and complete this project. 4. If partially funded, will the project continue? 5. Does DVIP have a capital reserve budget? 6. Has DVIP researched other flooring types? carpet vs. tile vs. vinyl 7. Application states that contractors have stated that DVIP can wait a year. Why not fundraise for this project and apply in FY08 if a gap still exists? 8. Applicant states in the application that the FY06 CDBG funds have been expended; however, City records state that the funds have not been expended. Please explain. 9. Federal labor provisions will apply to this project (Davis Bacon — prevailing wages) CITY OF IOWA CITY FY07 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Applicant Contact: Project Address: Activity Type: CITY STEPS Priority: CITY STEPS Goal Achieved: Beneficiaries: Amount Requested: Repayment Terms: Total Cost Per Person: Four Oaks Youth Center Page 82 Kelli Malone/Mary Chval 337.4523 1916 Waterfront Drive Public Facility High — Youth Center Provision of Youth Center (Page 112) 0-30% mfl 100% $200,000 Earned Grant. Compliance period of 66.7 years. $1,254/person Capital improvement project that will benefit individuals over a 15-year useful life expectancy. Total cost per person over a 15-year period: $84 Percent of Project Publicly Funded: 50% Leveraging City CDBGIHOME Funds: $1.00 in other funds for each CDBG dollar requested Property Taxes: Tax exempt STAFF ANALYSIS Documentation of Project Need CITY STEPS identifies youth centers as a high priority with a long term objective of investigating the need for additional space for youth programs. Applicant proposes to construct an addition to their youth emergency shelter to provide space for existing programs, primarily the Structured Community Treatment program. Applicant states the addition would allow space for junior and senior high youth in need of supervised treatment as well as space for staff and therapists, meeting rooms and a large activity room for indoor recreation, activities and learning space. The project serves youth, predominantly low-income, who have struggled with school and delinquent behaviors and need assistance with removing barriers to a productive adult life. Applicant's programs are designed to keep youth in their home and promote the stability of the family preventing costly detention or group care services. Project Budget Discussion Applicant has a volunteer contribution of $5,000 and will provide $195,000 of their funds for this project. Applicant received a contractor's estimate for the building addition. Applicant must advertise and follow federal procurement standards before choosing a contractor and proceeding with work. Project Coordination with Existing ServiceslActivities Program staff works with several community youth partners such as the ICCSD, Juvenille Court, Iowa City Police Department, Department of Human Services, and the UIHC. Applicant History or Capacity to Successfully Complete the Proposed Project Four Oaks has a 35-year history of serving youth and families in Johnson County and has worked with multiple funding sources, including CDBG funds. Summary of Items to be Addressed 1. Applicant must follow federal procurement standards. Procurement by sealed bids (formal advertising) is the preferred method for construction contracts over $100,000. Indicate how applicant will comply with these standards. 2. Applicant states the programs that will occupy the new space are up and running, however their leases (off -site) will expire this year. What are the advantages in consolidating the program space? Are there any disadvantages? 3. Federal labor provisions will apply to this project (Davis Bacon — prevailing wages). 4. Has applicant requested funds from other sources such as the ICCSD or the Department of Human Services to assist with this project? 5. Will the project continue if the project receives partial funding? CITY OF IOWA CITY FY07 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Applicant Contact: Project Address: Activity Type: CITY STEPS Priority: CITY STEPS Goal Achieved: Beneficiaries: Amount Requested: Repayment Terms: MECCA Page - 110 Ron Berg 351.4357 430 Southgate Avenue Public Facility Low — Health Facilities High — Health Services Strategy: Provision for Health Facilities (p-113) 0-30% mfi 51% 31-50% mfi 8% 51-80% mfi 2% Over 80% mfi 39% $22,000 Earned grant. Compliance period of 7.33 years. Total Cost Per Person/Household: $17.32 per person Capital improvement project that will benefit individuals over a 15-year useful life expectancy. Total cost per person over a 15-year period: $1.15 Percent of Project Publicly Funded: 44% Leveraging City CDBG\HOME Funds: $1.27 in other funds for each CDBG dollar requested. Property Taxes: $25,000 a year for the transitional apartments, but are tax exempt for the portion of the buildings that house offices for the non-profit. STAFF ANALYSIS Documentation of Project Need MECCA provides substance abuse counseling and treatment along with HIV/AIDS services to over 2,800 people a year. The building was constructed over 20 years ago and still has most of the original carpeting. The applicant requests funds to replace all of the carpeting at their main facility on Southgate Avenue. Project Budget Discussion CDBG funds make up approximately 44% of the project's budget and the remaining funds are committed. Applicant plans on replacing 10,000 sf of carpet and estimated the cost to be $5.00 a sf. The applicant states that 950 hours of volunteer time is documented at this facility, but it appears to be related to the programming at the facility and not for the carpet replacement project. Project Coordination with Existing Services1Activities MECCA collaborates with a wide range of community groups working on substance abuse issues, housing issues and support services. Applicant History or Capacity to Successfully Complete the Proposed Project MECCA has received a number of CDBG funding awards, including funds to construct the current facility in 1985. MECCA has always shown sufficient capacity to complete the projects. Summary of Items to be Addressed 1. Has MECCA researched the availability of using other funds? 2. If partially funded, will the project continue? 3. Does MECCA have a capital reserve budget? 4. Has MECCA researched a variety of flooring types? carpet vs. tile vs. vinyl 5. Federal labor provisions will apply to this project (Davis Bacon — prevailing wages) CITY OF IOWA CITY FY07 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: The Arc of Johnson County Page 54 Applicant Contact: Jennifer Adrian 351.5017 Project Address: 1700 S. First Ave. Ste 16 Activity Type: Public Facility CITY STEPS Priority: High — Child Care Center CITY STEPS Goal Achieved: Provision of Dependent Care Facilities (Page 112) Beneficiaries: 0-30% mfi 29% 31-50% mfi 21% 51-80% mfi 25% 80-100% mfi 14% Over 100% mfi 11% Amount Requested: $2,852.29 Repayment Terms: Earned Grant. Compliance period of 1 year. Total Cost Per Person: $17/person Capital improvement project that will benefit individuals over a 15-year useful life expectancy. Total cost per person over a 15-year period: $1.14. Percent of Project Publicly Funded: 73% Leveraging City CDBGIHOME Funds: $0.37 in other funds for each CDBG dollar requested Property Taxes: Tax exempt STAFF ANALYSIS Documentation of Project Need CITY STEPS identifies the provision of dependent care facilities as a high priority with the long term objective to support development of respite care, childcare and family resource centers. Applicant proposes to replace their worn carpet as it us unraveling and stained due to high traffic use for the past 10 years. There is constant traffic, wheelchair use, and playing children on the existing flooring. Applicant provides respite care to families with children who have a child with a disability. A majority of the families served are low-income and the goal of many of their programs is to help the families absorb the costs of having a child with special needs and to provide respite. Due to continued growth and service delivery, applicant states they do not have funds in their budget to pay for the full cost of the carpeting. Project Budget Discussion Applicant has a volunteer contribution of $604.96. Contractor states they are providing a discount of $400.00. Project Coordination with Existing Services%Activities Applicant coordinates with various agencies for space use and programming such as Iowa City Parks and Recreation, Children's Museum, Uofl School of Social Work, HyVee, and local churches. Applicant History or Capacity to Successfully Complete the Proposed Project Applicant will celebrate their 50 year anniversary in 2007. Applicant has experience administering programs from various funding sources. Summary of Items to be Addressed 1. If awarded funding, multiple bids (at least two) comparing similar quality carpeting is necessary to comply with federal procurement standards. This would also aid in determining the amount of discount a retailer is willing to provide. Were all bids compared for commercial grade carpet designed for high traffic areas? 2. Does applicant own all space they occupy at their Eastdale Plaza suite? 3. How often is the space to be carpeted utilized for respite or daycare for children with a disability? 4. Federal labor provisions would apply for the installation of the carpet (Davis Bacon — prevailing wages). 5. Will project continue if partial funding is approved? CITY OF IOWA CITY FY07 CDBG/HOME APPLICANT REVIEW STAFF REPORT Project Name & Page Number: Community Mental Health Center for Mid -Eastern Iowa Page - 62 Applicant Contact: Stephen Trefz 338.7884 ext 211 Project Address: 507 E. College Street Activity Type: Public Facility CITY STEPS Priority: Low — Health Facilities High — Health Services CITY STEPS Goal Achieved: Strategy: Provision for Health Services (p-113) Beneficiaries: 0-30% mfi 69% 31-50% mfi 21% 51-80% mfi 4% Over 80% mfi 6% Amount Requested: $18,280 Repayment Terms: Earned Grant: Compliance period of 6.09 years Total Cost Per Person/Household: $11.58 per person Capital improvement project that will benefit individuals over a 15-year useful life expectancy. Total cost per person over a 15-year period: $.77 Percent of Project Publicly Funded: 79% Leveraging City CDBG%HOME Funds: $.25 in other funds for each CDBG dollar requested. Property Taxes: Tax Exempt STAFF ANALYSIS Documentation of Project Need The Community Mental Health Center for Mid -Eastern Iowa (CMHC) serves over 2,000 individuals with mental illness each year. The CMHC is housed in a complex of four buildings just east of downtown. Two of the buildings are over 45 years old and the other two are over 120 years old. The proposed project is to provide maintenance and improvements to the properties for the safety of clients, staff and the general public. The improvements include installing a fence or railing on top of the retaining wall along College Street, replacement of the concrete entry stairs to the 507 building and repairing or replacing the concrete drive and parking areas. Project Budget Discussion CDBG funds make up approximately 79% of the project's budget and the remaining funds are committed. Applicant secured bids for the expenses stated in the budget breakdown, so the costs appear to be valid. Applicant will need to secure at least two bids if CDBG funds are awarded. Project Coordination with Existing ServiceslActivities CMHC collaborates with a wide range of community groups working on issues related to person with mental illness. CMHC works with a variety of community partners to assist persons who are homeless and are experiencing mental illness. They also assist local law enforcement agencies when they encounter a person with a mental illness. CMHC also works with four local elementary schools to provide outreach and consultation services. Applicant History or Capacity to Successfully Complete the Proposed Project CMHC has received a number of CDBG funding awards, including funds to acquire some of the current buildings and also funds to rehabilitate the buildings. CMHC has always shown sufficient capacity to complete the projects. Summary of Items to be Addressed 1. Has CMHC researched the availability of using other funds? 2. If partially funded, will the project continue? 3. Does CMHC have a capital reserve budget? 4. Has CMHC explored the use of asphalt instead of concrete for the parking area? 5. Federal labor provisions will apply to this project (Davis Bacon — prevailing wages)